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DOĞAN ŞİRKETLER GRUBU HOLDİNG A.Ş.
Earnings Release • May 9, 2025
5903_rns_2025-05-09_7c095cbc-fcd9-4599-8570-7dd2f5db483d.pdf
Earnings Release
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Robust Set of Results from Strategic Core Businesses, while Challenges Persist for Other Business Lines
Doğan Holding reported 2.5 bn USD NAV, 19.0 bn TL Revenue, 1.8 bn TL EBITDA and 520 mn TL Net Loss as of 1Q 2025.
NAV Changes*:
Key Highlights of 1Q 2025:
- Our NAV is a tad lower vs 2024 year-end, as majority of our publicly listed assets were negatively impacted from the market volatility throughout the quarter
- Holding-only cash position almost remained stable at 646 million USD as of 1Q 2025, reflecting our continued strength in liquidity and financial discipline.
- As per our 2025 guidance, we are progressing in line with expectations across our strategic focus areas:
- ⎯ Renewable energy: performance continues to be solid with the kick off of European projects (Germany & Italy) and with the ongoing project development efforts in Turkiye.
- ⎯ Mining: Gümüştaş posted a 48% y/y growth in mineral production and 55% EBITDA margin in 1Q25—well above guidance—driven by rising commodity prices.
- ⎯ Digital financial services: growth trajectory remains consistent with our targets, Hepiyi Insurance notably outperforming expectations.
*Please see NAV table in the annex for detailed valuation information
- Dogan Holding reported 19 billion TL revenue, down by 22% vs same period last year. The main reason behind the 5.3 billion TL y/y consolidated revenue decline is Dogan Trend Automotive with 72% y/y drop (c. -8.1 billion TL) in revenues due to heavy regulatory environment. The second reason is Karel's 24% y/y decline in revenues (c. -1.0 billion TL) due to demand challenges that our key customers experience and limited passthru of the surge in COGS to topline.
- While prudent opex and cost controls enabled the protection of EBITDA margin, bottom line negatively impacted from inflationary-accounting repercussions. Compared to 164mn TL net monetary gain recorded in 1Q24, Dogan Holding suffered from 755mn TL net monetary loss, mostly attributable to finance and investments segment for having a robust equity positioning, which resulted in 520 million TL consolidated net loss in 1Q25
- Doğan Holding outperformed the BIST-100 Index in 1Q25, delivering 10% return compared to BIST-100's 2% decline. Foreign institutional investor share rose by 4 pp y/y, reaching 20% in 1Q25.
- In line with our strategy to expand into high-value, high-growth technologyenabled sectors that are aligned with new trends, we acquired a 25% stake in Daiichi for 15 mn USD in 1Q25 - including 21% from Karel for 12.6 mn USD and 4% from founders—to take a larger share in the fast-growing automotive cockpit electronics and infotainment technology market and support Karel during a challenging period. Daiichi is a leading provider of touch-screen infotainment systems for vehicles.
- We made advance payment for the the paid-in capital increase of D Investment Bank at the amount of c. 20 million USD in 1Q25 to fuel its growth and enhance its position in the financial services sector.
| Reported (mn TL) | 1Q24 | 1Q25 | y/y |
|---|---|---|---|
| Revenue | 24,349 | 19,039 | -22% |
| EBITDA | 2,220 | 1,790 | -19% |
| EBITDA margin | 9.1% | 9.4% | +0.3pp |
| Net Profit/Loss | 1,312 | -520 | n.m |
| Holding-only net cash (mn USD) |
696 | 646 | -7% |
Doğan Holding Key Financial Figures:
Key Financials Breakdown as per Business Lines, 1Q 2025:
Comment of Çağlar Göğüş, CEO:
Our portfolio of operations, mainly our strategic vs dynamic focus areas have significantly changed in recent years and are currently digesting the challenges that these changes bring. Our key focus in 2025 is to increase the performance of the new portfolio and fix the problematic areas. With this vision in mind, we started 2025 with solid operational progress across our strategic focus areas, despite persistent macroeconomic headwinds and regulatory shifts. As Doğan Holding, we continued to stay agile and focused, creating long-term value through disciplined capital allocation and a clear growth roadmap.
In the first quarter, Galata Wind took further step toward international expansion by progressing with its renewable energy investments in Europe, particularly in Italy and Germany on top of our ongoing project developments in Turkiye. These strategic moves strengthen our green energy footprint and position us for longterm sustainable and profitable growth in the region.
