TKC

Interested in Turkcell Iletisim Hizmetleri AS? Here are five stocks we like better. Strong quarterly performance: Q2 revenue rose 2.5% year over year to TRY 71.8 billion, with EBITDA of TRY 30 billion and net income of TRY 5.2 billion. Turkcell maintained its full-year guidance despite raising its inflation assumption to approximately 28%. Mobile and broadband momentum continued: Mobile subscribers surpassed 40 million, supported by 284,000 postpaid additions and lower churn. Fiber, Superbox fixed wireless and TV+ also expanded, while pricing actions are expected to support stronger ARPU growth from late 2026 onward. Expansion in digital infrastructure and 5G: Digital Business Services revenue grew 33%, and Turkcell’s system-integration backlog reached TRY 16 billion. The company is investing heavily in fiber, 5G and data centers, while retaining a strong balance sheet with a 0.4x net-debt-to-EBITDA ratio. Turkcell Iletisim Hizmetleri AS (NYSE:TKC) reported second-quarter revenue of TRY 71.8 billion, up 2.5% year over year, as the Turkish telecommunications company cited disciplined pricing, postpaid subscriber growth and lower churn in a macroeconomic environment where inflation remained above 30%. Chief Executive Officer Ali Taha Koç said the company delivered “real revenue growth” for an eighth consecutive quarter, despite inflation of 32% during the period. EBITDA totaled TRY 30 billion, representing a 41.8% margin, while net income was TRY 5.2 billion. → Lumentum Just Delivered the AI Growth Investors Wanted Management kept its full-year financial guidance unchanged even after revising its year-end inflation assumption to approximately 28% from 23% previously. Koç said growth in the second half should be supported by the delayed effect of pricing actions taken during the first half, more normalized competition in the mobile market, and continued contributions from Digital Business Services and Techfin. Turkcell crossed 40 million mobile subscribers for the first time, led by 284,000 postpaid net additions during the quarter. The company’s postpaid base reached 32.5 million subscribers, including 2.4 million additions over the past 12 months. Postpaid customers accounted for 81% of the mobile customer base. → Ryman Checks Into a $1.38B Hospitality Upgrade Monthly average churn improved to 1.6%, while mobile ARPU excluding machine-to-machine customers increased 27% year over year to TRY 448. Koç said the contractual nature of the postpaid base means price increases are reflected gradually as customer contracts renew. Management said it expects clearer effects from recent pricing measures toward the end of the fourth quarter, with more substantial ARPU gains expected in 2027. Chief Financial Officer Kamil Kalyon said investors could begin seeing positive signals as early as the third and fourth quarters of 2026. → Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal Turkcell’s fiber business added 31,000 net subscribers during the quarter, bringing its subscriber base to 2.6 million. Residential fiber ARPU rose 37% year over year to TRY 570, and monthly churn improved to 1.1%. The company said 88% of residential fiber customers were on 12-month contracts. The company added 194,000 fiber home passes during the quarter, reaching 6.7 million homes across 31 cities. Customers served through Turkcell’s own fiber infrastructure represented 80% of the fiber base, while the company reported a 41% take-up rate. Its Superbox fixed wireless access, or FWA, service added 64,000 subscribers, expanding the base to 818,000 customers. Turkcell said it held a 74% share of the FWA market. Koç described 5G as a potential catalyst for the product, which is positioned as a plug-and-play home internet option and is priced at levels comparable to, but slightly above, fiber depending on data allowances. Turkcell has begun replacing existing 4G Superbox devices with 5G-capable equipment for customers as it expands 5G coverage. Koç said the company’s 5G offerings support Wi-Fi 7 and are aimed in part at households relying on older DSL technology. TV+ subscribers rose to 2.7 million after 123,000 net additions in the quarter, accelerating from 106,000 additions in the first quarter. The company said its HBO Max partnership, launched in November, strengthened its content offering. Viewing time increased 14% sequentially and 64% year over year. Digital Business Services revenue increased 33% from a year earlier to TRY 8.7 billion. Data center and cloud revenue rose 10% to TRY 1.6 billion and represented 2.3% of group revenue. Turkcell activated a new data center module during the quarter, lifting active IT capacity to 54 megawatts across facilities in Kocaeli, Ankara, Tekirdağ and Izmir. Construction is under way on hyperscale data center facilities in Ankara intended to support Google Cloud’s Türkiye region. Including those hyperscale investments, Turkcell’s total data center investment amount reached EUR 612 million. The company entered the second half with more than 1,500 new contracts and a TRY 16 billion system-integration backlog. Kalyon said major projects from government bodies and other customers helped increase the backlog from TRY 10 billion in the prior quarter, and management expects follow-on projects to continue into 2027. Koç said Turkcell expects data centers to account for 10% to 15% of revenue by 2030 or 2031, aided by demand for cloud and artificial-intelligence infrastructure. He said the Google Cloud facilities could begin selling services in roughly 18 months to two years. Techfin revenue rose 7% to TRY 4.1 billion, representing 6% of group revenue. Paycell revenue increased 22% to TRY 2.4 billion, while transaction volumes rose 84%. Total payment volume reached TRY 39 billion, and Paycell had 6.8 million active users. Kalyon said Paycell’s EBITDA margin was affected by the company’s focus on physical point-of-sale solutions, where transaction profitability can be lower. At Financell, revenue declined 12% year over year as the company maintained a cautious approach to lending and portfolio quality. However, Financell’s net interest margin increased to 7.8% from 4.5%, while its cost of risk was 3.4%. Operational capital expenditures represented 25% of sales during the quarter and 23.2% in the first half. Turkcell directed 81% of second-quarter operational capital expenditures to its core business, including 5G rollout and fiber expansion. The company also acquired a 12.1-megawatt solar plant in Mersin, increasing active solar generation capacity to 74.4 megawatts. Turkcell ended the quarter with TRY 89 billion in cash and cash equivalents, net debt of TRY 44 billion and a net-debt-to-EBITDA ratio of 0.4 times. The company said its liquidity covers remaining 5G license obligations and debt maturities over the next four years. The company paid a first 5G license installment of $625 million in January, including VAT. Management said a second installment of about $400 million is due in December 2026, followed by a final payment of about $400 million in May 2027. Turkcell Iletisim Hizmetleri AS, traded on the NYSE under the symbol TKC, is a leading integrated telecommunications and technology company headquartered in Istanbul, Turkey. Since its founding in 1994 as the country's first GSM operator, Turkcell has expanded its footprint to offer a comprehensive suite of mobile voice, messaging and data services to millions of subscribers. The company has made significant investments in nationwide 4.5G and 5G network infrastructure to deliver high-speed connectivity across both urban centers and rural regions. In addition to its core mobile offerings, Turkcell provides fixed broadband and fiber-optic services tailored to consumer and enterprise customers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Turkcell Iletisim Hizmetleri AS Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 1:00 p.m. ET Investor Relations and Corporate Finance Director - Ozlem Yardim Chief Executive Officer - Ali Taha Koc Chief Financial Officer - Kamil Kalyon Operator: Ladies and gentlemen, thank you for standing by. I am Gaeli, your Chorus Call operator. Welcome, and thank you for joining the Turkcell's conference call and live webcast to present and discuss the Turkcell's Second Quarter 26 Financial Results. All participants will be in listen only mode and the conference is being recorded. Should anyone need assistance during the conference call, you may signal an operator. By pressing *0 on your telephone. At this time, I would like to turn the conference over to Mrs. Ozlem Yardim, Investor Relations and Corporate Finance Director. Mrs. Yardim, you may now proceed. Ozlem Yardim: Thank you, Gaeli. Good evening, everyone, and welcome to Success 26 second quarter earnings call. Before we begin, I would like to kindly remind you to review our safe harbor statement which is available at the end of our presentation. Our earnings release and today's presentation are available on our Investor Relations website. Our CEO, Mr. Ali Taha Koc, will begin with an overview of our business performance, followed by our CFO, Mr. Kamil Kalyon who will take you through our financial results. After the presentation, we will open the line for your questions. it is now my pleasure to hand over to our CEO, Mr. Ali Taha Koc. Ali Taha Koc: You very much, Ozlem. Good evening, everyone. Welcome to Turkcell's second quarter 26 results call. Today, I will take you through our operational and strategic performance for the quarter. After my remarks, Kamil will cover the financial results in more detail, and then we will be happy to take your questions. The key message this quarter is clear. We continue to deliver real growth in a challenging environment. Macro conditions remain demanding, with inflation still >30%. We keep on delivering real revenue growth for the 8th consecutive quarter. Supported by disciplined pricing, continued postpaid additions, and improved churn. In our strategic growth areas, digital business services, fixed wireless access, FWA, data centers, TV, and Techfin took another step forward. Throughout all these slides, you will see 1 consistent story. Disciplined, value focused execution. Let's begin with the numbers. Group revenue reached 71.8 billion Turkish liras, up 2.5% year-over-year. I want to underline this. With inflation at 32%, this is genuine real growth. Driven by consistent pricing actions and healthy commercial momentum across our businesses. EBITDA was 30 billion Turkish liras with a margin of 41.8%, and net income was 5.2 billion Turkish liras. Our profitability continues to reflect the strength of our disciplined operations, and balanced capital allocation approach. On the operational side, momentum was strong across the board. We added 284 thousand postpaid subscribers in a single quarter. Turkcell fiber business added 31 thousand net subscribers. Mobile ARPU was realized at 448 Turkish liras while residential fiber ARPU reached 570 Turkish liras. Techfin revenue was up 7% to 4.1 billion Turkish liras Digital business services revenue grew 33% to 8.7 billion Turkish lira. Data center and cloud revenue increased 10% to 1.6 billion and Superbox, our fixed wireless access technology added 64 thousand subscribers. These businesses are becoming core engines of Turkcell's growth, and reinforce our strategic strategy of building a more diversified and resilient business model. Now let me go deeper into each business starting with mobile business. Our mobile business delivered an outstanding quarter. We crossed the 40 million mobile subscriber milestone for the first time in Turkcell's history. This is a testament to the strength of our network, our brand, and our commercial execution. Our past postpaid base reached 32.5 million subscribers driven by 284 thousand net additions in the quarter. And 2.4 million over the last 12 months. Our prepaid performance remained broadly stable this quarter. As we successfully continued the transition of our mix toward postpaid, which now accounts for 81% of our mobile base. This mix shift is significant. As postpaid customers deliver higher lifetime value through lower churn and multi service adoption. Churn tells the same compelling story. Monthly average churn improved to 1.6%, down significantly from a year ago. So strong net additions combined with declining churn prove 1 thing. Customers are choosing Turkcell with long term loyalty. On pricing, mobile ARPU, excluding M2M, grew 27% year-over-year. Given the predominantly contractual nature of our postpaid base, pricing actions are gradually reflected in ARPU as contracts renew. Our strategy remains consistent. We take disciplined pricing actions to sustain real revenue growth supported by our strong brand and superior service quality. 