COMMENTS BY CEO, AL\u0130 TAHA KO\u00c7, PhD<\/span><\/b><\/p>\nA year filled with achievements<\/b><\/p>\n
\nAs Turkcell, leading T\u00fcrkiye’s digital transformation, we successfully completed 2024 under the challenging conditions of global economic turbulence and high inflationary environment. Despite the Turkish economy being shaped by tight monetary policies and a focus on combating inflation throughout the year, we achieved strong performance through our robust business model and strategic initiatives. In this milestone year marking our 30th<\/sup> anniversary, we have steadfastly progressed toward our goal of creating sustainable value for our stakeholders, driven by our strong foundations and innovative vision. On our focus on creating value from our assets, we reduced our geopolitical risks and further strengthened our cash position by completing the sale of our subsidiaries in Ukraine. In addition, in line with the decision taken at the ordinary general assembly meeting, we distributed a total gross dividend of TRY 6.3 billion on December 5, in line with our dividend policy. In the year ahead, we remain committed to creating value for our stakeholders.<\/p>\n\nIn line with our guidance; Turkcell Group revenues increased by 7.8%, reaching TRY 166.7 billion; while the EBITDA1<\/sup> margin improved by 0.9 points on an annual basis, reaching 41.9%, despite the challenging inflationary pressures on the cost base in 2024. Our net income was at TRY 23.5 billion, supported by the contribution of the sale of Ukrainian subsidiaries.<\/p>\nSolid operational performance despite the challenging competitive environment<\/b><\/p>\n
\nThe MNP (mobile number portability) market has been increasingly active since May, peaking in December. While irrational offers by the competitors continue to impact the healthy development of the market, the MNP market volume rose to historic highs. At this point, we have occasionally responded to some of these competitive campaigns to retain our customer base. Thanks to our subscriber retention strategy, supported by analytical models and innovative services, our mobile churn rate remained steady at 2%.<\/p>\n
\nAs the leader of the mobile segment, we prioritize long-term and sustainable growth. While we emphasize maintaining a balanced market structure, we remain committed to creating lasting value rather than pursuing temporary gains through short-term strategies. With this strategy, we have managed the balance of ARPU increase and subscriber base growth in a healthy way. As a result, our mobile postpaid subscriber base grew by 1.9 million, surpassing 29.1 million, marking the highest annual increase in the past 15 years. The postpaid subscriber base increased by 5 points on an annual basis and reached 76%. Our prepaid subscriber base decreased to 9.2 million as a result of alternative data solutions as well as mass line closures that we carry out in the last quarter of each year. Mobile ARPU2<\/sup> increased by 10.4%, driven by our price adjustments, successful upsell efforts, and expansion in the postpaid subscriber base that generates more value.<\/p>\n\nIn the fixed broadband segment, we remained committed to expand our end-to-end fiber service to more subscribers. Within this scope, our Turkcell fiber subscriber base3<\/sup> increased by 168 thousand in 2024, reaching 2.5 million. Thanks to the 12-month contract share in residential fiber subscribers increasing to 85%, the share of our fiber subscribers with speeds of 100 megabits and above exceeding 41% in total fiber, and the price adjustment we have made, our fiber ARPU increased by 13.6% on an annual basis in 2024. We observe that our IPTV product TV+ also has a significant contribution to this increase. We had a very successful year in terms of converting our fiber investments into subscribers. Take up rate in the fiber segment increased by 1.7 points on an annual basis and reached 42.7%. Our \u201cResell\u201d segment, which we provide services by considering financial profitability in regions where our fiber broadband service is not available, completed the year at 779 thousand. With the project that we launched as a pilot in the last quarter of 2024 and fully commissioned as of January 2025, we have now started to provide fiber service using the infrastructure of the incumbent operator.<\/p>\nStrong contribution to group from Techfin Segment<\/b><\/p>\n
\nOur techfin segment, consisting of Paycell and Financell4<\/sup> brands, experienced remarkable growth in 2024. Paycell, which has changed the habits of consumers with the innovative payment services, has grown in all verticals it serves and increased its revenues to TRY 3.9 billion, with a 25% annual growth. EBITDA margin improved by 0.5 points to 43.0%. In the Pay Later service, which accounts for more than half of Paycell’s revenues, the non-group volume increased by 49% compared to last year. On the other hand, POS solutions, which have gained a strong growth momentum since its launch, has become the second largest vertical of Paycell revenues in 2024 with the strong performance in non-group customers. Total volume of POS solutions increased by 88%. Paycell Card volume grew by 77% on an annual basis as users strengthened their usage habits. On the other hand, Financell, which operates in the field of individual and commercial financing, increased its revenues by 32.8% in 2024 thanks to the contribution of the increase in the average interest rate and the larger loan portfolio. The ability to serve more comprehensive customer segments thanks to our personalized pricing strategy that we launched this year has a key role in the growth of the loan portfolio. Thus, we maintained our position as the leading financing company in the field of microloans in 2024. While Financell’s net interest margin improved in the second half of the year, our cost of risk remained below industry averages.<\/p>\nWe are shaping the future in Data Center & Cloud Business<\/b><\/p>\n
