1 month ago - seekingalpha.com

Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC ) Q1 2024 Earnings Conference Call May 27, 2024 1:00 PM ET Company Participants Ozlem Yardim - Investor Relations and Corporate Finance Director Ali Taha Koc - Chief Executive Officer Kamil Kalyon - Chief Financial Officer Conference Call Participants Tiron Cesar - Bank of America Ignebekçili Murat - HSBC Demirtas Cemal - Ata Invest Mandaci Ece - UNLU Securities Operator Ladies and gentlemen, thank you for standing by.

1 month ago - businesswire.com

ISTANBUL--(BUSINESS WIRE)--Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) (BIST:TCELL): Please note that all financial data is consolidated and comprises that of Turkcell Iletisim Hizmetleri A.S. (the “Company”, or “Turkcell”) and its subsidiaries and associates (together referred to as the “Group”), unless otherwise stated. We have four reporting segments: "Turkcell Türkiye" which comprises our telecom, digital services and digital business services related businesses in Türkiye (as used in our.

1 month ago - businesswire.com

ISTANBUL--(BUSINESS WIRE)--Turkcell (NYSE: TKC, BIST: TCELL) announced that it has filed its Annual Report on Form 20-F for the year ended December 31, 2023 with the United States Securities and Exchange Commission on May 13, 2024. The Company's Form 20-F and complete audited financial statements can be found at: https://www.turkcell.com.tr/en/aboutus/investor-relations/quarterly-results Hard copy versions of the complete audited financial statements are available free of charge upon request fr.

2 months ago - seekingalpha.com

Turkcell is a leading telecommunications provider in Turkey. Turkcell's stock has performed well, returning nearly 25% since I raised it to a buy rating in November, as it has been able to navigate the hyperinflationary environment. Looking forward, as long as the company continues to reprice its services at a faster pace than inflation, margins and earnings should continue to expand, driving shares higher.

3 months ago - seekingalpha.com

Turkcell Iletisim Hizmetleri A.S. (TKC) Q4 2023 Earnings Call Transcript

3 months ago - businesswire.com

ISTANBUL--(BUSINESS WIRE)--Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) (BIST:TCELL): Please note that all financial data is consolidated and comprises that of Turkcell Iletisim Hizmetleri A.S. (the “Company”, or “Turkcell”) and its subsidiaries and associates (together referred to as the “Group”), unless otherwise stated. We have four reporting segments: "Turkcell Türkiye" which comprises our telecom, digital services and digital business services related businesses in Türkiye (as used in our.

4 months ago - businesswire.com

FALLS CHURCH, Va.--(BUSINESS WIRE)-- #Space--Lynk Global, Inc. (Lynk), the world's leading satellite-direct-to-mobile-phone (Sat2Phone) telecoms provider, and Turkcell (NYSE: TKC), the largest mobile operator in Turkiye, jointly announced the contract signing starting initial Sat2Phone services utilizing Lynk's "cell-towers-in-space." This collaboration is anticipated to complement network resiliency and mobile coverage across Turkiye, benefiting the local population, businesses and visitors. Turkcell,.

5 months ago - investorplace.com

This bull market has been quite selective, with a bifurcation building in the market. Mega-cap technology stocks have outperformed, with many cheap stocks still seeing relative underperformance in terms of the proportionate share of market gains seen in recent months.

7 months ago - seekingalpha.com

Turkcell has successfully managed its business in the face of high and persistent inflation in Turkey. The company's Q3/2023 financial results showed revenue growth exceeding inflation, leading to margin expansion and a surge in earnings. Turkcell's valuation appears cheap compared to the Communications Sector, but macro risks in the Turkish economy remain.

8 months ago - seekingalpha.com

Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC ) Q3 2023 Results Conference Call November 7, 2023 12:00 PM ET Company Participants Ozlem Yardim - IR Ali Taha Koc - CEO Kamil Kalyon - CFO Conference Call Participants Kayahan Demirak - AK Investment Nagy Nora - Erste Group Bank AG Murat Ignebekçili - HSBC Operator Ladies and gentlemen, thank you for standing by.

8 months ago - businesswire.com

ISTANBUL--(BUSINESS WIRE)--Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) (BIST:TCELL): Please note that all financial data is consolidated and comprises that of Turkcell Iletisim Hizmetleri A.S. (the “Company”, or “Turkcell”) and its subsidiaries and associates (together referred to as the “Group”), unless otherwise stated. We have four reporting segments: "Turkcell Türkiye" which comprises our telecom, digital services and digital business services related businesses in Türkiye (as used in our.

10 months ago - seekingalpha.com

Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC ) Q2 2023 Earnings Conference Call August 17, 2023 12:00 PM ET Company Participants Ali Serdar Yağcı - Investor Relations & Corporate Finance Director Murat Erkan - Chief Executive Officer Kamil Kalyon - Acting Chief Financial Officer Conference Call Participants Ece Mandaci - Unlu & Co. Cemal Demirtas - Ata Invest Co. Kayahan Demirak - AK Investment Operator Ladies and gentlemen, thank you for standing by.

10 months ago - businesswire.com

ISTANBUL--(BUSINESS WIRE)--Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) (BIST:TCELL): Please note that all financial data is consolidated and comprises that of Turkcell Iletisim Hizmetleri A.S. (the “Company”, or “Turkcell”) and its subsidiaries and associates (together referred to as the “Group”), unless otherwise stated. We have four reporting segments: "Turkcell Turkey" which comprises our telecom, digital services and digital business services related businesses in Turkey (as used in our pr.

1 year ago - zacks.com

Tecnoglass (TGLS), Amphastar Pharmaceuticals (AMPH), Turkcell Iletisim Hizmetleri (TKC) and Copa Holdings (CPA) have been selected as the top picks with a high net income ratio.

1 year ago - zacks.com

Invest in companies like Wynn Resorts (WYNN), Turkcell Iletisim Hizmetleri (TKC), Green Brick Partners (GRBK) and Inspired Entertainment (INSE) due to higher efficiency levels.

1 year ago - seekingalpha.com

Turkcell Iletisim Hizmetleri A.S. is a wireless communications provider from Turkey that has been impacted by runaway inflation and a weakening Turkish Lira. Despite inflation, Turkcell has continued to grow and outpace the competition, with revenue beating earnings estimates and outpacing inflation in Q1 2023.

1 year ago - seekingalpha.com

Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC ) Q1 2023 Earnings Conference Call May 9, 2023 1:00 PM ET Company Participants Ali Serdar Yağcı - Investor Relations & Corporate Finance Director Murat Erkan - Chief Executive Officer Kamil Kalyon - Acting Chief Financial Officer Conference Call Participants Kennedy-Good Jonathan - JPMorgan Mandaci Ece - Unlu Securities Demirtas Cermal - Ata Invest Operator Ladies and gentlemen, thank you for standing by.

1 year ago - businesswire.com

ISTANBUL--(BUSINESS WIRE)--Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) (BIST:TCELL): Please note that all financial data is consolidated and comprises that of Turkcell Iletisim Hizmetleri A.S. (the “Company”, or “Turkcell”) and its subsidiaries and associates (together referred to as the “Group”), unless otherwise stated. We have four reporting segments: "Turkcell Turkey" which comprises our telecom, digital services and digital business services related businesses in Turkey (as used in our pr.

