Turkcell Iletisim Hizmetleri: First Quarter 2025 Results

Building on a Strong Start

ISTANBUL–(BUSINESS WIRE)–Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) (BIST:TCELL):

• Please note that all financial data is consolidated and comprises that of Turkcell Iletisim Hizmetleri A.S. (the “Company” or “Turkcell”) and its subsidiaries and associates (together referred to as the “Group”) unless otherwise stated.
• As of Q1 2025, we have revised our revenue segmentation. The figures are presented according to this new structure. Please refer to page 4 and the Excel file available on the Turkcell IR website for a comprehensive explanation and comparison.
• We have three reporting segments:
  • «Turkcell Türkiye,» which comprises our telecom, digital services, and digital business services related businesses, retail channel operations, smart devices management, and consumer electronics sales through digital channels in Türkiye. All non-financial data presented in this press release is unconsolidated and comprises Turkcell Türkiye only figures unless otherwise stated. The terms «we,» «us,» and «our» in this press release refer only to Turkcell Türkiye, except in discussions of financial data, where such terms refer to the Group, and except where context otherwise requires.
  • “Techfin” which comprises all of our financial services businesses.
  • “Other” which mainly comprises our international, non-group call center, energy businesses, and intersegment eliminations.
• This press release provides a year-on-year comparison of our key indicators and figures in parentheses following the operational and financial results for March 31, 2025 refer to the same item as at March 31, 2024. For further details, please refer to our consolidated financial statements and notes as at and for March 31, 2025, which can be accessed via our website in the investor relations section (www.turkcell.com.tr).
• Selected financial information presented in this press release for the first quarter of 2024, and 2025 is based on IFRS figures in TRY terms unless otherwise stated.
• In the tables used in this press release, totals may not foot due to rounding differences. The same applies to the calculations in the text.
• Year-on-year percentage comparisons appearing in this press release reflect mathematical calculation.

NOTICE

This press release contains the Company’s financial information for the period ended March 31, 2025, prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). This press release contains the Company’s financial information prepared in accordance with International Accounting Standard 29, Financial Reporting in Hyperinflationary Economies (“IAS29”). Therefore, the financial statement information included in this press release for the periods presented is expressed in terms of the purchasing power of the Turkish Lira as of March 31, 2025. The Company restated all non-monetary items in order to reflect the impact of the inflation restatement reporting in terms of the measuring unit current as of March 31, 2025. Comparative financial information has also been restated using the general price index of the current period.

This release includes forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, Section 21E of the U.S. Securities Exchange Act of 1934, and the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. This includes, in particular, and without limitation, our targets for consolidated revenue growth, data center and cloud revenue growth, EBITDA margin, and operational capex over sales ratio for the full year 2025. In establishing such guidance and outlooks, the Company has used a certain number of assumptions regarding factors beyond its control, in particular in relation to macroeconomic indicators, such as expected inflation levels, that may not be realized or achieved. More generally, all statements other than statements of historical facts included in this press release, including, without limitation, certain statements regarding our operations, financial position, and business strategy, may constitute forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, among others, “will,” “expect,” “intend,” “estimate,” “believe,” “continue,” and “guidance.”

Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. In addition, certain forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Many factors could cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements that may be expressed or implied by forward-looking statements. Should one or more of these risks or uncertainties materialize or underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended, planned, or projected.

These forward-looking statements are based upon a number of assumptions and other important factors that could cause our actual results, performance, or achievements to differ materially from our future results, performance, or achievements expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to us are expressly qualified in their entirety by reference to these cautionary statements. For a discussion of certain factors that may affect the outcome of such forward- looking statements, see our Annual Report on Form 20-F for 2024 filed with the U.S. Securities and Exchange Commission, and in particular, the risk factor section therein. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release. All forward-looking statements in this press release are based on information currently available to the Company, and we undertake no duty to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

The Company makes no representation as to the accuracy or completeness of the information contained in this press release, which remains subject to verification, completion, and change. No responsibility or liability is or will be accepted by the Company or any of its subsidiaries, board members, officers, employees, or agents as to or in relation to the accuracy or completeness of the information contained in this press release or any other written or oral information made available to any interested party or its advisers.

