Interim report
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 CONTENT PAGE 1. Reporting entity 7 3 Segment information 12 4. Revenue 15 5. Other income and expense 17 6. Finance income and costs 18 7. Income tax expense 18 8. Property, plant and equipment 19 9. Intangible assets 20 10. Right-of-use assets 21 11. Cash and cash equivalents 22 12. Financial assets 23 13. Loans and borrowings 24 14. Derivative financial instruments 27 15. Financial instruments 30 16. Guarantees and purchase obligations 33 17. Commitments and Contingencies 34 18. Related parties 39 19. Subsidiaries 43 20. Investments accounted for using the equity method 44 21. Discontinued operations 45 22. Seasonality of operations 46 23. Subsequent events 46
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) The above interim condensed consolidated statement of financial position should be read in conjunction with the accompanying notes. 1 Notes 30 September 2025 31 December 2024 Assets Property, plant and equipment 8 139,965,013 131,231,639 Right-of-use assets 10 22,486,673 12,761,046 Intangible assets 9 98,778,595 102,692,161 Investment properties 201,020 234,972 Trade receivables 204,060 411,452 Receivables from financial services 256,517 460,513 Contract assets 297,882 206,964 Financial assets at fair value through other comprehensive income 12 21,192,801 14,866,130 Financial assets at fair value through profit or loss 12 3,268,555 7,477,775 Deferred tax assets 8,085,483 3,183,250 Investments in equity accounted investees 20 3,952,659 6,640,274 Other non-current assets 6,822,336 9,053,049 Total non-current assets 305,511,594 289,219,225 Inventories 818,855 846,162 Trade receivables 22,580,530 20,649,784 Due from related parties 595,285 309,220 Receivables from financial services 8,670,072 8,958,614 Contract assets 6,312,836 6,522,900 Derivative financial instruments 14 2,675,411 2,562,667 Financial assets at amortized cost 12 483,031 1,336,953 Financial assets at fair value through other comprehensive income 12 10,412,187 2,811,415 Financial assets at fair value through profit or loss 12 3,722,704 4,482,462 Cash and cash equivalents 11 122,346,742 86,464,050 Other current assets 7,290,184 7,659,979 Total current assets 185,907,837 142,604,206 Total assets 491,419,431 431,823,431
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) The above interim condensed consolidated statement of financial position should be read in conjunction with the accompanying notes. 2 Notes 30 September 2025 31 December 2024 Equity Share capital 58,555,826 58,555,826 Share premium 52,601 52,601 Treasury shares (1,637,825) (1,665,897) Reserves 6,731,470 2,772,153 Remeasurements of defined benefit plan (3,871,287) (3,873,895) Retained earnings 183,198,580 178,670,560 Total equity 243,029,365 234,511,348 Liabilities Borrowings 13 118,621,574 65,769,209 Trade and other payables 406,486 211,749 Due to related parties 45,893 317 Employee benefit obligations 3,724,380 3,803,123 Provisions 2,374,174 2,406,712 Deferred tax liabilities 12,721,399 6,584,734 Contract liabilities 2,522,050 2,700,315 Other non-current liabilities 2,006,956 1,903,195 Total non-current liabilities 142,422,912 83,379,354 Borrowings 13 62,659,271 65,104,347 Current tax liabilities 1,359,814 1,405,698 Trade and other payables 32,632,983 37,218,006 Due to related parties 1,893,063 1,203,994 Deferred revenue 872,462 636,632 Provisions 3,689,074 5,832,925 Contract liabilities 2,048,520 1,909,665 Derivative financial instruments 14 811,967 621,462 Total current liabilities 105,967,154 113,932,729 Total liabilities 248,390,066 197,312,083 Total equity and liabilities 491,419,431 431,823,431
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE NINE MONTHS INTERIM PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) The above interim condensed consolidated statement of profit or loss should be read in conjunction with the accompanying notes. 3 Notes 9 months period ended at 30 September 2025 3 months period ended at 30 September 2025 9 months period ended at 30 September 2024 3 months period ended at 30 September 2024 Revenue 4 162,434,767 56,616,270 145,765,066 50,975,986 Revenue from financial services 4 8,760,720 2,919,207 6,979,421 2,570,049 Total revenue 171,195,487 59,535,477 152,744,487 53,546,035- Cost of revenue (116,765,996) (39,911,104) (110,852,903) (37,419,126) Cost of revenue from financial services (5,964,249) (2,210,661) (4,630,938) (1,496,763) Total cost of revenue (122,730,245) (42,121,765) (115,483,841) (38,915,889)- Gross profit 45,668,771 16,705,166 34,912,163 13,556,860 Gross profit from financial services 2,796,471 708,546 2,348,483 1,073,286 Total gross profit 48,465,242 17,413,712 37,260,646 14,630,146- Other income 5 256,859 193,809 170,984 83,855 Selling and marketing expenses (11,339,008) (4,082,962) (9,428,003) (3,384,757) Administrative expenses (7,007,287) (2,604,037) (5,742,138) (2,176,213) Net impairment losses on financial and contract assets (920,365) (368,099) (1,017,200) (335,998) Other expenses 5 (1,520,667) (736,071) (1,058,546) (322,765) Operating profit 27,934,774 9,816,352 20,185,743 8,494,268 Finance income 6 11,599,688 3,982,640 9,647,215 3,710,381 Finance costs 6 (16,409,874) (4,962,053) (19,965,959) (6,204,519) Monetary gain (loss) 6 1,625,556 (355,282) 7,949,252 2,033,990 Net finance costs (3,184,630) (1,334,695) (2,369,492) (460,148)- Share of (loss)/ profit of equity accounted investees 20 (2,687,615) (408,453) (2,090,298) (896,187) Profit before income tax 22,062,529 8,073,204 15,725,953 7,137,933- Income tax (expense)/ benefit 7 (8,449,461) (2,689,766) (4,905,132) (3,052,093) Profit from continuing operations 13,613,068 5,383,438 10,820,821 4,085,840- Profit from discontinued operations 21 (187,403) 14,063 16,565,729 14,948,154- Profit for the year 13,425,665 5,397,501 27,386,550 19,033,994- Profit for the year is attributable to: Owners of the Company 13,425,665 5,397,501 27,397,964 19,034,933 Non-controlling interests - - (11,414) (939) Total 13,425,665 5,397,501 27,386,550 19,033,994 Basic and diluted earnings per share for profit attributable to owners of the Company (in full TL) 6.16 2.48 12.57 8.74 Basic and diluted earnings per share for profit from continuing operations attributable to owners of the Company (in full TL) 6.25 2.47 4.97 1.88 Basic and diluted earnings per share for profit from discontinued operations attributable to owners of the Company (in full TL) (0.09) 0.01 7.60 6.86
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE NINE MONTHS INTERIM PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) The above interim condensed consolidated statement of other comprehensive income should be read in conjunction with the accompanying notes. 4 Notes 9 months period ended at 30 September 2025 3 months period ended at 30 September 2025 9 months period ended at 30 September 2024 3 months period ended at 30 September 2024 Profit for the period 13,425,665 5,397,501 27,386,550 19,033,994 Items that will not be reclassified to profit or loss: Remeasurements of defined termination benefit 3,486 (1,517) 25,431 (628) Income tax relating to remeasurements of defined termination benefit (878) 1,322 (1,132) 568 2,608 (195) 24,299 (60) Other comprehensive income/(expense): Items that may be reclassified to profit or loss: Exchange differences on translation of foreign operations 3,118,202 922,027 (231,591) 1,058,868 Fair value reserve 12 79,686 188,158 187,510 199,357 Cash flow hedges (1,983,790) (228,967) (806,023) (347,823) Cost of hedging reserve 1,174,282 150,026 2,321,649 992,902 Hedges of net investments in foreign operations 1,599,591 578,699 (65,631) (716,302) Income tax relating to these items (223,317) (184,840) 592,135 264,516 - Income tax relating to exchange differences - - - 25,961 - Income tax relating to cash flow hedges 490,070 44,378 (478,080) (153,072) - Income tax relating to cost of hedging reserve (293,568) (37,504) 428,459 95,188 - Income tax relating to fair value reserve 12 (19,921) (47,039) (36,121) (47,164) - Income tax relating to hedges of net investments (399,898) (144,675) 677,877 343,603 3,764,654 1,425,103 1,998,049 1,451,518 Other comprehensive income/(loss) for the year, net of income tax 3,767,262 1,424,908 2,022,348 1,451,458 Total comprehensive income for the year 17,192,927 6,822,409 29,408,898 20,485,452 Total comprehensive income for the year is attributable to: Owners of the Company 17,192,927 6,822,409 29,420,312 20,486,391 Non-controlling interests - - (11,414) (939) Total 17,192,927 6,822,409 29,408,898 20,485,452
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated. ) The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 5 Share capital Treasury shares Additional paid-in capital 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 Reserve of disposal group held for sale Total Non-controlling interests Total equity Balance at 1 January 2024 58,555,826 (1,342,471) 13,912 - 44,768,049 (163,010) (10,024,173) 7,651,426 (13,423,417) (29,832,450) (3,707,371) 157,767,269 11,119,498 221,383,088 (23,459) 221,359,629 Profit/ (loss) for the year - - - - - - - 27,397,964 - 27,397,964 (11,414) 27,386,550 Other comprehensive income, net of income tax - - - - - 151,389 612,246 (1,284,103) 2,750,108 3,476,340 24,299 - (3,707,931) 2,022,348 - 2,022,348 Total comprehensive income - - - - - 151,389 612,246 (1,284,103) 2,750,108 3,476,340 24,299 27,397,964 (3,707,931) 29,420,312 (11,414) 29,408,898 Transfers to legal reserves - - - - 1,058,828 - - - - - - (1,058,828) - - - - Dividend paid - 75,338 - - - - - - - - - (10,406,541) - (10,331,203) - (10,331,203) Transactions with non-controlling interests - - - - - - - - - - - (79,333) - (79,333) 28,681 (50,652) Acquisition of treasury shares (-) - (411,404) - - - - - - - - - - - (411,404) - (411,404) Disposal of subsidiary - - - - - - - - - - - - (7,411,567) (7,411,567) - (7,411,567) Other - - - - - - - - - - - - - - 6,192 6,192 Balance at 30 September 2024 58,555,826 (1,678,537) 13,912 - 45,826,877 (11,621) (9,411,927) 6,367,323 (10,673,309) (26,356,110) (3,683,072) 173,620,531 - 232,569,893 - 232,569,893 Balance at 1 January 2025 58,555,826 (1,665,897) - 52,601 44,032,759 (68,062) (8,488,875) 7,159,556 (12,001,734) (27,861,491) (3,873,895) 178,670,560 - 234,511,348 - 234,511,348 Profit/ (loss) for the year - - - - - - 13,425,665 - 13,425,665 - 13,425,665 Other comprehensive income, net of income tax - - - - 851,273 59,765 1,199,693 (1,493,720) 880,714 3,118,202 2,608 (851,273) - 3,767,262 - 3,767,262 Total comprehensive income - - - - 851,273 59,765 1,199,693 (1,493,720) 880,714 3,118,202 2,608 12,574,392 - 17,192,927 - 17,192,927 Dividend paid (**) - 85,058 - - (656,610) - - - - - - (8,046,372) - (8,617,924) - (8,617,924) Acquisiton of treasury shares - (56,986) - - - - - - - - - - - (56,986) - (56,986) Balance at 30 September 2025 58,555,826 (1,637,825) - 52,601 44,227,422 (8,297) (7,289,182) 5,665,836 (11,121,020) (24,743,289) (3,871,287) 183,198,580 - 243,029,365 - 243,029,365 (*) Included in Reserves in the consolidated statement of financial position. (**) As of 30 September 2025, the first installment of the profit share was paid on 24 June 2025. The accrued liability for the profit shares has been recorded under other liabilities, and the remaining amount will be paid in December.