1 year ago - businesswire.com

ISTANBUL--(BUSINESS WIRE)--Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) (BIST:TCELL): Please note that all financial data is consolidated and comprises that of Turkcell Iletisim Hizmetleri A.S. (the “Company”, or “Turkcell”) and its subsidiaries and associates (together referred to as the “Group”), unless otherwise stated. We have four reporting segments: "Turkcell Turkey" which comprises our telecom, digital services and digital business services related businesses in Turkey (as used in our previous releases in periods prior to Q115, this term covered only the mobile businesses). All non-financial data presented in this press release is unconsolidated and comprises Turkcell Turkey only figures, unless otherwise stated. The terms "we", "us", and "our" in this press release refer only to Turkcell Turkey, except in discussions of financial data, where such terms refer to the Group, and except where context otherwise requires. “Turkcell International” which comprises all of our telecom and digital services related businesses outside of Turkey. “Techfin” which comprises all of our financial services businesses. “Other” which mainly comprises our non-group call center and energy businesses, retail channel operations, smart devices management and consumer electronics sales through digital channels and intersegment eliminations. "Turkcell Turkey" which comprises our telecom, digital services and digital business services related businesses in Turkey (as used in our previous releases in periods prior to Q115, this term covered only the mobile businesses). All non-financial data presented in this press release is unconsolidated and comprises Turkcell Turkey only figures, unless otherwise stated. The terms "we", "us", and "our" in this press release refer only to Turkcell Turkey, except in discussions of financial data, where such terms refer to the Group, and except where context otherwise requires. “Turkcell International” which comprises all of our telecom and digital services related businesses outside of Turkey. “Techfin” which comprises all of our financial services businesses. “Other” which mainly comprises our non-group call center and energy businesses, retail channel operations, smart devices management and consumer electronics sales through digital channels and intersegment eliminations. In this press release, a year-on-year comparison of our key indicators is provided and figures in parentheses following the operational and financial results for March 31, 2023 refer to the same item as at March 31, 2022. For further details, please refer to our consolidated financial statements and notes as at and for March 31, 2023, which can be accessed via our website in the investor relations section (www.turkcell.com.tr). Selected financial information presented in this press release for the first and fourth quarters of 2022 and the first quarter of 2023 is based on Turkish Accounting Standards (TAS) / Turkish Financial Reporting Standards (TFRS) figures in TRY terms unless otherwise stated. In the tables used in this press release totals may not foot due to rounding differences. The same applies to the calculations in the text. Year-on-year and quarter-on-quarter percentage comparisons appearing in this press release reflect mathematical calculation. NOTICE We are publishing financial statements as of March 31, 2023 prepared in accordance with Turkish Accounting Standards/Turkish Financial Reporting Standards (“TAS”/“TFRS”) only. These standards are issued by the Public Oversight Accounting and Auditing Standards Authority (“POA”) and are in full compliance with IAS/IFRS Standards. In an announcement published by the POA on January 20, 2022, it is stated that TAS 29 “Financial Reporting in Hyperinflationary Economies” does not apply to TFRS financial statements as of December 31, 2021. Since then and as of the preparation date of our latest consolidated financial statements, no new statement has been made by the POA about TAS 29 application. Consequently, no TAS 29 adjustment was made to our consolidated financial statements. Financial statements prepared in accordance with IFRS should apply IAS 29 “Financial Reporting in Hyperinflationary Economies” as of March 31, 2023. In this context, financial statements prepared in accordance with IFRS and TFRS would have significant differences and would not be comparable as of March 31, 2023. We intend to publish IFRS financial statements, compliant with IAS 29 to the extent that it remains applicable, with our Annual Report on Form 20-F that will be filed to the U.S. Securities and Exchange Commission. Although we have not prepared a detailed comparison of differences between IFRS (unadjusted according to IAS 29) and TFRS, we have noted in our past financial statements that the most significant differences have appeared in the lines Other Operating Income/Expense, Finance Income/Expense, and Investment Activity Income/Expense. In the past, revenue, net income and EBITDA have generally not differed. While no assurance can be given that this will be the case for Q1 2023, we are not at present aware of changes that would cause other significant differences, other than those resulting from the application of IAS 29. FINANCIAL HIGHLIGHTS TRY million Q122 Q422 Q123 y/y% q/q% Revenue 10,695 16,044 17,276 61.5% 7.7% EBITDA1 4,302 6,671 6,759 57.1% 1.3% EBITDA Margin (%) 40.2% 41.6% 39.1% (1.1pp) (2.5pp) EBIT2 2,217 4,156 4,073 83.7% (2.0%) EBIT Margin (%) 20.7% 25.9% 23.6% 2.9pp (2.3pp) Net Income 803 5,996 2,817 250.8% (53.0%) FIRST QUARTER HIGHLIGHTS Strong financial performance: Group revenues up 61.5% mainly on increased ARPU growth, expanded postpaid subscriber base, the contribution of international operations, techfin business and digital business services. Excluding earthquakes’ impact, revenue growth would have been around 65%* year-on-year EBITDA up 57.1% leading to an EBITDA margin of 39.1%; EBIT up 83.7% resulting in an EBIT margin of 23.6% Net income up 250.8% to TRY2.8 billion Net leverage3 level at 0.9x; net short FX position of US$31 million Group revenues up 61.5% mainly on increased ARPU growth, expanded postpaid subscriber base, the contribution of international operations, techfin business and digital business services. Excluding earthquakes’ impact, revenue growth would have been around 65%* year-on-year EBITDA up 57.1% leading to an EBITDA margin of 39.1%; EBIT up 83.7% resulting in an EBIT margin of 23.6% Net income up 250.8% to TRY2.8 billion Net leverage3 level at 0.9x; net short FX position of US$31 million Robust operational results: Turkcell Turkey subscriber base increased by 48 thousand quarterly net additions 342 thousand quarterly mobile postpaid net additions; postpaid subscriber base share at 69.1% 38 thousand fiber net additions 160 thousand new fiber homepasses Mobile ARPU4 exceeded the average of inflation rate and rose by 67.9% year-on-year in Q123 mainly on the back of gradual price adjustments over the last year, upsell to higher tariffs and larger postpaid subscriber base Residential fiber ARPU growth of 31.4% year-on-year Average monthly data usage of 4.5G users at 17.4 GB in Q123; smartphone penetration at 88% Turkcell Turkey subscriber base increased by 48 thousand quarterly net additions 342 thousand quarterly mobile postpaid net additions; postpaid subscriber base share at 69.1% 38 thousand fiber net additions 160 thousand new fiber homepasses Mobile ARPU4 exceeded the average of inflation rate and rose by 67.9% year-on-year in Q123 mainly on the back of gradual price adjustments over the last year, upsell to higher tariffs and larger postpaid subscriber base Residential fiber ARPU growth of 31.4% year-on-year Average monthly data usage of 4.5G users at 17.4 GB in Q123; smartphone penetration at 88% 2023 guidance5 maintained; revenue growth target of between 55-57%, EBITDA target of around TRY34 billion, and operational capex over sales ratio6 target of around 22% (1) EBITDA is a non-GAAP financial measure. See page 15 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income. (2) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses. (3) Starting from Q421, we have revised the definition of our net debt calculation to include "financial assets” reported under current and non-current assets. Required reserves held in CBRT balances are also considered in net debt calculation. We believe that these assets are highly liquid and can be easily converted to cash without significant change in value. (4) Excluding M2M (5) Please note that this section contains forward-looking statements based on our initial impact assessment of the earthquake. Factors such as changes in the state of emergency measures and potential aftershocks, as well as the risk factors disclosed in our Annual Report on Form 20-F for 2022 filed with U.S. Securities and Exchange Commission, could cause actual impacts to differ materially from our expectations. (5) 2023 guidance figures are based on TFRS, and do not include the effects of a likely adoption of inflationary accounting in accordance with IAS 29. (6) Excluding license fee *Excluding the impact of cancellation of certain fees such as activation, cancellation and late payment fees For further details, please refer to our consolidated financial statements and notes as at March 31, 2023 via our website in the investor relations section (www.turkcell.com.tr). COMMENTS BY CEO, MURAT ERKAN The wounds of the earthquake have begun to heal The wounds of the February earthquake epicentered in Kahramanmaraş, one of the worst disasters in our history, have been swiftly addressed. While all resources are being mobilized for the reconstruction and recovery of the affected region, as Turkiye’s Turkcell we, too, are supporting the region with various employment and education-focused projects. As part of the “Turkcell Employment Mobilization” project we will, in the first stage, provide employment to 1,100 citizens and their families affected by the earthquake across 11 provinces. In addition, with our Call and Vocational Training Center to be established in Hatay, we aim to support earthquake victims not only with training, but also by providing areas for socialization. Meanwhile, with the technical and personal development programs of Turkcell Academy, we aim to provide the region with a qualified workforce of 5,000 people. As Turkcell, we will continue our efforts at full speed to improve the conditions of those affected by the earthquake and alleviate their suffering. Mobile ARPU growth outpaced inflation In the first quarter, despite the new subscriber demand in the earthquake-affected region and regulatory tourist line closures, we saw a net total add of 48 thousand subscribers. On the mobile side, we achieved a net add of 342 thousand postpaid subscribers in line with our focus on this segment. On the other hand, we lost 367 thousand prepaid subscribers due to regulatory closures we made this quarter among such subscribers acquired in high numbers from tourists and visitors in 2022. The mobile churn rate slightly increased on an annual basis to 1.7%. Regarding market competition dynamics, it is fair to state that the first quarter of the year was more balanced compared to the same period of last year due to the earthquake impact. We saw the year-end aggressiveness continue in the early months of the year. Yet as the MNP market volume decreased during the earthquake period and aggressive campaigns subsided in march, the market became more rational. We continued our infrastructure investments to provide our citizens with the internet speeds they deserve, and aware that the digitalization of our country depends on the fiber internet infrastructure. Within the framework of our goal of reaching 300 thousand new homepasses in 2023, we extended our end-to-end fiber service to 160 thousand new homepasses this quarter reaching a total of 5.5 million households. As a result of our strategic investments, we gained a net 38 thousand fiber customers in the first quarter of the year. The strong demand for our high-speed packages continued in this quarter. On the fiber side, the share among new customers of packages with speeds of over 100 Mbps increased by 22 percentage points compared to the same period of last year to 44%. Again, in this period, our customers also appreciated the no-commitment packages we offered for the first time in the fiber segment. On the other hand, due to the earthquake effect, fixed churn rate rose slightly on an annual basis. The fixed and fiber residential churn rates were 1.5% and 1.2%, respectively. Despite the earthquake impact, the subscribers of IPTV, which we especially offer to our fiber customers, increased by 28 thousand this quarter. In line with our inflationary pricing policy, the sequential price adjustments since the end of 2021 and the slowdown in inflation led mobile ARPU growth to outpace inflation, as expected. Mobile ARPU1, which continued its upward momentum, increased by 67.9% in the first quarter of the year, while the average inflation rate during the period was 54.3%. On the fixed side, the revenue reflection of price adjustments is more extended when compared to mobile due to a longer contract period. In addition, with the actions we have taken for customers in the earthquake region, Residential Fiber ARPU grew 31.4% on a year-on-year basis. In the first quarter of 2023, our consolidated revenues increased by 61.5% year-on-year to TRY17.3 billion, while EBITDA2 rose by 57.1% to TRY6.8 billion compared to the same period of last year. Our net profit rose by 250.8% to TRY2.8 billion, thanks to our strong operational performance, lower FX losses and an effective cash management. Strong performance from our focus areas continued The stand-alone paid users of our digital services and solutions, which is among our strategic focus areas, rose 24% year-on-year to 5.2 million, while their stand-alone revenues rose 65,2%. TV+, which enriches its offering with domestic and foreign content, continues to strengthen its market position in the through consistent improvement in service quality. In this regard, TV+'s net promoter score (NPS) has steadily increased over the past four quarters, and as of this quarter TV+ leads the market. TV+ has been steadily raising its share in the paid TV market since the second quarter of 2014, and according to the fourth quarter ICTA report, it has increased its market share to 16.5%. Despite the earthquake impact, IPTV subscribers have reached 1.3 million on a 16% year-on-year increase, while OTT TV subscribers maintained a similar yearly increase sustaining 1.0 million subscribers. The revenues of digital business services that offer solutions for companies' digital transformation increased by 103.9% year-on-year, exceeding TRY1.6 billion in the first quarter of 2023. The revenue of our data center and cloud business services, which increase their share in digital business services revenue each quarter, more than doubled in revenue year-on-year. In this quarter, we signed 1,163 new projects with a total contract size of 1.8 billion TRY, of which TRY1.2 billion comprised system integration and managed services projects. Through this project portfolio, we have a backlog of TRY2.5 billion in contract value to be collected after the second quarter of 2023. Our third focus area, techfin, where we provide services under the Financell and Paycell brands, continued to support group growth. Financell3’s revenue reached TRY317 million, up 64.6% year on year. This performance was driven by a credit portfolio reaching TRY3.9 billion and an increase in average interest rates. Paycell, Turkiye's digital payment platform, saw its revenues rise 79.4% year-on-year to TRY294 million. “Pay Later”, which accounts for 71% of Paycell revenue, doubled its transaction volume compared to the same period of last year, thanks to a rising number of users, being preferred in digital content such as transactions in Apple and Android markets. The first deliveries of domestically produced smart device Togg T10X, for which pre-sales demand was exceed nine-fold of the production, began to be made in April. The T10X has the distinction of being the first vehicle in the world to be sold through an electronic wallet. During the presale period of T10X, which is the first vehicle to be sold via an electronic wallet, a volume of around TRY11 billion has been executed via Trumore wallet for which Paycell provided its infrastructure. Our Paycell virtual POS product, designed for corporate consumers, and enjoying high demand, will also mediate payments at "Trugo" charging stations. I take this opportunity to thank our Board of Directors and all our team members for their support in making a strong start to the year, despite the challenges we faced and grief we suffered together this quarter. I also express our gratitude to our customers and business partners who remain with us on our journey towards success. (1) Excluding M2M (2) EBITDA is a non-GAAP financial measure. See page 15 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income (3) Following the change in the organizational structure, the revenues of Turkcell Sigorta Aracılık Hizmetleri A.Ş. (Insurance Agency), which was previously managed under the Financell, has been classified from Financell to "Other" in the Techfin segment as of the first quarter of 2023. Within this scope, all past data have been revised for comparability purposes. FINANCIAL AND OPERATIONAL REVIEW Financial Review of Turkcell Group Profit & Loss Statement (million TRY) Q122 Q422 Q123 y/y% q/q% Revenue 10,695.0 16,043.9 17,275.9 61.5% 7.7% Cost of revenue1 (5,493.5) (7,935.3) (8,840.5) 60.9% 11.4% Cost of revenue1/Revenue (51.4%) (49.5%) (51.2%) 0.2pp (1.7pp) Gross Margin1 48.6% 50.5% 48.8% 0.2pp (1.7pp) Administrative expenses (303.7) (473.4) (560.5) 84.6% 18.4% Administrative expenses/Revenue (2.8%) (3.0%) (3.2%) (0.4pp) (0.2pp) Selling and marketing expenses (540.7) (899.8) (911.8) 68.6% 1.3% Selling and marketing expenses/Revenue (5.1%) (5.6%) (5.3%) (0.2pp) 0.3pp Net impairment losses on financial and contract assets (55.1) (63.9) (203.9) 270.0% 219.1% EBITDA2 4,302.0 6,671.5 6,759.2 57.1% 1.3% EBITDA Margin 40.2% 41.6% 39.1% (1.1pp) (2.5pp) Depreciation and amortization (2,084.5) (2,515.7) (2,685.8) 28.8% 6.8% EBIT3 2,217.5 4,155.8 4,073.4 83.7% (2.0%) EBIT Margin 20.7% 25.9% 23.6% 2.9pp (2.3pp) Net finance income / (expense) (3,038.4) (3,424.2) (2,104.2) (30.7%) (38.5%) Finance income 72.3 (642.4) 4.6 (93.6%) n.m Finance expense (3,110.7) (2,781.8) (2,108.8) (32.2%) (24.2%) Other operating income / (expense) 1,494.1 1,028.9 1,070.6 (28.3%) 4.1% Investment activity income / (expense) 299.2 157.6 510.1 70.5% 223.7% Non-controlling interests (0.0) 0.9 0.2 n.m n.m Share of profit of equity accounted investees (23.4) (10.0) 6.4 n.m n.m Income tax expense (146.0) 4,087.3 (739.8) 406.7% (118.1%) Net Income 802.9 5,996.3 2,816.6 250.8% (53.0%) (1) Excluding depreciation and amortization expenses. (2) EBITDA is a non-GAAP financial measure. See page 15 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income. (3) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses. Revenue of the Group rose 61.5% year-on-year in Q123. Turkcell Turkey played a significant role in this performance given its robust ARPU growth, which was positively impacted by price adjustments during 2022 aimed at reflecting inflationary effects, along with successful upsell efforts. Additionally, revenue growth was supported by our international operations and techfin business. Turkcell Turkey revenues, comprising 78% of Group revenues, rose 69.7% year-on-year in Q123 to TRY13,491 million (TRY7,950 million). - Consumer segment revenues rose 67.6% year-on-year on the back of an expanded postpaid subscriber base and price adjustments to offset the impact of inflation. - Corporate segment revenues grew 85.1% year-on-year driven by the performance of digital business services, which grew 103.9% year-on-year. - Standalone digital services revenues registered as part of the consumer and corporate segments rose 65.2% year-on-year in Q123. The primary drivers of this growth were the increased number of stand-alone paid users and adjustments to the prices of services. - Wholesale revenues increased by 53.3% year-on-year to TRY894 million (TRY583 million), driven mainly by the positive impact of currency movements, as well as the traffic increase and capacity upgrades of customers. Turkcell International revenues, comprising 11% of Group revenues, rose 31.0% year-on-year to TRY1,869 million (TRY1,427 million) due mainly to lifecell’s performance. Techfin segment revenues, comprising 4% of Group revenues, rose 71.7% year-on-year to TRY606 million (TRY353 million). This was driven by a 79.4% rise in Paycell revenues and 64.6% growth in Financell revenues. Please refer to the Techfin section for details. Other subsidiaries' revenues, at 8% of Group revenues, including mainly consumer electronics sales revenues, digital channels, non-group call center and energy business revenues, were up 35.7% year-on-year to TRY1,310 million (TRY966 million). Cost of revenue (excluding depreciation and amortization) decreased to 51.2% (51.4%) as a percentage of revenues in Q123. This was driven mainly by the decline in interconnection cost (2.2pp), despite the increase in employee expenses (1.6pp) and other cost items (0.4pp) as a percentage of revenues. Administrative expenses increased to 3.2% (2.8%) as a percentage of revenues in Q123. Selling and marketing expenses rose to 5.3% (5.1%) as a percentage of revenues in Q123. This was driven mainly by the increase in employee expenses (0.7pp) and energy expenses (0.1pp), despite the decline in selling expenses (0.4pp) and marketing expenses (0.2pp) as a percentage of revenues. Net impairment losses on financial and contract assets was at 1.2% (0.5%) as a percentage of revenues in Q123. EBITDA1 rose by 57.1% year-on-year in Q123 leading to an EBITDA margin of 39.1% (40.2%). - Turkcell Turkey’s EBITDA grew by 64.1% to TRY5,391 million (TRY3,286 million) leading to an EBITDA margin of 40.0% (41.3%). - Turkcell International EBITDA increased 41.1% to TRY1,007 million (TRY714 million) driving an EBITDA margin of 53.9% (50.1%) on 3.8pp improvement. - Techfin segment EBITDA rose 36.3% to TRY248 million (TRY182 million) with an EBITDA margin of 40.9% (51.5%). - The EBITDA of other subsidiaries decreased by 6.0% to TRY113 million (TRY121 million). Depreciation and amortization expenses increased 28.8% year-on-year in Q123. Net finance expense decreased to TRY2,104 million (TRY3,038 million) in Q123. This was driven mainly by lower FX losses from borrowings and issued bonds. See Appendix A for details of net foreign exchange gain and loss. Net other operating income decreased to TRY1,071 million (TRY1,494 