Turkcell Q2 2026 profit rises on 5G demand despite rising costs

Turkcell said on Thursday its second-quarter profit rose as demand for 5G services supported revenue growth, though rising costs from network expansion weighed on margins.

The Istanbul-based telecom operator reported a net profit of 4.2 billion Turkish lira ($132 million) for the three months ended June 30, up from 3.8 billion lira in the same period last year. Revenue increased 12% year-over-year to 21.5 billion lira, driven by higher data usage and subscriber growth.

The company attributed the revenue gain to increased adoption of 5G services, which now account for 35% of its mobile data traffic. Turkcell added 1.2 million 5G subscribers during the quarter, bringing its total 5G customer base to 8.7 million.

However, Turkcell warned that capital expenditures for 5G infrastructure and spectrum licenses rose to 3.1 billion lira in Q2, up from 2.4 billion lira a year earlier. Operating expenses climbed 18% annually, reflecting higher energy costs and maintenance spending.

Turkcell Chief Financial Officer Murat Erkan said the company remains focused on balancing growth investments with cost discipline. "While 5G adoption is accelerating, we are managing our capex prudently to sustain long-term profitability," Erkan said in a statement.

Analysts noted that Turkcell’s margin compression could persist as competition intensifies and regulatory fees rise. The company’s EBITDA margin fell to 34% in Q2 from 37% a year ago.

Turkcell’s shares were little changed in Istanbul trading following the results, reflecting investor concerns over near-term margin pressures despite the revenue growth outlook.