Operator: Ladies and gentlemen, thank you for standing by. I am Paulina, your Chorus Call operator. Welcome, and thank you for joining the Turkcell conference call and live webcast to present and discuss the Turkcell Q3 2026 financial results. All participants will be in a listen-only mode, and the conference is being recorded. The presentation will be followed by a question-and-answer session. Should anyone need assistance during the conference call, you may signal an operator by pressing star and zero on your telephone. At this time, I would like to turn the conference over to Mrs. Özlem Yardım, Investor Relations and Corporate Finance Director. Ms. Yardım, you may now proceed.
Özlem Yardım: Thank you, Paulina. Good evening, everyone, and welcome to Turkcell 2026 Q3 earnings call. Before we begin, I would like to kindly remind you to review our safe harbor statement, which is available at the end of our presentation. Our earnings release and today's presentation are available on our investor relations website. Our CEO, Mr. Ali Taha Koç, will begin with an overview of our business performance, followed by our CFO, Mr. Kamil Kalyon, who will take our financial results. After the presentation, we will open the line for your questions. It is now my pleasure to hand over to our CEO, Mr. Ali Taha Koç.
Ali Taha Koç: Thank you very much, Özlem. Good evening, everyone. Welcome to Turkcell's Q3 2026 results call. I will start with our operational and strategic highlights, and Kamil will walk you through the financial results. We will then open the floor for questions. We delivered an outstanding quarter, combining robust real revenue growth and excellent execution across our businesses. These results bolster our confidence in achieving our full-year real revenue growth and EBITDA margin guidance. Let me now share our key achievements. Our growth strategy once again translated into excellent results this quarter. Consolidated revenues reached TRY 82 billion, representing 6.2% year-on-year growth in real terms. This reflects disciplined execution and the growing contribution from our diversified businesses. Turkcell Türkiye delivered 5.1% year-on-year revenue growth. Digital business services stood out with an impressive 65% increase in revenues, while Techfin further reinforced this momentum, led by Paycell.
Ali Taha Koç: Our performance was equally compelling on the profitability front, with our EBITDA margin reach 44.2% and net income totaling TRY 6.7 billion. On the operational front, the gains were particularly notable. We added 701,000 postpaid subscribers and 39,000 fiber subscribers. Mobile ARPU reached TRY 512, while residential fiber ARPU increased to TRY 623. Our pricing actions throughout 2026 have created a solid foundation for ARPU growth in the periods ahead. Superbox, our fixed wireless access offering, had a great quarter, adding 101,000 net subscribers. This outstanding achievement further solidifies our dominant position in the fixed wireless access market. One thing is certain, our leadership in connectivity sets us apart, while our growth businesses are gaining scale and our investments in data center, cloud, and artificial intelligence are paving the way for Turkcell's next chapter. Let's dive into the key drivers, starting with mobile.
Ali Taha Koç: We saw a favorable shift in competitive dynamics in the mobile market during Q3. Quarterly mobile number portability volumes were below 2.3 million, compared to 5 million per quarter in 2025. This healthier market environment translated into another impressive quarter with respect to subscriber gain. We carried our subscriber momentum into Q3, adding 579,000 net mobile subscribers, led by a remarkable 701,000 postpaid net additions. Over the last 12 months, we added 2.6 million postpaid subscribers, a direct reflection of our superior network quality and customer experience. The growing weight of postpaid customers elevates overall quality of our subscriber base. Improved market conditions and our continuous focus on customer retention helped bring mobile churn down to 1.6%, compared to 2.6% a year ago. What stands out is the quality of our growth. We are attracting more postpaid customers while building greater customer loyalty.
Ali Taha Koç: Mobile ARPU, excluding M2M, increased by 28% year on year. Our targeted pricing actions will increasingly translate into ARPU growth as postpaid contracts are renewed. Assuming inflation remains in line with our expectations, we anticipate an acceleration in real ARPU growth over the coming quarters. Beyond our commercial performance, our network leadership remains a key competitive advantage. On 1 April, we marked a major milestone with the launch of 5G in Türkiye. Carrying forward our speed leadership from the 4.5G era, Turkcell is once again delivering the highest 5G speeds. Our superior network capabilities are also a key strength behind Superbox, our market-leading fixed wireless access offering. Superbox extends our broadband reach beyond our fiber footprint and continues to lead the fixed wireless access market. Our market share reached to an all-time high of 75%. Superbox delivered a standout quarter with record high gross additions and 101,000 net additions.
