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TÜRK TELEKOMÜNİKASYON A.Ş.
Earnings Release • May 7, 2025
5965_rns_2025-05-07_323f5418-b75c-4146-93be-35949776eaa6.pdf
Earnings Release
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TÜRK TELEKOM GROUP 2025 FIRST QUARTER FINANCIAL AND OPERATIONAL RESULTS
May 7, 2025
FIRST QUARTER PERFORMANCE GETS 2025 GUIDANCE ON A FIRM FOOTING
Türk Telekom Group announces its first quarter 2025 financial and operational results. Consolidated revenues increased by 18.3% YoY to TL 45.6 billion in Q1'25 with a robust start to the year. Ex-IFRIC 12 revenue growth was 17.6%. EBITDA grew 26.5% in the quarter to TL 17.9 billion with 39.3% margin. Net income came in at TL 5.1 billion rising by 45.2% YoY. Net Debt/EBITDA1 multiple inched down to 0.73x as of Q1'25.
Türk Telekom CEO Ümit Önal said: "We made a spectacular start to the year primarily driven by the maintained strength in fixed internet and mobile performances. The ongoing disinflation process has nicely supported the operational performance along with a strong revenue generation versus a relatively mild opex evolution in Q1'25 despite the regular personnel salary adjustment we implemented at the beginning of the year. We have been closely watching the recent developments and market volatility in order to assess their potential impact on the subscriber behaviour and our businesses, which seemingly has been absent so far. As such, we stand confident about the 2025 guidance we shared earlier; yet, remain alert on both the local and global news flow ahead to prepare ourselves for different scenarios from our base case."
1st Quarter Financial Highlights
Consolidated revenues increased by 18.3% to TL 45.6 billion from TL 38.5 billion a year ago. Fixed internet and mobile have once again led growth which was also supported by the robust pace in corporate data and equipment sales. Excluding the IFRIC 12 accounting impact, Q1'25 revenue was TL 44.2 billion, up 17.6% YoY including increases of 20.8% in fixed broadband, 24.3% in mobile, 16.0% in TV and 31.2% in corporate data as well as contractions of 8.8% in international, 2.5% in fixed voice and 5.8% in other segments.
Fixed internet and mobile together made 76.2% of operating revenue (ex-IFRIC 12). The two lines of business made the largest contribution to growth with TL 6.3 billion higher revenues in total YoY. While corporate data and equipment sales added another TL 0.9 billion, ICT solutions and international revenues mitigated that contribution with a total of TL 0.6 billion drop YoY. The change in corporate data and equipment sales can largely be explained by price adjustments whereas it is mostly attributable to an expectedly milder year in general in ICT solutions, driven both by the high base effect and anticipated sector dynamics. Additionally, some revenues shifting into the next quarters amplified the first quarter softness. In our international business, the change in EURTRY exchange rate remaining well behind the annual inflation rate pressured the performance in lira terms. Continued erosion in the voice segment also led overall revenues lower YoY.
ARPU evolution remained robust thanks to continued subscriber expansion, pricing actions and healthy upsell performances. The 20.8% YoY growth in fixed internet revenue was higher than the prior quarter's performance and driven by 1.3% increase in average number of subscribers
1Net debt includes MTM from FX to TRY Currency Swaps and FV of Currency Protected Time Deposits. Net Debt/EBITDA calculation excludes extraordinary items in EBITDA calculation.
and 19.4% in ARPU. The 24.3% growth in mobile revenue was nearly flat QoQ and driven by an impressive 5.4% increase in average number of subscribers and 18.6% in ARPU.
