Operator
Ladies and gentlemen, thank you for standing by. I am Geli, your chorus call operator. Welcome and thank you for joining the Turkcells Conference Call and Live webcast to present and discuss the Turkcells second quarter 2026 financial results. At this time, I would like to turn the conference over to Ms. Azalem Yardim, Investor Relations and Corporate Finance Director. Ms. Yardim, you may now proceed.
Thank you, Geli. Good evening, everyone, and welcome to Turkcells' 2026 second quarter earnings call. 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. Our earnings release and today's presentation are available on our Investor Relations website. Our CEO, Mr. Ali Taha Koç, will begin with an overview of our business performance, followed by our CFO, Mr. Kamil Kalyon, who will take you through our financial results. After the presentations, we will open the line for your questions. It's now my pleasure to hand over to our CEO, Mr. Ali Taha Koç.
Thank you very much, Özlem. Good evening, everyone. Welcome to Turkcell's second quarter 2026 results call. Today, I will take you through our operational and strategic performance for the quarter. After my remarks, Kamil will cover the financial results in more detail, and then we will be happy to take your questions. The key message this quarter is clear we continue to deliver real growth in a challenging environment macro conditions remain demanding with inflation still above 30 percent we keep on delivering real revenue growth for the eighth consecutive quarter supported by discipline pricing continued postpaid additions and improved churn and our strategic growth areas digital business services fixed wireless access fwa data centers tv and techfin took another step forward throughout all these slides you will see one consistent story disciplined value focused execution let's begin with the numbers group revenue reached 71.8 billion turkish liras up 2.5 percent year on year i want to underline this with inflation at 32 percent this is genuine real growth driven by consistent pricing actions and healthy commercial momentum across our businesses EBITDA was 30 billion turkish liras with a margin of 41.8 percent and net income was 5.2 billion turkish liras our profitability continues to reflect the strength of our disciplined operations and balanced capital allocation approach. On the operational side, momentum was strong across the board. We added 284,000 postpaid subscribers in a single quarter. Turkcell Fiber Business added 31,000 net subscribers. Mobile ARPU was realized at 448 TL, while residential fiber ARPU reached 570 TL. Techwin revenue was up 7% to 4.1 billion TL. Digital Business Services revenue grew 33% to 8.7 billion TL. Data Center and Cloud revenue increased 10% to 1.6 billion TL. and Superbox, our fixed WXS technology, added 64,000 subscribers. These businesses are becoming core engines of Turkcell's growth and reinforce our strategy of building a more diversified and resilient business model. Now let me go deeper into each business, starting with mobile business. Our mobile business delivered an outstanding quarter. We crossed the 40 million mobile subscriber milestone for the first time in Turkcell's history. This is a testament to the strength of our network, our brand, and our commercial execution. Our postpaid base reached 32.5 million subscribers, driven by 284,000 net additions in the quarter, and 2.4 million over the last 12 months. Prepaid performance remained broadly stable this quarter, as we successfully continued the transition of our mix toward postpaid, which now accounts for 81% of our mobile base. This mix shift is significant, as postpaid customers deliver higher lifetime value through lower churn and multi-service adoption. Churn tells the same compelling story. Monthly average churn improved to 1.6% down significantly from a year ago. Strong net additions combined with declining churn prove one thing. Customers are choosing Turkcell with long-term loyalty. On pricing, mobile ARPA excluding M2M grew 27% year-on-year. Given the predominantly contractual nature of our postpaid base, pricing actions are gradually reflected in ARPU as contracts renew. Our strategy remains consistent. We take disciplined pricing actions to sustain real revenue growth, supported by our strong brand and superior service quality. One of the most dynamic drivers of our connectivity business today is fixed wireless access. Let me now turn to our FWA performance. Superbox is our fixed wireless access FWA offering, which we view as the next way of growth in home internet. We are the undisputed market leader with a 74% share of FWA, fixed wireless access market. After a soft start at 2025, growth has accelerated for four consecutive quarters. We added 64,000 subscribers this quarter alone, expanding our total Superbox base to 818,000. The strong momentum we are building here is particularly encouraging. Looking ahead, 5G will act as a catalyst. Superbox, our FWA offering, delivers fast, reliable, plug-and-play home internet today. And 5G will elevate that experience to an entirely new level, further accelerating market demand. Superbox enables us to capture broadband demand quickly and efficiently while working hand-in-hand with our fiber strategy and fiber remains the backbone of that strategy let's move to fixed broadband our fixed broadband strategies are straightforward grew grow on our own fiber price with discipline and deliver a premium service and experience Turkcell fiber reached 2.6 million subscribers, with 31,000 net additions in the quarter, and 138,000 over the last 12 months. We continue to increase the share of customers served through our own Fiverr infrastructure, reaching 80%, up three percentage points year on year. The increase reflects our sharp focus on