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF CASH FLOWS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) The above interim condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 6 Note 30 September 2025 30 September 2024 Cash flows from operating activities: Profit for the year 13,613,068 10,820,821 Discontinued operations (187,403) 16,565,729 Profit for the year including discontinued operations 13,425,665 27,386,550 Adjustments for: Depreciation and impairment of property, plant and equipment and investment properties 17,674,199 18,371,427 Amortization of intangible assets and right of use assets 9-10 27,981,508 25,894,720 Impairment on property, plant and equipment and intangible asset 8 14,437 16,090 Net finance expense 1,885,499 5,755,217 Fair value adjustments to derivatives (109,141) 3,590,621 Income tax expense 7 8,449,461 5,332,282 Gain on sale of property, plant and equipment 167,993 16,872 Effects of exchange rate changes and inflation adjustments 18,974,461 512,731 Provisions 5,675,734 4,976,071 Share of (profit)/loss of equity accounted investees 2,687,615 2,090,298 Fair value adjustments to financial assets through profit or loss (400,976) (2,000,542) Gain on sale of subsidiary - (11,758,121) Non-cash other adjustments 110,352 108,529 96,536,807 80,292,745 Change in operating assets/liabilities Change in trade receivables (2,200,688) (1,917,917) Change in due from related parties (285,946) 2,130 Change in receivables from financial services 329,942 2,079,112 Change in inventories 27,307 32,541 Change in other current assets 337,823 309,908 Change in other non-current assets (564,463) 323,418 Change in due to related parties (693,851) (735,604) Change in trade and other payables (8,172,593) (14,068,154) Change in other non-current liabilities 40,991 (154,825) Change in employee benefit obligations (307,410) (331,304) Change in short term contract asset 210,064 (868,348) Change in long term contract asset (92,443) (60,773) Change in deferred revenue 269,710 196,199 Change in short term contract liability 138,855 (288,182) Change in long term contract liability (178,265) 380,921 Changes in other working capital (5,397,262) (3,102,798) Cash generated from operations 79,998,578 62,089,069 Interest paid (12,768,448) (10,393,987) Income tax paid (6,215,953) (448,547) Net cash inflow from operating activities 61,014,177 51,246,535 Cash flows from investing activities: Acquisition of property, plant and equipment 8 (26,203,576) (24,231,997) Acquisition of intangible assets 10 (17,290,772) (16,165,331) Proceeds from sale of property, plant and equipment 692,045 1,709,874 Payments for advances given for acquisition of property, plant and equipment (112,826) - Proceeds from sale of subsidiary - 18,287,061 Cash inflows from sale of shares or borrowing instruments of other enterprises or funds 57,756,365 37,391,976 Cash outflows from purchase of shares or borrowing instruments of other enterprises or funds (72,339,067) (49,626,777) Cash inflows from financial assets at fair value through profit or loss 4,267,747 8,113,697 Change in other cash advances given 2,794,296 (1,455,252) Interest received 13,302,123 10,050,322 Net cash outflow from investing activities (37,133,665) (15,926,427) Cash flows from financing activities: Proceeds from derivative instruments 14 3,623,908 3,173,193 Repayments of derivative instruments 14 (4,139,506) (3,869,221) Proceeds from issues of loans and borrowings 69,746,471 49,158,727 Proceeds from issues of bonds 48,088,113 15,321,260 Repayments of borrowings (63,651,668) (42,731,913) Transactions with non controlling interests - (50,652) Repayments of bonds (9,009,969) (13,937,880) Dividends paid to shareholders (4,292,798) - Acquisition of treasury shares (56,986) (411,404) Payments of lease liabilities (6,863,674) (5,265,837) Net cash (outflow)/inflow from financing activities 33,443,891 1,386,273 Net increase in cash and cash equivalents 57,324,403 36,706,381 Cash and cash equivalents at 1 January 86,112,508 97,473,456 Effects of exchange rate changes on cash and cash equivalents and inflation adjustment (21,147,982) (26,900,158) Cash and cash equivalents at 31 September 11 122,288,929 107,279,679
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 7 1. Reporting entity Turkcell Iletisim Hizmetleri Anonim Sirketi (the “Company” or “Turkcell”) was incorporated in Turkiye 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 20 23, the 2G License has been extended to 30 April 2029. As of 30 September 2025, the Company’s shares are listed on Borsa Istanbul A.Ş. (“BIST”) and New York Stock Exchange (“NYSE”). The interim condensed consolidated financial statements of the Company as at and for the nine months ended 30 September 2025 comprise the Company and its subsidiaries (together referred to as the “Group”) and the Group’s interest in an associate. These in terim condensed consolidated financial statements were authorized for issue by the Board of Directors on 6 November 2025. As of 30 September 2025, 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 September 2025, the Group’s immediate shareholder is TVF BTIH, which is wholly owned by Turkiye 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 September 2025. 2. Basis of preparation of financial statements These interim condensed consolidated financial statements for the nine months ended 30 September 2025 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 2024. 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 September 2025 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 September 2025: Annual Index Conversion Factor Cumulative last three years inflation 30 September 2025 3,367.22 1.00000 %222 31 December 2024 2,684.55 1.25430 %291 30 September 2024 2,526.16 1.33294 %343
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 8 2. Basis of preparation of financial statements (continued) New standards and interpretations The accounting policies adopted in preparation of the consolidated financial statements as of 30 September 2025 are consistent with those of the previous financia l year, except for the adoption of new and amended IFRS and IFRIC interpretations effective as of 1 January 2025 and thereafter. The effects of these standards and interpretations on the Group’s financial position and performance have been disclosed in the related paragraphs. i) The new standards, amendments and interpretations which are effective as of 1 January 2024 are as follows: Amendments to IAS 21 - Lack of exchangeability In August 2023, the Board issued amendments to IAS 21. The amendments specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. When an entity estimates a spot exchange rate because a currency is not exchangeable into another currency, it discloses information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity’s financial performance, financial position and cash flows. When applying the amendments, an entity cannot restate comparative information. The Group expects no significant impact on its balance sheet and equity. ii) Standards, amendments and interpretations that are issued but not yet effective: Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the consolidated financial statements are as follows. The Group will make the necessary changes if not indicated otherwise, which will be affecting the consolidated financial statements and disclosures, when the new standards and interpretations become effective. Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture In December 2015, IASB postponed the effective date of this amendment indefinitely pending the outcome of its research project on the equity method of accounting. Early application of the amendments is still permitted. The Group will wait until the final amendment to assess the impacts of the changes.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 9 2. Basis of preparation of financial statements (continued) New standards and interpretations (continued) ii) Standards, amendments and interpretations that are issued but not yet effective: Amendments to IFRS 9 and IFRS 7 – Classification and measurement of financial instruments In May 2024, the Board issued amendments to the classification and measurement of financial instruments (amendments to IFRS 9 and IFRS 7). The amendment clarifies that a financial liability is derecognized on the ‘settlement date’. It also introduces an accounting policy option to derecognize financial liabilities that are settled through an electronic payment system before settlement date if cer tain conditions are met. The amendment also clarified how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features as well as the treatment of non-recourse assets and contractually linked instruments. Additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG -linked), and equity instrumen ts classified at fair value through other comprehensive income are added with the amendment. The amendment will be effective for annual periods beginning on or after 1 January 2026. Entities can early adopt the amendments that relate to the classification of financial assets plus the related disclosures and apply the other amendments later. The new requirements will be applied retrospectively with an adjustment to opening retained earnings. The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group. Annual Improvements to IFRSs – Volume 11 In July 2024, the IASB issued Annual Improvements to IFRS Accounting Standards – Volume 11, amending the followings: - IFRS 1 First-time Adoption of International Financial Reporting Standards – Hedge Accounting by a First-time Adopter: These amendments are intended to address potential confusion arising from an inconsistency between the wording in IFRS 1 and the requirements for hedge accounting in IFRS 9. - IFRS 7 Financial Instruments: Disclosures – Gain or Loss on Derecognition: The amendments update the language on unobservable inputs in the Standard and include a cross reference to IFRS 13. - IFRS 9 Financial Instruments – Lessee Derecognition of Lease Liabilities and Transaction Price: IFRS 9 has been amended to clarify that, when a lessee has determined that a lease liability has been extinguished in accordance with IFRS 9, the lessee is required to apply derecognition requirement of IFRS 9 and recognise any resulting gain or loss in profit or loss. IFRS 9 has been also amended to remove the reference to 'transaction price”. - IFRS 10 Consolidated Financial Statements – Determination of a 'De Facto Agent': The amendments are intended to remove the inconsistencies between IFRS 10 paragraphs. - IAS 7 Statement of Cash Flows – Cost Method: The amendments remove the term of “cost method” following the prior deletion of the definition of 'cost method'. Improvements are effective for annual reporting periods beginning on or after 1 January 2026. Earlier application is permitted for all. The amendments are not expected to have a significant impact on the Group’s consolidated financial statements.