We also made notable headway in the mining sector with Gümüştaş delivering a strong margin performance and initiating the investment cycle under our USD 90 million CAPEX plan for three years. These investments will be utilized for both mineral processing facility capacity upgrades and exploration of research licenses. We are proud and optimistic in Gumustas' investments to unlock further value from its research licenses.
In digital financial services, Hepiyi Insurance outperformed expectations, expanding its market share and maintaining sector-leading cost efficiency. Currently, Hepiyi's market share in Motor Own Damage sector reached 4.3% in 1Q25 vs 1.9% same period last year.
We also reinforced our presence in next-generation automotive technologies through the acquisition of a 25% stake in Daiichi, a leading provider of automotive cockpit electronics and infotainment technology systems. This move not only strengthens our position in a high-margin, fast-growing segment but also supports the financial restructuring efforts of our industrial subsidiary, Karel.
Additionally, we have made advance payment for D Investment Bank's paid-in capital increase to accelerate its growth trajectory and deepen our presence in the financial services sector.
In addition, thanks to continuous focus on value-generation and relentless dedication to corporate governance practices, the share of institutional investors in our free float increased by 10pp y/y, and the share of foreign institutional investors has gone up by 4pp y/y, reaching 20%. Furthermore, with a newly approved share buyback program and dividend payout, we reaffirm our commitment to delivering sustainable shareholder returns.
While the first quarter consolidated results were impacted by the weaker demand and heavy regulatory environment experienced by especially Karel and Dogan Trend Automotive, the rest of our businesses performing quite solid. Therefore, we remain focused on growing our strategic core businesses, scaling capital-efficient platforms, smart-utilization of our strong net cash position and simplifying our portfolio—always with the goal of building value for all stakeholders and for NAV development.
Key Developments Across Business Lines 1-) Strategic Focus Areas:
Renewable Energy – Galata Wind
- Galata Wind production capacity unchanged at 297 MW as of March, while European expansion started, with projects in Italy and Germany. In addition, as of early May, we have increased capacity to 348 MW thanks to the addition of 2 sites. Our project development in Turkiye continues uninterrupted.
- Electricity generation slightly decreased by 4% y/y due to limited wind availability.
- Market Clearing Price improved by 18% y/y in 1Q25.
- As majority of COGS fixed, limited electricity production in 1Q25 pressured margins.
| Key Financials Reported (mn TL) |
1Q24 | 1Q25 | y/y |
|---|---|---|---|
| Revenue | 670 | 556 | -17% |
| EBITDA | 508 | 395 | -22% |
| EBITDA margin | 76% | 71% | -5pp |
| Net Profit | 288 | 134 | -54% |
Mining – Gümüştaş Mining
- Gümüştaş posted a 48% y/y growth in mineral production and 55% EBITDA margin in 1Q25—well above guidance—driven by rising commodity prices.
- 7 mn USD of the 90 mn USD CAPEX guidance for 2025–2027 was executed in 1Q25, with a strong focus on underground development to ensure longterm production continuity. These investments will be utilized for both mineral processing facility capacity upgrades and exploration of research licenses.
- Ongoing resource verification, expected to be completed during the summer, will guide future mine planning and support the company's longterm growth strategy.
| Key Financials Proforma* (mn TL) |
1Q25 |
|---|---|
| Revenue | 749 |
| EBITDA | 409 |
| EBITDA margin | 55% |
| Net Profit | 201 |
*Gumustas Mining started to be consolidated as of 4Q24, hence y/y comparison of financials cannot be presented
Digital Financial Services – Hepiyi Insurance
- AUM increased from 238 mn USD in 1Q24 to 533 mn USD in 1Q25, fueled by the company's advanced pricing algorithms and effective AI integration solidifying Hepiyi's position as a tech-driven leader in the insurance sector. During the same period, Hepiyi's share in the motor own damage market rose from 1.9% in 1Q24 to 4.3% in 1Q25.
- New regulations introduced in early 2025 reduced the cap on traffic insurance premiums from five to four times the company's equity, limiting the issuance capacity in the segment. Nevertheless, revenues increased by 96%, driven by strong momentum in all segments.