Ali Taha Koç: With this achievement, we are rapidly approaching the 1 million Superbox subscriber milestone. These results give us even greater confidence in Superbox's long-term potential. Our extensive 5G spectrum portfolio provides a significant competitive advantage to capture further growth opportunities in the 5G era. Now, let me turn to our fixed broadband business. Turkcell Fiber accelerated subscriber growth in Q3. We added 39,000 subscribers in Q3 and 143,000 over the last 12 months, bringing our total subscriber base to 2.7 million. A key highlight is the shift toward a higher value subscriber mix. The share of customers served through our own fiber infrastructure climbed to 81%, marking a 4 percentage point increase year on year. This puts us in an even stronger position, both in quality of our service and in the experience we deliver to our customer.
Ali Taha Koç: In the market, there is a clear shift toward higher speed plans. The share of subscribers on plans with speeds of 1,000 megabit per second and above surged from 11% to 38% year on year, highlighting the growing demand for premium fiber connectivity and Turkcell's ability to capture this opportunity. On pricing, residential fiber ARPU grew by 34% year on year, outpacing inflation and directly reflecting our focused pricing strategy. We also stepped up our fiber rollout in Q3, adding 242,000 new home passes and add two more Turkcell Fiber cities. This brings our total footprint to 6.9 million home passes across 33 different cities in Türkiye, while maintaining a solid take-up rate of 41%. Now, let me turn to TV+, where we bring connectivity and digital entertainment together. TV+ recorded an exceptional quarter, adding 148,000 net subscribers across our OTT and IPTV platforms.
Ali Taha Koç: Two drivers of this performance are a richer content portfolio and our strategic partnerships. Diversified content is at the core of our TV+ strategy. By bringing together premium sports, compelling entertainment, and a wide variety of content, we are elevating the TV+ experience and strengthening its appeal to our customers. Customer engagement is equally impressive, with OTT viewing time more than doubling year-on-year. For Turkcell, TV+ goes well beyond subscriber growth. It deepens customer relationship, strengthens the broader Turkcell ecosystem, and plays a valuable role in driving customer loyalty and reducing the churn. Next page, please. We also made significant strides in renewable energy. During the quarter, we successfully launched our 16 megawatt solar power plant in Ankara, adding another important asset to our solar portfolio. With this addition, our active solar capacity reached 90.8 megawatts, while total installed capacity increased to 175.4 megawatts.
Ali Taha Koç: In the first 9 months of 2026 alone, our solar energy portfolio generated 286 million Turkish liras in OPEX savings. As additional capacity comes online, we expect these savings to grow further. With Türkiye hosting COP31 this month, our progress in renewable energy reflects our commitment to turning sustainability ambitions into concrete action while creating long-term value for our business. Let's now turn to digital business services, one of the key contributors to this quarter's performance. Digital business services posted an outstanding quarter. Revenues reached 10.5 billion Turkish liras, up 65% year-on-year, now accounting for nearly 13% of group revenues. The business has firmly established itself as a major contributor to Turkcell's overall performance. Large-scale project renewals made a significant contribution to this quarter's growth. Beyond these renewals, customer demand remained robust across our digital solution portfolio.
Ali Taha Koç: In our data center and cloud businesses, global RAM and memory supply constraints and geopolitical uncertainties have led to some delays in customer demand, creating a more challenging environment than initially anticipated. As a result, we expect a more gradual revenue growth trajectory this year. Our data center business continues to advance. We now have 54 megawatts of active IT capacity across 4 locations. Construction of the hyperscale data center facilities in Ankara for Google Cloud's Türkiye region is progressing at a rapid pace. I want to emphasize the strategic importance of data center investments. With 628 million EUR invested to date in the data centers and hyperscale infrastructure, we are building the foundation for our next phase of cloud and digital service growth, both for Türkiye and Turkcell. Our ambitions go well beyond traditional cloud services.
