Doğan Holding has announced its 3Q20 results. Doğan Holding has recorded TRY 7.6 billion in consolidated revenue in the first nine months of 2020 The Holding’s gross profit in Q3 rose by 8% year-over-year to hit TRY 890 million, and its Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) increased by 15% to TRY 644 million. With revenue generated from operating profit and investments, Doğan Holding's profit for the period soared by 217%, climbing to TRY 1,424 million from TRY 449 million.
According to the financial statements submitted by Doğan Holding to the Public Disclosure Platform (KAP), the Holding’s consolidated revenues for 3Q20 stood at TRY 7.6 billion. Doğan Holding’s gross profit in Q3 rose by 8% year-over-year (y-o-y) to hit TRY 890 million, and its Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) increased by 15% to TRY 644 million.
In a statement regarding Doğan Holding's 3Q20 performance, Doğan Holding CEO Çağlar Göğüş noted that they were able to shield the Holding from the negative effects of Covid-19 to a certain extent through measures, effective crisis and process management and cost savings, and emphasized that the Holding's operating profitability climbed by 40% y-o-y to TRY 1,108 million, up from TRY 789 million, and that its EBITDA margin was 8.5%, up from 5.7%.
Göğüş also added: “With revenue generated from operating profit and investments, Doğan Holding's profit for the period soared by 217%, climbing to TRY 1,424 million from TRY 449 million. Consolidated net cash increased by 54.2% over previous year’s close to TRY 3.1 billion, with solo net cash reaching TRY 2.7 billion following the acquisition of Sesa Ambalaj. The key reasons for the changes in revenue may be listed as follows: DOEL, our electricity trading company, ceased its operations as of January 1, 2020 – affecting the revenue by TRY 2 billion; pandemic-induced partial contraction Aytemiz experienced in demand and volatility in oil prices; Çelik Halat and Ditaş suspended production due to the pandemic; and the drop in rental income as Trump Shopping Center was closed between March 21 and June 1 in response to the pandemic.”
Doğan Holding CEO Göğüş stated that the Holding performed very well in the third quarter of 2020 despite the difficult conditions caused by the pandemic affecting Turkey’s economy and the global economy at large, and made the following assessment regarding the 3Q20 financial results: “We owe this successful performance to a disciplined management approach, effective cost management, a well-managed investment program and revenue diversification. First of all, we eliminate open positions across all the companies in our portfolio. We generally align our borrowing decisions with our revenue in terms of both amount and currency. We prevent our companies from going under sudden financial shocks with a disciplined risk management approach. Meanwhile, we employ an effective cost management strategy to simplify expenses, and diversify our revenue streams with new products, services and channels. Our energy, renewable energy and industry investments and media investments abroad, technology-related activities, financial services and automotive companies now boast a better asset allocation. In the upcoming period, we will continue to add value to all our stakeholders and maintain our investment-driven, upward growth trajectory without compromising on our strategic goals."