million) in Q123. See Appendix A for details of net foreign exchange gain and loss. Net investment activity income was TRY510 million in Q123 compared to TRY299 million in Q122. Income tax expense increased to TRY740 million (TRY146 million) due mainly to a higher deferred tax expense incurred in Q123. Net income of the Group increased by 250.8% to TRY2,817 million (TRY803 million) in Q123. This was driven mainly by robust topline growth on the back of strong operational performance, lower fx losses from borrowings and issued bonds in addition to positive impact from currency-protected time deposits. (1) EBITDA is a non-GAAP financial measure. See page 15 for the explanation of how we calculate adjusted EBITDA and its reconciliation to net income Total cash & debt: Consolidated cash as of March 31, 2023 increased to TRY27,317 million from TRY25,961 million as of December 31, 2022. This was driven mainly by the positive impact of currency movements. Excluding FX swap transactions, 57% of our cash is in US$, 15% in EUR, and 26% in TRY. Consolidated debt as of March 31, 2023 increased to TRY58,486 million from TRY53,854 million as of December 31, 2022 mainly due to the impact of currency movements and new borrowings. Please note that TRY3,391 million of our consolidated debt is comprised of lease obligations. Please note that 44% of our consolidated debt is in US$, 26% in EUR, 2% in CNY, 5% in UAH, and 22% in TRY. Net debt1 as of March 31, 2023 was at TRY23,166 million with a net debt to EBITDA ratio of 0.9 times. Excluding finance company consumer loans, our telco only net debt was at TRY19,284 million with a leverage of 0.8 times. Turkcell Group had a short FX position of US$31 million as at the end of the first quarter. (Please note that this figure takes hedging portfolio and advance payments into account). The short FX position of US$31 million is in line with our FX neutral definition, which is between -US$200 million and +US$200 million. Capital expenditures: Capital expenditures, including non-operational items, amounted to TRY5,439 million in Q123. For Q123, operational capital expenditures (excluding license fees) at the Group level were at 19.9% of total revenues. Capital expenditures (million TRY) Q122 Q422 Q123 Operational Capex 1,845.3 4,454.3 3,442.7 License and Related Costs - 317.5 14.4 Non-operational Capex (Including IFRS15 & IFRS16) 1,073.1 1,662.5 1,981.4 Total Capex 2,918.3 6,434.3 5,438.5 (1) Starting from Q421, we have revised the definition of our net debt calculation to include "financial assets” reported under current and non-current assets. Required reserves held in CBRT balances are also considered in net debt calculation. We believe that these assets are highly liquid and can be easily converted to cash without significant change in value. Operational Review of Turkcell Turkey Summary of Operational Data Q122 Q422 Q123 y/y% q/q% Number of subscribers (million) 40.0 41.7 41.7 4.3% - Mobile Postpaid (million) 24.1 25.6 25.9 7.5% 1.2% Mobile M2M (million) 3.5 4.0 4.1 17.1% 2.5% Mobile Prepaid (million) 12.0 12.0 11.6 (3.3%) (3.3%) Fiber (thousand) 1,941.0 2,121.8 2,159.7 11.3% 1.8% ADSL (thousand) 755.7 751.4 759.0 0.4% 1.0% Superbox (thousand)1 612.4 670.7 676.5 10.5% 0.9% Cable (thousand) 51.1 43.9 42.4 (17.0%) (3.4%) IPTV (thousand) 1,126.4 1,281.7 1,309.3 16.2% 2.2% Churn (%)2 Mobile Churn (%) 1.6% 2.7% 1.7% 0.1pp (1.0pp) Fixed Churn (%) 1.4% 1.3% 1.5% 0.1pp 0.2pp ARPU (Average Monthly Revenue per User) (TRY) Mobile ARPU, blended 54.6 83.8 90.3 65.4% 7.8% Mobile ARPU, blended (excluding M2M) 59.8 92.6 100.4 67.9% 8.4% Postpaid 67.0 101.6 107.4 60.3% 5.7% Postpaid (excluding M2M) 77.3 118.7 126.2 63.3% 6.3% Prepaid 29.8 47.9 53.0 77.9% 10.6% Fixed Residential ARPU, blended 88.9 110.5 117.1 31.7% 6.0% Residential Fiber ARPU 89.9 110.6 118.1 31.4% 6.8% Average mobile data usage per user (GB/user) 13.4 15.7 16.2 20.9% 3.2% (1) Superbox subscribers are included in mobile subscribers. (2) Churn figures represent average monthly churn figures for the respective quarters. Despite the negative impact of the earthquake, Turkcell Turkey subscriber base grew by 48 thousand net additions in Q123 to 41.7 million. On the mobile front, our subscriber base was at 37.5 million with 24 thousand net loss in the first quarter of 2023. Accordingly, postpaid subscribers reached 69.1% (66.7%) of the mobile subscriber base. During the quarter, our prepaid customers decreased by 367 thousand. This was due to the disconnection of 509 thousand prepaid customers in Q123 in accordance with the ICTA regulation because of significant tourist arrivals in Q322. On the fixed front, our fiber subscriber base increased by 38 thousand net additions in Q123 supported by sustained demand for high-speed and quality broadband connections. Total fixed subscribers reached 3.0 million on 44 thousand quarterly net additions. Meanwhile, IPTV customers reached 1.3 million on 28 thousand quarterly net additions in Q123. The average monthly mobile churn rate was at 1.7% in Q123. Meanwhile, the average monthly fixed churn rate was at 1.5% in Q123. Our customer-oriented approach and advanced analytic capabilities led to improved customer retention performance in both the mobile and fixed segments. This played a crucial role in maintaining a healthy level of churn. Despite the negative impact of the earthquake, our mobile ARPU (excluding M2M) exceeded the average of inflation rate and rose by 67.9% year-on-year in Q123 driven mainly by price adjustments, upsell to higher tariffs and a larger postpaid subscriber base. Our residential fiber ARPU growth was 31.4% year-on-year in Q123 due mainly to upselling our customers to higher tariffs. The earthquake had a negative impact on the gradual growth of our residential fiber ARPU. Average monthly mobile data usage per user grew by 20.9% in Q123 to 16.2 GB with the increasing number and data consumption of 4.5G users. Accordingly, the average mobile data usage of 4.5G users reached 17.4 GB in Q123. Total smartphone penetration on our network reached 88% in Q123 on a 1.5pp year-on-year improvement. 93% of those smartphones were 4.5G compatible. TURKCELL INTERNATIONAL lifecell1 Financial Data Q122 Q422 Q123 y/y% q/q% Revenue (million UAH) 2,306.8 2,606.8 2,687.4 16.5% 3.1% EBITDA (million UAH) 1,292.4 1,505.6 1,605.0 24.2% 6.6% EBITDA margin (%) 56.0% 57.8% 59.7% 3.7pp 1.9pp Net income (million UAH) 209.4 408.8 515.6 146.2% 26.1% Capex (million UAH) 711.6 997.4 638.0 (10.3%) (36.0%) Revenue (million TRY) 1,112.6 1,326.1 1,386.2 24.6% 4.5% EBITDA (million TRY) 623.6 765.8 827.9 32.8% 8.1% EBITDA margin (%) 56.0% 57.7% 59.7% 3.7pp 2.0pp Net income (million TRY) 101.0 207.8 266.2 163.6% 28.1% (1) Since July 10, 2015, we hold a 100% stake in lifecell. lifecell (Ukraine) revenues rose 16.5% year-on-year in Q123 in local currency terms. The growth in revenue is primarily driven by the increase in ARPU, which has been supported by the price adjustments. lifecell’s EBITDA grew 24.2% year-on-year leading to an EBITDA margin of 59.7% improving 3.7pp year-on-year on the back of lower international interconnection expenses. In Q123, lifecell's positive net income was driven by strong topline performance. lifecell revenues in TRY terms increased 24.6% year-on-year in Q123 with strong operational performance. lifecell’s EBITDA in TRY terms grew by 32.8%, leading to an EBITDA margin of 59.7%. lifecell Operational Data Q122 Q422 Q123 y/y% q/q% Number of subscribers (million)2 10.2 10.2 10.8 5.9% 5.9% Active (3 months)3 8.9 8.5 8.6 (3.4%) 1.2% MOU (minutes) (12 months) 170.0 148.0 133.5 (21.5%) (9.8%) ARPU (Average Monthly Revenue per User), blended (UAH) 75.6 86.0 85.1 12.6% (1.0%) Active (3 months) (UAH) 84.3 104.5 104.6 24.1% 0.1% (2) We may occasionally offer campaigns and tariff schemes that have an active subscriber life differing from the one that we normally use to deactivate subscribers and calculate churn. (3) Active subscribers are those who in the past three months made a revenue generating activity. The three-month active subscriber base of lifecell increased to 8.6 million in Q123 compared to previous quarter. Meanwhile, lifecell’s 3-month active ARPU growth was 24.1% year-on-year on the back of price adjustments. As of Q123, lifecell maintained its leadership in the Ukrainian market with 84.6% smartphone penetration. lifecell remained focused on employee safety and providing services to Ukrainian customers, with a largely operational network. On average, around 15% of nearly 9 thousand sites are temporarily down as of March 31, 2023 on a daily basis. The conditions of sites in occupied territories are unclear. On average, approximately 92% of our stores nationwide were open daily as of the end of March. Moreover, country’s ICT systems, including payment and CRM, are functioning normally, and the country's banking system is operating without any issues. Additionally, with its improved cash generation, the company’s net debt decreased 54% year-on-year, and lifecell's current cash position is sufficient to maintain its operations. BeST1 Q122 Q422 Q123 y/y% q/q% Number of subscribers (million) 1.5 1.5 1.5 - - Active (3 months) 1.1 1.1 1.1 - - Revenue (million BYN) 34.3 38.8 39.3 14.6% 1.3% EBITDA (million BYN) 10.7 12.4 18.2 70.1% 46.8% EBITDA margin (%) 31.1% 32.0% 46.3% 15.2pp 14.3pp Net loss (million BYN) (8.5) (103.1) (9.2) 8.2% (91.1%) Capex (million BYN) 21.5 25.3 18.8 (12.6%) (25.7%) Revenue (million TRY) 175.8 288.1 269.4 53.2% (6.5%) EBITDA (million TRY) 54.6 92.1 124.7 128.4% 35.4% EBITDA margin (%) 31.1% 32.0% 46.3% 15.2pp 14.3pp Net loss (million TRY) (43.7) (745.4) (62.8) 43.7% (91.6%) (1) BeST, in which we hold a 100% stake, has operated in Belarus since July 2008. BeST revenues increased 14.6% year-on-year in local currency terms in Q123 supported by ARPU growth and upsell to higher tariffs. Due to the positive impact of the asymmetric mobile termination rates (MTRs), which came into effect on December 31, 2022, the EBITDA margin improved 15.2pp compared to Q122. BeST’s revenues in TRY terms increased 53.2% year-on-year in Q123 with an EBITDA margin of 46.3%. BeST provides LTE services to its customers in all six regions through reaching 4.1 thousand sites, and has increased the penetration of 4G services. Accordingly, 4G users comprised 79% of the 3-month active subscriber base as of Q123. Meanwhile, the average monthly data consumption of 4G subscribers rose 10% year-on-year to 18.4 GB. Kuzey Kıbrıs Turkcell2 (million TRY) Q122 Q422 Q123 y/y% q/q% Number of subscribers (million) 0.6 0.6 0.6 - - Revenue 96.9 147.8 162.8 68.0% 10.1% EBITDA 38.3 65.2 53.0 38.4% (18.7%) EBITDA margin (%) 39.5% 44.1% 32.5% (7.0pp) (11.6pp) Net income 21.8 106.8 21.6 (0.9%) (79.8%) Capex 34.9 361.2 92.2 164.2% (74.5%) (2) Kuzey Kıbrıs Turkcell, in which we hold a 100% stake, has operated in Northern Cyprus since 1999. Kuzey Kıbrıs Turkcell revenues rose by 68.0% year-on-year in Q123 due mainly to the increase in mobile and roaming revenues, as well as fixed broadband and handset sales revenues. Kuzey Kıbrıs Turkcell recorded a 38.4% increase in EBITDA with a resulting EBITDA margin of 32.5% in Q123. TECHFIN Paycell Financial Data (million TRY) Q122 Q422 Q123 y/y% q/q% Revenue 164.0 270.2 294.2 79.4% 8.9% EBITDA 72.9 116.7 123.2 69.0% 5.6% EBITDA Margin (%) 44.5% 43.2% 41.9% (2.6pp) (1.3pp) Net Income 49.1 83.3 78.8 60.5% (5.4%) In Q123, Paycell registered a 79.4% year-on-year increase in revenue due to the sustained demand for digital payment services. This demand was addressed through our diversified product portfolio, which includes mobile payment services, POS solutions, and Paycell card, particularly the Pay Later solution. Paycell's EBITDA increased by 69.0% year-on-year, resulting in an EBITDA margin of 41.9% in the first quarter of 2023. On the operational front, the quarterly transaction volume (non-group) of Pay Later service doubled year-on-year to TRY1.4 billion, which was utilized by 3-month active Pay Later users of 5.2 million in Q123. Meanwhile, the Paycell Card transaction volume almost doubled year-on-year to TRY2.8 billion in Q123. Additionally, in Q123 the transaction volume of POS solutions almost quintupled year-on-year to TRY10.1 billion supported by the Togg project (presale payments collected through Paycell wallet), Turkey’s first domestic car designed as an electric vehicle, which marks an important and powerful initiative in the mobility sector. Paycell also maintained its position as a marketplace for the trading of gold, silver, and platinum in Q123. Overall, Paycell's total transaction volume across all services almost tripled to TRY18.2 billion year-on-year, driven mainly by a 12% year-on-year rise in Paycell’s total 3-month active users to 7.7 million, and their increased usage. Financell1 Financial Data (million TRY) Q122 Q422 Q123 y/y% q/q% Revenue 192.8 307.4 317.4 64.6% 3.2% EBITDA 110.9 162.3 133.5 20.4% (17.7%) EBITDA Margin (%) 57.5% 52.8% 42.1% (15.4pp) (10.7pp) Net Income 67.1 98.4 108.9 62.3% 10.7% Financell’s revenue grew by 64.6% year-on-year in Q123. The main factors contributing to this growth were the expansion of the loan portfolio and a higher average interest rate on the portfolio as compared to the same period of last year. Meanwhile, Financell reported EBITDA growth of 20.4% year-on-year, resulting in an EBITDA margin of 42.1% in Q123. The decrease in EBITDA margin was due to higher funding costs compared to the Q122. Financell's net income increased 62.3% year-on-year. Financell’s loan portfolio increased to TRY3.9 billion at the end of Q123. Despite the continued installment limitation on consumer loans for telecom devices, the loan portfolio was supported by higher lending to corporate customers and greater mobility. Accordingly, Financell has extended loans to over 24 thousand corporate customers. Financell's higher loan portfolio, lower receivable sales, and the negative effects of earthquake were the main drivers behind the increase in its cost of risk from 1.0% in Q422 to 2.7% in Q123. (1) Following the change in the organizational structure, the revenues of Turkcell Sigorta Aracılık Hizmetleri A.Ş. (Insurance Agency), which was previously managed under the Financell, has been classified from Financell to "Other" in the Techfin segment as of the first quarter of 2023. Within this scope, all past data have been revised for comparability purposes. Turkcell Group Subscribers Turkcell Group registered subscribers amounted to approximately 54.6 million as of March 31, 2023. This figure is calculated by taking the number of subscribers of Turkcell Turkey, and of each of our subsidiaries. It includes the total number of mobile, fiber, ADSL, cable and IPTV subscribers of Turkcell Turkey, and the mobile subscribers of lifecell, BeST, and Kuzey Kıbrıs Turkcell. Turkcell Group Subscribers Q122 Q422 Q123 y/y% q/q% Turkcell Turkey subscribers (million)1 40.0 41.7 41.7 4.3% - lifecell (Ukraine) 10.2 10.2 10.8 5.9% 5.9% BeST (Belarus) 1.5 1.5 1.5 - - Kuzey Kıbrıs Turkcell 0.6 0.6 0.6 - - Turkcell Group Subscribers (million) 52.3 54.0 54.6 4.4% 1.1% (1) Subscribers to more than one service are counted separately for each service. OVERVIEW OF THE MACROECONOMIC ENVIRONMENT Q122 Q422 Q123 y/y% q/q% GDP Growth (Turkey) 7.6% 3.5% n.a n.a n.a Consumer Price Index (Turkey) (yoy) 61.1% 64.3% 50.5% (10.6pp) (13.8pp) US$ / TRY rate Closing Rate 14.6458 18.6983 19.1460 30.7% 2.4% Average Rate 13.8778 18.6010 18.8577 35.9% 1.4% EUR / TRY rate Closing Rate 16.3086 19.9349 20.8021 27.6% 4.4% Average Rate 15.5203 18.9748 20.2424 30.4% 6.7% US$ / UAH rate Closing Rate 29.2549 36.5686 36.5686 25.0% - Average Rate 28.7685 36.5686 36.5686 27.1% - US$ / BYN rate Closing Rate 2.9732 2.7364 2.8571 (3.9%) 4.4% Average Rate 2.7118 2.5055 2.7505 1.4% 9.8% The foreign exchange rates used in our financial reporting, along with certain macroeconomic indicators, are set out below. RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS: We believe Adjusted EBITDA, among other measures, facilitates performance comparisons from period to period and management decision making. It also facilitates performance comparisons from company to company. Adjusted EBITDA as a performance measure eliminates potential differences caused by variations in capital structures (affecting interest expense), tax positions (such as the impact of changes in effective tax rates on periods or companies) and the age and book depreciation of tangible assets (affecting relative depreciation expense). We also present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors and other interested parties in evaluating the performance of other mobile operators in the telecommunications industry in Europe, many of which present Adjusted EBITDA when reporting their results. Our Adjusted EBITDA definition includes Revenue, Cost of Revenue excluding depreciation and amortization, Selling and Marketing expenses, Administrative expenses and Net impairment losses on financial and contract assets, but excludes finance income and expense, other operating income and expense, investment activity income and expense, share of profit of equity accounted investees and minority interest. Nevertheless, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation from, or as a substitute for analysis of our results of operations, as reported under TFRS. The following table provides a reconciliation of Adjusted EBITDA, as calculated using financial data prepared in accordance with TFRS to net profit, which we believe is the most directly comparable financial measure calculated and presented in accordance with TFRS. Turkcell Group (million TRY) Q122 Q422 Q123 y/y% q/q% Adjusted EBITDA 4,302.0 6,671.5 6,759.2 57.1% 1.3% Depreciation and amortization (2,084.5) (2,515.7) (2,685.8) 28.8% 6.8% EBIT 2,217.5 4,155.8 4,073.4 83.7% (2.0%) Finance income 72.3 (642.4) 4.6 (93.6%) n.m Finance expense (3,110.7) (2,781.8) (2,108.8) (32.2%) (24.2%) Other operating income / (expense) 1,494.1 1,028.9 1,070.6 (28.3%) 4.1% Investment activity income / (expense) 299.2 157.6 510.1 70.5% 223.7% Share of profit of equity accounted investees (23.4) (10.0) 6.4 n.m n.m Consolidated profit before income tax & minority interest 948.9 1,908.0 3,556.2 274.8% 86.4% Income tax expense (146.0) 4,087.3 (739.8) 406.7% (118.1%) Consolidated profit before minority interest 802.9 5,995.3 2,816.4 250.8% (53.0%) NOTICE: This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. This includes, in particular, our targets for revenue, EBITDA and capex for 2023. More generally, all statements other than statements of historical facts included in this press release, including, without limitation, certain statements regarding the launch of new businesses, our operations, financial position and business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as, among others, "will," "expect," "intend," "estimate," "believe", "continue" and “guidance”. Although Turkcell believes that the expectations reflected in such forward-looking statements are reasonable at this time, it can give no assurance that such expectations will prove to be correct. All subsequent written and oral forward-looking statements attributable to us are expressly qualified in their entirety by reference to these cautionary statements. For a discussion of certain factors that may affect the outcome of such forward looking statements, see our Annual Report on Form 20-F for 2022 filed with the U.S. Securities and Exchange Commission, and in particular the risk factor section therein. We undertake no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The Company makes no representation as to the accuracy or completeness of the information contained in this press release, which remains subject to verification, completion and change. No responsibility or liability is or will be accepted by the Company or any of its subsidiaries, board members, officers, employees or agents as to or in relation to the accuracy or completeness of the information contained in this press release or any other written or oral information made available to any interested party or its advisers. ABOUT TURKCELL: Turkcell is a digital operator headquartered in Turkey, serving its customers with its unique portfolio of digital services along with voice, messaging, data and IPTV services on its mobile and fixed networks. Turkcell Group companies operate in 4 countries – Turkey, Ukraine, Belarus, and Northern Cyprus. Turkcell launched LTE services in its home country on April 1st, 2016, employing LTE-Advanced and 3 carrier aggregation technologies in 81 cities. Turkcell offers up to 10 Gbps fiber internet speed with its FTTH services. Turkcell Group reported TRY17.3 billion revenue in Q123 with total assets of TRY109.8 billion as of March 31, 2023. It has been listed on the NYSE and the BIST since July 2000, and is the only NYSE-listed company in Turkey. Read more at www.turkcell.com.tr. Appendix A – Tables Table: Net foreign exchange gain and loss details Million TRY Q122 Q422 Q123 y/y% q/q% Net FX loss before hedging (1,077.5) (383.0) (432.4) (59.9%) 12.9% Swap interest income / (expense) (70.8) 29.0 52.1 n.m 79.7% Fair value gain on derivative financial instruments 58.8 (945.3) (108.2) (284.0%) (88.6%) Net FX gain / (loss) after hedging (1,089.5) (1,299.3) (488.5) (55.2%) (62.4%) Table: Income tax expense details Million TRY Q122 Q422 Q123 y/y% q/q% Current tax expense (157.3) 192.8 (305.5) 94.2% (258.5%) Deferred tax income / (expense) 11.3 3,894.6 (434.3) n.m (111.2%) Income Tax expense (146.0) 4,087.4 (739.8) 406.7% (118.1%) TURKCELL ILETISIM HIZMETLERI A.S. TURKISH ACCOUNTING STANDARDS SELECTED FINANCIALS (TRY Million) Quarter Ended Quarter Ended Year Ended Quarter Ended Mar 31, Dec 31, Dec 31, Mar 31, 2022 2022 2022 2023 7,949.7 12,448.8 40,851.1 13,490.7 1,426.6 1,812.6 6,353.6 1,868.8 352.9 583.2 1,849.1 606.1 965.9 1,199.4 4,824.7 1,310.3 10,695.0 16,043.9 53,878.5 17,275.9 (7,578.0) (10,451.0) (36,788.6) (11,526.4) 3,117.0 5,592.9 17,089.8 5,749.5 (303.7) (473.4) (1,519.0) (560.5) (540.7) (899.8) (2,700.1) (911.8) 1,494.1 1,028.9 6,800.9 1,070.6 3,766.7 5,248.5 19,671.6 5,347.8 (55.1) (63.9) (354.9) (203.9) 299.2 157.6 1,779.9 533.5 - - - (23.4) (23.4) (10.0) (71.4) 6.4 3,987.3 5,332.2 21,025.2 5,660.4 72.3 (642.4) 210.8 4.6 (3,110.7) (2,781.8) (13,699.8) (2,108.8) 948.9 1,908.0 7,536.1 3,556.2 (146.0) 4,087.3 3,516.1 (739.8) 802.9 5,995.3 11,052.2 2,816.4 (0.0) 0.9 1.0 0.2 802.9 5,996.3 11,053.2 2,816.6 0.4 2.7 5.1 1.3 29.1% 34.9% 31.7% 33.3% 4,302.0 6,671.5 21,993.8 6,759.2 2,918.3 6,434.3 16,360.6 5,438.5 1,845.3 4,454.3 10,859.4 3,442.7 - 317.5 317.5 14.4 1,073.1 1,662.5 5,183.6 1,981.4 18,804.0 25,960.7 25,960.7 27,316.6 75,324.6 101,264.8 101,264.8 109,842.8 30,105.2 37,133.1 37,133.1 39,049.2 40,855.4 53,854.4 53,854.4 58,486.4 51,944.9 70,369.8 70,369.8 75,990.3 23,379.7 30,895.1 30,895.1 33,852.5