SEGMENT INFORMATION¹

The Group had divided its main operating segments into three groups: Turkcell Türkiye, Turkcell International, and Techfin, within the framework of a strategy to provide integrated communication and technology services, ensuring economic integrity. Management has re-evaluated the operating segments and decided, as of the first quarter of 2025, to separate the existing operating segments into two groups: Turkcell Türkiye and Techfin. After Ukraine sales, the companies in the Turkcell International segment have been classified under the Other.

Turkcell Satış, where consumer electronics sold through digital channels, smart device management operations, and retail channel operations are conducted, was reported under the Other. Since these activities are regularly reviewed by central management through integrated channel management, along with integrated corporate business solutions, city hospitals, hardware, and corporate terminal operations, all operations of Turkcell Satış have been reclassified under the reportable segment of Turkcell Türkiye as of the first quarter of 2025.

There has been no change in the Techfin segment.

The classifications have no impact on the operating profit, net profit, or the cash flow statement.

Starting from Q125, our reporting segments will be as follows:

Turkcell Türkiye reportable segment includes mobile, fixed telecom, digital services and digital business services operations of Turkcell, Turkcell Superonline Iletisim Hizmetleri A.S. (“Turkcell Superonline”), Turkcell Satış A.S’s (“Turkcell Satış”), Turkcell Dijital Is Servisleri A.S. (“Turkcell Dijital”), group call center operations of Global Bilgi Pazarlama Danismanlik ve Cagri Servisi Hizmetleri A.S. (“Turkcell Global Bilgi”), Turktell Bilisim Servisleri A.S. (“Turktell”), Atmosware Teknoloji Egitim ve Danismanlik A.S (“Atmosware Teknoloji”), Turkcell Teknoloji Arastirma ve Gelistirme A.S. (“Turkcell Teknoloji”), Ultia Teknoloji Yazilim ve Uygulama Gelistirme Ticaret A.S. (“Ultia”), Kule Hizmet ve Isletmecilik A.S. (“Global Tower”), Rehberlik Hizmetleri Servisi A.S. (“Rehberlik”), Turkcell Gayrimenkul Hizmetleri A.S. (“Turkcell Gayrimenkul”), Lifecell Dijital Servisler ve Cozumler A.S. (“Lifecell Dijital Servisler”), Lifecell Bulut Cozumleri A.S. (“Lifecell Bulut”), Lifecell TV Yayin ve Icerik Hizmetleri A.S. (“Lifecell TV”), Lifecell Müzik Yayin ve Iletim A.S. (“Lifecell Müzik”), BiP Iletisim Teknolojileri ve Dijital Servisler A.S. (“BiP A.S.”), TDC Veri Hizmetleri A.Ş (“TDC”) and Artel Bilişim Servisleri A.Ş (“Artel”).

Techfin reportable segment includes all financial services operations of Turkcell Finansman A.Ş (“Turkcell Finansman”), Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş. (“Turkcell Ödeme”),Paycell LLC(“Paycell LLC”), Paycell Europe GmbH (“Paycell Europe”), Turkcell Sigorta Aracılık Hizmetleri A.Ş. (“Turkcell Sigorta”), Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş (“Sofra”), Turkcell Dijital Teknolojileri Limited (“Turkcell Dijital Teknoloji”), and Turkcell Dijital Sigorta A.Ş. (“Turkcell Dijital Sigorta”). The operations of these legal entities aggregated into one reportable segment as the nature of services are similar and most of them share similar economic characteristics.

Other reportable segment mainly comprises of non-group call center operations of CJSC Belarusian Telecommunications Network (“BeST”), Kıbrıs Mobile Telekomunikasyon Limited Sirketi (“Kıbrıs Telekom”), East Asian Consortium B.V. (“Eastasia”), Lifecell Ventures B.V (“Lifecell Ventures”), Lifetech LLC (“Lifetech”), Beltower LLC (“Beltower”), Lifecell Digital Limited (“Lifecell Digital”), Yaani Digital BV (“Yaani”), BiP Digital Communication Technologies B.V (“BiP B.V.”), Turkcell Global Bilgi, Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş. (“Turkcell Enerji”), Boyut Grup Enerji Elektrik Üretim ve İnşaat Sanayi ve Ticaret A.Ş. (“Boyut Enerji”) and Turkcell Yeni Teknolojiler Girişim Sermayesi Yatırım Fonu (“Turkcell GSYF”).

