Hurriyet Gazetecilik Ve Matbaacilik A.s. · BIST:HURGZ

Hurriyet Gazetecilik Ve Matbaacilik A.s — Hürriyet Gazetecilik ve Matbaacılık A.Ş. — Investor Presentation (March 2017)

38 slides from Hurriyet Gazetecilik Ve Matbaacilik A.s's investor presentation, March 2017

  1. Slide 1: Investor Presentation March 2017

    Investor Presentation March, 2017

  2. Slide 2: Notice

    NOTICE  This presentation does not constitute an offer or invitation to purchase or subscription for any securities and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.  The information contained in this document has not been indepen

  3. Slide 3: Hürriyet World: The Most Effective Platform for Advertisers and Readers

    HÜRRİYET WORLD: THE MOST EFFECTIVE PLATFORM FOR BRINGING ADVERTISERS AND READERS TOGETHER PRINT MEDIA THE PIONEER OF THE TURKISH MEDIA DIGITAL MEDIA THE STRONGEST NAME IN DIGITAL CONTENT PUBLISHING IN TURKEY E BUSINESS ONE OF THE LEADERS OF DIGITAL CLASSIFIEDS OPERATIONS ABROAD TME –TRADER MEDIA EAS

  4. Slide 4: Profit & Loss Statement

    PROFIT & LOSS STATEMENT Consolidated revenues (mn TL) Consolidated Ebitda (mn TL) 596 564 65,0 -5.4 % -17.5% 53,6 12M2015 12M2016 12M2015 12M2016 Consolidated revenues (mn TL) Consolidated Ebitda (mn TL) Excluding TME Excluding TME -0.6 % 538 76,3 -15,7% 535 64,3 12M2015 12M2016 12M2015 12M2016 4

  5. Slide 5: Hürriyet Revenue (excluding TME)

    HÜRRİYET REVENUE – (excluding TME) Reduced decline in revenues thanks to Digital and E-business Revenue Growth YoY Revenue Growth YoY 2016 (mn TL) Revenue Growth YoY (mn TL) Print Media - 2% 9% 0% -1.2% 629 629 622 -6.6% Digital Media + 11% 581 -7.3% -0.6% 538 535 E-Business E-Business +0.3% 57% FY1

  6. Slide 6: Total Ad Market

    TOTAL AD MARKET 16% increase in Internet Add Market vs 8% decline in newspaper add Ad Market Growth in Turkey (mn TL) 8000 +6% +10% 7096 2016 7000 +12% +10% 6518 6137 TL Mn Share yoy 6000 5560 TV 3.561 50% 10% 4974 5000 Internet 1.848 26% 16% 4000 Newspaper 804 11% -8% Outdoor 496 7% 9% 3000 Radio 2

  7. Slide 7: Print Media: Local Circulation and Advertising Revenue Profile

    PRINT MEDIA Attractive Local Circulation and Advertising Revenue Profile Other2 Ad. Market Share (TL) Circulation Market Share 8% (January-December) (unit) (January-December) Hürriyet 9% +1.3 pp Other +2.4 pp Other6 (yoy) (yoy) 3% 17% Other6 Other3 Others 8% 3% Hürriyet Other5 34% 47% Other1 5% 9% O

  8. Slide 8: Print Media: Increased market share in daily newspaper circulation

    PRINT MEDIA Increased market share in daily Newspaper Circulation Average Daily Newspaper Circulation Average Daily Circulation of Hürriyet (thousand units) (thousands units) 6.000 500 -19% 435 411 -6% 5.077 4.914 403 389 5.000 4.753 4.748 4.508 400 359 338 4.000 3.634 300 3.000 200 2.000 100 1.000

  9. Slide 9: Balance Sheet

    Balance Sheet Consolidated ('000 TL) 31.12.2016 31.12.2015  Increase in total assets Total Cash 24,3 87,0 Over 60 mtl increase in total assets, despite to 63mtl decresae in cash and cash equivalents Total Assets 935,4 873,3 Which majorly stems from the increasing fair value of investment properties

  10. Slide 10: Next... Maintain EBITDA through Fit For Growth programme

    NEXT... Focus on Classified Digital Leadership  Create New Digital Revenue Streams  Value Maximization at  Transformation in digital via Classifieds Growth and Efficiency in Print leveraging company wide content and resources  Accelerate the leadership in  Keep and Grow Market Share in Digital

  11. Slide 11: Print Media

    Print Media 11

  12. Slide 12: Hürriyet Is the Flagship of Turkey's Newspaper Industry

    PRINT MEDIA HÜRRİYET IS THE FLAGSHIP OF TURKEY’S NEWSPAPER INDUSTRY • The most important contributor to Hürriyet’s Reputation as TURKEY’S LEADING DAILY is its absolute mastery of the Business of News- Reporting  Printing Facilities 12

