Turkcell Iletisim Hizmetleri AS (NYSE:TKC) Issues Quarterly Earnings Results

Key Points

• Turkcell reported quarterly EPS of $0.13, with a 7.27% net margin and 6.79% return on equity.
• Operational momentum remained strong: mobile subscribers surpassed 40 million, postpaid customers increased by 284,000, churn improved to 1.6%, and digital businesses posted double-digit revenue growth.
• Management maintained full-year guidance despite higher inflation assumptions, while warning that 5G costs, currency exposure, and approximately $800 million in remaining license payments will pressure finances; analysts continue to rate the stock a “Hold.”

Turkcell Iletisim Hizmetleri AS (NYSE:TKC - Get Free Report) announced its quarterly earnings data on Thursday. The Wireless communications provider reported $0.13 EPS for the quarter, Zacks reports. Turkcell Iletisim Hizmetleri AS had a net margin of 7.27% and a return on equity of 6.79%.

Here are the key takeaways from Turkcell Iletisim Hizmetleri AS's conference call:

• Operational momentum remained strong: Turkcell surpassed 40 million mobile subscribers, added 284,000 postpaid customers, improved monthly churn to 1.6%, and grew its fiber base by 31,000 subscribers.
• Growth businesses continued to scale, with Digital Business Services revenue up 33% to TRY 8.7 billion, Paycell revenue up 22%, and Superbox adding 64,000 subscribers; the system-integration backlog also increased to TRY 16 billion.
• Management maintained its full-year financial guidance despite raising its expected year-end inflation assumption to approximately 28% from 23%, citing disciplined pricing and expected benefits from recent price increases in the second half.
• Higher 5G-related depreciation, remaining 5G license installments, and currency exposure pressured earnings and finances; net debt reached TRY 44 billion, while the final two license payments of roughly $400 million each are due in December 2026 and May 2027.
• Management expects the data-center and cloud business to become a major long-term growth platform, targeting 10%–15% of group revenue by 2030–31, although it currently represents only 2.3% of revenue and requires substantial investment.

Turkcell Iletisim Hizmetleri AS Stock Down 0.1%

Shares of Turkcell Iletisim Hizmetleri AS stock traded down $0.01 during trading hours on Thursday, hitting $5.44. 860,687 shares of the company's stock traded hands, compared to its average volume of 1,572,012. Turkcell Iletisim Hizmetleri AS has a twelve month low of $5.29 and a twelve month high of $7.18. The company has a market cap of $4.79 billion, a PE ratio of 11.32 and a beta of 0.97. The company has a quick ratio of 1.68, a current ratio of 1.69 and a debt-to-equity ratio of 0.58. The stock has a 50 day simple moving average of $5.77 and a 200-day simple moving average of $6.15.

Institutional Investors Weigh In On Turkcell Iletisim Hizmetleri AS

Several hedge funds and other institutional investors have recently bought and sold shares of TKC. Millennium Management LLC boosted its stake in shares of Turkcell Iletisim Hizmetleri AS by 326.4% during the 3rd quarter. Millennium Management LLC now owns 3,495,391 shares of the Wireless communications provider's stock valued at $21,042,000 after buying an additional 2,675,681 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in Turkcell Iletisim Hizmetleri AS by 12.9% during the 4th quarter. Goldman Sachs Group Inc. now owns 2,973,174 shares of the Wireless communications provider's stock worth $16,263,000 after acquiring an additional 339,410 shares in the last quarter. Two Sigma Investments LP increased its position in shares of Turkcell Iletisim Hizmetleri AS by 103.5% in the 3rd quarter. Two Sigma Investments LP now owns 1,966,828 shares of the Wireless communications provider's stock worth $11,840,000 after purchasing an additional 1,000,311 shares during the last quarter. Renaissance Technologies LLC increased its position in shares of Turkcell Iletisim Hizmetleri AS by 182.6% in the 4th quarter. Renaissance Technologies LLC now owns 1,280,600 shares of the Wireless communications provider's stock worth $7,005,000 after purchasing an additional 827,415 shares during the last quarter. Finally, State Street Corp raised its stake in shares of Turkcell Iletisim Hizmetleri AS by 34.3% in the 4th quarter. State Street Corp now owns 1,026,095 shares of the Wireless communications provider's stock valued at $5,705,000 after purchasing an additional 261,791 shares in the last quarter.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reissued a "hold (c)" rating on shares of Turkcell Iletisim Hizmetleri AS in a research note on Wednesday, June 24th. One research analyst has rated the stock with a Hold rating, According to data from MarketBeat, Turkcell Iletisim Hizmetleri AS currently has a consensus rating of "Hold".

Turkcell Iletisim Hizmetleri AS Company Profile

Turkcell Iletisim Hizmetleri AS, traded on the NYSE under the symbol TKC, is a leading integrated telecommunications and technology company headquartered in Istanbul, Turkey. Since its founding in 1994 as the country's first GSM operator, Turkcell has expanded its footprint to offer a comprehensive suite of mobile voice, messaging and data services to millions of subscribers. The company has made significant investments in nationwide 4.5G and 5G network infrastructure to deliver high-speed connectivity across both urban centers and rural regions.

In addition to its core mobile offerings, Turkcell provides fixed broadband and fiber-optic services tailored to consumer and enterprise customers.

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