1 of the most dynamic drivers of our connectivity business today is fixed wireless access. Let me now turn to our FWA performance. Superbox is our fixed wireless access FWA offering. Which we view as the next wave of growth in home Internet. We are the undisputed market leader. With a 74% share of FWA, fixed wireless access market. After a soft start to the Q2 2025, growth has escalated for 4 consecutive quarters. We added 64 thousand subscribers this quarter alone. Expanding our total Superbox base to 818 thousand. The strong momentum we are building here is particularly encouraging. Looking ahead, 5G will act as a catalyst. Superbox, our FWA offering, delivers fast, reliable, plug and play, home Internet today. And 5G will elevate that experience to an entirely new level further accelerating market demand. Superbox enables us to capture broadband demand quickly and efficiently while working hand in hand with our fiber strategy. And fiber remains the backbone of that strategy. Let's move to fixed broadband. Our fixed broadband strategy is straightforward. Grow on our own fiber, price with discipline, and deliver a premium service. And experience. Turkcell fiber reached 2.6 million subscribers. With 31 thousand net additions in the quarter. and 138 thousand over the last 12 months. We continue to increase the share of customers served through our own fiber infrastructure. Reaching 80% up 3 percentage points year on year. The increase reflects our sharp focus on expanding the highest value part of our fiber business. The strength of our fiber business goes beyond scale. Reflecting the quality of our subscriber base. 88% of our residential fiber subscribers are on 12-month contracts. While monthly churn improved to 1.1%. Together, these metrics provide exceptional revenue visibility and reinforce the resilience of our fiber business. On pricing, residential fiber ARPU grew 37% year-over-year. Outpacing the inflation rate. Combined with continuous improvements in churn, these results demonstrate the strength of our fiber proposition and the value customers place on our service. At the same time, we continue to expand in Turkey with strong discipline. We passed 194 thousand new homes in this quarter. Bringing total home passes to 6.7 million across 31 different cities. With the take up rate of 41%. Take up rate is 1 of the metrics we track closely. As it demonstrate that we are expanding where demand is strongest. Connectivity also opens the door to our digital customer service services. Starting with TV+. TV+ now serves 2.7 million subscribers. Subscriber momentum continues to gather pace throughout the year. Net additions increased from 62 thousand in the fourth quarter of last year to 106 thousand in the first quarter of this year, and accelerated further to 123 thousand this quarter. Content is a key driver of the TV business. Our strategic partnership with HBO Max, launched in November has significantly enriched our content offering and resonated well with customers. As a result, viewing time increased by 14% quarter-over-quarter and 64% year-over-year. TV+ is about more than just the numbers of subscribers. It strengthens engagement across our ecosystem. Also, subscribers that actively use TV+ interact with Turkcell more frequently. Adopt more of our services, and build deeper longer lasting relationships with us. Now let's move to the fastest growing part of the group, digital business services. Digital business services delivered an outstanding quarter. With revenue up 33% year-over-year to 8.7 billion Turkish liras. This strong performance reflects the depth scalability, and market strength of the digital infrastructure platform we have built over the years. Today, our data center footprint spans 4 different locations. Kocaeli, Ankara, Tekirdag, and Izmir. Following the activation of a new module during the quarter, our active IT capacity reached 54 megawatts. We are now taking this platform to the next level. Construction of hyperscale data center facilities, they get dedicated to Google Cloud, Turkey region, in Ankara, underway. A partnership of this caliber is a strong endorsement of the quality of our infrastructure. And further strengthens Turkcell's position at the center of Turkey's digital transformation. Including our hyperscale data center investments, our total investment amount reached €612 million. As of Q2, data center and cloud represent 2.3% of our group revenues. While still a developing revenue stream today, we see this business as 1 of the Turkcell's most promising long term growth platform. Growth in system integration was supported by both hardware and services. More importantly, we entered the second half of the year with more than 1.5 thousand new contracts and a system integration backlog of 16 billion Turkish lira. This contracted backlog provides exceptional revenue visibility and reinforces our confidence in the sustainability of future growth. Finally, let me turn to our techfin businesses. Another critical pillar of the Turkcell ecosystem. Our techfin businesses contribute 6% of the group revenue this quarter and continue to strengthen the diversity of our earnings base. Paycell delivered another strong quarter. With revenue increasing 22% year-over-year to 2.4 billion Turkish lira, pay later transaction volume surged 84%. While POS transaction volume grew 67%. Consequently, total payment value across the Paycell ecosystem reach 39 billion Turkish lira during this quarter. Paycell now serves 6.8 million active users across a broad range of everyday payment services, while the ongoing expansion of our POS solution is further strengthening our merchant ecosystem. Together, these customer and merchant capabilities continue to reinforce the scale, and the resilience of our payment platform. At Financell, our focus remained firmly on profitability, and portfolio quality. This effort resulted in a significant improvement in net interest margin while increased from 4.5% to 7.8%. While the cost of risk remained well under control at 3.4%. Revenue was 12% lower year-over-year reflecting our disciplined approach to portfolio management. Financell continues to lead the customer finance market with a 43% market share by number of loans. Our 16.1 million preapproved credit customers provide significant potential for future growth. As we close the quarter, 1 key message stands out. Our core connectivity business continues to perform with resilience. While the businesses we have been investing and are becoming increasingly important drivers of our growth, and profitable. We remain committed to executing our strategy with discipline, investing in high return, long term growth, while continuously enhancing operating margins. Before I conclude, let me briefly touch on our outlook. Since the beginning of the year, the macroeconomic environment has evolved. And we now anticipated year end inflation to settle around 28%. Compared with our previous assumptions of 23%. Even with this revised inflation assumption, our financial guidance remains unchanged. Finally, I want to express my sincere gratitude to the entire Turkcell team. Their dedication, and commitment are behind every achievement we have shared today. With that, I will hand it over to Kamil for a more detailed review of our financial results. Kamil Kalyon: Thank you, Ali Taha. Let me now take you through our financial results. During the second quarter, inflation proved more persistent than anticipated. With regional geopolitical tensions adding further pressure to the macroeconomic outlook. Despite these headwinds, delivering positive real growth clearly underscores the inherent stability of our business model. This performance is a direct result of our strong brand equity disciplined pricing strategy and solid commercial momentum across every segment. Simply put, these results give us full confidence in the quality and long term sustainability of our growth trajectory. Turning to our financial performance in this environment. We generated 71.8 billion Turkish liras in revenues marking an impressive 2.5% year on year growth. Turkcell Turkey continued to drive group expansion delivering 1 billion in incremental revenue with accelerated momentum across the corporate segment played a pivotal role in supporting this performance. On the profitability side, I want to highlight our deliberate strategy around 5G. As the clear leader at every stage of the 5G transition, we intentionally stepped up our marketing investments this quarter to further solidify customer adoption and translate our 5G leadership into long term commercial value. Even when measured against an exceptional strong comparable base, we delivered a healthy EBITDA margin of 41.8% which sits fully in line with our full year expectations. Next slide, please. Moving on to net income, I would like to briefly outline the key dynamics shaping our financial performance this quarter. Following the commercial launch of 5G, depreciation of the associated assets commenced this quarter. Roughly half of the year on year increase in the depreciation is attributable to these 5G license. As expected, the resulting increase in depreciation impacted the bottom line while marking an important transition as our 5G investments moved into active deployment, and monetization. This impact was partially offset by higher monetary gains associated with the capitalization of the 5G license compared with the same period last year. Despite the year on year increase in our net debt position, our active treasury management continued to deliver tangible benefits. Excluding FX effects, we generated higher financial income while reducing finance financial expenses with both contributing positively to our bottom line year on year. Moving to our equity-accounted investments. TOGG, in which we are proud to be a founding shareholder, continue to scale its operations during the quarter. As the business matures, the heavy start up losses of its early years have now largely normalized delivering a more favorable contribution to the group year on year. On the tech side, our tax expense was significantly lower year on year supported by the fixed asset revaluation effect and tax incentives tied to our growing data center business leading to a meaningful improvement in our effective tax rate. Bringing all these factors together we delivered a strong bottom line performance translating into a net income of 5.2 billion Turkish liras. Next, I would like to walk you through the main drivers behind our net FX loss. Before discussing this quarter's effects impact, let me first emphasize that we continue to manage both FX and interest rate risk proactively, with a disciplined approach that balances risk hedging costs, and financial returns. On the borrowing side, the $1 billion of the Merabah facility we secured last quarter increased the FX component of our debt portfolio. This exposure is largely balanced by our sizable FX denominated cash and financial assets which provide a natural offset against our FX liabilities. At the same time, we actively managed these assets under our treasury strategy to optimize returns while maintaining a disciplined approach to FX risk. Another factor contributing to the FX impact this quarter was our remaining 5G license installments. With 2 payments still outstanding, these obligations remain subject to FX revaluation. Furthermore, the accelerated pace of TI depreciation compared to previous periods has naturally added to our reported FX expenses. We constantly evaluate alternative hedging strategies. However, under current market dynamics, the cost of fully hedging our FX exposure remains elevated. We believe our current approach strikes an effective balance between managing effects risk and maintaining cost efficiency. Finally, it is essential to evaluate our finance expenses holistically rather than focusing solely on reported FX loss. As part of our proactive liquidity management, we utilize FX swaps to convert hard currency liquidity into Turkish lira and deploy the resulting funds into high yielding money market instruments and deposits. While the cost of these transactions is recognized as a FX losses, for accounting purposes, resulting Turkish lira liquidity generates meaningful interest income which is recorded separately and therefore is not captured in the FX loss line. Therefore, reported FX loss should not be viewed in isolation as it captures only 1 component of the broader economic outcome of our treasury strategy. Next slide, please. Turning to our investments. Our operational CapEx to sales ratio stood at 25% in the second quarter bringing our first half ratio to 23.2%. We allocated the 81% of our operational CapEx directly to our core business primarily supporting 5G network rollout and the continuous expansion of our fiber infrastructure. During the quarter, we added 194 thousand new fiber home passes, expanding our total footprint to 6.7 million. Meanwhile, the fiberization rate of our base stations reached 47.5%, further strengthening the quality and the resilience of our integrated network. Beyond our core telecom infrastructure, we continue to expand our renewable energy portfolio. In April, we acquired a 12.1 megawatt solar power plant in Mersin, bringing our active solar generation capacity to 74 point 4 megawatts. We expect this capacity increase further over the coming quarters as projects currently under the development become operational. We also made further progress in our data center investments. We activated the final module of our Ankara data centers and broke ground on the data center infrastructure supporting the Google Cloud region in Turkey. With these investment milestones covered, let me now turn to our balance sheet position. Turning to our balance sheet, our financial position remains strong. With cash, and cash equivalents reaching 89 billion at quarter end. Our cash position remains resilient compared to year end 2025, despite significant planned cash outflows including the first 5G license installment the annual wireless usage fee and bonus payments. The Moraba financing completed during the period further strengthened our liquidity position and provided additional financial flexibility. We remain focused on proactive liquidity management balancing efficient funding with the preservation of a strong balance sheet. As anticipated, these planned cash outflows resulted in net debt of 44 billion Importantly, our leverage ratio remained very low It just 0.4 times well, within our comfort zone and among the strongest levels in our peer group. Looking ahead, our robust liquidity fully covers all remaining 5G license obligations and debt maturities over the next 4 years. Next, let's take a closer look