TURKCELL ILETISIM HIZMETLERI A.S. - Q2 2025 Financial Summary
Business Context and Reporting Period
This Form 6-K filing, dated August 14, 2025, reports the consolidated financial results for Turkcell Iletisim Hizmetleri A.S. (Turkcell) for the second quarter and first half of 2025 ended June 30, 2025. The financial statements are prepared in accordance with IFRS and restated for hyperinflationary conditions in Turkey under IAS 29. The Group operates three primary segments: Turkcell Türkiye (telecom and digital services), Techfin (financial services), and Other (international and energy businesses).
Key Financial Metrics
| Metric (TRY Million) | Q2 2025 | Q2 2024 | Y/Y Change | H1 2025 | H1 2024 | Y/Y Change |
|---|---|---|---|---|---|---|
| Revenue | 53,022 | 47,150 | 12.5% | 103,866 | 92,274 | 12.6% |
| EBITDA | 23,086 | 20,105 | 14.8% | 45,304 | 38,777 | 16.8% |
| EBITDA Margin | 43.5% | 42.6% | +0.9 pp | 43.6% | 42.0% | +1.6 pp |
| EBIT | 8,818 | 6,322 | 39.5% | 17,525 | 11,479 | 52.7% |
| Net Income | 4,201 | 3,922 | 7.1% | 7,468 | 7,779 | (4.0%) |
| Net Debt | 25,371 | 12,497 (Dec 2024) | - | - | - | - |
| Net Leverage (x EBITDA) | 0.29x | - | - | - | - | - |
Liquidity and Cash Flow: Consolidated cash increased to TRY 116.6 billion as of June 30, 2025, from TRY 80.4 billion at year-end 2024. Net short FX position was US$102 million, within the neutral target range. Operational Capex for H1 2025 was TRY 19.2 billion (18.5% of revenue).
Material Changes vs. Prior Period
- Revenue Growth: Driven by a 11.8% increase in Turkcell Türkiye revenue, supported by strong ARPU growth and hardware sales. The Techfin segment grew 23.1%, and Data Center & Cloud revenue surged 53.2% year-over-year.
- Profitability: EBIT grew significantly (39.5% in Q2) due to improved EBITDA margins and lower net finance costs. However, H1 Net Income declined 4.0% primarily due to a loss from discontinued operations (Ukraine business sale finalization) and higher income tax expenses compared to Q2 2024.
- Subscriber Dynamics: Mobile postpaid net additions reached 816,000 (highest in 5.5 years), raising the postpaid share to 78%. Conversely, prepaid subscribers declined 16.3% year-over-year. Fiber net additions totaled 20,000.
- Segment Performance: Paycell (Techfin) revenue grew 35.8% driven by POS volume. Financell revenue grew 4.7% with improved Net Interest Margin.
Guidance, Outlook, and Risks
Management Commentary: CEO Ali Taha Koç highlighted robust results driven by superior infrastructure and strategic pricing. The company remains confident in achieving full-year 2025 targets for revenue growth, EBITDA margin, and operational capex ratios. Investments in 5G, fiberization, and data centers continue to be prioritized.
Risks and Contingencies:
- Regulatory: Ongoing investigations by the Information and Communication Technologies Authority (ICTA) regarding refund procedures, identity verification, and R&D obligations. Several administrative fines have been paid or are under legal appeal.
- Competition: Intense market competition and high volatility in mobile number portability (churn rate increased to 2.2% in Q2).
- Macroeconomic: Exposure to Turkish Lira inflation and foreign exchange fluctuations, though the company maintains a neutral FX position.
- Discontinued Operations: Finalization of the Ukraine business sale resulted in a loss of TRY 187 million in the current period.
Investor Verification Checklist
- IAS 29 Restatement: Verify the impact of hyperinflation accounting adjustments on comparative figures and real growth rates.
- Discontinued Operations: Confirm the final settlement amount and tax implications of the Ukraine business divestiture.
- Regulatory Fines: Monitor the status of pending ICTA investigations and potential additional administrative fines.
- FX Hedging: Review the effectiveness of the hedging portfolio given the volatility in TRY/USD and TRY/EUR rates.
- Capex Efficiency: Assess the return on investment for the significant increase in operational capex (18.5% of revenue in H1) related to 5G and fiber expansion.