Turkcell Iletisim Hizmetleri A.S.: Third Quarter 2025 Results

Outstanding Results

Upward Guidance Revision

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.

• Our revenue segmentation was revised as of Q1 2025. Within this scope, all past data have been restated for comparability purposes. For a comprehensive explanation, please refer to the Press Release and the Excel file for Q1 2025, available on the Turkcell IR website.
• 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 September 30, 2025, refer to the same item as of September 30, 2024. For further details, please refer to our consolidated financial statements and notes as of and for September 30, 2025, accessible via our website in the investor relations section (www.turkcell.com.tr).

• Selected financial information presented in this press release for the third 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 in this press release reflect mathematical calculations.

NOTICE

This press release contains the Company’s financial information for the period ended September 30, 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 September 30, 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 September 30, 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, 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 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.

FINANCIAL HIGHLIGHTS

THIRD QUARTER HIGHLIGHTS

• Turkcell strengthened its leadership in the mobile sector and reaffirmed its ambition in next-generation connectivity technologies by securing 160 MHz of spectrum—the maximum capacity allowed for a single operator—for USD 1.2 billion (exc. VAT) in the 5G tender held on October 16, 2025. With this acquisition, Turkcell now holds 394.4 MHz out of Türkiye’s total 949.2 MHz frequency resources, representing approximately 42% of the available spectrum. As in 4.5G, Turkcell has achieved the widest frequency portfolio in 5G, positioning itself as the operator technically capable of delivering the country’s highest 5G speeds and capacity. Through this tender, Turkcell also extended the validity of its 2G, 3G, and 4.5G authorizations until December 31, 2042, with payments of 5% of gross mobile service revenues (exc. VAT) to the ICTA each year starting from April 30, 2029.

• Strong set of financials;

• Group revenues increased by 11.2% year-on-year, driven by robust ARPU growth in Turkcell Türkiye and a notable 20.0% rise in the Techfin segment, which continued to contribute positively to overall performance. The expansion of the subscriber base and price adjustments were key drivers of Türkiye’s strong results, further supported by the Data Center & Cloud business—a key pillar of our strategy—which delivered 50.6% year-on-year growth.

• EBITDA¹ rose by 10.5%, leading to an EBITDA margin of 43.9%; EBIT² was up by 18.6%, resulting in an EBIT margin of 17.4%.

• Profit from continuing operations increased by 31.8% to TRY 5.4 billion, supported by solid operational performance and lower effective tax rate. The decline in net income was driven by a high base in Q324, which included the one-off gain from the sale of our operations in Ukraine.

• Net leverage³ level at 0.20x; Net short FX position of US$9 million

• Robust ARPU growth in both mobile and fixed segments thanks to targeted price optimization supported by micro-segment subscriber portfolio management

• 569 thousand mobile postpaid net additions, bringing the postpaid subscriber base share to 79%

• 33 thousand Turkcell Fiber and 55 thousand total fiber net additions, including resell operations

• Steady ARPU expansion amid a competitive market; Mobile ARPU⁴ growth of 11.9%, residential fiber ARPU growth of 17.3%

• 107 thousand new fiber homepasses this quarter; 6.2 million in total

• Following our strong performance in the first nine months of the year, we revised our 2025 guidance⁵ upwards. We project revenue growth of around 10% and an EBITDA margin of between 42%-43%. Thanks to solid revenue outlook, we are also able to lower our operational CAPEX to Sales⁶ ratio guidance to around 23%. Meanwhile, the revenue guidance for the Data Center & Cloud segment was upgraded to around 43%.

(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 equals 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, and this change has been reflected in previous quarters’ figures

(4) Excluding M2M

(5) Our expectations for 2025 incorporate the effects of inflation accounting under IAS 29. These projections are based on assumptions regarding factors beyond our control, including key macroeconomic indicators such as inflation. Our 2025 expectations are based specifically on an assumed annual inflation rate of around 32% (year-end). This paragraph contains forward-looking statements that reflect our current estimates and expectations regarding market conditions across all of our businesses. However, there can be no assurance that these forward-looking statements will occur as anticipated. For a discussion of the various factors that could impact the outcome of these forward-looking statements, please refer to our 2024 annual report on Form 20-F filed with the SEC, specifically the risk factors section.

