Turkcell Iletisim Hizmetleri A S 6-K, filed Aug 14, 2026
Turkcell Iletisim Hizmetleri A S (TKC)
About this 6-K
Turkcell Iletisim Hizmetleri A S filed this 6-K on August 14, 2026.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2026
Commission File Number: 001-15092
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
(Translation of registrant’s name into English)
Turkcell Küçükyalı Plaza
Aydınevler Mahallesi, İsmet İnönü Caddesi, No:20
Küçükyalı B Blok Ofispark
34854 Maltepe
Istanbul, Türkiye
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
x Form 20-F ¨ Form 40-F
Enclosure: A press release dated August 13, 2026 announcing the release of the registrant's second quarter 2026 results.
Contents
| · | Please note that all financial data is consolidated and comprises that of Turkcell İletişim Hizmetleri A.S. (the “Company” or “Turkcell”) and its subsidiaries and associates (together referred to as the “Group”) unless otherwise stated. |
| · | We have three reporting segments: |
| o | "Turkcell Türkiye," which comprises our telecom, digital services, and digital business services related businesses, retail channel operations, smart devices management, and consumer electronics sales through digital channels in Türkiye. All non-financial data presented in this press release is unconsolidated and comprises Turkcell Türkiye only unless otherwise stated. The terms "we," "us," and "our" in this press release refer only to Turkcell Türkiye, except in discussions of financial data, where such terms refer to the Group, and except where context otherwise requires. |
| o | “Techfin” which comprises all of our financial services businesses. |
| o | “Other” which primarily comprises our international, energy businesses, non-group call center, and intersegment eliminations. |
| · | This press release provides a year-on-year comparison of our key indicators. Figures in parentheses following the operational and financial results for June 30, 2026, refer to the same item as of June 30, 2025. For further details, please refer to our consolidated financial statements and notes as of and for June 30, 2026, accessible via our website in the investor relations section (http://www.turkcell.com.tr). |
| · | Selected financial information presented in this press release for the second quarter of 2025 and 2026 is based on IFRS figures in TRY terms unless otherwise stated. |
| · | In the tables used in this press release, totals may not foot due to rounding differences. The same applies to the calculations in the text. |
| · | Year-on-year percentage comparisons in this press release reflect mathematical calculations. |
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NOTICE
This press release contains the Company’s financial information for the period ended June 30, 2026, prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). This press release contains the Company’s financial information prepared in accordance with International Accounting Standard 29, Financial Reporting in Hyperinflationary Economies (“IAS29”). Therefore, the financial statement information included in this press release for the periods presented is expressed in terms of the purchasing power of the Turkish Lira as of June 30, 2026. The Company restated all non-monetary items in order to reflect the impact of the inflation restatement reporting in terms of the measuring unit current as of June 30, 2026. Comparative financial information has also been restated using the general price index of the current period.
This release includes forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, Section 21E of the U.S. Securities Exchange Act of 1934, and the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. This includes, in particular, and without limitation, our targets for consolidated revenue growth, data center and cloud revenue growth, EBITDA margin, and operational capex over sales ratio for the full year 2026. In establishing such guidance and outlooks, the Company has used a certain number of assumptions regarding factors beyond its control, particularly in relation to macroeconomic indicators, such as expected inflation levels, that may not be realized or achieved. More generally, all statements other than statements of historical facts included in this press release, including, without limitation, certain statements regarding our operations, financial position, and business strategy, may constitute forward-looking statements. Forward-looking statements can generally be identified by the use of forward-looking terminology such as, among others, “will,” “expect,” “intend,” “estimate,” “believe,” “continue,” and “guidance.”
Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. In addition, certain forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Many factors could cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements that may be expressed or implied by forward-looking statements. Should one or more of these risks or uncertainties materialize or underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended, planned, or projected.
These forward-looking statements are based upon a number of assumptions and other important factors that could cause our actual results, performance, or achievements to differ materially from our future results, performance, or achievements expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to us are expressly qualified in their entirety by reference to these cautionary statements. For a discussion of certain factors that may affect the outcome of such forward-looking statements, see our Annual Report on Form 20-F for 2025 filed with the U.S. Securities and Exchange Commission, and in particular, the risk factor section therein. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release. All forward-looking statements in this press release are based on information currently available to the Company, and we undertake no duty to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
The Company makes no representation as to the accuracy or completeness of the information contained in this press release, which remains subject to verification, completion, and change. No responsibility or liability is or will be accepted by the Company or any of its subsidiaries, board members, officers, employees, or agents as to or in relation to the accuracy or completeness of the information contained in this press release or any other written or oral information made available to any interested party or its advisers.
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FINANCIAL HIGHLIGHTS
| Million TRY | Q225 | Q226 | y/y% | H125 | H126 | y/y% | ||||||||||||||||||
| Revenue | 70,047 | 71,775 | 2.5 | % | 137,216 | 144,948 | 5.6 | % | ||||||||||||||||
| EBITDA1 | 30,498 | 30,013 | (1.6 | )% | 59,851 | 60,298 | 0.7 | % | ||||||||||||||||
| EBITDA Margin (%) | 43.5 | % | 41.8 | % | (1.7 | )pp | 43.6 | % | 41.6 | % | (2.0 | )pp | ||||||||||||
| EBIT2 | 11,649 | 9,451 | (18.9 | )% | 23,152 | 20,623 | (10.9 | )% | ||||||||||||||||
| EBIT Margin (%) | 16.6 | % | 13.2 | % | (3.4 | )pp | 16.9 | % | 14.2 | % | (2.7 | )pp | ||||||||||||
| Net Income | 5,549 | 5,235 | (5.7 | )% | 9,866 | 10,195 | 3.3 | % | ||||||||||||||||
| · | Steady growth performance in Q226, supported by a diversified business model; |
| o | Consolidated revenues increased by 2.5% YoY to TRY 71.8 billion. Turkcell Türkiye remained the largest contributor, growing by 1.6% year-on-year, on the strength of corporate revenues. Techfin and Other segments supported the Group’s top-line growth, expanding 7.0% and 18.4% respectively. |
| o | EBITDA1 reached TRY 30.0 billion, leading to an EBITDA margin of 41.8%. EBIT2 reflected higher depreciation and amortization associated with our 5G investments, resulting in an EBIT margin of 13.2%. |
| o | Our strong operating performance continued to support the bottom line. Despite the impact of higher depreciation and finance costs, monetary gains and a favorable tax profile provided meaningful offsets, resulting in a solid net income of TRY 5.2 billion for the quarter. |
| o | The balance sheet remained disciplined, with net leverage3 of 0.36x and the net FX position managed within our medium-term target range of minus USD 1.5 billion to plus USD 1.5 billion. |
| · | 5G network capacity driving the strongest Superbox (Fixed Wireless Access) growth since Q220; |
| o | Superbox delivered 64 thousand net additions in Q226; its strongest quarterly performance since Q220. |
| o | The mobile subscriber base exceeded 40 million for the first time in our history, with 243 thousand net additions in Q226. |
| o | 284 thousand mobile postpaid net additions; postpaid subscriber base share at 81% |
| o | 44 thousand total fiber net additions including resell operations |
| o | Accelerated fiber investment with 194 thousand new fiber homepasses, bringing the total to 6.7 million |
| o | Pricing actions implemented in the first half of 2026 are expected to support ARPU growth, particularly from the end of the fourth quarter onward. |
(1) EBITDA is a non-GAAP financial measure. See page 14 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income.
(2) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses.
(3) Our net debt calculation includes financial assets at fair value, whether through other comprehensive income or through profit and loss, reported under current and non-current assets, as well as financial assets at amortized cost. Required reserves held in CBRT balances are not included in total cash and net debt calculation.
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COMMENTS BY CEO, ALİ TAHA KOÇ, PhD
Building on the strong momentum generated by the 5G era launched with great enthusiasm in the first quarter, we delivered robust results in the second quarter in line with our strategic targets. During this period, when competition became more rational and value-oriented, we sustained our strong subscriber acquisition performance while taking steps to further strengthen our ARPU going forward. The improvement in our Net Promoter Scores (NPS) following the 5G launch has been a key indicator of our subscribers' trust in our service quality and their satisfaction. These results once again demonstrated that our strategy is strongly reflected in both our operational performance and customer experience.
In the first half of the year, geopolitical developments and fluctuations in energy costs drove the inflation outlook above expectations set at the beginning of the year. Nevertheless, we maintained our real growth performance thanks to our diversified business model and disciplined commercial approach. In the second quarter, our consolidated revenues increased by 2.5% year-on-year to TRY 71.8 billion. Consolidated EBITDA¹ stood at TRY 30.0 billion, while our strong EBITDA margin of 41.8% remained in line with our year-end guidance, reflecting our solid operational performance. Our net income stood at TRY 5.2 billion. Considering the change in the macroeconomic outlook, we are revising our year-end inflation assumption to 28%. Despite this update, we maintain our full-year guidance of 5-7% real revenue growth, an EBITDA margin of 40-42%, and operational capital expenditures2 at approximately 25% of revenues.
Turning Our Network Strength into Value
Mobile Number Portability (MNP) market volume, a key indicator of competitive dynamics in the sector, fell below 2.8 million in the second quarter. During this period, when competition was more rational and value-oriented compared to 2025, we sustained our growth through compelling value propositions and a disciplined commercial approach. With 243 thousand net mobile subscriber additions in the second quarter, our total mobile subscriber base surpassed 40 million for the first time in our history, further reinforcing our leadership in the mobile market. Our postpaid subscriber base, a key pillar of our sustainable growth, expanded by 284 thousand net additions. This expansion in our subscriber base was also significantly supported by the improvement in our churn rate, driven by favorable market dynamics and effective subscriber retention actions. Our churn rate declined by 0.6 percentage points year-on-year to 1.6% in the second quarter.
In the second quarter, we demonstrated through a concrete example that 5G, for which we meticulously prepared from network readiness and the tender process to promotional activities and the commercial launch, is not merely a next-generation technology offering greater speed and capacity, but a critical infrastructure enabling digital transformation across every aspect of life. Thanks to the high speed and ultra-low latency of Turkcell 5G, doctors in İstanbul successfully performed remote surgery on a patient approximately 1,500 kilometers away in Muş. This historic operation marked a significant milestone for real-world 5G applications, while powerfully demonstrating how our technology investments translate into social impact, further underscoring Turkcell’s pioneering position in 5G.
With the rollout of 5G, we achieved significant improvements in customer experience. Our Net Promoter Scores (NPS) increased across all measured areas, including network coverage, internet speed, connection stability and 5G awareness. These results have been one of the strongest indicators of the value created by our network investments for our customers. We also translated the advantage of our strong network infrastructure into value-generating services for our customers in Fixed Wireless Access (FWA). Superbox, which we offer in regions not yet covered by our fiber infrastructure, has started to deliver a much more powerful user experience with 5G technology. With our Superbox 5G modems featuring Wi-Fi 7 technology, we continue to differentiate ourselves with our superior speed and service quality in FWA, just as we do in mobile. As a result, we recorded 64 thousand net Superbox additions in the second quarter, marking our strongest quarterly performance since the second quarter of 2020. Reflecting our customers’ trust and growing demand for Turkcell’s quality, total net Superbox additions over the past four quarters exceeded 163 thousand.
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On the other hand, we continued to expand our footprint in fiber infrastructure, one of the most critical components of our country’s digital transformation, at an accelerating pace. In the second quarter, we extended our end-to-end fiber services, underpinned by Turkcell’s superior quality, with 194 thousand new homepass. Within our fixed subscriber base, which we manage with a strong focus on profitability, the share of Turkcell fiber subscribers increased by 3.4 percentage points year-on-year to 80%. Therefore, we sustained our growth with a continued focus on our own infrastructure, where we generate greater value. Additionally, our customers' demand for higher speeds continues to increase. The share of residential fiber subscribers opting for speeds of 1000 Mbps or above increased significantly from 8% in the same period last year to 29% in the second quarter of 2026. This strong demand demonstrates that our investments are resonating with our customers, and the demand for the unique speed and service quality offered by Turkcell continues to grow. During the remainder of the year, we will continue to invest in our fiber infrastructure, bringing Turkcell’s high-quality fiber services to more homes and making ultra-high speeds accessible to a broader customer base.
Our Diversified Revenue Structure Continues to Support Growth
The first half of 2026 was a period in which we saw the tangible results of our revenue diversification strategy, which we have consistently pursued over many years. Alongside our core mobile business, our investments in digital services, data center and cloud, Techfin, and digital content are making an increasingly strong contribution to the Group’s growth.
The Techfin segment, accounting for 6% of consolidated revenues, grew by 7.0% in the second quarter. Paycell revenues increased by 21.9% year-on-year, driven by its strong performance across all business lines. The POS segment became the main driver of this growth, thanks to the flexible digital integration capabilities it offers to customers and high customer satisfaction.
Digital Business Services (DBS) maintained its strong growth momentum, increasing its revenues by 33.1% year-on-year in the second quarter. While the highest contribution to this performance came from managed services and hardware revenues achieved through large-scale projects, our Data Center and Cloud revenues grew by 9.8% in the same period. With the commissioning of the fifth module of our Ankara data center, we raised our active capacity to 54 MW. In addition, we reached another important milestone in our long-term investments in Türkiye’s digital infrastructure by commencing the construction of three next-generation data centers as part of our collaboration with Google Cloud.
On the digital content side, we continued to strengthen the TV+ ecosystem. Through our strategic collaboration with Warner Bros. Discovery, launched in November last year, we brought HBO Max content to TV+ subscribers, while globally acclaimed productions and major sporting events further enhanced the platform’s value proposition. As a result, we recorded 123 thousand net TV+ subscriber additions in the second quarter, taking our subscriber base above 2.7 million. Our enriched content portfolio, supporting our “TV+ is All You Need” approach, contributed to strong growth in user engagement and viewing times.
Strong Representation on Global Platforms
With the responsibility of representing Türkiye’s technology and telecommunications vision on a global scale, I am immensely proud to have assumed the Chairmanship of the GSM Association's (GSMA) Technology Group, which brings together more than 1,000 operators and companies worldwide. This role is a significant international indicator not only of Turkcell’s 32-year technological expertise but also of our country’s competence in digital transformation. In the coming period, we will continue to bring Turkcell’s experience and expertise to initiatives shaping the future of the global mobile ecosystem.
Looking ahead, we will continue to execute our strategy with the same discipline and determination. Building on our strong financial position and diversified business model, we will continue to invest in Türkiye’s digital future, make next-generation technologies accessible to more people, and create sustainable value for our customers. I would like to thank all my colleagues for their contributions to our success, and our customers, shareholders, and Board of Directors for their continued trust.
(1) EBITDA is a non-GAAP financial measure. See page 14 for the explanation of how we calculate adjusted EBITDA and its reconciliation to net income.
(2) Excluding license fees
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FINANCIAL AND OPERATIONAL REVIEW
Financial Review of Turkcell Group
| Quarter | Half Year | |||||||||||||||||||||||
| Profit& Loss Statement (million TRY) | Q225 | Q226 | y/y% | H125 | H126 | y/y% | ||||||||||||||||||
| Revenue | 70,046.7 | 71,775.1 | 2.5 | % | 137,215.8 | 144,948.0 | 5.6 | % | ||||||||||||||||
| Cost of revenue1 | (32,117.3 | ) | (33,008.1 | ) | 2.8 | % | (62,358.8 | ) | (67,462.1 | ) | 8.2 | % | ||||||||||||
| Cost of revenue1/Revenue | (45.9 | )% | (46.0 | )% | (0.1 | )pp | (45.4 | )% | (46.5 | )% | (1.1 | )pp | ||||||||||||
| Gross Margin1 | 54.1 | % | 54.0 | % | (0.1 | )pp | 54.6 | % | 53.5 | % | (1.1 | )pp | ||||||||||||
| Administrative expenses | (2,609.7 | ) | (2,917.3 | ) | 11.8 | % | (5,411.0 | ) | (6,105.5 | ) | 12.8 | % | ||||||||||||
| Administrative expenses/Revenue | (3.7 | )% | (4.1 | )% | (0.4 | )pp | (3.9 | )% | (4.2 | )% | (0.3 | )pp | ||||||||||||
| Selling and marketing expenses | (4,414.4 | ) | (5,458.1 | ) | 23.6 | % | (8,916.7 | ) | (10,319.6 | ) | 15.7 | % | ||||||||||||
| Selling and marketing expenses/Revenue | (6.3 | )% | (7.6 | )% | (1.3 | )pp | (6.5 | )% | (7.1 | )% | (0.6 | )pp | ||||||||||||
| Net impairment losses on financial and contract assets | (406.9 | ) | (378.7 | ) | (6.9 | )% | (678.7 | ) | (763.1 | ) | 12.4 | % | ||||||||||||
| EBITDA2 | 30,498.4 | 30,012.8 | (1.6 | )% | 59,850.5 | 60,297.6 | 0.7 | % | ||||||||||||||||
| EBITDA Margin | 43.5 | % | 41.8 | % | (1.7 | )pp | 43.6 | % | 41.6 | % | (2.0 | )pp | ||||||||||||
| Depreciation and amortization | (18,849.1 | ) | (20,561.4 | ) | 9.1 | % | (36,698.6 | ) | (39,674.7 | ) | 8.1 | % | ||||||||||||
| EBIT3 | 11,649.3 | 9,451.4 | (18.9 | )% | 23,151.9 | 20,622.9 | (10.9 | )% | ||||||||||||||||
| EBIT Margin | 16.6 | % | 13.2 | % | (3.4 | )pp | 16.9 | % | 14.2 | % | (2.7 | )pp | ||||||||||||
| Net finance income / (costs) | (1,771.9 | ) | (2,114.2 | ) | 19.3 | % | (2,273.3 | ) | (435.0 | ) | (80.9 | )% | ||||||||||||
| Finance income | 3,820.0 | 4,700.0 | 23.0 | % | 9,360.4 | 8,692.1 | (7.1 | )% | ||||||||||||||||
| Finance costs | (6,683.2 | ) | (11,678.7 | ) | 74.7 | % | (14,067.9 | ) | (19,839.5 | ) | 41.0 | % | ||||||||||||
| Monetary gain | 1,091.4 | 4,864.5 | 345.7 | % | 2,434.2 | 10,712.4 | 340.1 | % | ||||||||||||||||
| Net other income / (expenses) | (257.0 | ) | (544.0 | ) | 111.7 | % | (886.7 | ) | (1,001.3 | ) | 12.9 | % | ||||||||||||
| Share of loss of equity accounted investees | (1,590.8 | ) | (408.4 | ) | (74.3 | )% | (2,800.8 | ) | (81.5 | ) | (97.1 | )% | ||||||||||||
| Profit Before Income Tax | 8,029.7 | 6,384.8 | (20.5 | )% | 17,191.1 | 19,105.1 | 11.1 | % | ||||||||||||||||
| Income tax expense | (2,232.8 | ) | (1,149.6 | ) | (48.5 | )% | (7,077.9 | ) | (8,910.4 | ) | 25.9 | % | ||||||||||||
| Profit from continuing operations | 5,796.8 | 5,235.2 | (9.7 | )% | 10,113.2 | 10,194.7 | 0.8 | % | ||||||||||||||||
| Loss from discontinued operations | (247.6 | ) | - | (100.0 | )% | (247.6 | ) | - | (100.0 | )% | ||||||||||||||
| Net Income | 5,549.3 | 5,235.2 | (5.7 | )% | 9,865.6 | 10,194.7 | 3.3 | % | ||||||||||||||||
(1) Excluding depreciation and amortization expenses
(2) EBITDA is a non-GAAP financial measure. See page 14 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income.
