Turkcell Iletisim Hizmetleri: Second Quarter 2026 Results

Diversified and Resilient Business Model Delivers Steady GrowthISTANBUL--(BUSINESS WIRE)--Turkcell (NYSE:TKC) (BIST:TCELL): Please note that all financial data is consolidated and comprises that of Turkcell İletişim Hizmetleri A.S. (the “Company” or “Turkcell”) and its subsidiaries and associates (together referred to as the “Group”) unless otherwise stated. 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 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 primarily comprises our international, energy businesses, non-group call center, and intersegment eliminations. This press release provides a year-on-year comparison of our key indicators. Figures in parentheses following the operational and financial results for June 30, 2026, refer to the same item as of June 30, 2025. For further details, please refer to our consolidated financial statements and notes as of and for June 30, 2026, accessible via our website in the investor relations section (http://www.turkcell.com.tr). Selected financial information presented in this press release for the second quarter of 2025 and 2026 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 in this press release reflect mathematical calculations. NOTICE This press release contains the Company’s financial information for the period ended June 30, 2026, 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 June 30, 2026. 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 June 30, 2026. 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 2026. In establishing such guidance and outlooks, the Company has used a certain number of assumptions regarding factors beyond its control, particularly 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 can generally 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 2025 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. FINANCIAL HIGHLIGHTS Million TRY Q225 Q226 y/y% H125 H126 y/y% Revenue 70,047 71,775 2.5% 137,216 144,948 5.6% EBITDA1 30,498 30,013 (1.6%) 59,851 60,298 0.7% EBITDA Margin (%) 43.5% 41.8% (1.7pp) 43.6% 41.6% (2.0pp) EBIT2 11,649 9,451 (18.9%) 23,152 20,623 (10.9%) EBIT Margin (%) 16.6% 13.2% (3.4pp) 16.9% 14.2% (2.7pp) Net Income 5,549 5,235 (5.7%) 9,866 10,195 3.3% HIGHLIGHTS Steady growth performance in Q226, supported by a diversified business model; Consolidated revenues increased by 2.5% YoY to TRY 71.8 billion. Turkcell Türkiye remained the largest contributor, growing by 1.6% year-on-year, on the strength of corporate revenues. Techfin and Other segments supported the Group’s top-line growth, expanding 7.0% and 18.4% respectively. EBITDA1 reached TRY 30.0 billion, leading to an EBITDA margin of 41.8%. EBIT2 reflected higher depreciation and amortization associated with our 5G investments, resulting in an EBIT margin of 13.2%. Our strong operating performance continued to support the bottom line. Despite the impact of higher depreciation and finance costs, monetary gains and a favorable tax profile provided meaningful offsets, resulting in a solid net income of TRY 5.2 billion for the quarter. The balance sheet remained disciplined, with net leverage3 of 0.36x and the net FX position managed within our medium-term target range of minus USD 1.5 billion to plus USD 1.5 billion. 5G network capacity driving the strongest Superbox (Fixed Wireless Access) growth since Q220; Superbox delivered 64 thousand net additions in Q226; its strongest quarterly performance since Q220. The mobile subscriber base exceeded 40 million for the first time in our history, with 243 thousand net additions in Q226. 284 thousand mobile postpaid net additions; postpaid subscriber base share at 81% 44 thousand total fiber net additions including resell operations Accelerated fiber investment with 194 thousand new fiber homepasses, bringing the total to 6.7 million Pricing actions implemented in the first half of 2026 are expected to support ARPU growth, particularly from the end of the fourth quarter onward. (1) EBITDA is a non-GAAP financial measure. See page 14 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 includes financial assets at fair value, whether through other comprehensive income or through profit and loss, reported under current and non-current assets, as well as financial assets at amortized cost. Required reserves held in CBRT balances are not included in total cash and net debt calculation. COMMENTS BY CEO, ALİ TAHA KOÇ, PhD Building on the strong momentum generated by the 5G era launched with great enthusiasm in the first quarter, we delivered robust results in the second quarter in line with our strategic targets. During this period, when