Direct costs rose merely by 6.1% YoY with interconnection cost and equipment & technology sales cost coming down 6.1% and 20.9% whilst taxes and cost of bad debt going up 22.1% and 70.0% respectively. The decline in interconnection cost was driven by currency and inflation accounting impact. The drop in equipment & technology sales cost was parallel to contracting revenues from ICT solutions offered by Türk Telekom and its subsidiary İnnova in the period. Taxes increased in tandem with mobile revenues. Commercial cost went up by 12.8% YoY and other costs by 16.0%. Under commercial cost, higher marketing, advertising, brand and corporate communication expenses once again led the annual change. Under other costs, network expense remained flat YoY in the absence of any electricity tariff hikes within the first quarter whilst personnel cost rose by 15.3% largely owing to the regular personnel salary (nonunion) adjustment we take at the beginning of the year. Semi-annual adjustment to unionised personnel salaries for the period covering September 2024- February 2025 has also taken effect starting from March as per the terms of the agreement we announced on November 11, 2024. As a result, opex to sales ratio dropped to 60.7% from 63.3% in Q1'24 and stayed nearly flat QoQ thanks to continuously improving operational leverage.
Once again surpassing the top-line growth consolidated EBITDA rose by 26.5% annually to TL 17.9 billion from TL 14.2 billion a year ago along with a strong 260 bps margin expansion YoY to 39.3%. Excluding the IFRIC 12 accounting impact, EBITDA margin was 40.2%.
Recall that we had changed the calculation of amortisation expense in Q4'24. Accordingly, we had amortised the related intangible fixed assets either throughout their remaining useful life or throughout the expected extension period of the fixed line concession agreement; whichever shorter. The so-called adjustment was applied for the amortisation expense of the related assets starting from 2024 but was recorded as a one-time adjustment in Q4'24. We have now restated Q1'24 depreciation & amortisation line for this adjustment in order to present Q1'24 and Q1'25 financials on a like-for-like basis. Accordingly, we recorded TL 9.7 billion depreciation & amortisation expense in Q1'25 versus TL 9.9 billion in Q1'24. This has brought Q1'25 operating profit to TL 8.2 billion, up 92.6% YoY; once again crystallising our robust performance.
TL 5.5 billion of net financial expense was 29.3% lower in annual comparison but 4.4% higher on quarterly basis. Annual trend can largely be explained by a 17% increase in USDTRY and EURTRY rates on average, well behind inflation. Lower net debt amid healthy operational performance and FCF generation also helped. However, the quarterly change in exchange rates was about 9%, again largely intuitive for the trend in net financial expense QoQ. Hedging costs have also gone up a bit due to recent volatility in financial markets, of which the impact should be more visible from Q2'25 onwards along with CBRT's recent tightening.
According to the sensitivity of the P&L statement to exchange rate movements, a 10% depreciation of TL would have negative TL 1 billion impact on Q1'25 PBT assuming all else
constant. Similarly, a 10% appreciation of TL would have positive TL 1.1 billion impact. Net Debt/EBITDA has inched down to 0.73x from 0.81x a quarter ago and 1.13x a year ago.
We recorded TL 3.5 billion of tax expense in total largely driven by the deferred taxes leading to 40.6% effective tax rate. The deviation from the ordinary corporate tax rate was largely driven by the indexation of last year's tax assets to Q1'25 as per the inflation accounting principles and the gap between PPI and CPI. As a result, we generated TL 5.1 billion of net income, up 45.2% YoY.
TL 8 billion of capex spending pointed to a 27.7% increase YoY owing to last year's significantly low base. Capex intensity stood at 17.6% for the period, as a result.
Unlevered free cash flow2 was TL 7.8 billion compared to TL 7.3 billion in Q4'24 and TL 2.6 billion in Q1'24. Strong operating performance and collection of remaining insurance coverage for the 2023 earthquakes led a tripling FCF YoY.
Net debt3 decreased to TL 54.4 billion as of Q1'25 compared to TL 64.7 billion as of Q1'24. Excluding the IFRS 16 impact, net debt was TL 48.9 billion. As of Q1'25, FX based financial debt excluding the IFRS 16 impact decreased both QoQ and YoY to USD 1.5 billion equivalent (Q4'24: USD 1.6 billion; Q1'24: USD 1.9 billion). The share of TL financing was 5.5% as of Q1'25.