(3) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses.
Revenue of the Group rose by 2.5% year-on-year, reaching TRY 71,775 million (TRY 70,047 million) in Q226.
Consolidated revenue growth was driven primarily by 1.6% growth of Turkcell Türkiye’s revenues, which account for 90% of the Group top-line.
| – | Corporate revenues increased by 15.5%, supported by the continued strong performance of Digital Business Services (DBS), where revenues grew by 33.1%. Growth was driven by robust hardware sales alongside expanding recurring service revenues. Data Center & Cloud revenues also maintained strong momentum, increasing by 9.8% year-on-year. |
| – | Consumer segment revenues were broadly stable year-on-year. This reflected the lagged impact of pricing actions due to the contractual nature of our subscriber base, together with the more challenging competitive environment throughout 2025. As market dynamics became increasingly rational in 2026, we continued to implement inflation-aligned pricing actions during the first half of the year. We expect these actions to support ARPU growth progressively, with a more meaningful contribution becoming visible from the end of the fourth quarter onward. |
| – | Wholesale revenue decreased by 4.1% to TRY 3,030 million (TRY 3,161 million). |
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Techfin segment revenues, which accounted for 6% of the Group’s revenues, grew by 7.0% to TRY 4,123 million (TRY 3,853 million) in the second quarter. This performance was driven primarily by Paycell, which delivered a strong 21.9% increase in revenues. For details, please see the Techfin section.
The Other segment revenues, comprising 4% of the Group’s revenues, which mostly includes Turkcell International, the energy business, and non-group call center revenues, rose by 18.4% to TRY 2,950 million (TRY 2,491 million) in Q226. Non-group call center revenues were the main driver of this strong performance.
Cost of revenue (excluding depreciation and amortization) remained broadly stable year-on-year at 46.0% (45.9%) as a percentage of revenues for the second quarter of 2026. The year-on-year movement primarily reflected higher personnel expenses (0.8pp), managed service expenses (0.7pp), cost of goods sold (0.4pp), and mobile finance expenses (0.3pp), largely offset by lower energy expenses (0.8pp), funding costs (0.7pp), treasury share (0.4pp), and other expenses (0.2pp) as a percentage of revenues. The increases in cost of goods sold, managed service expenses and mobile finance expenses were primarily driven by strong growth in our Digital Business Services and Techfin businesses, in line with the revenue expansion and business mix of these segments.
Administrative expenses increased to 4.1% (3.7%) as a percentage of revenues in the second quarter.
Selling and marketing expenses as a percentage of revenues increased to 7.6% (6.3%), primarily reflecting our deliberate increase in marketing investments following the 5G launch, aimed at accelerating customer adoption and maximizing the long-term commercial value of our 5G leadership, alongside continued strategic investments to strengthen brand visibility and customer engagement.
Net impairment losses on financial and contract assets were at 0.5% (0.6%) as a percentage of revenues in Q226.
EBITDA1 reached TRY 30,013 million in Q226, translating into an EBITDA margin of 41.8% (43.5%). The year-on-year margin development mainly reflected our deliberate increase in marketing investments following the 5G launch, as well as the business mix impact of strong growth in corporate projects within our Digital Business Services.
| – | Turkcell Türkiye’s EBITDA was TRY 27,839 million (TRY 28,850 million), resulting in an EBITDA margin of 43.0% (45.3%). |
| – | Techfin segment delivered strong profitability improvement, with EBITDA increasing to TRY 1,310 million (TRY 970 million). This performance resulted in a solid 6.6pp expansion in the EBITDA margin to 31.8% (25.2%). |
| – | The EBITDA of Other segment increased to TRY 864 million (TRY 678 million), while the EBITDA margin improved by 2.1pp to 29.3%. |
Depreciation and amortization expenses increased by 9.1%, amounting to TRY 20,561 million (TRY 18,849 million). This increase was primarily due to depreciation charges related to our 5G investments and license.
Net finance expenses totaled TRY 2,114 million (TRY 1,772 million) in this quarter. Higher FX losses, driven mainly by a larger net short FX position associated with 5G investments and the depreciation of the Turkish lira, were partially offset by monetary gains following the capitalization of the 5G license.
See Appendix A for details of net foreign exchange gain and loss.
Net Other expenses were TRY 544 million (TRY 257 million) in Q226.
Income tax expense decreased to TRY 1,150 million (TRY 2,233 million) in the second quarter, supported by higher fixed asset revaluation recognized during the period and tax incentives related to our data center investments. These benefits more than offset the impact of the discontinuation of inflation accounting in the statutory financial statements as of Q425.
Net income of the Group remained solid at TRY 5,235 million (TRY 5,549 million) in Q226. As TOGG continued to scale its operations, its financial performance improved significantly year-on-year, resulting in a more favorable contribution to the Group’s consolidated net income.
(1) EBITDA is a non-GAAP financial measure. See page 14 for the explanation of how we calculate adjusted EBITDA and its reconciliation to net income.
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Total cash & debt: Consolidated cash as of June 30, 2026 amounted to TRY 89,275 million compared with TRY 108,136 million as of December 31, 2025. The decline was primarily attributable to significant cash outflows in the first quarter, including USD 653 million (including VAT) for the first installment of the 5G license and the Wireless Usage Fee, as well as employee bonus payments. As of the end of the second quarter of 2026, 40% of our cash is in TRY, 40% in USD, and 20% in EUR. Excluding FX swap transactions, 51% of our cash is in USD, 31% in EUR, and 18% in TRY.
Consolidated debt increased to TRY 212,068 million as of June 30, 2026, up from TRY 186,823 million as of December 31, 2025. The increase was driven primarily by the USD 1 billion Murabaha syndicated loan facility secured in March. Lease liabilities accounted for TRY 16,597 million of our consolidated debt. Following hedging transactions, 68% of our consolidated debt was in USD, 19% in EUR, 8% in TRY, and 5% in CNY. As of June 30, 2026, net debt1 increased to TRY 44,494 million from TRY 17,532 million as of December 31, 2025, with a net debt to EBITDA ratio of 0.36x.
We continued to manage the Group’s balance sheet through a holistic and disciplined approach, balancing FX exposure, hedging costs and cash returns. As we funded major strategic investments, including 5G commitments, we maintained a selective hedging strategy, while effectively utilizing the Turkish lira liquidity generated through FX swap transactions to enhance financial returns. As of the end of second quarter, the Group’s net short FX position stood at USD 1.3 billion, including the hedging portfolio and advance payments, remaining within the medium-term target range of minus USD 1.5 billion to plus USD 1.5 billion.
Capital expenditures increased to TRY 106,824 million in the first half of the year driven by a USD 1.2 billion 5G license (exc. VAT). In the second quarter of 2026, we recorded total capex of TRY 24,949 million. Operational capex (excluding license fees) accounted for 25.0% and 23.2% of total revenues in Q226 and H126, respectively.
| Half Year | ||||||||
| Capital expenditures (million TRY) | H125 | H126 | ||||||
| Operational Capex | 25,388.3 | 33,630.5 | ||||||
| License and Related Costs | 290.0 | 59,777.3 | ||||||
| Non-operational Capex (Including IFRS15& IFRS16) | 27,905.5 | 13,416.3 | ||||||
| IFRS15 | 6,376.6 | 5,367.3 | ||||||
| IFRS16 | 17,119.3 | 5,074.4 | ||||||
| Other | 4,409.6 | 2,974.6 | ||||||
| Total Capex | 53,583.9 | 106,824.1 | ||||||
| Operational
Capex/Revenue (Excluding License and Related Costs) | 18.5 | % | 23.2 | % | ||||
(1) Our net debt calculation includes financial assets at fair value, whether through other comprehensive income or through profit and loss, reported under current and non-current assets, as well as financial assets at amortized cost. Required reserves held in CBRT balances are not included in total cash and net debt calculation.
| 9 |
Operational Review of Turkcell Türkiye
| Quarters | ||||||||||||||||||||
| Summary of Operational Data | Q225 | Q126 | Q226 | y/y % | q/q % | |||||||||||||||
| Number of subscribers1 (million) | 43.5 | 44.5 | 44.8 | 3.0 | % | 0.7 | % | |||||||||||||
| Mobile Postpaid (million) | 30.1 | 32.2 | 32.5 | 8.0 | % | 0.9 | % | |||||||||||||
| Mobile M2M (million) | 5.4 | 6.2 | 6.1 | 13.0 | % | (1.6 | )% | |||||||||||||
| Mobile Prepaid (million) | 8.7 | 7.6 | 7.5 | (13.8 | )% | (1.3 | )% | |||||||||||||
| Turkcell Fiber (thousand) | 2,488.2 | 2,594.9 | 2,625.7 | 5.5 | % | 1.2 | % | |||||||||||||
| Resell Fixed Broadband (thousand) | 763.3 | 687.4 | 657.7 | (13.8 | )% | (4.3 | )% | |||||||||||||
| ADSL (thousand) | 695.9 | 573.3 | 532.6 | (23.5 | )% | (7.1 | )% | |||||||||||||
| Cable (thousand) | 31.3 | 23.3 | 21.1 | (32.6 | )% | (9.4 | )% | |||||||||||||
| Fiber (thousand) | 36.0 | 90.9 | 104.0 | 188.9 | % | 14.4 | % | |||||||||||||
| Superbox2 (thousand) | 654.9 | 754.1 | 818.1 | 24.9 | % | 8.5 | % | |||||||||||||
| IPTV (thousand) | 1,430.0 | 1,423.2 | 1,429.9 | (0.01 | )% | 0.5 | % | |||||||||||||
| Churn ()%3 | ||||||||||||||||||||
| Mobile Churn ()% | 2.2 | % | 1.6 | % | 1.6 | % | (0.6 | )pp | - | |||||||||||
| Fixed Churn ()% | 1.7 | % | 1.6 | % | 1.6 | % | (0.1 | )pp | - | |||||||||||
| Average mobile data usage per user (GB/user) | 19.2 | 22.5 | 26.3 | 37.0 | % | 16.9 | % | |||||||||||||
(1) Including mobile, fixed broadband, IPTV, and wholesale (MVNO&FVNO) subscribers
(2) Superbox subscribers are included in mobile subscribers.
(3) Churn figures represent average monthly churn figures for the respective periods.
| ARPU (Average Monthly Revenue per User) | Quarters | |||||||||||||||||||
| (TRY,IAS29 Adjusted) | Q225 | Q126 | Q226 | y/y % | q/q % | |||||||||||||||
| Mobile ARPU, blended | 404.8 | 388.7 | 382.7 | (5.5 | )% | (1.5 | )% | |||||||||||||
| Mobile ARPU, blended (excluding M2M) | 465.7 | 453.5 | 447.6 | (3.9 | )% | (1.3 | )% | |||||||||||||
| Postpaid | 463.1 | 436.6 | 428.4 | (7.5 | )% | (1.9 | )% | |||||||||||||
| Postpaid (excluding M2M) | 558.8 | 531.4 | 522.5 | (6.5 | )% | (1.7 | )% | |||||||||||||
| Prepaid | 208.9 | 185.9 | 186.9 | (10.5 | )% | 0.5 | % | |||||||||||||
| Fixed Residential ARPU, blended | 547.8 | 584.2 | 579.6 | 5.8 | % | (0.8 | )% | |||||||||||||
| Residential Fiber ARPU | 552.5 | 579.0 | 570.2 | 3.2 | % | (1.5 | )% | |||||||||||||
The competitive landscape continued to rationalize in the second quarter of 2026. Quarterly Mobile Number Portability (MNP) market volume fell below 2.8 million, compared with approximately 5 million in the same period last year. Against this backdrop, our total subscriber base increased by 250 thousand to 44.8 million, supported by compelling value propositions underpinned by advanced analytics capabilities. Growth was driven primarily by strong postpaid net additions, while the fiber and IPTV segments also contributed to the expansion of our subscriber base. A key milestone was that our mobile subscriber base surpassed 40 million, with 243 thousand net additions during the quarter. Postpaid subscribers, accounting for 81% of our mobile base, increased by 284 thousand in the quarter. Reflecting more rational market dynamics and our disciplined customer portfolio management, mobile churn improved to 1.6% in Q226 from 2.2% a year earlier. Prepaid subscriber losses also narrowed significantly year-on-year, supported by fewer tourist-related disconnections and easing competitive pressure.
| 10 |
Given the prevalence of 12-month contracts in our subscriber base, pricing actions are reflected in ARPU with a time lag. Mobile ARPU (excluding M2M) declined by 3.9% year-on-year in Q226, primarily reflecting the carry-over impact of competitive dynamics in 2025 and higher-than-anticipated inflation during the quarter. With a more rational competitive environment and the gradual flow-through of the pricing actions implemented in the first half of 2026, we expect ARPU growth to strengthen progressively, with a more visible impact from Q426 onward.
In areas not yet covered by our fiber infrastructure, we provide our customers with high-speed wireless connectivity through Superbox, our pioneering Fixed Wireless Access (FWA) product. As the undisputed market leader with a 74%1 market share, we distinguish ourselves in the sector by delivering superior speed and service quality backed by robust network capacity. We introduced Superbox 5G modems to our customers in the last quarter of 2025, well ahead of the official 5G launch. Designed to enhance our users' everyday digital experiences with fiber-like speeds, Superbox 5G has attracted strong customer interest. As a result, we recorded 64 thousand net additions in the quarter, marking the highest quarterly performance since the second quarter of 2020. The total Superbox subscriber base consequently surpassed 818 thousand.
On the fixed side, Turkcell Fiber maintained its strong growth momentum, adding 31 thousand net subscribers. The resell fiber subscriber base also expanded, bringing the total fiber base above 2.7 million. Demand for our high-speed packages was strong during the quarter. The share of 1000 Mbps and above packages in residential fiber increased by 20 percentage points to 29%. Residential fiber ARPU recorded a 3.2% year-on-year growth, supported by pricing adjustments, the increased share of high-speed packages and contributions from our IPTV offerings.
In line with our fiber deployment strategy, we accelerated fiber investment during the quarter by adding 194 thousand new homepasses, and bringing the total to 6.7 million. At the end of the second quarter, our total fiber network length reached 70.4 thousand km, covering 31 cities in Türkiye.
(1) Our Superbox market share is calculated based on the Fixed Wireless (Mobile) subscribers as defined by the Information and Communication Technologies Authority (ICTA).
| 11 |
Paycell revenue increased by 21.9% year-on-year in Q226, accelerating from the previous quarter, with non-group revenues accounting for 82% of total revenues. POS remained the key growth driver, with revenues increasing by 37.8% year-on-year and its share in total Paycell revenues rising by 4.7 percentage points to 41.0%. Physical POS volume doubled year-on-year, supported by our flexible digital onboarding process, while virtual POS volume increased by 61.7%, benefiting from an enhanced user experience. Mobile payment services also delivered strong growth, supported by an expanding active user base and higher transaction volumes.
Total Paycell transaction volume grew by 67.3% year-on-year to TRY 63.5 billion, driven primarily by 67.0% growth in POS volume and a threefold increase in IBAN money transfer volume. Notably, non-group transaction volume increased by 95.4% year-on-year and accounted for 70.3% of total transaction volume, further demonstrating the expanding scale of Paycell’s ecosystem beyond Turkcell.
The 5.5 percentage point year-on-year decline in the EBITDA margin primarily reflected the rapidly growing contribution of the POS business, which has a structurally lower margin profile.