Ali Taha Koç: We are advancing our work on GPU-based cloud offerings and next-generation artificial intelligence infrastructure so that we are ready to capture new opportunities as enterprise demand for AI accelerates. Our commercial performance was equally impressive. We secured 1,393 new contracts in Q3, bringing our system integration backlog to 21.6 billion Turkish liras. This substantial backlog offers clear visibility into our future revenue potential. As we expand our digital capabilities, Techfin gives us another way to enhance customer engagement and diversify our revenues. Our Techfin business made a substantial contribution to group revenues, driven by another strong quarter from Paycell. Paycell has an impressive pace of growth, with revenue increasing 23% year-on-year to 2.9 billion Turkish liras. Non-group revenues accounted for 81% of the total, demonstrating Paycell's growing market reach and its ability to scale well beyond the Turkcell ecosystem.
Ali Taha Koç: Paylater transaction volumes grew 54%, while POS transaction volumes increased 94%, driving POS revenues to an all-time high. POS business strengthens Paycell's position in the digital payments market. Paycell expands its reach, growing its active user base to 7.1 million users. Financell also gained momentum, with 3% quarter-on-quarter revenue growth in real terms. Looking ahead, the recent increase in the device price limit for 12-month installment plans from TRY 20,000 to TRY 40,000 creates further opportunities for growth in Q4. Our loan portfolio maintained healthy growth, reaching TRY 10.7 billion. Meanwhile, lower funding costs and our prudent risk-based pricing strategy underpinned a net interest margin of 7.7%. Financell maintained its leadership in the customer finance market, with a 43% market share by number of loans. Our expanding base of 16.3 million pre-approved credit customers further strengthens our growth potential.
Ali Taha Koç: Beyond our business performance, Turkcell is also taking a more prominent role on the global technology stage. I am proud to have been appointed chair of the GSMA Technology Group and re-elected to the GSMA board. These roles give us a stronger voice in shaping the future of our industry, particularly in 5G, 6G, artificial intelligence, and next-generation networks, while elevating Turkcell's international standing and Türkiye's role in the broader digital ecosystem. Let me close with a final message. Step by step, we are building the Turkcell of tomorrow, a diversified technology company that combines leadership in connectivity with cutting-edge digital infrastructure, next-generation cloud, and artificial intelligence capabilities we are investing in today. These investments range from GPU-based cloud to AI-ready data centers. AI, artificial intelligence, will define the next decade of this industry, and our investments put us at the center of it in Türkiye.
Ali Taha Koç: That is how we will capture new opportunities, deliver sustainable and profitable growth, and create lasting value for our shareholders. With that, let me hand it over to Kamil, who will take you through our financial performance.
Kamil Kalyon: Thank you, Ali Taha Bey. Let me turn to our Q3 financial results. It was another excellent quarter for Turkcell. Building on our strong H1 performance, we accelerated revenue growth and delivered further improvement in profitability. Our disciplined pricing strategy, together with robust momentum in our corporate business, was instrumental in delivering these results. This performance underscores the strength of our diversified business model and our continued focus on profitable growth. Group revenue reached TRY 8.2 billion, representing an impressive year-on-year increase of 6.2%. Turkcell Türkiye remained the primary engine of group growth, supported by accelerating activity in the corporate segment. Meanwhile, consumer revenues returned to positive growth, supported by our pricing actions and increasingly rational market dynamics. This marks an important turning point, signaling positive shift in the segment's growth trajectory. Turning to profitability, I would like to highlight two key achievements.
Kamil Kalyon: First, we expanded our EBITDA margin despite a higher revenue contribution from hardware sales in the corporate segment and POS services, both of which carry structurally lower margins. Second, and perhaps even more notably, this improvement came on top of an already exceptional EBITDA margin of 43.9% in the same quarter last year. As a result, we achieved an outstanding EBITDA margin of 44.2%, exceeding expectations and further demonstrating our ability to deliver profitable growth through disciplined execution. Next slide, please. Moving to net income. Let me walk you through the main factors driving this quarter's results. The amortization of 5G license accounted for approximately half of the year-on-year increase in depreciation. At the same time, the capitalized license continued to generate significant monetary gains, providing a favorable offset.
Kamil Kalyon: On the financing side, our net FX loss was driven by several factors, including outstanding 5G license installments, higher year-on-year TRY depreciation, and a larger short FX position amid elevated hedging costs. To mitigate the impact of rising foreign exchange losses, we closely monitor market conditions and dynamically manage our cash position by taking proactive measures to capture favorable opportunities. In this context, our FX swap transactions have enabled us to generate substantial interest income. Our net financial income, excluding FX loss, reached a positive TRY 2.1 billion, representing a 3.5-fold increase compared to same period last year. Turning to our equity accounted investments, Togg continued to make encouraging operational progress as it scaled up its business. Its impact on group net income improved by TRY 367 million year-on-year. This progress further reinforces our confidence in its long-term potential.