\nThe revenues of our Data Center & Cloud business, which we set out with the principle of \u201cKeeping T\u00fcrkiye\u2019s data in T\u00fcrkiye\u201d and became the market leader in data center sector in a short time, grew by 46% in 2024 thanks to high demand and price adjustments. We aim to establish an additional capacity of 8.4 MW by adding new modules to our data centers, which have a total active IT capacity of 41.4 MW by the end of the year. As the first company in T\u00fcrkiye to receive Tier III certifications in design, facility and operation by the Uptime Institute, we build our data centers to the highest standards to ensure redundancy, reliability and near-zero downtime. We aim to strengthen our leadership by continuing our investments in this field in the coming years.<\/p>\n
Green steps for the future<\/b><\/p>\n
\nAs Turkcell, we value not only people but also all living beings and the environment we live in, taking action to leave a livable world for future generations. In this context, we have accelerated our investments in the field of sustainability in order to transform all our businesses into a more environmentally friendly, efficient and sustainable model by using the power of technology. As a company operating in an energy-intensive sector, we meet 100% of our electricity needs from renewable energy-certified sources. We took our efforts in this field even further. By the end of 2024, we completed the installation of our own solar power plants with a total capacity of 54 MW and activated 8.2 MW of it. We aim to increase the installed capacity of the solar power plants, which will be commissioned in 7 different provinces and 11 locations, to 300 MW by the end of 2026. Thus, while we will protect ourselves against possible energy price increases, we will also be one step closer to our goal of becoming a net zero carbon company in 2050.<\/p>\n
\nWe are working tirelessly to minimize our impact on the environment and to leave a much more livable world for our children. The \u2018Recycle into Education\u2019 project, which has been ongoing since 2019, is a meaningful reflection of this awareness. Within the scope of this project, we collected and recycled a total of approximately 48 tons of techno waste, 14 tons of which were in 2024, and supported more than 450 children to receive education for a year. At the same time, we increased environmental awareness and protected our natural resources by recycling technological waste.<\/p>\n
Great interest and trust in Turkcell<\/b><\/p>\n
\nWe achieved a significant success for both our company and our country by issuing a billion USD Eurobond – the largest international bond in Turkcell’s history. The 5-year bond with a nominal value of 500 million dollars and the inaugural sustainable bond with a 7-year maturity with a nominal value of 500 million dollars that we issued in January attracted great interest from investors despite the difficult market conditions. This success once again demonstrated Turkcell’s financial strength and the trust international investors have in our company and our country. We will use this fund to further strengthen our digital infrastructure and implement our sustainable projects.<\/p>\n
\n20255 <\/sup>will be a year in which Turkcell accelerates its investments, focuses on sustainability areas, and closely follows the 5G tender and developments. While we aim to achieve 7%-9% real revenue growth and 41%-42% EBITDA Margin for this year, we expect the operational capex to sales ratio6<\/sup> to be around 24%, taking into account our increasing solar energy, data center and cloud investments. We expect the revenue growth of our data center and cloud business to be in the 32%-34% range.<\/p>\n\nAs T\u00fcrkiye’s Turkcell, we will continue to create value, be a pioneer with exemplary projects, and invest in the future of our country by continuing our investments focused on technology, innovation and sustainability. As Turkcell, we are determined to leave our mark on the future with the transformative power of technology. I extend my heartfelt thanks to all our employees for their contributions to our success and express my gratitude to our Board of Directors for their trust.<\/p>\n
\n(1) EBITDA is a non-GAAP financial measure. See page 16 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income
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(2) Excluding M2M
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(3) As of the fourth quarter of 2024, our fixed broadband subscriber reporting has been revised. Turkcell Fiber refers to customers served entirely through our own fiber infrastructure, while Turkcell Resell includes DSL, Cable, and Fiber sales provided through infrastructures of other ISPs. Accordingly, historical subscriber figures have been revised to ensure comparability
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(4) Following the change in organizational structure, the revenues of Turkcell Sigorta Arac\u0131l\u0131k Hizmetleri A.\u015e. (Insurance Agency), which was previously managed under Financell, are now classified as “Other” in the Techfin segment as of the first quarter of 2023.