At the end of the second quarter, Financell’s loan portfolio approached TRY 10 billion with 0.6 million active customers. The company maintained its leadership in the financing sector holding a 43%1 market share by number of loans. It also increased its market share of loans below TRY 20,000 to 10.4% across the banking and financing sectors.
Financell’s revenue was TRY 1,550 million, reflecting the continued impact of prevailing installment restrictions on loan portfolio growth. Its Net Interest Margin (NIM) expanded year-on-year to 7.8%, while its EBITDA margin improved to 36.1%.
(1) Source: Association of Financial Institutions, as of Q126.
12
As of June 30, 2026, the Turkcell Group had approximately 47.1 million registered subscribers. This figure is calculated by taking the number of subscribers of Turkcell Türkiye and of each of our subsidiaries. It includes the total number of mobile, fiber, ADSL, cable and IPTV subscribers of Turkcell Türkiye, BeST’s mobile subscribers and Kuzey Kıbrıs Turkcell’s mobile and fixed subscribers.
| Turkcell Group Subscribers | Q225 | Q226 | y/y% | |||||||||
| Turkcell Türkiye subscribers1 (million) | 43.5 | 44.8 | 3.0 | % | ||||||||
| BeST (Belarus) | 1.5 | 1.5 | - | |||||||||
| Kuzey Kıbrıs Turkcell | 0.6 | 0.8 | 33.3 | % | ||||||||
| Turkcell Group Subscribers (million) | 45.6 | 47.1 | 3.3 | % | ||||||||
(1) Subscribers to more than one service are counted separately for each service. Including mobile, fixed broadband, IPTV, and wholesale (MVNO&FVNO) subscribers.
OVERVIEW OF THE MACROECONOMIC ENVIRONMENT
The foreign exchange rates used in our financial reporting, along with certain macroeconomic indicators, are set out below.
| Quarter | Half Year | |||||||||||||||||||||||||||||||
| Q225 | Q126 | Q226 | y/y% | q/q% | H125 | H126 | y/y% | |||||||||||||||||||||||||
| GDP Growth (Türkiye) | 4.7 | % | 2.5 | % | n.a | n.a | n.a | 4.7 | % | n.a | n.a | |||||||||||||||||||||
| Consumer Price Index (Türkiye)(yoy) | 35.0 | % | 30.9 | % | 32.1 | % | (2.9 | )pp | 1.2 | pp | 35.0 | % | 32.1 | % | (2.9 | )pp | ||||||||||||||||
| US$ / TRY rate | ||||||||||||||||||||||||||||||||
| Closing Rate | 39.7424 | 44.3841 | 46.5551 | 17.1 | % | 4.9 | % | 39.7424 | 46.5551 | 17.1 | % | |||||||||||||||||||||
| Average Rate | 38.7279 | 43.5882 | 45.3619 | 17.1 | % | 4.1 | % | 37.4607 | 44.4751 | 18.7 | % | |||||||||||||||||||||
| EUR / TRY rate | ||||||||||||||||||||||||||||||||
| Closing Rate | 46.5526 | 51.0236 | 53.0950 | 14.1 | % | 4.1 | % | 46.5526 | 53.0950 | 14.1 | % | |||||||||||||||||||||
| Average Rate | 43.8612 | 51.3794 | 52.6083 | 19.9 | % | 2.4 | % | 40.9324 | 51.9939 | 27.0 | % | |||||||||||||||||||||
| US$ / BYN rate | ||||||||||||||||||||||||||||||||
| Closing Rate | 2.9663 | 2.9508 | 2.9066 | (2.0 | )% | (1.5 | )% | 2.9663 | 2.9066 | (2.0 | )% | |||||||||||||||||||||
| Average Rate | 3.0300 | 2.8762 | 2.8371 | (6.4 | )% | (1.4 | )% | 3.1627 | 2.8567 | (9.7 | )% | |||||||||||||||||||||
13
RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS:
We believe that Adjusted EBITDA, among other key metrics, facilitates performance comparisons from period to period and management decision making. It also enables performance comparisons between companies. Adjusted EBITDA as a performance measure eliminates potential differences caused by variations in capital structures (affecting interest expense), tax positions (such as the impact of changes in effective tax rates on periods or companies) and the age and book depreciation of tangible and intangible assets (affecting relative depreciation expense and amortization expense). We also present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors and other interested parties in evaluating the performance of other mobile operators in the telecommunications industry in Europe, many of which present Adjusted EBITDA when reporting their results.
Our Adjusted EBITDA definition includes Revenue, Cost of Revenue excluding depreciation and amortization, Selling and Marketing expenses, Administrative expenses and Net impairment losses on financial and contract assets, but excludes finance income and expense, other operating income and expense, investment activity income and expense, share of profit / (loss) of equity accounted investees and minority interest.
Nevertheless, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation from, or as a substitute for, analysis of our results of operations, as reported under IFRS. The following table provides a reconciliation of Adjusted EBITDA, as calculated using financial data prepared in accordance with IFRS to net profit, which we believe is the most directly comparable financial measure calculated and presented in accordance with IFRS.
| Quarter | Half Year | |||||||||||||||||||||||
| Turkcell Group (million TRY) | Q225 | Q226 | y/y% | H125 | H126 | y/y% | ||||||||||||||||||
| Consolidated net profit | 5,549.3 | 5,235.2 | (5.7 | )% | 9,865.6 | 10,194.7 | 3.3 | % | ||||||||||||||||
| Loss from discontinued operations | (247.6 | ) | - | (100.0 | )% | (247.6 | ) | - | (100.0 | )% | ||||||||||||||
| Income tax expense | (2,232.8 | ) | (1,149.6 | ) | (48.5 | )% | (7,077.9 | ) | (8,910.4 | ) | 25.9 | % | ||||||||||||
| Consolidated profit before income tax | 8,029.7 | 6,384.8 | (20.5 | )% | 17,191.1 | 19,105.1 | 11.1 | % | ||||||||||||||||
| Share of loss of equity accounted investees | (1,590.8 | ) | (408.4 | ) | (74.3 | )% | (2,800.8 | ) | (81.5 | ) | (97.1 | )% | ||||||||||||
| Finance income | 3,820.0 | 4,700.0 | 23.0 | % | 9,360.4 | 8,692.1 | (7.1 | )% | ||||||||||||||||
| Finance costs | (6,683.2 | ) | (11,678.7 | ) | 74.7 | % | (14,067.9 | ) | (19,839.5 | ) | 41.0 | % | ||||||||||||
| Monetary gain | 1,091.4 | 4,864.5 | 345.7 | % | 2,434.2 | 10,712.4 | 340.1 | % | ||||||||||||||||
| Other income / (expenses) | (257.0 | ) | (544.0 | ) | 111.7 | % | (886.7 | ) | (1,001.3 | ) | 12.9 | % | ||||||||||||
| EBIT | 11,649.3 | 9,451.4 | (18.9 | )% | 23,151.9 | 20,622.9 | (10.9 | )% | ||||||||||||||||
| Depreciation and amortization | (18,849.1 | ) | (20,561.4 | ) | 9.1 | % | (36,698.6 | ) | (39,674.7 | ) | 8.1 | % | ||||||||||||
| Adjusted EBITDA | 30,498.4 | 30,012.8 | (1.6 | )% | 59,850.5 | 60,297.6 | 0.7 | % | ||||||||||||||||
14
RECONCILIATION OF ARPU: ARPU is an operational metric and the methodology for calculating performance measures such as ARPU varies substantially among operators and is not standardized across the telecommunications industry, and reported performance measures thus vary from those that may result from the use of a single methodology. Management believes this metric is helpful in assessing the development of our services over time. The following table shows the reconciliation of Turkcell Türkiye revenues to such revenues included in the ARPU calculations for Q225 and Q226.
| Reconciliation of ARPU | Q225 | Q226 | ||||||
| Turkcell Türkiye Revenue (million TRY) | 63,702.7 | 64,702.0 | ||||||
| Telecommunication services revenue | 57,538.3 | 57,905.9 | ||||||
| Equipment revenue | 5,487.7 | 6,271.3 | ||||||
| Other | 676.7 | 524.9 | ||||||
| Revenues which are not attributed to ARPU calculation1 | (11,414.8 | ) | (13,089.5 | ) | ||||
| Turkcell Türkiye revenues included in ARPU calculation2 | 51,611.2 | 51,087.7 | ||||||
| Mobile blended ARPU (TRY) | 404.8 | 382.7 | ||||||
| Average number of mobile subscribers during the year (million) | 38.4 | 39.9 | ||||||
| Fixed residential ARPU (TRY) | 547.8 | 579.6 | ||||||
| Average number of fixed residential subscribers during the year (million) | 3.0 | 3.1 | ||||||
(1) Revenue from fixed corporate and wholesale business; digital business sales; tower business, and other non-subscriber-based revenues
(2) Revenues from Turkcell Türkiye included in ARPU calculation comprise telecommunication services revenue, equipment revenue and revenues which are not attributed to ARPU calculation.
15
ABOUT TURKCELL: Turkcell is a technology and telecommunications company headquartered in Türkiye, offering a unique portfolio of voice, data, and TV services over its mobile and fixed networks along with digital consumer, enterprise, and techfin services. Turkcell Group operates in three countries: Türkiye, Belarus, and Northern Cyprus. In Q226, Turkcell Group reported revenue of TRY 71.8 billion, with total assets of TRY 659.9 billion as of June 30, 2026. Listed on both the NYSE and BIST since July 2000, Turkcell remains the only dual-listed company on these exchanges. Read more at https://www.turkcell.com.tr/en-en/about-us/investor-relations.
For further information, please contact Turkcell
Investor Relations Tel: + 90 212 313 1888 investor.relations@turkcell.com.tr |
Corporate Communications: Tel: + 90 212 313 2321 Turkcell-Kurumsal-Iletisim@turkcell.com.tr |
16
Table: Net foreign exchange gain and loss details
| Quarter | Half Year | |||||||||||||||||||||||
| Million TRY | Q225 | Q226 | y/y% | H125 | H126 | y/y% | ||||||||||||||||||
| Net FX loss before hedging | (111.6 | ) | (5,198.0 | ) | 4,557.7 | % | (2,609.0 | ) | (8,599.9 | ) | 229.6 | % | ||||||||||||
| Swap interest income/(expense) | 62.7 | (16.0 | ) | (125.5 | )% | 223.9 | 84.7 | (62.2 | )% | |||||||||||||||
| Fair value gain on derivative financial instruments | (2,622.4 | ) | (2,174.2 | ) | (17.1 | )% | (2,220.7 | ) | (3,741.9 | ) | 68.5 | % | ||||||||||||
| Net FX loss after hedging | (2,671.4 | ) | (7,388.1 | ) | 176.6 | % | (4,605.8 | ) | (12,257.1 | ) | 166.1 | % | ||||||||||||
Table: Income tax expense details
| Quarter | Half Year | |||||||||||||||||||||||
| Million TRY | Q225 | Q226 | y/y% | H125 | H126 | y/y% | ||||||||||||||||||
| Current tax expense | (4,844.9 | ) | (2,513.1 | ) | (48.1 | )% | (5,717.1 | ) | (4,049.2 | ) | (29.2 | )% | ||||||||||||
| Deferred tax income / (expense) | 2,612.1 | 1,363.5 | (47.8 | )% | (1,360.8 | ) | (4,861.3 | ) | 257.2 | % | ||||||||||||||
| Income tax expense | (2,232.8 | ) | (1,149.6 | ) | (48.5 | )% | (7,077.9 | ) | (8,910.4 | ) | 25.9 | % | ||||||||||||
17
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 30 June | 31 December | |||||||||
| Notes | 2026 | 2025 | ||||||||
| Assets | ||||||||||
| Property, plant and equipment | 8 | 195,189,548 | 185,292,632 | |||||||
| Right-of-use assets | 10 | 27,235,455 | 27,038,274 | |||||||
| Intangible assets | 9 | 179,642,742 | 123,622,732 | |||||||
| Investment properties | 242,111 | 262,157 | ||||||||
| Trade receivables | 263,987 | 302,643 | ||||||||
| Receivables from financial services | 364,045 | 334,354 | ||||||||
| Contract assets | 395,412 | 304,022 | ||||||||
| Financial assets at fair value through other comprehensive income | 12 | 41,660,005 | 34,329,813 | |||||||
| Financial assets at fair value through profit or loss | 12 | 10,706,384 | 10,151,771 | |||||||
| Deferred tax assets | 11,029,552 | 9,515,865 | ||||||||
| Investments in equity accounted investees | 19 | 4,174,245 | 4,201,242 | |||||||
| Other non-current assets | 8,430,401 | 9,667,912 | ||||||||
| Total non-current assets | 479,333,887 | 405,023,417 | ||||||||
| Inventories | 899,354 | 1,057,416 | ||||||||
| Trade receivables | 28,839,628 | 27,726,771 | ||||||||
| Due from related parties | 17 | 546,698 | 432,808 | |||||||
| Receivables from financial services | 10,560,758 | 10,380,310 | ||||||||
| Due from receivables from financial services | 9,465 | 17,265 | ||||||||
| Contract assets | 11,290,035 | 7,443,665 | ||||||||
| Derivative financial instruments | 311,643 | 2,095,252 | ||||||||
| Financial assets at amortized cost | 12 | 2,357,191 | 2,530,495 | |||||||
| Financial assets at fair value through other comprehensive income | 12 | 22,645,539 | 11,215,970 | |||||||
| Financial assets at fair value through profit or loss | 12 | 929,703 | 2,926,917 | |||||||
| Cash and cash equivalents | 11 | 89,275,018 | 108,135,581 | |||||||
| Other current assets | 12,894,970 | 10,481,048 | ||||||||
| Total current assets | 180,560,002 | 184,443,498 | ||||||||
| Total assets | 659,893,889 | 589,466,915 | ||||||||
The above interim condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.
1
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 30 June | 31 December | |||||||||
| Notes | 2026 | 2025 | ||||||||
| Equity | ||||||||||
| Share capital | 71,957,566 | 71,957,566 | ||||||||
| Share premium | 64,640 | 64,640 | ||||||||
| Treasury shares | (2,150,804 | ) | (2,245,964 | ) | ||||||
| Reserves | 12,862,572 | 10,027,879 | ||||||||
| Remeasurements of defined benefit plan | (3,772,531 | ) | (3,791,676 | ) | ||||||
| Retained earnings | 230,598,824 | 229,374,211 | ||||||||
| Total equity | 309,560,267 | 305,386,656 | ||||||||
| Liabilities | ||||||||||
| Borrowings | 13 | 175,000,895 | 144,528,335 | |||||||
| Trade and other payables | 419,998 | 499,892 | ||||||||
| Due to related parties | 17 | 17,721,140 | 111,170 | |||||||
| Employee benefit obligations | 3,593,212 | 3,404,036 | ||||||||
| Provisions | 3,280,170 | 3,323,234 | ||||||||
| Deferred tax liabilities | 24,210,335 | 18,613,898 | ||||||||
| Contract liabilities | 2,826,303 | 2,972,979 | ||||||||
| Other non-current liabilities | 2,173,833 | 2,300,216 | ||||||||
| Total non-current liabilities | 229,225,886 | 175,753,760 | ||||||||
| Borrowings | 13 | 37,067,279 | 42,294,450 | |||||||
| Current tax liabilities | 1,952,504 | 1,305,614 | ||||||||
| Trade and other payables | 47,005,857 | 50,631,720 | ||||||||
| Due to related parties | 17 | 22,531,750 | 1,679,367 | |||||||
| Deferred revenue | 1,315,064 | 1,334,250 | ||||||||
| Provisions | 3,665,324 | 6,895,277 | ||||||||
| Contract liabilities | 6,152,815 | 2,381,002 | ||||||||
| Derivative financial instruments | 1,417,143 | 1,804,819 | ||||||||
| Total current liabilities | 121,107,736 | 108,326,499 | ||||||||
| Total liabilities | 350,333,622 | 284,080,259 | ||||||||
| Total equity and liabilities | 659,893,889 | 589,466,915 | ||||||||
The above interim condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.