at our FX exposures. Finally, let me touch upon our foreign risk management. As part of our proactive treasury strategy, we selectively use FX swaps to optimize returns on our cash balances converting a portion of our hard currency liquidity into Turkish lira to benefit from attractive TL yields. At the same time, we maintain a substantial portion of our cash in hard currencies, providing a natural hedge against our FX liabilities. At Quarter-end, 60% of our cash was held in hard currencies while 87% of our financial debt was denominated in hard currencies. At the end of second quarter, we had 4.3 billion US dollar equivalent of FX denominated financial liabilities balanced by 2.6 billion US dollar equivalent of FX denominated financial assets and effective hedging portfolio of 1.2 billion US dollars, The year on year increase in FX liabilities primarily reflects our 5G license obligations and related investments the expansion of our data center capacity and the BOTAS standard. All directly linked to the execution of our long term investment strategy. As a result, our net short FX position remained comfortably within our medium term target range of plus and minus 1.5 billion US dollars. With that, I will hand the call back to the operator and we would be happy to take your questions. Operator: You very much. Ladies and gentlemen, at this time, we will begin the question and answer session. If you wish to remove yourself from the question queue, then you may press *2. Please use your handset when asking your question for better quality. Anyone who has a question may press *1 at this time. 1 moment for the first question, please. The first question is from the line of Cemal Demirtas with Bank of America. Please go ahead. Analyst: Hi, good evening, everyone. Good evening, everyone. Thanks for the call and the opportunity to ask questions. And congratulations on the results. I have 3 questions. Sorry about that. The first 1 is very easy. Just wanted to understand what would be the drivers that would help you reaccelerate growth in the second part of the year? So that it is more in line with the guidance you provided. I am talking about revenue growth. The second question, I would like to understand a little bit better why the margins at Paycell and Financell are so volatile. So for example, if I look at the Paycell margins, there was a 5.5% decrease this quarter versus last year. To the opposite, the Financell margins increased by almost 20 percentage points. So I would like to understand that a little bit better. And then the third question is on the CapEx. We have seen, I think, your key competitor increasing slightly CapEx guidance in line with the FX volatility and that high inflation. Are you still comfortable with your current CapEx guidance? Thank you so much. Kamil Kalyon: Thank you very much. I will start from the third question. Yes. We are still confident about to reach our guidance in the CapEx side. Even if there would be, how can I say, a fixed increases, As you know, coming from this period, we are very disciplined about the CapEx spending side? Therefore, we will be carefully spending our money, and we think that we do not expect more deviation in the CapEx guidance side. In the second question, Cemal side, for, like, for, I think, last 2 years period in Cemal, we are focused on the POS solutions. In physical to pay POS solutions and the other side. Therefore, the profitability of these transactions a little bit eroding the Paycell's EBITDA margin. While we have a very important amount of growth in the Paycell side. But sometimes, these post transactions can be a little bit a little bit in total, we are very happy to see the performance of the Paycell side. Regarding the finances financial side, due to the economical conditions in Turkey, there are, can I say, tightening policies. Therefore, the demand for the terminal or the equipment site is a little bit how can I say, poor this year? Therefore, this directly affects Financell's credit line, and the activities. But since the cost of financing is reducing in this way, therefore, you can see higher EBITDA margins in the Financell side. Therefore, the volatility is coming from this 1. But we are still very happy to the contribution of the Techfin side into our overall picture. Ali Taha Koc: So the for the first part, that is why we are expecting the growth in the second half. Why? Because currently in the telecom market, the competition is naturalizing, and it is becoming a more realistic competition is in the market right now. Compared to mobile number portability if you compare to last year. This year is a little bit better. And the we have a dynamic pricing actions that we put in the first half of the year. So the impact of that price changes is going to support our second half growth. And I am pretty sure that the DBS and fintech continues to support our growth in the second half of the year. Analyst: Thank you so much. That was very clear. Kamil Kalyon: Thank you. Operator: The next question is from the line of Mandaci Ece with HSBC. Mandaci Ece: Yes. Hi. Thanks a lot for taking my question. My question is a follow-up on the growth outlook. So just wondering when do you see the impact of recent price hikes to become, you know, fully visible in the growth and, you know, it goes towards your guidance of you know, a high single-digit level So if you could give some color on that, that will be very helpful. And then the second question is on your FWA offering. Very interesting to see the growth in that segment. If you could help understand, you know, of your current customer base, of around 800 thousand if I remember correctly, Are they all on 4G devices or those devices they have are capable of using 5G as well. So do they need to upgrade their device basically to benefit from the 5G transition? So that will be, you know, helpful to understand. And in terms of the pricing of FWA, you know, what kind of discount or parity it has versus the fiber product If you could talk about the offering itself, what the speed customers are getting now, and what speeds they are likely to get with 5G. If you could give some dynamics around the product, that will be very helpful. Ali Taha Koc: You very much for the question. First of all, the first part, the growth impact, Because of the lag effect of our price change, and also a 12 month contract. So beginning from the end of the Q4, you are going to see the impact and the growth much clearer. The for the, FWA part, FWA is currently as you may know, we got the highest frequency band and we had the biggest investment in the 5G. We have a higher capacity, and our 5G offerings are with supporting Wi-Fi 7 as well. So what we are doing right now is we are just offering this product to all of the customers in Turkey who has a old fashioned technologies using, like, DSL. And then on top of it, it is a very portable and plug and play easy to use device. So there is a huge appetite from the market They wanna buy it. And at the beginning, we just for our own 4G users, 4G Superbox users, we started to swap them with our 5G devices because currently, 4G, current 4G spare box only supports 4G technology. But we deployed 5G all around the world around the Turkey. that is in order to utilize that kind of capacity, they need to have 5G equipment. And the if you compare the pricing of our Superbox compared to the fiber, Superbox pricing is a little bit above fiber prices. But there is a huge impact of the usability. So it is very easy. You can go and get grab that device, and then you can plug and play, and then you can use it very easily. Mandaci Ece: Did I did I hear that correctly? The box is more expensive than fiber. Ali Taha Koc: Comparable prices. You know, you can just a little bit. You know? So just they are close because you put some limits on this product tariffs. It is 250 gigabytes or 500 or 1 terabyte. So depending on the, the limits that you have, the price can change, but it is comparable prices. Mandaci Ece: And that is good. And in terms of any response from competition on that side, have you seen anything? Ali Taha Koc: So 74% market share, I think, answers your questions. Okay. Operator: Thank you. The next question is from the line of Cemal Demirtas with Ata Invest. Please go ahead. Cemal Demirtas: Thank you for the presentation and congratulations for good results. My first question is about the strategic perspective, Ali Taha Koc. I remember that when you were, you know, appointed as the CEO, in your minds, you were know, maybe expecting or you were foreseeing to have 22% out of 12%. In the future. You had your ambitious targets at that time. And, you know, you are progressing the company in years. I would like to ask you, you know, strategy perspective question. You have more drivers right now. But you are getting more than mobile operator. When do you think we will see the other areas like the result platforms, data center to have more significant contribution in your revenues Could we expect any 3 year plan that is, you know, at least give out the direction maybe in the following quarters. Maybe it is not that clear now, but at least that kind of thing will get us, you know, more information to get that digital platform more than helping you for instance. Actually, it will be very, you know, good thing to point that because currently, you know, the system is bit harder, I would say. In our view, we had difficult to understand the verification. But we understand that the market is focusing on the weak article at least at this moment. So I think any clarification on that or, you know, any long term perspective as you did in the past in data center? It could be very helpful. Maybe sorry for this long question. Ali Taha Koc: And the second 1 is about the short term perspective. In your earnings release you mentioned that ARPU improvement could come in the fourth quarter And if we assume that in the fourth quarter, are we gonna see some improvements? Or you mean, you know, it is gonna be in 2027? Thank you. Thank you very much. Thank you very much for the question. So when I started this role, I had a I have a dream, you know. So I have still that dream, but I am gonna executing it firmly and with the disciplined approach. So what we happen In 2016, Turkcell started its is journey in the DC provider, It built its first DC in 2016. and then it started a DC business as a collocation provider. So collocation business is very good, profitable, very business. But in order to come up with a, like, a dream of the becoming another truck sale, you need to add the service business on top of it. So that is the reason that we have a huge agreement with Google Cloud like a $3 billion investment to reach that dream. Because with the collocation businesses, it is limited. Because what happens in the it affects very deeply about all these political issues. If no 1 can buy servers, they do not need collocation services as well. Currently, you can see that the price of the servers are going high, and then because of the processor and the RAM crisis, the price of each drawer is getting higher and higher. So on top of it, everyone's looking for the services, cloud services. So that is the reason that we have a huge agreement with the Google Cloud. Currently, this year, our revenue of the DCN cloud revenue reached 2.3% of overall revenues. It was 1% or something a couple of quarters back. It went up to 2.3%, but we are constantly improving that percentage and revenue. And with the, we started the construction of the Google Cloud data centers. And in 18 months, hopefully, we are going to start in the 2 years. We are gonna start selling services And the service business is going to bring more revenue And I am pretty sure that in 5 to 6 years, you are gonna see more revenues coming out of that. You know, we are expecting in 2030-2031, 10% to 15% of the revenue is gonna come from our data center business. But that is a long term story. And then also with the AI, I am pretty sure that the value, this investment value is gonna be more recognized because in order to have AI capability, you definitely need a data center. And guess what? Currently, we have 54 megawatts of capacity for AI usage. And if anybody can bring their servers or the AI chips, we have the location for them. So that is the reason that I have I am very optimistic about the revenue, and it is gonna come. Any other question? Yeah. Can you repeat the second question? Questions. I am sorry. I forgot the second question. Cemal Demirtas: If I ask society now, you mentioned in your early career, you expect that recovery in our ARPU. You know, fourth quarters and onwards, Meaning, you know, after Q2 to Q4, you know, 2 times 27, or we are going to see it in the fourth quarter? Ali Taha Koc: Thank you. So what we just put in the price and the ARPU levels hours, and then I am pretty sure that it is going to slowly increase, but we are gonna see the real impact in 2027. Kamil Kalyon: Yeah. But you will get the signals, the positive signals, because we are investing a lot of things to make our ARPU high. Starting from this year. Therefore, you will be seeing the signals in the third quarter of 2 thousand 26 most probably in February, but the exact results will be taken in 2027. Cemal Demirtas: And 1 related to your, you know, backlog from system integration project. You see that 16 billion versus time deal in terms of the previous card. But Should we expect gradual increase in the power following quarters? Or should we expect more significance improvements maybe late 2027 or 2020 on that front. Kamil Kalyon: Thank you. Yes. When you look at our Q1 results and Q2 results, we had very, very important significant projects. Coming from the governmental