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(5) Our expectations for 2025 incorporate the effects of inflation accounting under IAS 29. These projections are based on assumptions regarding factors beyond our control, including key macroeconomic indicators such as inflation. Our 2025 expectations are based specifically on an assumed annual inflation rate of 30.5% (year-end). This paragraph contains forward-looking statements that reflect our current estimates and expectations regarding market conditions across all of our businesses. However, there can be no assurance that these forward-looking statements will occur as anticipated. For a discussion of the various factors that could impact the outcome of these forward-looking statements, please refer to our 2023 annual report on Form 20-F filed with the SEC, specifically the risk factors section.
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(6) Excluding license fees<\/p>\n
FINANCIAL AND OPERATIONAL REVIEW OF FULL YEAR<\/span><\/b><\/p>\nFinancial Review of Turkcell Group<\/b><\/p>\n\n\n| \n Profit & Loss Statement (million TRY)<\/b><\/p>\n<\/td>\n | | \n\n Year<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n\n FY23<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n FY24<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n y\/y%<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Revenue<\/b><\/p>\n<\/td>\n | | \n\n 154,653.0<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 166,671.4<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 7.8%<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nCost of revenue1<\/sup><\/p>\n<\/td>\n | \n\n \n(76,692.6)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(77,979.6)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 1.7%<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n Cost of revenue1<\/sup>\/Revenue<\/b><\/p>\n<\/td>\n | \n\n (49.6%)<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (46.8%)<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2.8pp<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Gross Margin1<\/sup><\/b><\/p>\n<\/td>\n | \n\n 50.4%<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 53.2%<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2.8pp<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdministrative expenses<\/p>\n<\/td>\n | | \n\n \n(4,951.5)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(6,919.9)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 39.8%<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n Administrative expenses\/Revenue<\/b><\/p>\n<\/td>\n | | \n\n (3.2%)<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (4.2%)<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (1.0pp)<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nSelling and marketing expenses<\/p>\n<\/td>\n | | \n\n \n(8,204.1)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(10,948.7)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 33.5%<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n Selling and marketing expenses\/Revenue<\/b><\/p>\n<\/td>\n | | \n\n (5.3%)<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (6.6%)<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (1.3pp)<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet impairment losses on financial and contract assets<\/p>\n<\/td>\n | | \n\n \n(1,455.6)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(1,021.2)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (29.8%)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n EBITDA2<\/sup><\/b><\/p>\n<\/td>\n | \n\n 63,349.2<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 69,802.0<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 10.2%<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n EBITDA Margin<\/b><\/p>\n<\/td>\n | | \n\n 41.0%<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 41.9%<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 0.9pp<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nDepreciation and amortization<\/p>\n<\/td>\n | | \n\n \n(45,189.1)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(47,563.0)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 5.3%<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n EBIT3<\/sup><\/b><\/p>\n<\/td>\n | \n\n 18,160.1<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 22,239.0<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 22.5%<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n EBIT Margin<\/b><\/p>\n<\/td>\n | | \n\n 11.7%<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 13.3%<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 1.6pp<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet finance income \/ (costs)<\/p>\n<\/td>\n | | \n\n \n(4,982.6)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(796.9)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (84.0%)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nFinance income<\/p>\n<\/td>\n | | \n\n \n18,283.7<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n10,378.4<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (43.2%)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nFinance costs<\/p>\n<\/td>\n | | \n\n \n(28,777.0)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(17,025.9)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (40.8%)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nMonetary gain \/ (loss)<\/p>\n<\/td>\n | | \n\n \n5,510.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n5,850.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 6.2%<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOther income \/ (expenses)<\/p>\n<\/td>\n | | \n\n \n(6,880.4)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(2,326.5)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (66.2%)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNon-controlling interests<\/p>\n<\/td>\n | | \n\n \n31.4<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n8.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (72.6%)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nShare of profit of equity accounted investees<\/p>\n<\/td>\n | | \n\n \n2,202.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(3,162.6)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (243.6%)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nIncome tax expense<\/p>\n<\/td>\n | | \n\n \n6,751.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(4,866.0)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (172.1%)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nProfit \/(loss) from discontinued operations<\/p>\n<\/td>\n | | \n\n \n2,843.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n12,428.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 337.0%<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n Net Income<\/b><\/p>\n<\/td>\n | | \n\n 18,125.3<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 23,523.4<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 29.8%<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n(1) Excluding depreciation and amortization expenses.
