Turkcell Iletisim Hizmetleri AS

Ladies and gentlemen, thank you for standing by. I'm Vassilios, your chorus call operator. Welcome and thank you for joining the Turkcell's conference call and live webcast to present and discuss the Turkcell first quarter 2025 financial results. All participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by question and answer session. Should anyone need assistance during the conference call, you may signal an operator by pressing star and zero on your telephone. At this time, I would like to turn the conference over to Mrs. Özlem Yardım, Investor Relations and Corporate Finance Director. Mrs. Yardım, you may now proceed.

Thank you, Vassilios. Hello, everyone. Welcome to Turkcell's 2025 First Quarter Earnings Call. Today, our CEO, Ali Taha Koç, and CFO, Kamil Kalyon, will be delivering a brief presentation covering operations and financial results, which will be followed by a Q&A session. Before we begin, I would like to kindly remind you to review our safe harbor statements available at the end of our presentation. Now, I'm handing the meeting over to Mr. Ali Taha.

Thank you very much, Özlem. Good afternoon, everyone. And thank you for being with us today. Before I start my presentation, I would like to take a moment to celebrate a milestone that makes 2025 meaningful for us. This year marks the 25th anniversary of Turkcell's IPO, where we proudly remain the first and only dual-listed company. Looking back on these 25 years, we are proud and grateful to have grown alongside with you. our valued shareholders, creating lasting value together. Moving on the highlights of the first quarter, our top line reached 48 billion Turkish Liras, delivering an outstanding double-digit year-on-year growth of 12.7%. On the profitability side, we delivered an EBITDA of 21 billion Turkish Liras, up 19% year-on-year. This resulted in a robust margin of 43.7%, marking the highest first quarter margin in the last decade. Last but not least, we concluded the quarter with a solid net profit of 3.1 billion Turkish Liras, another compelling indicator of our strong financial performance. We gained 153,000 postpaid and 30,000 fiber customers in the first quarter, which is clear evidence of the success of our value-focused strategy. This quarter, our strategic areas also delivered impressive results. TechWin segment revenues surged by 31%, while data center and cloud revenues grew by an outstanding 48%, reflecting the strong momentum in both areas. Next page, please. Now take a closer look at our operational performance. On the mobile side, our focus on value generation continued to deliver strong results. We added 153,000 postpaid subscribers quarter on quarter and 1.6 million year on year. As a result, our postpaid share reached an all-time high of 76%, up from 72% a year ago. Given the ongoing competitive landscape, our mobile churn rate remained low at 1.7%. We delivered double-digit ARPU growth of 15.9% this quarter, driven by our rational pricing strategy, effective upselling, an expanded post-paid base, and a slowdown in CPI. all contributed to a widening gap between ARPU growth and inflation. Next page, please. Now moving on to the fixed broadband segment. In the first quarter, we added 30,000 net fiber customers, expanding our end-to-end fiber reach. We now cover over 6 million homes with fiber to-do home technology, FTTH. Residential fiber ARPU grew by 17.7% year-on-year, supported by an increase in 12-month contract share to 86%, and strong performance in upselling customers to higher-speed packages. By quarter-end, the share of trick-sell fiber customers on 100MB-plus packages rose 15 points, exceeding 46%. The slight rise in churn is mainly due to the transition to 12-month contracts. Thanks to our targeted initiatives, we successfully raised our take-up ratio to 43 percent. Next, please. A quick update on our strategic areas, starting with digital business services. This quarter, digital business services achieved a revenue of 4 billion Turkish liras driven by a 23% year-on-year increase in recurring service revenues. Notably, our system integration project backlog reached 4.9 billion TL, underscoring strong demand and continued customer confidence in our service offerings. Revenues in our high-potential data center and cloud segment surged by 48% this quarter. reaffirming the strategic importance of this business in our portfolio. To meet growing demand, we plan to add two new modules, expanding our capacity by 8.4 megawatts by year-end. The total data center investments now stand at 528 million euros. Next, please. Now, the TechWin segment, which plays a key role in our growth strategy. PayCell, our secure mobile payment platform, recorded an impressive 47.8% year-on-year growth, with pay later driving revenue, followed by post revenues. We focused on profitability, and PayCell's EBITDA rose to 24.2%. Financial's revenue grew 8.2%, supported by loan portfolio expansion through dedicated campaigns and personalized pricing. Net interest margin improved to 4.7% due to lower funding costs. Despite macro challenges, our cost of risk remained at 3.3%. As a final note, I would like to highlight that we firmly stand by our 2025 guidance. while closely monitoring global and local economic dynamics. I will now hand over to our CFO, Mr. Kamil Kalyan.