- Exceptional cost/revenue performance—well below sector levels continued to be a key driver of strong net profitability (cost to revenue: 2.5% vs 6.7% of sector average).
| Key Financials Reported (mn TL) |
1Q24 | 1Q25 | y/y |
|---|---|---|---|
| Revenue | 3,341 | 6,537 | 96% |
| Net Profit | 198 | 504 | 155% |
2-) Dynamic Focus Areas:
Electronics, Technology & Industry – Karel
- 1Q25 revenues amounted to 3,275 mn TL, while EBITDA 139 mn TL; net loss was at 352 mn TL.
- Renewed long-term contracts with major telecommunication companies—featuring price increases— will be effective as of April 1st and expected to improve profitability in the corporate projects segment.
- Organizational streamlining and efficiency programs are expected to ease working capital pressure and improve cost efficiency for electronic card manufacturing.
- 12.6 mn USD cash injection from the Daiichi stake sale is expected to support liquidity.
| Key Financials Reported (mn TL) |
1Q24 | 1Q25 | y/y |
|---|---|---|---|
| Revenue | 4,306 | 3,275 | -24% |
| EBITDA | 348 | 139 | -60% |
| EBITDA margin | 8% | 4% | -4pp |
| Net Loss | -154 | -352 | n.m |
Electronics, Technology & Industry– Sesa Packaging
- Share of exports rose to 56% in 1Q25, reflecting the company's strategic shift towards international markets amid intensified domestic competition.
- Premium product sales continued to grow, now accounting for 31% of total revenues in 1Q25 vs 27% in the same period last year. On the other hand, the mis-match between TL inflation and EUR-TL developments impacted the operational profitability negatively, as TL denominated operational expenses increased in line with TL inflation, while pricing of exported goods remained flattish.
- With no major capex needs beyond ongoing efficiency projects, given majority of capex finalized in the previos years. Focus remains on profitable growth and export-led performance.
| Key Financials Reported (mn TL) |
1Q24 | 1Q25 | y/y |
|---|---|---|---|
| Revenue | 1,162 | 970 | -17% |
| EBITDA | 181 | 81 | -55% |
| EBITDA margin | 16% | 8% | -8pp |
| Net Loss |
-3.6 | -0.3 | n.m |
Electronics, Technology & Industry - Ditaş
• Despite a sharp decline in vehicle production at key OEM customers, Ditaş generated positive EBITDA in 1Q25, supported by high-margin semifinished exports and operational efficiency measures.
- Aftermarket recovery gained traction with the introduction of fixed pricing and margin-focused cost control, leading to strong order intake across key markets.
- Profitability improved through pricing revisions in previously underperforming products, reflecting stronger aftermarket positioning and disciplined commercial strategy.
| Key Financials Reported (mn TL) |
1Q24 | 1Q25 | y/y |
|---|---|---|---|
| Revenue | 516 | 413 | -20% |
| EBITDA | -7 | 2 | n.m |
| EBITDA margin | n.m | 0.5% | n.m |
| Net Loss | -47 | -96 | n.m |
Automotive & Mobility – Doğan Trend
- Additional 10% tax on Chinese imports introduced at the end of 2024 and the increased localization requirements limited Special Consumption Tax benefits, impacting passenger car sales in 1Q25 negatively. As a reminder, since December 2024, the minimum local production rate required for vehicles to qualify for the SCT exemption has been increased from 20% to 40%.
- Cash flow was supported by momentum in second-hand vehicle sales, thanks to trade-in campaigns. Acceleration in rental fleet sales expected to contribute in the second half.
- Motorcycle production started in İzmir.
| Key Financials Reported (mn TL) |
1Q24 | 1Q25 | y/y |
|---|---|---|---|
| Revenue | 11,197 | 3,083 | -72% |
| EBITDA | 174 | -322 | n.m |
| EBITDA margin | 2% | n.m | n.m |
| Net Loss | -317 | -388 | 22% |
Buyback and Dividend Update
- A new share buyback program was approved at the 2024 General Assembly, with a maximum allocation of TRY 1.5 billion and a buyback limit of 100 million shares, aiming to support a stable share price formation.