bodies and the other side. Therefore, we see the valuable effects of these projects this year. Most probably, they will come because when you start a big project in a company or in the governmental side, there are a lot of following projects are coming from this project. Therefore, our expectation in 2027 these projects will be continuing in the 2027 because, as we explained previously, the most important or strong muscles of our company, are not only focusing on the individual side only. We are also very, very strong in the enterprise side in the market. Therefore, that is why Google or the other big companies are choosing us as a partnership. Yes. We have a very good technical expertise, but our Salesforce regarding this enterprise side is very strong. Therefore, we invested this service line 6 or 7 years ago. But we are now harvesting this investment in this years. And most probably, it will continue in the coming years. Cemal Demirtas: Thank you for thank you for your answers. Yeah. Operator: The next question is from the line of Evgeniya Bystrova with Barclays. Please go ahead. Evgeniya Bystrova: Hello. Good evening, and thank you for the presentation. I have just 1 quick question, and apologies if you covered it in the past But I wanted to understand better or maybe you could break down for me the expected payments for the 5G tender. I know there was a payment in Q1 including the VAT, but correct me if I am wrong. So what was the specifically the 5G payment in Q1? And what are the expected payments in the next quarter? And what is the timing for that? Thank you. Ali Taha Koc: Okay. It is 3 installments. The first installment is also included the VAT. Either way, they happen at January of this year. The second installment is gonna be in the December. This year. And it is around $400 million. And the third and the last installment is gonna be next year, May 2027. And it is, again, like, around $400 million. Yeah. And the first installment amount is 600 to 5 million US dollars. Because of includes the VAT as well? So we pay the VAT or upfront. Okay. Thank you. that is very clear. Operator: Thank you. As a reminder, if you would like to ask a The next question is from the line of Yusuf Karagoz with Ak Yatirim Thank you so much for the presentation. Analyst: I have 2 questions. So do you expect any changes to the credit limits as far as know that there is a limit to installment on newly devices, And this is for to this is so important for the for the 5G penetration and also for the finance And my second question is that have you started to see the contribution from the 5G on ARPU growth? And my last question will be related to data centers. So how much EBITDA data center generate in the second quarter of this year And if you have any, you know, could you share it as details about the data center or any other I mean, the segment for digital business services. Thank you so much. Ali Taha Koc: Thank you very much for the question. The first part is very important for us, especially with the 5G penetration. it is around 35% right now of our all of our users. 30% to 35% of them have the 5G phones. But in order to support that, we are supporting the local production also late last year. We had the agreement with Samsung to produce in Turkey, which is gonna be included. That production is gonna be a series 1, and it is gonna be below 20 thousand Turkish lira. But with the latest developments, as especially on the RAM price crisis and then also supply chain issues, we are seeing that the product of the phones are getting more expensive. So that is the reason that we are doing lots of lobbying in order to increase that limit. But in our planning, we always keep that limit amount, 20 thousand Turkish dollars fixed, But if it is changed, I am pretty sure that it is gonna positively affect our outlook, especially for the financial. But I am pretty sure that 18 months ago, they changed that limit. I am pretty sure that in soon, because we are not gonna able to find any phone which is smaller than $20 thousand so we cannot do any installment. But on top of it, you can do a 3-month, 3 installments. Besides 12 installments, you can do 3 installments. But overall, I am pretty sure that for the penetration, that limit needs to be The second thing that, with 5G, we can see that the usage amount of the usage and then the data usage has increased, And on top of it, the 5G is gonna improve our ARPU slowly. And what I am pretty sure that the users who are using 5G have higher ARPUs. And then when we move them all to our customers from 4G to 5G, with the 5G capable phones, I am pretty sure that our ARPU is going to have a positive impact on that. Kamil Kalyon: And Regarding the EBITDA margins of the DC operation, I we are not expecting any erosion in our EBITDA margins. When we look at our business plans, we see that the we see that the EBITDA margins that will come from this DC operation will not erode our consolidated EBITDA margins. Ali Taha Koc: But without the with the 5G ARPU levels, we are bringing a new concept called FWA, fixed wireless access. So we are double using the our 5G spectrum. For the cell phones as well as the home Internet. So we are gonna see a growth and then a revenue growth from the FWA part as well. Analyst: Thank you so much. Operator: Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Turkcell management for any closing comments. Ali Taha Koc: Thank you. Thank you very much, and see you in our third quarter call. Kamil Kalyon: Thank you very much for sparing your time. Thank you for joining us. Bye. Operator: Ladies and gentlemen, the conference has now concluded. And you may disconnect your telephone. Thank you for calling, and have a pleasant evening. Before you buy stock in Turkcell Iletisim Hizmetleri A.s., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Turkcell Iletisim Hizmetleri A.s. wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. 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Turkcell (TKC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: Group revenue reached TRY 71.8 billion, up 2.5% year-on-year. EBITDA: TRY 30 billion, with a margin of 41.8%. Net Income: TRY 5.2 billion. Mobile ARPU: TRY 448, with mobile ARPU excluding M2M growing 27% year-on-year. Residential Fiber ARPU: TRY 570, up 37% year-on-year. TechFin Revenue: Up 7% to TRY 4.1 billion. Digital Business Services Revenue: Grew 33% to TRY 8.7 billion. Data Center and Cloud Revenue: Increased 10% to TRY 1.6 billion. Paycell Revenue: Increased 22% year-on-year to TRY 2.4 billion. Financell Revenue: 12% lower year-on-year, reflecting disciplined portfolio management. Net Interest Margin (Financell): Improved from 4.5% to 7.8%. Cost of Risk (Financell): 3.4%. Operational CapEx to Sales Ratio: 25% in Q2, 23.2% in the first half. Cash and Cash Equivalents: TRY 89 billion at quarter end. Net Debt: TRY 44 billion, with a leverage ratio of 0.4 times. Warning! GuruFocus has detected 6 Warning Signs with TKC. Is TKC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Turkcell Iletisim Hizmetleri AS (NYSE:TKC) delivered real revenue growth for the eighth consecutive quarter, with group revenue up 2.5% year-on-year despite high inflation, demonstrating strong pricing power and commercial execution. The company achieved a significant milestone by surpassing 40 million mobile subscribers, with strong postpaid net additions of 284,000 in the quarter and improved monthly churn to 1.6%, indicating robust customer loyalty and a higher-value subscriber mix. Digital Business Services (DBS) revenue surged 33% year-on-year, driven by a strong system integration backlog of TR16 billion and the expansion of data center capacity, positioning the company for sustained growth in high-potential areas. The FWA (Superbox) business continues to accelerate, adding 64,000 subscribers in the quarter and maintaining a dominant 74% market share, with 5G expected to further boost demand and revenue. The company maintains a strong balance sheet with a low leverage ratio of 0.4x and robust liquidity, fully covering all remaining 5G license obligations and debt maturities, while also benefiting from tax incentives and improved net interest margins in its TechFin segment. Turkcell Iletisim Hizmetleri AS (NYSE:TKC) faces persistent macroeconomic headwinds, with inflation revised up to 28% for year-end, which could pressure consumer spending and increase operational costs. The company's net income was impacted by higher depreciation expenses related to 5G assets, which began this quarter and are expected to continue, putting pressure on bottom-line profitability. FX losses remain a significant drag on financial results, driven by the depreciation of the Turkish lira and FX-denominated liabilities, including 5G license installments, with hedging costs still elevated. ARPU growth is expected to remain subdued in the near term, with management indicating that the full impact of pricing actions will only be visible in 2027, suggesting limited immediate revenue acceleration. The TechFin segment showed mixed performance, with Paycell's EBITDA margin declining due to investments in POS solutions, while Financell's revenue dropped 12% year-on-year due to tighter credit conditions and reduced demand for equipment financing. Q: What are the key drivers expected to reaccelerate revenue growth in the second half of 2026, and when will the impact of recent price hikes become fully visible?A: CEO Ali Koc stated that growth in the second half will be supported by a naturalizing competitive environment, dynamic pricing actions implemented in the first half, and continued contributions from Digital Business Services (DBS) and fintech. CFO Kamil Kalyon added that due to the lag effect of price changes and 12-month contracts, the impact will become much clearer starting from the end of Q4, with positive signals expected in Q3 and Q4 of 2026, but the exact results will be seen in 2027. Q: Can you provide more details on the FWA (Superbox) offering, including device capabilities for 5G, pricing versus fiber, and the competitive response?A: CEO Ali Koc explained that Turkcell has the highest frequency band and made the biggest 5G investment, offering FWA with Wi-Fi 7 support. The company is swapping 4G Superbox devices for 5G-capable ones to utilize the new capacity. Pricing for Superbox is comparable to fiber, with slight variations depending on data limits (250GB, 500GB, or 1TB). When asked about competition, Koc pointed to Turkcell's 74% market share in FWA as the definitive answer. Q: What is the long-term strategic vision for Turkcell's diversification, particularly regarding data centers and digital platforms, and can you provide a three-year plan?A: CEO Ali Koc reiterated his long-term dream of transforming Turkcell beyond a traditional mobile operator. He highlighted the journey starting with data center collocation in 2016 and the recent $3 billion agreement with Google Cloud to build hyperscale data centers in Ankara. Koc expects data center and cloud revenue to grow from the current 2.3% of group revenues to 10-15% in five to six years, driven by AI demand and the upcoming service business from the Google Cloud partnership. Q: Why are the EBITDA margins at Paycell and Financell so volatile, and are you still comfortable with your CapEx guidance given high inflation?A: CFO Kamil Kalyon explained that Paycell's margin erosion is due to heavy investment in physical POS solutions, which have lower profitability but drive significant growth. Financell's margin improvement is due to Turkey's tightening monetary policy reducing demand for equipment financing, lowering costs. On CapEx, Kalyon confirmed confidence in meeting guidance, citing disciplined spending history and no expected deviation despite FX effects. Q: What are the expected payment schedules for the 5G tender, and what was the specific Q1 payment?A: CEO Ali Koc detailed the payment schedule: the first installment of $625 million (including VAT) was paid in January 2026, the second installment of approximately $400 million is due in December 2026, and the third and final installment of approximately $400 million is due in May 2027. Q: Do you expect any changes to credit limits for device installments, which are important for 5G penetration and Financell, and have you started seeing 5G contribute to ARPU growth?A: CEO Ali Koc noted that 30-35% of users have 5G-capable phones, and Turkcell is lobbying to increase the current installment limit of 20,000 Turkish liras, which is becoming insufficient due to rising phone costs. He expects a change soon as phones below this price are disappearing. On 5G ARPU, Koc confirmed that data usage has increased and 5G users have higher ARPUs, which will positively impact overall ARPU as customers migrate from 4G to 5G. Q: How much EBITDA does the data center segment generate, and can you share details on the digital services segment?A: CFO Kamil Kalyon stated that the company does not expect any erosion in overall EBITDA margins from data center operations, as the business plan projects margins that are not dilutive. He did not provide specific segment-level EBITDA figures but emphasized the strategic importance of the data center business for long-term growth. Q: Regarding the system integration backlog of TR16 billion, should we expect gradual increases or more significant improvements in the coming quarters?A: CFO Kamil Kalyon explained that significant projects from governmental bodies have contributed to the backlog, and these projects typically generate follow-on business. He expects the strong enterprise-side momentum to continue into 2027, noting that Turkcell's strong sales force in the enterprise segment is a key competitive advantage, which is why major companies like Google choose Turkcell as a partner. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Diversified and Resilient Business Model Delivers Steady Growth ISTANBUL, August 13, 2026--(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: 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 HIGHLIGHTS Steady growth performance in Q226, supported by a diversified business model; 5G network capacity driving the strongest Superbox (Fixed Wireless Access) growth since Q220; (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 (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. Administrative expenses increased to 4.1% (3.7%) as a percentage of revenues in the second quarter. Selling and marketing expenses as a percentage of revenues increased to 7.6% (6.3%), primarily reflecting our deliberate increase in marketing investments following the 5G launch, aimed at accelerating customer adoption and maximizing the long-term commercial value of our 5G leadership, alongside continued strategic investments to strengthen brand visibility and customer engagement. Net impairment losses on financial and contract assets were at 0.5% (0.6%) as a percentage of revenues in Q226. EBITDA1 reached TRY 30,013 million in Q226, translating into an EBITDA margin of 41.8% (43.5%). The year-on-year margin development mainly reflected our deliberate increase in marketing investments following the 5G launch, as well as the business mix impact of strong growth in corporate projects within our Digital Business Services. - Turkcell Türkiye’s EBITDA was TRY 27,839 million (TRY 28,850 million), resulting in an EBITDA margin of 43.0% (45.3%). - Techfin segment delivered strong profitability improvement, with EBITDA increasing to TRY 1,310 million (TRY 970 million). This performance resulted in a solid 6.6pp expansion in the EBITDA margin to 31.8% (25.2%). - The EBITDA of Other segment increased to TRY 864 million (TRY 678 million), while the EBITDA margin improved by 2.1pp to 29.3%. Depreciation and amortization expenses increased by 9.1%, amounting to TRY 20,561 million (TRY 18,849 million). This increase was primarily due to depreciation charges related to our 5G investments and license. Net finance expenses totaled TRY 2,114 million (TRY 1,772 million) in this quarter. Higher FX losses, driven mainly by a larger net short FX position associated with 5G investments and the depreciation of the Turkish lira, were partially offset by monetary gains following the capitalization of the 5G license. See Appendix A for details of net foreign exchange gain and loss. Net Other expenses were TRY 544 million (TRY 257 million) in Q226. Income tax expense decreased to TRY 1,150 million (TRY 2,233 million) in the second quarter, supported by higher fixed asset revaluation recognized during the period and tax incentives related to our data center investments. These benefits more than offset the impact of the discontinuation of inflation accounting in the statutory financial statements as of Q425. Net income of the Group remained solid at TRY 5,235 million (TRY 5,549 million) in Q226. As TOGG continued to scale its operations, its financial performance improved significantly year-on-year, resulting in a more favorable contribution to the Group’s consolidated net income. (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. Total cash & debt: Consolidated cash as of June 30, 2026 amounted to TRY 89,275 million compared with TRY 108,136 million as of December 31, 2025. The decline was primarily attributable to significant cash outflows in the first quarter, including USD 653 million (including VAT) for the first installment of the 5G license and the Wireless Usage Fee, as well as employee bonus payments. As of the end of the second quarter of 2026, 40% of our cash is in TRY, 40% in USD, and 20% in EUR. Excluding FX swap transactions, 51% of our cash is in USD, 31% in EUR, and 18% in TRY. Consolidated debt increased to TRY 212,068 million as of June 30, 2026, up from TRY 186,823 million as of December 31, 2025. The increase was driven primarily by the USD 1 billion Murabaha syndicated loan facility secured in March. Lease liabilities accounted for TRY 16,597 million of our consolidated debt. Following hedging transactions, 68% of our consolidated debt was in USD, 19% in EUR, 8% in TRY, and 5% in CNY. As of June 30, 2026, net debt1 increased to TRY 44,494 million from TRY 17,532 million as of December 31, 2025, with a net debt to EBITDA ratio of 0.36x. We continued to manage the Group’s balance sheet through a holistic and disciplined approach, balancing FX exposure, hedging costs and cash returns. As we funded major strategic investments, including 5G commitments, we maintained a selective hedging strategy, while effectively utilizing the Turkish lira liquidity generated through FX swap transactions to enhance financial returns. As of the end of second quarter, the Group’s net short FX position stood at USD 1.3 billion, including the hedging portfolio and advance payments, remaining within the medium-term target range of minus USD 1.5 billion to plus USD 1.5 billion. Capital expenditures increased to TRY 106,824 million in the first half of the year driven by a USD 1.2 billion 5G license (exc. VAT). In the second quarter of 2026, we recorded total capex of TRY 24,949 million. Operational capex (excluding license fees) accounted for 25.0% and 23.2% of total revenues in Q226 and H126, respectively. (1) 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. Operational Review of Turkcell Türkiye (1) Including mobile, fixed broadband, IPTV, and wholesale (MVNO&FVNO) subscribers (2) Superbox subscribers are included in mobile subscribers. (3) Churn figures represent average monthly churn figures for the respective periods. The competitive landscape continued to rationalize in the second quarter of 2026. Quarterly Mobile Number Portability (MNP) market volume fell below 2.8 million, compared with approximately 5 million in the same period last year. Against this backdrop, our total subscriber base increased by 250 thousand to 44.8 million, supported by compelling value propositions underpinned by advanced analytics capabilities. Growth was driven primarily by strong postpaid net additions, while the fiber and IPTV segments also contributed to the expansion of our subscriber base. A key milestone was that our mobile subscriber base surpassed 40 million, with 243 thousand net additions during the quarter. Postpaid subscribers, accounting for 81% of our mobile base, increased by 284 thousand in the quarter. Reflecting more rational market dynamics and our disciplined customer portfolio management, mobile churn improved to 1.6% in Q226 from 2.2% a year earlier. Prepaid subscriber losses also narrowed significantly year-on-year, supported by fewer tourist-related disconnections and easing competitive pressure. Given the prevalence of 12-month contracts in our subscriber base, pricing actions are reflected in ARPU with a time lag. Mobile ARPU (excluding M2M) declined by 3.9% year-on-year in Q226, primarily reflecting the carry-over impact of competitive dynamics in 2025 and higher-than-anticipated inflation during the quarter. With a more rational competitive environment and the gradual flow-through of the pricing actions implemented in the first half of 2026, we expect ARPU growth to strengthen progressively, with a more visible impact from Q426 onward. In areas not yet covered by our fiber infrastructure, we provide our customers with high-speed wireless connectivity through Superbox, our pioneering Fixed Wireless Access (FWA) product. As the undisputed market leader with a 74%1 market share, we distinguish ourselves in the sector by delivering superior speed and service quality backed by robust network capacity. We introduced Superbox 5G modems to our customers in the last quarter of 2025, well ahead of the official 5G launch. Designed to enhance our users' everyday digital experiences with fiber-like speeds, Superbox 5G has attracted strong customer interest. As a result, we recorded 64 thousand net additions in the quarter, marking the highest quarterly performance since the second quarter of 2020. The total Superbox subscriber base consequently surpassed 818 thousand. On the fixed side, Turkcell Fiber maintained its strong growth momentum, adding 31 thousand net subscribers. The resell fiber subscriber base also expanded, bringing the total fiber base above 2.7 million. Demand for our high-speed packages was strong during the quarter. The share of 1000 Mbps and above packages in residential fiber increased by 20 percentage points to 29%. Residential fiber ARPU recorded a 3.2% year-on-year growth, supported by pricing adjustments, the increased share of high-speed packages and contributions from our IPTV offerings. In line with our fiber deployment strategy, we accelerated fiber investment during the quarter by adding 194 thousand new homepasses, and bringing the total to 6.7 million. At the end of the second quarter, our total fiber network length reached 70.4 thousand km, covering 31 cities in Türkiye. (1) Our Superbox market share is calculated based on the Fixed Wireless (Mobile) subscribers as defined by the Information and Communication Technologies Authority (ICTA). TECHFIN Paycell revenue increased by 21.9% year-on-year in Q226, accelerating from the previous quarter, with non-group revenues accounting for 82% of total revenues. POS remained the key growth driver, with revenues increasing by 37.8% year-on-year and its share in total Paycell revenues rising by 4.7 percentage points to 41.0%. Physical POS volume doubled year-on-year, supported by our flexible digital onboarding process, while virtual POS volume increased by 61.7%, benefiting from an enhanced user experience. Mobile payment services also delivered strong growth, supported by an expanding active user base and higher transaction volumes. Total Paycell transaction volume grew by 67.3% year-on-year to TRY 63.5 billion, driven primarily by 67.0% growth in POS volume and a threefold increase in IBAN money transfer volume. Notably, non-group transaction volume increased by 95.4% year-on-year and accounted for 70.3% of total transaction volume, further demonstrating the expanding scale of Paycell’s ecosystem beyond Turkcell. The 5.5 percentage point year-on-year decline in the EBITDA margin primarily reflected the rapidly growing contribution of the POS business, which has a structurally lower margin profile. At the end of the second quarter, Financell’s loan portfolio approached TRY 10 billion with 0.6 million active customers. The company maintained its leadership in the financing sector holding a 43%1 market share by number of loans. It also increased its market share of loans below TRY 20,000 to 10.4% across the banking and financing sectors. Financell’s revenue was TRY 1,550 million, reflecting the continued impact of prevailing installment restrictions on loan portfolio growth. Its Net Interest Margin (NIM) expanded year-on-year to 7.8%, while its EBITDA margin improved to 36.1%. (1) Source: Association of Financial Institutions, as of Q126. TURKCELL GROUP SUBSCRIBERS As of June 30, 2026, the Turkcell Group had approximately 47.1 million registered subscribers. This figure is calculated by taking the number of subscribers of Turkcell Türkiye and of each of our subsidiaries. It includes the total number of mobile, fiber, ADSL, cable and IPTV subscribers of Turkcell Türkiye, BeST’s mobile subscribers and Kuzey Kıbrıs Turkcell’s mobile and fixed subscribers. (1) Subscribers to more than one service are counted separately for each service. Including mobile, fixed broadband, IPTV, and wholesale (MVNO&FVNO) subscribers. OVERVIEW OF THE MACROECONOMIC ENVIRONMENT The foreign exchange rates used in our financial reporting, along with certain macroeconomic indicators, are set out below. RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS: We believe that Adjusted EBITDA, among other key metrics, facilitates performance comparisons from period to period and management decision making. It also enables performance comparisons between companies. Adjusted EBITDA as a performance measure eliminates potential differences caused by variations in capital structures (affecting interest expense), tax positions (such as the impact of changes in effective tax rates on periods or companies) and the age and book depreciation of tangible and intangible assets (affecting relative depreciation expense and amortization expense). We also present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors and other interested parties in evaluating the performance of other mobile operators in the telecommunications industry in Europe, many of which present Adjusted EBITDA when reporting their results. Our Adjusted EBITDA definition includes Revenue, Cost of Revenue excluding depreciation and amortization, Selling and Marketing expenses, Administrative expenses and Net impairment losses on financial and contract assets, but excludes finance income and expense, other operating income and expense, investment activity income and expense, share of profit / (loss) of equity accounted investees and minority interest. Nevertheless, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation from, or as a substitute for, analysis of our results of operations, as reported under IFRS. The following table provides a reconciliation of Adjusted EBITDA, as calculated using financial data prepared in accordance with IFRS to net profit, which we believe is the most directly comparable financial measure calculated and presented in accordance with IFRS. RECONCILIATION OF ARPU: ARPU is an operational metric and the methodology for calculating performance measures such as ARPU varies substantially among operators and is not standardized across the telecommunications industry, and reported performance measures thus vary from those that may result from the use of a single methodology. Management believes this metric is helpful in assessing the development of our services over time. The following table shows the reconciliation of Turkcell Türkiye revenues to such revenues included in the ARPU calculations for Q225 and Q226. (1) Revenue from fixed corporate and wholesale business; digital business sales; tower business, and other non-subscriber-based revenues (2) Revenues from Turkcell Türkiye included in ARPU calculation comprise telecommunication services revenue, equipment revenue and revenues which are not attributed to ARPU calculation. ABOUT TURKCELL: Turkcell is a technology and telecommunications company headquartered in Türkiye, offering a unique portfolio of voice, data, and TV services over its mobile and fixed networks along with digital consumer, enterprise, and techfin services. Turkcell Group operates in three countries: Türkiye, Belarus, and Northern Cyprus. In Q226, Turkcell Group reported revenue of TRY 71.8 billion, with total assets of TRY 659.9 billion as of June 30, 2026. Listed on both the NYSE and BIST since July 2000, Turkcell remains the only dual-listed company on these exchanges. Read more at https://www.turkcell.com.tr/en-en/about-us/investor-relations. Appendix A – Tables Table: Net foreign exchange gain and loss details Table: Income tax expense details View source version on businesswire.com: https://www.businesswire.com/news/home/20260813959790/en/ 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]