2
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| Notes | 6 months period ended at 30 June 2026 | 3 months period ended at 30 June 2026 | 6 months period ended at 30 June 2025 | 3 months period ended at 30 June 2025 | ||||||||||||||
| Revenue | 4 | 137,467,389 | 67,961,116 | 130,037,300 | 66,444,601 | |||||||||||||
| Revenue from financial services | 4 | 7,480,634 | 3,813,934 | 7,178,467 | 3,602,144 | |||||||||||||
| Total revenue | 144,948,023 | 71,775,050 | 137,215,767 | 70,046,745 | ||||||||||||||
| Cost of revenue | (102,741,775 | ) | (51,179,913 | ) | (94,444,761 | ) | (48,612,656 | ) | ||||||||||
| Cost of revenue from financial services | (4,395,029 | ) | (2,389,606 | ) | (4,612,675 | ) | (2,353,803 | ) | ||||||||||
| Total cost of revenue | (107,136,804 | ) | (53,569,519 | ) | (99,057,436 | ) | (50,966,459 | ) | ||||||||||
| Gross profit | 34,725,614 | 16,781,203 | 35,592,539 | 17,831,945 | ||||||||||||||
| Gross profit from financial services | 3,085,605 | 1,424,328 | 2,565,792 | 1,248,341 | ||||||||||||||
| Total gross profit | 37,811,219 | 18,205,531 | 38,158,331 | 19,080,286 | ||||||||||||||
| Other income | 5 | 256,263 | 87,750 | 77,481 | 31,262 | |||||||||||||
| Selling and marketing expenses | (10,319,617 | ) | (5,458,139 | ) | (8,916,746 | ) | (4,414,391 | ) | ||||||||||
| Administrative expenses | (6,105,546 | ) | (2,917,271 | ) | (5,411,028 | ) | (2,609,695 | ) | ||||||||||
| Net impairment losses on financial and contract assets | (763,110 | ) | (378,717 | ) | (678,664 | ) | (406,905 | ) | ||||||||||
| Other expenses | 5 | (1,257,611 | ) | (631,725 | ) | (964,167 | ) | (288,233 | ) | |||||||||
| Operating profit | 19,621,598 | 8,907,429 | 22,265,207 | 11,392,324 | ||||||||||||||
| Finance income | 6 | 8,692,091 | 4,699,997 | 9,360,370 | 3,819,960 | |||||||||||||
| Finance costs | 6 | (19,839,526 | ) | (11,678,690 | ) | (14,067,898 | ) | (6,683,225 | ) | |||||||||
| Monetary gain (loss) | 6 | 10,712,425 | 4,864,470 | 2,434,195 | 1,091,399 | |||||||||||||
| Net finance costs | (435,010 | ) | (2,114,223 | ) | (2,273,333 | ) | (1,771,866 | ) | ||||||||||
| Share of (loss)/ profit of equity accounted investees | 19 | (81,477 | ) | (408,426 | ) | (2,800,796 | ) | (1,590,800 | ) | |||||||||
| Profit before income tax | 19,105,111 | 6,384,780 | 17,191,078 | 8,029,658 | ||||||||||||||
| Income tax (expense)/ benefit | 7 | (8,910,442 | ) | (1,149,587 | ) | (7,077,924 | ) | (2,232,829 | ) | |||||||||
| Profit from continuing operations | 10,194,669 | 5,235,193 | 10,113,154 | 5,796,829 | ||||||||||||||
| Profit from discontinued operations | - | - | (247,576 | ) | (247,576 | ) | ||||||||||||
| Profit for the year | 10,194,669 | 5,235,193 | 9,865,578 | 5,549,253 | ||||||||||||||
| Profit for the year is attributable to: | ||||||||||||||||||
| Owners of the Company | 10,194,669 | 5,235,193 | 9,865,578 | 5,549,253 | ||||||||||||||
| Total | 10,194,669 | 5,235,193 | 9,865,578 | 5,549,253 | ||||||||||||||
| Basic and diluted earnings per share for profit attributable to owners of the Company (in full TL) | 4.68 | 2.41 | 4.53 | 2.55 | ||||||||||||||
| Basic and diluted earnings per share for profit from continuing operations attributable to owners of the Company (in full TL) | 4.68 | 2.41 | 4.64 | 2.66 | ||||||||||||||
| Basic and diluted earnings per share for profit from discontinued operations attributable to owners of the Company (in full TL) | - | - | (0.11 | ) | (0.11 | ) | ||||||||||||
The above interim condensed consolidated statement of profit or loss should be read in conjunction with the accompanying notes.
3
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| Notes | 6
months period ended at 30 June 2026 |
3
months period ended at 30 June 2026 |
6
months period ended at 30 June 2025 |
3
months period ended at 30 June 2025 |
||||||||||||||||
| Profit for the period | 10,194,669 | 5,235,193 | 9,865,578 | 5,549,253 | ||||||||||||||||
| Items that will not be reclassified to profit or loss: | ||||||||||||||||||||
| Remeasurements of defined termination benefit | (3,896 | ) | (5,927 | ) | 6,148 | 2,600 | ||||||||||||||
| Income tax relating to remeasurements of defined termination benefit | 974 | 1,487 | (2,703 | ) | (867 | ) | ||||||||||||||
| Remeasurement income/(loss) of defined benefit plans of investments accounted for using the equity | 19 | |||||||||||||||||||
| method | 22,067 | 42,315 | - | - | ||||||||||||||||
| 19,145 | 37,875 | 3,445 | 1,733 | |||||||||||||||||
| Other comprehensive income/(expense): | ||||||||||||||||||||
| Items that may be reclassified to profit or loss: | ||||||||||||||||||||
| Exchange differences on translation of foreign operations | 2,179,882 | 791,561 | 2,698,816 | 1,020,789 | ||||||||||||||||
| Exchange differences on translation of investments accounted for using the equity method | 19 | 32,413 | 21,995 | - | - | |||||||||||||||
| Fair value reserve | (1,042,651 | ) | 607,591 | (133,299 | ) | 739,565 | ||||||||||||||
| Cash flow hedges | 170,768 | 95,083 | (2,156,452 | ) | (934,968 | ) | ||||||||||||||
| Cost of hedging reserve | - | - | 1,258,678 | 453,433 | ||||||||||||||||
| Hedges of net investments in foreign operations | 1,590,772 | 572,413 | 1,254,544 | 296,557 | ||||||||||||||||
| Income tax relating to these items | (179,722 | ) | (323,601 | ) | (47,282 | ) | (130,223 | ) | ||||||||||||
| - Income tax relating to cash flow hedges | (42,692 | ) | (28,600 | ) | 547,698 | 242,163 | ||||||||||||||
| - Income tax relating to cost of hedging reserve | - | - | (314,669 | ) | (113,357 | ) | ||||||||||||||
| - Income tax relating to fair value reserve | 260,663 | (151,898 | ) | 33,325 | (184,891 | ) | ||||||||||||||
| - Income tax relating to hedges of net investments | (397,693 | ) | (143,103 | ) | (313,636 | ) | (74,138 | ) | ||||||||||||
| 2,751,462 | 1,765,042 | 2,875,005 | 1,445,153 | |||||||||||||||||
| Other comprehensive income/(loss) for the year, net of income tax | 2,770,607 | 1,802,917 | 2,878,450 | 1,446,886 | ||||||||||||||||
| Total comprehensive income for the year | 12,965,276 | 7,038,110 | 12,744,028 | 6,996,139 | ||||||||||||||||
| Total comprehensive income for the year is attributable to: | ||||||||||||||||||||
| Owners of the Company | 12,965,276 | 7,038,110 | 12,744,028 | 6,996,139 | ||||||||||||||||
| Total | 12,965,276 | 7,038,110 | 12,744,028 | 6,996,139 | ||||||||||||||||
The above interim condensed consolidated statement of other comprehensive income should be read in conjunction with the accompanying notes.
4
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| Share capital |
Treasury shares |
Share premium |
Legal reserves (*) |
Fair
value reserve (*) |
Hedges
of net investments in foreign operations (*) |
Hedging reserve (*) |
Cost
of hedging reserve (*) |
Foreign
currency translation reserve (*) |
Remeasurement
of defined benefit plan |
Retained earnings |
Total equity | |||||||||||||||||||||||||||||||||||||
| Balance at 1 January 2025 | 71,957,566 | (2,047,172 | ) | 64,640 | 54,110,587 | (83,638 | ) | (10,431,734 | ) | 8,798,172 | (14,748,585 | ) | (34,238,184 | ) | (4,760,508 | ) | 219,563,111 | 288,184,255 | ||||||||||||||||||||||||||||||
| Profit/ (loss) for the year | - | - | - | - | - | - | - | - | - | - | 9,865,578 | 9,865,578 | ||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of income tax | - | - | - | - | (99,974 | ) | 940,908 | (1,608,754 | ) | 944,009 | 2,698,816 | 3,445 | - | 2,878,450 | ||||||||||||||||||||||||||||||||||
| Total comprehensive income | - | - | - | - | (99,974 | ) | 940,908 | (1,608,754 | ) | 944,009 | 2,698,816 | 3,445 | 9,865,578 | 12,744,028 | ||||||||||||||||||||||||||||||||||
| Transfers to legal reserves | - | - | - | 1,056,158 | - | - | - | - | - | - | (1,056,158 | ) | - | |||||||||||||||||||||||||||||||||||
| Dividend paid | - | 104,526 | - | (822,779 | ) | - | - | - | - | - | - | (9,887,954 | ) | (10,606,207 | ) | |||||||||||||||||||||||||||||||||
| Acquisition of treasury shares (-) | - | (70,028 | ) | - | - | - | - | - | - | - | - | - | (70,028 | ) | ||||||||||||||||||||||||||||||||||
| Balance at 30 June 2025 | 71,957,566 | (2,012,674 | ) | 64,640 | 54,343,966 | (183,612 | ) | (9,490,826 | ) | 7,189,418 | (13,804,576 | ) | (31,539,368 | ) | (4,757,063 | ) | 218,484,577 | 290,252,048 | ||||||||||||||||||||||||||||||
| Balance at 1 January 2026 | 71,957,566 | (2,245,964 | ) | 64,640 | 54,343,682 | 547,745 | (8,654,772 | ) | 8,037,647 | (14,748,584 | ) | (29,497,839 | ) | (3,791,676 | ) | 229,374,211 | 305,386,656 | |||||||||||||||||||||||||||||||
| Profit/ (loss) for the year | - | - | - | - | - | - | - | - | - | - | 10,194,669 | 10,194,669 | ||||||||||||||||||||||||||||||||||||
| Other comprehensive
income, net of income tax |
- | - | - | (781,988 | ) | 1,193,079 | 128,076 | - | 2,212,295 | 19,145 | - | 2,770,607 | ||||||||||||||||||||||||||||||||||||
| Total comprehensive income | - | - | - | - | (781,988 | ) | 1,193,079 | 128,076 | - | 2,212,295 | 19,145 | 10,194,669 | 12,965,276 | |||||||||||||||||||||||||||||||||||
| Transfers to legal reserves | - | - | - | 880,016 | - | - | - | - | - | - | (880,016 | ) | - | |||||||||||||||||||||||||||||||||||
| Dividend paid (**) | - | 95,160 | - | (796,785 | ) | - | - | - | - | - | - | (8,090,040 | ) | (8,791,665 | ) | |||||||||||||||||||||||||||||||||
| Balance at 30 June 2026 | 71,957,566 | (2,150,804 | ) | 64,640 | 54,426,913 | (234,243 | ) | (7,461,693 | ) | 8,165,723 | (14,748,584 | ) | (27,285,544 | ) | (3,772,531 | ) | 230,598,824 | 309,560,267 | ||||||||||||||||||||||||||||||
(*) Included in Reserves in the consolidated statement of financial position.
(**) The accrued liability amounting TRY 8.791.665 related to the dividend distribution has been recorded under other liabilities, and will be paid in 9 December 2026.
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
5
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF CASH FLOWS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| Note | 30 June 2026 | 30 June 2025 | ||||||||||
| Cash flows from operating activities: Profit for the year | 10,194,669 | 10,113,154 | ||||||||||
| Discontinued operations | - | (247,576 | ) | |||||||||
| Profit for the year including discontinued operations | 10,194,669 | 9,865,578 | ||||||||||
| Adjustments for: | ||||||||||||
| Depreciation and impairment of property, plant and equipment and investment properties | 15,477,968 | 13,828,854 | ||||||||||
| Amortization of intangible assets and right of use assets | 9-10 | 24,188,191 | 22,869,529 | |||||||||
| Impairment on property, plant and equipment and intangible asset | 8 | 8,502 | 226 | |||||||||
| Net finance expense | (205,148 | ) | 2,344,779 | |||||||||
| Fair value adjustments to derivatives | 14,695 | 2,173,437 | ||||||||||
| Income tax expense | 7 | 8,910,442 | 7,077,924 | |||||||||
| Gain on sale of property, plant and equipment | (94,839 | ) | (9,680 | ) | ||||||||
| Effects of exchange rate changes and inflation adjustments | 3,897,833 | 17,628,544 | ||||||||||
| Provisions | 3,971,870 | 3,051,575 | ||||||||||
| Share of (profit)/loss of equity accounted investees | 81,477 | 2,800,796 | ||||||||||
| Fair value adjustments to financial assets through profit or loss | (39,771 | ) | (493,471 | ) | ||||||||
| Non-cash other adjustments | 197,041 | 91,207 | ||||||||||
| 66,602,930 | 81,229,298 | |||||||||||
| Change in operating assets/liabilities | ||||||||||||
| Change in trade receivables | (1,285,149 | ) | (2,434,203 | ) | ||||||||
| Change in due from related parties | (113,733 | ) | (252,957 | ) | ||||||||
| Change in receivables from financial services | (403,045 | ) | 446,706 | |||||||||
| Change in inventories | 158,062 | 73,786 | ||||||||||
| Change in other current assets | (2,651,427 | ) | (767,383 | ) | ||||||||
| Change in other non-current assets | (1,279,953 | ) | (402,872 | ) | ||||||||
| Change in due to related parties | 1,784,670 | 374,425 | ||||||||||
| Change in trade and other payables | (10,328,597 | ) | (9,711,611 | ) | ||||||||
| Change in other non-current liabilities | (192,504 | ) | 110,450 | |||||||||
| Change in employee benefit obligations | (167,464 | ) | (238,376 | ) | ||||||||
| Change in short term contract asset | (3,846,370 | ) | (98,054 | ) | ||||||||
| Change in long term contract asset | (88,813 | ) | 48,595 | |||||||||
| Change in deferred revenue | (116,213 | ) | 487,024 | |||||||||
| Change in short term contract liability | 3,771,813 | 175,572 | ||||||||||
| Change in long term contract liability | (146,676 | ) | (200,872 | ) | ||||||||
| Changes in other working capital | (5,001,085 | ) | (6,629,920 | ) | ||||||||
| Cash generated from operations | 46,696,446 | 62,209,608 | ||||||||||
| Interest paid | (6,207,740 | ) | (10,600,889 | ) | ||||||||
| Income tax paid | (3,141,124 | ) | (4,229,289 | ) | ||||||||
| Net cash inflow from operating activities | 37,347,582 | 47,379,430 | ||||||||||
| Cash flows from investing activities: | ||||||||||||
| Acquisition of property, plant and equipment | 8 | (25,755,218 | ) | (21,742,328 | ) | |||||||
| Acquisition of intangible assets | (37,820,329 | ) | (14,722,261 | ) | ||||||||
| Proceeds from sale of property, plant and equipment | 512,233 | 798,401 | ||||||||||
| Cash inflows from sale of shares or borrowing instruments of other enterprises or funds | 83,589,934 | 51,916,828 | ||||||||||
| Cash outflows from purchase of shares or borrowing instruments of other enterprises or funds | (107,071,330 | ) | (57,946,985 | ) | ||||||||
| Cash inflows from financial assets at fair value through profit or loss | - | 2,181,291 | ||||||||||
| Change in other cash advances given | 2,516,522 | 1,392,136 | ||||||||||
| Interest received | 7,410,386 | 9,219,946 | ||||||||||
| Net cash outflow from investing activities | (76,617,802 | ) | (28,902,972 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from derivative instruments | 3,544,023 | 4,278,429 | ||||||||||
| Repayments of derivative instruments | (7,124,544 | ) | (4,796,208 | ) | ||||||||
| Proceeds from issues of loans and borrowings | 75,178,311 | 57,763,392 | ||||||||||
| Proceeds from issues of bonds | 5,873,581 | 56,892,286 | ||||||||||
| Repayments of borrowings | (32,987,293 | ) | (50,580,705 | ) | ||||||||
| Repayments of bonds | (5,442,396 | ) | (7,992,610 | ) | ||||||||
| Dividends paid to shareholders | - | (4,835,027 | ) | |||||||||
| Acquisition of treasury shares | - | (70,028 | ) | |||||||||
| Payments of lease liabilities | (5,697,408 | ) | (4,675,913 | ) | ||||||||
| Net cash (outflow)/inflow from financing activities | 33,344,274 | 45,983,616 | ||||||||||
| Net increase in cash and cash equivalents | (5,925,946 | ) | 64,460,074 | |||||||||
| Cash and cash equivalents at 1 January | 11 | 108,064,325 | 105,821,180 | |||||||||
| Effects of exchange rate changes on cash and cash equivalents and inflation adjustment | (12,943,511 | ) | (16,328,924 | ) | ||||||||
| Cash and cash equivalents at 30 June | 11 | 89,194,868 | 153,952,330 | |||||||||
The above interim condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
6
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 1. | Reporting entity |
Turkcell Iletisim Hizmetleri Anonim Sirketi (the “Company” or “Turkcell”) was incorporated in Türkiye on 5 October 1993 and commenced its operations in 1994. The address of the Company’s registered office is Maltepe Aydinevler Mahallesi Inonu Caddesi No: 20, Kucukyali Ofispark/Istanbul.
The Company operates under a 25-year GSM license granted in and effective from April 1998 (2G License), a 20-year 3G license granted in and effective from April 2009 and a 13-year 4.5G license granted in August 2016 and effective from April 2016. On 7 April 2023, the 2G License has been extended to 30 April 2029. As of 30 June 2026, the Company’s shares are listed on Borsa Istanbul A.Ş. (“BIST”) and New York Stock Exchange (“NYSE”).
On 16 October 2025, within the scope of the tender organized by the Information and Communication Technologies Authority (ICTA) titled “Authorization Regarding the Establishment and Operation of Mobile Electronic Communications Infrastructure and the Provision of Services, and the Subjecting of Infrastructure and Services Under Existing Authorizations Expiring on 30 April 2029 to This Authorization,” the 5G spectrum allocation tender was concluded on 2 January 2026, following the first payment and the delivery of the Authorization Certificate to the Company. Accordingly, the Company will be able to continue providing mobile communication services from 30 April 2029, when the current GSM license authorization certificates expire, until 31 December 2042.
