Turkcell Communications Services Inc. (TKC) Discusses Second Quarter 2025 Earnings During Conference Call

Turkcell Communications Services Inc. (TKC) Discusses Second Quarter 2025 Earnings During Conference Call

Turkcell Reports Strong Q2 2025 Earnings, Showing 12.5% Revenue Growth

Turkcell Iletisim Hizmetleri A.S. (TKC) has announced impressive Q2 2025 earnings, with a 12.5% year-on-year increase in revenue to TRY 53.0 billion and a 14.8% rise in adjusted EBITDA to TRY 23.1 billion. The company's operational momentum, including record postpaid net additions and substantial growth in Techfin and Data Center & Cloud revenues, contributed to these strong results.

Key financial and operational highlights from Q2 2025 include:

• Revenue: TRY 53.0 billion, up 12.5%, driven by higher ARPU, hardware sales, and Techfin contributions.
• Adjusted EBITDA: TRY 23.1 billion, a 14.8% increase, with EBITDA margin expanded by 0.9 percentage points to 43.5%.
• EBIT: Increased 39.5% to TRY 8.8 billion, and profit from continuing operations rose 36.8% to TRY 4.4 billion.
• Net income: Up 7.1% to TRY 4.2 billion, despite some adverse income tax impacts.
• Postpaid net additions: 816,000, the highest in 5.5 years, boosting postpaid share to 78%.
• ARPU: Mobile ARPU excluding M2M up 9.8%, residential fiber ARPU increased 17.5%.
• Techfin revenue: Grew by 23.1%, with Paycell revenues up 35.8% and Data Center & Cloud revenue rising 53.2%.
• Balance sheet: Consolidated cash was TRY 116.6 billion; consolidated debt TRY 172.9 billion; net debt TRY 25.4 billion, with net debt/EBITDA at a low 0.29x.
• Capital expenditure: Continued elevated CAPEX with TRY 40.6 billion spent in H1 2025, partly funding 5G auction investment.

The earnings beat led to significant short-term stock gains (over 70%), but market analysis remains cautious due to high interest costs and macroeconomic uncertainties. Rising affiliate losses and interest rates might affect sustainability, suggesting a short-to-medium-term tactical trading approach while monitoring economic factors.

The conference call, held on August 13, 2025, at 1:00 PM ET, was a presentation and discussion of Turkcell's Second Quarter 2025 Financial Results. The call included an overview of operational and financial results, followed by a Q&A session. The call was operated by Jota, a Chorus Call operator.

Key personnel participating in the conference included Ozlem Yardim, the Investor Relations and Corporate Finance Director, Kamil Kalyon, the CFO, and Ali Taha Koc, the CEO. Cemal Demirtas participated from Ata Invest Co., Research Division, and Madhvendra Singh from HSBC Global Investment Research, among others.

In US dollars, Q2 2025 revenue was approximately $1.37 billion with earnings per share (EPS) reported at $0.13. The stock showed an expected EPS growth of over 200% next year based on estimates.

Overall, Turkcell demonstrated strong operational execution with margin improvement, healthy cash flow, and growth in high-value segments like fiber, cloud services, and fintech, while maintaining a prudent financial position amid inflationary and interest rate challenges.

[1] Turkcell Iletisim Hizmetleri A.S. (2025). Second Quarter 2025 Financial Results. Retrieved from https://www.turkcell.com.tr/en/investor-relations/financial-statements

[2] Market Analysis (2025). Turkcell Q2 2025 Earnings: A Closer Look. Retrieved from https://www.marketanalysis.com/articles/turkcell-q2-2025-earnings-a-closer-look

[3] Turkcell Iletisim Hizmetleri A.S. (2025). Second Quarter 2025 Earnings Conference Transcript. Retrieved from https://www.turkcell.com.tr/en/investor-relations/conference-calls

[4] Financial Times (2025). Turkcell Earnings Beat Expectations, but Uncertainties Remain. Retrieved from https://www.ft.com/content/7c83c29a-b8b5-4421-a7c5-9a2e6a380779

[5] Safe Harbor Statement. (2025). Turkcell Iletisim Hizmetleri A.S. Retrieved from https://www.turkcell.com.tr/en/about-us/investor-relations/disclosures

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