Turkcell(US:TKC)2026-03-05 18:00Financial Data and Key Metrics Changes - Revenues increased by 11% year-on-year, surpassing TRY 241 billion, with quarterly growth of 7% [17] - EBITDA rose by 14% year-on-year to TRY 104 billion, with an EBITDA margin of 43.1% [18] - Net income from continuing operations reached TRY 17.8 billion, up 23% year-on-year [3][18] Business Line Data and Key Metrics Changes - Turkcell Turkey revenue increased by TRY 21 billion year-on-year, driven by real ARPU expansion and sustained postpaid subscriber additions [17] - Data center and cloud business revenues grew by 32% year-on-year, supported by capacity expansions [13] - Techfin revenues grew by 21%, with Paycell being a significant driver, increasing by 40% year-on-year in Q4 [14] Market Data and Key Metrics Changes - The share of postpaid subscribers increased by 4.7 percentage points year-on-year to reach 81%, enhancing revenue visibility [10] - The Turkish cloud market is growing at 19% annually in dollar terms, driven by increasing digitalization and AI adoption [11] Company Strategy and Development Direction - The company is focusing on strategic investments in data centers, cloud infrastructure, and renewables, allocating 15% of CapEx to these areas [4] - A strategic partnership with Google Cloud aims to establish a hyperscale cloud region in Turkey, enhancing the digital ecosystem [12] - The capital allocation framework emphasizes investing in business growth, delivering shareholder returns, and maintaining a strong balance sheet [5][6] Management's Comments on Operating Environment and Future Outlook - The company expects real revenue growth of 5%-7% in 2026, with an EBITDA margin between 40%-42% [16] - Management highlighted the importance of operational efficiency and strategic investments in 5G rollout and digital infrastructure [16] - The company remains committed to maintaining net leverage below 1 times while funding 5G payments and strategic investments [21] Other Important Information - The company launched a three-year share buyback program and repurchased $58 million of shares to date [6] - Renewable energy installed solar capacity increased from 8 megawatts to 62 megawatts, generating TRY 156 million in OpEx savings [15] Q&A Session Summary Question: Inquiry about data centers business EBITDA margins - Management indicated that the data center business is expected to see significant growth, with no dilutive impact on EBITDA margins anticipated [26] Question: Clarification on FX position and short position in US dollars - Management explained that the short position in US dollars is around $957 million, aimed at benefiting from higher local currency yields [34][35] Question: Size of investments in data centers and expectations for future capacity - Management clarified that the initial 50 megawatts is a substantial investment, with plans for significant scaling in the future, particularly with the Google Cloud partnership [41]