(6) Excluding license fees

COMMENTS BY CEO, ALİ TAHA KOÇ, PhD

We take great pride in our strong financial and operational performance in the third quarter, accompanied by our success in the 5G authorization tender; a milestone for our country’s digital future. At the tender held on October 16, we secured a total of 160 MHz, the maximum capacity available to a single operator, once again reaffirming our technical superiority and industry leadership.

4.5G was an important step in Türkiye’s technological transformation, enabling us to provide our customers with world-class speed and communication quality. Building on this, 5G, set to launch in 2026, with its ultra-high speed and low latency, will represent the next stage in the digital transformation of industries such as manufacturing, transportation, healthcare, and education. With the emergence of smart cities, the Internet of Things, and autonomous vehicles, technology will evolve into an entirely new dimension. With over 30 years of experience, an extensive base station network across Türkiye, and a rapidly increasing base station fiberization rate, Turkcell is not only ready for 5G but also determined to lead this transformation. By combining the 700 MHz and 3.5 GHz bands acquired in the tender, we will deliver wide coverage, high speed, and large capacity simultaneously. Offering mobile speeds of 1,000 Mbps and above, our fixed-wireless access (FWA) Superbox solution will provide customers with a fiber-like fixed internet experience – even in areas without fiber infrastructure. As in the eras of 2G, 3G, and 4.5G, we will remain the strongest, most reliable, and most preferred operator in this new era.

Throughout a quarter shaped by an intense 5G agenda, our financial and operational performance maintained its strong momentum. In addition to the solid performance of our core business, consolidated revenues increased by 11.2% year-on-year to 59.5 billion TL, supported by robust growth in strategic focus areas such as techfin and data centers. Backed by disciplined cost management accompanying strong revenue growth, our EBITDA¹ rose 10.5% year-on-year to 26.2 billion TL, with an EBITDA margin of 43.9%, maintaining strong operational profitability in the third quarter. Net income stood at 5.4 billion TL.

Double-digit ARPU growth in both mobile and fixed broadband services

During a quarter marked by intense market competition, which was in line with our expectations, we continued to expand our customer base. In the third quarter, we recorded 569 thousand net postpaid additions, bringing total net additions over the past 12 months to more than 2 million. As a result, our mobile subscriber base exceeded 39 million. The share of postpaid subscribers — a key strategic focus area due to its high revenue contribution — increased by 4.6 percentage points year-on-year, reaching 79%. Leveraging our AI-driven micro-segmentation approach, we continued to upsell through tailored offers. Driven by postpaid subscriber base growth and segment-based price adjustments, Mobile Blended ARPU (excluding M2M) grew 11.9% year-on-year. Due to heightened activity in the Mobile Number Portability market amid intense competition, our mobile churn rate stood at 2.6%.

In the fixed segment, we maintained our focus on fiber. We recorded 33 thousand net fiber additions on our own infrastructure, reaching more customers with Turkcell’s superior fiber quality. Including sales over other ISPs’ infrastructure, we added a total of 55 thousand fiber subscribers. With accelerated fixed broadband infrastructure investments during the quarter, we provided fiber access to an additional 107 thousand new households, bringing total end-to-end coverage to 6.2 million households. Our 42.6% take-up rate underscores that our fiber investments are well planned and effectively executed. Residential fiber ARPU grew 17.3% year-on-year, driven by successful pricing adjustments, a growing share of customers on 100 Mbps+ plans to 52%, and an 88% ratio of 12-month contracts.

Our strategic focus areas continue to support growth

Our Techfin segment, accounting for 6% of consolidated revenues, achieved 20.0% year-on-year growth in the third quarter, outpacing the Group’s overall performance. Our digital payment brand Paycell delivered outstanding revenue growth of 41.7%, primarily driven by POS and mobile payment services. This growth was further supported by initiatives enhancing user experience – such as enabling payments via all bank cards through the national QR payment system, facilitating two-way international money transfers, and expanding contactless payment capabilities. The Central Bank’s increase in mobile payment limits also significantly boosted Paycell’s transaction volumes and revenues. Our Financell brand, which provides fast and flexible financing solutions – ranging from technological devices to vehicle loans, continued to expand its loan portfolio, reaching 7.5 billion TL despite a high-interest-rate environment. The net interest margin expanded by 0.9 percentage points year-on-year to 5.0%.