expanding the highest value part of our Fiverr business. The strength of our Fiverr Fiber business goes beyond scale, reflecting the quality of our subscriber base. 88% of our residential fiber subscribers are on 12-month contracts, while monthly churn improved to 1.1%. Together, these metrics provide exceptional revenue visibility and reinforce the resilience of our fiber business. On pricing, residential fiber ARPA grew 37 percent year-on-year, outpacing the inflation rate. Combined with continuous improvements in churn, these results demonstrate the strength of our fiber proposition and the value customers place on our service. At the same time, we continue to expand in Turkey with strong discipline. We passed 194,000 new homes in this quarter, bringing total home passes to 6.7 million across 31 different cities, with a take-up rate of 41%. Take-up rate is one of the metrics we track closely, as it demonstrates that we are expanding where demand is strongest. Connectivity also opens the door to our digital customer service services, starting with TV Plus. TV Plus now serves 2.7 million subscribers. Subscriber momentum continues to gather pace throughout the year. Net additions increased from 62,000 in the fourth quarter of last year to 106,000 in the first quarter of this year and accelerated further to 123,000 this quarter. Content is the key driver of the TV business. Our strategic partnership with HBO Max launched in November has significantly enriched our content offering and resonated well with customers. As a result, viewing time increased by 14% quarter on quarter and 64% year on year. TV Plus is about more than just the numbers of subscribers. It strengthens engagement across our ecosystem. Households that actively use TV Plus interact with Turkcell more frequently, adapt more of our services, and build deeper, longer-lasting relationships with us. Now let's move to the fastest-growing part of the group, digital business services. Digital Business Services delivered an outstanding quarter, with revenue up 33% year-on-year to 8.7 billion TL. This strong performance reflects the depth, scalability, and market strength of the digital infrastructure platform we have built over the years. Today, our data center footprint spans four different locations, Kocaeli, Ankara, Tekirdağ, and Izmir. Following the activation of a new module during the quarter, our active IT capacity reached 54 megawatts. We are now taking this platform to the next level. Construction of hyperscale data center facilities dedicated to Google Cloud's Turkey region in Ankara is underway. A partnership of this caliber is a strong endorsement of the quality of our infrastructure and further strengthens Turkcell's position at the center of Turkey's digital transformation. Including our hyperscale data center investments, our total investment amount reached 612 million As of Q2, data center and cloud represent 2.3% of our group revenues. While still a developer revenue stream today, we see this business as one of the Turkcell's most promising long-term growth platform. Growth in system integration was supported by both hardware and services. More importantly, we entered the second half of the year with more than 1,500 new contracts and a system integration backlog of 16 billion Turkish Liras. This contracted backlog provides exceptional revenue visibility and reinforces our confidence in the sustainability of future growth. Finally, let me turn to our Techfin businesses, another critical pillar of the Turkcell ecosystem. Our Techfin businesses contributed 6% of the group revenue this quarter and continue to strengthen the diversity of our earnings base. Paycell delivered another strong quarter. With revenue increasing 22% year-on-year to 2.4 billion Turkish Liras, pay-later transaction volume surged 84%, while post-transaction volume grew 67%. Consequently, total payment volume across the Paysal ecosystem reached 39 billion Turkish Liras during this Paysal now surged 6.8 million active users across a broad range of everyday payment services, while the ongoing expansion of our post solution is further strengthening our merchant ecosystem. Together, these customer and merchant capabilities continue to reinforce the scale and the resilience of our payment platform. At Finance Health, our focus remains firmly on profitability and portfolio quality. This approach resulted in a significant improvement in net interest margin, while increased from 4.5% to 7.8%, while the cost of risk remained well under control at 3.4%. Revenue was 12% lower year-on-year, reflecting our disciplined approach to portfolio management. Financel continues to lead the customer finance market with a 43% market share by number of Our 16.1 million pre-approved credit customers provide significant potential for future growth. As we close the quarter, one key message stands out. Our core connectivity business continues to perform with resilience, while the businesses we have been investing in are becoming increasingly important drivers of our growth and profitability. We remain committed to executing our strategy with discipline, investing in high-return, long-term growth, while continuously enhancing operating margins. Before I conclude, let me briefly touch on our outlook. Since the beginning of the year, the macroeconomic environment has evolved, and we now anticipated year-end inflation to settle around 28 percent compared with our previous assumptions of 23 percent. Even with this revised inflation assumption, our financial guidance remains unchanged. Finally, I want to express my sincere gratitude to the entire Turkcell team. Their dedication and commitment are behind every achievement we have shared today. With that, I will hand it over to Kamil for a more detailed review of our financial results.
