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Derivative financial instruments | 12 Months Ended
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Dec. 31, 2024
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Derivative financial instruments | 34.Derivative financial instruments The fair value of derivative financial instruments at 31 December 2024 and 2023 are attributable to the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 31 December 2024 | ​ | 31 December 2023
​ |  | Assets |  | Liabilities |  | Assets |  | Liabilities
Held for trading | ​ | 1,964,325 | ​ | 501,322 |  | 877,115 |  | 453,068
Derivatives used for hedge accounting | ​ | - | ​ | - |  | 1,884,713 |  | 70,181
​ | ​ | 1,964,325 | ​ | 501,322 |  | 2,761,828 |  | 523,249
​ At 31 December 2024, short-term derivative assets of TL 2,043,112 also include a net accrued interest income of TL 78,787 and the short-term derivative liabilities of TL 495,467 also includes a net accrued interest expense of TL 5,855. At 31 December 2023, the short-term derivative assets of TL 2,952,207 also include a net accrued interest income of TL 190,379 and the short-term derivative liabilities of TL 511,635 also includes a net accrued interest expense of TL 11,614. ​ 34.Derivative financial instruments (continued) Derivatives used for hedging The notional amount and the fair value of derivatives used for hedging contracts at 31 December 2024 and 2023 are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 31 December 2024 | ​ | 31 December 2023 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Change in | ​ | Change in
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | intrinsic value | ​ | intrinsic value
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | of outstanding | ​ | of outstanding
​ | ​ | Notional | ​ | ​ | ​ | Notional | ​ | ​ | ​ | ​ | ​ | ​ | ​ | hedging | ​ | hedging
​ | ​ | value | ​ | ​ | ​ | value | ​ | ​ | ​ | ​ | ​ | ​ | ​ | instruments | ​ | instruments
​ | ​ | in original | ​ | ​ | ​ | in original | ​ | ​ | ​ | ​ | ​ | Hedge | ​ | since 1 January | ​ | since 1 January
Currency |  | currency |  | Fair value |  | currency |  | Fair value |  | Maturity date |  | ratio |  | 2024 |  | 2023
Participating cross currency swap contracts |  | ​ |  | ​ |  | ​ |  | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​
EUR Contracts | ​ | - | ​ | - | ​ | 167,000 | ​ | 374,358 | ​ | October 2025 | ​ | 01:01 | ​ | - | ​ | (6,087)
EUR Contracts | ​ | - | ​ | - | ​ | 38,057 | ​ | 35,393 | ​ | April 2026 | ​ | 01:01 | ​ | - | ​ | (277)
USD Contracts | ​ | - | ​ | - | ​ | 124,186 | ​ | 818,486 | ​ | April 2026 | ​ | 01:01 | ​ | - | ​ | (970)
Cross currency swap contracts |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​
RMB Contracts | ​ | - | ​ | - | ​ | 81,162 | ​ | 447,275 | ​ | April 2026 | ​ | 01:01 | ​ | - | ​ | 190,846
Interest rate swap contracts | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
USD Contracts | ​ | - | ​ | - | ​ | 90,135 | ​ | 139,020 | ​ | April 2026 | ​ | 01:01 | ​ | - | ​ | -
Derivatives used for hedge accounting |  | ​ | ​ | - | ​ | ​ | ​ | 1,814,532 |  | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ EUR 120,440 (2023: EUR 191,036) participating cross currency swap contracts includes TL 415,930 (2023: TL 1,438,151) guarantees after the CSA agreement. As a result of the recent changes in the market due macroeconomic measures, the hedge accounting designated by the Company within the scope of its risk management has been ceased as of 1 July 2024 because the economic relationship between the hedged item and the hedging instrument no longer exists. With the discontinuation of cash flow hedge