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 10 2. Basis of preparation of financial statements (continued) New standards and interpretations (continued) ii) Standards, amendments and interpretations that are issued but not yet effective: Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity In December 2024, the Board issued Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7). The amendment clarifies the application of the “own use” requirements and permits hedge accounting if these contracts are used as hedging instruments. The amendment also adds new disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance and cash flows. The amendment will be effective for annual periods beginning on or after 1 January 2026. Early adoption is permitted but will need to be disclosed. The clarifications regarding the ‘own use’ requirements must be applied retrospectively, but the guidance permitting hedge accounting have to be applied prospectively to new hedging relationships designated on or after the date of initial application. The Group expects no significant impact on its balance sheet and equity. IFRS 18 – The new Standard for Presentation and Disclosure in Financial Statements In April 2024, IASB issued IFRS 18 which replaces IAS 1. IFRS 18 introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. IFRS 18 requires an entity to classify all income and expenses within its statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information based on the identified ‘roles’ of the primary financial statements and the notes. In addition, there are consequential amendments to other accounting standards, such as IAS 7, IAS 8 and IAS 34. IFRS 18 and the related amendments are effective for reporting periods beginning on or after 1 January 2027, but earlier application is permitted. IFRS 18 will be applied retrospectively. 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 In May 2024, the Board issued IFRS 19, which allows eligible entities to elect to apply reduced disclosure requirements while still applying the recognition, measurement and presentation requirements in other IFRS accounting standards. Unless otherwise specified, eligible entities that elect to apply IFRS 19 will not need to apply the disclosure requirements in other IFRS accounting standards. An entity that is a subsidiary, does not have public accountability and has a parent (either ultimate or intermediate) which prepares consolidated financial statements, available for public use, which comply with IFRS accounting standards may elect to apply IFRS 19. IFRS 19 is effective for reporting periods beginning on or after 1 January 2027 and earlier adoption is permitted. If an eligible entity chooses to apply the standard earlier, it is required to disclose that fact. An entity is required, during the first period (annual and interim) in which it applies the standard, to align the disclosures in the comparative period with the disclosures included in the current period under IFRS 19. The standard is not applicable for the Group.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 11 2. Basis of preparation of financial statements (continued) 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. The Group had divided its main operating segments into three groups: Turkcell Tür kiye, Turkcell International, and Techfin, within the framework of a strategy to provide integrated communication and technology services, ensuring economic integrity. Management has re-evaluated the operating segments and decided, as of 31 March 2025, to separate the existing operating segments into two groups: Turkcell Türkiye and Techfin. After sales of assets in Ukraine, the companies in the Turkcell International segment have been classified to the Other. The other operations of Turkcell Satış, where c onsumer electronics sold through digital channels, smart device management operations, and retail channel operations are conducted, was reported under the Other. Since these activities are regularly reviewed by central management through integrated channel management, along with integrated corporate business solutions, city hospitals, hardware, and corporate terminal operations, all operations of Turkcell Satış have been reclassified under the reportable segment of Turkcell Türkiye as of 31 March 2025. As of 30 September 2024, the presented comparative information has been reclassified to ensure consistency with the current period presentation (Note 3). The changes in classifications do not affect the operating profit, period profit, and cash flow statement. At the end of 2024, the Group reassessed the presentation of the other comprehensive income statement based on the disclosed reasons and concluded that combining the lines showing similar nature movements would provide a more appropriate presentation. The Group continued with the same presentation in the comparative financial statements as of 30 September 2025, and foreign currency translation differences, cash flow hedge gains/losses, and changes in the time value of options have started to be presented ne t in the consolidated other comprehensive income statement, including comparative periods. Reclassified amounts are disclosed in the related notes.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 12 3 Segment information As part of its strategy to offer integrated communication and t echnology 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 mob ile, fixed telecom, digital services and digital business services operations of Turkcell, Turkcell Superonline Iletisim Hizmetleri A.S. (“Turkcell Superonline”), Turkcell Satış A.S’s (“Turkcell Sat ış”), Turkcell Dijital Is Servisleri A.S. (“Turkcell Dijit al”), 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”), Turkc ell 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”), Rehberlik Hizmetleri Servisi A.S. (“Rehberlik”), Turkcell Gayrimenkul Hizmetleri A.S. (“Turkcell Gayrimenkul”), Lifecell Dijital Servisler ve Cozumler A.S. (“Lifecell Dijital Servisler”), Lifecell Bulut Cozumleri A.S. (“Lifecell Bulut”), Lifecell TV Yayin ve Icerik Hizmetleri A.S. (“Lifecell TV”), Lifecell Müzik Yayin ve Iletim A.S. (“Lifecell M üzik”), BiP Iletisim Teknolojileri ve Dijital Servisler A.S. (“BiP A.S.”), TDC Veri Hizmetleri A.Ş (“TDC”) and Artel Bilişim Servisleri A.Ş (“Artel”) Techfin reportable segment includes all financial services operations of Turkcell Finansman A.Ş (“Turkcell Finansman”), Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş. (“Turkcell Ödeme”),Paycell LLC(“Paycell LLC”), Paycell Europe GmbH (“Paycell Europe”), Turkcell Sigorta Aracılık Hizmetleri A.Ş. (“Turkcell Sigorta ”), Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş (“Sofra”), Turkcell Dijital Teknolojileri Limited (“Turkcell Dijital Teknoloji”), and Turkcell Dijital Sigorta A.Ş. (“ 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 similar economic characteristics. Other reportable segment mainly comprises of non -group call center operations of CJSC Belarusian Telecommunications Network (“BeST”), K ıbrıs Mobile Tele komunikasyon Limited Sirketi (“K ıbrıs Telekom”), East Asian Consortium B.V. (“Eastasia”), 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.Ş. (“Turkcell Enerji”) , Boyut Grup Enerji Elektrik Üretim ve İnşaat Sanayi ve Ticaret A.Ş. (“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, selling a nd marketing expenses , administrative expenses cost of revenue excluding depreciation and amortization. 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.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated. ) 13 3. Segment information (continued) 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Total segment revenue 155,892,478 139,800,516 9,675,376 7,769,657 10,451,838 7,954,075 (4,824,205) (2,779,761) 171,195,487 152,744,487 Inter-segment revenue (818,788) (962,225) (915,596) (790,326) (3,089,821) (1,027,210) 4,824,205 2,779,761 - - Revenues from external customers 155,073,690 138,838,291 8,759,780 6,979,331 7,362,017 6,926,865 - - 171,195,487 152,744,487 Adjusted EBITDA 70,952,807 62,149,141 2,354,922 2,013,441 1,960,108 1,542,125 (399,107) (349,162) 74,868,730 65,355,545 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Total segment revenue 54,454,014 48,992,360 3,410,231 2,841,390 3,545,705 2,654,318 (1,874,473) (942,033) 59,535,477 53,546,035 Inter-segment revenue (254,601) (296,462) (491,964) (271,430) (1,127,908) (374,141) 1,874,473 942,033 - - Revenues from external customers 54,199,413 48,695,898 2,918,267 2,569,960 2,417,797 2,280,177 - - 59,535,477 53,546,035 Adjusted EBITDA 24,871,247 22,342,005 748,407 793,175 742,911 662,054 (197,478) (128,391) 26,165,087 23,668,843 ConsolidatedTurkcell Turkiye Techfin Other Intersegment Eliminations Turkcell Turkiye Techfin Other Intersegment Eliminations Consolidated Nine months ended 30 September 2025 Three months ended 30 September 2025
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 14 3. Segment information (continued) 9 months period ended at 30 September 2025 3 months period ended at 30 September 2025 9 months period ended at 30 September 2024 3 months period ended at 30 September 2024 Profit from continuing operations 13,613,068 5,383,438 10,820,821 4,085,840 Add/(Less): Income tax expense 8,449,461 2,689,766 4,905,132 3,052,093 Finance income (11,599,688) (3,982,640) (9,647,215) (3,710,381) Finance costs 16,409,874 4,962,053 19,965,959 6,204,519 Other income (256,859) (193,809) (170,984) (83,855) Other expenses 1,520,667 736,071 1,058,546 322,765 Monetary (gain) loss (1,625,556) 355,282 (7,949,252) (2,033,990) Depreciation and amortization 45,670,148 15,806,473 44,282,240 14,935,665 Share of loss/(gain) of equity accounted investees 2,687,615 408,453 2,090,298 896,187 Consolidated adjusted EBITDA 74,868,730 26,165,087 65,355,545 23,668,843