The interim condensed consolidated financial statements of the Company as at and for the six months ended 30 June 2026 comprise the Company and its subsidiaries (together referred to as the “Group”) and the Group’s interest in an associate.
These interim condensed consolidated financial statements were authorized for issue by the Board of Directors on 13 August 2026.
As of 30 June 2026, the ownership interest and voting rights of TVF Bilgi Teknolojileri Iletisim Hizmetleri Yatırım Sanayi ve Ticaret Anonim Sirketi (“TVF BTIH”) and IMTIS Holdings S.a r l. (“IMTIS Holdings”) in the Company are 26.2% and 19.8%, respectively. The proportion of the Company’s shares that are traded in domestic and foreign stock exchanges are 53.95%.
As of 30 June 2026, the Group’s immediate shareholder is TVF BTIH, which is wholly owned by Türkiye Varlik Fonu (“TVF”). TVF has been established with the Law No. 6741 and published in the Official Gazette dated 26 August 2016.
The Company’s board of directors consists of a total of nine non-executive members including three independent members as of 30 June 2026.
7
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 2. | Basis of preparation of financial statements |
These interim condensed consolidated financial statements for the six months ended 30 June 2026 have been prepared in accordance with IAS 34 Interim Financial Reporting.
These interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual consolidated financial statements as at 31 December 2025.
The accounting policies and presentation are consistent with those of the previous financial year and corresponding interim reporting period.
The financial statements of the Company and those of the subsidiaries, associates and joint ventures located in Türkiye and Turkish Republic of Northern Cyprus for the period ended 30 June 2026 were restated for the changes in the general purchasing power of Turkish Lira, which is their functional currency, based on International Accounting Standard No. 29 (“IAS 29”) “Financial Reporting in Hyperinflationary Economies”. IAS 29 requires that financial statements prepared in the currency of a hyperinflationary economy be stated in terms of the measuring unit current at the balance sheet date and that corresponding figures for previous periods be restated in the same terms.
The table below shows the evolution of CPI in the last three years and as of 30 June 2026:
| Date | Index | Coversion
factor |
Cumulative inflation |
|||||||||
| 30 June 2026 | 129.99 | 1.00000 | 206 | % | ||||||||
| 31 December 2025 | 110.39 | 1.17758 | 211 | % | ||||||||
| 30 June 2025 | 98.40 | 1.32109 | 220 | % | ||||||||
New standards and interpretations
The accounting policies adopted in preparation of the consolidated financial statements as of 30 June 2026 are consistent with those of the previous financial year, except for the adoption of new and amended IFRS and IFRIC interpretations effective as of 1 January 2026 and thereafter. The effects of these standards and interpretations on the Group’s financial position and performance have been disclosed in the related paragraphs.
| a) | Standards, amendments, and interpretations applicable as of 30 June 2026: |
Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments; effective from annual reporting periods beginning on or after 1 January 2026 (earlier application permitted). These amendments:
| · | Clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system; |
| · | Clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion; |
| · | Add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets); and |
| · | Make updates to the disclosures for equity instruments designated at Fair Value through Other Comprehensive Income (FVOCI). |
The amendments have no impact on Group’s financial position or performance.
8
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 2. | Basis of preparation of financial statements (continued) |
| a) | Standards, amendments, and interpretations applicable as of 30 June 2026: (continued) |
Annual improvements to IFRS – Volume 11; effective from annual periods beginning on or after 1 January 2026 (earlier application permitted). Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 list of amended Accounting Standard and accompanying guidance include the following:
| · | IFRS 1 First-time Adoption of International Financial Reporting Standards; | |
| · | IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7; | |
| · | IFRS 9 Financial Instruments; | |
| · | IFRS 10 Consolidated Financial Statements; and | |
| · | IAS 7 Statement of Cash Flows. |
The amendments have no significant impact on the Group’s consolidated financial statements.
Amendment to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity; effective from annual periods beginning on or after 1 January 2026 (earlier application permitted). These amendments change the 'own use' and hedge accounting requirements of IFRS 9 and include targeted disclosure requirements to IFRS 7. These amendments apply only to contracts that expose an entity to variability in the underlying amount of electricity because the source of its generation depends on uncontrollable natural conditions (such as the weather). These are described as ‘contracts referencing nature-dependent electricity’.
The amendments have no impact on Group’s financial position or performance.
| b) | Standards, amendments, and interpretations that are issued but not effective as of 30 June 2026: |
Amendments to IAS 21 - Translation to a Hyperinflationary Presentation Currency; effective from annual periods beginning on or after 1 January 2027 (earlier application permitted). These narrow-scope amendments specify the translation procedures for an entity whose presentation currency is that of a hyperinflationary economy. The entity applies the amendments if:
| · | Its functional currency is that of a non-hyperinflationary economy and it is translating its results and financial position into the currency of a hyperinflationary economy; or | |
| · | It is translating into the currency of a hyperinflationary economy the results and financial position of a foreign operation whose functional currency is that of a non-hyperinflationary economy. |
The amendments aim to improve the usefulness of the resulting information in a cost-effective manner and reduce diversity in practice.
The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
9
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 2. | Basis of preparation of financial statements (continued) |
| b) | Standards, amendments, and interpretations that are issued but not effective as of 30 June 2026: (continued) |
IFRS 18 Presentation and Disclosure in Financial Statements; effective from annual periods beginning on or after 1 January 2027 (earlier application permitted). This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:
| · | The structure of the statement of profit or loss; |
| · | Required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity’s financial statements (that is, management-defined performance measures); and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general. |
The Company will apply TFRS 18 and related amendments for periods beginning after January 1, 2027, with retrospective application.
The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
IFRS 19 Subsidiaries without Public Accountability: Disclosures’; effective from annual periods beginning on or after 1 January 2027 (earlier application permitted). This new standard and amendments work alongside other IFRS Accounting Standards. An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. IFRS 19’s reduced disclosure requirements balance the information needs of the users of eligible subsidiaries’ financial statements with cost savings for preparers. IFRS 19 is a voluntary standard for eligible subsidiaries. A subsidiary is eligible if:
| · | It does not have public accountability; and | |
| · | It has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards. |
The standard is not applicable for the Group.
IFRS 20 Regulatory Assets and Regulatory Liabilities; effective from annual periods beginning on or after 1 January 2029 (earlier application permitted). This is a new Accounting Standard for entities subject to a specific type of rate regulation. It aims to help investors better understand how that rate regulation affects an entity’s financial performance, financial position and its prospects for future cash flows.
The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
Comparative information and revision of prior period financial information
The consolidated financial statements of the Group are prepared comparatively with the previous period in order to enable comparability of the financial position and performance trends. In order to comply with the presentation of the current period consolidated financial statements, comparative information is reclassified when deemed necessary and significant differences are disclosed. Significant changes in accounting policies and significant accounting errors are applied retrospectively and prior period financial statements are restated.
10
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 3 | Segment information |
As part of its strategy to offer integrated communication and technology services and to ensure economic integrity, the Group has divided its main operating segments into two groups: “Turkcell Türkiye” and “Techfin.” Although some of these strategic segments provide similar services, they are affected by different economic conditions and geographical locations. Therefore, they are regularly reviewed by the authority responsible for making decisions regarding the Group’s operations, based on resource allocation and performance. The authority responsible for making decisions related to the Group's operations is the Board of Directors. However, the Board of Directors may delegate its powers excluding the non-delegable powers stipulated by law to the CEO and other executives.
Turkcell Türkiye reportable segment includes the Groups’s mobile, fixed telecommunications, digital services and digital business services operations of Turkcell, Superonline Iletisim Hizmetleri A.S. (“Turkcell Superonline”), Turkcell Satış A.S’s (“Turkcell Satış”), Turkcell Dijital Is Servisleri A.S. (“Turkcell Dijital”), group call center operations of Global Bilgi Pazarlama Danismanlik ve Cagri Servisi Hizmetleri A.S. (“Turkcell Global Bilgi”), Turktell Bilisim Servisleri A.S. (“Turktell”), Atmosware Teknoloji Egitim ve Danismanlik A.S (“Atmosware Teknoloji”), Turkcell Teknoloji Arastirma ve Gelistirme A.S. (“Turkcell Teknoloji”), Ultia Teknoloji Yazilim ve Uygulama Gelistirme Ticaret A.S. (“Ultia”), Kule Hizmet ve Isletmecilik A.S. (“Global Tower”), Turkcell Gayrimenkul Hizmetleri A.S. (“Turkcell Gayrimenkul”), Lifecell Dijital Servisler ve Cozumler A.S. (“Lifecell Dijital Servisler”), Lifecell TV Yayin ve Icerik Hizmetleri A.S. (“Lifecell TV”), Lifecell Müzik Yayin ve Iletim A.S. (“Lifecell Müzik”), Turkcell Dijital Teknoloji Satış A.S. (TDTS A.S.), TDC Veri Hizmetleri A.S. (“TDC”).
Techfin reportable segment includes all financial services operations of Turkcell Finansman A.S (“Turkcell Finansman”), Turkcell Ödeme ve Elektronik Para Hizmetleri A.S. (“Turkcell Ödeme”),Paycell LLC(“Paycell LLC”), Paycell Europe GmbH (“Paycell Europe”), Turkcell Sigorta Aracılık Hizmetleri A.S. (“Turkcell Sigorta”), Sofra Kurumsal ve Ödüllendirme Hizmetleri A.S. (“Sofra”), Turkcell Dijital Teknolojileri Limited (“Turkcell Dijital Teknoloji”), and Turkcell Dijital Sigorta A.S. (“Turkcell Dijital Sigorta”). The operations of these legal entities aggregated into one reportable segment as the nature of services are similar and most of them share smilar economic characteristics.
Other operating segment comprises telecommunications, digital services, and energy-related activities outside Türkiye. This segment included CJSC Belarusian Telecommunications Network (“BeST”), Kıbrıs Mobile Telekomunikasyon Limited Sirketi (“Kıbrıs Telekom”), East Asian Consortium B.V. (“Eastasian”), Lifecell Ventures B.V (“Lifecell Ventures”), Lifetech LLC (“Lifetech”), Beltower LLC (“Beltower”), Lifecell Digital Limited (“Lifecell Digital”), Yaani Digital BV (“Yaani”), BiP Digital Communication Technologies B.V (“BiP B.V.”), Turkcell Global Bilgi non Group call center activities, Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.S. (“Turkcell Enerji”), Boyut Grup Enerji Elektrik Üretim ve İnşaat Sanayi ve Ticaret A.S. (“Boyut Enerji”) and Turkcell Yeni Teknolojiler Girişim Sermayesi Yatırım Fonu (“Turkcell GSYF”).
The Board primarily uses adjusted EBITDA to assess the performance of the operating segments. Adjusted EBITDA definition includes revenue, cost of revenue excluding depreciation and amortization, selling and marketing expenses and administrative expenses.
Adjusted EBITDA is not a financial measure defined by IFRS as a measurement of financial performance and may not be comparable to other similarly titled indicators used by other companies. Reconciliation of Adjusted EBITDA to the consolidated profit for the year is included in the accompanying notes.
11
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 3. | Segment information (continued) |
| Six months ended 30 June | ||||||||||||||||||||||||||||||||||||||||
| Turkcell Türkiye | Techfin | Other | Intersegment Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
| Total segment revenue | 130,919,368 | 124,654,804 | 8,125,472 | 7,699,057 | 9,058,176 | 8,486,747 | (3,154,993 | ) | (3,624,841 | ) | 144,948,023 | 137,215,767 | ||||||||||||||||||||||||||||
| Inter-segment revenue | (683,354 | ) | (693,314 | ) | (645,899 | ) | (520,589 | ) | (1,825,740 | ) | (2,410,938 | ) | 3,154,993 | 3,624,841 | - | - | ||||||||||||||||||||||||
| Revenues from external customers | 130,236,014 | 123,961,490 | 7,479,573 | 7,178,468 | 7,232,436 | 6,075,809 | - | - | 144,948,023 | 137,215,767 | ||||||||||||||||||||||||||||||
| Adjusted EBITDA | 55,964,492 | 56,628,300 | 2,618,067 | 1,974,200 | 1,963,750 | 1,495,778 | (248,702 | ) | (247,776 | ) | 60,297,607 | 59,850,502 | ||||||||||||||||||||||||||||
| Three months ended 30 June | ||||||||||||||||||||||||||||||||||||||||
| Turkcell Türkiye | Techfin | Other | Intersegment Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
| Total segment revenue | 64,702,041 | 63,702,725 | 4,123,297 | 3,852,641 | 4,462,913 | 4,359,182 | (1,513,201 | ) | (1,867,803 | ) | 71,775,050 | 70,046,745 | ||||||||||||||||||||||||||||
| Inter-segment revenue | (315,671 | ) | (318,736 | ) | (309,881 | ) | (250,496 | ) | (887,649 | ) | (1,298,571 | ) | 1,513,201 | 1,867,803 | - | - | ||||||||||||||||||||||||
| Revenues from external customers | 64,386,370 | 63,383,989 | 3,813,416 | 3,602,145 | 3,575,264 | 3,060,611 | - | - | 71,775,050 | 70,046,745 | ||||||||||||||||||||||||||||||
| Adjusted EBITDA | 27,838,905 | 28,850,423 | 1,309,667 | 970,274 | 936,731 | 656,681 | (72,510 | ) | 21,031 | 30,012,793 | 30,498,409 | |||||||||||||||||||||||||||||
12
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 3. | Segment information (continued) |
| 6 months | 3 months | 6 months | 3 months | |||||||||||||
| period ended at | period ended at | period ended at | period ended at | |||||||||||||
| 30 June | 30 June | 30 June | 30 June | |||||||||||||
| 2026 | 2026 | 2025 | 2025 | |||||||||||||
| Profit from continuing operations | 10,194,669 | 5,235,193 | 10,113,154 | 5,796,829 | ||||||||||||
| Add/(Less): | ||||||||||||||||
| Income tax expense | 8,910,442 | 1,149,587 | 7,077,924 | 2,232,829 | ||||||||||||
| Finance income | (8,692,091 | ) | (4,699,997 | ) | (9,360,370 | ) | (3,819,960 | ) | ||||||||
| Finance costs | 19,839,526 | 11,678,690 | 14,067,898 | 6,683,225 | ||||||||||||
| Other income | (256,263 | ) | (87,750 | ) | (77,481 | ) | (31,262 | ) | ||||||||
| Other expenses | 1,257,611 | 631,725 | 964,167 | 288,233 | ||||||||||||
| Monetary (gain) loss | (10,712,425 | ) | (4,864,470 | ) | (2,434,195 | ) | (1,091,399 | ) | ||||||||
| Depreciation and amortization | 39,674,661 | 20,561,389 | 36,698,609 | 18,849,114 | ||||||||||||
| Share of loss/(gain) of equity accounted investees | 81,477 | 408,426 | 2,800,796 | 1,590,800 | ||||||||||||
| Consolidated adjusted EBITDA | 60,297,607 | 30,012,793 | 59,850,502 | 30,498,409 | ||||||||||||
13
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 4. | Revenue |
| Six months ended 30 June | ||||||||||||||||||||||||||||||||||||||||
| Turkcell Turkiye | Techfin | Other | Intersegment Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
| Telecommunication services | 115,703,885 | 113,395,552 | - | - | 3,435,903 | 3,194,477 | (118,063 | ) | (109,473 | ) | 119,021,725 | 116,480,556 | ||||||||||||||||||||||||||||
| Equipment revenues | 14,105,224 | 9,910,564 | - | - | 152,261 | 201,388 | (18,870 | ) | (14,684 | ) | 14,238,615 | 10,097,268 | ||||||||||||||||||||||||||||
| Revenue from financial services | - | - | 8,125,472 | 7,699,057 | - | - | (644,838 | ) | (520,590 | ) | 7,480,634 | 7,178,467 | ||||||||||||||||||||||||||||
| Other | 1,110,259 | 1,348,688 | - | - | 5,470,012 | 5,090,882 | (2,373,222 | ) | (2,980,094 | ) | 4,207,049 | 3,459,476 | ||||||||||||||||||||||||||||
| Total | 130,919,368 | 124,654,804 | 8,125,472 | 7,699,057 | 9,058,176 | 8,486,747 | (3,154,993 | ) | (3,624,841 | ) | 144,948,023 | 137,215,767 | ||||||||||||||||||||||||||||
| Three months ended 30 June | ||||||||||||||||||||||||||||||||||||||||
| Turkcell Turkiye | Techfin | Other | Intersegment Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
| Telecommunication services | 57,905,881 | 57,538,346 | - | - | 1,722,798 | 1,661,184 | (53,361 | ) | (51,331 | ) | 59,575,318 | 59,148,199 | ||||||||||||||||||||||||||||
| Equipment revenues | 6,271,265 | 5,487,684 | - | - | 88,492 | 104,675 | (725 | ) | (6,765 | ) | 6,359,032 | 5,585,594 | ||||||||||||||||||||||||||||
| Revenue from financial services | - | - | 4,123,297 | 3,852,641 | - | - | (309,363 | ) | (250,497 | ) | 3,813,934 | 3,602,144 | ||||||||||||||||||||||||||||
| Other | 524,895 | 676,695 | - | - | 2,651,623 | 2,593,323 | (1,149,752 | ) | (1,559,210 | ) | 2,026,766 | 1,710,808 | ||||||||||||||||||||||||||||
| Total | 64,702,041 | 63,702,725 | 4,123,297 | 3,852,641 | 4,462,913 | 4,359,182 | (1,513,201 | ) | (1,867,803 | ) | 71,775,050 | 70,046,745 | ||||||||||||||||||||||||||||
Revenue from financial services comprise of interest income generated from consumer financing activities. The Group has interest income amounting to TRY 2,818,781 (2025: TRY 3,237,229) and TRY 1,390,386 (2025: TRY 1,994,620) as of 6 months and 3 months period ended at 30 June 2026 respectively.
