Türk Telekomünikasyon (TTKOM) Investor Update summary

Concession agreement extension and strategic impact

• Fixed-line services concession extended to 2050, with a $2.5 billion fee payable over 10 years, supporting long-term operational visibility and value creation.

• $17 billion investment commitment through 2050 for network expansion, upgrades, and new technologies.

• Agreement enables flexibility to reshape fixed-line strategy, supporting fiberization, digital transformation, and expansion into AI, IoT, data centers, and cloud.

• Covers infrastructure development, wholesale/retail services, cybersecurity, digital products, and new tech advancements.

• New wholesale pricing mechanism increases predictability and transparency, supporting sector efficiency.

Financial outlook and leverage management

• Net debt to EBITDA ratio is 0.68x, with leverage expected to remain in line with global sector standards; reduced to 0.81 by H1 2025.

• Concession and 5G payments will be phased, not as a lump sum, minimizing immediate leverage impact.

• CapEx intensity guided at 29% of sales, with no significant deviation expected in the short term.

• EBITDA margin guidance for 2025 is 41%, reflecting strong operational performance.

• Funding for investments and license fees will be a mix of internal cash flow and market borrowing, including potential Sukuk and Eurobond issuances.

Operational and market leadership

• Maintains largest fixed line operator status in Türkiye, with 46% wholesale and 54% retail market share in 2024.

• Nearly 80% of Türkiye’s fiber network built, passing over 33.5 million homes; fibre network covers all 81 provinces with nearly 500,000 km as of H1 2025.

• Nine out of ten subscribers on fiber; FTTHB connections at 40% of base, with 25% CAGR in FTTHB subscriptions since 2018.

• Led Türkiye to become the 4th fastest-growing FTTH/B market in Europe, adding 0.9 million new subscribers from Sep 2023 to Sep 2024.

• Fibre backbone supports 5G readiness, with 55% of LTE base stations fibre-connected, surpassing global 2030 targets.