Turkcell (TCELL) Q2 2025 earnings summary

Executive summary

• Achieved strong double-digit year-on-year revenue growth of 12.5% to TRY 53 billion in Q2 2025, driven by ARPU gains and record postpaid subscriber expansion, with net income from continuing operations up 36.8% to TRY 4.4 billion.

• Adjusted EBITDA rose 15% year-on-year to TRY 23.1 billion, with a margin of 43.5%.

• Added 816,000 postpaid subscribers in the quarter, the highest net addition in over five years.

• Strategic focus on digital, techfin, and data center/cloud services contributed to performance.

• Total consolidated revenue for the six months ended 30 June 2025 reached TRY 103.9 billion, up from TRY 92.3 billion year-over-year, driven by growth in both telecom and financial services segments.

Financial highlights

• Revenue increased 12.6% year-over-year to TRY 103.9 billion for the six-month period, with Q2 2025 revenue at TRY 53.0 billion.

• EBITDA rose to TRY 23.1 billion in Q2 2025, up 14.8% year-over-year, with margin improving to 43.5%.

• Net income from continuing operations was TRY 4.4 billion in Q2 2025, up 36.8% year-over-year.

• Cash and cash equivalents increased to TRY 116.6 billion; net debt at TRY 25.4 billion; net leverage ratio at 0.3x.

• CapEx intensity for the quarter was 16.9%, with over 80% allocated to mobile and fixed networks.

Outlook and guidance

• Full-year guidance reiterated, based on a year-end inflation assumption of 13.5%.

• CapEx acceleration planned for H2, focusing on telecom infrastructure, 5G readiness, and renewable energy.

• Targets for 2025 include continued revenue growth, EBITDA margin expansion, and operational capex/sales ratio of ~24%.

• Focus on excelling in 5G, increasing base station fiberization to 48% in 2025, and expanding solar renewable investments.

• Prudent approach to guidance maintained due to contract structure, inflation, and high base effect.