Education
About Us
Working with TipRanks
Follow Us
Turkcell Iletisim Hizmetleri As (TKC)
NYSE:TKC
Top Page
Turkcell Iletisim
(NYSE:TKC)
Rating:81Outperform
Price Target:
$7.00
▲(25.45% Upside)
Turkcell Iletisim (TKC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.84B
Dividend Yield5.8%
Average Volume (3M)734.48K
Price to Earnings (P/E)11.1
Beta (1Y)0.42
Revenue Growth19.25%
EPS Growth5.69%
CountryUS
Employees23,795
SectorCommunication Services
Sector Strength96
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.12
Shares Outstanding871,641,900
10 Day Avg. Volume1,024,848
30 Day Avg. Volume734,483
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit0.12
Enterprise Value/Ebitda0.08
Forecast
1Y Price Target
$7.00Price Target Upside25.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Turkcell Iletisim Business Overview & Revenue Model
Company DescriptionTurkcell Iletisim (TKC) is a leading telecommunications and technology services provider in Turkey, offering a wide range of services including mobile and fixed-line voice services, mobile and fixed broadband internet, and digital services. Established in 1994, Turkcell has expanded its operations to include various sectors such as fintech, health tech, and IoT solutions, positioning itself as a key player in the digital transformation of Turkey. The company is known for its innovative solutions and customer-centric approach, serving millions of subscribers across the country.
How the Company Makes MoneyTurkcell generates revenue primarily through its telecommunications services, including mobile voice and data subscriptions, fixed broadband services, and digital services such as content, cloud, and financial technology solutions. The company has diverse revenue streams, including monthly subscription fees, usage-based charges, and value-added services. Additionally, Turkcell partners with various businesses to offer bundled services and solutions, enhancing its market presence and driving earnings. Significant partnerships with technology providers and content creators also contribute to its revenue, as they enable Turkcell to expand its service portfolio and attract new customers.
Turkcell Iletisim Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial and operational performance with significant growth in revenue, EBITDA, and strategic business areas like Data Center & Cloud services and Techfin. Despite challenges in the fixed broadband segment and losses from the TOGG investment, the overall results were positive.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Turkcell reported a top line reaching TRY 53 billion, reflecting a 12% year-on-year growth, primarily driven by strong ARPU performance and the expansion of the mobile subscriber base.
EBITDA and Profitability
Group EBITDA rose by 15% year-on-year to TRY 23 billion with a solid margin of 43.5%. Net income from continuing operations increased by 37% year-on-year to TRY 4.4 billion.
Mobile Subscriber Growth
Achieved 816,000 postpaid net additions in the quarter, marking the highest net addition in over 5 years, with a postpaid share in total mobile subscribers reaching 78%.
Data Center & Cloud Services Performance
Data Center & Cloud services posted strong growth of 53%, reflecting successful monetization of capacity investments and expanding customer base.
Techfin Segment Growth
Paycell recorded a 36% year-on-year revenue growth, driven by strong performance in the POS and Pay Later verticals.
Negative Updates
Fixed Broadband Subscriber Stability
The fixed subscriber base remained stable at 3.3 million, impacted by competitive offers from smaller ISPs and a higher volume of expiring 12-month contracts.
TOGG Investment Loss
Turkcell recorded TRY 1.2 billion loss from their 23% share in TOGG, impacting their profit, with expectations of continued losses in the short term.