Kamil Kalyon: Our tax expense also declined meaningfully year-on-year, reflecting the favorable impact of fixed asset revaluation. Taken together, these factors resulted in net income of TRY 6.7 billion for the quarter. Next slide, please. Let me now take you through our capital expenditure performance. Our operational CapEx to sales ratio stood at 22.2% in Q3 and 22.8% for the first nine months of 2026. Both below our full-year guidance of 25%. We remain on track to meet our full-year targets. We allocated 82% of our operational CapEx to mobile and fixed infrastructure, focusing on enhancing network capabilities and extending our fiber reach. A portion of our planned CapEx for data center and renewable energy projects has shifted to subsequent periods, following adjustments to project execution schedules. Our fiber rollout gained further momentum during the quarter.
Kamil Kalyon: In the first nine months of 2026, we added 574,000 new home passes, expanding our total fiber footprint to 6.9 million. With our superior infrastructure and the widest spectrum portfolio, we are best positioned to deliver the leading 5G experience in Türkiye. We continued to expand our 5G site footprint this quarter. Turning to our data center investment, we activated the last module of our data center in Ankara, as outlined last quarter. Meanwhile, construction of our data center facilities under the Google Cloud partnership is progressing steadily, with the first module scheduled for delivery in 2028. Next slide, please. Turning to our balance sheet, we closed the quarter with TRY 99 billion in cash, maintaining a strong liquidity position and ample financial flexibility to pursue our strategic priorities.
Kamil Kalyon: Net debt increased compared to year-end 2025, mainly reflecting the first 5G license installment, including VAT, the annual wireless usage fee, bonus payment, and higher CapEx. Nevertheless, our leverage improved quarter-on-quarter, with net debt to EBITDA declining 0.31x, remaining comfortably below peer levels. Looking ahead, Q4 marks an important phase in our strategic investment journey, including the acquisition of our new headquarters and an increased stake in Togg. These investments reinforce our long-term commitment to strengthening Turkcell's strategic positioning and growth potential. In particular, the acquisition of our new headquarters, spanning a gross area of 83,000 square meters, represents an attractive investment, combining a prime location with a favorable purchase price. Beyond its financial merits, the new premises will serve as a technology and innovation hub, fostering closer collaboration and accelerating product development.
Kamil Kalyon: In parallel, we have already initiated projects to unlock value from our existing real estate portfolio and will continue to explore further value creation opportunities. This demonstrates our ability to fund significant investments, capture long-term growth opportunities, and maintain a disciplined approach to financial management. Now, let's take a closer look at our FX exposure. Next slide, please. Our treasury strategy continues to balance attractive returns with prudent balance sheet management. We use FX swaps selectively to benefit from favorable TRY yields when market conditions support their use. At quarter end, 67% of our cash, excluding FX swaps, and 87% of our financial debt were denominated in hard currencies. We also maintain substantial hard currency liquidity as a natural hedge against our FX liabilities.
Kamil Kalyon: Following the removal of tax advantages for money market funds and ongoing CapEx payments, we significantly scaled back our FX swap book activities starting in early Q4. Long-term hedging costs remain elevated at approximately 40% annually for instruments that do not introduce additional FX risk. With the Central Bank's managed exchange rate policy expected to remain broadly unchanged, we intend to maintain our net short FX position near its current level and continue to benefit from this approach. At the end of Q3, our FX debt stood at $4.3 billion, compared with $2.4 billion in FX-denominated financial assets. In addition, we had a derivative portfolio equivalent to $1.4 billion. Our net short FX position therefore stood at approximately $1.3 billion, comfortably within our medium-term target range of plus or minus $1.5 billion. With that, we conclude our prepared remarks.
Kamil Kalyon: We are now ready to take questions. Thank you.
Operator: Ladies and gentlemen, at this time, we will begin the question-and-answer session. Anyone who wishes to ask a question may press star followed by 1 on the telephone. If you wish to remove yourself from the question queue, then you may press star and 2. Please use your headset when asking your question for better quality. Anyone who has a question may press star and 1 at this time. One moment for the first question, please. The first question comes from the line of Till Moewes with Schroders. Please go ahead.