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(2) EBITDA is a non-GAAP financial measure. See page 16 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income.
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(3) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses.<\/p>\n Revenue <\/b>of the Group increased by 7.8% year-on-year in FY24. This was driven mainly by the higher postpaid customer base of Turkcell T\u00fcrkiye and price adjustments. Additionally, solid momentum in the techfin business supported Group revenue growth.<\/p>\n \nFor the full year, Turkcell T\u00fcrkiye revenues, comprising 86% of Group revenues, grew 8.3% to TRY143,772 million (TRY132,760 million).<\/p>\n \n– Consumer business rise4<\/sup> was the main driver of Turkcell T\u00fcrkiye\u2019s performance, achieving 13.0% growth through price adjustments, net additions both in mobile and fixed segments, and upsell efforts.
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– Corporate revenues4<\/sup> declined by 3.5%. The challenging economic climate, which led to restrained demand, adversely affected the hardware revenues of digital business services, resulting in a 35% contraction. Meanwhile, service revenues recorded 14% growth.
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– Wholesale revenues were down 9.2% to TRY8,443 million (TRY9,298 million).<\/p>\n\n(4) Following the change in the organizational structure, the revenues from sole proprietorship subscribers that we define as Merchant, which were previously managed under the Corporate segment, are being reported under the Consumer segment as of and from the third quarter of 2023. Within this scope, past data has been revised for comparative purposes.<\/p>\n \nTurkcell International1<\/sup> revenues, comprising 2% of Group revenues, rose 5.9% to TRY4,015 million (TRY3,791 million).<\/p>\n\nTechfin segment revenues, accounting for 5% of Group revenues, grew by 30.9% to TRY8,634 million (TRY6,596 million), exceeding the decline in the Other segment. Please refer to the Techfin section for details.<\/p>\n \nOther subsidiaries\u2019 revenues, comprising 6% of Group revenues, which mostly include non-group call center and energy business revenues and consumer electronics sales revenues, decreased by 10.9% to TRY10,251 million (TRY11,506 million).<\/p>\n Cost of revenue<\/b> (excluding depreciation and amortization) decreased to 46.8% (49.6%) as a percentage of revenues for the full year of 2024. This was driven mainly by the decline in cost of goods sold (2.7pp), interconnection cost (1.0pp), energy cost (0.8pp), and other cost items (0.4pp), despite the increase in personnel expenses (1.4pp) and cost of funding (0.7pp) as a percentage of revenues for the full year.<\/p>\n Administrative expenses <\/b>increased to 4.2% (3.2%) as a percentage of revenues for the full year. The primary driver of this increase was the rise in personnel expenses.<\/p>\n Selling and marketing expenses<\/b> increased to 6.6% (5.3%) as a percentage of revenues in FY24. The rise in personnel expenses (0.6pp) and marketing expenses (0.6pp) as a percentage of revenues was the main driver of this increase while selling expenses grew in parallel with group revenues.<\/p>\n Net impairment losses on financial and contract assets <\/b>were at 0.6% (0.9%) as a percentage of revenues in FY24.<\/p>\n EBITDA2 <\/sup><\/b>grew by 10.2% year-on-year in FY24 leading to an EBITDA margin of 41.9% with a 0.9pp improvement (41.0%).<\/p>\n\n– Turkcell T\u00fcrkiye EBITDA increased 13.2% to TRY66,447 million (TRY58,709 million), leading to an EBITDA margin of 46.2% (44.2%).
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– Turkcell International EBITDA rose 4.9% to TRY1,473 million (TRY1,405 million), with a slight 0.4pp dilution in the EBITDA margin to 36.7% in FY24.
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– Techfin segment EBITDA declined 6.3% to TRY2,174 million (TRY2,321 million) with a 10pp contraction in EBITDA margin to 25.2% (35.2%). Higher funding costs only led to an 8.6pp drop in the EBITDA margin.
