Turk Telekomunikasyo (TRKNF) Q2 2026 Earnings Report

The call presents a balanced picture: solid top‑line growth (9% consolidated, 6% ex‑IFRIC), strong fixed broadband ARPU and subscriber momentum, successful 5G commercialization and ambitious investment in fiber and data centers. These positives are tempered by near‑term financial impacts from heavy 5G/fiber CapEx — notably a steep drop in free cash flow, higher leverage (net debt/EBITDA rising to 1.0x), higher reported financial expenses and a YoY decline in mobile ARPU and net profit. Management expects many investment‑related pressures to normalize and anticipates H2 revenue acceleration and recovery in ARPU as pricing and 5G monetization take effect.

Management reiterated 2026 guidance: they expect to finish the year with 8% real operational revenue growth, an EBITDA margin within the 41–42% guidance range (H1 margin 41.3%), and full‑year CapEx intensity at the upper end of guidance ~34% (H1 CapEx intensity 29.1%); Q2 reported consolidated revenues of TRY 73bn (+9% y/y, excl. IFRIC12 >TRY 66bn, +6% y/y), EBITDA TRY 29.4bn (40.4%, 43.3% excl. IFRIC12), net income TRY 6bn, Q2 CapEx (ex‑solar & license) TRY 23bn with a CapEx split fixed 51% / mobile 23% / IT 15% / other 11%, and net debt/EBITDA ~1x (flat Q‑on‑Q, vs 0.6x YE‑2025); management expects H2 acceleration from recent pricing actions (fixed broadband ARPU +15% y/y, package speed +57% to 124 Mbps; mobile price increases in Jan/Apr/Jul), ICT project wins, moderating one‑off commercial costs (~TRY 1bn in Q2) and lower hedging expenses, and anticipates leverage to ease after remaining 5G/concession payments.