Till Moewes: Hello. Thanks for this presentation. Thanks for taking my question. Can you elaborate in more detail on your external funding needs for the rest of the year into 2027? That would be the first one. The second one, if you can explain a bit more in detail what the expected financial terms are for that new headquarter and how much you would pay on top or how much you would be saving. Thank you.
Kamil Kalyon: Thank you very much for the question. Currently, as you know, we had very successful loan borrowing activities in 2026. Currently, most probably we do not need additional funding for 2026. As you might be aware, in 2028, we will have a redemption of Eurobonds in the amount of $500 million. Maybe we can start for preparation for this redemption starting from 2028. We are looking for if we can find an external advantages, external financing opportunities for the data center financing. We are looking at these opportunities in the market. For the second question.
Till Moewes: Okay. Would that be a dollar bond or are you looking into euros?
Kamil Kalyon: Normally, we prefer to do US dollar terms in the Eurobonds side, but we have not decided whether we will be making a Eurobond or sukuk issues in 2025. It is up to the market conditions in that date.
Till Moewes: All right. Okay. Thank you.
Kamil Kalyon: For the second question, we paid $400 million, including VAT, to the headquarters right now.
Till Moewes: Right. Thank you.
Kamil Kalyon: You are welcome.
Operator: The next question is from the line of Madhu Singh with HSBC. Please go ahead.
Madhu Singh: Yes. Hi. Thanks a lot for taking my question. My first question is on your data center business. If you could remind what is the total capacity right now and what is the monetization plan here? Is it a candidate for an IPO or something similar, like a minority investor in there? The second question is related. You have created a lot of solar capacity, but I was wondering how much of that capacity actually is, let's say, going to be taken up by the data center business itself. I mean, just wondering whether you are getting all the advantages of new solar capacity getting consumed by the solar data center business itself. Yeah, these two questions first. Thank you.
Kamil Kalyon: Thanks for the question. Currently, we have a capacity of 54 megawatt capacity in the data center. For the Google partnership, as you know, we are establishing three more data centers for their region. Most probably within seven years period, it would reach to 50% additional.
Ali Taha Koç: megawatts more.
Kamil Kalyon: megawatt additional capacity for the data center. Data centers, as we mentioned in our previous meetings and previous presentations, we are looking at this data center operations as the future of Turkcell. Therefore, this would be a new era for Turkcell side. After finalizing this Google issue, maybe we can look for strategic partnerships or IPOs for the data center issue. I think the most important candidate for the IPO is our data center operations right now.
Ali Taha Koç: For the solar panel, solar portfolio, we currently have around 100 megawatts of operational solar and wind capacity. It covers currently 20% of our total electricity consumption. Another 84.6 megawatt is being completed and is currently awaiting regulatory approvals. So another 85 megawatts are coming. Once our total renewable capacity reach 300 megawatts and actually becomes fully operational, it will be sufficient to cover more than 50% of our total energy consumption, including the DC and all of our consumption.
Madhu Singh: Understood. If I may, I also wanted to follow up on the real estate investment you have done. I understand that it is to move, have a new headquarters for yourself. But how was the location decided? How was the pricing decided on this transaction? What is the, let's say, benchmark pricing of similar properties in other areas of Istanbul? If you could share some of those bottom-up approach on acquiring this asset, that will be very helpful. Thank you.
Ali Taha Koç: We see this acquisition as a long-term investment actually in our operational efficiency as well as the innovation capabilities and our employees' experience. Today, our teams are spread across several locations currently. With buying this 33,000 square meters of office space, the new buildings will allow us to bring our teams closer together, particularly in the technology and as well as the R&D department. Our aim is to create a technology and innovation hub in the Istanbul Financial Center, where our engineering and support teams can work more closely, share knowledge as well, and accelerate product development. The new space is also significantly larger than our current lease offices. As we increase the number of days our employees spend in the office after the COVID, we believe it will offer a much more comfortable and modern working environment to our employees.
