Doğan Holding grows 47% in the first half of 2021, posting TRY 6.5 billion in revenues

Doğan Holding announced its financial results for the first half of 2021. In the first six months of 2021, Doğan Holding’s consolidated revenues grew 47% year-over-year to reach TRY 6.5 billion.

Holding’s gross profit for 1H21 climbed 61% year-over-year to TRY 818 million, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) hit TRY 551 million with a 64% increase. Doğan Holding’s net profit for the period was TRY 631 million, up from TRY 589 million with a 7% growth, driven by the recovery in operating profits as well as investment revenues.

According to the consolidated financial statements Doğan Holding submitted to the Public Disclosure Platform (KAP), the Holding recorded TRY 6.5 billion in consolidated revenues in 1H21. Doğan Holding’s gross profit for the first six months grew 61% year-over-year to TRY 818 million, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) reached TRY 551 million, up by 64% year-over-year. Doğan Holding's profit for the period attributable to the parent increased by 7% year-over-year to TRY 631 million in 1H21, up from TRY 589 million. Consolidated net cash grew by 28.5% over the previous year’s close to reach TRY 3.1 billion, while standalone net cash surged to TRY 3.8 billion with a 42.4% increase.

Consistent Recovery in Operational Performance Indicators

Doğan Holding has maintained its trend of increasing its asset size and strengthening equity structure in every quarter, continuing its steady growth in return on equity. Doğan Holding stands apart from other companies listed on Borsa Istanbul with its quarterly earnings per share, and continues to increase its EBITDA and EBITDA margin in every period. Doğan Holding has “net cash” and “net foreign currency” positions, and its dividend flow potential from its subsidiaries grows in parallel with the improvements in the performance of its subsidiaries.

‘Strong first-half performance by all group companies is the main driver of the revenue growth’

Commenting on the Holding’s 1H21 financial results, Çağlar Göğüş, Doğan Holding CEO, noted that the Petroleum Products Segment revenues grew 31%, and EBITDA and EBITDA margin 100% despite the pandemic, while the Industry & Trade Segment revenues surged by 134% driven by the remarkable performance in exports, with an EBITDA growth of 450% and EBITDA margin growth of 100%. Göğüş shared that all group companies have recorded a strong performance in 2021, with the Automotive Trade and Marketing Segment revenues climbing 119% thanks to the ongoing high demand and the impact of newly added brands, and Internet and Entertainment Segment revenues increasing 62.6%, reflecting Kanal D Romania’s satellite and transmitter service revenue growth. Göğüş also noted that D Investment Bank have commenced operations on May 21, 2021 upon receiving its operating license, while Sesa Ambalaj, one of Doğan Holding’s investments, has increased its revenues.

Göğüş remarked that Turkey has been going through a time of hardship with the pandemic, wildfires and flash floods affecting the country, and shared Doğan Holding’s continued commitment to support aid efforts.

“Effective process management, cost savings, higher operational efficiency”

Bora Yalınay, Doğan Holding CFO, noted that the EBITDA growth in petroleum products retail, automotive trade and marketing, industry & trade and Internet & entertainment segments was a key driver in the EBITDA increase of the Holding, which rose to TRY 551 million with a 64% increase. Measures taken in 1H21, effective process management, cost savings, higher operational efficiency enabled the Holding to achieve considerably stronger profitability compared to 1H20, noted Yalınay, with gross profitability climbing to TRY 818 million, up 61% from last year’s TRY 508 million, and EBITDA margin rising to 8.4% from 7.6%. “At the same time, our consolidated net cash increased 28.5% over the previous year’s close to hit TRY 3.1 billion, while standalone net cash grew 42.2% to TRY 3.8 billion,” shared Yalınay.

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