Turkcell Iletisim Hizmetleri A.S.

What they do

Turkcell provides mobile voice and data, fixed broadband, IPTV, and digital consumer services primarily in Turkey, where it generated TRY 224.1 billion of consolidated revenue in 2025. The group also operates in Belarus through Belarusian Telecom, which contributed TRY 3.1 billion of revenue. Its Turkcell TV+ platform and digital services such as BiP, fizy, and lifebox are used by millions of subscribers.

Revenue drivers

• Mobile services — Revenue from postpaid and prepaid voice, data, and roaming; mobile ARPU was TRY 297.3 in 2025, and the segment accounts for the majority of group revenue.
• Fixed broadband — Fiber and ADSL internet and IPTV services; fiber subscribers reached 2.8 million and fixed ARPU was TRY 347.6 in 2025.
• Digital services — BiP, fizy, lifebox, and TV+ platforms generate subscription and advertising revenue; combined paid digital subscribers were 5.4 million in 2025.
• Belarusian Telecom — Mobile and fixed operations in Belarus contributed TRY 3.1 billion, or 1.4% of group revenue, in 2025.

Recent performance

For the full year 2025, Turkcell reported revenue of TRY 224.1 billion, up 53.8% year over year, driven by mobile and fixed broadband ARPU growth and subscriber additions. EBITDA grew 48.1% to TRY 97.5 billion, yielding an EBITDA margin of 43.5%, down 1.6 percentage points due to higher energy and personnel costs. Net profit was TRY 25.4 billion, including a TRY 4.3 billion gain from the sale of a 10% stake in Turkcell Finansman. Mobile churn was 2.1% and fixed churn 1.3% in 2025.

Strategy

Turkcell is investing in fiber and 5G network expansion, data center capacity, and digital services to drive ARPU growth. Capital expenditures were TRY 48.6 billion in 2025, focused on fiber rollout, 5G readiness, and IT infrastructure. The company issued a green bond in 2025 to fund energy efficiency and renewable projects. Management sold a 10% stake in its financing arm in 2025 and continues to explore monetization of non-core assets. It also targets maintaining a dividend policy of distributing at least 50% of net income.

Risks

• Currency and inflation volatility — In 2025, the Turkish lira depreciated about 22% against the US dollar, and inflation remained elevated, pressuring costs and consumer purchasing power.
• Regulatory and competition risks — Turkcell faces ongoing regulatory scrutiny, including a competition authority investigation regarding mobile pricing, and the Turkish telecom market remains highly competitive.
• Geopolitical exposure in Belarus — Operations in Belarus are subject to sanctions and geopolitical risks that could disrupt revenue and asset values.
• High capital intensity — Capital expenditures were 21.7% of revenue in 2025, requiring continuous funding and potentially limiting free cash flow.

Outlook

Management did not provide quantitative guidance for 2026 but said it will continue investing in 5G and fiber, aiming to sustain revenue growth and EBITDA margin above 40%. The company expects digital services and fixed broadband to drive future growth, and plans to maintain a dividend payout of at least 50% of net income. Turkcell also noted it will monitor the impact of inflation and currency volatility on operations.