Turkcell (TCELL) Q1 2025 earnings summary

Executive summary

• Achieved revenue of TRY 48 billion, up 12.7% year-over-year, and EBITDA of TRY 21 billion, up 19% year-over-year, with a margin of 43.7%, the highest Q1 margin in a decade.

• Net profit reached TRY 3.08 billion, reflecting a 15.3% decrease compared to Q1 2024.

• Growth driven by expanding postpaid and fiber base, ARPU increases, and strong performance in Techfin and digital business services.

• Celebrated 25th anniversary of IPO, remaining the first and only dual-listed company.

• Segment reclassification and reporting changes followed the sale of Ukrainian assets.

Financial highlights

• Group revenues grew by 12.7% year-over-year to TRY 47.96 billion, mainly driven by Turkcell Türkiye's 11.6% growth.

• EBITDA increased to TRY 20.96 billion, up 19% year-over-year; EBITDA margin at 43.7%.

• Techfin segment revenue up 31.5% year-over-year; data center and cloud revenues surged 47.5%.

• CapEx to sales ratio at 20.2%, with 24% of Q1 CapEx allocated to data centers.

• Total cash position increased to TRY 108.4 billion; gross debt at TRY 151 billion after Eurobond issuance.

Outlook and guidance

• Sticking to 2025 guidance despite strong Q1; potential revision considered if macro conditions change.

• Year-end CPI assumption revised from 30.5% to 35% due to current developments.

• 5G spectrum auction expected in 2025, with commercial launch in 2026; company prepared for rollout and base station fiberization targeted at 48% in 2025.

• Solar renewable investment aiming for 300 MW installed capacity by 2026.