Doğan Increases Market Value by 85% in 2012; Achieves Almost Double-Digit Growth
11.04.2013
Doğan Holding’s 2012 results and 2013 objectives were announced at a meeting attended by Chairwoman Begümhan Doğan Faralyalı and CEO Yahya Üzdiyen. In her speech, the Chairwoman underlined the fact that the world is going through significant changes, and that Turkey is keeping up with these changes in the best manner possible. Doğan Faralyalı said, “Doğan Group of Companies shall be among those making the best of the possibilities to come.”
In 2012, Doğan Holding increased its market value by 85%, while reporting a 46%increase in profits before interest, taxes and depreciation. Discussing how 2012 was an interesting year worldwide, Chairwoman Begümhan Doğan Faralyalı pointed out that negatives have turned into positives for Turkey. According to Doğan Faralyalı, “What we are really talking about here is the fact that Turkey is in a position to hit the one trillion dollar mark in the next few years in terms of its economy, bringing about domestic peace and enhancing its formidable geographic position through new relations. This is indeed very exciting for me.”
Doğan Group of Companies: at the heart of transformation
Underlining the fact that Turkey, along with the rest of the planet, is going through an interesting transformation process, Doğan Faralyalı said, “The world is experiencing an axis shift of historic proportions, and it is not just from the west to the east. There is also a shift from north to south, with South America and Africa entering the picture. During these changing times, in which we are impacted simultaneously by a number of major movements, two economic focal points are especially noteworthy: Media and Energy.”
Doğan Faralyalı explained Doğan Group’s approach to the Media and Energy industries. “Advertising investments have a long way to go in Turkey. This fact promises Doğan Group a major organic growth opportunity. Additionally, we are truly excited about the opportunities presented to our industry by the digital revolution. On the other hand, here at Doğan Group we continue searching for media investments abroad, in a world where national borders carry less and less significance. As for energy, our goal is to grow through a balanced portfolio. In this regard, we are still interested in renewable energy investments as well as opportunities in power generation and distribution. We are assessing opportunities not merely in Turkey, but across the region as well.”
Democracy: a focal point of social transformation
Touching upon the fact that the focal point of social transformation is indeed democracy, Doğan Faralyalı said, “Democracy requires free and quality media. In 2012 we reviewed and renewed Doğan Publishing and Broadcasting’s Principles, to ensure these principles are in harmony with the changing conditions. Furthermore, we established the Doğan Publishing and Broadcasting Board, a body responsible for the ultimate oversight of our universal principles. In 1999, we were the first media group to publish its principles, and in 2012 our pioneering spirit was evident once again. We will be delighted if these steps contribute to the development of democracy in Turkey. Growing with Turkey, and contributing to Turkey’s growth with its employees, customers and stakeholders, makes us confident and excited about future prospects.”
Doğan Group posts profits in the amount of 326MTL before interest, taxes and depreciation
Emphasizing the fact that Doğan Group has exhibited three consecutive years of consistent growth, Doğan Group CEO Yahya Üzdiyen touched on last year’s financial results: “Efficiency gains and new investments helped us increase our profit to 326MTL before interest, depreciation and taxes. Our equity declined somewhat due to the payments we made in 2011 within the scope of Tax Amnesty. But thanks to the healthy growth we accomplished in 2012, we have taken significant steps toward making up for this difference.”
In 2012, Doğan invested 925MTL
Üzdiyen noted that Doğan Group increased its acquisitions and investments for organic growth purposes: “These investments are a reflection of Doğan Group’s determination to grow, particularly in the energy sector. Within this scope, w can list the Şah and Mersin wind energy plants acquired in June. As a result, our investments reached 925 million TL in 2012, an increase of 58%.”
Üzdiyen also announced Doğan Group’s 2013 objectives for the sectors it operates in. Underlining the fact that Doğan Group will work towards enhancing the scale of existing investments in media, energy and retail industries in order to to create more value, Üzdiyen added that Doğan Group will seek opportunities in all generation and distribution segments for energy, look abroad for media possibilities, and focus on the domestic market for retail.
Newspapers and magazines: the foundation of a large ecosystem
In reviewing Doğan Group’s performance in its relevant activity fields, Üzdiyen said the following about the media portfolio: “Our newspapers and magazines are no longer merely newspapers and magazines; they have become the foundation of a large ecosystem. For instance, Hürriyet is now Hürriyet World, and reaches a large majority of those with an Internet presence in Turkey, 6.5 million times each day. Eight million users watch 35 million videos on Web TV every month. 125,000 users read the Hürriyet e-paper on their tablets every week. What’s more, we reach the masses via our vertical brands under the Hürriyet World umbrella, such as Hürriyet Family, Hürriyet Real Estate, Hürriyet Automobiles, Yeni Bir İş (career site), BumeranG, Bumads and Yakala.co. Our strength, in terms of access and diversity, allows for advertising on a 360-degree basis and greatly increases our advertisement revenue.”
Doğan hopeful about oil exploration and production
Üzdiyen discussed the company’s future plans in the energy sector, saying the following about Northern Iraq:
“Our intention is to make oil exploration and production one of our energy portfolio’s most important pillars. Currently, we partner with a company that is dominant in Northern Iraq, and we are proceeding with test production of the oil we discovered in 2012. Our objective is to become a medium-scale player in oil production. Therefore, we will seek opportunities not only in Northern Iraq, but in other oil-rich regions as well.”
136 D&R’s by the end of 2013
Noting that the retail industry will be one of the fastest-growing sectors in Turkey in the coming term, in line with urbanization and consistent growth, Üzdiyen commented on Doğan Group’s retail activities:
“With the D&R brand, Doğan Group is Turkey’s undisputed leader in the areas of entertainment and cultural products, which are two of the retail sector’s fastest-growing branches. 2012 was a good year for D&R: by year’s end we were delivering services to 1M customers via 126 stores with a total area of 48,000 square meters in 26 cities. In 2013 we shall maintain our growth strategy, and . we are working on projects that will allow us to further D&R’s leading position. Also, we are actively seeking partnership or acquisition options to complement our activities, and plan to invest in the online entertainment retail business. By year’s end, our objective is to attain 136 stores with a total area of 54,000 square meters.”
Doğan Organic is Turkey’s only organic dairy producer on an industrial scale
Discussing Doğan Organik Ürünler A.Ş., which produces close to 85%of Turkey’s organic raw milk and has organized the entire “private brand” organic dairy concept in Turkey’s biggest markets, Üzdiyen said:
“With its agriculture-based sustainable development model, Doğan Organic has become a paradigm for sustainable agriculture and social transformation. Within the scope of this model, which has received many national and international social responsibility awards, of the 100 families we have trained and collaborated with, 20 are engaged in livestock breeding and 80 in vegetative production. We oversee the entire process and provide continuous support to these families via training courses, and by purchasing all of the organic milk that they produce. When you add in the milk from our own livestock, Doğan Organic Products’ total production makes it Turkey’s only organic milk producer on an industrial scale.”
Touching briefly on the fact that the group’s industrial companies continue to operate as important players in their relevant sectors, Üzdiyen said, “Milta, our affiliate in the tourism sector, has reached agreements to lay the foundations for several important projects this year, in addition to operating a variety of marinas and resorts.”
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