Turkcell Iletisim Hizmetleri AS

Ladies and gentlemen, thank you for standing by. I am Jota, your course call operator. Welcome and thank you for joining the Turkcell conference call and live webcast to present and discuss the Turkcell second 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 a 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, Yusra. Hello, everyone, and welcome to Jukcel's 2025 Second Quarter Earnings Call. On the call today, we have our CEO, Ali Taha Koch, and CFO, Kamil Kalyan. They will provide an overview of our operational and financial results for the quarter, followed by a Q&A session. Before we begin, I would like to kindly remind you to review our safe harbor statement, which is available at the end of our presentation. With that, I will now turn the call over to Mr. Ali Taha.

Thank you, Özlem. Good afternoon, everyone, and thank you for joining us today. I am pleased to report that we have once again delivered a strong set of results this quarter. Let me briefly review our overall results and outstanding performances of some key metrics. Our top line reached 53 billion Turkish Liras, reflecting another remarkable double-digit year-on-year growth of 12%. This was primarily driven by strong ARPU performance and significant expansion of the mobile subscriber base, particularly in post-bate domain. Group EBITDA rose by 15% year-on-year to 23 billion TL, with a solid margin of 43.5%, mainly supported by strong operational leverage. Our impressive operational profitability, coupled with effective financial risk management, resulted in net income from continuing operations of 4.4 billion Turkish liras, an increase of 37 percent year on year. The market remained highly competitive throughout the quarter. In response, we took targeted actions where necessary, while staying aligned with our long-term strategic priorities. As a result of these efforts, we achieved 816,000 phosphate net additions during this quarter, marking our highest net addition in over five years, while recording high single ARPU growth. In our strategic areas, we continue to deliver robust performance. Our data center and cloud services continue to scale, posting strong growth of 53%, while our tech business also maintained its momentum. Next page, please. Now I will continue with the operational overview. Competitive dynamics in the mobile market remained in line with our expectations and continued at a similar pace as the past year. As the market leader, we took selective actions in response to competitive pressures, maintaining a dynamic and consumer-centric approach. As a result of this strategy, we added 816,000 post-paid subscribers this quarter. bringing our yearly net additions to 2 million. Our post-paid share in total mobile subscribers reached 78%, underlying our continued focus on value-added subscribers. Mobile ARPU increased by 9.8% year-over-year, reflecting the impact of expansion of our post-paid base, price adjustments, and successful upselling initiatives. Our mobile churn rate was 2.2% this quarter, primarily due to highest volume in the mobile number portability market resulting from intensified competition. Next page, please. As the premium provider in the mobile market, we remain committed to leading the industry. Our approach extends beyond price competition. We differentiate ourselves through superior network quality high-speed connectivity, and a strong focus on customer experience. Looking ahead, we are firmly committed to 5G to maintain our leadership position. We are closely monitoring the upcoming spectrum tender while continuing to invest in our best-in-class infrastructure. Our vision extends beyond individual connectivity. We enable digital transformation across devices, cities, and industries placing us at the heart of the Turkey's digital future. Customer focus remains a key pillar of our mobile strategy. We implemented dynamic pricing practices that support both our premium positioning and the rationalization of the overall market. While doing this, we maintain our customer focus, which led to our all-time highest net port during this quarter. Leveraging AI-powered tariff management and segment-specific strategies, we are better positioned to meet evolving customer expectations. We actively address customer pain points and continually enhance our packages to drive higher retention. Our smart control service now covers nearly half of our post-paid base. Recently, we launched Tumbara, a digital loyalty program that allows customers to redeem their unused packages. The program has already engaged 4 million customers, further strengthening retention and customer engagement. Our strong customer orientation is clearly reflected in our net promoter score, where we led our closest competitor by 17%. Overall, we once again delivered real ARPU growth in the second quarter. Next page, please. Now let us examine the fixed broadband segment. Our fixed subscriber base remained broadly stable at 3.3 million, impacted by competitive offers from smaller ISPs and higher volume of expiring 12-month contracts. We remain focused on achieving consistent ARPA expansion. In the second quarter, we recorded a 17.5% year-on-year increase in the residential fiber output, supported by rising penetration of high-speed plants, an increase in development contract share, and effective pricing action. Notably, the share of high-speed packages increased by 16 percent points year-on-year. As we continue to strengthen our fiber infrastructure, we expanded our footprint with 67,000 new home passes. bringing the total to 6.1 million pure fiber connections. Lastly, an impressive take-up rate of 42.7% highlights our continued focus on fiber subscriber growth. Next page, please. Next, I would like to briefly discuss on strategic areas, starting with digital business services. Digital business services delivered solid growth of 39%, which with revenues exceeding 4.9 billion Turkish Liras. This performance was driven by the continued strength in recurring service revenues, further supported by a recovery in hardware sales within corporate projects. Our ambition is to build a seamlessly connected digital ecosystem that enhances connectivity. Data center and cloud services play a critical role in this strategy. Revenues in our high-potential data center and cloud services surged by 53% this quarter. This exceptional performance reflects the successful monetization of last year's capacity investments and expanding customer base and sustained market demand. As a market leader, we continue to respond to growing demand through our investments. With two additional modules to be commissioned, we plan to expand our capacity by 8.4 megawatts, reaching a total of 15 megawatts by year-end. Next page, please. Another strategic area is Techfin. In mobile payments, our pay cell business continues to scale with healthy growth in both revenue and transaction volume. Driven by the strong performance of the post and pay later verticals, PayCell recorded an impressive 36% year-on-year revenue growth. In particular, we continue to see rising demand for post-transactions and transactions in digital stores such as Google Play and the Apple Store. The consumer financing company, Financel, generated 1.3 billion Turkish Liras in revenues, supported by a long portfolio expansion through dedicated campaigns targeting small businesses. The net interest margin improved to 4.9%, driven by more favorable funding costs. Lastly, I would like to reemphasize that we have delivered strong results across the board. We expect a moderation in performance in the second half of the year, in line with our initial projections. we forecast year-on-year inflation to be 30.5%. Considering these factors, we reiterate our full-year guidance. Meanwhile, we continue to closely monitor macroeconomic dynamics and market conditions. Thank you, and now I will hand over to our CFO, Mr. Kamil Kalyan, for our financial highlights.