TKC — Turkcell Iletisim Hizmetleri A.S.

Summary of Turkcell's Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Revenue: Turkcell reported an 11% year-on-year revenue growth, reaching TRY 60 billion, primarily driven by its core telecommunications business.
• EBITDA: Increased by 11% to TRY 26 billion, resulting in a margin of 43.9%.
• Net Income: Rose by 31.8% to TRY 5.4 billion from continuing operations.
• Mobile ARPU: Increased by 12%, with residential fiber ARPU growing by 17.3% year-on-year.
• Subscriber Growth: Added 569,000 net postpaid subscribers, bringing the total to over 39 million.
• CapEx: CapEx intensity was 17.4% for the quarter, with a focus on 5G readiness.

2. Strategic Updates and Business Highlights

• 5G Spectrum Tender: Turkcell secured the maximum spectrum allocation of 160 megahertz, enabling speeds over 1,000 Mbps, with a commercial launch planned for April 2026.
• Digital Business Services: Revenue grew by 97% to TRY 4.9 billion, supported by recurring service income and hardware sales.
• Techfin Growth: The techfin segment, including Paycell, saw a 20% revenue increase, contributing 6% to consolidated revenues.
• Data Center and Cloud Services: Revenues grew by 51%, with a capacity expansion of 8.4 megawatts activated.

3. Forward Guidance and Outlook

• Turkcell upgraded its 2025 revenue growth guidance to around 10% and EBITDA margin target to 42%-43%.
• The company anticipates a competitive environment in 2026 but aims to maintain growth above inflation through targeted pricing and customer segmentation strategies.

4. Challenges and Points of Concern

• Competitive Pressures: The mobile market remains highly competitive, with a churn rate of 2.6%.
• Monetary Losses: A decline in monetary gains was noted due to lower inflation rates and the sale of the Ukraine business, which affected the balance sheet.
• FX Risks: The company holds significant FX debt and will need to manage its position carefully, especially with upcoming 5G payments in hard currency starting in January 2026.

5. Notable Q&A Insights

• CapEx and Dividends: Management indicated no significant increase in CapEx intensity for 2026, maintaining a dividend policy of distributing 50% of net income.
• Pricing Strategy: Turkcell has adjusted prices in response to inflation and competition, successfully achieving above-inflation ARPU growth.
• 5G Asset Recognition: The spectrum asset will be recognized in TL terms, with expectations for significant monetary gains starting in 2026.
• TOGG Performance: There are signs of improvement in the TOGG subsidiary, with expectations of continued performance enhancements moving forward.

Overall, Turkcell demonstrated strong operational performance in Q3 2025, with strategic initiatives positioning the company well for future growth, despite facing competitive and economic challenges.