Türk Telekomünikasyon (TTKOM) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong operational and financial performance, with revenue reaching TL 64.9 billion (up 8.7% YoY) and net profit at TL 10.5 billion (up 56% YoY), despite inflationary and geopolitical pressures.

• Fixed line concession was renewed for 24 years to 2050 for $2.5 billion, and nationwide 5G was launched, securing the highest spectrum capacity per customer in Türkiye.

• Total subscribers reached 57.2 million, with strong net additions in mobile and continued leadership in fixed broadband.

• Major investments in 5G and fiber, with capital expenditures surging to TL 17 billion, focused on network expansion.

• Free cash flow (excluding concession/5G payments) was TL 1.7 billion, down from the prior year due to higher CapEx and one-off working capital effects.

Financial highlights

• Consolidated revenues rose 9% YoY to TL 64.9 billion; revenue excluding IFRIC 12/IFRS 12 grew 5.9%-6%.

• EBITDA grew to TL 27.4 billion, with a margin expansion to 42.3% (up 300bps YoY).

• Net profit increased 56% YoY to TL 10.5 billion, with net income margin improving to 16.1%.

• CapEx (excluding solar and license) was TL 17 billion, mainly for 5G and fiber investments.

• Net leverage increased to 0.99x (including concession/5G payments), or 0.60x excluding these payments.

Outlook and guidance

• Full year 2026 guidance maintained: revenue growth 8-9%, EBITDA margin 41-42%, and adjusted CapEx intensity 33-34%.

• Operational revenue growth expected to accelerate in the remainder of 2026.

• CapEx guidance remains, but management is monitoring FX and geopolitical risks.

• ARPU growth in fixed broadband expected to remain robust; mobile ARPU growth to recover in H2 2026 after price adjustments.