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated. ) 15 4. Revenue 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Telecommunication services 142,294,470 126,834,762 - - 3,912,971 3,450,615 (138,028) (223,666) 146,069,413 130,061,711 Equipment revenues 11,965,366 10,932,638 - - 241,440 191,265 (11,949) (13,910) 12,194,857 11,109,993 Revenue from financial services - - 9,675,376 7,769,657 - - (914,656) (790,236) 8,760,720 6,979,421 Other 1,632,642 2,033,116 - - 6,297,427 4,312,195 (3,759,572) (1,751,949) 4,170,497 4,593,362 Total 155,892,478 139,800,516 9,675,376 7,769,657 10,451,838 7,954,075 (4,824,205) (2,779,761) 171,195,487 152,744,487 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Telecommunication services 50,018,278 44,723,939 - - 1,313,449 1,165,587 (48,943) (57,677) 51,282,784 45,831,849 Equipment revenues 3,900,596 3,622,324 - - 77,559 42,424 - (4,496) 3,978,155 3,660,252 Revenue from financial services - - 3,410,231 2,841,390 - - (491,024) (271,341) 2,919,207 2,570,049 Other 535,140 646,097 - - 2,154,697 1,446,307 (1,334,506) (608,519) 1,355,331 1,483,885 Total 54,454,014 48,992,360 3,410,231 2,841,390 3,545,705 2,654,318 (1,874,473) (942,033) 59,535,477 53,546,035 Three months ended 30 September 2025 Consolidated Consolidated Turkcell Turkiye Techfin Other Intersegment Eliminations Turkcell Turkiye Techfin Other Intersegment Eliminations Nine months ended 30 September 2025 Revenue from financial services comprise of interest income generated from consu mer financing activities, The Group has interest income amounting to TRY 3,951,358 (2024:3,867,908) and TRY 2,450,422 (2024: TRY 2,301,555) as of 9 months and 3 months period ended at 30 September 2025 respectively.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 16 4. Revenue (continued) Turkcell Turkiye Techfin Other Intersegment eliminations Consolidated Telecommunication Services 142,294,470 - 3,912,971 (138,028) 146,069,413 At a point in time 1,129,259 - 5,841 - 1,135,100 Over time 141,165,211 - 3,907,130 (138,028) 144,934,313 Equipment Related 11,965,366 - 241,440 (11,949) 12,194,857 At a point in time 11,320,335 - 241,440 (11,949) 11,549,826 Over time 645,031 - - - 645,031 Revenue from financial operations - 9,675,376 - (914,656) 8,760,720 At a point in time - 5,629,361 - (885,597) 4,743,764 Over time - 4,046,015 - (29,059) 4,016,956 Other 1,632,642 - 6,297,427 (3,759,572) 4,170,497 At a point in time 291,838 - 4,218 (811) 295,245 Over time 1,340,804 - 6,293,209 (3,758,761) 3,875,252 Total 155,892,478 9,675,376 10,451,838 (4,824,205) 171,195,487 At a point in time 12,741,432 5,629,361 251,499 (898,357) 17,723,935 Over time 143,151,046 4,046,015 10,200,339 (3,925,848) 153,471,552 30 September 2025 Turkcell Turkiye Techfin Other Intersegment eliminations Consolidated Telecommunication Services 126,834,762 - 3,450,615 (223,666) 130,061,711 At a point in time 3,398,224 - 5,689 - 3,403,913 Over time 123,436,538 - 3,444,926 (223,666) 126,657,798 Equipment Related 10,932,638 - 191,265 (13,910) 11,109,993 At a point in time 10,374,216 - 191,265 (13,910) 10,551,571 Over time 558,422 - - - 558,422 Revenue from financial operations - 7,769,657 - (790,236) 6,979,421 At a point in time - 3,790,166 - (722,384) 3,067,782 Over time - 3,979,491 - (67,852) 3,911,639 Other 2,033,116 - 4,312,195 (1,751,949) 4,593,362 At a point in time 337,587 - 48,040 (4,580) 381,047 Over time 1,695,529 - 4,264,155 (1,747,369) 4,212,315 Total 139,800,516 7,769,657 7,954,075 (2,779,761) 152,744,487 At a point in time 14,110,027 3,790,166 244,994 (740,874) 17,404,313 Over time 125,690,489 3,979,491 7,709,081 (2,038,887) 135,340,174 30 September 2024
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 17 5. Other income and expense Recognized in the statement of profit or loss: 9 months period ended at 30 September 2025 3 months period ended at 30 September 2025 9 months period ended at 30 September 2024 3 months period ended at 30 September 2024 Depositary reimbursement 49,784 49,784 7,903 6,326 Insurance compensation 61,700 61,700 - - Rent income 11,644 3,408 11,306 1,709 Other 133,731 78,917 151,775 75,820 Other income 256,859 193,809 170,984 83,855 Donation expenses (691,589) (335,496) (477,302) (42,088) Litigation expenses (255,587) (109,448) (136,918) (60,655) Loss on cancellation of lease contract (144,130) (53,677) (233,673) (137,939) Loss on sale of fixed assets (167,993) (167,993) (17,860) (5,699) Restructuring cost (16,226) (1,756) (25,488) 2,184 Other (245,142) (67,701) (167,305) (78,568) Other expense (1,520,667) (736,071) (1,058,546) (322,765)
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 18 6. Finance income and costs Recognized in the statement of profit or loss: 9 months period ended at 30 September 2025 3 months period ended at 30 September 2025 9 months period ended at 30 September 2024 3 months period ended at 30 September 2024 Interest income 7,369,894 2,529,994 6,750,969 2,614,430 Income from financial assets carried at fair value 400,976 (588) 2,000,542 604,451 Cash flow hedges – reclassified to profit or loss (*) 159,572 159,572 - - Net fair value gains on derivative financial instruments and interest 187,297 187,297 - - Other 3,481,949 1,106,365 895,704 491,500 Finance income 11,599,688 3,982,640 9,647,215 3,710,381 Net foreign exchange losses (5,530,258) (3,407,175) (7,416,989) (2,109,106) Net interest expenses for financial assets and liabilities measured at amortized cost (10,763,585) (3,155,390) (11,025,364) (3,859,565) Net fair value losses on derivative financial instruments and interest - 1,749,123 (4,571,125) 578,814 Cash flow hedges – reclassified to profit or loss (*) - (124,176) 3,096,931 (817,215) Other (116,031) (24,435) (49,412) 2,553 Finance costs (16,409,874) (4,962,053) (19,965,959) (6,204,519) Monetary gain (loss) 1,625,556 (355,282) 7,949,252 2,033,990 Net finance costs (3,184,630) (1,334,695) (2,369,492) (460,148) (*) As of 30 September 2025, the Group has a cash flow hedge gain of TRY 159,572 recognized in the statement of profit or loss (30 September 2024: TRY 3,791,467). As of 30 September 2025, there is no reclassification adjustment related to hedge losses on the time value of options (30 September 2024: TRY (694,535)). 7. Income tax expense The corporate tax rate in Türkiye is 25% for companies (30 September 2024: 25%), 30% for banks (30 September 2024: 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. 9 months period ended at 30 September 2025 3 months period ended at 30 September 2025 9 months period ended at 30 September 2024 3 months period ended at 30 September 2024 Current income tax expense (6,214,429) (1,562,115) (2,207,810) (1,974,901) Deferred income tax expense (2,235,032) (1,127,651) (2,697,322) (1,077,192) Total income tax expense (8,449,461) (2,689,766) (4,905,132) (3,052,093)
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated. ) 19 8. Property, plant and equipment Cost Balance at 1 January 2025 Additions Disposals Transfers Asset Held for Sale Impairment expenses/ (reversals) Effects of movements in exchange rates Balance at 30 September 2025 Network infrastructure (All operational) 344,707,281 6,724,002 (2,936,167) 12,210,242 - - 510,713 361,216,071 Land and buildings 26,264,275 1,721,754 (3,865) 2,925,735 112,826 - (165,445) 30,855,280 Equipment, fixtures and fittings 22,663,597 1,965,347 (200,230) 163,103 - - (515,494) 24,076,323 Motor vehicles 319,458 6,310 (10,676) - - - 2,019 317,111 Leasehold improvements 6,972,726 94,507 (497) - - - 12 7,066,748 Electricity production power plant 619,882 21 - - - - - 619,903 Construction in progress 6,292,257 15,722,357 (125,519) (15,308,055) - - 69,315 6,650,355 Total 407,839,476 26,234,298 (3,276,954) (8,975) 112,826 - (98,880) 430,801,791 Accumulated depreciation Network infrastructure (All operational) 240,899,701 15,270,086 (2,404,167) - - 14,437 694,897 254,474,954 Land and buildings 5,992,607 925,788 - - - - (71,440) 6,846,955 Equipment, fixtures and fittings 22,625,759 1,342,119 (84,049) - - - (1,556,043) 22,327,786 Motor vehicles 273,489 15,943 (9,637) - - - 1,929 281,724 Leasehold improvements 6,710,786 69,712 - - - - (3,931) 6,776,567 Electricity production power plant 105,495 23,297 - - - - - 128,792 Total 276,607,837 17,646,945 (2,497,853) - - 14,437 (934,588) 290,836,778 Net book value 131,231,639 8,587,353 (779,101) (8,975) 112,826 (14,437) 835,708 139,965,013 Depreciation expense for the nine months ended 30 September 2025 amounting to TRY 17,661,382 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 nine months period ended 30 September 2025 is TRY 14,437 and are recognized within depreciation expenses.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated. ) 20 9. Intangible assets Cost Balance at 1 January 2025 Additions Disposals Transfers Impairment expenses/ (reversals) Effects of movements in exchange rates Balance at 30 September 2025 Telecommunication licenses 123,640,136 229,274 - - - (38,161) 123,831,249 Computer software 202,439,281 9,126,022 (129,651) 384,791 - 1,646,578 213,467,021 Transmission line software 1,929,857 594 - - - 9,864 1,940,315 Indefeasible right of usage 1,978,088 3,629 - - - 7 1,981,724 Brand name 15,233 - - - - 842 16,075 Customer base 62,315 - - - - (3,876) 58,439 Goodwill 738,734 - - - - - 738,734 Subscriber acquisition cost 79,426,998 7,418,244 - - - 613,562 87,458,804 Electricity production license 1,092,620 - - - - 3 1,092,623 Others 2,650,910 201,530 (9,534) - - (15,151) 2,827,755 Construction in progress 456,586 311,479 - (375,816) - 1,506 393,755 Total 414,430,758 17,290,772 (139,185) 8,975 - 2,215,174 433,806,494 Accumulated amortization Telecommunication licenses 94,400,543 5,333,611 - - - 687,495 100,421,649 Computer software 156,424,168 9,119,744 (29,659) (117,361) - 247,288 165,644,180 Transmission line software 1,946,618 4,013 - - - (10,333) 1,940,298 Indefeasible right of usage 1,254,645 36,253 - - - 457 1,291,355 Brand name 3,481 - - - - 6,390 9,871 Customer base 32,590 328 - - - 8,615 41,533 Subscriber acquisition cost 55,715,171 7,552,516 - - - 4,004 63,271,691 Electricity production license 172,299 41,170 - - - 11,955 225,424 Others 1,789,082 285,907 (9,519) 117,361 - (933) 2,181,898 Total 311,738,597 22,373,542 (39,178) - - 954,938 335,027,899 Net book value 102,692,161 (5,082,770) (100,007) 8,975 - 1,260,236 98,778,595 Amortization expenses for the nine months ended 3 0 September 2025 amounting to TRY 22,373,542 include impairment losses and are recognized in cost of revenue. There is no i mpairment losses on intangible assets for the nine months ended 30 September 2025. 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 3,121,183 for the nine months interim period ending 30 September 2025.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated. ) 21 10. Right-of-use assets Closing balances of right of use assets as of 30 September 2025 and depreciation and amortization expenses for the related period is stated as below: Site Rent Building Network equipment Vehicles Right of way License Other Total Balance at 1 January 2025 6,542,657 2,371,503 315,202 1,982,757 900,620 36,031 612,276 12,761,046 Depreciation and amortization charge for the year (2,219,374) (427,467) (1,190,944) (532,013) (775,005) (125,296) (337,867) (5,607,966) Balance at 30 September 2025 6,803,746 2,709,467 776,874 1,643,043 9,893,416 63,020 597,107 22,486,673 As at 30 September 2025, the Company has additions to right-of-use assets amounting to TRY 15,634,851 and interest expense on lease liabilities amounting to TRY 2,116,199. Depreciation and amortization expenses amounting to TRY 5,607,966 are recognized in cost of revenues.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 22 11. Cash and cash equivalents 30 September 2025 31 December 2024 Cash in hand 513 622 Banks 97,335,427 79,862,332 - Demand deposits 7,347,497 5,777,509 - Time deposits 37,158,420 58,564,210 - Receivables from reverse repo 52,829,510 15,520,613 Impairment loss provision (32,662) (12,278) Other (*) 25,043,464 6,613,374 122,346,742 86,464,050 (*) It consists of US Treasury Bills and money market funds with a maturity of less than 90 days from the acquisition date. As of 30 September 2025, the average effective interest rates of TRY, USD, EUR and RMB time deposits are 40%, 3.1%, 2.2% and 0.3% (31 December 2024: 47.4%, 2.7%, 2.7% and 0.3%) respectively. As of 30 September 2025, average maturity of time deposits is 31 days (31 December 2024: 35 days). Reconciliation of cash and cash equivalents in consolidated statement of cash flows: 30 September 2025 30 September 2024 Cash and cash equivalents 122,346,742 107,979,695 Interest accrual of cash and cash equivalents (57,813) (700,016) Total 122,288,929 107,279,679