Our short FX position4 was USD 203 million as of Q1'25. Excluding the ineffective portion of the hedge portfolio, namely the PCCS contracts, foreign currency exposure was USD 282 million short FX position.
| Q1'25 | Q1'24 | YoY | |
|---|---|---|---|
| TL | Change | ||
| Fixed Voice | 80.9 | 74.4 | 8.7% |
| Fixed Broadband | 296.2 | 248.1 | 19.4% |
| Home TV | 90.0 | 79.4 | 13.4% |
| Mobile | 233.3 | 196.7 | 18.6% |
| Postpaid | 260.4 | 210.1 | 23.9% |
| Prepaid | 141.1 | 157.0 | (10.1)% |
Table 1: Q1'25 ARPU by Line of Business
2Unlevered free cash flow defined as net cash provided by operating and investing activities from operations.
3Net debt includes MTM from FX to TRY Currency Swaps and FV of Currency Protected Time Deposits.
4Net FX position is calculated as FX based financial debt (including FX based lease obligations) plus FX based net trade payables less FX financial debt hedging less FX net trade payables hedging less currency protected time deposits less net investment hedging less FX based cash and cash equivalents.
Table 2: Q1'25 Consolidated Summary Financials
| Q1'25 | Q1'24 | YoY | |
|---|---|---|---|
| TL mn | Change | ||
| Revenue | 45,596 | 38,545 | 18.3% |
| Revenue (Exc IFRIC 12) | 44,165 | 37,544 | 17.6% |
| EBITDA | 17,912 | 14,158 | 26.5% |
| Margin | 39.3% | 36.7% | |
| Depreciation & Amortisation | (9,679) | (9,883) | (2.1)% |
| Operating Profit | 8,233 | 4,275 | 92.6% |
| Margin | 18.1% | 11.1% | |
| Financial Income/(Expense) | (5,515) | (7,802) | (29.3)% |
| Monetary Gain/(Loss) | 5,925 | 10,605 | (44.1)% |
| Profit Before Tax | 8,643 | 7,078 | 22.1% |
| Tax Income/(Expense) | (3,509) | (3,543) | (1.0)% |
| Net Income | 5,134 | 3,536 | 45.2% |
| Capex Intensity | 17.6% | 16.3% |
Table 3: Q1'25 Actual vs Guidance
| Q1'25 | 2025 | ||
|---|---|---|---|
| Consolidated | Actual | Guidance5 | |
| Revenue growth (exc. IFRIC 12) | 17.6% | 8-9% | |
| EBITDA margin | 39.3% | 38-40% | |
| CAPEX intensity | 17.6% | 28-29% |
1st Quarter Operational Highlights
We closed Q1'25 with 53.6 million subscribers in total, up 447K QOQ. Excluding the 155K loss in the fixed voice segment, quarterly net additions were 602K despite a relative low seasonality in Q1. Mobile remained the largest contributor but fixed internet also surpassed our expectation for the period.
Fixed broadband base was flat around 15.4 million with 53K net subscriber gain in Q1'25. Fibre base expanded to 13.9 million subscribers with 177K net additions. The number of FTTC subscribers was 8.3 million, while the number of FTTH/B subscribers increased to 5.6 million. The share of fibre subscribers in our total fixed broadband base increased to 90.1% from 89.2% a quarter ago and 85.7% a year ago.
Fibre cable network length increased to 482K km as of Q1'25 from 475K km as of Q4'24 and 441K km as of Q1'24. Fibre network covered 33.2 million households by the end of Q1'25 compared to 33.1 million as of Q4'24 and 32.2 million as of Q1'24. FTTC homepass was 19.4 million, while FTTH/B homepass increased to 13.8 million.
Mobile segment added 511K subscribers on net basis with another stunning quarterly performance pushing up the total base to 27.9 million. While postpaid segment added 593K
5 2025 guidance expectations represent approximate values
subscribers in a repetitive strength for quarters, prepaid segment posted an 82K net loss; both performing better than we expected. The ratio of postpaid subscribers in total portfolio peaked to 75.7% from 75% as of Q4'24 and 72.3% as of Q1'24.
