Turkcell (TCELL) Investor Presentation summary

Strategic positioning and market overview

• Holds leading position in Turkey's mobile market with 38.2 million subscribers and 5.5 million paid digital service users.

• Strong presence in fixed broadband with 3.1 million subscribers and 5.8 million fiber homepass.

• Diversified business model across telecom, digital services, business solutions, and techfin, minimizing economic cycle risks.

• High smartphone penetration (80%) and rising digital payment adoption in a young, tech-savvy population.

• Listed on NYSE and Borsa Istanbul with a $6.4 billion market cap and 54% free float.

Financial performance and guidance

• Q1 2024 revenue reached 30.8 billion TL, up 11.8% YoY; EBITDA grew 23.2% to 12.8 billion TL, with margin rising to 41.4%.

• Net income for Q1 2024 was 2.6 billion TL, a significant turnaround from a loss in Q1 2023.

• Upward revision of 2024 guidance: revenue growth now expected at low double digits, EBITDA margin ~42%, and capex/sales ~23%.

• Techfin segment saw 43.7% YoY revenue growth, driven by Financell (53.5%) and Paycell (33.2%).

• Maintains a solid balance sheet with net debt/EBITDA at 0.6x and strong liquidity management.

Operational highlights

• Added 333K total subscribers in Q1 2024, with 472K postpaid net adds and 48K fiber net adds.

• Mobile ARPU grew 17.1% YoY; fiber residential ARPU up 13.7% YoY.

• IPTV subscribers reached 1.45 million, with TV+ leading the market and 67% penetration in residential fiber.

• Data usage per 4G/4.5G user continues to rise, supporting digital service growth.

• International operations in Belarus and TRNC delivered revenue and EBITDA growth, with high 4G data usage.