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 23 12. Financial assets The details of financial assets as of 30 September 2025 and 31 December 2024 are as follows: Non-current Current Non-current Current Fair value through profit or loss 3,268,555 3,722,704 7,477,775 4,482,462 - Currency protected time deposits - - - 4,482,462 - Investment funds (*) 3,268,555 2,657,352 7,477,775 - - Gold deposits - 1,065,352 - - Fair value through other comprehensive income 21,192,801 10,412,187 14,866,130 2,811,415 - Listed debt securities (**) 21,192,801 10,412,187 14,866,130 2,811,415 Amortized cost - 483,031 - 1,336,953 - Time deposits with maturity of more than three months - 483,031 - 1,336,953 24,461,356 14,617,922 22,343,905 8,630,830 30 September 2025 31 December 2024 (*) 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. 30 September 2025 31 December 2024 Fair value hierarchy Valuation technique Financial assets at fair value through other comprehensive income 31,604,988 17,677,545 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 6,260,360 6,807,691 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 - 4,482,462 Level 2 Forward exchange rates at the reporting date Financial assets at fair value through profit or loss 730,899 670,084 Level 3 Pricing models based on discounted cash flow 38,596,247 29,637,782 Fair Values The movement of the financial assets which is shown in Level 3 are as follows: 30 September 30 September 2025 2024 Opening balance 670,084 831,544 Addition 63,400 53,610 Remeasurement recognised in profit or loss (2,585) (172,201) Closing balance 730,899 712,953 During the year, the following gains (losses) were recognized in other comprehensive income. 9 months period ended at 30 September 2025 3 months period ended at 30 September 2025 9 months period ended at 30 September 2024 3 months period ended at 30 September 2024 Gains / (Losses) recognized in other comprehensive income Related to financial assets 79,686 188,158 187,510 199,357 Related to financial assets, tax effect (19,921) (47,039) (36,121) (47,164) 59,765 141,119 151,389 152,193
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 24 13. Loans and borrowings Long-term borrowings 30 September 2025 31 December 2024 Unsecured bank loans 36,088,860 32,104,272 Secured bank loans 11,724,130 8,278,759 Lease liabilities 12,121,905 4,738,267 Debt securities issued 58,686,679 20,647,911 118,621,574 65,769,209 Short-term borrowings 30 September 2025 31 December 2024 Unsecured bank loans 30,753,802 36,352,107 Secured bank loans 1,625,409 1,533,066 Lease liabilities 3,062,161 1,310,605 Debt securities issued 27,217,899 25,908,569 62,659,271 65,104,347 The sale process of the conventional bond issuance of the Company with a nominal amount of USD 500,000, 5-year maturity, a redem ption date of 24 January 2030, a fixed annual coupon rate of 7.45%, and a sales price of 100% of the nominal value, to qualified investors abroad was completed on 24 January 2025. The subscription agreement for the issuance was signed on 22 January 2025. The sale process of the sustainable bond issuance of the Company with a nominal amount of USD 500,000, 7-year maturity, a redemption date of 24 January 2032, a fixed annual coupon rate of 7.65%, and a sales price of 100% of the nominal value, to qualified investors abroad was completed on 24 January 2025. The subscription agreement for the issuance was signed on 22 January 2025. The bond issued in 2015 with a nominal amount of USD 500,000 and a maturity of 10 years was redeemed in full upon its maturity on 15 October 2025, and the related liability has been fully settled. Within the issuance limit of TRY 8,000,000 approved by the Capital Markets Board, the Company completed the sale of a financing bond with a nominal value of TRY 230,000, maturing on 2 July 2025, bearing an annual simple interest rate of 46.00%, to qualified investors within Türkiye without a public offering, and the securities were transferred to the investor accounts on 27 March 2025. Within the same issuance limit, the Company also completed, on 9 May 2025, the sale of a financing bond with a nominal value of TRY 900,000, maturing on 13 August 2025, bearing an annual simple interest rate of 49.75%, and the securities were transferred to the investor accounts on the same date. Within the framework of the capital markets legislation, Turkcell İletişim Hizmetleri A.Ş. obtained, on 13 June 2025, a new approval from the Capital Markets Board for a period of one year to issue financing bonds in Turkish Lira, up to a total nominal amount of TRY 10 ,000,000, to be sold domestically to qualified investors and/or through private placements, without a public offering, in different tranches and at different dates. Within the issuance limit approved by the Capital Markets Board, the Company completed, on 13 August 2025, the sale of a financing bond with a nominal value of TRY 1,500 ,000, maturing on 20 November 2025, bearing an annual simple interest rate of 41.50%, to qualified investors within Türkiye without a public offering. Following this transaction, TRY 8,500,000 of the TRY 10,000 ,000 total issuance limit approved by the Capital Markets Board on 13 June 2025 remains available for future issuances. The Company has used a loan in accordance with the loan agreement previously signed with Development Investment Bank of Türkiye on 23 September 2024, under this agreement, the Company has used EUR 18,500 loan on 5 February 2025 with an interest rate of 6M Euribor+2%.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 25 13. Loans and borrowings (continued) The Company has used a loan in accordance with the loan agreement previously signed with China Development Bank on 30 September 2024, under this agreement, the Company has used RMB 103,000 loan on March 13, 2025 with an interest rate of 4.01%. The Company has used RMB 196,000 loan on 16 May 2025 with an interest rate of 4.01%. The Company has used RMB 142,000 loan on 20 June 2025 with an interest rate of 4.01%. The Company has used RMB 151,130 loan on 20 August 2 025 with an interest rate of 4.01%. The Company has used a loan in accordance with the loan agreement previously signed with HSBC Bank Middle East Limited and AB Svensk Exportkredit under the insurance of the Swedish Export Credit Agency (“EKN”) on 25 July 2024, under this agreement, the Company has used EUR 33,167 loan on 28 March 2025 with an interest rate of 6M Euribor+0.67%. In accordance with the loan agreement signed with Dubai Islamic Bank on 12 May 2025, the Company received a Murabaha financing facility amounting to USD 150,000 on 13 May 2025, with a maturity of five years. The Company has used a loan in accordance with the general loan agreement previously signed with Citibank A.Ş.; under this agreement, the Company has used a TRY 500,000 loan on J une 4, 2025, with an interest rate of 46%, maturing on 4 August 2025. The Company has used a TRY 200,000 loan on 28 July 2025, with an interest rate of 43,80%, maturing on 19 September 2025. Turkcell Superonline obtained approval from the CMB on 7 August 2 025, for the issuance of Sukuk up to 3,000,000 TRY. Within the scope of this approval which is valid for one year, Sukuk, worth TRY 500,000, was issued in August 2025 with maturity in November 2025. During the third quarter of 2025, Turkcell Ödeme issued lease certificates amounting to TRY 500,000 on 26 September 2025, with a maturity date of 25 December 2025. Furthermore, within the same year, lease certificates totaling TRY 200,000 on March 13 and TRY 350,000 on June 26 were issued, maturing on 1 July and 26 September 2025, respectively. As of 30 September 2025, the remaining issuance limit stood at TRY 1,500,000. Turkcell Finansman, within the issuance limit of TRY 1,500,000 approved by the Capital Markets Board, issued a total of 300,000 Sukuk Certificates on 8 May 2025, with a maturity date of 7 August 2025; and a total of TRY 500,000 Sukuk Certificates on 25 June 2025, with a maturity date of 18 September 2025; and a total of TRY 200,000 Sukuk Certificates on 7 August 2025, with a maturity date of 6 No vember 2025. Additionally, on August 7, 2025, Turkcell Finansman obtained a new approval from the Capital Markets Board for a one-year period to issue Sukuk certificates in Turkish Lira, up to TRY 2,500,000, to be sold domestically through private placement and/or to qualified investors, without a public offering, in different amounts and at different times under the capital markets regulations. Under this approval, Sukuk certificates amounting to TRY 260,500, with a maturity date of 18 December 2025, were issued on 18 September 2025, issuance limit remained from this TRY 2,239,500. TDC secured a murabaha financing facility amounting to EUR 100,000 with a final maturity of five years on 26 May 2025, pursuant to the loan agreement executed with Emirates NBD Bank on 16 May 2025.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated. ) 26 13. Loans and borrowings (continued) Terms and conditions of outstanding loans are as follows: Currency Interest rate type Payment period Nominal interest rate Carrying amount Payment period Nominal interest rate Carrying amount Unsecured Bank Loans EUR Floating 2025-2030 Euribor+2.0%-Euribor+4.0% 41,612,436 2025-2030 Euribor+2.0%-Euribor+4.0% 40,077,222 Unsecured Bank Loans TRY Fixed 2025-2026 38.8% - 45.5% 10,070,376 2025-2027 24.4%-67.3% 18,085,766 Unsecured Bank Loans USD Floating 2025-2030 SOFR + 2.0% -SOFR + 2.2% 11,328,231 2026-2029 Sofr+ 2.2% 6,411,513 Unsecured Bank Loans CNY Fixed 2025-2034 5.1% - 5.5% 2,974,379 2026-2028 5.2%-5.5% 3,223,708 Unsecured Bank Loans EUR Fixed 2025 5.0% 508,506 2025 5% 464,258 Unsecured Bank Loans USD Fixed 2025-2026 2.5% 105,111 2026 2.6% 193,912 Unsecured Bank Loans TRY Floating 2025-2027 TLREF+2.0% 243,623 - - - Secured bank loans USD Fixed 2025-2033 1.5% - 3.8% 4,321,682 2029-2033 1.5%-3.8% 5,196,025 Secured bank loans USD Floating 2025-2028 SOFR + 0.6% -SOFR + 1.6% 683,858 2026-2028 Sofr+0.6% - Sofr+1.6% 988,963 Secured bank loans EUR Floating 2025-2037 EURIBOR+0.7% 2,897,947 2036 Euribor+0.7% 1,411,110 Secured bank loans CNY Fixed 2025-2034 4.0% 5,446,052 2034 4.0% 2,215,727 Debt securities issued USD Fixed 2025-2031 5.8% - 7.7% 82,823,316 2025-2028 5.8% 42,789,131 Debt securities issued TRY Fixed 2025 39.0%-41.5% 3,081,262 2025 42.0%-49.5% 3,767,349 Lease liabilities TRY Fixed 2025-2070 7.5%-62.3% 5,266,668 2025-2069 7.5%-62.3% 4,966,778 Lease liabilities EUR Fixed 2025-2034 2.9%-10.3% 449,185 2025-2034 2.9%-10.3% 439,461 Lease liabilities BYN Fixed 2025-2028 10.8%-20.0% 739,891 2025-2028 10.8%-20.0% 583,053 Lease liabilities USD Fixed 2025-2052 4.0%-11.6% 8,728,322 2025-2037 4.0 %-11.6% 59,580 181,280,845 130,873,556 30 September 2025 31 December 2024