Thank you, Alitabeh. Let me now take you through our financial results. During the second quarter, inflation proved more persistent than anticipated, with regional geopolitical tensions, adding further pressure to the macro outlook. Despite these headwinds, delivering positive real growth clearly underscores the inherent stability of our business model. This performance is a direct result of our strong brand equity, disciplined pricing strategy, and solid commercial momentum across every segment. Simply put, these results give us full confidence in the quality and long-term sustainability of our growth trajectory. Turning to our financial performance in this environment, we generated 71.8 billion TL in revenues, marking an impressive 2.5 year-on-year growth. Turkcell Türkiye continued to drive group expansion, delivering 1 billion TL in incremental revenue, which accelerated momentum across the corporate segment played a pivotal role in supporting this performance. On the profitability side, I want to highlight our deliberate strategy around 5G. As the clear leader at every stage of the 5G transition, we intentionally stepped up our marketing investments this quarter to further solidify customer adoption and translate our 5G leadership into long-term commercial value. Even when I measured against an exceptionally strong comparable base, we delivered a healthy EBITDA margin of 41.8%, which sits fully in line with our full-year expectations. Next slide, please. Moving on to net income, I would like to briefly outline the key dynamics shaping our financial performance this quarter. Following the commercial launch of 5G, depreciation of the associated assets commenced this quarter. Roughly, half of the year-on-year increase in depreciation is attributable to these 5G licenses. As expected, the resulting increase in depreciation impacted the bottom line, while marking an important transition as our 5G investments moved into active deployment and monetization. This impact was partially offset by higher monetary gains associated with the capitalization of the 5G license compared with the same period last year. Despite the year-on-year increase in our net debt position, our active treasury management continued to deliver tangible benefits. Excluding FX effects, we generated higher financial income while reducing financial expenses with both contributing positively to our bottom line year-on-year. Moving to our equity-accounted investments, TOGG, in which we are proud to be a founding shareholder, continued to scale its operations during the quarter. As the business matures, the heavy startup losses of its early years have now largely normalized, delivering a more favorable contribution to the group year-on-year. On the tax side, our tax expense was significantly lower year-on-year, supported by the fixed asset revaluation effect and tax incentives tied to our growing data center business, leading to a meaningful improvement in our effective tax rate. Bringing all these factors together, we delivered a strong bottom line performance, translating into a net income of 5.2 billion TL. Next, I'd like to walk you through the main drivers behind our net FX laws. Before discussing this quarter's FX impact, let me first emphasize that we continue to manage both FX and interest rate risk proactively with a disciplined approach that balances risk, hedging costs, and financial returns. On the borrowing side, the $1 billion U.S. dollar Muraba facility we secured last quarter increased the FX component of our debt portfolio. This exposure is largely balanced by our sizeable FX-denominated cash and financial assets, which provide a natural offset against our FX liabilities. At the same time, we actively manage these assets under our Treasury strategy to optimize returns while maintaining a disciplined approach to FX risk. Another factor contributing to the FX impact this quarter was our remaining 5G license installments. With two payments still outstanding, these obligations remain subject to FX revaluation. Furthermore, the accelerated pace of TL depreciation compared to previous periods has naturally added to our reported FX expenses. We constantly evaluate alternative hedging strategies. However, under current market dynamics, the cost of fully hedging our FX exposure remains elevated. We believe our current approach strikes an effective balance between managing FX risk