(1) Please refer to page 19 for the details of new segment breakdown.

FINANCIAL HIGHLIGHTS

TRY million	Q124	Q125	y/y%
Revenue	42,567	47,963	12.7%
EBITDA1	17,614	20,959	19.0%
EBITDA Margin (%)	41.4%	43.7%	2.3pp
EBIT2	4,865	8,214	68.8%
EBIT Margin (%)	11.4%	17.1%	5.7pp
Net Income	3,638	3,082	(15.3%)

FIRST QUARTER HIGHLIGHTS

• The Board of Directors has resolved to convene the Annual General Assembly Meeting for the 2024 fiscal year on May 15, 2025. For the agenda and further details, please click here.
• Uninterrupted dividend distribution since 2016 and another proposed this year, the Group strengthen our track record of delivering consistent value to shareholders while maintaining robust financial health. The Board of Directors has proposed distributing a gross dividend of TRY 8,000,000,000, subject to shareholder approval at the 2024 Ordinary General Assembly. This corresponds to a gross dividend of TRY 3.6363636 (net TRY 3.0909091) per ordinary share with a nominal value of TRY 1. If approved, the dividend will be paid in cash in two equal installments on June 20, 2025 and December 26, 2025.
• Fiber infrastructure continues to be a core strategic priority for the Group. In a significant development, the company has successfully renewed its agreement with BOTAŞ through a tender amounting to $25.5 million annually. The extension grants rights for an additional 15 years, further strengthening the Group’s position in the fixed market.
• Robust financial results driven by strong ARPU growth, supported by Techfin business.
  • Group revenues grew 12.7% on a yearly basis, reaching TRY48.0 billion thanks to strong ARPU growth and effective upselling initiatives. The techfin segment recorded revenue growth of 31.5%, maintaining its strong momentum. The revenue of Data Center & Cloud business, which is part of guidance beginning with this year, was also up 47.5% on a yearly basis.
  • EBITDA¹ increased 19.0%, leading to an EBITDA margin of 43.7%, marking a yearly improvement of 2.3pp; EBIT² was up 68.8%, resulting in an EBIT margin of 17.1%.
  • Despite macroeconomic fluctuations net income was recorded as TRY3.1 billion.
  • Net leverage³ level at 0.21x; net short FX position of US$76 million in line with our neutral FX definition, which is between plus and minus US$200 million
• Operational performance with a focus on profitability
  • 153 thousand quarterly mobile postpaid net additions, postpaid subscriber base share at 76%
  • 30 thousand fiber net additions
  • Surpassing 6.0 million total homepasses; 43 thousand new fiber homepasses in this quarter
  • Solid ARPU performance; Mobile ARPU⁴ growth of 15.9%, residential fiber ARPU growth of 17.7%

(1) EBITDA is a non-GAAP financial measure. See page 15 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income.

(2) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses.

(3) Our net debt calculation to include «financial assets at fair value through other comprehensive income” reported under current and non-current assets, and “financial assets at amortized cost”. Required reserves held in CBRT balances are not included in net debt calculation, and this has been reflected in previous quarters’ figures

(4) Excluding M2M

COMMENTS BY CEO, ALİ TAHA KOÇ, PhD

A Promising Start to 2025

As Türkiye’s leading telecommunications and technology company, Turkcell enters another year with a firm commitment to shaping the future-prioritizing sustainable growth and delivering lasting value for all stakeholders. Despite ongoing macroeconomic volatility and intense competition in the sector, we continued to deliver strong financial results, driven by robust ARPU growth from our inflationary pricing strategy and strong growth momentum in our Techfin business. This strong performance reflects the resilience of our diversified business model and our ability to execute our strategy, and further strengthens our ambitions for growth and long-term value creation.

In the first quarter of 2025, our consolidated revenues rose to TRY 48.0 billion, marking a 12.7% year-on-year increase, driven by ARPU growth in both mobile and fixed segments of our telecommunications business, an expanding subscriber base driven by postpaid subscriber additions, and strong revenue growth in our strategic focus areas. Our Techfin segment revenues rose 31.5%, while our data center and cloud business grew by 47.5% this quarter. Consolidated EBITDA¹ increased by 19.0% to reach TRY 21.0 billion, while the EBITDA margin rose by 2.3 points to 43.7%. We delivered a net profit of TRY 3.1 billion. The remarkable results we achieved in the first quarter of the year have reinforced our confidence in reaching our 2025 targets.

Strong ARPU growth in both mobile and fixed segments

The mobile market performed in line with our expectations during the first quarter of the year. The volume in the Mobile Number Portability (MNP) market was lower compared to the previous quarter, but dynamic than the same period last year. Aligned with our strategy for sustainable value creation, we maintained our focus on acquiring postpaid subscribers in the mobile segment. We had a net addition of 153 thousand postpaid mobile subscribers, while the share of postpaid subscribers in the total mobile subscriber base rose by 4 percentage points year-on-year to reach 76%. Driven by our upsell efforts, the net addition of 1.6 million postpaid subscribers over the past 12 months, and our inflationary pricing strategy, mobile ARPU² recorded solid year-on-year growth of 15.9%.

In the fixed segment³, we strengthened our fiber subscriber base by a net addition of 30 thousand new customers through our high-quality, end-to-end fiber service. The number of subscribers using our services via other internet service providers’ (ISPs) fiber infrastructure surpassed 19 thousand. Through our investments in fixed broadband infrastructure, we enabled fiber access for 43 thousand new homepasses, increasing our total homepass to over 6.0 million. Fiber ARPU continued its strong growth and rose by 17.7%, supported by a higher share of subscribers using speeds of 100 Mbps and above, an increase in the proportion of customers with 12-month contracts, price adjustments, and the contribution of our IPTV service.

As part of our commitment to strengthening the fixed market presence, we achieved a key milestone by winning a tender amounting to USD 25.5 million annually, to renew our BOTAŞ agreement. This 15-year extension enhances our fiber infrastructure capabilities and supports the sustainable expansion of our services.

To enhance user experience, we stay ahead of the latest technological advancements, ensuring innovations reach our customers swiftly and seamlessly. In February, we became Türkiye’s first operator to introduce Wi-Fi 7 technology to our fiber customers. With the advanced technology offered by Wi-Fi 7, our subscribers can access download and upload speeds of up to 1,000 Mbps.

Momentum in the Techfin segment remains strong

Our Techfin business, which includes the Paycell and Financell, continues to contribute to our consolidated financial performance through strong revenue growth. Paycell, which offers secure and fast payment solutions, increased its revenues by 47.8% year-on-year, driven particularly by the contribution of mobile payment and POS solutions. Despite weakness in consumer appetite due to the macroeconomic environment, Financell’s revenues increased by 8.2% year-on-year, supported by effective campaign management and the positive contribution of personalized pricing strategies. Net Interest Margin (NIM) rose by 3.4 percentage points year-on-year to 4.7%, supported by decrease in funding costs.

We are committed to maintaining our leading position in the Türkiye Data Center market, gained through our first mover advantage, driven by our strong belief in the long-term potential of the sector. In this respect, for the first time, we announced a revenue growth guidance for our Data Center and Cloud business in 2025. The 47.5% growth achieved in the first quarter demonstrates a positive outlook for reaching our year-end guidance.

Sustainability is at the heart of our business

With our qualified human capital, strong financial structure, and commitment to operational excellence, we remain firmly focused on creating long-term and sustainable value. The inaugural sustainable bond issuance we carried out in January was a significant indicator of this commitment. Driven by this vision, we continue to advance our renewable energy investments across our operations. We increased our active land-based solar energy capacity from 8.2 MW by the end of 2024 to 28.2 MW this quarter. We are gradually commissioning our new plants upon the completion of the permitting process, thereby increasing the share of self-generated renewable energy in our total energy consumption. We consider sustainability not only as an environmental concern, but also as a social and corporate responsibility. With that in mind, we continue to implement numerous projects such as “Digital Spring,” “Whiz Kids” and “Recycle into Education” that aim to benefit our human capital, the society we live in, nature and future generations.