TV Home recorded 24K net additions maintaining its subscriber base around 1.5 million.
| End of period, Mn | Q1'25 | Q1'24 | YoY |
|---|---|---|---|
| Change | |||
| Fixed Voice | 7.4 | 8.2 | (9.7)% |
| Fixed Broadband | 15.4 | 15.2 | 1.4% |
| Retail | 11.1 | 10.9 | 1.1% |
| Wholesale | 4.3 | 4.3 | 2.0% |
| TV | 2.9 | 3.1 | (6.9)% |
| Mobile | 27.9 | 26.2 | 6.3% |
| Postpaid | 21.1 | 19.0 | 11.3% |
| Prepaid | 6.8 | 7.3 | (6.8)% |
| Total | 53.6 | 52.8 | 1.6% |
Table 4: Number of Subscribers by Line of Business
Türk Telekom CEO Ümit Önal's comments on Q1'25 results:
2025 starts on a strong footing
An escalating tariff war has raised significant concerns around the world trade order sending shockwaves to financial markets globally. At home, the CBRT has swiftly introduced a series of measures to contain the recent volatility in financial markets driven by the local developments and global tariff conflicts. Although disinflation has continued with a milder 2.46% monthly CPI print in March pushing the annual inflation down to 38.10%, the CBRT paused its easing cycle in its April meeting and opted for an unexpected 350 bps hike in policy rate to re-emphasise priority on bringing inflation down and to maintain lira stability. While the Bank left its yearend inflation forecast range of 19-29% unchanged, year-end inflation expectation moved to 29.98% from 28.04% in April market expectations survey, which was conducted before the CBRT's recent rate decision. Finally, inflation inched down to 37.86% according to the recently announced April data in an ongoing, albeit slower disinflation trend as the monthly CPI picked up to 3%.
Nevertheless, we made a great start to the year in the absence of any impact from this backdrop in the reporting period. We closely monitor the developments on the ground and abroad. Although possible repercussions are yet to be seen, it is worth mentioning that we have seen no disruption to our businesses from the so-called developments as of yet. The 18.3% revenue growth was a tad ahead of our budget which incorporates a faster pace for the top-line in the first half and a moderating one in the second half given last year's base effect in opposite directions in the same periods. 26.5% EBITDA growth along with 39.3% margin on the other hand came well ahead of our expectation thanks to strong revenue generation and slower pace in opex evolution despite the regular increase in employee wages we implemented at the beginning of the year.
Competition in mobile sector somewhat eased from its peak in December but remained high in general with intense promotional activity in the aftermath of January price adjustments. The MNP market contracted QoQ after reaching its highest volume in December but expanded YoY. Following a spectecular performance in January, we stayed on top of the MNP market as the most preferred mobile operator on a consistent basis. In fixed internet, even to date, very few ISPs followed our retail tariff price revision introduced around mid-March. Still, we achieved a net add performance beating our expectation for the period.
Data consumption once again confirmed solid demand from subscribers. Usage per LTE subscriber6 increased YoY but slowed QoQ at respective rates of 3% and 1%, whereas fixed internet data7 usage increased both YoY and QoQ at respective rates of 4% and 9%.
We are highly satisfied with our Q1'25 performance which put us on track with our annual targets. 17.6% operating revenue growth (ex-IFRIC 12) and 39.3% EBITDA margin bode well with our full year guidance pointing to respective ranges of 8-9% and 38-40%. 17.6% capex
6Average monthly data usage per LTE user
7Average monthly data consumption per user
intensity in the reporting period is yet distant to our 28-29% guidance range but this is due to the typical seasonality in our capex spending, implying a slower pace in early months and an acceleration later in the year. Although Q1'25 results seem to pose upside risk to our full year guidance, particularly at the margin front, we prefer to observe the next quarter performance as well as the domestic and global macro environment before we consider any revisions.
Fixed broadband delivers robust KPIs
Subscriber dynamics were shaped by seasonality, Ramadan and largely unchanged competitive and pricing environments over the first quarter. In accordance with our focus on ARPU growth we took the first pricing action of the year and revised fixed broadband tariffs in the retail segment on March 17. We have seen very few competitors follow suit so far. We have extended the contract structure to 18-months from 15-months in new sales as disinflation continued. Finally, we have submitted our application for a price revision in the wholesale segment to the regulator.
Led by the retail segment, we recorded 53K net addition in the first quarter with a performance slightly ahead of our expectation. It would be reasonable to expect the impact of the latest pricing action in the retail market to become more visible in the second quarter.
