Turkcell’s Earnings Call: Strong Growth Amid Challenges

Turkcell Iletisim Hizmetleri As ((TKC)) has held its Q3 earnings call. Read on for the main highlights of the call.

Turkcell’s Earnings Call Highlights Strong Growth Amidst Challenges

Turkcell’s recent earnings call reflected a robust operational and financial performance, with significant revenue growth and strategic advancements in 5G spectrum acquisition and digital services expansion. Despite these achievements, the company acknowledged challenges such as intense market competition and monetary losses.

Strong Revenue Growth

Turkcell reported an impressive 11% increase in revenue, reaching TRY 60 billion, primarily driven by its core telecommunication services. The Group’s EBITDA also saw an 11% rise, amounting to TRY 26 billion, with a solid margin of 43.9%.

Net Income Increase

The company’s net income from continuing operations rose by 31.8% to TRY 5.4 billion. This growth reflects Turkcell’s prudent financial management and strategic focus on core operations.

Subscriber Base Expansion

Turkcell successfully expanded its subscriber base by adding 569,000 net postpaid subscribers, bringing its total mobile subscriber count to over 39 million.

5G Spectrum Achievement

In a strategic milestone, Turkcell secured 160 megahertz of spectrum for its 5G rollout, the maximum available to a single operator, positioning the company strongly for future technological advancements.

Data Center and Cloud Revenue Surge

Turkcell’s data center and cloud services experienced a 51% year-on-year revenue surge, supported by an 8.4 megawatt expansion in IT capacity.

Techfin Revenue Growth

The techfin ecosystem, particularly Paycell, demonstrated robust growth with a 20% year-on-year increase, driven by a 42% rise in revenues.

Intense Market Competition

The mobile market’s competitive landscape remained challenging, with a mobile churn rate of 2.6% due to high activity in the number portability market.

Monetary Loss Impact

Turkcell recorded monetary losses attributed to the sale of its Ukraine business and inflation rate changes, impacting its financial bottom line.

Operational Challenges in TOGG

TOGG faced market challenges, although there was a moderate improvement in performance during the quarter, indicating potential for future recovery.

Forward-Looking Guidance

Looking ahead, Turkcell has upgraded its 2025 guidance, anticipating approximately 10% revenue growth and an EBITDA margin target between 42% and 43%. The company is preparing for its 5G commercial launch in April 2026, with significant investments in renewable energy and digital services.

In summary, Turkcell’s earnings call highlighted a strong financial performance and strategic advancements, despite facing market competition and monetary challenges. The company’s forward-looking guidance suggests continued growth and innovation, particularly in the 5G and digital services sectors.