Sign in

    Madhvendra Singh • HSBC

    Madhvendra Singh's questions to Turkcell Iletisim Hizmetleri AS (TKC) leadership

    Madhvendra Singh's questions to Turkcell Iletisim Hizmetleri AS (TKC) leadership • Q2 2025

    Question

    Madhvendra Singh of HSBC inquired about the latest updates on the fixed concession renewal and the 5G tender timeline. He also asked for clarification on the CapEx plan, noting the lower run rate in the first half and questioning where spending would accelerate in the second half to meet full-year guidance.

    Answer

    CEO Ali Koç addressed the questions, stating that the government has indicated a renewal for Turk Telekom's concession and that Turkcell advocates for equal opportunities to support 5G deployments. He noted the government's goal is to launch 5G services by 2026. Regarding capital expenditures, Mr. Koç confirmed plans to increase investments in H2, allocating approximately 65% to fixed and mobile network enhancements for 5G readiness, 13% to data centers, and 7% to renewable energy projects.

    Ask Fintool Equity Research AI

    Madhvendra Singh's questions to Turkcell Iletisim Hizmetleri AS (TKC) leadership • Q1 2025

    Question

    In a follow-up, Madhvendra Singh from HSBC asked about the data center CapEx plan, questioning if the expected annual spend is sufficient to achieve Turkcell's ambitions of becoming a regional data hub.

    Answer

    Executive Ali Koç reiterated the strategic commitment to making Turkiye a regional data hub, citing massive growth potential from hyperscalers and AI. CFO Kamil Kalyon clarified that while Q1 data center CapEx was 24% of the total, the full-year allocation is expected to be around 13%, balancing strategic growth with core network investments.

    Ask Fintool Equity Research AI

    Madhvendra Singh's questions to Turkcell Iletisim Hizmetleri AS (TKC) leadership • Q1 2025

    Question

    Madhvendra Singh from HSBC inquired about the discrepancy between Turkcell's price hikes and its 12.7% revenue growth, asking about competitive pressures. He also requested an update on the 5G rollout process and costs. In a follow-up, he asked about the data center CapEx plan for the year and the company's overall ambitions in that segment.

    Answer

    CFO Kamil Kalyon attributed the revenue performance to a diverse service mix, successful upselling, and a growing subscriber base, while acknowledging that competition intensified in May 2024 and has not normalized. Executive Ali Koç stated that while there is no official 5G timeline, a spectrum auction is expected in 2025 with a 2026 service launch, noting Turkcell's readiness. Regarding data centers, Ali Koç highlighted the goal to make Turkiye a regional hub, and Kamil Kalyon clarified that while Q1 CapEx was high at 24%, it is expected to normalize to 13% for the full year.

    Ask Fintool Equity Research AI

    Madhvendra Singh's questions to TCELL leadership

    Madhvendra Singh's questions to TCELL leadership • Q4 2024

    Question

    Madhvendra Singh asked about the drivers behind the increased mobile churn rate, the outlook for passing on inflation through pricing, and the timing of the dividend announcement. He also inquired about the company's plans for employee salary hikes in 2025.

    Answer

    CEO Ali Koç attributed the slight rise in Q4 churn to aggressive competitor campaigns that began in the second half of the year, but noted the overall rate remains healthy. CFO Kamil Kalyon stated their inflation forecast is already conservative, allowing them to manage pricing. He confirmed the dividend policy is 50% of net income, with a decision at the AGM, likely in May. Mr. Koç added that one annual salary hike is planned for 2025, unlike the two hikes given in 2024.

    Ask Fintool Equity Research AI