Overall churn rate dropped both QoQ and YoY. Re-contracting performance beat our expectation whereas upselling remained quite strong. Volumes in both exceeded the levels seen in the same period of last year. We aim to take benefit of the higher volume of contract renewals due in 2025 in order to support ARPU growth through re-contracting and upselling.
Robust demand for high speed prevailed in the first quarter. 50 Mbps+ packages made 72%8 of new sales and 54% of re-contracting. Average package speed of our subscriber base9 increased by 48% YoY to 74 Mbps as of Q1'25. 51% of our subscribers10 now use 50 Mbps+ packages compared to 38% a year ago.
Surpassing prior quarter's performance, Q1 ARPU increased by a remarkable 19.4% YoY. That, combined with a 1.3% growth in average subscriber base produced a solid 20.8% rise in FBB revenues.
Mobile keeps running ahead
Subscriber acquisition remained a high priority for mobile operators in Q1 but it would be fair to say competition rolled back a bit from a tense December. Sticking to dynamic pricing, all operators took their first pricing action in January but tried to balance subscriber dynamics with promotional campaigns over February and March. Once again, the activity mostly shaped around the postpaid segment but we have seen some momentum in the prepaid segment also.
8 For retail segment
9 Total retail base including DSL and fibre subscribers
10 Total retail base including DSL and fibre subscribers
In some cases, campaigns were very attractive in pricing and stayed open for quite extended periods of time.
MNP market also contracted from the last quarter after hitting its record high volume in December but kept advancing on annual basis. Our leadership in the MNP market as the most preferred operator in this domain remained unchallenged. We recorded the highest net port volume of the past eleven years in January, which was a relatively milder period in competitive pressures.
Fuelled by the postpaid segment, the number of new acquisitions recorded the highest first quarter performance since 2014. Prepaid acquisitions also compared higher to the same period of last year. Blended churn rate dropped YoY and compared more favourably to our expectation.
ARPU growth remained intact despite quarters of strong net additions which climbed to 511K in the first quarter in a better-than-expected performance taking the total mobile base to 27.9 million. Postpaid base added 593K subscribers, marking its highest quarterly performance since Q4'23. Accordingly, postpaid net adds in the LTM totalled 2.1 million reaching a historic high and growing the postpaid base by an overwhelming 11.3% YoY. Prepaid segment lost 82K subscribers on net basis, also marking a better-than-expected performance for the period. The ratio of postpaid subscribers in total portfolio climbed to 75.7% compared to 75% as of Q4'24 and 72.3% as of Q1'24.
In a strong trend, mobile blended ARPU showed no signs of dilution proving that we keep expanding our subscriber base in a fine balance. The 18.6% YoY increase in blended ARPU was a combination of 23.9% growth in postpaid ARPU and 10.1% contraction in prepaid ARPU. That, together with a 5.4% growth in average subscriber base produced an impressive 24.3% rise in mobile revenues.