accounting for certain instruments, the nominal amounts related to changes in the time value of options held in the funds immediately transferred to the profit and loss accounts, while the nominal amounts related to cash flow hedge losses or gains held in the fund will be reflected in the profit or loss statement in future periods using the amortization method. ​ 34.Derivative financial instruments (continued) Held for trading The notional amount and the fair value of derivatives used held for trading contracts at 31 December 2024 and 2023 are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 31 December 2024 | ​ | 31 December 2023
​ |  | Notional |  | ​ |  | ​ |  | Notional |  | ​ |  | ​
​ | ​ | value in | ​ | ​ | ​ | ​ | ​ | value in | ​ | ​ | ​ | ​
​ | ​ | original | ​ | Fair | ​ | ​ | ​ | original | ​ | ​ | ​ | ​
Currency | ​ | currency | ​ | value | ​ | Maturity | ​ | currency | ​ | Fair value | ​ | Maturity
Cross currency swap contracts | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
USD Contracts | ​ | 4,000 | ​ | 113,643 | ​ | November 2025 | ​ | 8,000 | ​ | 267,255 | ​ | November 2025
RMB Contracts | ​ | 67,141 | ​ | 273,946 | ​ | April 2026 | ​ | 19,425 | ​ | 102,561 | ​ | April 2026
Currency forward contracts | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
USD Contracts | ​ | 405,000 | ​ | (61,287) | ​ | January-December 2025 | ​ | 334,900 | ​ | (178,088) | ​ | March 2024
EUR Contracts | ​ | 20,000 | ​ | (796) | ​ | November 2025 | ​ | 10,000 | ​ | (28,740) | ​ | January 2024
FX swap contracts | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
RMB Contracts | ​ | 290,949 | ​ | 26,277 | ​ | February 2025 | ​ | - | ​ | - | ​ | -
EUR Contracts | ​ | 10,103 | ​ | (9,598) | ​ | January 2025 | ​ | - | ​ | - | ​ | -
USD Contracts | ​ | - | ​ | - | ​ | - | ​ | 353,972 | ​ | (214,564) | ​ | February 2024
Participating cross currency swap contracts | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
USD Contracts | ​ | 91,894 | ​ | 484,368 | ​ | November 2025 -April 2026 | ​ | 18,000 | ​ | 104,680 | ​ | November 2025
EUR Contracts | ​ | 156,539 | ​ | 563,282 | ​ | October 2025 - April 2026 | ​ | 40,060 | ​ | 362,496 | ​ | April 2026
Interest rate swap contracts |  | ​ |  | ​ | ​ | ​ |  | ​ | ​ | ​ |  | ​
USD Contracts | ​ | 108,911 | ​ | 73,168 | ​ | April 2026- April 2033 | ​ | 64,655 | ​ | 34,234 | ​ | April 2026
TL Contracts | ​ | - | ​ | - | ​ | - | ​ | 600,000 | ​ | (25,787) | ​ | Octomber 2026
Derivatives held for trading | ​ | ​ | ​ | 1,463,003 | ​ | ​ | ​ | ​ | ​ | 424,047 | ​ | ​
​ 34.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 Techniques
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 and end period FX rates
b) FX swap, currency, interest swap and option contracts | ​ | Level 2 |  | Present value of the estimated future cash flows based on observable yield curves and end period FX rates
c) Currency forward contracts | ​ | Level 2 |  | Forward exchange rates at the balance sheet date
​ In the valuation of participating cross currency swap contracts, the Group uses bid prices in the bid- ask price range that were considered the most appropriate instead of mid prices. Using bid prices instead of mid ranges, has no impact on carried values as of 31 December 2024. (31 December 2023: None) ​ 34.Derivative financial instruments (continued) Fair value of derivative instruments and risk management (continued) Fair value (continued) ​ Movements in the participating cross currency swap contracts for the years ended 31 December 2024 and 2023 are stated below, and participating cross currency swap contracts are transferred to Level 2 from Level 3 as of 31 December 2023.