14
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 4. | Revenue (continued) |
| 30 June 2026 | ||||||||||||||||||||
| Turkcell Turkiye |
Techfin | Other | Intersegment eliminations |
Consolidated | ||||||||||||||||
| Telecommunication Services | 115,703,885 | - | 3,435,903 | (118,063 | ) | 119,021,725 | ||||||||||||||
| At a point in time | 836,376 | - | 75,192 | (1,203 | ) | 910,365 | ||||||||||||||
| Over time | 114,867,509 | - | 3,360,711 | (116,860 | ) | 118,111,360 | ||||||||||||||
| Equipment Related | 14,105,224 | - | 152,261 | (18,870 | ) | 14,238,615 | ||||||||||||||
| At a point in time | 13,612,015 | - | 152,261 | (18,870 | ) | 13,745,406 | ||||||||||||||
| Over time | 493,209 | - | - | - | 493,209 | |||||||||||||||
| Revenue from financial operations | - | 8,125,472 | - | (644,838 | ) | 7,480,634 | ||||||||||||||
| At a point in time | - | 4,277,874 | - | (604,100 | ) | 3,673,774 | ||||||||||||||
| Over time | - | 3,847,598 | - | (40,738 | ) | 3,806,860 | ||||||||||||||
| Other | 1,110,259 | - | 5,470,012 | (2,373,222 | ) | 4,207,049 | ||||||||||||||
| At a point in time | 122,962 | - | 3,793 | (2,933 | ) | 123,822 | ||||||||||||||
| Over time | 987,297 | - | 5,466,219 | (2,370,289 | ) | 4,083,227 | ||||||||||||||
| Total | 130,919,368 | 8,125,472 | 9,058,176 | (3,154,993 | ) | 144,948,023 | ||||||||||||||
| At a point in time | 14,571,353 | 4,277,874 | 231,246 | (627,106 | ) | 18,453,367 | ||||||||||||||
| Over time | 116,348,015 | 3,847,598 | 8,826,930 | (2,527,887 | ) | 126,494,656 | ||||||||||||||
| 30 June 2025 | ||||||||||||||||||||
| Turkcell Turkiye |
Techfin | Other | Intersegment eliminations |
Consolidated | ||||||||||||||||
| Telecommunication Services | 113,395,552 | - | 3,194,477 | (109,473 | ) | 116,480,556 | ||||||||||||||
| At a point in time | 866,970 | - | 4,467 | - | 871,437 | |||||||||||||||
| Over time | 112,528,582 | - | 3,190,010 | (109,473 | ) | 115,609,119 | ||||||||||||||
| Equipment Related | 9,910,564 | - | 201,388 | (14,684 | ) | 10,097,268 | ||||||||||||||
| At a point in time | 9,441,402 | - | 201,388 | (14,684 | ) | 9,628,106 | ||||||||||||||
| Over time | 469,162 | - | - | - | 469,162 | |||||||||||||||
| Revenue from financial operations | - | 7,699,057 | - | (520,590 | ) | 7,178,467 | ||||||||||||||
| At a point in time | - | 4,395,180 | - | (495,380 | ) | 3,899,800 | ||||||||||||||
| Over time | - | 3,303,877 | - | (25,210 | ) | 3,278,667 | ||||||||||||||
| Other | 1,348,688 | - | 5,090,882 | (2,980,094 | ) | 3,459,476 | ||||||||||||||
| At a point in time | 218,330 | - | 3,477 | - | 221,807 | |||||||||||||||
| Over time | 1,130,358 | - | 5,087,405 | (2,980,094 | ) | 3,237,669 | ||||||||||||||
| Total | 124,654,804 | 7,699,057 | 8,486,747 | (3,624,841 | ) | 137,215,767 | ||||||||||||||
| At a point in time | 10,526,702 | 4,395,180 | 209,332 | (510,064 | ) | 14,621,150 | ||||||||||||||
| Over time | 114,128,102 | 3,303,877 | 8,277,415 | (3,114,777 | ) | 122,594,617 | ||||||||||||||
15
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 5. | Other income and expense |
Recognized in the statement of profit or loss:
| 6
months period ended at 30 June 2026 |
3
months period ended at 30 June 2026 |
6
months period ended at 30 June 2025 |
3
months period ended at 30 June 2025 |
|||||||||||||
| Gain on sale of fixed assets | 94,839 | 18,976 | 9,680 | 9,680 | ||||||||||||
| Rent income | 9,005 | 5,044 | 10,121 | 5,198 | ||||||||||||
| Insurance compensation | 3,756 | 1,358 | - | - | ||||||||||||
| Depositary reimbursement | 1,277 | (29 | ) | - | - | |||||||||||
| Other | 147,386 | 62,401 | 57,680 | 16,384 | ||||||||||||
| Other income | 256,263 | 87,750 | 77,481 | 31,262 | ||||||||||||
| Donation expenses | (476,175 | ) | (192,210 | ) | (437,593 | ) | (137,313 | ) | ||||||||
| Litigation expenses | (368,440 | ) | (252,322 | ) | (179,584 | ) | (47,253 | ) | ||||||||
| Asset retirement obligation revaluation | (130,710 | ) | (70,801 | ) | (64,722 | ) | (34,880 | ) | ||||||||
| Restructuring cost | (68,194 | ) | (6,905 | ) | (17,782 | ) | (17,782 | ) | ||||||||
| Loss on cancellation of lease contract | (42,134 | ) | (23,790 | ) | (111,155 | ) | (49,711 | ) | ||||||||
| Loss on sale of fixed assets | - | - | - | 9,668 | ||||||||||||
| Other | (171,958 | ) | (85,697 | ) | (153,331 | ) | (10,962 | ) | ||||||||
| Other expense | (1,257,611 | ) | (631,725 | ) | (964,167 | ) | (288,233 | ) | ||||||||
16
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 6. | Finance income and costs |
Recognized in the statement of profit or loss:
| 6
months period ended at 30 June 2026 |
3
months period ended at 30 June 2026 |
6
months period ended at 30 June 2025 |
3
months period ended at 30 June 2025 |
|||||||||||||
| Interest income | 2,280,302 | 1,166,688 | 5,947,614 | 2,671,883 | ||||||||||||
| Income from money market fund | 3,169,615 | 1,749,678 | - | - | ||||||||||||
| Income from financial assets carried at fair value | 39,771 | 20,302 | 493,471 | 80,187 | ||||||||||||
| Cash flow hedges – reclassified to profit or loss | - | - | - | (81,196 | ) | |||||||||||
| Net fair value gains on derivative financial instruments and interest | - | - | - | (481,692 | ) | |||||||||||
| Interest income from financial assets | 3,202,403 | 1,763,329 | 2,919,285 | 1,630,778 | ||||||||||||
| Finance income | 8,692,091 | 4,699,997 | 9,360,370 | 3,819,960 | ||||||||||||
| Net foreign exchange losses | (8,599,878 | ) | (5,198,008 | ) | (2,608,997 | ) | (111,618 | ) | ||||||||
| Net interest expenses for financial assets and liabilities measured at amortized cost | (7,497,483 | ) | (4,254,654 | ) | (9,349,491 | ) | (4,512,457 | ) | ||||||||
| Net fair value losses on derivative financial instruments and interest | (3,694,460 | ) | (2,190,142 | ) | (2,149,447 | ) | (2,149,447 | ) | ||||||||
| Cash flow hedges – reclassified to profit or loss | 37,191 | - | 152,597 | 152,597 | ||||||||||||
| Other | (84,896 | ) | (35,886 | ) | (112,560 | ) | (62,300 | ) | ||||||||
| Finance costs | (19,839,526 | ) | (11,678,690 | ) | (14,067,898 | ) | (6,683,225 | ) | ||||||||
| Monetary gain (loss) | 10,712,425 | 4,864,470 | 2,434,195 | 1,091,399 | ||||||||||||
| Net finance costs | (435,010 | ) | (2,114,223 | ) | (2,273,333 | ) | (1,771,866 | ) | ||||||||
| 7. | Income tax expense |
The corporate tax rate in Türkiye is 25% for companies (30 June 2025: 25%), 30% for banks (30 June 2025: 30%), and companies within the scope of Law No. 6361, electronic payment and money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reinsurance companies and pension companies.
| 30 June 2026 | 30 June 2025 | |||||||
| Current income tax expense | (4,049,164 | ) | (5,717,095 | ) | ||||
| Deferred income tax expense | (4,861,278 | ) | (1,360,829 | ) | ||||
| Total income tax expense | (8,910,442 | ) | (7,077,924 | ) | ||||
Earnings generated from the Group’s investments qualifying under investment incentive certificates are subject to reduced corporate income tax rates, starting from the accounting period in which the investment becomes partially or fully operational, until the cumulative tax benefit reaches the approved investment contribution amount. The deferred tax calculation associated with the tax advantages attributable to qualifying expenditures incurred under these certificates was performed in proportion to the declared investment contribution rates and strictly restricted to the statutory timeframes prescribed by the applicable tax legislation.
17
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 7. | Income tax expense (continued) |
Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized. The Group bases the recognition of deferred tax assets arising from investment incentives in the consolidated financial statements on its long-term business plans. The recoverability of these assets is assessed at each reporting date using business models that incorporate future taxable profit forecasts. The key assumptions underlying these assessments include estimates of sales growth rates, pricing strategies, capacity utilization rates, expected capital expenditures, and applicable tax rates.
As of 30 June 2026, the Group performed a sensitivity analysis regarding the incentive certificates obtained for its data center investments. In this analysis, the key assumptions underlying the business plans were varied within a range of ±10%. The results indicated that these variations would not lead to any material change in the anticipated 10-year recovery period. Based on current business plans and the macroeconomic outlook, Group management concludes that the deferred tax assets are fully recoverable within the projected timeframe.
As of 30 June 2026, the tax advantage effect amounting to TRY 4,607,993 (31 December 2025: TRY 2,346,908) related to investment expenditures that the Group will utilize in the foreseeable future has been reflected in the consolidated financial statements as a deferred tax asset. These deferred tax assets are projected to be recovered within 10 years from the reporting date, with the expected realization of these amounts exhibiting a consistent utilization pattern throughout this period.
18
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 8. | Property, plant and equipment |
| Impairment | Effects of | ||||||||||||||||||||||||||||
| Balance at 1 | expenses/ | movements in | Balance at 30 | ||||||||||||||||||||||||||
| Cost | January 2026 | Additions | Disposals | Transfers | (reversals) | exchange rates | June 2026 | ||||||||||||||||||||||
| Network infrastructure (All operational) | 458,654,176 | 7,655,545 | (2,393,721 | ) | 9,391,804 | - | (773,353 | ) | 472,534,451 | ||||||||||||||||||||
| Land and buildings | 37,556,412 | 452,625 | (12,691 | ) | 3,022,202 | - | (28,734 | ) | 40,989,814 | ||||||||||||||||||||
| Equipment, fixtures and fittings | 29,803,727 | 690,163 | (117,367 | ) | 417,612 | - | (132,636 | ) | 30,661,499 | ||||||||||||||||||||
| Motor vehicles | 370,944 | 37,486 | (2,527 | ) | - | - | (1,743 | ) | 404,160 | ||||||||||||||||||||
| Leasehold improvements | 8,829,412 | 89,260 | (2 | ) | - | - | (13 | ) | 8,918,657 | ||||||||||||||||||||
| Electricity production power plant | 761,754 | 8,014 | - | - | - | (7 | ) | 769,761 | |||||||||||||||||||||
| Construction in progress | 9,888,706 | 16,822,125 | (42,464 | ) | (12,865,946 | ) | - | (30,614 | ) | 13,771,807 | |||||||||||||||||||
| Total | 545,865,131 | 25,755,218 | (2,568,772 | ) | (34,328 | ) | - | (967,100 | ) | 568,050,149 | |||||||||||||||||||
| Accumulated depreciation | |||||||||||||||||||||||||||||
| Network infrastructure (All operational) | 315,383,325 | 13,918,014 | (2,084,906 | ) | - | 8,502 | (690,974 | ) | 326,533,961 | ||||||||||||||||||||
| Land and buildings | 9,658,477 | 818,415 | (30 | ) | - | - | 274,235 | 10,751,097 | |||||||||||||||||||||
| Equipment, fixtures and fittings | 26,674,687 | 614,950 | (64,095 | ) | - | - | (608,205 | ) | 26,617,337 | ||||||||||||||||||||
| Motor vehicles | 321,324 | 17,339 | (2,438 | ) | - | - | (1,739 | ) | 334,486 | ||||||||||||||||||||
| Leasehold improvements | 8,366,816 | 72,624 | - | - | - | (598 | ) | 8,438,842 | |||||||||||||||||||||
| Electricity production power plant | 167,870 | 17,007 | - | - | - | 1 | 184,878 | ||||||||||||||||||||||
| Total | 360,572,499 | 15,458,349 | (2,151,469 | ) | - | 8,502 | (1,027,280) | 372,860,601 | |||||||||||||||||||||
| Net book value | 185,292,632 | 10,296,869 | (417,303 | ) | (34,328 | ) | (8,502 | ) | 60,180 | 195,189,548 | |||||||||||||||||||
Depreciation expense for the six months ended 30 June 2026 amounting to TRY 15,466,851 including impairment losses are recognized in cost of revenue.
Impaired network infrastructure mainly consists of damaged or technologically inadequate mobile and fixed network infrastructure investments. Impairment losses on property, plant and equipment for the six months period ended 30 June 2026 is TRY 8,502 and are recognized within depreciation expenses.
19
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 9. | Intangible assets |
| Effects of | ||||||||||||||||||||||||
| Balance at 1 | movements in | Balance at | ||||||||||||||||||||||
| Cost | January 2026 | Additions | Disposals | Transfers | exchange rates | 30 June 2026 | ||||||||||||||||||
| Telecommunication licenses | 152,169,024 | 59,744,058 | - | 34,328 | 11,242 | 211,958,652 | ||||||||||||||||||
| Computer software | 270,390,986 | 10,322,899 | (135 | ) | 306,237 | (252,882 | ) | 280,767,105 | ||||||||||||||||
| Transmission line software | 2,389,345 | 4,441 | - | - | 6,918 | 2,400,704 | ||||||||||||||||||
| Indefeasible right of usage | 2,442,925 | 4,915 | - | - | (9 | ) | 2,447,831 | |||||||||||||||||
| Brand name | 19,589 | - | - | - | (2,083 | ) | 17,506 | |||||||||||||||||
| Customer base | 71,032 | - | - | - | (2,707 | ) | 68,325 | |||||||||||||||||
| Goodwill | 907,808 | - | - | - | - | 907,808 | ||||||||||||||||||
| Subscriber acquisition cost | 111,143,665 | 5,366,736 | - | - | (29,112 | ) | 116,481,289 | |||||||||||||||||
| Electricity production license | 2,368,482 | 897 | - | - | (154,699 | ) | 2,214,680 | |||||||||||||||||
| Others | 2,671,993 | 239,967 | - | - | 137,061 | 3,049,021 | ||||||||||||||||||
| Construction in progress | 446,279 | 310,484 | - | (306,237 | ) | 2,816 | 453,342 | |||||||||||||||||
| Total | 545,021,128 | 75,994,397 | (135 | ) | 34,328 | (283,455 | ) | 620,766,263 | ||||||||||||||||
| Accumulated amortization | ||||||||||||||||||||||||
| Telecommunication licenses | 125,585,382 | 5,728,094 | - | - | (18,572 | ) | 131,294,904 | |||||||||||||||||
| Computer software | 207,980,102 | 8,563,820 | (471 | ) | - | 97,888 | 216,641,339 | |||||||||||||||||
| Transmission line software | 2,387,392 | 3,493 | - | - | 3,251 | 2,394,136 | ||||||||||||||||||
| Indefeasible right of usage | 1,602,836 | 49,156 | - | - | (131 | ) | 1,651,861 | |||||||||||||||||
| Brand name | 11,624 | - | - | - | (1,753 | ) | 9,871 | |||||||||||||||||
| Customer base | 50,417 | 18,513 | - | - | (2,390 | ) | 66,540 | |||||||||||||||||
| Subscriber acquisition cost | 80,728,267 | 5,376,374 | - | - | (371,019 | ) | 85,733,622 | |||||||||||||||||
| Electricity production license | 363,915 | 31,251 | - | - | (10,495 | ) | 384,671 | |||||||||||||||||
| Others | 2,688,461 | 250,364 | - | - | 7,752 | 2,946,577 | ||||||||||||||||||
| Total | 421,398,396 | 20,021,065 | (471 | ) | - | (295,469 | ) | 441,123,521 | ||||||||||||||||
| Net book value | 123,622,732 | 55,973,332 | 336 | 34,328 | 12,014 | 179,642,742 | ||||||||||||||||||
Amortization expenses for the six months ended 30 June 2026 amounting to TRY 20,021,065 include impairment losses and are recognized in cost of revenue.
Computer software includes capitalized software development costs that meet the definition of an intangible asset. The amount of computer software within the Group is TRY 2,569,684 for the six-months interim period ending 30 June 2026.