Financial Review
| (TL mn) | Q1'24 | Q1'25 | YoY Change |
|---|---|---|---|
| Revenue | 38,545 | 45,596 | 18.3% |
| Revenue (Exc. IFRIC 12) | 37,544 | 44,165 | 17.6% |
| EBITDA | 14,158 | 17,912 | 26.5% |
| Margin | 36.7% | 39.3% | |
| Depreciation and Amortisation | (9,883) | (9,679) | (2.1)% |
| Operating Profit | 4,275 | 8,233 | 92.6% |
| Margin | 11.1% | 18.1% | |
| Financial Income / (Expense) | (7,802) | (5,515) | (29.3)% |
| FX & Hedging Gain / (Loss) | (5,454) | (3,135) | (42.5)% |
| Interest Income / (Expense) | (1,579) | (1,672) | 5.9% |
| Other Financial Income / (Expense) | (769) | (708) | (7.9)% |
| Monetary Gain / (Loss) | 10,605 | 5,925 | (44.1)% |
| Tax Income / (Expense) | (3,543) | (3,509) | (1.0)% |
| Net Income | 3,536 | 5,134 | 45.2% |
| Margin | 9.2% | 11.3% | |
| CAPEX | 6,288 | 8,031 | 27.7% |
Subscriber Data
| (mn, EoP) | Q1'24 | Q4'24 | Q1'25 | QoQ Change |
YoY Change |
|---|---|---|---|---|---|
| Total Access Lines 1 1 | 17.4 | 17.4 | 17.4 | 0.1% | 0.3% |
| Fixed Voice Subscribers | 8.2 | 7.6 | 7.4 | (2.1)% | (9.7)% |
| Naked Broadband Subscribers | 9.2 | 9.9 | 10.0 | 1.8% | 9.2% |
| Total Broadband Subscribers | 15.2 | 15.4 | 15.4 | 0.3% | 1.4% |
| Total Fibre Subscribers | 13.0 | 13.7 | 13.9 | 1.3% | 6.5% |
| FTTH/B | 4.5 | 5.3 | 5.6 | 6.2% | 25.0% |
| FTTC | 8.6 | 8.5 | 8.3 | (1.8)% | (3.1)% |
| Total TV Subscribers 1 2 | 3.1 | 2.9 | 2.9 | 1.3% | (6.9)% |
| Tivibu Home (IPTV + DTH) Subscribers | 1.5 | 1.5 | 1.5 | 1.6% | 4.0% |
| Mobile Total Subscribers | 26.2 | 27.3 | 27.9 | 1.9% | 6.3% |
| Mobile Postpaid Subscribers | 19.0 | 20.5 | 21.1 | 2.9% | 11.3% |
| Mobile Prepaid Subscribers | 7.3 | 6.8 | 6.8 | (1.2)% | (6.8)% |
11 PSTN and WLR Subscribers
12 Tivibu Home (IPTV, DTH) and Tivibu GO subscribers
ARPU Performance
| TL | Q1'24 | Q1'25 | YoY Change |
|---|---|---|---|
| Fixed Voice ARPU | 74.4 | 80.9 | 8.7% |
| Broadband ARPU | 248.1 | 296.2 | 19.4% |
| Home TV ARPU | 79.4 | 90.0 | 13.4% |
| Mobile Blended ARPU | 196.7 | 233.3 | 18.6% |
| Mobile Postpaid ARPU | 210.1 | 260.4 | 23.9% |
| Mobile Prepaid ARPU | 157.0 | 141.1 | (10.1)% |
Disclaimer
Pursuant to the resolution of the Capital Markets Board ("CMB") dated 28.12.2023 and numbered 81/1820; it has been resolved that the provisions of TAS 29 (Financial Reporting in Hyperinflationary Economies) be implemented starting from the annual financial reports of issuers and capital market institutions that apply Turkish Accounting/Financial Reporting Standards and are subject to financial reporting regulations for the accounting periods starting from 31.12.2023.
Türk Telekomünikasyon A.Ş. (the "Company") has published its financial results in accordance with TAS 29 standards.
The information contained herein has been prepared by Türk Telekomünikasyon A.Ş. in connection with the operations of Türk Telekom Group companies. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. This press release or any information contained herein cannot be used without the written consent of the Company.
This press release is intended to provide information about the Company's operations and financial results and includes certain forward-looking statements, opinions, assumptions and estimated figures. Accordingly, it includes data and estimates for which inflation accounting has not been applied for informational purposes as opposed to data and estimates for which inflation accounting has been applied, and reflects the management's current views and assumptions regarding the Company's future prospects. The information provided by the Company is collected from sources believed to be reliable, but the accuracy and completeness of this information are not guaranteed. Although it is believed that the expectations reflected in these statements are reasonable, realisations may vary depending on the development and realisation of the variables and assumptions that constitute forward-looking expectations and estimated figures.
The Company and its shareholders, board members, directors, employees of Türk Telekomünikasyon A.Ş. or any other person may not be held liable for any damages that may arise from the use of the contents of this press release.