1 year ago - zacks.com

Here are four top-ranked liquid stocks, Chipotle Mexican Grill (CMG), Meta Platforms (META), Turkcell Iletisim Hizmetleri (TKC) and Sea Limited (SE), which investors can add to their portfolio for solid gains.

1 year ago - businesswire.com

ISTANBUL--(BUSINESS WIRE)--Turkcell (NYSE: TKC, BIST: TCELL) announced that it has filed its Annual Report on Form 20-F for the year ended December 31, 2022 with the United States Securities and Exchange Commission on April 27, 2023. The Company's Form 20-F and complete audited financial statements can be found at: https://www.turkcell.com.tr/en/aboutus/investor-relations/quarterly-results Hard copy versions of the complete audited financial statements are available free of charge upon request.

1 year ago - businesswire.com

ISTANBUL--(BUSINESS WIRE)--Turkcell (NYSE: TKC, BIST: TCELL) announced that it has filed its Annual Report on Form 20-F for the year ended December 31, 2022 with the United States Securities and Exchange Commission on April 27, 2023. The Company's Form 20-F and complete audited financial statements can be found at: https://www.turkcell.com.tr/en/aboutus/investor-relations/quarterly-results Hard copy versions of the complete audited financial statements are available free of charge upon request from Turkcell Investor Relations Department at [email protected] and/or +90 212 313 1888.

1 year ago - zacks.com

Building a portfolio with stocks that have robust liquidity levels will likely work for investors seeking healthy returns. Liquidity measures a company's capability to meet its short-term debt obligations.

1 year ago - zacks.com

Turkcell Iletisim Hizmetleri AS (TKC) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).