The license fee regarding the 5G services made available on April 1, 2026, was initially recognized in the statement of financial position at its present value as an asset and a corresponding financial liability. The amortization and depreciation expenses of the license and network equipment started to be recognized as of April 2026, when the service commenced.
20
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 10. | Right-of-use assets |
As at 30 June 2026, the Company has additions to right-of-use assets amounting to TRY 5,074,127 and interest expense on lease liabilities amounting to TRY 1,796,761. Depreciation and amortization expenses amounting to TRY 4,167,126 are recognized in cost of revenues. The net book value of right-of-use assets as of 30 June 2026 is 27,235,455 (31 December 2025 27,038,274).
| 11. | Cash and cash equivalents |
| 30 June 2026 |
31 December
2025 |
|||||||
| Cash in hand | 550 | 397 | ||||||
| Banks | 65,973,508 | 92,320,599 | ||||||
| - Demand deposits | 6,212,639 | 6,588,887 | ||||||
| - Time deposits | 51,778,901 | 85,731,712 | ||||||
| - Receivables from reverse repo | 7,981,968 | - | ||||||
| Impairment loss provision | (5,787 | ) | (5,720 | ) | ||||
| Other (*) | 23,306,747 | 15,820,305 | ||||||
| Total | 89,275,018 | 108,135,581 | ||||||
(*) It consists of highly liquid money market funds with initial maturities of less than 90 days as of the acquisition date and which are subject to an insignificant risk of changes in value.
As of 30 June 2026, the average effective interest rates of TRY, USD and EUR time deposits are 40.1%, 3.3% and 2.0% (31 December 2025: 39.7%, 3.5% and 1.6%) respectively.
As of 30 June 2026, average maturity of time deposits is 14 days (31 December 2025: 7 days).
Reconciliation of cash and cash equivalents in consolidated statement of cash flows:
| 30 June 2026 | 30 June 2025 | |||||||
| Cash and cash equivalents | 89,275,018 | 154,040,585 | ||||||
| Interest accrual of cash and cash equivalents | (80,150 | ) | (88,255 | ) | ||||
| Total | 89,194,868 | 153,952,330 | ||||||
21
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 12. | Financial assets |
The details of financial assets as of 30 June 2026 and 31 December 2025 are as follows:
| 30 June 2026 | 31 December 2025 | |||||||||||||||
| Non- current |
Current | Non- current |
Current | |||||||||||||
| Fair value through profit or loss | 10,706,384 | 929,703 | 10,151,771 | 2,926,917 | ||||||||||||
| - Investment funds (*) | 10,706,384 | 929,703 | 10,151,771 | 2,926,917 | ||||||||||||
| Fair value through other comprehensive income | 41,660,005 | 22,645,539 | 34,329,813 | 11,215,970 | ||||||||||||
| - Listed debt securities (**) | 41,660,005 | 22,645,539 | 34,329,813 | 11,215,970 | ||||||||||||
| Amortized cost | - | 2,357,191 | - | 2,530,495 | ||||||||||||
| - Time deposits with maturity of more than three months | - | 2,357,191 | - | 2,530,495 | ||||||||||||
| 52,366,389 | 25,932,433 | 44,481,584 | 16,673,382 | |||||||||||||
(*) Investment funds mainly consist of free market funds and Turkcell Venture Capital Investment Fund (GSYF), established by Re-Pie Portfolio Management Inc., as well as the shares and financial assets related to this fund. These funds are measured at fair value, and the corresponding changes in value are recognized in profit or loss.
(**) Listed debt securities are classified as financial assets at fair value through other comprehensive income.
| Fair Values | ||||||||||
| 30
June 2026 |
31 December 2025 |
Fair value hierarchy |
Valuation technique | |||||||
| Financial assets at fair value through other comprehensive income | 64,305,544 | 45,545,783 | Level 1 | Pricing models based on quoted market prices at the end of the reporting period, | ||||||
| Financial assets at fair value through profit or loss | 11,040,441 | 12,485,122 | Level 1 | Pricing models based on quoted market prices at the end of the reporting period, | ||||||
| Financial assets at fair value through profit or loss | 595,646 | 593,566 | Level 3 | Pricing models based on discounted cash flow | ||||||
| 75,941,631 | 58,624,471 | |||||||||
The movement of the financial assets which is shown in Level 3 are as follows:
30
June | 30
June | |||||||
| Opening balance | 593,565 | 823,447 | ||||||
| Addition | 11,683 | 54,248 | ||||||
| Remeasurement recognised in profit or loss | 147 | 7,567 | ||||||
| Monetary gain/(loss) | (9,749 | ) | (15,936 | ) | ||||
| Closing balance | 595,646 | 869,326 | ||||||
22
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 13. | Loans and borrowings |
Long-term borrowings | 30
June | 31
December | ||||||
| Unsecured bank loans | 76,568,293 | 43,016,234 | ||||||
| Secured bank loans | 19,408,126 | 14,809,675 | ||||||
| Lease liabilities | 12,628,364 | 14,743,507 | ||||||
| Debt securities issued | 66,396,112 | 71,958,919 | ||||||
| 175,000,895 | 144,528,335 | |||||||
Short-term borrowings |
30
June |
31
December | ||||||
| Unsecured bank loans | 23,178,142 | 28,693,365 | ||||||
| Secured bank loans | 2,394,202 | 2,150,432 | ||||||
| Lease liabilities | 3,968,775 | 3,490,587 | ||||||
| Debt securities issued | 7,526,160 | 7,960,066 | ||||||
| 37,067,279 | 42,294,450 | |||||||
The Company utilized a USD 1,000,000 Murabaha syndicated facility on 30 March 2026, with a profit rate of 3M SOFR + 1.95% per annum and an all-in cost of 3M SOFR + 2.14% per annum, including all fees.
23
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 13. | Loans and borrowings (continued) |
Terms and conditions of outstanding loans are as follows:
| 30 June 2026 | 31 December 2025 | ||||||||||||||||
| Currency | Interest rate type | Payment period | Nominal interest rate | Carrying amount | Payment period | Nominal interest rate | Carrying amount | ||||||||||
| Unsecured Bank Loans | USD | Floating | 2026-2033 | SOFR + 2.0% | 59,407,281 | 2026-2032 | SOFR + 2% -SOFR + 2.2% | 17,043,524 | |||||||||
| Unsecured Bank Loans | EUR | Floating | 2026-2030 | Euribor+2.0%-Euribor+4.0% | 30,901,135 | 2026-2030 | Euribor+2%-Euribor+4% | 41,596,601 | |||||||||
| Unsecured Bank Loans | TRY | Fixed | 2026 | 38.0% - 45.0% | 3,837,974 | 2026 | 36.25% - 45.5% | 7,200,280 | |||||||||
| Unsecured Bank Loans | EUR | Fixed | 2026-2027 | 3.9%-5.0% | 2,890,102 | 2026 | 3.6%-3.95% | 2,323,538 | |||||||||
| Unsecured Bank Loans | CNY | Fixed | 2026-2028 | 5.2% | 2,434,430 | 2026-2028 | 5.1% - 5.5% | 3,163,104 | |||||||||
| Unsecured Bank Loans | TRY | Floating | 2026-2027 | TLREF+2.0% | 245,739 | 2026-2027 | TLREF+2% | 286,343 | |||||||||
| Unsecured Bank Loans | USD | Fixed | 2026 | 2.6% | 29,774 | 2026 | 2.50% | 96,209 | |||||||||
| Secured bank loans | CNY | Fixed | 2026-2034 | 3.2%-4.0% | 8,567,166 | 2026-2034 | 4% | 7,615,547 | |||||||||
| Secured bank loans | EUR | Floating | 2026-2038 | EURIBOR+0.4%-EURIBOR+0.7% | 8,370,302 | 2026-2037 | EURIBOR+0.7% | 3,473,128 | |||||||||
| Secured bank loans | USD | Fixed | 2026-2033 | 1.5% - 3.8% | 4,256,826 | 2026-2033 | 1.5% - 3.8% | 5,059,706 | |||||||||
| Secured bank loans | USD | Floating | 2026-2028 | SOFR + 0.6% -SOFR + 1.6% | 608,034 | 2026-2028 | SOFR + 0.6% -SOFR + 1.6% | 811,726 | |||||||||
| Debt securities issued | USD | Fixed | 2026-2032 | 5.8% - 7.7% | 71,121,020 | 2026-2032 | 5.8% - 7.7% | 77,083,028 | |||||||||
| Debt securities issued | TRY | Fixed | 2026 | 40.25%-41.5% | 2,801,252 | 2026 | 37%-39.3% | 2,835,957 | |||||||||
| Lease liabilities | USD | Fixed | 2026-2052 | 4.0%-11.6% | 9,252,711 | 2026-2052 | 4%-11.6% | 10,859,260 | |||||||||
| Lease liabilities | TRY | Fixed | 2026-2070 | 7.5%-62.3% | 6,199,916 | 2026-2070 | 7.5%-62.3% | 5,907,874 | |||||||||
| Lease liabilities | BYN | Fixed | 2026-2028 | 10.8%-20.0% | 700,073 | 2026-2028 | 10.8%-20% | 990,237 | |||||||||
| Lease liabilities | EUR | Fixed | 2026-2034 | 2.9%-10.3% | 444,439 | 2026-2034 | 2.9%-10.3% | 476,723 | |||||||||
| 212,068,174 | 186,822,785 | ||||||||||||||||
24
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 14. | Financial instruments Impairment losses |
Movements in the provision for trade receivables, contract assets, other assets and due from related parties are as follows:
| 30 June 2026 | ||||||||
Contract Assets | Trade | |||||||
| Opening balance | 9,302 | 1,119,222 | ||||||
| Provision for impairment recognized during the year | (1,234 | ) | 1,101,766 | |||||
| Amounts collected | - | (594,490 | ) | |||||
| Receivables written off during the year as uncollectible | - | (352,355 | ) | |||||
| Receivables transferred with receivables transfer contract | - | (332 | ) | |||||
| Effect of changes in exchange rates | - | 21,936 | ||||||
| Inflation adjustment | (1,343 | ) | (177,709 | ) | ||||
| Closing balance | 6,725 | 1,118,038 | ||||||
| 30 June 2025 | ||||||||
| Contract Assets | Trade | |||||||
| Opening balance | 8,422 | 1,015,693 | ||||||
| Provision for impairment recognized during the year | 2,004 | 922,014 | ||||||
| Amounts collected | - | (407,014 | ) | |||||
| Receivables written off during the year as uncollectible | - | (416,025 | ) | |||||
| Effect of changes in exchange rates | - | 64,200 | ||||||
| Inflation adjustment | (1,297 | ) | (153,179 | ) | ||||
| Closing balance | 9,129 | 1,025,689 | ||||||
Movements in the provisions for the total of receivables from financial services are as follows:
30
June | 30
June | |||||||
| Opening balance | 253,931 | 248,909 | ||||||
| Provision for impairment recognized during the year | 379,225 | 289,773 | ||||||
| Amounts collected | (128,863 | ) | (124,897 | ) | ||||
| Receivables transferred with receivables transfer contract | (19,378 | ) | (69,250 | ) | ||||
| Inflation adjustment | (49,656 | ) | (39,988 | ) | ||||
| Closing balance | 435,259 | 304,547 |
25
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 14. | Financial instruments (continued) |
Foreign exchange risk
The Group’s exposure to foreign exchange risk at the end of the reporting period, based on notional amounts, was as follows:
| 30 June 2026 | ||||||||||||
| Foreign currency denominated assets | USD | EUR | CNY | |||||||||
| Other non-current assets | 69 | 11 | - | |||||||||
| Financial asset at fair value through other comprehensive income | 1,190,385 | 225,171 | - | |||||||||
| Due from related parties - current | 74 | - | - | |||||||||
| Trade receivables and contract assets | 36,253 | 32,852 | - | |||||||||
| Other current assets | 14,070 | 2,055 | - | |||||||||
| Cash and cash equivalents | 774,083 | 329,598 | - | |||||||||
| 2,014,934 | 589,687 | - | ||||||||||
| Foreign currency denominated liabilities | ||||||||||||
| Loans and borrowings - non-current | (1,269,945 | ) | (507,993 | ) | (1,428,892 | ) | ||||||
| Debt securities issued - non-current | (1,426,183 | ) | - | - | ||||||||
| Due to related parties - non-current | (380,147 | ) | - | - | ||||||||
| Lease obligations - non-current | (181,721 | ) | (6,927 | ) | - | |||||||
| Other non-current liabilities | (40,873 | ) | - | - | ||||||||
| Loans and borrowings - current | (111,255 | ) | (286,084 | ) | (185,571 | ) | ||||||
| Debt securities issued - current | (101,491 | ) | - | - | ||||||||
| Lease obligations - current | (17,025 | ) | (1,443 | ) | - | |||||||
| Other current liabilities | (1,356 | ) | (10,638 | ) | - | |||||||
| Trade and other payables - current | (160,092 | ) | (21,376 | ) | (588,183 | ) | ||||||
| Due to related parties | (391,559 | ) | - | - | ||||||||
| (4,081,647 | ) | (834,461 | ) | (2,202,646 | ) | |||||||
| Financial liabilities defined as hedging instruments (*) | 1,188 | 92,702 | - | |||||||||
| Exposure related to derivative instruments | ||||||||||||
| Participating cross currency swap and FX swap contracts | 200,000 | 189,000 | - | |||||||||
| Currency forward contracts | 453,873 | 197,631 | 674,375 | |||||||||
| Net exposure | (1,411,652 | ) | 234,559 | (1,528,271 | ) | |||||||
(*) Turkcell, the main shareholder of the Group, uses a loan amounting to EUR 56,576 as a hedging instrument to protect against foreign exchange risk arising from the translation of its net investments in a foreign subsidiary into Turkish Lira. The foreign exchange gains/losses related to this loan are recognized under equity in the “gains/losses on net investment hedge of a foreign operation” account, to be offset against the foreign exchange differences arising from the translation of the net assets of the foreign operation into Turkish Lira.
| 26 |
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 14. | Financial instruments (continued) |
Sensitivity analysis
The basis for the sensitivity analysis to measure foreign exchange risk is an aggregate corporate-level currency exposure. The aggregate foreign exchange exposure is composed of all assets and liabilities denominated in foreign currencies; the analysis excludes net foreign currency investments.
A 10% strengthening/weakening of the TRY, BYN, EUR against the following currencies as at 30 June 2026 would have increased/(decreased) profit or loss before by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.
| 30 June 2026 | ||||||||||||||||
| Profit/(Loss) | Equity | |||||||||||||||
| Sensitivity analysis | Appreciation
of foreign currency | Depreciation
of foreign currency | Appreciation
of foreign currency | Depreciation
of foreign currency | ||||||||||||
| 1- USD net asset/liability | (6,571,960 | ) | 6,571,960 | - | - | |||||||||||
| 2- Hedged portion of USD risk (-) | - | - | (5,529 | ) | 5,529 | |||||||||||
| 3- USD net effect (1+2) | (6,571,960 | ) | 6,571,960 | (5,529 | ) | 5,529 | ||||||||||
| 4- EUR net asset/liability | 1,245,390 | (1,245,390 | ) | - | - | |||||||||||
| 5- Hedged portion of EUR risk (-) | - | - | (492,199 | ) | 492,199 | |||||||||||
| 6- EUR net effect (4+5) | 1,245,390 | (1,245,390 | ) | (492,199 | ) | 492,199 | ||||||||||
| 7- Other foreign currency net asset/liability (CNY) | (1,041,425 | ) | 1,041,425 | - | - | |||||||||||
| 8- Hedged portion of other foreign currency risk (-) (CNY) | - | - | - | - | ||||||||||||
| 9- Other foreign currency net effect (7+8) | (1,041,425 | ) | 1,041,425 | - | - | |||||||||||
| Total (3+6+9) | (6,367,995 | ) | 6,367,995 | (497,728 | ) | 497,728 | ||||||||||
| 27 |
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 14. | Financial instruments (continued) |
Financial assets:
Carrying values of a significant portion of financial assets do not differ significantly.
Financial liabilities:
As at 30 June 2026 and 31 December 2025; for the majority of the borrowings, the fair values are not materially different to their carrying amounts since the interest payable on those borrowings is either close to current market rates or the borrowings are of a short-term nature.
The carrying amounts and fair values of non-current borrowings and current portion of non-current borrowings are as follows:
| Carrying
amount | Fair value | |||||||
| As at 30 June 2026: | ||||||||
| Bank loans | 15,288,195 | 15,438,912 | ||||||
| Debt securities | 71,121,020 | 73,170,923 | ||||||
| Carrying amount | Fair value | |||||||
| As at 31 December 2025: | ||||||||
| Bank loans | 15,934,564 | 16,117,686 | ||||||
| Debt securities | 77,083,028 | 80,741,842 | ||||||
| 15. | Guarantees and purchase obligations |
At 30 June 2026, outstanding purchase commitments with respect to property, plant and equipment, inventory, advertising and sponsorship amount to TRY 15,756,465 (31 December 2025: TRY 18,133,993).
The Group is contingently liable in respect of letters of guarantee obtained from banks and given to public institutions and private entities, and financial guarantees provided to subsidiaries amounting to TRY 49,417,042 at 30 June 2026 (31 December 2025: TRY 52,704,415).