Interested in Turkcell Iletisim Hizmetleri AS? Here are five stocks we like better. Turkcell’s Q1 2026 results improved across the board, with revenue up 9% year over year to more than TRY 68 billion, EBITDA rising to TRY 28 billion, and net income climbing 15% to TRY 4.6 billion. Management said growth was driven by Turkcell Turkey, Digital Business Services, and a stronger postpaid and broadband base. The company completed a nationwide 5G launch on March 31 and said it won 40% of the spectrum in the tender, giving it 25% more capacity than its closest rival. Turkcell is leaning on expanded data packages, device campaigns and network upgrades to support the transition. Subscriber and digital service momentum remained strong, including 661,000 postpaid mobile additions, 36,000 fiber net adds, and 64% growth in Digital Business Services revenue. Paycell also grew 15%, while capital spending was focused heavily on 5G, fiberization and data center expansion. Turkcell Iletisim Hizmetleri AS (NYSE:TKC) reported first-quarter 2026 revenue growth of 9% year over year, with management highlighting the company’s nationwide 5G launch, postpaid subscriber gains, and strong demand for digital business services as key drivers of the period. Chief Executive Officer Ali Taha Koç said Turkcell launched 5G nationwide on March 31, calling it a milestone that reinforced the company’s mobile leadership. He said the company secured 40% of the 5G spectrum in the tender and “25% more capacity” than its closest competitor, positioning the network for long-term demand. → Micron Investors Face a High-Stakes Moment After the Latest Rally Koç said the 5G rollout was supported by expanded data packages, smartphone campaigns and advertising featuring Shaquille O’Neal. He also cited use cases including remote driving of a Türkiye’nin Otomobili Girişim Grubu T10F over a distance of 150 kilometers and live 5G speed tests across Turkey’s 81 cities, with speeds exceeding 2,000 Mbps. For the first quarter, Turkcell’s revenue exceeded TRY 68 billion, up 9% from a year earlier. Group EBITDA rose to TRY 28 billion, with an EBITDA margin of 41.4%. Net income increased 15% year over year to TRY 4.6 billion. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? CFO Kamil Kalyon said the top-line increase was primarily driven by Turkcell Turkey, which grew 8.6% year over year, and by non-telco businesses, particularly Digital Business Services. He said Digital Business Services accounted for 12% of revenue in the quarter and benefited from managed services, while the expanded postpaid base and fixed broadband services provided a foundation for growth. Kalyon said the higher share of hardware sales from large-scale integration projects supported revenue growth but weighed on the overall margin mix. He added that disciplined cost management, favorable energy prices and reduced funding costs at Financell partially mitigated that impact. → Reading the Stripes: Is The Industrial Recession Over? Net income benefited from stronger operating performance and EBITDA generation, as well as a monetary gain tied to capitalization of the 5G license, which contributed TRY 4.2 billion year over year, according to Kalyon. He also noted higher foreign exchange expenses related to the first 5G license installment payment of $653 million in January, the recognition of future installments and increased swap transactions. Turkcell added 661,000 postpaid subscribers in the quarter, which Koç described as the company’s strongest total mobile net additions in 14 quarters. The postpaid subscriber share rose 4.6 percentage points year over year to 81%. Koç said mobile average revenue per user was broadly flat year over year, reflecting the delayed effect of competitive pricing in 2025, Turkcell’s contract-based structure and higher inflation in the first quarter. He said the company is taking a “balanced approach” to pricing as it transitions to 5G, aiming to protect its subscriber base while maintaining revenue market share leadership. In fixed broadband, Turkcell recorded 36,000 net fiber subscriber additions, including 21,000 within its own fiber footprint. Residential fiber ARPU increased 9.7% year over year, supported by upselling, pricing actions and IPTV contributions. The company added 138,000 fiber home passes in the quarter, reaching 6.5 million home passes in 30 cities, with a take-up rate of 41.8%. Digital Business Services revenue increased 64% year over year, driven by higher hardware revenue from large end-to-end corporate projects. Turkcell’s Data Center and Cloud business grew about 21%, and the company said its system integration backlog exceeded TRY 10 billion. Koç said cumulative data center investments have reached nearly EUR 600 million and that Turkcell remains on track to complete its fifth data center module in Ankara. He also said the company’s Google Cloud hyperscale partnership is progressing as planned. In Techfin, Paycell revenue increased 15%, supported by momentum in point-of-sale and Pay Later services. Active Pay Later users rose 16% to more than 3 million. Koç said financial services revenue declined primarily because of ongoing installment limitations, but added that 5G penetration could serve as a growth catalyst if the regulatory environment becomes more supportive. Paycell’s net interest margin expanded 3.6 percentage points to 8.3%, supported by lower funding costs, while cost of risk was 3.3%. Turkcell’s capital expenditures-to-sales ratio was 21.5% in the first quarter. Kalyon said 85% of operational capital spending was allocated to connectivity businesses, reflecting preparations for the 5G rollout. The company’s base station fiberization reached 47%, which management said improved network quality and 5G readiness. Data center investments accounted for approximately 5% of capital expenditures, with construction underway for the fifth module in Ankara. Kalyon said capital intensity is typically lower in the first quarter, but the company expects higher figures in upcoming quarters due to renewable energy investments and data center expansion related to Google Cloud. Turkcell ended the quarter with TRY 96 billion in cash. Kalyon said liquidity was supported by a $1 billion Murabaha syndication and remains sufficient to cover upcoming 5G payments and all debt maturities over the next four years. Net debt increased to TRY 49 billion, and net leverage rose to 0.42 times. Management said it expects leverage to remain below 1x despite 2026 being a high-investment year. During the question-and-answer session, management said Turkcell applied mobile price adjustments of 26% in January and 16% in April, using segment-based and customer-specific offers supported by AI tools rather than broad mass pricing changes. On fixed services, Turkcell implemented price increases of about 12% on shared infrastructure and about 18% on fiber products in February. Asked about ARPU trends, Koç said Turkcell’s goal is to maintain healthy ARPU growth aligned with macroeconomic indicators, while noting that inflation affects reported ARPU with a lag because of 12-month contracts. He said dynamic pricing and migration to higher-value segments remain central to the company’s strategy. Kalyon said it was too early to discuss any revision to full-year guidance, citing uncertainty around economic conditions, inflation and the duration of current geopolitical conflict. He said management would need to review subsequent quarterly results before assessing whether guidance should change. Turkcell Iletisim Hizmetleri AS, traded on the NYSE under the symbol TKC, is a leading integrated telecommunications and technology company headquartered in Istanbul, Turkey. Since its founding in 1994 as the country's first GSM operator, Turkcell has expanded its footprint to offer a comprehensive suite of mobile voice, messaging and data services to millions of subscribers. The company has made significant investments in nationwide 4.5G and 5G network infrastructure to deliver high-speed connectivity across both urban centers and rural regions. In addition to its core mobile offerings, Turkcell provides fixed broadband and fiber-optic services tailored to consumer and enterprise customers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Turkcell Iletisim Hizmetleri AS Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Revenue: Increased by 9% year-on-year, exceeding TRY68 billion. Group EBITDA: Reached TRY28 billion with a margin of 41.4%. Net Income: Increased by 15% to TRY4.6 billion. Postpaid Net Additions: 661,000 additions, the strongest in the past 14 quarters. Residential Fiber ARPU: Increased by 9.7% year-on-year. Digital Business Services Revenue: Increased by 64% year-on-year. Paycell Revenue: Increased by 15%. CapEx to Sales Ratio: Stood at 21.5%. Cash Position: Ended the quarter at TRY96 billion. Net Debt: Increased to TRY49 billion. Net Leverage Ratio: Rose to 0.42x. Warning! GuruFocus has detected 6 Warning Signs with TKC. Is TKC fairly valued? Test your thesis with our free DCF calculator. Release Date: May 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Turkcell Iletisim Hizmetleri AS (NYSE:TKC) successfully launched 5G nationwide, reinforcing its leadership in mobile technology. The company secured 25% more 5G spectrum capacity than its closest competitor, positioning it for long-term demand. Revenues grew by 9% year-on-year, exceeding TRY68 billion, driven by strong momentum in digital business services and subscriber acquisition. Group EBITDA increased to TRY28 billion with a margin of 41.4%, and net income rose by 15% to TRY4.6 billion. Turkcell's digital business services and Paycell segments showed robust growth, with digital business services revenue increasing by 64% year-on-year. Consumer revenue growth was slower at 3%, compared to the overall high single-digit revenue growth. Mobile ARPU remained broadly flat year-on-year due to competitive pricing and inflation impacts. The company faced increased FX expenses due to the first installment payment for the 5G license and higher swap transactions. Net debt increased to TRY49 billion, and the net leverage ratio rose to 0.42x due to high investment activities. The effective tax rate increased due to the absence of inflation accounting in statutory financials, impacting deferred tax. Q: Can you explain the slower consumer revenue growth compared to overall revenue growth, and discuss any pricing actions in the mobile segment? Also, how have higher fuel prices impacted your operating costs? A: We are maintaining a segment-based dynamic pricing strategy using AI-powered tools, with a 26% price adjustment in January and 16% in April for mobile. On the fixed side, we implemented a 12% price increase on shared infrastructure and 18% on fiber products. The slower consumer growth is offset by strong performance in Digital Business Services and Paycell. Regarding fuel prices, we are monitoring the situation closely, but it's too early to estimate the future impact. Q: Could you elaborate on the ARPU contraction and expectations for the coming quarters? Also, what are your expectations for TOGG's contribution and the effective tax rate? A: Our ARPU growth aligns with macroeconomic indicators, but strategic churn management and pricing actions have temporarily restricted growth. We aim for ARPU growth that tracks inflation, though unexpected inflation shifts could impact this. TOGG's net income improved due to higher vehicle prices and stable Euro TRY parity, and we expect continued momentum. The effective tax rate increased due to the termination of inflation accounting, impacting deferred tax. Q: Do you anticipate any upward revision to your revenue growth guidance after the 9% growth in Q1? A: It's too early to revise guidance. We need to assess economic conditions and the duration of the conflict, which could influence inflation. We may consider revising guidance after Q2 or Q3 results. Q: How effective was your recent promotional campaign, and did it have a positive impact on your activities across Turkey? A: The campaign was well-received, resonating with consumers and effectively explaining 5G technology. We expect positive impacts from ongoing campaigns and the introduction of new products like the 5G Superbox. Q: What are your plans for CapEx management and investments in the coming quarters? A: Our CapEx to sales ratio was 21.5% in Q1, with significant investments in 5G rollout and fiber expansion. We expect higher CapEx in upcoming quarters, driven by renewable energy and data center expansions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Strong Growth Supported by Our Strategic Focus Areas ISTANBUL, May 11, 2026--(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 March 31, 2026, refer to the same item as of March 31, 2025. For further details, please refer to our consolidated financial statements and notes as of and for March 31, 2026, accessible 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 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 March 31, 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 March 31, 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 March 31, 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 HIGHLIGHTS The Annual General Assembly Meeting for the 2025 fiscal year took place on May 7, 2026. For the results, please click here. Consistent with the Company’s uninterrupted dividend distribution practice since 2016, the General Assembly approved a gross dividend distribution of TRY 8.8 billion from 2025 distributable income, corresponding to a gross dividend of TRY 4.00 (net TRY 3.40) per ordinary share with a nominal value of TRY 1. The dividend will be paid in cash on December 9, 2026. As of March 31, 5G has gone live in Türkiye, marking a new phase in the country’s digital transformation. Supported by its superior spectrum capacity and network capabilities, Turkcell has begun rolling out high-speed 5G services across 81 provinces. To support the Company’s investments in 5G and other next-generation communication technologies, a USD 1 billion Murabaha syndicated loan was secured in March. With its competitive 7-year maturity, this transaction also represents one of the largest corporate Murabaha syndications ever executed by a Turkish company, marking an important milestone for both Turkcell and the broader Turkish corporate financing market. We believe that the strong participation from international lenders underscores their confidence in our strong balance sheet and resilient financial performance. Strong growth driven by corporate revenues and Paycell; Steady top-line growth of 8.9% YoY to TRY 68.4 billion, driven by strong corporate performance. Increased hardware sales, alongside continued growth in the Data Center & Cloud business were the main contributors, while Paycell continued to support Group revenues. EBITDA1 increased by 3.2%, leading to an EBITDA margin of 41.4%; EBIT2 was down by 2.9% due to increased investments, resulting in an EBIT margin of 15.3%. Despite an increased tax burden, net income grew by 14.9% to TRY 4.6 billion, primarily driven by higher monetary gains from capitalization of the 5G license and a positive contribution from equity accounted investees. Net leverage3 level was at 0.42x; net short FX position increased to US$1.2 billion mainly due to the 5G tender, reflecting a selective hedging approach considering prevailing hedging costs. Medium-term net FX target range – USD1.5bn to +USD1.5bn. Solid subscriber performance with a sustained postpaid and fiber focus 661 thousand mobile postpaid net additions, postpaid subscriber base share at 81% 36 thousand fiber net additions including resell operations Accelerated Superbox subscriber acquisition with 38 thousand net additions 138 thousand new fiber homepasses in Q126, bringing total to 6.5 million Resilient residential fiber ARPU growth of 9.7% (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 The first quarter of 2026 marked a historic milestone in Türkiye’s digital transformation journey. At Turkcell, we proudly introduced Türkiye to 5G in Turkcell quality, backed by our 32 years of technology leadership, strong infrastructure investments, and innovative vision. With the launch of 5G, we not only advanced communication standards but also paved the way for a next-generation digital infrastructure. This infrastructure will enhance our country’s competitiveness across many sectors, from industry to healthcare and from education to transportation. With the widest frequency bandwidth, our high-capacity network architecture, strong fiber infrastructure, and data centers, we made a strong start to this new era. Following the successful completion of our 5G preparation and tender processes, we launched a large-scale advertising campaign with a world-renowned celebrity. The strong interest in our "5-fold" campaign, launched to celebrate the 5G era, within a very short period clearly demonstrated our subscribers’ excitement for the next-generation connectivity experience. It also showed that the 5G experience we offer resonates strongly across all segments of society. This new era, ushered in by 5G, has brought to the forefront not only our strong technological infrastructure but also our long-term investment vision and financial flexibility. While we continue to pursue investments that will shape Türkiye’s digital future with determination, our ability to access international financing sources has been a key enabler of our strategy. The USD 1 billion Murabaha syndicated loan we secured to support investments in 5G transformation and other next-generation connectivity technologies, once again confirmed global investors’ confidence in our Company’s vision and strong financial structure. Moreover, this transaction was recorded as the largest corporate Murabaha syndicated loan ever executed by a Turkish company. We completed the first quarter with strong financial results. Our consolidated revenues reached TRY 68.4 billion, increasing by 8.9% year-on-year. Digital Business Services (DBS) and Paycell continued to outperform the Group. Consolidated EBITDA¹ increased by 3.2% to reach TRY 28.3 billion, while the EBITDA margin remained healthy at 41.4%. Our net profit increased by 14.9% to TRY 4.6 billion. Leadership in digital transformation: 5G-enabled solutions and new speed standards We experienced a quarter in which market dynamics rationalized compared with previous quarters. Thanks to our customer-focused approach, strong infrastructure, and innovative offerings, we closed the first quarter with positive results in Mobile Number Portability (MNP). Our total mobile subscriber base also expanded with a net addition of 655 thousand subscribers. Our postpaid subscriber base, which is at the core of our sustainable value creation strategy, maintained its steady growth with a net addition of 661 thousand, reaching a postpaid subscriber share of 81%. Supported by the increase in the postpaid subscriber share and our strong performance in upselling subscribers, mobile ARPU (excluding M2M) remained resilient. This was despite limited pricing adjustments in an intensely competitive environment of the previous year and persistently high inflation. With Superbox 5G, we launched the era of fiber-speed internet in regions not yet covered by our fiber infrastructure, supported by ultra-powerful Wi-Fi 7 modem capability. With this momentum, our Superbox subscriber base reached 754 thousand, with a net addition of 38 thousand. In addition, with our portable "Superbox GO" modem, we began offering our customers a truly location and cable independent, flexible 5G connectivity experience. By declaring 2026 as the "Year of Speed", we also redefined the rules of the game on the fixed side. With our Superonline UltraFiber packages, supported by Wi-Fi 7 technology for the first time in Türkiye, we became the first and only operator to offer home internet speeds of up to 10 Gbps to our subscribers. In the first quarter of the year, we achieved a total of 36 thousand net fiber subscriber additions, including our resell portfolio, of which 21 thousand came from Turkcell fiber. In line with our fiber-focused profitable growth strategy, our DSL and cable subscriber base continued to decline. Supported by sustained demand for high-speed packages and our strong focus, the share of our fiber subscribers with speeds of 1,000 Mbps and above increased to approximately 20% of our total residential fiber subscribers. Driven by our strategy of migrating subscribers to higher-tier packages, pricing adjustments, and the contribution of our IPTV service, residential fiber ARPU grew by 9.7% year-on-year. With our continued fixed infrastructure investments in the first quarter, we expanded our Turkcell fiber footprint by an additional 138 thousand homepasses, bringing the total to 6.5 million. Our take-up rate reached 41.8%. Consistent growth in our strategic focus areas Paycell, which is the main growth engine of our Techfin business, continued to grow above the Group average despite a high base effect. Paycell revenues increased by 15%, driven by strong momentum in the POS and mobile payment segments. On the other hand, Financell’s revenues declined as ongoing installment limitations constrained growth in new loan volumes. However, its Net Interest Margin (NIM) expanded significantly to 8.3%, up by 3.6 points compared with the same period last year. Total revenue growth in the Techfin segment was at 4%. DBS made a very strong start to 2026. Rising hardware revenues, supported by increasing corporate projects, together with the 21% growth in our data center and cloud business, drove a 64% year-on-year increase in DBS revenues. Sustainability vision reinforced by international achievements By positioning sustainability among our strategic priorities, we carefully consider the environmental and social impact of all our business processes. We move forward with the goal of reducing our environmental footprint and increasing efficiency through our investments in this area. In line with our sustainability targets, we are increasing our capacity by investing in our own solar power plants, while also evaluating inorganic growth opportunities through strategic acquisitions. We completed the acquisition of a 12.1 MW solar power plant in Mersin in April. Following this acquisition, our total active solar energy capacity reached 74.4 MW. Another development that boosted our motivation in our sustainability efforts was the global recognition of our environmental performance, as reflected in the "Global A" score we received under the CDP Climate Change Program. This quarter, we also published our 2025 sustainability report in compliance with TSRS. Within the scope of the report, we addressed climate-related risks and opportunities in a holistic manner. We also expanded the scope of our environmental performance by reporting our water footprint for the first time this year. We believe that these efforts have reinforced our alignment with national regulations and global climate targets, while also strengthening our engagement with our stakeholders. Turkcell’s signature on global platforms We successfully represent our country and our sector on international platforms. At the Mobile World Congress (MWC 2026), the model we developed with industry stakeholders to block international fraudulent calls, which has prevented millions of fraud attempts on our network to date was selected by the GSMA as a best practice. In line with our vision of driving innovation in the sector, we also entered into strategic partnerships to carry out R&D activities on 6G and next-generation network technologies at MWC 2026. As Türkiye’s Turkcell, I sincerely thank my dedicated colleagues who contribute to every step we take with the motivation to move our country forward, as well as our Board of Directors, shareholders, and business partners for their support. (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 FINANCIAL AND OPERATIONAL REVIEW OF FULL YEAR 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 is equal to EBITDA minus depreciation and amortization expenses. Revenue of the Group grew by 8.9% year-on-year, reaching TRY68,377 million (TRY62,767 million) in Q126. This growth was primarily driven by the robust performance of Turkcell Türkiye, mainly attributable to corporate revenues. In the first quarter, Turkcell Türkiye revenues, representing 90% of Group top-line, increased by 8.6% to TRY61,877 million (TRY56,957 million). - Corporate revenues recorded solid growth of 34%, largely driven by Digital Business Services, which delivered 64% revenue growth thanks to higher hardware revenues through successful execution of large-scale projects. Data Center & Cloud revenues also posted a remarkable 21.0% year-on-year growth. - Consumer segment recorded a more moderate growth of 2.6%. This performance was underpinned by the expansion of our postpaid subscriber base and strong fixed ARPU performance. Conversely, mobile ARPU (excluding M2M) remained broadly flat this quarter, reflecting the continued impact of last year’s intense competitive pricing environment and persistently high inflation. - Wholesale revenues recorded a growth of 7.9% to TRY2,535 million (TRY2,350 million). Techfin segment revenues, accounting for 5% of Group revenues, grew by 4.0% to TRY3,740 million (TRY3,594 million). The driver of this growth was Paycell business. Please refer to the Techfin section for details. Other segment revenues, comprising 4% of Group revenues, which mostly includes Turkcell International revenues, energy business revenues and non-group call center revenues, rose 24.6% to TRY2,760 million (TRY2,215 million). Cost of revenue (excluding depreciation and amortization) increased to 47.1% (45.0%) as a percentage of revenues for the