We achieved strong progress in the third quarter across strategic investment areas, including data center and cloud businesses, as well as solar energy investments. Guided by our long-standing vision that “Türkiye’s data should stay in Türkiye”, as the market leader² in this field today, our data center and cloud business continued to strengthen. During the quarter, the active capacity of our next-generation data centers grew by 8.4 MW, reaching a total of 50 MW. Total data center and cloud revenues increased 51% year-on-year in real terms.

Aligned with our commitment to sustainability and efficiency, the total capacity of our solar power plants operating in Uşak, Van, Balıkesir, and Yozgat reached 37.5 MW as of the third quarter. We believe these strategically important investments create long-term value not only for Turkcell but also for the future of our country. We view them as investments in Türkiye’s sustainable future.

We are revising our expectations upward

Despite the challenging geopolitical and macroeconomic environment globally, we outperformed expectations during the first nine months of the year. In light of these strong results, we are revising our outlook³ for 2025 upward. We now expect revenue growth of around 10%, supported by an anticipated around %43 increase in data center and cloud revenues, while updating our EBITDA margin target to a range of 42% to 43%. Although we are in an intensive investment cycle, strong revenue growth allows us to revise our Operational CAPEX-to-Sales⁴ target to around 23%.

With confidence built on decades of experience and the pride of contributing to our country and society, we continue to move forward. Looking ahead, we will focus on the new opportunities enabled by 5G technology while further expanding the range of products and services that create value for our customers. I extend my gratitude to our Board of Directors, colleagues, and all stakeholders who have stood by us in shaping Türkiye’s digital future.

⁽¹⁾ EBITDA is a non-GAAP financial measure. See page 14 for details on how Adjusted EBITDA is calculated and reconciled with net income

⁽²⁾ Based on internal calculations regarding corporate sales made through data centers.

⁽³⁾ Our expectations for 2025 incorporate the effects of inflation accounting under IAS 29. These projections are based on assumptions regarding factors beyond our control, including key macroeconomic indicators such as inflation. Our 2025 expectations are based specifically on an assumed annual inflation rate of around 32% (year-end). This paragraph contains forward-looking statements that reflect our current estimates and expectations regarding market conditions across all of our businesses. However, there can be no assurance that these forward-looking statements will occur as anticipated. For a discussion of the various factors that could impact the outcome of these forward-looking statements, please refer to our 2024 annual report on Form 20-F filed with the SEC, specifically the risk factors section.

⁽⁴⁾ Excluding license fees.

FINANCIAL AND OPERATIONAL REVIEW

Financial Review of Turkcell Group

(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 equals EBITDA minus depreciation and amortization expenses.

Revenue of the Group rose by 11.2% year-on-year in Q325. This growth was primarily driven by solid ARPU growth, the expanding subscriber portfolio, successful upselling strategies and strong growth performance in the Techfin segment.

Turkcell Türkiye⁴ revenues, comprising 91% of Group revenues, grew 11.1% to TRY54,454 million (TRY48,992 million).

– Consumer business, accounting for 76% of Turkcell Türkiye, grew 10.8% on the back of price adjustments, rising postpaid subscribers and upsell efforts.

– Corporate revenues increased by 17.1% driven by Data Center & Cloud services as well as the price optimization in mobile business. Data Center & Cloud business once again recorded notable 50.6% year-on-year growth in this quarter.

– Wholesale revenues were up 9.5% to TRY3,413 million (TRY3,117 million).

(4) Our revenue segmentation was revised as of Q1 2025. Within this scope, all past data have been restated for comparability purposes. For a comprehensive explanation, please refer to the Press Release and the Excel file for Q1 2025, available on the Turkcell IR website.

Techfin segment revenues, accounting for 6% of Group revenues, rose by 20.0% to TRY3,410 million (TRY2,841 million). A major driver of this growth was Paycell, which maintained its strong momentum, recording significant 41.7% year-on-year growth in the third quarter. For details, please refer to the Techfin section.

Other¹ segment revenues, comprising 3% of the Group’s top-line, which mostly include international business, energy business and non-group call center revenues were TRY1,671 million (TRY1,712 million).

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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