and maintaining cost efficiency. Finally, it is essential to evaluate our finance expenses holistically rather than focusing solely on reported FX laws. As part of our proactive liquidity management, we utilize FX swaps to convert hard currency liquidity into Turkish lira and deploy the resulting funds into high-yielding money market instruments and deposits. While the cost of these transactions is recognized as FX losses for accounting purposes, the resulting Turkish Lira liquidity generates meaningful interest income, which is recorded separately and therefore is not captured in the FX loss line. Therefore, the reported FX loss should not be viewed in isolation as it captures only one component of the broader economic outcome of our treasury strategy. Next slide, please. Turning to our investments, our operational capex to sales ratio stood at 25% in the second quarter, bringing our first half ratio to 23.2%. We allocated the 81% of our operational CAPEX directly to our core business, primarily supporting 5G network rollout and the continuous expansion of our fiber infrastructure. During the quarter, we added 194,000 new fiber homepaces, expanding our total footprint to 6.7 million. Meanwhile, the fiberization rate of our base stations reached 47.5%, further strengthening the quality and the resilience of our integrated network. Beyond our core telecom infrastructure, we continue to expand our renewable energy portfolio. In April, we acquired a 12.1 megawatt solar power plant in Mersin, bringing our active solar generation capacity to 74.4 MW. We expect this capacity increase further over the coming quarters as projects currently under the development become operational. We also made further progress in our data center investments. We activated the final module of our Ankara data center and broke ground on the data center infrastructure supporting the Google Cloud region in Turkey. With these investment milestones covered, let me now turn to our balance sheet position. Turning to our balance sheet, our financial position remains strong with cash and cash equivalents reaching 89 billion TL at quarter ends. Our cash position remained resilient compared to year-end 2025, despite significant planned cash-out flows, including the first 5G license installment, the annual wireless usage fee, and bonus payments. The Muraba financing completed during the period further strengthened our liquidity position and provided additional financial flexibility. We remain focused on proactive liquidity management, balancing efficient funding with the preservation of a strong balance sheet. As anticipated, these planned cash outflows resulted in net debt of 44 billion TL. Importantly, our leverage ratio remained very low at just 0.4 times, well within our comfort zone and among the strongest levels in our peer group. Looking ahead, our robust liquidity fully covers all remaining 5G license obligations and debt maturities over the next 40 years. Next, let's take a closer look at our FX exposures. Finally, let me touch upon our foreign currency risk management. As part of our proactive treasury strategy, we selectively used FX swaps to optimize returns on our cash balances, converting a portion of our hard currency liquidity into Turkish lira to benefit from attractive TL yields. At the same time, we maintain a substantial portion of our cash in hard currencies, providing a natural hedge against our FX liabilities. At quarter end, 60% of our cash was held in hard currencies, while 87% of our financial debt was denominated in hard currencies. At the end of second quarter, we had $4.3 billion equivalent of FX-denominated financial liabilities, balanced by $2.6 billion equivalent of FX-denominated financial assets and effective hedging portfolio of 1.2 billion U.S. dollars. The year-on-year increase in FX liabilities primarily reflects our 5G license obligations and related investments, the expansion of our data center capacity, and the BOTAS Tendl, all directly linked to the execution of our long-term investment strategy. As a result, our net short FX position remained comfortably within our medium-term target range of plus and minus 1.5 billion U.S. dollars. With that, I will hand the call back to the operator, and we would be happy to take your questions. Thank you very much.
Operator
The first question is from the line of Suzette Hiron with Bank of America. Please go ahead.