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– The EBITDA of other subsidiaries was at minus TRY293 million (TRY914 million).<\/p>\n Depreciation and amortization expenses<\/b> increased by 5.3% year-on-year for the full year.<\/p>\n Net finance costs <\/b>decreased to TRY797 million (TRY4,983 million) in FY24, including a TRY5.9 billion monetary gain and net FX losses of TRY5.5 billion. This decrease can be primarily attributed to a lower net FX loss due to a shrinking derivative portfolio. The derivative portfolio was reduced primarily due to cash inflows from Ukrainian asset sales and the advantage of holding Turkish Lira over derivative instruments, especially given the TRY’s stability against foreign currencies.<\/p>\n \nSee Appendix A for details of net foreign exchange gain and loss.<\/p>\n Other expenses <\/b>decreased to TRY2,326 million (TRY6,880 million) for the full year. Please recall that a donation was made in response to the devastating earthquake centered in Kahramanmara\u015f in 2023. In the same year, higher litigation expenses were also recorded.<\/p>\n Income tax expense: <\/b>The income tax expense of TRY4,866 million (positive TRY6,751 million) was reported. This variance can be attributed to two key factors: the reversal of deferred tax income, which had a positive impact in the previous year, and an increase in corporate tax expense. The higher corporate tax expense is primarily a consequence of the company’s statutory financials reflecting a tax-paying position in FY24.<\/p>\n Profit \/(loss) from discontinued operations <\/b>of TRY12,428 million (TRY2,844 million) was recorded for this year. This figure includes Ukrainian asset sales.<\/p>\n \n(1) As per our Company\u2019s announcement on September 9, 2024, we no longer hold any shares in companies operating in Ukraine as of Q324.
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(2) EBITDA is a non-GAAP financial measure. See page 16 for the explanation of how we calculate adjusted EBITDA and its reconciliation to net income.<\/p>\n Net income <\/b>of the Group increased by 29.8% to TRY23.523 million (TRY18.125 million) in FY24. Strong revenue and EBITDA performance, along with proceeds from the sale of our Ukrainian assets, positively impacted net income, while income tax expense, partially offset by lower net finance costs, had a negative impact.<\/p>\n Total cash & debt: <\/b>Consolidated cash as of December 31, 2024, decreased to TRY68,934 million compared to TRY72,159 million as of December 31, 2023. This decrease reflects the TRY6.3 billion dividend payment made on December 5, 2024. We also strategically invested in instruments classified under financial assets in the balance sheet to enhance the utilization of our cash. Excluding FX swap transactions, 51% of our cash is in US$, 22% in EUR, 3% in CNY, and 24% in TRY.<\/p>\n \nConsolidated debt as of December 31, 2024, decreased to TRY104,340 million from TRY121,400 million as of December 31, 2023. Please note that TRY4,823 million of our consolidated debt is comprised of lease obligations. Note, too, that 43% of our consolidated debt is in US$, 32% in EUR, 4% in CNY, and 20% in TRY.<\/p>\n \nNet debt1<\/sup>, as of December 31, 2024, decreased to TRY9,975 million from TRY34,367 million as of December 31, 2023, with a net debt to EBITDA ratio of 0.14x.<\/p>\n\nTurkcell Group had a short net FX position of US$124 million at the end of the year (Please note that this figure takes hedging portfolio and advance payments into account). The short FX position of US$124 million is in line with our FX neutral definition, which is between -US$200 million and +US$200 million.<\/p>\n Capital expenditures: <\/b>Capital expenditures, including non-operational items, were at TRY54,818 million in FY24.<\/p>\n \nFor the full year, operational capital expenditures (excluding license fees) at the Group level were at 22.8% of total revenues.<\/p>\n \n\n| \n Capital expenditures (million TRY)<\/b><\/p>\n<\/td>\n | | \n\n Year<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n\n FY232<\/sup><\/b><\/p>\n<\/td>\n | \n\n FY243<\/sup><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOperational Capex<\/p>\n<\/td>\n | | \n\n \n30,940.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n38,000.8<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLicense and Related Costs<\/p>\n<\/td>\n | | \n\n \n5,245.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n26.5<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNon-operational Capex (Including IFRS15 & IFRS16)<\/i><\/p>\n<\/td>\n | | \n\n \n12,830.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n16,791.2<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total Capex<\/b><\/p>\n<\/td>\n | | \n\n 49,016.7<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 54,818.5<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n(1) The net debt calculation includes “financial assets\u201d reported under current and non-current assets. Required reserves held in CBRT balances are also considered in net debt calculation. We believe that these assets are highly liquid and can be easily converted to cash without significant change in value.
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(2) Including Ukraine operations
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(3) Excluding Ukraine operations<\/p>\n Operational Review of Turkcell T\u00fcrkiye<\/b><\/p>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |