TKC Q4 2025 Earnings Call Summary

Summary of Turkcell Q4 2025 Earnings Call

1. Key Financial Results and Metrics

Full Year 2025:
- Revenues increased by 11% year-on-year to TRY 241 billion.
- EBITDA rose 14% to TRY 104 billion, with a margin of 43.1%.
- Net income from continuing operations reached TRY 17.8 billion, up 23% year-on-year.
Q4 2025:
- Revenues grew by 7% year-on-year to TRY 63 billion.
- EBITDA increased by 12% to TRY 26 billion, resulting in a margin of 41.2%.
- Net income from continuing operations rose 11% to TRY 3.6 billion.
- Achieved 905,000 net postpaid additions, the strongest quarterly result in 6 years.

2. Strategic Updates and Business Highlights

Turkcell secured the largest spectrum in the 5G auction and expanded its fiber footprint through a partnership with BOTAS.
Launched a strategic partnership with Google Cloud to build a hyperscale cloud region in Turkey, enhancing digital infrastructure and supporting long-term growth.
Invested 15% of CapEx in strategic areas, including data centers, cloud infrastructure, and renewable energy, with a focus on sustainable technology-led growth.
The techfin segment (including Paycell) saw revenues grow by 21%, with Paycell's revenues up 40% in Q4.

3. Forward Guidance and Outlook

For 2026, Turkcell expects:
- Real revenue growth of 5% to 7%.
- EBITDA margin guidance of 40% to 42%.
- Operational CapEx intensity around 25% to support 5G rollout and digital infrastructure expansion.
- Data center and cloud revenues projected to grow by 18% to 20%.

4. Challenges and Points of Concern

Competitive pressures remain elevated, with record high mobile number portability impacting market dynamics.
Anticipated contraction in EBITDA margins due to expected increases in salary expenses and marketing costs associated with 5G.
The company is closely monitoring energy prices and inflation, which could affect operational costs.
The FX position reflects a short position of approximately USD 957 million, raising concerns about potential risks associated with currency fluctuations.

5. Notable Q&A Insights

In response to questions about the data center business, management highlighted a projected 14% CAGR in data center growth driven by AI and cloud demand, with expectations for significant revenue increases by 2032.
Clarified the rationale behind the FX position, indicating a strategy to benefit from higher local currency yields while managing risks associated with currency fluctuations.
Addressed concerns regarding the scale of investments in the Google Cloud partnership, emphasizing that the initial 50 megawatts is a starting point for future expansion and reflects a significant investment in infrastructure.

Overall, Turkcell demonstrated strong financial performance in 2025, with strategic initiatives aimed at enhancing its digital infrastructure and market position, while also acknowledging potential challenges related to competitive pressures and operational costs.

TKC — Turkcell Iletisim Hizmetleri A.S.