BeST has an investment commitment that covers the years 2022-2032 with a total investment amount of not less than USD 100,000, in accordance with the agreement which is signed between the Republic of Belarus, BeST and the Company on 30 November 2022. As of 31 December 2025, the remaining investment commitment is amounting to USD 56,787 (TRY equivalent of 2,643,729).
| 28 |
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 16. | Commitments and Contingencies |
Disputes Between the Group and BTK
Administrative fines reported during the second quarter of 2026 have been recognized in the financial statements as legal liabilities. A provision amounting to TRY 38,110 has been recognized for the ongoing reviews where the likelihood and significance of a potential penalty are considered high.
In addition, the Group has filed various lawsuits against BTK. These lawsuits generally relate to the annulment of administrative fines imposed by BTK following its investigations and reviews concerning the Group.
General Assessment of Ongoing Lawsuits and Investigations
The Company’s Management has evaluated the likelihood of an outflow of resources embodying economic benefits in relation to various lawsuits, investigations, audits, and ongoing reviews.
As of 30 June 2026, a provision of TRY 696,605 has been recognized in the condensed consolidated financial statements. The provision allocated for ongoing investigations, reviews, lawsuits, and audits represents Management’s best estimate, and actual future outcomes may differ from the Group’s current assessments.
| 29 |
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 17. | Related parties |
| Receivables from related party | 30 June 2026 | 31 December 2025 | ||||||
| Türk Telekom Mobil İletişim Hizmetleri A.Ş (“TT Mobil”) | 177,247 | 80,224 | ||||||
| Türk Hava Yolları AŞ (“THY”) | 70,664 | 54,669 | ||||||
| Güneş Express Havacılık A.Ş.(”Sun Express”) | 66,839 | 49,263 | ||||||
| Enerji Piyasaları İşletme A.Ş. (“EPİAŞ”) | 37,957 | 104,897 | ||||||
| Türksat Uydu Haberleşme Kablo TV ve İşletme A.Ş. (”Türksat”) | 35,704 | 41,031 | ||||||
| Ziraat Bankası A.Ş. (“Ziraat Bankası”) | 32,618 | 29,883 | ||||||
| Assistt Rehberlik ve Müşteri Hizmetleri A.Ş. (”Assistt”) | 27,683 | 407 | ||||||
| THY Teknoloji ve Bilişim A.Ş. (”THY Teknoloji”) | 23,351 | - | ||||||
| Türkiye’nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş. ("TOGG") | 21,710 | 37,255 | ||||||
| Others | 52,925 | 35,179 | ||||||
| 546,698 | 432,808 | |||||||
| Payables to related party | 30 June 2026 | 31 December 2025 | ||||||
| T.C. Hazine ve Maliye Bakanlığı (*) | 35,927,605 | 26,597 | ||||||
| Türkiye Sigorta | 472,824 | 830,299 | ||||||
| EPİAŞ | 193,817 | 248,609 | ||||||
| TT Mobil | 184,295 | 233,299 | ||||||
| Türk Telekom | 32,719 | 340,386 | ||||||
| Others | 44,176 | 107,496 | ||||||
| 36,855,436 | 1,786,686 | |||||||
(*) Payables related to 5G licenses are included.
| Other payables to related party | 30 June 2026 | 31 December 2025 | ||||||
| TVF BTIH (**) | 3,397,454 | 3,851 | ||||||
| 3,397,454 | 3,851 | |||||||
(**) Accruals related to dividend distribution are included.
| 30 |
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 17. | Related parties (continued) |
Transactions with key management personnel
Key management personnel comprise the Group's members of the Board of Directors and chief officers. There are no loans to key management personnel as of 30 June 2026 and 2025.
The Group provides additional benefits to key management personnel and contributions to retirement plans based on a pre-determined ratio of compensation.
| 30 June 2026 | 30 June 2025 | |||||||
| Short-term benefits (*) | 392,718 | 252,612 | ||||||
| Long-term benefits | 714 | 617 | ||||||
| Termination benefits | 561 | 242 | ||||||
| 393,993 | 253,471 | |||||||
(*) Short term benefits include share based payments.
The following transactions occurred with related parties:
| 30 June | 30 June | |||||||
| Revenue from related parties | 2026 | 2025 | ||||||
| Ziraat Bankası A.Ş. (“Ziraat Bankası”) (*) | 1,326,784 | 183,927 | ||||||
| Türk Telekom Mobil İletişim Hizmetleri A.Ş (“TT Mobil”) (*) | 773,852 | 856,707 | ||||||
| Enerji Piyasaları İşletme A.Ş. (“EPİAŞ”)(*) | 353,695 | 310,995 | ||||||
| Türk Hava Yolları A.Ş. (“THY”) (*) | 200,602 | 294,457 | ||||||
| Güneş Express Havacılık A.Ş. (“Sun Express”) (*) | 168,702 | 183,750 | ||||||
| Ziraat Katılım Bankası A.Ş. (“Ziraat Katılım”)(*) | 156,217 | 19,092 | ||||||
| Türksat Uydu Haberleşme Kablo TV ve İşletme A.Ş (“Türksat”)(*) | 141,272 | 90,721 | ||||||
| Türk Telekomünikasyon A.Ş (“TT”)(*) | 132,483 | 108,126 | ||||||
| TOGG (**) | 78,975 | 95,058 | ||||||
| Türkiye Halk Bankası AŞ (“Halkbank”) (*) | 73,853 | 37,938 | ||||||
| Türkiye Sigorta A.Ş. (”Türkiye Sigorta”)(*) | 49,936 | 46,238 | ||||||
| Others | 324,825 | 225,764 | ||||||
| 3,781,196 | 2,452,773 | |||||||
| 30 June | 30 June | |||||||
| Related party expenses | 2026 | 2025 | ||||||
| Türk Telekomünikasyon A.Ş (*) | 1,605,732 | 1,661,535 | ||||||
| EPİAŞ (*) | 1,421,678 | 921,418 | ||||||
| TT Mobil (*) | 834,552 | 1,570,037 | ||||||
| T.C. Hazine ve Maliye Bakanlığı | 223,290 | 198,992 | ||||||
| TT Mobil-Vodafone Evrensel İş Ortaklığı | 182,187 | 190,629 | ||||||
| İstanbul Takas ve Saklama Bankası A.Ş. (”Takasbank”) (*) | 104,394 | 197,206 | ||||||
| Vakıfbank (*) | - | 877,632 | ||||||
| Others | 255,091 | 301,338 | ||||||
| 4,626,924 | 5,918,787 | |||||||
(*) Related parties, which TVF directly and / or indirectly has control or joint control or significant influence.
(**) Related party which is associate.
| 31 |
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 17. | Related parties (continued) |
Details of the financial assets and liabilities with related parties as of 30 June 2026 and 31 December 2025 are as follows:
| 30
June 2026 | 31
December 2025 | |||||||
| Banks - Time deposits | 26,282,179 | 66,711,788 | ||||||
| Banks - Demand deposits | 1,544,157 | 1,401,379 | ||||||
| Receivables from reverse repo | 7,981,968 | - | ||||||
| Financial investment (*) | 11,531,907 | 17,463,595 | ||||||
| Bank borrowings | (1,032,955 | ) | (333,946 | ) | ||||
| Debt securities issued | (357,268 | ) | (1,391,447 | ) | ||||
| Lease liabilities (**) | (10,240,386 | ) | (11,074,516 | ) | ||||
| Impairment loss provision associated with bank deposits and other financial assets | (2,381 | ) | (2,751 | ) | ||||
(*) Financial investments consist of bonds.
(**) As of June 30, 2026, pursuant to the lease agreement entered into by the Group with Boru Hatları İle Petrol Taşıma A.Ş. (“BOTAŞ”), an amount of TL 9,182,705 is recognized under lease liabilities in the statement of financial position. In relation to this agreement, an interest expense of TRY 431,688 is included in the consolidated statement of profit or loss for the year ended 30 June 2026.
As of 30 June 2026, the amounts of letters of guarantee given to the related parties is TRY 2,631,662 (31 December 2025: TRY 3,491,097).
Details of the time deposits at related parties as of 30 June 2026 and 31 December 2025 are as follows:
| 30 June 2026 | 31 December 2025 | |||||||
| Ziraat Bankası | 21,610,561 | 59,401,151 | ||||||
| Ziraat Katılım | 1,988,762 | 3,254,930 | ||||||
| Vakıfbank | 1,527,732 | 3,870,111 | ||||||
| Halkbank | 1,155,124 | 185,596 | ||||||
| 26,282,179 | 66,711,788 | |||||||
| 32 |
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 17. | Related parties (continued) |
Details of the time deposits at related parties
| Amount in Original Currency | Currency | Effective Interest Rate | Maturity | 30 June 2026 | |||||
| 387,581 | USD | 2.5% | July - August 2026 | 18,048,711 | |||||
| 103,406 | EUR | 1.5% | July - August 2026 | 5,491,469 | |||||
| 2,727,505 | TRY | 39.6% | July 2026 | 2,741,999 | |||||
| 26,282,179 |
Details of the bank borrowings at related parties
| Principle Amount | Currency | Effective Interest Rate | Maturity | 30 June 2026 | |||||
| 766,416 | TRY | 40.3% - 45% | July 2026 | 787,217 | |||||
| 235,000 | TRY | TLREF+2.0% | August 2027 | 245,738 | |||||
| 1,032,955 |
Details of the debt securities issued at related parties
| Amount in Original Currency | Currency | Effective Interest Rate | Maturity | 30 June 2026 | |||||
| 350,000 | TRY | 40.50% | August - September 2026 | 357,268 | |||||
| 357,268 |
Details of the lease liabilities at related parties
| Currency | Effective Interest Rate | Maturity | 30 June 2026 | ||||
| TRY | 19.5% - 62.3% | 2026 - 2035 | 1,057,680 | ||||
| USD | 8.9% - 9.7% | 2040 | 9,182,706 | ||||
| 10,240,386 |
Details of the receivables from reverse repo
| Amount in Original Currency | Currency | Effective Interest Rate | Maturity | 30 June 2026 | |||||
| 150,000 | EUR | 2.8% | July 2026 | 7,981,968 | |||||
| 7,981,968 |
Details of the financial investments
| Amount in Original Currency | Currency | Maturity | 30 June 2026 | ||||
| 240,704 | USD | July 2026- October 2034 | 11,531,907 | ||||
| 11,531,907 |
| 33 |
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 17. | Related parties (continued) |
Interest income to related parties
| 30 June 2026 | 30 June 2025 | |||||||
| Ziraat Bankası | 544,127 | 739,141 | ||||||
| Vakıfbank | 308,101 | 897,024 | ||||||
| Halkbank | 101,804 | 444,954 | ||||||
| Diğer ilişkili kuruluşlardan gelirler | 32,458 | 121,242 | ||||||
| 986,490 | 2,202,361 | |||||||
Interest expense to related parties
| 30 June 2026 | 30 June 2025 | |||||||
| Halk Varlık Kiralama A.S. ("Halk Varlık Kiralama") | 198,546 | 238,607 | ||||||
| Vakıfbank | 5,675 | 1,203,660 | ||||||
| Other | 4,032 | 5,342 | ||||||
| 208,253 | 1,447,609 | |||||||
The revenues obtained from the related parties of the Group generally consist of telecommunications services, call center services, and other services. The transactions between the Group and EPİAŞ involve the provision of energy services; the transactions with BOTAŞ involve the provision of infrastructure services; the transactions with Halk Bank, Ziraat Bank, Ziraat Investment, and Vakıfbank involve banking services; the transactions with Türksat involve telecommunications services; and the transactions with BIST arise from capital market transactions. The receivables from related parties are unsecured.
| 34 |
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 18. | Subsidiaries |
The Group’s ultimate parent company is TVF, while subsidiaries, associates and a joint venture of the Company as at 30 June 2026 and 31 December 2025 are as follows:
| Effective Ownership Interest | ||||||||
| Subsidiaries Name | Country
of Incorporation | Business | 30 June 2026 (%) | 31 December 2025 (%) | ||||
| Turktell | Türkiye | Information technology, value added GSM services and entertainment investments | ||||||
| Turkcell Superonline | Türkiye | Telecommunications, television services and content services | 100 | 100 | ||||
| Turkcell Satış | Türkiye | Sales, delivery and digital sales services | 100 | 100 | ||||
| Turkcell Teknoloji | Türkiye | Research and development | 100 | 100 | ||||
| Turkcell Gayrimenkul | Türkiye | Property investments | 100 | 100 | ||||
| Turkcell Dijital | Türkiye | Digitalization services and products | 100 | 100 | ||||
| Atmosware Teknoloji | Türkiye | Develop software products and services, training software developers | 100 | 100 | ||||
| Turkcell Enerji | Türkiye | Electricity energy trade and wholesale and retail electricity sales | 100 | 100 | ||||
| Boyut Enerji | Türkiye | Electricity energy trade and wholesale and retail electricity sales | 100 | 100 | ||||
| Turkcell Finansman | Türkiye | Consumer financing services | 100 | 100 | ||||
| Turkcell Sigorta | Türkiye | Insurance agency activities | 100 | 100 | ||||
| Turkcell Dijital Sigorta | Türkiye | Dijital agency activities | 100 | 100 | ||||
| Turkcell Ödeme | Türkiye | Payment services and e-money license | 100 | 100 | ||||
| Lifecell Dijital Servisler | Türkiye | Development and providing of digital services and products | 100 | 100 | ||||
| Lifecell TV | Türkiye | Online radio, television and on-demand streaming services | 100 | 100 | ||||
| Lifecell Müzik | Türkiye | Radio, television and on-demand streaming services | 100 | 100 | ||||
| Global Tower | Türkiye | Telecommunications infrastructure business | 100 | 100 | ||||
| Beltower | Republic of Belarus | Telecommunications infrastructure business | 100 | 100 | ||||
| Eastasian | Netherlands | Telecommunications investments | 100 | 100 | ||||
| Kıbrıs Telekom | Turkish Republic of Northern Cyprus | Telecommunications | 100 | 100 | ||||
| Lifecell Digital | Turkish Republic of Northern Cyprus | Telecommunications | 100 | 100 | ||||
| Turkcell Dijital Teknolojileri | Turkish Republic of Northern Cyprus | Electronic payment services | 100 | 100 | ||||
| Turkcell Global Bilgi | Türkiye | Customer relations and human resources management | 100 | 100 | ||||
| Lifecell Ventures | Netherlands | Telecommunications investments | 100 | 100 | ||||
| Paycell LLC (*) | Ukraine | Consumer financing services | 100 | 100 | ||||
| Paycell Europe | Germany | Payment services and e-money | 100 | 100 | ||||
| Yaani | Netherlands | Internet search engine and browser services | 100 | 100 | ||||
| BiP B.V. | Netherlands | Providing digital services and products | 100 | 100 | ||||
| TDTS A.S. (**) | Türkiye | Providing digital services and products | 100 | 100 | ||||
| BeST | Republic of Belarus | Telecommunications | 100 | 100 | ||||
| Lifetech | Republic of Belarus | Information technology, programming and technical support | 100 | 100 | ||||
| Sofra | Türkiye | Meal coupons and cards | 100 | 100 | ||||
| TDC | Türkiye | Data center and cloud services | 100 | 100 | ||||
| Turkcell GSYF | Türkiye | Venture capital investment fund | 100 | 100 | ||||
| Ultia (***) | Türkiye | Information technology | 100 | 100 | ||||
| Effective Ownership Interest | ||||||||||
| Associate Name | Country
of Incorporation | Business | 30 June 2026 (%) | 31 December 2025 (%) | ||||||
| TOGG | Türkiye | Electric passenger car development, production and trading activities | 23 | 23 | ||||||
(*) As of 27 January 2025, it was decided to liquidate Paycell LLC, established in Ukraine.
(**) BiP A.Ş has been changed to “Turkcell Dijital Teknoloji Satış A.S.” as of 1 April 2026.
(***) A liquidation decision was taken on 13 April 2026.
| 35 |
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2026
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 June 2026 unless otherwise stated.)
| 19. | Investments accounted for using the equity method |
The details of carrying values of investments accounted for using the equity method are as follows:
| Associates | 30 June 2026 | 31 December 2025 | ||||
| TOGG | 4,174,245 | 4,201,242 |
The movement of investments accounted for using the equity method is as follows:
| 30 June 2026 | 30 June 2025 | |||||||
| Opening balance | 4,201,242 | 8,160,041 | ||||||
| Shares of profit / (loss) | (81,477 | ) | (2,800,796 | ) | ||||
| Actuarial gain | 22,067 | - | ||||||
| Effect of changes in exchange rates | 32,413 | - | ||||||
| Closing balance | 4,174,245 | 5,359,245 | ||||||
| 20. | Seasonality of operations |
The Turkish mobile communications market does not exhibit any significant seasonality that materially affects the financial statements.
| 21. | Subsequent events |
None.
| 36 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Turkcell İletişim Hizmetleri A.Ş. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| TURKCELL İLETİŞİM HİZMETLERİ A.Ş. | |||
| Date: August 14, 2026 | By: | /s/ Özlem Yardım | |
| Name: | Özlem Yardım | ||
| Title: | Investor Relations Corporate Finance Director | ||
| TURKCELL İLETİŞİM HİZMETLERİ A.Ş. | |||
| Date: August 14, 2026 | By: | /s/ Kamil Kalyon | |
| Name: | Kamil Kalyon | ||
| Title: | Chief Financial Officer | ||
| TURKCELL İLETİŞİM HİZMETLERİ A.Ş. | |||
| Date: August 14, 2026 | By: | /s/ Nuri Burak Konuk | |
| Name: | Nuri Burak Konuk | ||
| Title: | Group Financial Reporting Director | ||