Ali Taha Koç: From financial perspective, we believe owning rather than leasing makes more sense in the long run, particularly in the environment of rising costs and inflation. With respect to Istanbul Financial Center, it is currently the prime location for Istanbul, and we acquired the property at an attractive price relative to its appraised value. Given its size and 83,000 square meters I am talking about, size and the location, we believe it will be difficult to find a comparable opportunity elsewhere in Istanbul, so it is a prime location. As for the financial impact, the acquisition will be reflected in our Q4 2026 financial, and based on our Q3 figures, our pro forma net debt to EBITDA ratio will still remain comfortably below 0.45x.
Kamil Kalyon: Since we are a listed company also in Istanbul Stock Exchange, therefore, we have an appraisal report regarding the valuation of this real estate. As we mentioned in our declaration, it seems currently 4% discounted, but in the future, in the near future, after the economical conditions are going well, we will understand the value of this investment because if you know Istanbul, this is located in the center of the Istanbul Financial Center, therefore, this is a very valuable land. Therefore, having a headquarter is a special issue for a company in Türkiye. Therefore, we are expecting high valuations in the future.
Ali Taha Koç: Thank you very much.
Kamil Kalyon: You are welcome.
Operator: The next question is from the line of Yusuf Karagöz with Ak Yatırım. Please go ahead.
Yusuf Karagöz: Hi, thank you for the presentation. I have two questions. First of all, the digital business services segment has historically diluted your consolidated EBITDA margin, but we did not see the same impact in this quarter. Does this reflect an improvement in project profitability, and also was the 130 basis point margin contribution from personal expenses driven by the changes in headcounts?
Kamil Kalyon: Normally, you are right, but when you look at our EBITDA performance, as you said, from headcount perspective, there is no issue about this, but the price increases are a little bit below the inflation rate this year. Therefore, this has a positive impact in our income statement right now. In addition, the energy prices are going a little bit better. Therefore, this is also very important contribution to the EBITDA levels in this period. Even if we have more terminal and terminal sales in the corporate business segment, it is very important success for the EBITDA side, because as mentioned in my presentation, you should compare it with the previous year quarter. EBITDA margins are very high. We put this valuable amount over this valuable rate in this quarter.
Yusuf Karagöz: Thank you. Lastly, what is Togg's current net debt position, and do you expect it to require any capital increase in the next year?
Ali Taha Koç: For the Togg perspective, we just changed our shareholder agreement, and then we have currently 23%, and we are adding another 11% to our Togg shares. In this agreement, there is no commitment to provide additional funding to Togg as part of this transaction. If additional funding is needed in the future, we will evaluate it separately and taking into account Togg's needs and performance, as well as our own investment priorities and financial capacity. We have carefully assessed this transaction in the context of our broader investment plans and financial position. We do not expect it to affect our strategic investment priorities, actually.
Yusuf Karagöz: Thank you so much.
Operator: As a reminder, if you would like to ask a question, please press star and 1 on your telephone. The next question is from Cemal Demirtaş with Ata Invest. Please go ahead.
Cemal Demirtas: Thank you for the presentation and congratulations for a very good result. My first question is about the real estate investment you made. Possibly you are on rent now. How much saving will you have when you move to that location, and when are you going to move to that location? The other question is about the Togg side. Now you have more significant share in Togg. In the future presentations, do you have any intention to give more transparency on that front to give more indication about Togg in the future? Thank you.
Kamil Kalyon: Cemal, thank you very much for the question. Normally, the reason we purchase this building is not only the OPEX saving issue, because when we look at our operations, we have a lot of campuses in Istanbul, different campuses. Now, our aim is to collect all the campuses under the one roof. Therefore, we purchased one of these buildings for our technology company. This is very important side. Currently, our rental expenses are around TRY 300 million level currently. But more important than the OPEX savings, I think we should focus on the strategy about taking such kind of prestigious building in the Istanbul Financial Center. Most probably one-year period or two-year period, we will understand the value of this purchase transaction in the future.
Ali Taha Koç: With respect to Togg, let me answer that, Cemal. As part of the change in the Togg shareholder structure, Anadolu Group and Vestel are exiting, and while the Türkiye Wealth Fund is joining as a new shareholder, we have signed an agreement to acquire an additional 11% stake from Anadolu Group, and it brings our ownership rate from 23% to 34%, upon completion, of course. As one of the Togg's founding shareholders, we have always viewed it as a strategic investment in the future of the mobility ecosystem. We see significant potential in this growing ecosystem and bringing together connectivity, software, artificial intelligence, and as well as the digital technologies. Togg has already established a strong position in Turkey's electrical vehicle market. More than 130,000 cars are on the roads right now, and last month, reaching a 47% share of electric passenger car sales in October, in last month.