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 27 14. Derivative financial instruments The f air value of d erivative financial instruments at 30 September 2025 and 31 December 202 4 are attributable to the following: Assets Liabilities Assets Liabilities Held for trading 2,542,282 (820,942) 2,463,845 (628,807) Net interest accrual income/ expense 133,129 8,975 98,822 7,345 2,675,411 (811,967) 2,562,667 (621,462) 30 September 2025 31 December 2024 Held for trading The notional amount and the fair value of derivative s used held for trading contracts at 30 September 2025 and 31 December 2024 are as follows: Currency Notional amount Currency Notional amount Fair value Maturity Cross currency swap contracts TRY 7,730 USD 1,000 34,004 November 2025 TRY 30,024 CNY 47,189 147,539 April 2026 EUR 84,980 USD 100,000 46,945 January 2032 Currency Forward Contracts USD 221,000 TRY 10,569,430 611,000 October 2025 - April 2026 EUR 10,000 TRY 534,373 28,502 November 2025 Participating cross currency swap contracts TRY 525,281 EUR 94,208 778,612 October 2025 - April 2026 TRY 376,193 USD 64,498 354,491 November 2025 - April 2026 Interest swap contracts USD 585,972 USD 585,972 541,189 April 2026 - April 2033 Total derivative financial assets held for trading 2,542,282 30 September 2025 Sell Buy Currency Notional amount Currency Notional amount Fair value Maturity Cross currency swap contracts EUR 86,022 USD 100,000 (19,756) January 2032 Currency Forward Contracts TRY 25,879,105 USD 591,000 (597,651) October 2025 - April 2026 Currency Swap TRY 5,870,333 USD 130,000 (28,800) January 2026 Participating cross currency swap contracts TRY 55,391 EUR 12,048 (132,256) April 2026 Options contracts TRY 500,000 EUR 10,000 (8,123) November 2025 TRY 470,000 USD 10,000 (34,356) December 2025 Total derivative financial liabilities held for trading (820,942) Buy 30 September 2025 Sell
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 28 14. Derivative financial instruments (continued) Held for trading (continued) Currency Notional amount Currency Notional amount Fair value Maturity Cross currency swap contracts TRY 30,920 USD 4,000 142,542 November 2025 TRY 43,386 CNY 67,141 343,609 April 2026 Currency Forward Contracts USD 107,500 TRY 5,101,275 356,051 February 2025 - December 2025 EUR 10,000 TRY 534,373 43,267 November 2025 Currency Swap EUR 22,343 CNY 170,006 40,385 February 2025 Participating cross currency swap contracts TRY 756,826 EUR 136,499 837,839 October 2025 - April 2026 TRY 547,821 USD 91,894 607,541 November 2025 - April 2026 Interest swap contracts USD 82,171 USD 82,171 92,611 April 2026 - April 2033 Total derivative financial assets held for trading 2,463,845 31 December 2024 Sell Buy Currency Notional amount Currency Notional amount Fair value Maturity Currency Forward Contracts TRY 11,900,200 USD 297,500 (432,922) January 2025 - December 2025 Currency Swap USD 16,750 CNY 120,943 (7,425) February 2025 USD 10,822 EUR 10,103 (12,039) January 2025 Participating cross currency swap contracts TRY 92,134 EUR 20,040 (131,316) April 2026 Options contracts TRY 500,000 EUR 10,000 (44,265) November 2025 Interest swap contracts USD 26,740 USD 26,740 (840) April 2026 Total derivative financial liabilities held for trading (628,807) 31 December 2024 Sell Buy
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 29 14. Derivative financial instruments (continued) Fair value of derivative instruments and risk management Fair value This section explains the judgments and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value in the financial statements. To provide an indication of the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level is as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; • Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and • Level 3 inputs are unobservable inputs for the asset or liability. Fair Value hierarchy Valuation Technique a) Participating cross currency swap contracts Level 2 Pricing models based on discounted cash present value of the estimated future cash flows based on observable yield curves b) FX swap, currency, interest swap and option contracts Level 2 Present value of the estimated future cash flows based on observable yield curves c) Currency forward contracts Level 2 Forward exchange rates at the balance sheet date
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 30 15. Financial instruments Impairment losses Movements in the provision for trade receivables, contract assets, other assets and due from related parties are as follows: Contract Assets Trade Receivable & Other Assets Opening balance 6,852 826,526 Provision for impairment recognized during the year 3,182 1,217,838 Amounts collected - (503,563) Receivables written off during the year as uncollectible - (573,074) Receivables transferred with receivables transfer contract - (382) Effect of changes in exchange rates - 55,405 Inflation adjustment (1,657) (184,480) Closing balance 8,377 838,270 30 September 2025 Contract Assets Trade Receivable & Other Assets Opening balance 6,137 1,096,024 Provision for impairment recognized during the year 2,187 1,234,398 Amounts collected - (406,015) Receivables written off during the year as uncollectible - (767,307) Effect of changes in exchange rates - 31,074 Inflation adjustment (1,847) (298,842) Closing balance 6,477 889,332 30 September 2024 Movements in the provisions for the total of receivables from financial services are as follows: 30 September 2025 30 September 2024 Opening balance 202,522 266,120 Provision for impairment recognized during the year 367,678 367,015 Amounts collected (157,025) (178,922) Receivables transferred with receivables transfer contract (*) (127,321) (142,003) Inflation adjustment (48,057) (75,018) Closing balance 237,797 237,192 (*) Turkcell Finansman signed a transfer of claim agr eement with a debt management company to transfer some of its doubtful receivables stemming from the years 2016 and 202 4. Transferred doubtful receivables comprise of balances for which Turkcell Finansman had started legal proceedings.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 31 15. 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: USD EUR RMB Foreign currency denominated assets Other non-current assets 69 11 - Financial asset at fair value through other comprehensive income 540,121 178,454 - Due from related parties - current 32 - - Trade receivables and contract assets 36,701 23,287 - Other current assets 9,775 2,041 - Cash and cash equivalents 1,318,766 801,243 170,587 1,905,464 1,005,036 170,587 Foreign currency denominated liabilities Loans and borrowings - non-current (268,964) (601,791) (1,247,936) Debt securities issued - non-current (1,414,191) - - Lease obligations - non-current (189,265) (8,010) - Other non-current liabilities (41,119) - - Loans and borrowings - current (127,169) (325,802) (204,739) Debt securities issued - current (581,628) - - Lease obligations - current (21,063) (1,223) - Other current liabilities - (10,102) - Trade and other payables - current (129,906) (14,676) (197,329) Due to related parties - - - (2,773,305) (961,604) (1,650,004) Financial liabilities defined as hedging instruments (*) 4,197 114,283 - Exposure related to derivative instruments 331,000 (171,001) 33,696 719,900 (5,086.00) - Net exposure 187,256 (18,372) (1,445,721) Participating cross currency swap and FX swap contracts Currency forward contracts 30 September 2025 (*) Turkcell, the main shareholder of the Group, uses a loan amou nting 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.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 32 15. Financial instruments (continued) Commodity Price Risk On 25 September 2025, the Group invested in a gold deposit account equivalent to 6,656 ounces of gold. As of 30 September 2025, the fair value of the gold deposit account is TRY 1,065,352. Therefore, the Group’s profitability may be affected by changes in gold prices in the markets. In the sensitivity analysis performed, it was assessed that a 10% increase in gold prices would result in a TRY 106,535 increase in profit or loss before tax, whereas a 10% decrease would result in a TRY (106,535) decrease in profit or loss before tax. 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 T RY, BYN, EUR against the following currencies as at 30 September 2025 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. Appreciation of foreign currency Depreciation of foreign currency Appreciation of foreign currency Depreciation of foreign currency 1- USD net asset/liability 777,082 (777,082) - - 2- Hedged portion of USD risk (-) - - (17,416) 17,416 3- USD net effect (1+2) 777,082 (777,082) (17,416) 17,416 4- EUR net asset/liability (89,376) 89,376 - - 5- Hedged portion of EUR risk (-) - - (280,732) 280,732 6- EUR net effect (4+5) (89,376) 89,376 (280,732) 280,732 7- Other foreign currency net asset/liability (RMB) (838,012) 838,012 - - 8- Hedged portion of other foreign currency risk (-) (RMB) - - - - 9- Other foreign currency net effect (7+8) (838,012) 838,012 - - Total (3+6+9) (150,306) 150,306 (298,148) 298,148 Sensitivity analysis 30 September 2025 Profit/(Loss) Equity
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 33 15. Financial instruments (continued) Financial assets: Carrying values of a significant portion of financial assets do not differ significantly. Financial liabilities: As at 30 September 2025 and 31 December 2024; 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 September 2025: Bank loans 12,847,224 12,988,439 Debt securities 82,823,316 85,188,656 Carrying amount Fair value As at 31 December 2024: Bank loans 11,150,904 11,141,213 Debt securities 42,789,131 42,537,276 16. Guarantees and purchase obligations At 30 September 2025, outstanding purchase commitments with respect to property, plant and equipment, inventory, advertising and sponsorship amount to TRY 5,528,056 (31 December 2024: TRY 5,371,264). Payments for these commitments will be made within 5 years. 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 a mounting to TRY 34,798,270 at 30 September 2025 (31 December 2024: TRY 25,727,977). 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 si gned between the Republic of Belarus, BeST and the Company on 30 November 2022. As of 30 September 2025, the remaining investment commitment is amounting to USD 66,100 (TRY equivalent of 2,743,044).
