Turkcell (TCELL) Investor Presentation summary

Market position and strategic overview

• Holds leading mobile market share in Turkey with 38.7 million subscribers and 99%+ coverage, and is a top challenger in fixed broadband with 3.2 million subscribers and 5.9 million fiber homepass.

• Diversified into digital services, business solutions, and techfin, with 5 million paid digital users and 7.6 million active Paycell users.

• Listed on NYSE and Borsa Istanbul, with a $5.8 billion market cap and 54% free float.

• Operates in a young, tech-savvy market with high smartphone and social media penetration, and significant digital transformation trends.

• Business model is diversified to minimize economic cycle risks, with telecom, digital, business, and techfin services contributing to revenue.

Financial and operational performance (Q3 2024)

• Achieved 6.9% YoY revenue growth to 40.2 billion TL, with EBITDA up 10.4% to 17.8 billion TL and a margin of 44.2%.

• Net income reached 14.3 billion TL, with robust subscriber additions: +515K postpaid, +47K fiber, and +322K total net adds.

• Mobile ARPU grew 6.9% YoY, and fiber residential ARPU rose 15.1% YoY, both adjusted for inflation.

• Maintained strong operational KPIs: mobile churn at 1.5%, average data usage at 19.5 GB/user, and fiber take-up rate at 42.7%.

• Updated 2024 guidance: revenue growth ~7%, EBITDA margin ~42%, and operational capex/sales ~23%.

Business segments and growth drivers

• Digital services revenue up 4% YoY, with 5 million paid users; TV+ IPTV subscribers at 1.5 million.

• Digital business services revenue stable, but data center and cloud revenue surged 43% YoY.

• Techfin (Paycell and Financell) delivered 19.6% and 38.1% YoY revenue growth, respectively, with Paycell transaction volume up 46% YoY.

• Paycell reached 7.6 million active users and 27 billion TL in Q3 transaction volume; Financell loan portfolio at 6.3 billion TL.

• International operations in Belarus showed strong revenue and EBITDA margin growth, with 1.2 million active subscribers.