Ali Taha Koç: With its expanding model range, hopefully next year we're going to have another model, we believe there's a considerable room for further growth. For Turkcell, this investment is closely linked to our expertise, especially in the technology, connectivity, and digital services. All the Togg are connected with Turkcell, and they have all the Turkcell connectivity. We see exciting opportunities in the broader mobility ecosystem, actually, including connected vehicles, autonomous driving, charging infrastructure, energy solutions. Increasing our stake is a natural step in supporting this long-term vision, actually.
Cemal Demirtas: Thank you, Hikmet. As a follow-up, considering these cash outflows, real estate, dividend, and Togg, where should your net debt to EBITDA stand by the year-end? It is a very healthy level, and I am sure it will be also at healthy levels, but where should that net debt to EBITDA stand by the year-end after this cash outflow? Thank you.
Kamil Kalyon: Thank you very much. As we mentioned, we have a very strong balance sheet structure about this one. Therefore, currently, for example, we have very heavy investments in 2026. As you know, we paid license payments, and we have CapEx investments. Our data center investments are continuing. Therefore, currently, our net debt to EBITDA levels are 0.31. Most probably, after this cash outflows, we will still be below 1x issues. Most probably, we will end up in 0.7 or 0.75 or something like that, because we are also generating EBITDA, and our cash flow inflow is very good working. Therefore, we do not see any problem regarding the net debt to EBITDA issue or something like that in the future, because we have principles. We are very sensitive about the balance sheet treatment side, as you know.
Kamil Kalyon: You can easily see from our results when you look at, for example, compare our financial results, especially finance income, finance expenses, even for the foreign exchange losses when you look at, we have a very healthy treasury management. Most probably, we will continue this one. We are looking at these two investments as a strategical way. On the Togg side, we are not newcomers. We are the founding partner of the Togg, as you know. We only increased our stake in that company only 11%, and we purchased these shares from the Anadolu Group. Therefore, this is a new era for the Togg side. Most probably, there would be a simplicity in the management side. When you look at our financials, you can easily see the positive effect of the Togg results.
Kamil Kalyon: For example, when you compare it with the last year, this year, there are a lot of measurements has been taken by the Togg management, and the company's profile and company's financials going better. Most probably in 2027, there would be a new model will join the existing product gamut. Therefore, it would be very good for the Turkcell side, because if you are talking anything regarding technology in Türkiye, Turkcell should be there. As I mentioned, we are not newcomers. We are the founding partner of the Togg side.
Cemal Demirtas: One last question about the data center and cloud revenues. We see 4% year-over-year growth. Was it limited due to capacity side? Could you further elaborate that? The Google thing will come out in 2028, if you remind.
Ali Taha Koç: Thank you very much for the question. I visited last month our construction sites, and the construction is going very fast. Hopefully, we are going to maybe take you there as well, if you have time. We are so happy about it. The pace is very good, and we are just going to complete the bare shell and core construction at the end of the year. Hopefully, we are going to give it to our partner, and they are going to put all these devices inside. That Google project is going on time. Besides that, the other site for the colocation and the data center and AI business and the cloud businesses, currently there is a huge RAM and memory crisis. Most of the companies that we are dealing with, the B2B customers, they are always postponing their investments for the stairs.
Ali Taha Koç: They are postponing the buying servers. If they do not have enough servers, they do not want to put them into our data centers as a colocation businesses. We are seeing that trend, but we are taking our enough measures, and hopefully you are going to see a better growth in the data center business. Currently, there is all this geopolitical issues as well as the demand for the servers are diminishing right now. Everything goes to the AI chips. That is the reason there is a slow growth in the businesses doing their IT expenditures.
Cemal Demirtas: Thank you. Thanks, Kaan Bey.
Operator: Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Turkcell management for any closing comments. Thank you.
Ali Taha Koç: Thank you very much for your time today, and see you hopefully in the Q4 result. Thank you.
Kamil Kalyon: Thank you.
Özlem Yardım: Thanks for joining. Bye.
Operator: Ladies and gentlemen, the conference is now concluded, and you may disconnect your telephone. Thank you for calling, and have a pleasant evening