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 34 17. Commitments and Contingencies The amounts related to the investigations, lawsuits, and inquiries shared below are disclosed with their nominal values as of 30 September 2025. Disputes on Special Communication Tax Restructuring Act Compensation Lawsuit regarding the SCT for the term 2011 The Large Taxpayers Office levied Special Communication Tax (SCT) and tax penalty on the Company for the term 2011, the Company filed application for restructuring the tax assessment, the application has rejected. The lawsuit filed against the rejection act, was finalized in favor of the Company. As a result of this case, the Company, filed a lawsuit for the collection of TRY 47,405 principal receivable and TRY 36,000 damage accrue d with a deferment interest. The Court decided to return TRY 47,269 principal receivable together with the deferred interest to be calculated as of the collection date. Regional Administrative Court rejected the appeal requests. The Council of State rejected the appeal requests and the case was finalized. Disputes regarding the Law on the Protection of Competition The Competition Board evaluated Articles 4 and 6 of Law No. 4054 regarding the Company and imposed an administrative fine of TRY 91,942 in June, 2011 on the ground that the Company violated Article 6. The Company filed a lawsuit for the cancellation of the Board decision regarding the parts against itself but the case was finalized against the Company i n both the first -instance court and appeal stage . The Company made an individual application to the Constitutional Court, against the respective decision within due time.The Constitutional Court rejected the individual application request. . Also, the Large Taxpayers Office issued a payment order regarding the aforementioned administrative fine. The Company filed a lawsuit for the cancellation of the payment order but that case also was finalized against the Company. TRY 47,780 part of the administrative fine has been deducted from the receivables that the Company has earned as a result of another lawsuit. The remaining TRY 44,162 part of the administrative fine was paid in April 2022. On the other hand three private companies filed a lawsuits against the Company in relation with this case claiming in total of TRY 112,084 for its material damages by reserving its rights for surpluses allegedly. Among these cases, in the case filed for the compensation of total TRY 110,484 material damages together with compensation amounting to three times of the damage and interest, a settlement was reached through mediation on 19 April 2024, and TRY 130,000 was paid by the Company on 3 May 2024. Accordingly, in the lawsuit between the parties, the court decided that there was no need to decide on the merits of the lawsuit that was not subject to mediation and the decision became final. The corporate tax cost of TRY 32,380 arising from this payment was additionally settled by the C ompany within the scope of the mediation agreement. Among these cases, in the case filed for the compensation of total T RY 500 material damages, the Company objected to expert the report and the files has been sent to a new expert committee. The expert report has been submitted to the case file. The parties have duly filed objections to the expert report within the specified timeframe. In accordance wi th the parties objections, the court has resolved to obtain an additional report from the same expert panel. The expert's supplementary report has been submitted to the case file. The Company submitted statements and objections regarding the report within the specified timeframe. The other case was finalized in favor of the Company. On the other hand, a third party filed a lawsuit for the cancellation of the part of the Competition Board stating that the Company did not violated Article 4 and the Council o f State cancelled this part of the decision. Thereafter Competition Board launched a new investigation and as a result of it the Competition Board decided to apply administrative fine amounting to TRY 91,942 in 2019, on the ground that the Company violated Article 4.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 35 17. Commitments and Contingencies (continued) Disputes regarding the Law on the Protection of Competition (continued) Afterwards, The Competition Authority accepted some of the objections and reduced the administrative fine to T RY 61,294 with its decision. The aforementioned fine that amount of T RY 61,294 was paid discount, in the amount of TRY 45,971. A decision was made against the Company at the first instance and appeal stages in the lawsuit that filed for cancellation of the fine. The appeal process is pending. Disputes regarding the Law on the Protection of Competition – Investigation on gentleman's agreements for the labour market The Competition Authority initiated an investigation to ascertain whether there was a breach of Article 4 of Law No. 4054 through the establishment of gentleman's agreements within the labor market. The Investigation Report was formally served to the Company on 7 May 2023. In response, the Company submitted its written defense concerning the findings and conclusions, and an oral defense hearing was conducted on 13 February 2024. Following the investigation, it was resolved on 27 February 2024 to impose an administrative fine of T RY 57,301 on the Company. The reasoned decision was formally notified to the Company on 5 August 2025. The fine has been settled within one month from the date of notification with a 25% reduction. The Company made an application to the Competition Authority under Article 11 of the Administrative Litigation Procedure Law, requesting the annulment, withdrawal of the decision or adoption of a new administrative act. The Competition Authority rejected the application. The Company filed a lawsuit against the decision in due time. ICTA Investigations Regarding the R&D Obligations ICTA conducts annual investigations to examine whether the company fulfills its obligations arising from the relevant legislation regarding the provision of a certain portion of its investments in the electronic communication network and communication services from suppliers with R&D center s in Turkey, a certain portion from products manufactured in Turkey by SME suppliers established to develop products or systems in Turkey, and a certain portion from products determined to be certified as domestic goods within the framework of the relevant legislation. As a result of the audits carried out for the 2013 -2018 period, a total of TRY 95,487 administrative fines were imposed on the company, and these fines were paid in the amount of T RY 71,615 by taking advantage of the early payment discount, but the legal processes initiated for the cancellation of the fines are ongoing. In addition, ICTA conducts routine investigations regarding 3G and 4.5G investment obligations. This review process is ongoing for the periods 2018-2021.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 36 17. Commitments and Contingencies (continued) Refunds Investigation ICTA examined whether th e refund transactions to subscribers were in compliance with the Board Decisions regulating the refund procedures for postpaid and prepaid subscribers. As a result of the investigation, the Board imposed various administrative fines on the Company for the periods 2010-2018. The related administrative fines were paid in the previous years and the amount stated to be underpaid to the subscribers was paid on May 18, 2023 in the amount of TRY 98,333 together with late payment interest. The legal process initiated by the company, requesting the cancellation of the relevant transaction and the fine, is pending in the appeal stage. Turkcell and Superonline are currently undergoing refund investigations on a similar matter and Turkcell is currently undergoing an ongoing investigation on the Return of Remaining TRY on Prepaid Lines (01.03.2019-30.04.2021 Period). Verbal defense meetings were held on 29 April 2025 within the scope of the Refund Investigations (Board Decision No. 57) against Turkcell and Superonline . The verbal defense meeting for the ongoing Investigation on Return of Remaining TRY on Prepaid Lines regarding Turkcell was held on 18 February 2025. On the other hand, the Investigation on Return of TRY Remaining on Prepaid Lines for the next period (01 .05.2021-30.09.2022 Period) has been initiated for our Turkcell the Investigation Report including the findings of violations was notified to Company on 25 April 2025. Our written defense regarding the violation findings in the Investigation Report was submitted to the ICTA on 26 May 2025. Investigation Regarding the Subscription Agreements (Anonymous Lines) The ICTA initiated an investigation to examine whether the obligations regarding the establishment and implementation of subscription agreements and open lines were fulfilled and as a result of this investigation, the ICTA imposed an administrative fine of TRY 99,132 on the Company. The administrative fine was paid on 31 January 2024 as TRY 74,349 with early payment discount. The Company filed five separate lawsuits in total for the cancellation of the administrative fines and related transactions. The cases are pending. The examination process of a similar investigations about Number Porting (Turkcell) Subscription Agreements (Superonline) are also ongoing. ICTA – Investigation on Idendity Verification Regulation The ICTA stated that Turkcell and Superonline failed to comply with the face -to-face verification procedures of the Identity Verification Regulation and recorded biometric data in their subscription processes. It was assessed that administrative fines could be imposed on Turkcell and Superonline for four separate violations. On the other hand, the ICTA has also stated t hat may be take necessary measures for the scope of provision "...national security, public order or the proper execution of public service and the implementation of the provisions introduced by laws, to take over the facilities in return for compensation when necessary, to cancel the authorisation granted in case of non-payment of the authorisation fee within the specified period or in case of gross negligence.". Our written defenses were submitted to the ICTA on 11 March 2024. The investigations are ongoi ng. Within the scope of the investigation, a verbal defense meeting was held on 3 December 2024.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 37 17. Commitments and Contingencies (continued) ICTA – Inspection of Identity Verification Procedures in the Subscription Establishment Process The ICTA has launched an inspection into Turkcell following the determination that subscription agreements established in written form did not comply with the relevant legislation. Within the scope of the inspection, an administrative fine may be imposed, and the following two details have been requested in our written statements: For the period between December 31, 2022, and September 30, 2025, on a calendar month basis: (i) The number of lines activated without applying the provisions of the fifth and sixth paragraphs of Article 7 of the Identity Verification Regulation in contracts established in writing, except for those using secure electronic signatures. (ii) The number of lines activated by the operator in accordance with the process set out in subparagraphs (b) and (c) of the second paragraph of Article 8 of the Identity Verification Regulation, in cases where the identity certificate is not of the appropriate type. The requested explanation has been submitted to th e ICTA on October 24, 2025. The preparation of the requested information and documents is still ongoing. Violation of Board Decision (Board Decision No. 412 – NetGSM) Inspection An investigation was initiated against our Company for not providing services (In violation of the relevant legislation and the Board Decision No. 2024/UK-ETD/412) to Netgsm's subscribers who want to receive services from our network through new subscription or number portability within the scope of the Virtual Mobile Network Servic e (VMMS) authorization. Within the scope of the investigation, our written explanations regarding the violation determination were prepared and submitted to the ICTA. On 14 January 2025, a verbal defense meeting was held. A lawsuit has been filed for the a nnulment of Board Decision No. 2024/UK -ETD/412. The Court rejected the case. The Company appealed the decision before the Regional Administrative Court. Other Investigations Conducted by ICTA The ICTA may carry out r outine or specific investigations to determine whether the relevant legislation is being complied with, and a summary of the content of the investigations that have already been concluded is presented below. a) Investigation of compliance with the criteria and target values defined in the legislation regarding 3N and 4.5N Mobile Communication Systems, b) Investigation of compliance with the obligation regarding mobile service quality notifications, c) Investigation on whether the Company fulfills its obligations in relation to Value Added Electronic Communication Services, d) Investigation of compliance with the legislation regarding subscription termination processes, e) Investigation Regarding the Non -Blocking of Calling Line Identification (CLI) in Violation of the Relevant Provisions of the Principles and Procedures for the Use of Calling Line Information as CLI All administrative fines imposed as a result of routine or specific inspections conducted by ICTA have been paid with early payment discount, and legal proceedings initiated for some of them in line with the opinions of the legal counsel for their cancellation are ongoing. The total amount of the related administrative fines paid in the past period is TRY 29,628. The ICTA may carry out r outine or specific investigations to determine whether the relevant legislation is being complied with, and a summary of the content of the investigations that have not been concluded is presented below. a) Investigation regarding the compliance of the works and transactions carried out in the processes from the submission to the finalization of the facility sharing request with the relevant legislation,