​ | ​ | ​ | ​ | ​
​ | ​ | 31 December | ​ | 31 December
​ |  | 2024 |  | 2023
Opening balance |  | - |  | 2,727,971
Cash flow effect |  | - |  | (3,185,616)
Total gain/loss: |  | - |  | -
Gains recognized in profit or loss |  | - |  | 3,285,098
Inflation adjustments | ​ | - | ​ | (1,132,040)
Transfer to Level 2 | ​ | - | ​ | (1,695,413)
Closing balance |  | - | ​ | -
​ The Group transferred participating cross currency swap contracts from Level 3 to Level 2 hierarchy because the use of bid prices in the bid-ask price ranges in valuation are not considered significant unobservable input anymore, based on market data. As a policy, the Group makes transfers between fair value hierarchy levels at the end of the reporting period. ​ As of 31 December 2024, the Company has no financial assets and liabilities carried at fair value on a non-recurring basis. ​ Net off / Offset The Company signed a Credit Support Annex (CSA) against the default risk of parties in respect of a EUR 167,000 participating cross currency swap transaction executed on 15 July 2016 and restructured respectively on 26 May 2017 and 9 August 2018. Additionally, in the 25 June 2019, The Company signed a new CSA to EUR 24,036 participating cross currency swap transaction. As per the CSA, the swap’s current (mark-to-market) value will be determined on the 10th and 24th calendar day of each calendar month, and if the mark-to-market value is positive and exceeds a certain threshold, the bank will be posting cash collateral to the Company which will be equal to an amount exceeding the threshold (i.e. if the mark-to-market value is negative, the Company would be required to post collateral to the bank by an amount exceeding the threshold). With respect to valuations, on a bi-weekly basis, a transfer will take place between the parties only if the mark-to-market value changes by at least EUR 1,000. Following the execution of CSA, the bank transferred to the Company EUR 344,829 as collateral (31 December 2024: TL 12,670,017) which was the amount exceeding the threshold (EUR 10,000) and the Company transferred EUR 333,509 as collateral to the bank (31 December 2024: TL 12,254,088) which was the amount exceeding the threshold (EUR 10,000). The Company clarified this with the derivative assets included in the statement of financial position because it has the legal right to offset the collateral amount TL 415,929 (31 December 2023: TL 1,441,934) that it recognizes under the borrowings and intends to pay according to the net fair value, this amount was netted from the borrowings and deducted from the derivative instruments in the balance sheet. As of 31 December 2024, if this transaction was not conducted, derivative financial instruments assets, liabilities and borrowings would have been TL 2,273,548 (31 December 2023: TL 4,144,206), TL 309,975 (31 December 2023: TL 261,701) and TL 52,321,024 (31 December 2023: TL 43,849,703) respectively. ​ 34.Derivative financial instruments (continued) Fair value of derivative instruments and risk management (continued) Market risk The Group uses various types of derivatives to manage market risks. All such transactions are carried out within the guidelines set by the treasury and risk management department. Generally, the Group seeks to apply hedge accounting to manage volatility in profit or loss. Currency risk The Group’s risk management policy is to hedge its estimated foreign currency exposure in respect of borrowing payments with various maturities at any point in time. The Group uses participating cross currency contracts to hedge its currency risk, mostly with a maturity of over one year from the reporting date. These contracts are generally designated as cash flow hedges. The Company started to apply hedge accounting as of 1 July 2018 for existing participating cross currency swap and cross currency swap transactions in accordance with IFRS 9 hedge accounting requirement. The Group designates the hedge ratio, between the amount of the hedged item and the hedging instrument is 1:1 to hedge its currency risk. The time value of options in participating cross currency swap contracts are included in the designation of the hedging instrument and are separately accounted for as a cost of hedging, which is recognized in equity in a cost of hedging reserve. The Group’s policy is for the critical terms of the participating cross currency contracts to align with the hedged item. The Group determines the existence of an economic relationship between the hedging instruments and hedged item based on the currency, amount and timing of their respective cash flows. The Group assesses whether the derivative designated in each hedging relationship is expected to be and has been effective in offsetting changes in cash flows of the hedged item using the hypothetical derivative method. In these hedge relationships, the main sources of ineffectiveness are;
| - | The effect of the counterparties’ credit risk on the fair value of the swap contracts, which is not part of the hedged risk and associated credit risk considered to be very low at inception in the fair value of the hedged cash flows attributable to the change in exchange rates;
| - | The entire fair value of the derivative contracts including currency basis was designated as the hedging instrument in cash flow hedge. The hypothetical derivative is modelled to exclude the impact of currency basis.