Hi, good evening, everyone. Good evening, everyone. Thanks for the call and the opportunity to ask questions. and congratulations on the results. I have three questions. Sorry about that. The first one is very easy. Just wanted to understand what would be the drivers that would help you reaccelerate growth in the second part of the year so that it's more in line with the guidance you provided. I'm talking about revenue growth. The second question, I would like to understand a little bit better why the margins at pay sale and finance sale are so volatile. So, for example, if I look at the pay sale margins, there was a 5.5% decrease this quarter versus last year. To the opposite, the finance sale margins increased by almost 20 percentage points. So I'd like to understand that a little bit better. And then the third question is on the capex. We've seen, I think, your key competitor increasing slightly CapEx guidance in light with the FX volatility and that high inflation. Are you still comfortable with your current CapEx guidance? Thank you so much.
Thank you very much. I will start from the third question. Yes, we are still confident about to reach our guidance in the CapEx side, even if there would be, how can I say, effects increases. As you know, coming from the history, we are very disciplined about the CAPEX spending side. Therefore, we will be carefully spending our money and we think that we do not expect more deviation in the CAPEX guidance side. In the second question, Paycell side, for I think last two years period in Paycell, we are focusing on the POS solutions, in physical POS solutions and the other side. Therefore, the profitability of these transactions a little bit erosing the Paycell's EBITDA margin, while we have a very important amount of growth in the Paycell side. But sometimes these post-transactions can be a little bit erosed, but in total, we are very happy to see the performance of the pay sale side. Regarding the financial side, due to the economical conditions in Turkey, there are, how can I say, tightening policy. Therefore, the demand for the terminal or the equipment side is a little bit, how can I say, poor this year. Therefore, this directly affects the financial credit lines and activities. But since the cost of financing is reducing in this way, therefore, you can see higher EBITDA margins in the financial side. Therefore, the volatility is coming from this one. But we are still very happy to the contribution of the tech-fin side into our overall picture.
So for the first part, we are expecting the growth in the second half. Because currently in the telecom market, the competition is naturalizing and it's becoming a more realistic competition in the market right now compared to mobile number portability. If you compare to last year, this year is a little bit better. And we have a dynamic pricing actions. we put in the first half of the year so the impact of that price changes is gonna be support our second half growth and I'm pretty sure that the DBS and FinTech continues to support our growth in the second half of the year thank you so much that was very clear thank you the next question is from the line of Mandisai with HSBC please go ahead yes hi thanks a lot for taking my question My question is a follow-up on the growth outlook.
So, you know, just wondering when do you see the impact of recent price hikes to become, you know, fully visible in the growth and, you know, it goes towards your guidance of, you know, high single digit level. So if you could give some color around that, that would be very helpful. and then the second question is on your FWA offering very interesting to see the growth in that that segment so if you could help understand you know of your current customer base of around 800,000 if I remember correctly are they all on 4g devices or those devices they have are capable of using 5g as well so do they need to upgrade their device basically to in to benefit from the 5g transition so that will be you know helpful to understand and in terms of the pricing of fwa you know what kind of discount or parity it has versus the fiber product if you could talk about the offering itself uh what speed customers are getting now and what speeds they're likely to get at 5g if you could give some dynamics around the product that will be very helpful thank you very much for the question first of all the first part the growth impact because of the lag effect of our price change and also a 12 month contract so beginning from the end of the Q4, you're going to see the impact and the growth much clearer.
