TKC Q4 2025 Earnings Call Summary

Summary of Turkcell's Q4 2025 Earnings Call

1. Key Financial Results and Metrics

Revenue: Turkcell reported a total revenue of TRY 241 billion for 2025, reflecting an 11% year-on-year growth. Q4 revenue was TRY 63 billion, up 7% year-on-year.
EBITDA: The company achieved an EBITDA of TRY 104 billion for the year, a 14% increase, with a margin of 43.1%. Q4 EBITDA was TRY 26 billion, representing a 12% increase and a margin of 41.2%.
Net Income: Net income from continuing operations rose by 23% year-on-year to TRY 17.8 billion. Q4 net income was TRY 3.6 billion, an 11% increase.
CapEx: Capital expenditures were managed at 22.6% of revenue, with a focus on strategic areas like 5G and digital infrastructure.

2. Strategic Updates and Business Highlights

5G Auction: Turkcell secured the largest spectrum in the 5G auction, enhancing its network capabilities.
Partnership with Google Cloud: A strategic partnership was established to build a hyperscale cloud region in Turkey, expected to drive significant growth in the digital infrastructure sector.
Data Center Growth: The data center and cloud business saw a 32% revenue increase, with plans to double active data center capacity by 2032.
Techfin Performance: The techfin segment, particularly Paycell, grew by 21% year-on-year, contributing significantly to revenue diversification.
Renewable Energy: Turkcell increased its solar capacity to 62 megawatts, generating TRY 156 million in operational savings.

3. Forward Guidance and Outlook

For 2026, Turkcell expects real revenue growth of 5% to 7% and an EBITDA margin between 40% to 42%.
The company anticipates data center and cloud revenue growth of 18% to 20%, normalizing after significant expansions in 2025.
Operational CapEx intensity is projected to remain around 25%, consistent with ongoing investments in 5G and digital infrastructure.

4. Bad News, Challenges, or Points of Concern

Margin Contraction: The guidance for EBITDA margin in 2026 indicates a potential contraction due to increased marketing expenses for 5G and higher salary costs.
Competitive Pressures: The competitive landscape remains challenging, with elevated mobile number portability and market dynamics impacting subscriber retention.
FX Position Risks: Turkcell has a short position in USD, which may expose it to currency fluctuations. The management is closely monitoring market conditions and adjusting strategies accordingly.

5. Notable Q&A Insights

Data Center Margins: Management indicated that the data center business is expected to see significant growth, with no dilutive impact on EBITDA margins anticipated from this segment.
FX Strategy: The company has opted for a short position in USD to benefit from higher local currency yields, reflecting a cautious approach to foreign exchange risk amid market volatility.
Investment Size in Data Centers: Questions arose regarding the scale of investments in data centers, with management clarifying that the initial 50 megawatts is a starting point, with expectations for substantial future growth as cloud adoption increases.

Overall, Turkcell demonstrated strong financial performance in 2025, supported by strategic investments and partnerships, while navigating competitive pressures and potential margin challenges in the coming year.

TKC — Turkcell Iletisim Hizmetleri A.S.