In March, we once again had the honor of representing Türkiye at the Mobile World Congress, organized by the GSMA, a board on which I am proud to serve. Throughout the congress, we showcased Turkcell’s pioneering initiatives to the world and signed over 20 strategic alliance agreements with global technology brands. All these steps reflect our vision of positioning Türkiye at the heart of the digital transformation.

I would like to thank all my colleagues who walk this journey with us, our Board of Directors for their trust and support, and our customers and business partners who stand with us every step of the way on our journey to success.

(1) EBITDA is a non-GAAP financial measure. See page 15 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income

(2) Excluding M2M

(3) As of the fourth quarter of 2024, our fixed broadband subscriber reporting has been revised. Turkcell Fiber refers to customers served entirely through our own fiber infrastructure, while Turkcell Resell includes DSL, Cable, and Fiber sales provided through infrastructures of other ISPs. Accordingly, historical subscriber figures have been revised to ensure comparability.

FINANCIAL AND OPERATIONAL REVIEW OF FULL YEAR

Financial Review of Turkcell Group

Profit & Loss Statement (million TRY)	Quarters
	Q124	Q125	y/y%
Revenue	42,566.8	47,962.6	12.7%
Cost of revenue1	(20,644.0)	(21,594.2)	4.6%
Cost of revenue1/Revenue	(48.5%)	(45.0%)	3.5pp
Gross Margin1	51.5%	55.0%	3.5pp
Administrative expenses	(1,603.5)	(2,000.3)	24.7%
Administrative expenses/Revenue	(3.8%)	(4.2%)	(0.4pp)
Selling and marketing expenses	(2,427.7)	(3,214.9)	32.4%
Selling and marketing expenses/Revenue	(5.7%)	(6.7%)	(1.0pp)
Net impairment losses on financial and contract assets	(277.5)	(194.1)	(30.1%)
EBITDA2	17,614.2	20,959.1	19.0%
EBITDA Margin	41.4%	43.7%	2.3pp
Depreciation and amortization	(12,749.6)	(12,745.6)	(0.0%)
EBIT3	4,864.6	8,213.5	68.8%
EBIT Margin	11.4%	17.1%	5.7pp
Net finance income / (costs)	222.1	(358.1)	(261.2%)
Finance income	7,564.3	3,956.2	(47.7%)
Finance costs	(10,998.7)	(5,273.1)	(52.1%)
Monetary gain / (loss)	3,656.5	958.8	(73.8%)
Other income / (expenses)	(301.6)	(449.7)	49.1%
Non-controlling interests	7.5	–	(100.0%)
Share of profit of equity accounted investees	(77.2)	(864.0)	1,019.2%
Income tax expense	(1,823.6)	(3,459.7)	89.7%
Profit /(loss) from discontinued operations	746.6	–	(100.0%)
Net Income	3,638.4	3,082.1	(15.3%)

(1) Excluding depreciation and amortization expenses.

(2) EBITDA is a non-GAAP financial measure. See page 15 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income.

(3) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses.

Revenue of the Group rose by 12.7% year-on-year in the first quarter of 2025, primarily driven by strong net additions of postpaid subscribers, price adjustments aligned with our inflationary pricing policy, and effective upsell efforts. The Techfin segment maintained its growth momentum with a year-on-year increase of 31.5%, making a positive contribution to the Group’s topline.

In the first quarter, Turkcell Türkiye⁴ revenues, representing 91% of Group revenues, increased by 11.6% to TRY43,523 million (TRY38,984 million).

– Turkcell Türkiye’s strong performance w

Contacts

For further information, please contact Turkcell

Investor Relations
Tel: + 90 212 313 1888
[email protected]

Corporate Communications:
Tel: + 90 212 313 2321
[email protected]

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