For the FWA part, FWA is currently, as you may know, we got the highest frequency band and we had the biggest investment in the 5G. So we have a higher capacity and our 5G offerings are with supporting Wi-Fi 7 as well. So what we are doing right now is we are just offering this product to all of the customers in Turkey who has an old-fashioned technology using DSL. And then on top of it, it is a very portable and plug-and-play, easy-to-use device. So there's a huge appetite from the market they want to buy it. And at the beginning, we just, for our own 4G users, 4G Superbox users, we started to swap them with our 5G devices because currently, 4G Superbox only supports 4G technology, but But we deploy 5G all around the world, all around the Turkey. So that's in order to utilize that kind of capacity, they need to have a 5G equipment. And if you compare the pricing of our Superbox compared to the fiber, Superbox pricing is a little bit above fiber prices, but there is a huge impact of the usability. So it's very easy. You can go and grab that device and then you can plug and play. and then you can use it very easily did I did I hear that correctly the super box is more expensive than fiber comparable prices you know you can just a little bit you know so just they're close because we put some limits on the super box tariffs so because it is 250 gigabytes or 500 or 1 terabyte so depending on the the limits that you have the price can change but it's comparable prices and that's good and in terms of any response from competition on that site have you seen anything so 74% market share I think answer your
questions thank you the next question is from the line of Gemma item it does without the invest please go ahead thank you for the presentation on congratulations for good results my first question is about the strategic perspective i remember that when you were you know appointed as the ceo in your minds you were you know like maybe expecting or you were focusing to have a two to sell out of one to excel in the future You have your ambitious fighters at that time, and you are progressing the company any year. But I would like to ask a strategic perspective question. You are more diversified now, but you are getting more than being a mobile operator. When do we think we will see the other areas like digital platforms, data center, to have more significant contribution in your revenues? Could we expect any three-year plan that, you know, at least give us a direction, maybe in the following classes? Maybe it's not very clear now, but at least that kind of thing will be about your position against that digital platform more than, you know, being operated. I think it will be very, you know, a good thing to point out because currently, you know, the food cell is very undervalued. In our view, we are difficult to understand the classification, but we understand that the market is focusing on the weak ARPU, at least at this moment. So I think any clarification on that or, you know, any long-term perspective as you did in the past in data center, it could be very helpful. Maybe, sorry for this long question. And the second one is about the short-term perspective. In your earnings release, you mentioned that ARPU improvement could come in the fourth quarter and should we assume that in the fourth quarter are we going to see some improvements or you mean you know it will be in 2027. thank you thank you very much thank you very much for the question so i when i start this role i'm i have a i i have a dream you know so i i have still that dream but i'm gonna executing it firmly and with the discipline approach.
So what we happened in 2016, Truexel started its journey in the DC provider. It built its first DC in 2016, and then it started a DC business as a co-location provider. So co-location business is very good, profitable, a good business. But in order to come up with a like a dream of becoming another Truexel, you need to add the service business on top of it. So that's the reason that we have a huge agreement with Google Cloud, like $3 billion of investment, to reach that dream. Because with the co-location businesses, it is limited. Because what happens, and it affects very deeply about all these political issues, if no one can buy servers, they don't need co-location services as well. So currently, you can see that the price of the servers are going high, and then because of the processor and the RAM crisis, the price of each server is getting higher and higher. So on top of it, everyone's looking for the services, cloud services. So that's the reason that we have a huge agreement with the Google Cloud. Currently this year, our revenue of the DC and cloud revenue reached 2.3% of overall revenues. It was one percent or something a couple of quarters back. It went up to 2.3%, but we are constantly improving that percentage and revenue. And we started the construction of our Google Cloud data centers, and in 18 months, hopefully we're going to start, in two years, we're going to start selling services. And the service business is going to bring them more revenue. And I'm pretty sure that in five to six years, you're going to see more revenues coming out and we are expecting at 2030, 31, 10 to 10, 15% of the revenue is going to come from our data center business. But that is a long-term story. And then also with the AI, I'm pretty sure that the value, this investment value is going to be more recognized because in order to have AI capability, you definitely need a data center. And guess what? Currently, we have 54 megawatts of capacity for AI usage.
And if anybody can bring their servers or the ai chips we have the location for them so that's the reason that i have i'm very optimistic about the revenue and it's going to come any other question jamal can you repeat the second question i'm sorry i forgot that the second question john uh about our pool article side you know uh you met in your early release you expect the recovery in the art pool uh you know in fourth quarters and onwards, do you mean, you know, after two to four quarters, you know, 2007 or we are going to see it in the fourth quarters? Thank you.
So what we just put the dip and the ARPU levels and then I'm pretty sure that it's going to slowly increase what we are going to see the real impact in 2027.