  13. Slide 13: Hürriyet Is the Flagship of Turkey's Newspaper Industry

    PRINT MEDIA HÜRRİYET IS THE FLAGSHIP OF TURKEY’S NEWSPAPER INDUSTRY 13

  14. Slide 14: Food and Construction Supported Total Ad Market

    FOOD AND CONSTURUCTION SUPPORTED TOTAL AD MARKET Turkish Ad Market by top 10 sectors in 2016 (Change in TL mn) in TL mn YoY Share in Total Food 17 604 3% 9% Construction 116 423 38% 6% Telecoms 68 421 19% 6% Finance 24 367 7% 5% Automotive 50 317 19% 4% 301 2% 4% Retail 7 251 4% 4% Beverages 10 242

  15. Slide 15: Construction Sector & Retail Supported Newspaper Ad Market in 2016

    CONSTRUCTION SECTOR & RETAIL SUPPORTED NEWSPAPER AD MARKET IN 2016 Turkish Newspaper Ad Market by top 10 sectors (TL Mn) in TL mn YoY Share in Total Construction 104 104 11% 13% Retail 91 91 -24% 11% Otomotive 61 61 3% 8% Social Ads 54 54 37% 7% Tourism 49 49 3% 6% Finance 40 40 -13% 5% Media 39 39

  16. Slide 16: Print Ad Market Decreases 8% While Hürriyet Share Increases

    PRINT MEDIA Print Ad Market decreases by 8% , while Hürriyet market share increases by 2.4pp 2016 Newspaper Ad. Revenues 870 -8% +2.4 points 804 Compared to 2015 261 260 34% Other Players in 609 544 the Market 66% 2015 2016  While social and construction sectors increases in Ad market, retail- fina

  17. Slide 17: Print Media Financial Overview

    PRINT MEDIA Financial Overview; FY16 Revenue Growth (mn TL) Print Revenue Split 340 -0.5% 300 261 260 260 441 -2% 432 220 180 +6% -14% 140 86 91 94 100 81 60 20 2015 2016 -20 Circulation Print Ad. Printing&Other 2015 2016  Despite to 6% decrease in Circulation numbers, revenues increases by 6%, due

  18. Slide 18: Competition in Circulation Market

    PRINT MEDIA Competition in Circulation Market 12M16 Daily Average Circulation (thousand) 338 309 301 290 209 147 145 142 113 110 Source : Press Ad Agency 18

  19. Slide 19: Digital Media

    Digital Media 19

  20. Slide 20: Digital Media: The Turkish Media Industry's Most Valuable Portfolio

    DIGITAL MEDIA THE TURKISH MEDIA INDUSTRY’S MOST VALUABLE PORTFOLIO 20

  21. Slide 21: Digital Media Financial Overview

    DIGITAL MEDIA Financial Overview; Digital Growth (mn TL)  Hürriyet Online Revenues increases parallel to 60 Online Ad market by 11%. Excluding «Radikal», Hürriyet Online Ad Revenue increases by 20%. +11%  115 % incresae in monthly page view from 820 mio to 1.765 mio 54  Significant incresae in se

  22. Slide 22: 115% Increase in Page View Numbers in 2016

    DIGITAL MEDIA 115% increase in Page View numbers in 2016 compared to 2015 year- end figures Hürriyet Monthly Page View (million PV) Total Mobile Desktop 22

  23. Slide 23: Significant Increase in Mobile and Desktop Visits

    DIGITAL MEDIA We achieved a significant increase in the number of Mobile and Desktop visits Hürriyet Monthly Number of Visits (milion visit) Total Mobile Desktop 23

  24. Slide 24: Strong Position in Mobile; Ranked #1 in Mobile Visits

    DIGITAL MEDIA Hürriyet has strong position in mobile; Ranked #1 in mobile visits Mobile Visits (monthly average million TL) 93 84 75 Competitor 70 69 71 68 66 66 64 63 62 63 64 61 61 61 61 59 56 55 54 Hürriyet 50 47 Jan-16 Feb16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 C

  25. Slide 25: Hürriyet Ranked #1 in Mobile Pageviews

    DIGITAL MEDIA Digital Media Competitors Hürriyet is ranked #1 in mobile Pageviews too. Mobile Pageviews (million) 600 546 500 489 436 442 427 431 400 397 Competitor 320 342 338 344 326 328 314 300 295 295 241 227 200 200 171 162 166 Hürriyet 100 0 Jan-16 Feb16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-

  26. Slide 26: E-Business Revenue Growth

    E-BUSINESS E-business revenue growth  29 % incresae in monthly visits from 13 mio to 17 mio +0.3% 43  9% incresae in number of unique visitors from 5.2 mio to 5.7 mio 42 2015 2016 26

  27. Slide 27: E-Business Visits and Unique Visitors

    E-BUSINESS Number of Visits(millon session) 19 18,3 18 17,4 17,0 16,9 17 16 14,9 15 14,5 14,2 13,9 15,5 14 13,1 14,6 12,6 13 12 11 10 Jan-16 Jul-16 Mar-16 Jun-16 Feb-16 Nov-16 Dec-16 Aug-16 Sep-16 Apr-16 May-16 Oct-16 Unique Visitor(million user) 7 6,1 6,1 6 5,7 5,7 5,4 6 5,3 5,3 5,3 5,2 5,1 5,1 5 4