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 38 b) Investigation of whether the obligations defined in the Regulation on Consumer Rights in the Electronic Communications Sector and other relevant legislation regarding committed subscriptions are fulfilled 17. Commitments and Contingencies (continued) Other ongoing lawsuits and tax investigations Probability of an outflow of resources embodying economic benefits for 2018 and 2019 fiscal years with regards to notification of Information and Communication Technologies Authority for radio fee related to 2018 fiscal year was considered by the Company management. In this respect, TRY 128,429 was paid in November 2019 by reserving our right to take legal actions and legal actions were taken for 2018 fiscal year. Upon the conclusion of three lawsuits against the Company, an individual application was made to the Constitutional Court and the process is ongoing. On the other hand, additional TRY 13,465 for December 2018 was paid with reservation on 29 January 2021 with regards to notification of Information and Communication Technologies Authority for the same reason. General Assessment of Ongoing Litigation and Investigation Based on the management opinion, an outflow of resources embodying economic benefits is deemed as probable on some of the aforementioned lawsuits and investigations, there is no additional provision recognized in the consolidated financial statements as at and for the period ended 30 September 2025 (31 December 2024: TRY 249,519). The provision allocated for ongoing investigations, inquiries, lawsuits, and audits represents the Company Management's best estimate; however, the results of these proceedings may differ from the Group's assessments.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 39 18. Related parties 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 September 2025 and 2024. The Group provides additi onal benefits to key management personnel and contributions to retirement plans based on a pre-determined ratio of compensation. 30 September 2025 30 September 2024 Short-term benefits (*) 594,175 492,205 Long-term benefits 863 192 Termination benefits 421 491 595,459 492,888 (*) Short term benefits include share based payments. The following transactions occurred with related parties: Revenue from related parties 30 September 2025 30 September 2024 Türk Telekom Mobil Iletisim Hizmetleri A.S. (“TT Mobil”) (*) 1,090,590 1,069,433 Enerji Piyasaları İşletme A.S. (“EPIAS”) (*) 612,398 358,883 Türk Hava Y olları A.S. (“THY”) (*) 340,462 433,166 Ziraat Bankası A.S. (“Ziraat Bankası”) (*) 219,142 184,889 Gunes Express Havacilik A.S. (“Sun Express”) (*) 235,980 242,983 Turk Telekomunikasyon A.S. (“TT”)(*) 138,076 136,286 TOGG (**) 122,885 70,090 Turksat Uydu Haberlesme Kablo TV ve Isletme A.S. (“Turksat”)(*) 109,454 147,780 TVF IFM Gayrimenkul Insaat ve Yonetim A.S. (*) 48,280 29,298 Turkiye Hayat ve Emeklilik A.S.(*) 62,736 77,312 Türkiye Sigorta A.Ş. ("Türkiye Sigorta")(*) 54,400 80,156 Turkiye Halk Bankası A.S. (“Halkbank”) (*) 57,932 37,374 Turkiye Vakiflar Bankası TAO (“Vakifbank”)(*) 43,669 36,595 Ziraat Katılım Bankasi A.S. (“Ziraat Katilim”)(*) 19,912 9,969 BIST (*) 13,603 7,747 Other 77,671 49,229 3,247,190 2,971,190 (*) Related parties, which TVF directly and / or indirectly has control or joint control or significant influence. (**) Related parties which is associate.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 40 18. Related parties (continued) Related party expenses 30 September 2025 30 September 2024 Türk Telekomünikasyon A.S (*) 2,272,986 1,933,475 EPIAS (*) 2,227,777 703,062 TT Mobil (*) 1,944,037 1,063,422 Vakifbank (*) 729,609 21,526 Istanbul Takas ve Saklama Bankasi A.S. ("Takasbank") (*) 275,402 647,413 T.C. Hazine ve Maliye Bakanlığı 161,930 203,155 PTT (*) 126,139 119,349 Turksat (*) 84,555 61,651 Others 459,015 895,468 8,281,450 5,648,521 (*) Related parties, which TVF directly and / or indirectly has control or joint control or significant influence. As of 30 September 2025, the Group has recognized a right-of-use asset amounting to TRY 8,863,079 and a lease liability amounting to TRY 8,674,450 in its statement of financial position in accordance with the lease agreement signed with BOTAŞ. In relation to this agreement, an interest expense of TRY 348,333 is included in the consolidated statement of profit or loss for the nine-month interim period ended 30 September 2025. Details of the financial assets and liabilities with related parties as of 30 September 2025 and 31 December 2024 are as follows: 30 September 2025 31 December 2024 Banks - Time deposits 11,833,969 32,167,996 Banks - Demand deposits 1,227,666 1,017,901 Receivables from reverse repo 52,829,510 15,520,613 Financial investment (*) 10,738,866 6,055,042 Bank borrowings (4,898,923) (12,107,048) Debt securities issued (1,023,801) (1,160,980) Lease liabilities (9,234,201) (140,446) Impairment loss provision associated with bank deposits and other financial assets (25,276) (4,667) 61,447,810 41,348,411 (*) Financial investments are consist of bonds and currency protected time deposit. As of 30 September 2025, the amounts of letters of guarantee given to the related parties is TRY 2,313,265 (31 December 2024: TRY 734,403). Details of the time deposits at related parties as of 30 September 2025 and 31 December 202 4 are as follows: 30 September 2025 31 December 2024 Ziraat Bankasi 6,435,405 7,917,182 Ziraat Katılım 2,980,288 5,279,092 Vakifbank 2,206,874 10,984,607 Halkbank 211,402 7,987,115 11,833,969 32,167,996
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 41 18. Related parties (continued) Details of the reverse repo Amount in Original Currency Currency Effective Interest Rate Maturity 30 September 2025 350,203 EUR 2.9% October 2025- November 2025 17,036,622 862,512 USD 4.9% October 2025- November 2025 35,792,888 52,829,510 Details of the time deposits at related parties Amount in Original Currency Currency Effective Interest Rate Maturity 30 September 2025 35,590 USD 3.3% October 2025- December 2025 1,480,328 180,540 EUR 1.7% October 2025- November 2025 8,789,505 1,562,374 TL 39.4% October 2025 1,564,136 11,833,969 Details of the bank borrowings at related parties Principle Amount Currency Effective Interest Rate Maturity 30 September 2025 4,845,000 TL %39.5 - %42.2 October 2025- August 2027 4,898,923 4,898,923 Details of the debt securities issued at related parties Principle Amount Currency Effective Interest Rate Maturity 30 September 2025 1,000,000 TL %39,5 - %40,5 November 2025- December 2025 1,023,801 1,023,801 Details of the lease liabilities at related parties Currency Effective Interest Rate Maturity 30 September 2025 TL %42,5 - %62,5 2025 - 2035 559,751 USD %8,8 2040 8,674,450 9,234,201
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 42 18. Related parties (continued) Interest income to related parties 30 September 2025 30 September 2024 Vakifbank 869,084 3,919,206 Ziraat Bankasi 813,791 874,901 Halkbank 406,014 897,694 Ziraat Katılım 121,652 142,729 Other 1,354 - 2,211,895 5,834,530 Interest expense to related parties 30 September 2025 30 September 2024 Vakifbank 1,291,194 1,933,723 Halk Varlık Kiralama A.S. ("Halk Varlık Kiralama") 285,933 323,987 Ziraat Bankasi 36,334 102,836 Halkbank 2,450 20,579 Other 134 6,741 1,616,045 2,387,866 The revenues obtained from the related parties of the Group generally consist of t elecommunications 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 stock exchange activities. The receivables from related parties are unsecured.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 43 19. Subsidiaries The Group’s ultimate parent company is TVF, while subsidiaries, associates and a joint venture of the Company as at 30 September 2025 and 31 December 2024 are as follows: Subsidiaries Country of 30 September 31 December Name Incorporation Business 2025 (%) 2024 (%) Turktell Türkiye Information technology, value added GSM services and entertainment investments 100 100 Turkcell Superonline Türkiye Telecommunications, television services and content services 100 100 Turkcell Dijital Türkiye Digitalization services and products 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 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 Bulut (***) Türkiye Cloud solutions services - 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 Atmosware Teknoloji Türkiye Develop software products and services, training software developers 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 Technologies Turkish Republic of Northern Cyprus Electronic payment services 100 100 Turkcell Global Bilgi Türkiye Customer relations and human resources management 100 100 Rehberlik (*) Türkiye Directory assistance - 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 BiP A.S. Türkiye Providing digital services and products 100 100 BeST Republic of Belarus Telecommunications 100 100 Turkcell GSYF Türkiye Venture capital investment fund 100 100 Sofra Türkiye Meal coupons and cards 100 100 Artel Türkiye Data processing 100 100 Ultia Türkiye Information technology 100 100 TDC Türkiye Data center and cloud services 100 100 Lifetech Republic of Belarus Information technology, programming and technical support 100 100 EB Metal Sac Profil Ticaret ve Sanayi A. Ş. Türkiye Iron and Steel industry 100 - Effective Ownership Interest Associate Country of 30 September 31 December Name Incorporation Business 2025 (%) 2024 (%) TOGG Türkiye Electric passenger car development, production and trading activities 23 23 Effective Ownership Interest (*) The liquidation process of Rehberlik Hizmetleri Servisi A.Ş. was completed as of 11 March 2025. (**) As of 27 January 2025, it was decided to liquidate Paycell LLC, established in Ukraine. (***) As of 7 May 2025, The Company was merged with Lifecell Dijital Servisler.
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 44 20. Investments accounted for using the equity method The details of carrying values of investments accounted for using the equity method are as follows: 30 September 2025 31 December 2024 Associates TOGG 3,952,659 6,640,274 The movement of investments accounted for using the equity method is as follows 30 September 2025 30 September 2024 Opening balance 6,640,274 10,629,508 Shares of profit / (loss) (2,687,615) (2,090,298) Closing balance 3,952,659 8,539,210
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 45 21. Discontinued operations As per the Group's Board of Directors' decision dated 20 December 2023; a share transfer agreement was signed on 29 December 2023 for the transfer of all shares, along with all rights and debts, of Lifecell LLC, Global LLC, and Ukrtower, which are the Group's wholly owned subsidiaries. As of 9 September 2024, cash amounting to nominal value of TRY 17,777,962 was received by the Group in accordance with the share purchase agreement. As of 9 September 2024, other receivables related to the purchase amounting to nominal value of TRY 677,553 were accrued. Upon completion of the closing transactions with the buyer on 4 August 2025, the amount was finalized at nominal value of TRY 490,150. The difference of nominal value of TRY 187,403 has been reported under discontinued operations in the current period. As at 30 September 2024, the statement of profit or loss of a disposal group for the year are presented below: 1 January- 30 September 2024 Revenue 9,860,383 Cost of revenue (3,638,255) Gross profit 6,222,128 Selling and marketing expenses (571,081) Administrative expenses (362,818) Other operating income/(expense), net 34,379 Operating profit 5,322,608 Net finance expense / income (87,850) Profit before income tax 5,234,758 Tax income /(expense) (427,150) Profit/(loss) for the year from discontinued operations 4,807,608 Gain on sale of disposal of subsidiaries 11,758,121 Total 16,565,729 1 January- 30 September 2024 Foreign currency translation reserve 7,411,567 Reserve of disposal group classified as held for sale 7,411,567
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TURKCELL İLETİŞİM HİZMETLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2025 (All amounts are expressed in thousand of Turkish Lira and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2025 unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.) 46 21. Discontinued operations (continued) The net cash flows incurred by the disposal group are, as follows: 1 January- 30 September 2024 Cash flows from operating activities 3,860,750 Cash flows from investing activities 549,046 Cash flows from financing activities (4,714,656) Net cash (outflow)/inflow (304,860) 22. Seasonality of operations The Turkish mobile communications market is affected by seasonal p eaks and troughs. Historically, the effects of seasonality on mobile communications usage had positively influenced the Company’s results in the second and third quarters of the fiscal year and negatively influenced the results in the first and fourth quarters of the fiscal year. 23. Subsequent events The Company has committed to pay a total of USD 1,224,000 (excluding VAT) for 160 MHz of frequency as a result of the frequency auction held by the Information and Communication Technologies Authority (ICTA) on 16 October 2025. With this auction, and together with the commitment to pay 5% (excluding VAT) of the gross revenues obtained from mobile services to ICTA each year from 30 April 2029—the expiration date of the current GSM license authorization certificates—until 31 December 2042, the Company will be able to con tinue providing mobile service operations for these GSM license authorizations. The auction price (excluding VAT) is planned to be paid in three equal installments on 2 January 2026, 25 December 2026, and 2 May 2027. The finalization of the auction results is expected to take place following the completion of the legal requirements under the tender specifications and other relevant legislation within the framework of the authorization process.