Turkcell Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: Increased by 9% year-on-year to TRY 68 billion.

EBITDA: Rose to TRY 28 billion, with a margin of 41.4%.

Net Income: Grew by 15% to TRY 4.6 billion.

Subscriber Growth: Achieved 661,000 postpaid net additions, the strongest in 14 quarters.

ARPU: Remained flat year-on-year, reflecting competitive pricing pressures and inflation impacts.

CapEx: Ratio stood at 21.5%, with 85% allocated to connectivity businesses, mainly for 5G rollout.

2Strategic Updates and Business Highlights

5G Launch: Successfully launched nationwide 5G on March 31, securing 40% of the spectrum and enhancing network capacity.

Digital Business Services: Revenues surged by 64% year-on-year, driven by corporate digitization and cloud services.

Fiber Expansion: Added 138,000 new home passes, reaching 6.5 million total in 30 cities, with a take-up rate of 41.8%.

Partnerships: Collaborated with Samsung for smartphone discounts and established partnerships with HBO Max and ASFAT in defense.

3Forward Guidance and Outlook

Turkcell aims to maintain ARPU growth aligned with inflation trends, despite competitive pressures.

The company remains cautious about revising revenue growth guidance, citing the need to monitor economic conditions and external factors such as geopolitical conflicts.

4Bad News, Challenges, or Points of Concern

ARPU Pressure: Real-term contraction in ARPU due to competitive pricing and inflation, with potential lag effects from previous pricing strategies.

Operating Costs: Rising fuel and energy costs could impact future operating expenses, although the extent is uncertain.

Regulatory Environment: Ongoing limitations on installment plans for consumer financing could hinder growth in the Financell segment.

5Notable Q&A Insights

Consumer Revenue Growth: Slower growth in consumer revenue (3%) compared to overall revenue, attributed to strong performance in Digital Business Services and Paycell.

Pricing Strategy: Dynamic pricing adjustments were made, including a 26% increase in January and 16% in April, to restore pricing to expected levels.

TOGG Performance: Positive contribution from TOGG with a net income of TRY 306 million, driven by increased vehicle sales and stable Euro-TRY parity.

Tax Rate: An increase in the effective tax rate due to the termination of inflation accounting, impacting deferred tax calculations. Overall, Turkcell reported a strong quarter with significant strategic advancements, particularly in 5G and digital services, while facing challenges related to ARPU and operating costs. The management remains optimistic about future growth but cautious in its outlook due to external economic factors.