Türk Telekomünikasyon Anonim Sirketi Stock Earnings Reports

Türk Telekom reported strong operational and financial results for Q1 2026. Consolidated revenues rose 9% year-on-year to TRY 65 billion (6% ex-IFRIC 12), driven by fixed broadband, corporate data and ICT; EBITDA grew 70% to TRY 27.4 billion with a ~300 bps margin expansion to ~42–43%; net income increased 56% to TRY 10.5 billion. Subscriber base surpassed 57 million with 613k net additions (mobile +712k; fixed broadband slightly down q/q). Fiber network exceeds 550k km and 5G was launched across all provinces. CapEx rose (TRY 17 billion) largely due to 5G rollout; unlevered free cash flow was positive TRY 1.7 billion excluding 5G/concession/license payments. Net leverage moved to ~1.0x from 0.6x year-end 2025, mainly reflecting USD 1.1bn payment for 5G and concession renewals; excluding those payments leverage would have been flat. The company highlighted active FX hedging, a USD ~2.5bn short FX position driven by booking of 5G/concession liabilities (but a net long FX position excluding future payments), and a plan to hedge future open positions. Management reiterated guidance visibility: revenue growth could be updated after H1 depending on inflation and line performance, but they do not currently see major downside risk to the 41–42% EBITDA margin guidance. Key investor risks include higher-than-expected inflation, regional geopolitical volatility impacting energy and FX, and the timing/size of future concession/5G-related FX payments. Positives: continued ARPU growth in fixed broadband, strong fiber-led upsell, growing postpaid mix, solar generation reducing energy exposure over time, and long-term payment schedules for 5G/concession liabilities (payments ultimately in TRY).