  28. Slide 28: Advertisement Expenditures / GDP by Country

    ADVERTISEMENT EXPENDITURES/ GDP BY COUNTRY 2016 (billion USD) Turkey 0,54% Canada 0,60% Germany 0,63% China 0,70% Brazil 0,75% Japan 0,78% South 0,82% Korea Australia 0,88% UK 0,99% United 1,03% States 28

  29. Slide 29: Major Advertisers of Hürriyet

    Major Advertisers of Hürriyet Sectors FY2015 FY2016 Social 12% 15% Real Estate 14% 15% Tourism 10% 10% Perakendecilik 9% 9% Automotive 6% 7% Insert Distribution 5% 4% Education 5% 4% Finance 5% 4% Classifieds 5% 4% Public Organizations and Political Parties 3% 3% First 10 Total 73% 75% Others 27% 25

  30. Slide 30: Turkey Internet Penetration Trends

    TURKEY INTERNET PENETRATION TRENDS • Computer and Internet usage of individuals aged 16-74 were 54.9% and 58.8% respectively. • 76.3% of households have access to the Internet. 8 out of 10 households have Internet Access. • 96.9% of households have mobile phone (incl. smart phones) • The percentage

  31. Slide 31: Internet Is Still a Developing Segment in Turkey

    INTERNET IS STILL DEVELOPING SEGMENT IN TURKEY 92,60% 91,10% 88,50% 88% 86,40% 85,10% 82,20% 80,20% 72% 66,40% 65,60% 58% 52,20% UK Japan United Germany France Australia Spain Hungary Slovenia Brazil Italy Turkey China States • Right time to invest in online • Great “content” advantage through lever

  32. Slide 32: Platform Comparison in Turkey Dec 2015-Dec 2016

    PLATFORM COMPARISON IN TURKEY FROM DEC 2015-DEC 2016 Mobile 58,80% Dsktop 39,78% Tablet 3,42% • The share of the population in Turkey ages 16 to 74 who use the internet has nearly doubled since 2008, from 32.2% to 58.8% in 2016 • Mobile is growing significantly in recent years. • Most people today a

  33. Slide 33: Hürriyet Group Structure

    HÜRRİYET GROUP STRUCTURE Hürriyet Shareholder Structure Doğan Şirketler Grubu Holding A.Ş. 22,3 • Major share holder of Hurriyet % • Largest Turkish media conglomerate with core businesses of publishing and broadcating 77,7 • Listed in Borsa Istanbul % Doğan Şirketler Grubu Holding A.Ş. Free Float T

  34. Slide 34: FY2016 Highlights

    FY2016 HIGHLIGHTS  Consolidated Revenue decreased by 5% due to decrease in TME revenues.  Hürriyet Revenues-Excluding TME  Revenue decrease is 0.6%. Excluding revenue decline impact regarding the transfer of Dogan Haber Ajansı shares to Dogan Holding, revenue increased by 0.5%.  Print media decr

  35. Slide 35: Consolidated Financial Indicators

    CONSOLIDATED FINANCIAL INDICATORS YoY YoY Consolidated '000 TL 4Q16 12M16 Change Change Total Revenues 144.3 -7% 564.1 -5% Gross Profit 53.9 -14% 228.1 -11% Operating Profit/(Loss) -14.6 -32% 10.6 -53% EBITDA 5.6 -33% 53.6 -18% EBITDA Margin 3.9% (1.5pp) 9.5% (1.4pp) Net Income -32.8 13% -72.5 138%

  36. Slide 36: Consolidated Profit & Loss Statement – excluding TME

    CONSOLIDATED PROFIT & LOSS STATEMENT – excluding TME YoY % Mn TL 12M16 12M15 Change Total Revenues 534,6 538,0 -0,6% Cost of Sales -317,2 -308,7 2,7% Operating Expenses -195,3 -198,9 -1,8% Depreciation 35,7 39,2 -9,0% Amortised cost valuation income 6,5 6,7 -2,7% Adj. EBITDA 64,3 76,3 -15,7% EBITDA

  37. Slide 37: Ad Revenue Market in Turkey vs Hürriyet Ad Revenues

    AD REVENUE MARKET in TURKEY vs HÜRRİYET AD REVENUES 20% increase in Online Ad Revenue (excl Radikal) Newspaper Ad Market (mn TL) Online Ad Market (TL mn) Total Ad. Market (TL mn) 970 -8% 1.900 +16% 8.200 +10% 870 1.800 6.200 7.097 770 804 1.700 1.849 6.518 1.590 570 1.600 4.200 1.500 2.200 370 1.400

  38. Slide 38: Hürriyet Revenue Breakdown – excluding TME

    HÜRRİYET REVENUE BREAKDOWN – excluding TME 2015 DIGITAL 10% E-BUSINESS 7% PRINT 83% -2pp +1pp +1pp 2016 DIGITAL E-BUSINESS E-Business E-Business +37% 57% 11% 8% PRINT 81% 38

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