TURKCELL Iletisim Hizmetleri AS Q4 FY2024 earnings call

• 2024 top line reached TRY 16.7 billion, up 7.8% y-o-y, EBITDA TRY 69.8 billion, margin just below 42%. - Completed Ukraine asset sale in Q3, net income up 30% to over TRY 23.5 billion. - Mobile: 1.9 million net postpaid adds in 2024, postpaid share at 76%. Prepaid had Q4 net loss. - Fixed Broadband: 32,000 net fiber adds in Q4, residential fiber ARPU up 18.8%. - Digital Business Services: Q4 revenue $4.4 billion, recurring services up 19%, system integration backlog $4.8 billion. - Data Center and Cloud: Revenue up 39%, capacity expanded 27% in 2024, plan to add 8.4 MW in 2025. - Techfin: Paycell Q4 growth 33%, EBITDA up 51.8%; Financell revenue up 13.6%, market leader in loan volume. - Sustainability: Issued $1 billion euro bond with sustainable component, added 8.2 MW solar capacity, impacted 377,000 lives with social projects.

Mobile: In 2024, there were 1.9 million net postpaid additions, the highest in 15 years. Postpaid share rose to 76% with a 5-point year-on-year increase. Prepaid segment had a Q4 net loss of $0.9 million due to alternative data solutions, inactive subscriber disconnections, and postpaid migrations. ARPU grew double-digit. Fixed Broadband: Q4 saw 32,000 net fiber additions, full-year net fiber adds 168,000. Share of 100 Mbps+ packages in residential fiber portfolio rose 12 percentage points. Residential fiber ARPU grew 18.8% year-on-year. Digital Business Services: Q4 revenue $4.4 billion, recurring service revenues up 19%, system integration backlog at $4.8 billion. Data Center and Cloud: Revenue up 39% in 2024, capacity expanded to 41.4 MW, plan to add 8.4 MW in 2025. Techfin (Paycell and Financell): Paycell Q4 growth 33%, EBITDA up 51.8%; Financell revenue up 13.6%, market leader in loan volume, contributing 5% to group revenues.

• 2025 top line expected to grow 7%-9%. - Data center and cloud revenue expected to grow 32%-34%. - EBITDA margin guidance 41%-42%. - CapEx intensity around 24%.

• Competitive market dynamics with intensified campaigns, affecting churn rates. - Uncertainties around 5G tender timeline and license fees. - Inflationary pressures impacting pricing and cost management.

Q: About 5G timeline, potential investment size, pricing, and CapEx over sales.

A: No official 5G timeline yet, tender expected in 2025, live network in 2026. Committed to 5G infrastructure with local tech, CapEx intensity expected around 24% in 2025.

Q: Growth prospects, net debt, financial expenses.

A: 7%-9% growth target, net debt managed well, financial expenses managed via diversified instruments.

Q: Cloud and data center growth, pricing environment, monetary position.

A: Cloud/data center growth strong, pricing follows inflation, monetary position strong with cash and hedging.

Q: Inflation assumption, net leverage, CapEx breakdown, 2025 bond.

A: Inflation assumption around 33%, net leverage expected below industry average, CapEx breakdown 32% mobile, 33% fixed, $1 billion Eurobond issued for refinancing and growth.

Q: Mobile churn, pricing outlook, dividends, salary hikes.

A: Mobile churn slightly up due to competition, pricing follows market, dividends to be decided at AGM, salary hikes per yearly norm.