1 year ago - businesswire.com

ISTANBUL--(BUSINESS WIRE)--Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) (BIST:TCELL): Please note that all financial data is consolidated and comprises that of Turkcell Iletisim Hizmetleri A.S. (the “Company”, or “Turkcell”) and its subsidiaries and associates (together referred to as the “Group”), unless otherwise stated. We have four reporting segments: "Turkcell Turkey" which comprises our telecom, digital services and digital business services related businesses in Turkey (as used in our previous releases in periods prior to Q115, this term covered only the mobile businesses). All non-financial data presented in this press release is unconsolidated and comprises Turkcell Turkey only figures, unless otherwise stated. The terms "we", "us", and "our" in this press release refer only to Turkcell Turkey, except in discussions of financial data, where such terms refer to the Group, and except where context otherwise requires. “Turkcell International” which comprises all of our telecom and digital services related businesses outside of Turkey. “Techfin” which comprises all of our financial services businesses. “Other” which mainly comprises our non-group call center and energy businesses, retail channel operations, smart devices management and consumer electronics sales through digital channels and intersegment eliminations. "Turkcell Turkey" which comprises our telecom, digital services and digital business services related businesses in Turkey (as used in our previous releases in periods prior to Q115, this term covered only the mobile businesses). All non-financial data presented in this press release is unconsolidated and comprises Turkcell Turkey only figures, unless otherwise stated. The terms "we", "us", and "our" in this press release refer only to Turkcell Turkey, except in discussions of financial data, where such terms refer to the Group, and except where context otherwise requires. “Turkcell International” which comprises all of our telecom and digital services related businesses outside of Turkey. “Techfin” which comprises all of our financial services businesses. “Other” which mainly comprises our non-group call center and energy businesses, retail channel operations, smart devices management and consumer electronics sales through digital channels and intersegment eliminations. In this press release, a year-on-year comparison of our key indicators is provided and figures in parentheses following the operational and financial results for December 31, 2022 refer to the same item as at December 31, 2021. For further details, please refer to our consolidated financial statements and notes as at and for December 31, 2022, which can be accessed via our website in the investor relations section (www.turkcell.com.tr). Selected financial information presented in this press release for the fourth quarter and for the full year of 2021 and 2022 is based on Turkish Accounting Standards (TAS) / Turkish Financial Reporting Standards (TFRS) figures in TRY terms unless otherwise stated. In the tables used in this press release totals may not foot due to rounding differences. The same applies to the calculations in the text. Year-on-year and quarter-on-quarter percentage comparisons appearing in this press release reflect mathematical calculation. Our Initial Assessment of the Earthquakes’ Impact On February 6th, 2023, two high-magnitude earthquakes, epicentered in Kahramanmaraş yet impacting 11 cities across Southeastern Türkiye, have dramatically affected the lives of 14 million people. As Turkcell, we took immediate action after the quakes as quickly and efficiently as possible to ensure the safety of our colleagues and to provide communication to our 6.5 million subscribers in the region. On the very first day, almost half of our 3,300 base stations in the region was out of service mainly due to power outage and destruction. We rapidly deployed more than 1,200 network personnel to the region to make the necessary repairs. We swiftly reactivated 99% of our sites by deploying around 250 mobile base stations and 1,400 electric generators to compensate for one tower and around 150 base stations that were destroyed. We began to provide Wi-Fi services via mobile base stations in tent and container areas. While providing free communication packages to subscribers, healthcare personnel and emergency teams in the region, we have also provided 1-month of free communication to subscribers in the state of emergency region. Currently, 68% of our exclusive stores in the region are fully operational and all our services continue to run uninterruptedly through our digital channels and containers we have deployed in the area. We are deeply saddened by the lives lost, which include 21 of our colleagues. We will continue providing aid and support for the families of our colleagues who lost their lives, and for our citizens affected by the earthquake, as we have done since the first day of the disaster. We have prepared our 2023 guidance1 considering all of the above developments, and based upon the initial impact assessment of the earthquake on our business. Accordingly, we target revenue growth of between 55-57%, an EBITDA of around TRY34 billion and an operational capex over sales ratio2 of around 22%. We estimate a negative revenue impact of around TRY1.5 billion. This arises from the steps we have taken to alleviate pressure on our affected subscribers, such as free communication packages, the cancellation of line opening-closing fees, the suspension fees, and from shrinking customer demand in the longer term triggered by the earthquakes’ impact on people’s purchasing power. In addition, we expect an impact of around TRY400 million on operational expenses due to personnel, infrastructure, and network expenses that we have incurred to date, and will continue to incur in the region. We expect a replacement CAPEX of circa TRY900 million for mobile and fixed network investments, particularly in the regions that have suffered extensive destruction. These assessments include the effect of the earthquakes based on our initial impact analysis; and all these estimations are already considered in the 2023 guidance. However, potential measures that may arise subsequent to this announcement and other developments over time may further affect our guidance. We will continue to provide information as such developments occur over the coming periods. (1) Please note that this section contains forward-looking statements based on our initial impact assessment of the earthquake. Factors such as changes in the state of emergency measures and potential aftershocks, as well as the risk factors disclosed in our Annual Report on Form 20-F for 2021 filed with U.S. Securities and Exchange Commission, could cause actual impacts to differ materially from our expectations. (1) 2023 guidance figures are based on TFRS, and do not include the effects of a likely adoption of inflationary accounting in accordance with IAS 29. (2) Excluding license fee NOTICE We are publishing financial statements as of December 31, 2022 prepared in accordance with Turkish Accounting Standards/Turkish Financial Reporting Standards (“TAS”/“TFRS”) only. These standards are issued by the Public Oversight Accounting and Auditing Standards Authority (“POA”) and are in full compliance with IAS/IFRS Standards. In an announcement published by the POA on January 20, 2022, it is stated that TAS 29 “Financial Reporting in Hyperinflationary Economies” does not apply to TFRS financial statements as of December 31, 2021. Since then and as of the preparation date of our latest consolidated financial statements, no new statement has been made by the POA about TAS 29 application. Consequently, no TAS 29 adjustment was made to our consolidated financial statements. Financial statements prepared in accordance with IFRS should apply IAS 29 “Financial Reporting in Hyperinflationary Economies” as of December 31, 2022. In this context, financial statements prepared in accordance with IFRS and TFRS would have significant differences and would not be comparable as of December 31, 2022. We intend to publish IFRS financial statements, compliant with IAS 29 to the extent that it remains applicable, with our Annual Report on Form 20-F that will be filed to the U.S. Securities and Exchange Commission. Although we have not prepared a detailed comparison of differences between IFRS (unadjusted according to IAS 29) and TFRS, we have noted in our past financial statements that the most significant differences have appeared in the lines Other Operating Income/Expense, Finance Income/Expense, and Investment Activity Income/Expense. In the past, revenue, net income and EBITDA have generally not differed. While no assurance can be given that this will be the case for Q4 2022, we are not at present aware of changes that would cause other significant differences, other than those resulting from the application of IAS 29. FINANCIAL HIGHLIGHTS TRY million Q421 Q422 y/y% FY21 FY22 y/y% Revenue 10,192 16,044 57.4% 35,921 53,878 50.0% EBITDA1 4,212 6,671 58.4% 15,014 21,994 46.5% EBITDA Margin (%) 41.3% 41.6% 0.3pp 41.8% 40.8% (1.0pp) EBIT2 2,136 4,156 94.6% 7,722 12,516 62.1% EBIT Margin (%) 21.0% 25.9% 4.9pp 21.5% 23.2% 1.7pp Net Income 1,385 5,996 333.1% 5,031 11,053 119.7% Net Income Exc. Fixed Asset Revaluation Net Impact3 354 1,903 437.4% 3,509 6,445 83.7% FULL YEAR HIGHLIGHTS Solid financial performance: Group revenues up 50.0% supported mainly by accelerated ARPU growth, and strong subscriber net add performance as well as the contribution of the digital business services and techfin business EBITDA up 46.5% leading to an EBITDA margin of 40.8%; EBIT up 62.1% resulting in an EBIT margin of 23.2% Net income up 119.7% to TRY11.1 billion including a major one-off (net TRY4.6 billion deferred tax income impact) resulting from fixed asset revaluation; without the one-off net income rose 83.7% to TRY6.4 billion Free cash flow4 generation of TRY1.7 billion; net leverage5 level at 0.9x; net short FX position of US$25 million Group revenues up 50.0% supported mainly by accelerated ARPU growth, and strong subscriber net add performance as well as the contribution of the digital business services and techfin business EBITDA up 46.5% leading to an EBITDA margin of 40.8%; EBIT up 62.1% resulting in an EBIT margin of 23.2% Net income up 119.7% to TRY11.1 billion including a major one-off (net TRY4.6 billion deferred tax income impact) resulting from fixed asset revaluation; without the one-off net income rose 83.7% to TRY6.4 billion Free cash flow4 generation of TRY1.7 billion; net leverage5 level at 0.9x; net short FX position of US$25 million Robust operational momentum continued: Turkcell Turkey subscriber base up by 2.3 million net additions; 1.9 million mobile postpaid net additions the highest performance since 2009 220 thousand fixed subscriber net additions; 234 thousand fiber net additions, best net add performance ever 887 thousand new fiber homepasses Mobile ARPU6 growth of 40.3%; residential fiber ARPU growth of 26.5% Turkcell Turkey subscriber base up by 2.3 million net additions; 1.9 million mobile postpaid net additions the highest performance since 2009 220 thousand fixed subscriber net additions; 234 thousand fiber net additions, best net add performance ever 887 thousand new fiber homepasses Mobile ARPU6 growth of 40.3%; residential fiber ARPU growth of 26.5% 2023 guidance7; revenue growth target of between 55-57%, EBITDA target of around TRY34 billion, and operational capex over sales ratio8 target of around 22% FOURTH QUARTER HIGHLIGHTS Strong financial results: Group revenues up 57.4% on the back of the strong ARPU performance of Turkcell Turkey and contribution from digital business services and techfin business EBITDA up 58.4% leading to an EBITDA margin of 41.6%; EBIT up 94.6% resulting in an EBIT margin of 25.9% Net income up 333.1% to TRY6.0 billion (including TRY4.1 billion net impact of tax income resulting from fixed asset revaluation) Group revenues up 57.4% on the back of the strong ARPU performance of Turkcell Turkey and contribution from digital business services and techfin business EBITDA up 58.4% leading to an EBITDA margin of 41.6%; EBIT up 94.6% resulting in an EBIT margin of 25.9% Net income up 333.1% to TRY6.0 billion (including TRY4.1 billion net impact of tax income resulting from fixed asset revaluation) Robust operational performance maintained: Quarterly mobile postpaid subscriber net additions of 599 thousand; postpaid subscriber share at 68.1% of mobile subscriber base Quarterly fixed subscriber net additions of 69 thousand Year-on-year mobile ARPU5 increased 55.6% mainly driven by price adjustments, upsell to higher tariffs, and higher postpaid share Residential fiber ARPU growth of 33.3% year-on-year mainly by price adjustments and upsell efforts, as well as increased IPTV penetration Average monthly data usage of 4.5G subscribers at 16.9 GB in Q422; smartphone penetration at 87% Digital channels’ share9 in sales at 24.9% Quarterly mobile postpaid subscriber net additions of 599 thousand; postpaid subscriber share at 68.1% of mobile subscriber base Quarterly fixed subscriber net additions of 69 thousand Year-on-year mobile ARPU5 increased 55.6% mainly driven by price adjustments, upsell to higher tariffs, and higher postpaid share Residential fiber ARPU growth of 33.3% year-on-year mainly by price adjustments and upsell efforts, as well as increased IPTV penetration Average monthly data usage of 4.5G subscribers at 16.9 GB in Q422; smartphone penetration at 87% Digital channels’ share9 in sales at 24.9% (1) EBITDA is a non-GAAP financial measure. See page 20 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income. (2) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses. (3) Excludes the impact of fixed assets revaluation. Please refer to table on page 22 for details. (4) Free cash flow calculation includes EBITDA and the following items as per Turkish Financial Reporting Standartds (TFRS) cash flow statement; acquisition of property, plant and equipment, acquisition of intangible assets, change in operating assets/liabilities, payment of lease liabilities and income tax paid. (5) Starting from Q421, we have revised the definition of our net debt calculation to include "financial assets” reported under current and non-current assets. Required reserves held in CBRT balances are also considered in net debt calculation. We believe that these assets are highly liquid and can be easily converted to cash without significant change in value. (6) Excluding M2M (7) Please note that this section contains forward-looking statements based on our initial impact assessment of the earthquake. Factors such as changes in the state of emergency measures and potential aftershocks, as well as the risk factors disclosed in our Annual Report on Form 20-F for 2021 filed with U.S. Securities and Exchange Commission, could cause actual impacts to differ materially from our expectations. (7) 2023 guidance figures are based on TFRS, and do not include the effects of a likely adoption of inflationary accounting in accordance with IAS 29. (8) Excluding license fee (9) Share of all sales from digital