- The summary of our 2025 buy-backs are as follows:
| Date | Amount Bought (Lot) Average Price (TL) Average Price (USD) Amount Bought (TL) Amount Bought (USD) | Share in Capital | ||||
|---|---|---|---|---|---|---|
| 21/03/2025 | 275,000 | 13.62 | 0.36 | 3,746,188 | 98,974 | 0.01% |
| 26/03/2025 | 760,000 | 14.91 | 0.39 | 11,330,232 | 298,725 | 0.03% |
| 28/03/2025 | 240,000 | 15.72 | 0.42 | 3,772,560 | 99,894 | 0.01% |
| 02/04/2025 | 235,000 | 15.72 | 0.42 | 3,804,204 | 100,492 | 0.01% |
| 03/04/2025 | 602,000 | 16.19 | 0.43 | 9,645,605 | 254,745 | 0.02% |
| 04/04/2025 | 695,500 | 16.40 | 0.43 | 11,404,330 | 301,331 | 0.03% |
| 07/04/2025 | 1,155,000 | 16.46 | 0.43 | 19,012,455 | 501,211 | 0.04% |
| 11/04/2025 | 335,615 | 16.51 | 0.44 | 5,540,265 | 146,153 | 0.01% |
| 2025 Total | 4,298,115 | 15.88 | 0.42 | 68,255,839 | 1,801,525 | 0.16% |
| Total Since Initiation | 44,302,953 | 1.69% |
• A gross dividend distribution of 800 million TL out of 2024 net distributable profit was approved at the General Assembly, corresponding to a 16.4% payout ratio. Payment is scheduled no later than September 30, 2025.
| (mn TL) | 1024 | 1025 | 1 |
|---|---|---|---|
| Sales | 24,349 | 19.039 | -22% |
| COGS | -20,852 | -16,094 | n.m |
| Gross Profit | 3.496 | 2.946 | -16% |
| Gross Margin | 14% | 15% | +1pp |
| Operating Expenses | -2,472 | -2,557 | n.m |
| Other Operating Inc./(Exp.), net | 1,665 | 1,926 | 16% |
| Share of Gain/(Loss) in Inv. Acc. for by the Equity Met. | -493 | -142 | n.m |
| Operating Profit / (Loss) | 2,196 | 2.173 | -1% |
| Income/(Expenses) from Investment Activities, net | 2,621 | 1,206 | -54% |
| Finance Income/(Expense), net | -2,837 | -2.414 | -15% |
| Monetary Gain/(Loss), net | 164 | -755 | n.m |
| Profit / (Loss) Before Taxation | 2,143 | 210 | -90% |
| Profit/(Loss) From Continuing Operations | 1,309 | -640 | n.m |
| Profit / (Loss) From Non-Continuing Operations | 0 | O | |
| Net Income | 1,309 | -640 | n.m |
| Net Income - Attributable to Parent Shares | 1,312 | -520 | n.m |
| EBITDA | 2,220 | 1,790 | -19% |
| EBITDA Margin | 9% | 9% |
Dogan Holding Consolidated Income Statement
| (mn TRY) | 31.12.2024 31.03.2025 | A | |
|---|---|---|---|
| Current Assets | 91,592 | 92,609 | 1% |
| Non-Current Assets | 62,129 | 60,978 | -2% |
| Total Assets | 153,722 | 153,588 | 0% |
| Current Liabilites | 53,750 | 54.912 | 2% |
| Non-Current Liabilities | 18,483 | 18,229 | -1% |
| Non-Controlling Interests | 11,682 | 11,565 | -1% |
| SH Equity, Parent | 69,808 | 68.882 | -1% |
| Total Liabilities | 153,722 | 153,588 | 0% |
| Cash & Marketable Securities * | 58,203 | 56,249 | -3% |
| S/T Debt | 22,133 | 21,509 | -3% |
| L/T Debt | 11,444 | 10,927 | -5% |
| Holding Solo Net Cash | 26,043 | 24,396 | -6% |
Dogan Holding Consolidated Balance Sheet
*Includes Financials Investments
Doğan Holding Net Asset Value Table
| 1Q25 | Valuation Method | DOHOL Stake |
Valuation (mn USD) |
DOHOL stake (mn USD) |
|---|---|---|---|---|
| Electricity Production | 255 | |||
| Boyabat HEPP | 33.00% | 0 | 0 | |
| Aslancık HEPP | 33.33% | 0 | 0 | |
| Galata Wind | Market Cap | 70.00% | 364 | 255 |
| Electronics, Technology & Industrials | 177 | |||
| Ditas | Market Cap | 68.24% | 29 | 20 |
| Doğan Dış Ticaret | Book Value | 100.00% | 4 | 4 |
| Sesa Packaging | EV/L12M EBITDA @7.94x | 70.00% | 93 | 65 |
| Karel Electronic | Market Cap | 40.00% | 184 | 73 |
| Daiichi | Transaction Value | 25.00% | 60 | 15 |
| Automotive | 33 | |||
| Doğan Trend Otomotiv | Book Value @ 1.9x | 100.00% | 33 | 33 |
| Finance and Investments | 694 | |||
| D Investment Bank | Book Value @ 1.5x | 100.00% | 36 | 36 |
| Doruk Factoring | Book Value @ 1.5x | 100.00% | 50 | 50 |
| Hepiyi Insurance | Book Value @ 6.1x | 85.00% | 687 | 584 |
| Öncü Private Equity | Value of Insider Shares | 100.00% | 23 | 23 |