Türk Telekom Group Consolidated Financial Statements are available on https://www.ttyatirimciiliskileri.com.tr/en-us/financial-operational-information/pages/quarterly-results
Notes:
EBITDA is a non-GAAP financial measure. The EBITDA definition used in this press release includes revenues, cost of sales, marketing, sales and distribution expenses, general administrative expenses, research and development expenses and other operating income/(expense), and income/(expense) from investing activities, but excludes depreciation, amortisation and impairment expenses, financial income/(expense) presented in other operating income/(expense) (i.e. FX gain/(loss), interest and rediscount income/(expense) on current accounts excluding bank borrowings).
Operating profit includes revenues, cost of sales, depreciation, amortisation and impairment expenses, marketing, sales and distribution expenses, general administrative expenses, research and development expenses, other operating income/(expense), and income/(expense) from investing activities, but excludes financial income/(expense) presented in other operating income/(expense) on CMB financial statements (i.e. FX gain/(loss), interest and rediscount income/(expense) on current accounts excluding bank borrowings).
Net financial income/(expense) includes financial income/(expense) and FX gain/(loss), interest and rediscount income/(expense) on current accounts excluding bank borrowings which are presented in other operating income/(expense) on CMB financial statements.
Net FX Position is calculated by subtracting the sum of i) the hedge transactions, ii) FX-denominated cash and cash equivalents and iii) the net investment hedge from the sum of iv) FX-denominated financial debt (including FX-denominated lease obligations) and v) FX denominated net trade payables. Net investment hedge is the hedge amount against the financial risk of the net investment in the off-shore subsidiaries (Türk Telekom International) as per the Effects of Changes in FX Rate standard (TAS 21) of the Turkish Accounting Principles.
About Türk Telekom Group
Türk Telekom, with more than 180 years of history, is the first integrated telecommunications operator in Türkiye. In 2015, Türk Telekomünikasyon A.Ş. adopted a "customer-oriented" and integrated structure in order to respond to the rapidly changing communication and technology needs of customers in the most powerful and accurate way, while maintaining the legal entities of TT Mobil İletişim Hizmetleri A.Ş. and TTNET A.Ş. intact and adhering to the rules and regulations to which they are subject. Having a wide service network and product range in the fields of individual and corporate services, Türk Telekom unified its mobile, internet, phone and TV products and services under the single "Türk Telekom" brand as of January 2016.
"Türkiye's Multiplay Provider" Türk Telekom has 17.4 million fixed access lines, 15.4 million fixed broadband, 27.9 million mobile and 2.9 million TV subscribers as of March 31, 2025. Türk Telekom Group Companies provide services in all 81 cities of Türkiye with 36,054 employees with the vision of introducing new technologies to Türkiye and accelerating Türkiye's transformation into an information society.
Türk Telekomünikasyon A.Ş., providing PSTN and wholesale broadband services, directly owns 100% of mobile operator TT Mobil İletişim Hizmetleri A.Ş., retail internet services, IPTV, satellite TV, Web TV, Mobile TV, Smart TV services provider TTNET A.Ş., convergence technologies company Argela Yazılım ve Bilişim Teknolojileri A.Ş., IT solution provider İnnova Bilişim Çözümleri A.Ş., online education software company SEBİT Eğitim ve Bilgi Teknolojileri A.Ş., call centre company AssisTT Rehberlik ve Müşteri Hizmetleri A.Ş., project development and corporate venture capital company TT Ventures Proje Geliştirme A.Ş, Electric Supply and Sales Company TTES Elektrik Tedarik Satış A.Ş., provider of combined facilities support activities TT Destek Hizmetleri A.Ş. with TT International Holding BV, wholesale data and capacity service provider TT International Telekomünikasyon Sanayi ve Ticaret Ltd.Şti., and financial technology company TTG Finansal Teknolojileri A.Ş. and indirectly owns Consumer Finance Company TT Finansman A.Ş, software programs retail and wholesale company TT Ventures Inc, subsidiaries of TT International Holding BV, TV Broadcasting and VOD services provider Net Ekran Companies, telecommunications devices sales company TT Satış ve Dağıtım Hizmetleri A.Ş. and payment and e-money services company TT Ödeme ve Elektronik Para Hizmetleri A.Ş., and web portal and computer programming company APPYAP Teknoloji ve Bilişim A.Ş.