Company Guidance
In the second quarter of 2025, Turkcell reported robust financial performance, showcasing a 12% year-on-year increase in revenue to TRY 53 billion, primarily driven by a strong ARPU performance and an expansion in the postpaid mobile subscriber base. The company's EBITDA rose by 15% to TRY 23 billion, with a solid margin of 43.5%, and net income from continuing operations surged by 37% to TRY 4.4 billion. Turkcell achieved 816,000 postpaid net additions, marking the highest in over five years, and maintained a low mobile churn rate of 2.2%. Strategic investments in data center and cloud services resulted in a 53% revenue growth, while the Techfin segment saw a 36% increase in revenue. Despite competitive pressures, Turkcell remains focused on strategic infrastructure investments, with a CapEx intensity of 16.9% for the quarter, and aims to sustain its market leadership through continued investments in 5G and digital transformation initiatives.Turkcell Iletisim Financial Statement Overview
Summary
Turkcell Iletisim demonstrates strong financial performance with consistent revenue growth and solid profitability margins. The balance sheet is stable, though increasing debt levels warrant attention. Cash flow generation is robust, supporting the company's operational and strategic initiatives.Income Statement
Turkcell Iletisim has demonstrated strong revenue growth with a 10.34% increase in the TTM period. The company maintains healthy margins, with a gross profit margin of 26.36% and a net profit margin of 13.27%. The EBIT and EBITDA margins are robust at 15.12% and 43.03%, respectively, indicating efficient operational management. However, the slight decline in net profit margin compared to the previous year suggests some pressure on profitability.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.72, indicating moderate leverage. The return on equity is strong at 12.84%, showcasing effective use of equity capital. The equity ratio stands at 48.03%, suggesting a balanced capital structure. However, the increase in total debt over the years could pose a risk if not managed carefully.78
Positive
Cash Flow
Cash flow analysis reveals a positive trajectory with a 25.88% growth in free cash flow, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 0.77 indicates efficient conversion of income into cash. However, the free cash flow to net income ratio of 0.22 suggests room for improvement in translating profits into free cash flow.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 193.24B | 166.67B | 107.12B | 134.98B | 35.92B | 29.10B |
| Gross Profit | 52.24B | 41.16B | 22.70B | 12.11B | 10.70B | 8.77B |
| EBITDA | 84.61B | 74.84B | 45.19B | 43.86B | 13.03B | 11.66B |
| Net Income | 24.53B | 23.52B | 12.55B | 6.88B | 5.03B | 4.50B |
Balance Sheet | ||||||
| Total Assets | 457.38B | 344.28B | 247.08B | 101.26B | 70.68B | 51.50B |
| Cash, Cash Equivalents and Short-Term Investments | 127.07B | 75.82B | 58.85B | 30.91B | 18.68B | 12.56B |
| Total Debt | 172.86B | 104.34B | 84.08B | 53.85B | 36.78B | 21.59B |
| Total Liabilities | 237.68B | 157.31B | 124.85B | 70.37B | 48.12B | 30.71B |
| Stockholders Equity | 219.71B | 186.97B | 122.25B | 30.89B | 22.56B | 20.78B |
Cash Flow | ||||||
| Free Cash Flow | 44.73B | 44.31B | 17.64B | 11.07B | 29.80B | 5.31B |
| Operating Cash Flow | 94.12B | 75.01B | 60.24B | 25.15B | 19.95B | 13.09B |
| Investing Cash Flow | -42.94B | -48.86B | -30.18B | -19.65B | -9.14B | -6.78B |
| Financing Cash Flow | 20.10B | -9.78B | 9.77B | 3.39B | -3.94B | -4.27B |
Turkcell Iletisim Technical Analysis
Negative
5.58
Price Trends
5.85
Negative
5.93
Negative
6.32
Negative
Market Momentum
-0.03
Positive
37.46
Neutral
16.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKC, the sentiment is Negative. The current price of 5.58 is below the 20-day moving average (MA) of 5.91, below the 50-day MA of 5.85, and below the 200-day MA of 6.32, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 37.46 is Neutral, neither overbought nor oversold. The STOCH value of 16.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TKC.
Turkcell Iletisim Risk Analysis
Turkcell Iletisim disclosed 28 risk factors in its most recent earnings report. Turkcell Iletisim reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Summary of Risk Relating to our American Depositary Shares Q4, 2023
2.
We have two major shareholders whose interests may not be aligned with those of other shareholders. Q4, 2023
3.
Risk Factors Summary Summary of Risks relating to Turkiye Q4, 2023
Turkcell Iletisim Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.84B | 11.12 | 7.38% | 5.80% | 19.25% | 5.69% | |
70 Outperform | $8.30B | 8.76 | 26.45% | 5.22% | -4.09% | 806.44% | |
70 Neutral | $4.30B | 7.56 | 27.07% | 8.46% | 0.35% | 19.08% | |
67 Neutral | $8.37B | 11.63 | 8.49% | 4.58% | -4.74% | -16.57% | |
61 Neutral | $4.55B | ― | -0.54% | 43.59% | -3.65% | -134.04% | |
60 Neutral | $46.28B | 4.13 | -13.12% | 4.13% | 1.85% | -42.71% | |
56 Neutral | $3.69B | 22.47 | -0.27% | 2.43% | 3.89% | -107.44% |
* Communication Services Sector Average
Performance Comparison
TKC
Turkcell Iletisim
5.58
-1.16
-17.21%
PHI
PLDT
19.65
-5.29
-21.21%
SKM
Sk Telecom
21.67
-2.11
-8.87%
TEO
Telecom Argentina
8.37
0.93
12.50%
AD
Array Digital Infrastructure
52.76
14.55
38.08%
TIGO
Millicom International Cellular SA
47.91
23.76
98.39%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.