| Internet and Entertainment | 203 | |||
| Kanal D Romania | EV/L12M EBITDA @3.8x | 100.00% | 124 | 124 |
| Glokal (Hepsi Emlak) | EV/L12M Revenue @7.4x | 79.22% | 101 | 80 |
| Real Estates | 260 | |||
| D Gayrimenkul | Independent Expert Valuation | 100.00% | 182 | 182 |
| D Yapı - Romania | Independent Expert Valuation | 100.00% | 23 | 23 |
| Dogan Holding Istanbul | Independent Expert Valuation | 100.00% | 8 | 8 |
| Kandilli Gayrimenkul | Independent Expert Valuation | 50.00% | 64 | 32 |
| M Investment | Independent Expert Valuation | 22.15% | 73 | 16 |
| Other | 90 | |||
| Milta Turizm | Book Value @1.6x | 100.00% | 89 | 89 |
| Doğan Yayıncılık | Transaction Value | 100.00% | 1 | 1 |
| Mining | 137 | |||
| Gümüştaş | Transaction Value | 75.00% | 164 | 123 |
| Doku | Transaction Value | 75.00% | 18 | 14 |
| Dogan Holding Solo Net Cash (1Q25) | 646 | |||
| Dogan Holding NAV | 2,494 | |||
| Doğan Holding Market Cap | 1,102 | |||
| NAV Discount | -56% |
Market Caps as of 1Q25
IR Contacts:
[email protected] +90 216 556 94 00
| Investor Relations Director | Investor Relations Manager |
|---|---|
| [email protected] | [email protected] |
Melda Öztoprak Özge Atay
Disclaimer:
The information contained in this release has been obtained from sources deemed reliable by Doğan Şirketler Grubu Holding A.Ş. ("Doğan Holding") and is provided solely for informational purposes. However, Doğan Holding makes no representations or warranties regarding the accuracy, completeness, or timeliness of this information. The presentation includes certain forward-looking statements and projections. These statements are based on the current assessments and assumptions of management and may differ due to changes in assumptions or other influencing factors. Doğan Holding undertakes no obligation to update these projections or assumptions. This presentation should not be considered as investment advice and does not constitute an offer, solicitation, or invitation to buy or sell shares of Doğan Holding or any Group companies. The content and distribution of this presentation must comply with applicable legal regulations. Doğan Holding, its Board Members, executives, and employees accept no liability for any damage or loss that may arise from the use of the content of this presentation.
Pursuant to the resolution of the Capital Markets Board ("CMB") dated 28.12.2023 and numbered 81/1820; it has been resolved that the provisions of TAS 29 (Financial Reporting in Hyperinflationary Economies) be implemented starting from the annual financial reports of issuers and capital market institutions that apply Turkish Accounting/Financial Reporting Standards and are subject to financial reporting regulations for the accounting periods starting from 31.12.2023. Doğan Holding has published its financial results in accordance with TAS 29 standards.
About Doğan Holding:
Adding value to the Turkish economy for 65 years, Doğan Şirketler Grubu Holding A.Ş. entered the business world when Honorary Chairperson Aydın Doğan registered with the Mecidiyeköy Tax Office in 1959 and founded his first automotive company in 1961. Today, Doğan Group companies play a pioneering role with their innovative vision in the fields of electricity generation, industry & trade, mining, automotive trade & marketing, finance & investment, internet & entertainment, and real estate.
Doğan Group's corporate and ethical values, which are implemented by all of its companies, set an example for other organizations in the business world. Aiming for global success in its production and commercial activities, Doğan Group closely monitors developments in Türkiye and abroad and conducts its operations efficiently through strategic collaborations with international groups.