The Company’s bank loans are designated as hedging instruments against the spot foreign exchange rate risk (USD/TL) associated with highly probable electricity sales. In this context, the Group started to apply cash flow hedge accounting effective from 10 September 2021. The amount of loans associated within this scope amounted to USD 6,582 as of 31 December 2024. The after tax foreign exchange gain and loss recognized under “cash flow hedges” in the statement of other comprehensive income of 2024. The Company’s lease liabilities are designated as hedging instruments against the spot foreign exchange rate risk (EUR/TL) associated with highly probable EUR telecommunication revenues. In this context, the Group started to apply cash flow hedge accounting effective from 1 October 2021. The amount of lease liabilities associated within this scope amounted to EUR 59,086 as of 31 December 2024. The after tax foreign exchange gain and loss recognized under “cash flow hedges” in the statement of other comprehensive income of 2024. ​ 34.Derivative financial instruments (continued) Fair value of derivative instruments and risk management (continued) Currency risk (continued) The Company designated EUR 56,576 of bank loan, as hedging instruments in order to hedge the foreign currency risk arising from the translation of net assets of the subsidiaries operating in Europe from EUR to Turkish Lira. Foreign exchange gains/losses of the related loans are recognized under equity as “gains/(losses) on net investment hedges” in order to offset the foreign exchange gains/(losses) arising from the translation of the net assets of investments in foreign operations to Turkish Lira. The after - tax foreign exchange loss recognized under “hedges of net investments in foreign operation” in the statement of other comprehensive income of 2024 in the scope of net investment hedge amounted to TL 1,224,035 (2023: TL (1,676,558)) Interest rate risk The Group adopts a policy of ensuring that its interest rate risk exposure is at a fixed rate. This is achieved partly by entering into fixed-rate instruments and partly by borrowing at a floating rate and using cross currency and interest rate swaps as hedges of the variability in cash flows attributable to movements in interest rates. The Group applies a hedge ratio of 1:1. The Group determines the existence of an economic relationship between the hedging instrument and hedged item based on the reference interest rates, tenors, repricing dates and maturities and the notional or par amounts. The Group assesses whether the derivative designated in each hedging relationship is expected to be effective in offsetting changes in cash flows of the hedged item using the hypothetical derivative method. In these hedge relationships, the main sources of ineffectiveness are:
| - | The effect of the counterparties’ credit risk on the fair value of the swap contracts, which is not part of the hedged risk and associated credit risk considered to be very low at inception in the fair value of the hedged cash flows attributable to the change in interest rates;
Cash flow sensitivity analysis for variable-rate instruments A reasonable potential change of 100 basis points in interest rates and 10% change in foreign exchange currency at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Profit or Loss | ​ | Equity, net of tax
​ | ​ | 100 bp | ​ | 100 bp | ​ | 100 bp | ​ | 100 bp
31 December 2024 |  | increase |  | decrease |  | increase |  | decrease
Participating cross currency swap contracts |  | - | ​ | - | ​ | - | ​ | -
Cross currency swap contracts |  | - | ​ | - | ​ | - | ​ | -
Cash Flow sensitivity (net) |  | - | ​ | - | ​ | - | ​ | -
​ ​ 34.Derivative financial instruments (continued) ​ Cash flow sensitivity analysis for variable-rate instruments (continued) ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Profit or Loss | ​ | Equity, net of tax
​ | ​ | 100 bp | ​ | 100 bp | ​ | 100 bp | ​ | 100 bp
31 December 2023 |  | increase |  | decrease |  | increase |  | decrease
Participating cross currency swap contracts |  | (74,274) | ​ | 18,587 | ​ | 802,499 | ​ | 826,454
Cross currency swap contracts |  | 199,299 | ​ | 186,282 | ​ | (11,074) | ​ | (12,539)
Cash Flow sensitivity (net) |  | 125,025 | ​ | 204,869 | ​ | 791,425 | ​ | 813,915
​

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