competition became more rational and value-oriented, we sustained our strong subscriber acquisition performance while taking steps to further strengthen our ARPU going forward. The improvement in our Net Promoter Scores (NPS) following the 5G launch has been a key indicator of our subscribers' trust in our service quality and their satisfaction. These results once again demonstrated that our strategy is strongly reflected in both our operational performance and customer experience. In the first half of the year, geopolitical developments and fluctuations in energy costs drove the inflation outlook above expectations set at the beginning of the year. Nevertheless, we maintained our real growth performance thanks to our diversified business model and disciplined commercial approach. In the second quarter, our consolidated revenues increased by 2.5% year-on-year to TRY 71.8 billion. Consolidated EBITDA¹ stood at TRY 30.0 billion, while our strong EBITDA margin of 41.8% remained in line with our year-end guidance, reflecting our solid operational performance. Our net income stood at TRY 5.2 billion. Considering the change in the macroeconomic outlook, we are revising our year-end inflation assumption to 28%. Despite this update, we maintain our full-year guidance of 5-7% real revenue growth, an EBITDA margin of 40-42%, and operational capital expenditures2 at approximately 25% of revenues. Turning Our Network Strength into Value Mobile Number Portability (MNP) market volume, a key indicator of competitive dynamics in the sector, fell below 2.8 million in the second quarter. During this period, when competition was more rational and value-oriented compared to 2025, we sustained our growth through compelling value propositions and a disciplined commercial approach. With 243 thousand net mobile subscriber additions in the second quarter, our total mobile subscriber base surpassed 40 million for the first time in our history, further reinforcing our leadership in the mobile market. Our postpaid subscriber base, a key pillar of our sustainable growth, expanded by 284 thousand net additions. This expansion in our subscriber base was also significantly supported by the improvement in our churn rate, driven by favorable market dynamics and effective subscriber retention actions. Our churn rate declined by 0.6 percentage points year-on-year to 1.6% in the second quarter. In the second quarter, we demonstrated through a concrete example that 5G, for which we meticulously prepared from network readiness and the tender process to promotional activities and the commercial launch, is not merely a next-generation technology offering greater speed and capacity, but a critical infrastructure enabling digital transformation across every aspect of life. Thanks to the high speed and ultra-low latency of Turkcell 5G, doctors in İstanbul successfully performed remote surgery on a patient approximately 1,500 kilometers away in Muş. This historic operation marked a significant milestone for real-world 5G applications, while powerfully demonstrating how our technology investments translate into social impact, further underscoring Turkcell’s pioneering position in 5G. With the rollout of 5G, we achieved significant improvements in customer experience. Our Net Promoter Scores (NPS) increased across all measured areas, including network coverage, internet speed, connection stability and 5G awareness. These results have been one of the strongest indicators of the value created by our network investments for our customers. We also translated the advantage of our strong network infrastructure into value-generating services for our customers in Fixed Wireless Access (FWA). Superbox, which we offer in regions not yet covered by our fiber infrastructure, has started to deliver a much more powerful user experience with 5G technology. With our Superbox 5G modems featuring Wi-Fi 7 technology, we continue to differentiate ourselves with our superior speed and service quality in FWA, just as we do in mobile. As a result, we recorded 64 thousand net Superbox additions in the second quarter, marking our strongest quarterly performance since the second quarter of 2020. Reflecting our customers’ trust and growing demand for Turkcell’s quality, total net Superbox additions over the past four quarters exceeded 163 thousand. On the other hand, we continued to expand our footprint in fiber infrastructure, one of the most critical components of our country’s digital transformation, at an accelerating pace. In the second quarter, we extended our end-to-end fiber services, underpinned by Turkcell’s superior quality, with 194 thousand new homepass. Within