03. Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC)
Dividend Yield: 5.94%
Payout Ratio: 33.80%
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is more than just Turkey’s top telecom provider, it’s a digital infrastructure leader with growing international ambitions. With a dividend yield of 5.94% and a low payout ratio of 33.8%, Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is comfortably rewarding investors without compromising reinvestment. Backed by a forward P/E of just 5.05, a healthy debt to equity ratio of 0.72, and an impressive PEG ratio of 0.19, the stock offers a rare combination of income, growth, and value.
In Q1 2025, Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) posted strong double digit growth despite macroeconomic headwinds. Revenue rose 12.7% year over year to TRY48 billion, while EBITDA jumped 19% to TRY21 billion, pushing margins to a decade high of 43.7%. Net profit also came in strong at TRY3.1 billion.
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) continues to grow its mobile and fiber customer base, adding 153,000 postpaid and 30,000 fiber subscribers in Q1 alone. Postpaid now makes up 76% of its mobile user base, up from 72% a year ago, helping drive ARPU growth of 15.9%. The fixed broadband business is also showing strength, with fiber ARPU rising 17.7% and higher speed package adoption climbing rapidly.
Meanwhile, the company’s cloud and data center revenues surged 48%, underscoring its successful pivot into high margin, tech driven services. Turkcell plans to expand its data center capacity by 8.4 megawatts this year, with over €528 million already invested in this space. Its Techfin arm, Paycell, continues to shine, growing 47.8% year over year, with rising EBITDA margins and expanding loan portfolios.
From a balance sheet perspective, Turkcell is rock solid. The company increased its cash reserves to TRY108 billion, secured long term funding ahead of rising rates, and maintains a modest leverage ratio of 0.2x. FX risk is actively managed, with 87% of cash held in hard currencies to offset its foreign denominated debt exposure.
Bottom line: Turkcell is not just surviving Turkey’s complex economic climate, it’s thriving. With a commitment to digital transformation, disciplined financial management, and a strong yield, this is a stock that’s quietly building strength, and poised to reward investors in 2025 and beyond.