Turkcell (TCELL) Q1 2026 earnings summary

Executive summary

• Nationwide 5G launch on March 31, securing 40% of the spectrum and 25% higher capacity than the closest competitor, reinforcing market leadership.

• Q1 2026 revenue reached TRY 68.4 billion, up 8.9% year-over-year, driven by Digital Business Services, Techfin, and subscriber gains.

• Net income rose 15% year-over-year to TRY 4.63 billion, with comprehensive income at TRY 5.54 billion.

• Secured $1 billion Murabaha syndication, the largest ever by a Turkish company, to finance 5G and next-gen tech investments.

• Strategic partnerships, high-profile marketing, and enhanced TV/content offerings supported growth and 5G adoption.

Financial highlights

• Revenue up 8.9% year-over-year to TRY 68.4 billion.

• Adjusted EBITDA reached TRY 28.3 billion with a 41.4% margin; EBITDA margin declined 2.3pp YoY.

• Net income increased 15% to TRY 4.63 billion, supported by operational performance and 5G license capitalization.

• Digital Business Services revenue grew 64% year-over-year; Data Center and Cloud revenue up 21%.

• CapEx to sales ratio at 21.5%, with 85% allocated to connectivity and 5% to data centers.

Outlook and guidance

• ARPU growth targeted to track inflation cycle for 2026, with dynamic pricing and migration to higher-value segments.

• Guidance and outlook based on macroeconomic indicators, including inflation; too early to revise revenue growth guidance.

• Expect leverage to remain below 1x despite high investment year.

• 5G spectrum license extends mobile service authorization to 2042.

• No significant seasonality expected to impact future quarters.