channels (including voice, data, services & smart devices) in Turkcell Turkey consumer sales (excluding fixed business) and equipment related revenues in other segment. For further details, please refer to our consolidated financial statements and notes as at December 31, 2022 via our website in the investor relations section (www.turkcell.com.tr). COMMENTS BY CEO, MURAT ERKAN The disaster of the century… Two devastating earthquakes, epicentered in Kahramanmaraş, with magnitudes of 7.7 and 7.6 have marked themselves as the greatest disaster of Türkiye’s modern history. The earthquakes that struck Türkiye and Syria have claimed thousands of lives and placed our country into deep mourning. We wish Allah’s mercy upon the victims, among whom were 21 of our colleagues. We offer our sincere and heartfelt condolences to those who lost their families and loved ones. From the first moment of the earthquake, Turkcell made an initial assessment to swiftly take all necessary actions. On the first day of the earthquake, we lost approximately half of the 3,300 sites in the region. We deployed mobile base stations, generators and batteries to the region and within four days increased our active site rate to over 90%. We provided free voice, SMS, and internet packages to close to 6.5 million subscribers in the earthquake region. Additionally, we provided a “Kahraman Paketi (Hero Package)” to meet the needs of emergency team and health care professionals. We sustained free Wi-Fi and charging stations in the region and supported victims with a donation commitment of TRY3.5 billion to the “Türkiye Tek Yürek (Türkiye One Heart)” quake relief campaign. Being Türkiye’s Turkcell, we will remain by our people as always. In 2022, as inflationary pressures topped the agenda, the tightening policies of Central Banks against inflation and concerns over recession were in focus. Energy and commodity prices rose massively in the wake of the Russia-Ukraine war. As we saw an easing of the pandemic’s impact on Türkiye, the agenda turned to deterioration in pricing behaviour and the expectation of high inflation propping up consumer spending. Strong tourism inflows that returned to pre-pandemic levels supported the current account balance, as well as the telecommunication sector. Best mobile postpaid subscriber net addition of the past 13 years In 2022 we outperformed our expectations. At the start of the year we targeted adding 1 million net subscribers and ended up exceeding 2.3 million net subscriber additions thanks to our value propositions that meet our customers’ needs, increased tourism activity and strong demand from the corporate segment. By keeping our focus of enlarging our mobile postpaid base which provides a higher revenue contribution, we added 1.9 million subscribers, the record of the past 13 years. Accordingly, the postpaid share in the mobile base increased to 68.1%. The mobile churn rate slightly increased to 2.7%, as we deactivated a higher number of inactive subscribers in the fourth quarter, since Türkiye had a greater tourist and visitor inflow in 2022 compared to the previous year. The Mobile Number Portability (MNP) market, which was rationalized as our sequential price increases were followed by competitors throughout the year, was triggered by aggressive price offerings in the market during the last quarter of the year. With an awareness of Türkiye lagging behind OECD countries in terms of speed and capacity of fixed broadband services, we continued to invest to our fiber infrastructure to provide fiber services that our customers demand. In 2022, we reached 887 thousand homes with our end-to-end fiber, and total fiber homepasses reached 5.4 million. For the year we had a record net fiber add of 234 thousand subscribers. Thanks to the increased penetration of our complementary, content-rich TV+ service, and our superior customer experience, the fiber churn rate decreased to an all-time low of 1.1%. Moreover, we sustained our focus on high speed internet packages. On the fiber subscriber acquisition side, 37% of the subscribers preferred speeds of 100 Mbps and above. In line with our inflationary pricing policy, we have made sequential price adjustments since December 2021, where inflation began to rise. We have emphasized that price adjustments would be reflected in ARPU growth with a lag, due to the contract-based nature of our business. Accelerating from the first quarter of the year, Mobile ARPU1 rose 55.6%, and Residential Fiber ARPU rose 33.3% year-over-year in the fourth quarter. For 2022, respective ARPU growth levels were 40.3% and 26.5%. Mobile ARPU growth was driven by sequential price adjustments, a higher postpaid subscriber base and upsell efforts, whereas Fiber ARPU growth was sustained by price adjustments, higher speed package preference of new subscribers in particular and increasing IPTV penetration. Our consolidated revenue increased by 50.0% year-over-year in 2022 to TRY53.9 billion. Rising 46.5% we registered TRY22.0 billion EBITDA2. Thanks to our strong operational performance and the contribution of TRY4.6 billion net deferred tax income arising from fixed asset revaluation, net income realized at TRY11.1 billion. The support of our strategic focus areas continues In 2022, the standalone paid users3 of our digital services and solutions, which are developed by Turkcell Engineers, increased by 1.1 million year-on-year to 5.1 million, while standalone revenues rose 30.3%. Digital TV platform TV+ continues to differentiate itself from the peers. According to 3rd quarter ICTA data, the pay TV market reached 7.7 subscribers, where TV+, with its 15.9% market share, is the only provider to have steadily increased its market share since the second quarter of 2014. This performance is attributable to its extensive sales network, strong brand recognition and rich content. IPTV subscribers increased by 200 thousand year-on-year to 1.3 million while OTT TV users reached 1.0 million. With an effort to increase the international penetration of BiP, our instant messaging app, we entered the 120 million mobile user Pakistani market through a partnership agreement with “Jazz” in December. Currently, 37% of 17.9 million BiP users3 are from global markets. The revenues of our digital business services, the greatest supporter of the digital transformation of its customers, rose 88.3% year-on-year, exceeding TRY4.3 billion. End-to-end tailored digital transformation projects, data center and cloud storage services were the main focus areas contributing to growth. While we have signed 2,800 system integrator and managed service projects to date, we have a contract value (backlog) from system integration projects of TRY2.8 billion to be realized beyond 2022, doubling the level of last year. Serving with Paycell and Financell brands, our techfin segment sustained its strong contribution to topline growth this year. In 2022, Financell’s revenue rose 59.4% to TRY980 million, while its loan portfolio reached TRY3.4 billion up from last year’s TRY2.1 billion. With its wide-range product portfolio, Paycell serves 7.7 million users3, and its revenues rose 87.2% to TRY877 million. Mobile payment services “Pay Later”, driving 66% of the topline, was the main driver of the growth, while POS solutions, accelerating its reach from the last quarter of 2021, was also supportive. During the year, Paycell launched new services almost in every vertical of the Turkish techfin ecosystem. And as of December, its users are able to invest in shares listed on the NYSE and Nasdaq Stock Exchange via the Paycell application. We entered 2023 with uncertainties As we left 2022 behind, having experienced consecutive macroeconomic and political challenges, we are entering 2023 with hopes of healing our wounds caused by the greatest disaster of the past century. Yet 2023 comes with series of challenges: the global economies face recession concerns arising in the post pandemic period, political uncertainty caused by the ongoing war in the central-Europe, energy, commodity and labor cost pressure on producer costs, and domestically, a much busier political agenda. Therefore, we foresee that our guidance4 may change in the light of changing conditions. At this stage, we target revenue growth of 55-57% and EBITDA of around TRY34 billion. We expect an operational CAPEX over sales ratio of around 22%. I would like to thank all of my colleagues those who have given their all in tackling the impact of the devastating earthquakes. As Türkiye’s Turkcell, we will continue working hard and heal our wounds together. (1) Excluding M2M (2) EBITDA is a non-GAAP financial measure. See page 20 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income (3) 3-month active (4) Please note that this section contains forward-looking statements based on our initial impact assessment of the earthquake. Factors such as changes in the state of emergency measures and potential aftershocks, as well as the risk factors disclosed in our Annual Report on Form 20-F for 2021 filed with U.S. Securities and Exchange Commission, could cause actual impacts to differ materially from our expectations. (4) 2023 guidance figures are based on TFRS, and do not include the effects of a likely adoption of inflationary accounting in accordance with IAS 29. FINANCIAL AND OPERATIONAL REVIEW Financial Review of Turkcell Group Profit & Loss Statement (million TRY) Quarter Year Q421 Q422 y/y% FY21 FY22 y/y% Revenue 10,191.5 16,043.9 57.4% 35,920.5 53,878.5 50.0% Cost of revenue1 (5,019.9) (7,935.3) 58.1% (17,938.1) (27,310.6) 52.2% Cost of revenue1/Revenue (49.3%) (49.5%) (0.2pp) (49.9%) (50.7%) (0.8pp) Gross Margin1 50.7% 50.5% (0.2pp) 50.1% 49.3% (0.8pp) Administrative expenses (276.8) (473.4) 71.0% (919.0) (1,519.0) 65.3% Administrative expenses/Revenue (2.7%) (3.0%) (0.3pp) (2.6%) (2.8%) (0.2pp) Selling and marketing expenses (576.6) (899.8) 56.1% (1,778.5) (2,700.1) 51.8% Selling and marketing expenses/Revenue (5.7%) (5.6%) 0.1pp (5.0%) (5.0%) - Net impairment losses on financial and contract assets (106.7) (63.9) (40.1%) (271.2) (354.9) 30.9% EBITDA2 4,211.6 6,671.5 58.4% 15,013.8 21,993.8 46.5% EBITDA Margin 41.3% 41.6% 0.3pp 41.8% 40.8% (1.0pp) Depreciation and amortization (2,075.5) (2,515.7) 21.2% (7,291.9) (9,478.0) 30.0% EBIT3 2,136.1 4,155.8 94.6% 7,721.9 12,515.8 62.1% EBIT Margin 21.0% 25.9% 4.9pp 21.5% 23.2% 1.7pp Net finance income / (expense) (6,645.2) (3,424.2) (48.5%) (10,144.6) (13,489.0) 33.0% Finance income 2,569.6 (642.4) (125.0%) 3,051.1 210.8 (93.1%) Finance expense (9,214.8) (2,781.8) (69.8%) (13,195.7) (13,699.8) 3.8% Other income / (expense) 4,355.8 1,028.9 (76.4%) 6,409.6 6,800.9 6.1% Investment activity income / (expense) 474.7 157.6 (66.8%) 464.1 1,779.9 283.5% Non-controlling interests (0.1) 0.9 n.m (0.2) 1.0 n.m Share of profit of equity accounted investees 63.6 (10.0) (115.7%) 90.1 (71.4) (179.3%) Income tax expense 999.7 4,087.3 308.9% 490.2 3,516.1 617.3% Net Income 1,384.6 5,996.3 333.1% 5,031.1 11,053.2 119.7% (1) Excluding depreciation and amortization expenses. (2) EBITDA is a non-GAAP financial measure. See page 20 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income. (3) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses. Revenue of the Group grew by 57.4% year-on-year in Q422. Turkcell Turkey’s growing customer base was the main driver of this performance with strong ARPU growth as a result of price adjustments to reflect inflationary impacts, larger postpaid subscriber base, and upsell efforts. Solid demand for digital business services and techfin also contributed to revenue growth. Turkcell Turkey revenues, comprising 78% of Group revenues, rose 61.9% year-on-year in Q422 to TRY12,449 million (TRY7,689 million). - Consumer segment revenues grew 65.2% year-on-year on the back of a larger subscriber base and price adjustments to reflect inflationary impacts. - Corporate segment revenues rose 75.8% year-on-year supported by the strong momentum of digital business services, which grew 86.7% year-on-year. - Standalone digital services revenues registered as part of consumer and corporate segments grew 51.0% year-on-year in Q422. The increased number of stand-alone paid users and price adjustments of services were the main drivers of this growth. Similar to the previous three quarters, in Q422 digital services revenues growth was negatively impacted by regulatory decision that amended the usage conditions of our voicemail service, the revenues of which are reported under digital services, as of December 1st, 2021. Excluding this impact, growth would have been 69%. - Wholesale revenues rose 35.9% year-on-year to TRY934 million (TRY687 million), mainly due to customers’ data capacity upgrades and the positive impact of currency movements. Turkcell International revenues, comprising 11% of Group revenues, rose 40.9% year-on-year to TRY1,813 million (TRY1,286 million) mainly due to lifecell’s performance and positive currency effects. Techfin segment revenues, comprising 4% of Group revenues, rose 76.8% year-on-year to TRY583 million (TRY330 million). This was driven by a 93.6% rise in Paycell revenues and 64.4% growth the finance company, Financell. Please refer to the Techfin section for details. Other subsidiaries' revenues, at 7% of Group revenues, including mainly non-group call center and energy business revenues, digital channels, and consumer electronics sales revenues, increased 35.4% year-on-year to TRY1,199 million (TRY886 million). For the full year, Turkcell Group revenues rose 50.0%. Turkcell Turkey revenues grew 50.1% to TRY40,851 million (TRY27,224 million). - Consumer business rose 47.9% driven mainly by strong subscriber net additions both in mobile and fixed segments, price adjustments and upsell efforts. - Corporate revenues rose 58.3% mainly supported by digital business services revenue growth of 88.3%. - Standalone digital services revenues from consumer and corporate segments grew 30.3% driven mainly by expanding standalone paid user base. - Wholesale revenues grew 72.7% to TRY3,285 million (TRY1,903 million). Turkcell International revenues rose 69.4% to TRY6,354 million (TRY3,750 million). Techfin segment revenues rose 71.9% to TRY1,849 million (TRY1,076 million). Other subsidiaries’ revenues were at TRY4,825 million (TRY3,871 million), indicating a 24.6% growth. Cost of revenue (excluding depreciation and amortization) increased to 49.5% (49.3%) as a percentage of revenues in Q422. This was driven mainly by the increase in radio expenses (1.8pp) and other cost items (1.3pp), despite the decline in interconnection cost (1.6pp) and cost of goods sold (1.3pp) as a percentage of revenues. For the full year, cost of revenue (excluding depreciation and amortization) rose to 50.7% (49.9%) as a percentage of revenues. This was due mainly to the rise in radio expenses (2.0pp) and other cost items (1.7pp), despite the decline in cost of goods sold (1.7pp) and interconnection expenses (1.2pp) as a percentage of revenues. Administrative expenses increased to 3.0% (2.7%) as a percentage of revenues in Q422. For the full year, administrative expenses were at 2.8% (2.6%) as a percentage of revenues. Selling and marketing expenses decreased to 5.6% (5.7%) as a percentage of revenues