our fixed subscriber base, which we manage with a strong focus on profitability, the share of Turkcell fiber subscribers increased by 3.4 percentage points year-on-year to 80%. Therefore, we sustained our growth with a continued focus on our own infrastructure, where we generate greater value. Additionally, our customers' demand for higher speeds continues to increase. The share of residential fiber subscribers opting for speeds of 1000 Mbps or above increased significantly from 8% in the same period last year to 29% in the second quarter of 2026. This strong demand demonstrates that our investments are resonating with our customers, and the demand for the unique speed and service quality offered by Turkcell continues to grow. During the remainder of the year, we will continue to invest in our fiber infrastructure, bringing Turkcell’s high-quality fiber services to more homes and making ultra-high speeds accessible to a broader customer base. Our Diversified Revenue Structure Continues to Support Growth The first half of 2026 was a period in which we saw the tangible results of our revenue diversification strategy, which we have consistently pursued over many years. Alongside our core mobile business, our investments in digital services, data center and cloud, Techfin, and digital content are making an increasingly strong contribution to the Group’s growth. The Techfin segment, accounting for 6% of consolidated revenues, grew by 7.0% in the second quarter. Paycell revenues increased by 21.9% year-on-year, driven by its strong performance across all business lines. The POS segment became the main driver of this growth, thanks to the flexible digital integration capabilities it offers to customers and high customer satisfaction. Digital Business Services (DBS) maintained its strong growth momentum, increasing its revenues by 33.1% year-on-year in the second quarter. While the highest contribution to this performance came from managed services and hardware revenues achieved through large-scale projects, our Data Center and Cloud revenues grew by 9.8% in the same period. With the commissioning of the fifth module of our Ankara data center, we raised our active capacity to 54 MW. In addition, we reached another important milestone in our long-term investments in Türkiye’s digital infrastructure by commencing the construction of three next-generation data centers as part of our collaboration with Google Cloud. On the digital content side, we continued to strengthen the TV+ ecosystem. Through our strategic collaboration with Warner Bros. Discovery, launched in November last year, we brought HBO Max content to TV+ subscribers, while globally acclaimed productions and major sporting events further enhanced the platform’s value proposition. As a result, we recorded 123 thousand net TV+ subscriber additions in the second quarter, taking our subscriber base above 2.7 million. Our enriched content portfolio, supporting our “TV+ is All You Need” approach, contributed to strong growth in user engagement and viewing times. Strong Representation on Global Platforms With the responsibility of representing Türkiye’s technology and telecommunications vision on a global scale, I am immensely proud to have assumed the Chairmanship of the GSM Association's (GSMA) Technology Group, which brings together more than 1,000 operators and companies worldwide. This role is a significant international indicator not only of Turkcell’s 32-year technological expertise but also of our country’s competence in digital transformation. In the coming period, we will continue to bring Turkcell’s experience and expertise to initiatives shaping the future of the global mobile ecosystem. Looking ahead, we will continue to execute our strategy with the same discipline and determination. Building on our strong financial position and diversified business model, we will continue to invest in Türkiye’s digital future, make next-generation technologies accessible to more people, and create sustainable value for our customers. I would like to thank all my colleagues for their contributions to our success, and our customers, shareholders, and Board of Directors for their continued trust. (1) EBITDA is a non-GAAP financial measure. See page 14 for the explanation of how we calculate adjusted EBITDA and its reconciliation to net income. (2) Excluding license fees FINANCIAL AND OPERATIONAL REVIEW Financial Review of Turkcell Group Profit & Loss Statement (million TRY) Quarter Half Year Q225 Q226 y/y% H125 H126 y/y% Revenue 70,046.7 71,775.1 2.5% 137,215.8 144,948.0 5.6% Cost of revenue1 (32,117.3) (33,008.1) 2.8% (62,358.8) (67,462.1) 8.2% Cost of revenue1/Revenue (45.9%) (46.0%) (0.1pp) (45.4%) (46.5%) (1.1pp) Gross Margin1 54.1% 54.0% (0.1pp) 54.6% 53.5% (1.1pp) Administrative expenses (2,609.7) (2,917.3) 11.8% (5,411.0) (6,105.5) 12.8% Administrative expenses/Revenue (3.7%) (4.1%) (0.4pp) (3.9%) (4.2%) (0.3pp) Selling and marketing expenses (4,414.4) (5,458.1) 23.6% (8,916.7) (10,319.6) 15.7% Selling and marketing expenses/Revenue (6.3%) (7.6%) (1.3pp) (6.5%) (7.1%) (0.6pp) Net impairment losses on financial and contract assets (406.9) (378.7) (6.9%) (678.7) (763.1) 12.4% EBITDA2 30,498.4 30,012.8 (1.6%) 59,850.5 60,297.6 0.7% EBITDA Margin 43.5% 41.8% (1.7pp) 43.6% 41.6% (2.0pp) Depreciation and amortization (18,849.1) (20,561.4) 9.1% (36,698.6) (39,674.7) 8.1% EBIT3 11,649.3 9,451.4 (18.9%) 23,151.9 20,622.9 (10.9%) EBIT Margin 16.6% 13.2% (3.4pp) 16.9% 14.2% (2.7pp) Net finance income / (costs) (1,771.9) (2,114.2) 19.3% (2,273.3) (435.0) (80.9%) Finance income 3,820.0 4,700.0 23.0% 9,360.4 8,692.1 (7.1%) Finance costs (6,683.2) (11,678.7) 74.7% (14,067.9) (19,839.5) 41.0% Monetary gain 1,091.4 4,864.5 345.7% 2,434.2 10,712.4 340.1% Net other income / (expenses) (257.0) (544.0) 111.7% (886.7) (1,001.3) 12.9% Share of loss of equity accounted investees (1,590.8) (408.4) (74.3%) (2,800.8) (81.5) (97.1%) Profit Before Income Tax 8,029.7 6,384.8 (20.5%) 17,191.1 19,105.1 11.1% Income tax expense (2,232.8) (1,149.6) (48.5%) (7,077.9) (8,910.4) 25.9% Profit from continuing operations 5,796.8 5,235.2 (9.7%) 10,113.2 10,194.7 0.8% Loss from discontinued operations (247.6) - (100.0%) (247.6) - (100.0%) Net Income 5,549.3 5,235.2 (5.7%) 9,865.6 10,194.7 3.3% (1) Excluding depreciation and amortization expenses (2) EBITDA is a non-GAAP financial measure. See page 14 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 2.5% year-on-year, reaching TRY 71,775 million (TRY 70,047 million) in Q226. Consolidated revenue growth was driven primarily by 1.6% growth of Turkcell Türkiye’s revenues, which account for 90% of the Group top-line. - Corporate revenues increased by 15.5%, supported by the continued strong performance of Digital Business Services (DBS), where revenues grew by 33.1%. Growth was driven by robust hardware sales alongside expanding recurring service revenues. Data Center & Cloud revenues also maintained strong momentum, increasing by 9.8% year-on-year. - Consumer segment revenues were broadly stable year-on-year. This reflected the lagged impact of pricing actions due to the contractual nature of our subscriber base, together with the more challenging competitive environment throughout 2025. As market dynamics became increasingly rational in 2026, we continued to implement inflation-aligned pricing actions during the first half of the year. We expect these actions to support ARPU growth progressively, with a more meaningful contribution becoming visible from the end of the fourth quarter onward. - Wholesale revenue decreased by 4.1% to TRY 3,030 million (TRY 3,161 million). Techfin segment revenues, which accounted for 6% of the Group’s revenues, grew by 7.0% to TRY 4,123 million (TRY 3,853 million) in the second quarter. This performance was driven primarily by Paycell, which delivered a strong 21.9% increase in revenues. For details, please see the Techfin section. The Other segment revenues, comprising 4% of the Group’s revenues, which mostly includes Turkcell International, the energy business, and non-group call center revenues, rose by 18.4% to TRY 2,950 million (TRY 2,491 million) in Q226. Non-group call center revenues were the main driver of this strong performance. Cost of revenue (excluding depreciation and amortization) remained broadly stable year-on-year at 46.0% (45.9%) as a percentage of revenues for the second quarter of 2026. The year-on-year movement primarily reflected higher personnel expenses (0.8pp), managed service expenses (0.7pp), cost of goods sold (0.4pp), and mobile finance expenses (0.3pp), largely offset by lower energy expenses (0.8pp), funding costs (0.7pp), treasury share (0.4pp), and other expenses (0.2pp) as a percentage of revenues. The increases in cost of goods sold, managed service expenses and mobile finance expenses were primarily driven by strong growth in our Digital Business Services and Techfin businesses, in line with the revenue expansion and business mix of these segments. Contacts For further information, please contact Turkcell Investor RelationsTel: + 90 212 313 1888investor.relations@turkcell.com.tr Corporate Communications:Tel: + 90 212 313 2321Turkcell-Kurumsal-Iletisim@turkcell.com.tr Read full story here

Turkcell Iletisim Hizmetleri: Second Quarter 2026 Results

Autres actualités de l'entreprise