Doğan's Operating Profit Increased 23% in 2013

Having finished 2013 with an 8% revenue and a 23% increase in operating profit, Doğan Holding’s combined investment amount was 565 million TL, together with the joint venture companies. In 2014, Doğan will maintain its leadership in media while continuing to invest in energy, retail and the Internet. 

Stating that global economic developments portend a difficult 2014, Doğan Holding Chairwoman Begümhan Doğan Faralyalı said, “The challenging effects of 2014 will be felt by all developing countries, including Turkey. Furthermore, and specific to Turkey, our foreign exchange rate dropped considerably in early 2014, which added an additional burden to our economy -- particularly in private sector debt. Looking ahead, fiscal discipline must be meticulously maintained and structural reforms must be accelerated. But despite these challenges, and in light of Turkey’s strong financial structure, dynamic private sector, rising employment opportunities and sound investment decisions, our country will be less affected by global imbalances and will maintain its economic stability.

Emphasizing the Doğan Group’s ability to maintain stability and fiscal balance in 2013 despite an uncertain global economy, Doğan Holding Chief Executive Officer Yahya Üzdiyen said, “Similar to 2012, the success achieved by Doğan Yayın Holding in 2013 was recognized with a credit score increase from Fitch Ratings, an international credit rating entity. We’re proud to announce that Doğan Yayın Holding and Hürriyet Gazetecilik ve Matbaacılık A.Ş.’s local currency and foreign exchange credit ratings were raised from “B+” to “BB-”, while Hürriyet’s national long-term credit rating improved from “A” to “A+”.” 

In 2013, Doğan Yayın Grubu maintained its media sector leadership with a market share of 21% in newspaper circulation and 37% in magazine circulation. According to TNS data, Kanal D was the most-viewed television channel in the “All Day” category.  Also, D-Smart continued its rapid growth, enjoying a 19% increase in pay TV subscribers over last year. This increase took D-Smart over the one-million subscribers mark, and saw subscriber revenue increase 32%. 

Üzdiyen said, “Despite growing competition, we will continue to strengthen our position in the advertising market with cutting-edge creative and digital projects leveraged by our 35 years of media experience. In addition to the digital conversion we underwent with our existing affiliates, we’re considering investment opportunities in the Internet sector. In fact, in June 2013 we introduced Medyanet, the leader in online advertisement sales, under the DYH umbrella.” 

In 2013, the Doğan Group maintained its existing energy investments and added some new ones.  Also, capacity was increased at the Mersin and Şah Wind power plants. Stating that the Doğan Group bought all shares of D-Tes Electricity Energy Wholesale in 2013, Üzdiyen said, “In 2014 we will focus on retail electricity sales under the D-Tes brand and we will work towards becoming one of the premier players in the field. Moreover, the Aslancık HEP project, where we hold a 33% partnership, commenced production in Q1 2014. Within the scope of our foreign investments, we’re working to ensure that the wells for which studies have been carried out and which are located within the license area in Northern Iraq are up and running, and we’re also committed to increasing production at existing wells.” 

In 2013, Çelik Halat, an industry leader, posted its highest-ever sales numbers across its entire product range, excepting tire cord. What’s more, the company ensured a 50% capacity increase by investing in machinery for elevator cabling. Currently exporting to 40 countries, Çelik Halat aims to mimic its domestic success across international platforms. 

In other news, DİTAŞ, a Doğan affiliate and one of Turkey’s largest automotive tie rod manufacturers, was given the go-ahead to expand into the CIS, Russia and Asia-Pacific in 2014. The company will operate as two separate entities:  one located in Russia and the other in China. 

Thanks to its major contributions to the Kelkit region’s social and economic development, Doğan Organik was awarded the Grand Prize in the SME category at the European Corporate Responsibility Awards, held by CSR Europe under the auspices of the European Commission. Doğan Organik also partook in the “European CSR Awards Best Practice Exchange Forum”, a platform where companies share their corporate social responsibility experiences. Doğan Organik was one of six Turkish endeavours selected for the forum, which numbered 60 projects submitted by 30 countries.