in Q422. This was driven mainly by the decline in marketing expenses (0.2pp) despite the rise in selling expenses (0.1pp) as a percentage of revenues. For the full year, selling and marketing expenses were at 5.0% (5.0%) as a percentage of revenues. Net impairment losses on financial and contract assets was at 0.4% (1.0%) as a percentage of revenues in Q422. For the full year, net impairment losses on financial and contract assets was at 0.7% (0.8%) as a percentage of revenues. EBITDA1 rose by 58.4% year-on-year in Q422 leading to an EBITDA margin of 41.6% (41.3%). (1) EBITDA is a non-GAAP financial measure. See page 20 for the explanation of how we calculate adjusted EBITDA and its reconciliation to net income - Turkcell Turkey’s EBITDA rose 60.2% to TRY5,208 million (TRY3,252 million) leading to an EBITDA margin of 41.8% (42.3%). - Turkcell International EBITDA increased 46.9% to TRY923 million (TRY628 million) driving an EBITDA margin of 50.9% (48.8%) on 2.1pp improvement. - Techfin segment EBITDA rose 42.7% to TRY274 million (TRY192 million) with an EBITDA margin of 47.0% (58.2%). - The EBITDA of other subsidiaries increased 90.3% to TRY267 million (TRY140 million). For the full year, EBITDA grew 46.5% resulting in an EBITDA margin of 40.8% (41.8%). - Turkcell Turkey’s EBITDA rose 41.3% to TRY17,197 million (TRY12,168 million) leading to an EBITDA margin of 42.1% (44.7%). - Turkcell International EBITDA increased 76.8% to TRY3,233 million (TRY1,828 million) driving an EBITDA margin of 50.9% (48.8%) on 2.1pp improvement. - Techfin segment EBITDA rose 41.1% to TRY902 million (TRY639 million) with an EBITDA margin of 48.8% (59.4%). - The EBITDA of other subsidiaries rose 74.9% to TRY662 million (TRY379 million). Depreciation and amortization expenses increased 21.2% year-on-year in Q422. For the full year depreciation and amortization expenses increased 30.0%. Net finance expense decreased to TRY3,424 million (TRY6,645 million) in Q422. This was mainly driven by lower FX losses. For the full year, net finance expense increased to TRY13,489 million (TRY10,145 million) mainly due to lower fair value gain on derivate instruments compared to FY21. See Appendix A for details of net foreign exchange gain and loss. Net other operating income decreased to TRY1,029 million (TRY4,356 million) in Q422. For the full year, net other operating income increased to TRY6,801 million (TRY6,410 million) mainly due to interest income from time deposits. See Appendix A for details of net foreign exchange gain and loss. Net investment activity income was TRY158 million in Q422 compared to TRY475 million in Q421. For the full year, net investment activity income increased to TRY1,780 million (TRY464 million). This was driven mainly by the fair value difference recognized on currency-protected time deposits. Income tax expense: The deferred tax income of TRY3,895 million (TRY1,016 million) and positive impact of current tax expense of TRY193 million were reported, leading to an income tax gain of TRY4,087 million in Q422. For the full year, deferred tax income of TRY4,047 million and current tax expense of TRY531 million were reported, leading to an income tax gain of TRY3,516 million. Please note that in Q422, we made use of the right introduced by Law No. 7338, which allows the revaluation of properties and depreciable economic assets under certain conditions. This resulted in an impact on the deferred tax asset reported in Q422. For the full year, net impact was at TRY4.6 billion. Please refer to our consolidated financial statements and notes as at December 31, 2022 for details. Net income of the Group increased by 333.1% to TRY5,996 million (TRY1,385 million) in Q422. This resulted mainly from strong operational performance and the positive impact of deferred tax income relating to the revaluation of assets as explained above. For the full year, group net income rose 119.7% to TRY11,053 million (TRY5,031 million) on the back of strong operational performance and the deferred tax income impact despite lower finance income. Without the deferred tax income impact, group net income is TRY6,445 million. Please note that in FY22 an impairment charge of TRY214 million has been recognized on the assets of Ukraine in territories under the control of Ukraine but not operating for more than 92 days and those in territories invaded by Russia. Total cash & debt: Consolidated cash as of December 31, 2022 increased to TRY25,961 million from TRY24,344 million as of September 30, 2022. This was driven mainly by the positive impact of currency movements. Excluding FX swap transactions, 51% of our cash is in US$, 15% in EUR, and 32% in TRY. Consolidated debt as of December 31, 2022 increased to TRY53,854 million from TRY51,922 million as of September 30, 2022 due mainly to the impact of currency movements. Please note that TRY3,055 million of our consolidated debt is comprised of lease obligations. Please note that 46% of our consolidated debt is in US$, 26% in EUR, 3% in CNY, 5% in UAH, and 19% in TRY. Net debt1 as of December 31, 2022 was at TRY20,838 million with a net debt to EBITDA ratio of 0.9 times. Excluding finance company consumer loans, our telco only net debt was at TRY17,473 million with a leverage of 0.8 times. Turkcell Group had a short FX position of US$25 million as at the end of the year (Please note that this figure takes hedging portfolio and advance payments into account). The short FX position of US$25 million is in line with our FX neutral definition, which is between -US$200 million and +US$200 million. Capital expenditures: Capital expenditures, including non-operational items, amounted to TRY6,434 million in Q422. For the full year, capital expenditures including non-operational items were at TRY16,361 million. For Q422 and the full year, operational capital expenditures (excluding license fees) at the Group level were at 27.8% and 20.2% of total revenues, respectively. Capital expenditures (million TRY) Quarter Year Q421 Q422 FY21 FY22 Operational Capex 2,686.3 4,454.3 7,629.8 10,859.4 License and Related Costs - 317.5 - 317.5 Non-operational Capex (Including IFRS15 & IFRS16) 1,611.1 1,662.5 3,849.6 5,183.6 Total Capex 4,297.4 6,434.3 11,479.4 16,360.6 (1) Starting from Q421, we have revised the definition of our net debt calculation to include "financial assets” reported under current and non-current assets. Required reserves held in CBRT balances are also considered in net debt calculation. We believe that these assets are highly liquid and can be easily converted to cash without significant change in value. Summary of Operational Data Quarter Year Q421 Q422 y/y % FY21 FY22 y/y % Number of subscribers (million) 39.4 41.7 5.8% 39.4 41.7 5.8% Mobile Postpaid (million) 23.7 25.6 8.0% 23.7 25.6 8.0% Mobile M2M (million) 3.3 4.0 21.2% 3.3 4.0 21.2% Mobile Prepaid (million) 12.0 12.0 - 12.0 12.0 - Fiber (thousand) 1,887.8 2,121.8 12.4% 1,887.8 2,121.8 12.4% ADSL (thousand) 754.9 751.4 (0.5%) 754.9 751.4 (0.5%) Superbox (thousand)1 603.6 670.7 11.1% 603.6 670.7 11.1% Cable (thousand) 54.6 43.9 (19.6%) 54.6 43.9 (19.6%) IPTV (thousand) 1,082.2 1,281.7 18.4% 1,082.2 1,281.7 18.4% Churn (%)2 Mobile Churn (%) 2.5% 2.7% 0.2pp 2.0% 2.0% - Fixed Churn (%) 1.6% 1.3% (0.3pp) 1.5% 1.4% (0.1pp) ARPU (Average Monthly Revenue per User) (TRY) Mobile ARPU, blended 54.6 83.8 53.5% 50.5 70.0 38.6% Mobile ARPU, blended (excluding M2M) 59.5 92.6 55.6% 54.9 77.0 40.3% Postpaid 68.2 101.6 49.0% 62.8 84.7 34.9% Postpaid (excluding M2M) 78.3 118.7 51.6% 71.7 98.4 37.2% Prepaid 28.6 47.9 67.5% 26.9 40.5 50.6% Fixed Residential ARPU, blended 82.2 110.5 34.4% 77.9 98.7 26.7% Residential Fiber ARPU 83.0 110.6 33.3% 78.4 99.2 26.5% Average mobile data usage per user (GB/user) 13.3 15.7 18.0% 13.3 14.7 10.5% Mobile MoU (Avg. Monthly Minutes of usage per subs) blended 548.7 533.6 (2.8%) 551.2 546.4 (0.9%) (1) Superbox subscribers are included in mobile subscribers. (2) Churn figures represent average monthly churn figures for the respective quarters. Turkcell Turkey subscriber base grew by 2.3 million net additions in FY22 to 41.7 million, thanks to our customer-centric strategy and differentiated value proposition offered to customers. In addition, we achieved and doubled our 1 million net subscriber additions target for the year on the back of our diversified solutions that meet customer needs and our innovative campaigns that facilitate their lives. On the mobile front, our subscriber base expanded to 37.5 million on 1.9 million net annual additions in FY22. This was driven by net additions from the postpaid subscriber base, which reached 68.1% (66.4%) of total mobile subscribers. We had 599 thousand quarterly postpaid net additions in Q422. In FY22, we had a net 10 thousand decline in our prepaid subscribers, due mainly to the disconnection of 430 thousand inactive prepaid subscribers during the quarter in line with our churn policy. On the fixed front, our fiber subscriber base grew by 58 thousand net additions in Q422. In FY22, we had 234 thousand fiber net additions, making the best net add performance ever. This resulted mainly by focus on fiber network investments, and the strong demand for high-speed and quality broadband connections. In FY22, we had a net 14 thousand decline in our ADSL and cable subscribers. Total fixed subscribers reached 2.9 million on 69 thousand quarterly and 220 thousand annual net additions. Meanwhile, IPTV customers reached 1.3 million on 51 thousand quarterly and 200 thousand annual net additions. The average monthly mobile churn rate was at 2.7% in Q422, and 2.0% in FY22. Meanwhile, the average monthly fixed churn rate was at 1.3% in Q422 and 1.4% in FY22 on the back of our superior customer experience resulting from the speed and quality we offer on our fiber infrastructure which plays an important role in maintaining a healthy churn level. Our mobile ARPU (excluding M2M) rose 55.6% year-on-year in Q422 driven mainly by price adjustments to reflect inflationary impacts and upsell to higher tariffs, as well as larger postpaid subscriber base. Mobile ARPU (excluding M2M) grew 40.3% for the full year mainly on the same drivers. Our residential fiber ARPU growth was 33.3% year-on-year in Q422. This resulted mainly from price adjustments, upsell to higher tariffs, and higher IPTV penetration at 67.0% in Q422. For the full year, fiber residential ARPU rose 26.5%. Average monthly mobile data usage per user rose 10.5% in FY22 to 14.7 GB with the increasing number and data consumption of 4.5G users. Accordingly, the average mobile data usage of 4.5G users reached 16.0 GB in FY22. Total smartphone penetration on our network reached 87% in Q422. 93% of those smartphones were 4.5G compatible. TURKCELL INTERNATIONAL lifecell1 Financial Data Quarter Year Q421 Q422 y/y% FY21 FY22 y/y% Revenue (million UAH) 2,406.4 2,606.8 8.3% 8,482.7 9,411.7 11.0% EBITDA (million UAH) 1,319.1 1,505.6 14.1% 4,751.2 5,446.5 14.6% EBITDA margin (%) 54.8% 57.8% 3.0pp 56.0% 57.9% 1.9pp Net income (million UAH) 237.9 408.8 71.8% 610.9 972.3 59.2% Capex (million UAH) 1,319.3 997.4 (24.4%) 3,593.6 3,007.6 (16.3%) Revenue (million TRY) 996.6 1,326.1 33.1% 2,805.7 4,773.6 70.1% EBITDA (million TRY) 544.5 765.8 40.6% 1,566.4 2,763.4 76.4% EBITDA margin (%) 54.6% 57.7% 3.1pp 55.8% 57.9% 2.1pp Net income (million TRY) 98.1 207.8 111.8% 210.8 485.5 130.3% (1) Since July 10, 2015, we hold a 100% stake in lifecell. lifecell (Ukraine) had another positive revenue growth performance. Accordingly, lifecell revenues rose 8.3% year-on-year in Q422 in local currency terms on the back of ARPU growth supported by price adjustments and increased data usage. lifecell’s EBITDA grew 14.1% year-on-year leading to an EBITDA margin of 57.8%. lifecell revenues in TRY terms grew 33.1% year-on-year in Q422 mainly due to price adjustments and the positive impact of currency movements. lifecell’s EBITDA in TRY terms grew by 40.6%, leading to an EBITDA margin of 57.7%. For the full year, lifecell revenues in local currency terms increased 11.0%, while its EBITDA rose 14.6% resulting in an EBITDA margin of 57.9%. lifecell also continued to report positive net income in 2022. In TRY terms, lifecell registered revenue growth of 70.1% with an EBITDA margin of 57.9%. lifecell Operational Data Quarter Year Q421 Q422 y/y% FY21 FY22 y/y% Number of subscribers (million)2 10.1 10.2 1.0% 10.1 10.2 1.0% Active (3 months)3 9.2 8.5 (7.6%) 9.2 8.5 (7.6%) MOU (minutes) (12 months) 179.0 148.0 (17.3%) 180.9 156.9 (13.3%) ARPU (Average Monthly Revenue per User), blended (UAH) 80.2 86.0 7.2% 73.7 77.1 4.6% Active (3 months) (UAH) 88.5 104.5 18.1% 83.2 91.5 10.0% (2) We may occasionally offer campaigns and tariff schemes that have an active subscriber life differing from the one that we normally use to deactivate subscribers and calculate churn. (3) Active subscribers are those who in the past three months made a revenue generating activity. The three-month active subscriber base of lifecell declined to 8.5 million in Q422, as people have fled the country because of the ongoing war. Meanwhile, lifecell’s 3-month active ARPU rose 18.1% year-on-year on the back of price adjustments and higher data usage. Meanwhile, lifecell continued its leadership of the Ukrainian market with 84.3% smartphone penetration as of the end of Q422. lifecell remained focused on ensuring the safety of its employees and provide services to our Ukrainian customers. Meanwhile, our network is largely operational. On average, around 23% of nearly 9 thousand sites are temporarily down as of December 31, 2022 on a daily basis. The conditions of sites in occupied territories are unclear. At the end of December, around 92% of our stores are open nationwide on a daily average. In Q422 daily top-ups almost recovered to the pre-war period levels. Additionally, ICT systems, such as billing and CRM are fully operational. The country’s banking system continues to operate and daily operations, including payments and collections continue as normal. The cash position of lifecell is conducive to sustain its operations. BeST1 Quarter Year Q421 Q422 y/y% FY21 FY22 y/y% Number of subscribers (million) 1.5 1.5 - 1.5 1.5 - Active (3 months) 1.1 1.1 - 1.1 1.1 - Revenue (million BYN) 35.6 38.8 9.0% 145.7 146.2 0.3% EBITDA (million BYN) 10.1 12.4 22.8% 38.1 44.2 16.0% EBITDA margin (%) 28.5% 32.0% 3.5pp 26.1% 30.2% 4.1pp Net loss (million BYN) (7.5) (103.1) 1,274.7% (31.6) (124.8) 294.9% Capex (million BYN) 16.7 25.3 51.5% 63.5 81.4 28.2% Revenue (million TRY) 157.3 288.1 83.2% 507.8 936.0 84.3% EBITDA (million TRY) 44.7 92.1 106.0% 133.9 284.5 112.5% EBITDA margin (%) 28.4% 32.0% 3.6pp 26.4% 30.4% 4.0pp Net loss (million TRY) (32.9) (745.4) 2,165.7% (109.9) (871.4) 692.9% (1) BeST, in which we hold a 100% stake, has operated in Belarus since July 2008. BeST revenues increased 9.0% year-on-year in local currency terms in Q422. This was mainly due to the data and outgoing voice revenues despite the decrease in handset sales revenues. BeST registered an EBITDA of BYN12.4 million in Q422, which led to an EBITDA margin of 32.0%. In Q422, financial obligation based on Investment Agreement signed between the Republic of Belarus, BeST and Turkcell has been booked in BeST standalone financial