first quarter of 2026. This was driven mainly by the increase in cost of goods sold (3.7pp), radio expenses (0.4pp), personnel expenses (0.3pp), and other cost items (0.2pp), despite the decline in funding costs (0.8pp), energy costs (0.7pp), treasury share (0.7pp) and interconnection costs (0.4pp) as a percentage of revenues. Administrative expenses increased slightly to 4.4% (4.2%) as a percentage of revenues this quarter, primarily driven by personnel expenses. Selling and marketing expenses as a percentage of revenue remained broadly stable at 6.6% (6.7%), despite higher 5G-related marketing expense. The increase in marketing expenses was offset by the slower growth in personnel expenses relative to top-line expansion. Net impairment losses on financial and contract assets were at 0.5% (0.4%) as a percentage of revenues in Q126. EBITDA1 increased by 3.2% year-on-year in Q126 leading to an EBITDA margin of 41.4% (43.7%). - Turkcell Türkiye EBITDA was up by 1.3% to TRY26,282 million (TRY25,957 million), resulting in an EBITDA margin of 42.5% (45.6%). - Techfin segment EBITDA increased by 30.3% to TRY1,223 million (TRY938 million), representing a 6.6pp robust expansion in EBITDA margin to 32.7% (26.1%). This favorable margin performance was primarily attributable to Financell’s improved funding costs through FX loan utilization. However, the strong momentum of the Paycell POS business limited the overall Techfin margin expansion. - The EBITDA of Other was at TRY795 million (TRY533 million). Depreciation and amortization expenses increased by 7.1%, amounting to TRY17,861 million (TRY16,680 million). Net finance income reached TRY1,569 million (TRY469 million cost) in Q126. This strong improvement was attributable to higher monetary gains arising from the capitalization of 5G license. Excluding monetary gains, net finance costs rose due to a higher net short FX position led by increased foreign currency liabilities linked to 5G. See Appendix A for details of net foreign exchange gain and loss. Net Other expenses were at TRY427 million (TRY588 million) in Q126. Income tax expense increased to TRY7,252 million (TRY4,528 million). Please recall that inflation accounting was discontinued in the 2025 statutory financial statements, and its impact became visible in our financials starting from Q4 2025. This continued to be the main driver of the higher income tax expense in Q1 2026. In addition, only limited fixed asset revaluation was performed during the period, which provided a limited offset against the adverse tax impact. This increase in the tax expense during the quarter was primarily attributable to deferred tax expense, while the impact of cash tax payments remained limited. Net income of the Group increased by 14.9% to TRY4,634 million (TRY4,033 million) in Q126. This improvement resulted from substantial monetary gain registered in the first quarter along with improved contribution from TOGG. Profit before income tax grew by 38.8% year on year to TRY11,887 million (TRY8,561 million), driven by strong operational performance and diciplined balance sheet management. (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. Total cash & debt: Consolidated cash as of March 31, 2026 decreased to TRY95,773 million from TRY101,048 million as of December 31, 2025. This decline was primarily attributable to the first installment of the 5G license payment, including VAT, totaling USD653 million, together with the TRY3.2 billion Wireless Usage Fee, which is paid in the first quarter of each year, as well as bonus payments to employees. 57% of our cash is in US$, 20% in EUR, and 23% in TRY. Excluding FX swap transactions, 71% of our cash is in US$ and 29% in EUR. Alongside these sizeable cash outflows, we reinforced our liquidity position through a USD 1 billion Murabaha syndicated loan, further strengthening our financial flexibility and balance sheet resilience. Accordingly, consolidated debt as of March 31, 2026, increased to TRY206,347 million from TRY174,578 million as of December 31, 2025. Note that TRY16,230 million of our consolidated debt comprises lease obligations. After hedging transactions, 64% of our consolidated debt is in US$, 24% in EUR, 5% in CNY, and 7% in TRY. Due to cash disbursements, as of March 31, 2026, net debt1 increased to TRY48,827 million from TRY16,383 million as of December 31, 2025, with a net debt to EBITDA ratio of 0.42x. We continued to manage the Group’s net FX position proactively, taking into account prevailing hedging costs and the relatively stable FX environment. Accordingly, we maintained our medium-term net FX target range of between minus USD1.5 billion and plus USD1.5 billion. As of quarter-end, the Group’s short net FX position stood at US$1.2 billion, including the hedging portfolio and advance payments. Capital expenditures, including non-operational items, increased to TRY76,583 million in Q126, mainly driven by the 5G license amounting to USD1.2 billion (excluding VAT). Operational capital expenditures (excluding license fees) at the Group level were at 21.5% of total revenues. (1) 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. Operational Review of Turkcell Türkiye (1) Including mobile, fixed broadband, IPTV, and wholesale (MVNO&FVNO) subscribers(2) Superbox subscribers are included in mobile subscribers.(3) Churn figures represent average monthly churn figures for the respective periods. Our total subscriber base expanded by 642 thousand in Q126, reaching 44.5 million thanks to segment-based offers that provide customers with tailored alternatives. In the postpaid segment, net additions reached 661 thousand, leading to our strongest total mobile net additions over the past 14 quarters. This brought the share of postpaid subscribers in the total mobile base to 81%, exceeding 32 million. We observed an improvement in mobile churn, which declined by 1.1pp compared with Q425 and by 0.1pp versus Q125, thanks to effective churn management and a relatively rationalized market environment. In the prepaid segment, we saw a notable moderation in net subscriber losses this quarter unlike in previous quarters, supported by our customer-centric tariffs and fewer tourist-related disconnections. Mobile ARPU (excluding M2M) remained broadly flat, declining by 0.4% year-on-year, mainly due to the lagged impact of last year’s record-high competitive environment and persistently elevated inflation. On the fixed side, our subscriber base declined slightly in Q1 2026, recording a net loss of 4 thousand, mainly due to our reduced focus on the ADSL segment. In the fiber segment, we maintained strong momentum in Turkcell fiber, achieving 21 thousand net additions in the quarter and 111 thousand on a yearly basis, supported by continued demand for high-speed connectivity. Residential fiber ARPU increased by 9.7% year-on-year, mainly driven by active upselling and pricing actions, and the growing contribution of our IPTV offering. As part of our "Technology Leadership in Türkiye" strategy, we launched our "UltraFiber" packages in March, offering ultra-high-speed connectivity to households for the first time in Türkiye with download speeds of 2, 5, and 10 Gbps. In line with our fiber-focused strategy, we continued expanding our infrastructure footprint by adding 138 thousand new homepasses, reaching a total of 6.5 million, with the take-up rate at 41.8%. TECHFIN Paycell continued its steady growth trajectory as the primary performance contributor in the techfin segment, recording a 15.3% year-on-year increase in revenues. POS solutions and mobile payments were the main drivers of this performance in this quarter. Among all business lines, POS solutions delivered the strongest growth, as revenues grew by 37% year-on-year. This robust revenue performance was supported by broadening transaction volumes, particularly in physical POS, which recorded 150.4% year-over-year volume expansion. Furthermore, non-group revenues continued to gain prominence, with their share of total revenues increasing to 83%, mainly driven by rising number of users. As the POS business accounted for a larger share of the revenue mix, EBITDA margin declined by 7.4 percentage points to 31.8%. Total transaction volume reached TRY55.5 billion, marking a 46.4% year-on-year increase. In addition to strong POS performance, Pay Later and QR Code contributed to the volume growth during the quarter. Pay Later strategic Services active users1 reached 3.3 million as of Q126. Financell’s revenues contracted on a yearly basis due to ongoing installment limitations. The EBITDA margin improved to 39.1%, driven by lower funding costs while net income reached TRY149.5 million in this quarter. Financell maintained its leadership position in financing sector holding a 44% market share2 by number loans. The company also captured a 9.9% market share in loans below TRY20,000 in banking and financing sector combined. Financell’s loan portfolio reached TRY8.4 billion as of Q126, with 0.6 million active customers. There is significant market potential for Financell should regulatory conditions evolve favorably in line with macroeconomic dynamics, including potential increases in loan limits, which could in turn support Financell’s revenue growth. (1) Unique customers who have utilized the "Pay Later" feature for digital service payments—including App Store, Google Play, and QR transactions—at least once within the preceding three-month period(2) Source: Association of Financial Institutions, as of Q425 TURKCELL GROUP SUBSCRIBERS As of March 31, 2026, the Turkcell Group had approximately 46.7 million registered subscribers. This figure is calculated by taking the number of subscribers of Turkcell Türkiye and of each of our subsidiaries. It includes the total number of mobile, fiber, ADSL, cable and IPTV subscribers of Turkcell Türkiye, BeST’s mobile subscribers and Kuzey Kıbrıs Turkcell’s mobile and fixed subscribers. (1) Subscribers to more than one service are counted separately for each service. Including mobile, fixed broadband, IPTV, and wholesale (MVNO&FVNO) subscribers. OVERVIEW OF THE MACROECONOMIC ENVIRONMENT The foreign exchange rates used in our financial reporting, along with certain macroeconomic indicators, are set out below. RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS: We believe that Adjusted EBITDA, among other key metrics, facilitates performance comparisons from period to period and management decision making. It also enables performance comparisons between companies. Adjusted EBITDA as a performance measure eliminates potential differences caused by variations in capital structures (affecting interest expense), tax positions (such as the impact of changes in effective tax rates on periods or companies) and the age and book depreciation of tangible and intangible assets (affecting relative depreciation expense and amortization expense). We also present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors and other interested parties in evaluating the performance of other mobile operators in the telecommunications industry in Europe, many of which present Adjusted EBITDA when reporting their results. Our Adjusted EBITDA definition includes Revenue, Cost of Revenue excluding depreciation and amortization, Selling and Marketing expenses, Administrative expenses and Net impairment losses on financial and contract assets, but excludes finance income and expense, other operating income and expense, investment activity income and expense, share of profit of equity accounted investees and minority interest. Nevertheless, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation from, or as a substitute for, analysis of our results of operations, as reported under IFRS. The following table provides a reconciliation of Adjusted EBITDA, as calculated using financial data prepared in accordance with IFRS to net profit, which we believe is the most directly comparable financial measure calculated and presented in accordance with IFRS. RECONCILIATION OF ARPU: ARPU is an operational metric and the methodology for calculating performance measures such as ARPU varies substantially among operators and is not standardized across the telecommunications industry, and reported performance measures thus vary from those that may result from the use of a single methodology. Management believes this metric is helpful in assessing the development of our services over time. The following table shows the reconciliation of Turkcell Türkiye revenues to such revenues included in the ARPU calculations for Q125 and Q126. (1) Revenue from fixed corporate and wholesale business; digital business sales; tower business, and other non-subscriber-based revenues(2) Revenues from Turkcell Türkiye included in ARPU calculation comprise telecommunication services revenue, equipment revenue and revenues which are not attributed to ARPU calculation. ABOUT TURKCELL: Turkcell, headquartered in Türkiye, is a leading technology and telecommunications company offering a diverse portfolio of voice, data, and IPTV services across its mobile and fixed networks, alongside digital consumer, enterprise, and techfin solutions. The Turkcell Group operates in three countries: Türkiye, Belarus, and Northern Cyprus. In Q126, Turkcell Group reported revenue of TRY68.4 billion, with total assets of TRY618.2 billion as of March 31, 2026. Listed on both the NYSE and BIST since July 2000, Turkcell remains the only dual-listed company on these exchanges. Read more at www.turkcell.com.tr. Appendix A – Tables Table: Net foreign exchange gain and loss details Table: Income tax expense details View source version on businesswire.com: https://www.businesswire.com/news/home/20260511118095/en/ 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]