Yeah, but you will get the signals, the positive signals, because we are investing a lot of things to make our output high starting from this year therefore you will be seeing the signals in the third quarter of 2026 most probably in fourth quarter but the exact results will be taken in 2027. and one the one follow-up related to your you know backlog from system integration project we see it at 16 billion versus the time we have been talking should I in the previous quarter should we expect gradual increase in the following quarters or should we expect more significant improvements maybe late 2027 or 2028 on that front thank you yes when you look at our Q1 results and Q2 results we had very very important significant projects coming from the governmental bodies and the other side therefore we see the valuable effects of these projects this year most probably they will because when you start a big project in a company or in the governmental side there are a lot of following projects are coming from this project therefore our expectation in 2027 these projects will be continuing in the 2027 because as we explained previously the most important or strong muscles of our company we are not only focusing on the individual side only we are also very very strong in the enterprise side in the market therefore that's why google or the other big companies are choosing us as a partnership yes we have a very good technical expertise but our sales force regarding this enterprise side is very strong therefore we invested this service line six years ago or seven years ago but we are now harvesting this
Operator
investment in these years and most probably it will continue in the coming years thank you thank you for the answers next question is from the line of yenia bistrova with barclays please go ahead Hello, good evening, and thank you for the presentation.
I have just one quick question, and I apologize if you covered it in the past, but I wanted to understand better, or maybe you could break down for me the expected payments for the 5G tender. I know there was a payment in Q1 including the VAT, but correct me if I'm wrong. So what was the specifically 5G payment in Q1, and what are the expected payments in the next quarter, and what is the timing for that?
It is three installments. The first installment is also included the VAT, it happened in January of this year. The second installment is going to be in December this year, and it's around $400 million. dollars and the third and the last installment is going to be next year 2027 may and it's again like around 400 million dollars yeah and the first installment amount is 625 million u.s dollars because of it includes the v80 as well so we pay the v80 or upfront okay thank you that that's very clear thank you the next question is from the line of yasin sarikhan with yapi Kredi Yathirim.
Operator
Please go ahead.
Thank you so much for the presentation. I have two questions. Do you expect any changes to the credit limits? As far as I know that there is a limit to installment on newly devices and this is so important for the 5G penetration and also for the financial. And my second question is that have you started to see the contribution from the 5G on ARPA growth. And my last question will be related to data centers. So how much EBITDA data centers generate in the second quarter of this year? And if you have any image, could you share details about the data center or any other segment for digital business services? Thank you so much.
Thank you very much for the question. first part is very important for us especially with the 5G penetration it's around 35 percent right now of our all of our users 30 to 35 percent of them has the 5G phones but in order to support that we are supporting the local production also late last year we had agreement with Samsung to produce in Turkey which is going to be included that production is going to be a series phone and it's going to be below 20 000 Turkish for us but with the latest developments especially on the ramp crisis and then also supply chain issues. We are seeing that the production of the phones are getting more expensive. So that's the reason that we are doing lots of lobbying in order to increase that limit. But in our planning, we always keep that limit among 20,000 Turkish dollars fixed. But if it's changed, I'm pretty sure that it's going to positively affect our outlook, especially for the financial but i'm pretty sure that it lost 18 months ago they changed that limit i'm pretty sure that in uh soon because we are not going to able to find any phone which is smaller than twenty thousand dollars so we cannot do any installments but on top of it you can do a three month three installments uh besides 12 installments you can do three installments but overall i'm pretty sure that for the penetration that limit needs to be changed the second thing that the 5G we can see that the usage amount of the usage and then the data usage is increased and on top of it the 5G is gonna improve our ARPU slowly and but I'm pretty sure that the user who are using 5G they hire ARPUs and then when we move them all to our customers to from 4G to 5G with the 5G capable phones, I'm pretty sure that our ARPU is going to have a positive impact on that.
And regarding the EBITDA margins of the DC operation, we are not expecting any erosion in our EBITDA margins. When we look at our business plans, we see that the EBITDA margins that will come from this DC operation will not erose our EBITDA margins.
Well, with the 5G, our pool levels, we are bringing a new concept called FWA, fixed-wire success, so we are double using our 5G spectrum for the cell phones as well as the home internet, so we are going to see a growth and a revenue growth from the FWA part as well.
Operator
Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Turkson Management for any closing comments.
Thank you very much, and see you in a third quarter call. Thank you very much for sparing time.
Thank you for joining us.