statements. This has no negative impact on consolidated financial statements since the previous obligation related to investment agreement booked on consolidated level has been reversed. BeST’s revenues in TRY terms increased 83.2% year-on-year in Q422 with an EBITDA margin of 32.0%. For the full year, BeST’s revenue in local currency terms remained flat compared with the previous year. EBITDA rose 16.0%, resulting in a 30.2% EBITDA margin on 4.1pp improvement. BeST’s revenue in TRY terms rose 84.3% with an EBITDA margin of 30.4%. In Q422, BeST continued to expand its 4G network in 6 regions, reaching 4.1 thousand sites, which grew by 186 additions during the quarter. Extended LTE coverage allows BeST to increase penetration of 4G subscribers. Accordingly, 4G users comprised 78% of the 3-month active subscriber base as of Q422. Meanwhile, the average monthly data consumption of 4G subscribers rose 14% year-on-year to 18.3 GB. Moreover, asymmetric MTR (mobile termination rates) which came into effect as of December 31, 2022 was a positive step towards further strengthening a fair competitive market. Kuzey Kıbrıs Turkcell2 (million TRY) Quarter Year Q421 Q422 y/y% FY21 FY22 y/y% Number of subscribers (million) 0.6 0.6 - 0.6 0.6 - Revenue 90.1 147.8 64.0% 306.6 473.1 54.3% EBITDA 35.3 65.2 84.7% 121.1 195.1 61.1% EBITDA margin (%) 39.2% 44.1% 4.9pp 39.5% 41.2% 1.7pp Net income 25.5 106.8 318.8% 68.3 175.6 157.1% Capex 26.6 361.2 1,257.9% 74.2 458.9 518.5% (2) Kuzey Kıbrıs Turkcell, in which we hold a 100% stake, has operated in Northern Cyprus since 1999 Kuzey Kıbrıs Turkcell revenues increased by 64.0% year-on-year in Q422 driven by higher voice and roaming revenues as well as fixed broadband and handset sales revenues. In Q422, the EBITDA of Kuzey Kıbrıs Turkcell grew 84.7% yielding a 44.1% EBITDA margin. For the full year, Kuzey Kıbrıs Turkcell revenues increased 54.3% with the same drivers. The EBITDA grew 61.1% leading to an EBITDA margin of 41.2%. Meanwhile, Kıbrıs Telekom was entitled to receive the 4G license for 18 years and the 5G license for 20 years. TECHFIN Paycell Financial Data (million TRY) Quarter Year Q421 Q422 y/y% FY21 FY22 y/y% Revenue 139.6 270.2 93.6% 468.4 876.9 87.2% EBITDA 64.3 116.7 81.5% 222.4 387.8 74.4% EBITDA Margin (%) 46.1% 43.2% (2.9pp) 47.5% 44.2% (3.3pp) Net Income 48.7 83.3 71.0% 155.1 274.1 76.6% Paycell’s revenue rose by 93.6% year-on-year in Q422. This robust performance resulted mainly from the continued demand for digital payments which we addressed with a diversified product portfolio that includes mobile payment services, particularly the Pay Later solution, as well as POS solutions and Paycell card. The demand for digital payment services remained solid with changing consumer behavior. Paycell’s EBITDA increased 81.5% year-on-year leading to an EBITDA margin of 43.2% in Q422. The quarterly transaction volume (non-group) of Pay Later service exceed TRY1 billion, which was utilized by 3-month active Pay Later users of 5.0 million in Q422 as well as higher merchant penetration supported by the dual growth strategy of Paycell. Meanwhile, the Paycell Card transaction volume more than doubled year-on-year to TRY2.8 billion in Q422. In addition, the transaction volume of POS solutions reached TRY4.4 billion in Q422. Meanwhile, Paycell App added Stock Market (NYSE & Nasdaq) feature, launched with commission-free campaign. Paycell also continued to act as a market-place for gold, silver, and platinum trading in Q422. Overall, Paycell's total transaction volume across all services more than doubled to TRY11.8 billion year-on-year, driven mainly by 17% year-on-year rise in Paycell’s total 3-month active users to 7.7 million, and their increased usage. For the full year, Paycell registered 87.2% revenue growth and the total transaction volume of TRY37.1 billion more than doubled year-on-year. Paycell’s EBITDA rose 74.4% year-on-year leading to an EBITDA margin of 44.2%. The decrease in the EBITDA margin was mainly due to the rise in personel expenses. Financell Financial Data (million TRY) Quarter Year Q421 Q422 y/y% FY21 FY22 y/y% Revenue 190.4 313.1 64.4% 614.9 980.1 59.4% EBITDA 128.9 160.9 24.8% 420.4 523.0 24.4% EBITDA Margin (%) 67.7% 51.4% (16.3pp) 68.4% 53.4% (15.0pp) Net Income 109.5 101.7 (7.1%) 334.6 318.6 (4.8%) Financell’s revenue increased 64.4% year-on-year in Q422. This growth was primarily due to the expansion of the loan portfolio and the higher average interest rate on the loan portfolio compared to the same period of last year. Meanwhile, Financell reported EBITDA growth of 24.8% year-on-year, resulting in an EBITDA margin of 51.4% in Q422. The decrease in EBITDA margin was due to higher funding costs compared to the Q421. Financell's net income declined 7.1% year-on-year. Financell’s revenues rose by 59.4% for the full year and EBITDA increased 24.4% yielding an EBITDA margin of 53.4%. Higher funding cost compared to the previous year was the main reason for the year-on-year decline in EBITDA margin. Financell’s loan portfolio increased to TRY3.4 billion at the end of Q422. Although the installment limitation on consumer loans for telecom devices continued to limit the growth of the loan portfolio, higher lending to corporate customers and greater mobility supported the loan portfolio. Accordingly, Financell has provided loans to over 22 thousand corporate customers. Financell’s cost of risk decreased from 1.3% in Q322 to 1.0% in Q422 thanks to customer portfolio improvement and successful collection performance. Turkcell Group Subscribers Turkcell Group registered subscribers amounted to approximately 54.0 million as of December 31, 2022. This figure is calculated by taking the number of subscribers of Turkcell Turkey, and of each of our subsidiaries. It includes the total number of mobile, fiber, ADSL, cable and IPTV subscribers of Turkcell Turkey, and the mobile subscribers of lifecell, BeST, and Kuzey Kıbrıs Turkcell. Turkcell Group Subscribers Q421 Q322 Q422 y/y% q/q% Turkcell Turkey subscribers (million)1 39.4 41.6 41.7 5.8% 0.2% lifecell (Ukraine) 10.1 10.1 10.2 1.0% 1.0% BeST (Belarus) 1.5 1.5 1.5 - - Kuzey Kıbrıs Turkcell 0.6 0.6 0.6 - - Turkcell Group Subscribers (million) 51.6 53.8 54.0 4.7% 0.4% (1) Subscribers to more than one service are counted separately for each service. OVERVIEW OF THE MACROECONOMIC ENVIRONMENT The foreign exchange rates used in our financial reporting, along with certain macroeconomic indicators, are set out below. Quarter Year Q421 Q322 Q422 y/y% q/q% FY21 FY22 y/y% GDP Growth (Turkey) 9.6% 4.0% 3.5% (6.1pp) (0.5pp) 11.4% 5.6% (5.8pp) Consumer Price Index (Turkey)(yoy) 36.1% 83.5% 64.3% 28.2pp (19.2pp) 36.1% 64.3% 28.2pp US$ / TRY rate Closing Rate 13.3290 18.5038 18.6983 40.3% 1.1% 13.3290 18.6983 40.3% Average Rate 11.0757 17.8817 18.6010 67.9% 4.0% 8.8797 16.4900 85.7% EUR / TRY rate Closing Rate 15.0867 17.9232 19.9349 32.1% 11.2% 15.0867 19.9349 32.1% Average Rate 12.6591 18.0379 18.9748 49.9% 5.2% 10.4810 17.3108 65.2% US$ / UAH rate Closing Rate 27.2782 36.5686 36.5686 34.1% - 27.2782 36.5686 34.1% Average Rate 26.8092 35.3497 36.5686 36.4% 3.4% 27.3362 32.4854 18.8% US$ / BYN rate Closing Rate 2.5481 2.4803 2.7364 7.4% 10.3% 2.5481 2.7364 7.4% Average Rate 2.5019 2.5585 2.5055 0.1% (2.1%) 2.5448 2.6098 2.6% RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS: We believe Adjusted EBITDA, among other measures, facilitates performance comparisons from period to period and management decision making. It also facilitates performance comparisons from company to company. Adjusted EBITDA as a performance measure eliminates potential differences caused by variations in capital structures (affecting interest expense), tax positions (such as the impact of changes in effective tax rates on periods or companies) and the age and book depreciation of tangible assets (affecting relative depreciation expense). We also present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors and other interested parties in evaluating the performance of other mobile operators in the telecommunications industry in Europe, many of which present Adjusted EBITDA when reporting their results. Our Adjusted EBITDA definition includes Revenue, Cost of Revenue excluding depreciation and amortization, Selling and Marketing expenses, Administrative expenses and Net impairment losses on financial and contract assets, but excludes finance income and expense, other operating income and expense, investment activity income and expense, share of profit of equity accounted investees and minority interest. Nevertheless, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation from, or as a substitute for analysis of our results of operations, as reported under TFRS. The following table provides a reconciliation of Adjusted EBITDA, as calculated using financial data prepared in accordance with TFRS to net profit, which we believe is the most directly comparable financial measure calculated and presented in accordance with TFRS. Turkcell Group (million TRY) Quarter Year Q421 Q422 y/y% FY21 FY22 y/y% Adjusted EBITDA 4,211.6 6,671.5 58.4% 15,013.8 21,993.8 46.5% Depreciation and amortization (2,075.5) (2,515.7) 21.2% (7,291.9) (9,478.0) 30.0% EBIT 2,136.1 4,155.8 94.6% 7,721.9 12,515.8 62.1% Finance income 2,569.6 (642.4) (125.0%) 3,051.1 210.8 (93.1%) Finance expense (9,214.8) (2,781.8) (69.8%) (13,195.7) (13,699.8) 3.8% Other operating income / (expense) 4,355.8 1,028.9 (76.4%) 6,409.6 6,800.9 6.1% Investment activity income / (expense) 474.7 157.6 (66.8%) 464.1 1,779.9 283.5% Share of profit of equity accounted investees 63.6 (10.0) (115.7%) 90.1 (71.4) (179.3%) Consolidated profit before income tax & minority interest 385.0 1,908.0 395.6% 4,541.1 7,536.1 66.0% Income tax expense 999.7 4,087.3 308.9% 490.2 3,516.1 617.3% Consolidated profit before minority interest 1,384.7 5,995.3 333.0% 5,031.3 11,052.2 119.7% NOTICE: This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. This includes, in particular, our targets for revenue, EBITDA and capex for 2022. More generally, all statements other than statements of historical facts included in this press release, including, without limitation, certain statements regarding the launch of new businesses, our operations, financial position and business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as, among others, "will," "expect," "intend," "estimate," "believe", "continue" and “guidance”. Although Turkcell believes that the expectations reflected in such forward-looking statements are reasonable at this time, it can give no assurance that such expectations will prove to be correct. All subsequent written and oral forward-looking statements attributable to us are expressly qualified in their entirety by reference to these cautionary statements. For a discussion of certain factors that may affect the outcome of such forward looking statements, see our Annual Report on Form 20-F for 2021 filed with the U.S. Securities and Exchange Commission, and in particular the risk factor section therein. We undertake no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The Company makes no representation as to the accuracy or completeness of the information contained in this press release, which remains subject to verification, completion and change. No responsibility or liability is or will be accepted by the Company or any of its subsidiaries, board members, officers, employees or agents as to or in relation to the accuracy or completeness of the information contained in this press release or any other written or oral information made available to any interested party or its advisers. ABOUT TURKCELL: Turkcell is a digital operator headquartered in Turkey, serving its customers with its unique portfolio of digital services along with voice, messaging, data and IPTV services on its mobile and fixed networks. Turkcell Group companies operate in 4 countries – Turkey, Ukraine, Belarus, and Northern Cyprus. Turkcell launched LTE services in its home country on April 1st, 2016, employing LTE-Advanced and 3 carrier aggregation technologies in 81 cities. Turkcell offers up to 10 Gbps fiber internet speed with its FTTH services. Turkcell Group reported TRY53.9 billion revenue in FY22 with total assets of TRY101.3 billion as of December 31, 2022. It has been listed on the NYSE and the BIST since July 2000, and is the only NYSE-listed company in Turkey. Read more at www.turkcell.com.tr. Appendix A – Tables Table: Net foreign exchange gain and loss details Million TRY Quarter Year Q421 Q422 y/y% FY21 FY22 y/y% Net FX loss before hedging (4,137.2) (383.0) (90.7%) (5,538.5) (3,834.0) (30.8%) Swap interest income/(expense) (89.2) 29.0 n.m (422.4) (127.0) (69.9%) Fair value gain on derivative financial instruments 2,613.3 (945.3) (136.2%) 3,312.8 (130.8) (103.9%) Net FX gain / (loss) after hedging (1,613.1) (1,299.3) (19.5%) (2,648.1) (4,091.7) 54.5% Table: Income tax expense details Million TRY Quarter Year Q421 Q422 y/y% FY21 FY22 y/y% Current tax expense (106.6) 192.8 n.m (681.5) (530.6) (22.1%) Deferred tax income / (expense) 1,106.3 3,894.6 252.0% 1,171.7 4,046.7 245.4% Income Tax expense 999.7 4,087.4 308.9% 490.2 3,516.1 617.3% Table: Fixed asset revaluation net impact Million TRY Q421 Million TRY Q422 Tax effect of fixed asset revalution 1,137.3 Tax effect of fixed asset revalution 4,311.4 2% payment of fixed asset revalution (106.7) 2% payment of fixed asset revalution (217.6) Total 1,030.6 Total 4,093.8 Million TRY FY21 Million TRY FY22 Tax effect of fixed asset revalution 1,680.7 Tax effect of fixed asset revalution 4,862.7 2% payment of fixed asset revalution (158.2) 2% payment of fixed asset revalution (254.0) Total 1,522.5 Total 4,608.7 Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2021 2021 2022 2022 2022 7,689.4 27,223.5 11,075.7 12,448.8 40,851.1 1,286.4 3,750.1 1,634.7 1,812.6 6,353.6 329.9 1,075.7 499.1 583.2 1,849.1 885.9 3,871.2 1,453.0 1,199.4 4,824.7 10,191.5 35,920.5 14,662.5 16,043.9 53,878.5 (7,095.4) (25,230.0) (9,852.1) (10,451.0) (36,788.6) 3,096.2 10,690.6 4,810.4 5,592.9 17,089.8 (276.8) (919.0) (393.8) (473.4) (1,519.0) (576.6) (1,778.5) (683.7) (899.8) (2,700.1) 4,355.8 6,409.6 2,414.8 1,028.9 6,800.9 6,598.6 14,402.7 6,147.8 5,248.5 19,671.6 (106.7) (271.2) (140.4) (63.9) (354.9) 402.6 464.1 526.1 157.6 1,779.9 72.1 - - - - 63.6 90.1 13.1 (10.0) (71.4) 7,030.2 14,685.7 6,546.6 5,332.2 21,025.2 2,569.6 3,051.1 4.2 (642.4) 210.8 (9,214.8) (13,195.7) (3,654.0) (2,781.8) (13,699.8) 385.0 4,541.1 2,896.9 1,908.0 7,536.1 999.7 490.2 (501.1) 4,087.3 3,516.1 1,384.7 5,031.3 2,395.8 5,995.3 11,052.2 (0.1) (0.2) (0.1) 0.9 1.0 1,384.6 5,031.1 2,395.8 5,996.3 11,053.2 0.6 2.3 1.1 2.7 5.1 30.4% 29.8% 32.8% 34.9% 31.7% 4,211.6 15,013.8 5,990.3 6,671.5 21,993.8 4,297.4 11,479.4 3,897.8 6,434.3 16,360.6 2,686.3 7,629.8 2,513.0 4,454.3 10,859.4 - - - 317.5 317.5 1,611.1 3,849.6 1,384.8 1,662.5 5,183.6 18,628.7 18,628.7 24,344.2 25,960.7 25,960.7 70,682.6 70,682.6 90,655.4 101,264.8 101,264.8 27,929.7 27,929.7 37,700.3 37,133.1 37,133.1 36,778.1 36,778.1 51,921.7 53,854.4 53,854.4 48,120.4 48,120.4 65,123.7 70,369.8 70,369.8 22,562.3 22,562.3 25,531.8 30,891.1 30,891.1 (*) Please refer to the notes on reconciliation of Non-GAAP Financial measures on page 20.