TURKCELL ILETISIM HIZMETLERI (+) : 1Q26 first take - Operational performance in line with estimates

Research evidence excerpt

TURKCELL ILETISIM HIZMETLERI (+) : 1Q26 first take - Operational performance in line with estimates

EQUITIES

TELECOM OPERATORS

TURKCELL ILETISIM HIZMETLERI OUTPERFORMPRICE* TL121.9  TARGET PRICE TL150 (UPSIDE 23%)

FLASH NOTE

1Q26 first take - Operational performance in line with estimates

11 MAY 2026 Securities Research Report Production time: 19:24* (London time)

Research Analyst & Publishing Entities

Evren Gezer TEB Yatirim Menkul Degerler (1) (+90) 216 636 4533 evren.gezer@tebyatirim.com.tr

What happened?

Turkcell posted TRY5b net income in 1Q26, up 16% y-y, mainly owing to income from subsidiary and higher monetary

gains during the quarter. The bottom line was higher than our estimate of TRY4.2b. Operational results were in line with

our estimate. However, the monetary gains were visible higher.

Operational highlights:

Revenue stood at TRY68b, up 9% y-y and in line with the estimates.

Mobile subscribers grew by 10% y-y, with continued subscriber acquisition in post-paid segment, while Turkcell’s fibre

subscribers expanded by 4% y-y.

Fixed broadband ARPU growth prevailed, yet mobile blended ARPU shrank by 2% y-y. Digital business solutions and

data center & cloud services remained strong, which led to a 34% y-y expansion in corporate revenue.

EBITDA stood at TRY28b, up 3% y-y, and broadly in line with estimates. EBITDA margin shrank by 231 bps during the

quarter, mainly owing to higher personnel and general costs.

Balance sheet and cash flow:

Net debt increased to TRY49b from TRY16b, and net debt to EBITDA reached to 0.4x from 0.1x from a quarter ago,

mainly owing to 5G licence instalment payment. Management is confident in keeping leverage below 1x even after 5G

tender instalments and sustainable dividend payments.

2026 Guidance: