Investor Presentation

Transcription

Investor Presentation
Investor Presentation
Helsinki, Stockholm, Vienna, Frankfurt
February 18-20; 2008
1
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 independently verified. No
representation or warranty express or implied is made as to and no reliance should be placed on,
the accuracy, completeness, correctness or fairness of the information or opinions contained
herein. Neither the company nor any of its affiliates, advisors or representatives shall have any
liability whatsoever (for negligence or otherwise) with respect to any loss howsoever arising from
any use by third parties of this presentation or its contents or otherwise arising in connection with
it.
•
Turkish ad market figures are estimates of DYH; based on currently available data. Ad market
statistics may show inconsistency with IFRS figures.
•
TME P&L figures were consolidated starting from 2Q07. Therefore 9M consolidated results
include only 2Q and 3Q results of TME. Balance sheet figures include TME.
2
Contents
• Corporate Overview …………………………………… 4
•
Ad Market Trends ..................................................... 10
• Business Overview ……………………………………. 14
• Publishing ……………………………………………… 16
• Printing ………………………………………………… 23
• Online ………………………………………………….. 25
• TME Outlook After the Acquisition …………………… 34
• 2008 Guidance for Hurriyet domestic operations ….. 38
• 9M Financial Review ………………………………....... 42
• Back up slides …………………………………………. 47
3
Corporate Overview
4
Corporate Structure
Doğan Yayın Holding (DYH)
Major shareholder of Hurriyet.
Largest Turkish media conglomerate, with core
businesses of publishing and broadcasting.
Total ad market share of 42%.
60%
Listed in Istanbul Stock Exchange.
Hürriyet
#1 publishing & printing group in Turkey.
41% ad market share among newspapers.
#1 Turkish news website.
Listed in ISE since 1992 with a free float of 40% and
market capitalization of around $ 1 bn.
67.3%
Trader Media East (TME)
#1 print & online classified company in Russia and
Eastern Europe.
Listed in London Stock Exchange with a free float of
32.7%
100%
Printing Assets
7 newspaper and ofset printing plants in Turkey and
1 printing plant Germany.
5
# 1 media company of Turkey
# 1 classified advertising company of
Russia, CIS, Baltics and Eastern Europe
DDo you k
o yo knnow that
ow th Hür
iinnthe u
thesseennsseethataitt Hürrriiyyeettiissuunnique
t
ique
nnewspape
t itiisstthheeonly
ewspaperrin thha
o
n
l
y
e
w
••increas in the woorrld with
ld with: :
inc
ing
••highreesasingcciirrccuula
t
i
l
a
tioonn;
hig t m
aad mahrekst maarrkkeettsshhaare in; ne
d markeet;
re in newwspaper
t;
spaper
••a new
a newssppoortal be
in
r
lo
loccaallwweebbsite,tal beinggth
theem
moossttvviisisited
s
i
t
e,
aall at th
ted
ll at theesame t
same tiim
mee
6
Milestones in Hürriyet’s history
Started
classifieds,
still leading
with 65%
market share
1948
1954
Established
IPO of 10%
in ISE (at 70
mn $ market
cap.)
1969
Operations
in Germany
started
1992
Ad revenues
reached $
100 mn
1994
6 printing
plants were
structured
under DPC
1996
Shares
acquired by
Doğan Group
1997
First online
move
Business title
“Referans”
was launched
2002
Printing plant
in Frankfurt
opened.
Ad revenues
reached $
250 mn
2004
2005
Free float
reached
40%
2007
Online
classifieds
started
TME
acquisition
7
Milestones in TME history
The first issue
of Iz Ruk v
Ruki came out
in Moscow
1992
1993
oouu t
y
o
y
DDo
tthhaat
w
o
kknnowre
e ly
wweeaarn
eenttly
r
r
u
r
ccur tinngg
a i
s
ooppeerra4t cciittiiees
0
iinn1104ssiiaa??
u s
iinnRRus
Pronto Moscow
acquired by
Trader
Classified Media
TME’s IPO in
London Stock
Exchange
Online
operations
started
2004
1998
2005
2006
2007
Iz Ruk v Ruki
started to
coming out in
regions
Croatia
joined the
group
8
TME established,
comprising
former operations
of Trader
Classified Media
TME
acquisition
by Hurriyet
10 countries, 350 mn population and over US$ 10 bn ad
market…
Russia
Population (mn)
2006 revenue (US$m)
2006 EBITDA (US$m)
EBITDA Margin
CIS & Baltics
142
134
47
35%
Population (mn)
2006 revenue (US$m)
2006 EBITDA (US$m)
EBITDA Margin
72
24
6
27%
Eastern Europe
Population (mn)
2006 revenue (US$m)
2006 EBITDA (US$m)
EBITDA Margin
53
54
11
21%
Russia
Lithuania
Belarus
Poland
Turkey
Population (mn)
2006 revenue (US$m)
2006 EBITDA (US$m)
EBITDA Margin
Ukraine
72
442
102
23%
Slovenia
Hungary
Croatia
Turkey
9
Kazakhstan
Ad Market Trends
10
A region with high growth media landscape, and with further
high potential of growth…
2003-2007 CAGR of advertising spend
36%
32%
Countries where Hurriyet & TME are present
Some Western European countries
30%
20%
10%
Ukraine
Russia
Turkey
Very high growth
in the region
we are operating
9%
Croatia Hungary
Spain
4%
4%
UK
Italy
2%
2%
France Germany
Source: ZenithOptimedia.
Classified Spend per capita - 2006 ($)
15,6
16,3
13,3
3,6
1,2
1,4
Ukraine Russia
3,7
But still very big
potential for
growth…
4,7
1
Turkey Poland Croatia Hungary Spain
11
France
UK
Potential of EU triggered growth
Ad spend / GDP
2,5%
2,0%
1,5%
1,0%
0,5%
0,0%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Hungary
Czech Rep.
Poland
Bulgaria
Turkey
Source: ZenithOptimedia
For the new EU members, ad spending gained considerable momentum after the initiation of
membership negotiations. Hence, the EU membership prospect offers great potential to
growth for Turkish ad market.
12
Turkish advertising market
6000
0,65%
Ad spend (YTL mn)
Ad spend/GDP
0,56%
0,52%
5000
0,55%
DDo
oyou
th
thaat youkknnow
HHür t
ow
r
ü
i
r
y
th
t eehiriyeetthha
g
ppoh
wwerhighheest ass
o
aam errrat st
moong aitioo
nnew
ngoth
ther
iin tewsp
spaapeo
rrs er
n
p
h
e
e
t
wwor he
s
orld
?
ld?
0,40%
4000
0,42%
0,45%
0,47%
0,46%
3775
3262
0,35%
0,37%
0,37%
3000
2726
0,25%
2231
Ad spend/GDP
Ad spend (YTL mn)
0,50%
1814
2000
0,15%
1319
1090
1000
701
656
0,05%
-0,05%
0
2000
2001
2002
2003
The share of Hürriyet in
Turkish advertising market*
2004
2005
2006
2007E
2008F
Outdoor;
5,6%
Cinema;
1,2%
New spapers
; 33,9%
TV; 51,5%
Radio; 3,9%
*As of 9M07.
Magazine;
3,9%
13
Hürriyet;
40,7%
Others;
59,3%
Business Overview
14
Business Structure
Publishing
(82%)*
Printing
(15%)*
Hürriyet Germany
* As of 9M07.
15
Online
(3%)*
Publishing
16
Circulation in Turkey
6
5
4
3
2
1
0
Total
0,7
Hürriyet
0,6
0,5
0,4
0,3
0,2
99
00
01
02
03
04
05
06
Hurriyet
Total
Avg. daily circulation (mn)
DDo
oy
ttha yoouukkn
ht
o
tthe atTTuurrkenoww
h 5
ky
ccirce 5tthhlar eyiiss
ircuula largges
m
maark lattiioon estt
EEur rkeettin n
uroope in
pe??
Turkey is one of the few markets with increasing circulation (10% average growth in last
5 years).
Cover prices are low compared to Europe. Hürriyet cover price is 35-40 Ykr in
weekdays, 50 Ykr in weekends.
17
Hürriyet growth model
Regional
Editions &
Inserts
Periodic
Supplements
Main title
Economics
Internet
Differentiators
Core business - high growth, high
margin
Strong brand with high brand awareness
Penetrate into new reader and
advertiser base
Attractive reader profile
Most influential
Premium ad price strategy
Diversify the product portfolio
Flexible cost base
Leverage a proven brand into new revenue streams
18
Hürriyet: Supplements and Regional Editions
w
nnoow
k
k of f
yyoouu4%
od
o
DDo t 444% a
dmss
t
a
t iyeet a
e
th
a
t
s
thurrrriy ess stem
HHuenuue
en
rreevvm
nntsts l
e
o
m
eonaal
frfrom
le
m
p
e
p
l
p egiion
su
sunpddrrengs??
aan tio ns
o
eeddiiti
19
Main publications of TME
Russia & CIS
Eastern Europe
4 CIS countries and 122 cities
Main titles: Iz Ruk v Ruki and Aviso
Main verticals: Rabota, Photo
Nedvizhimost, Avto
Iz Ruk v Ruki:
Daily generalist newspaper
Annual circulation of 53 million copies
One of the most well known brands
3 Eastern Europe countries: Hungary,
Croatia, Poland
17 publications
Main title: Expressz, Oglasnik, Auto Bit
Expressz:
Daily generalist newspaper & 5
weekly verticals
Undoubtely market leader
Oglasnik:
The leading daily generalist
newspaper with over 60% share
Five editions each week
89% Brand recognition in Russia
20
TME revenue model
Vehicles
Real
Estate
Jobs
Household
Goods
Sellers’ Side
Buyers’ Side
Classified Ads (31%)
Display Ads (45%)
Basic line
advertisements
Inventory
advertising
Pay for prominence
Brand advertising
Run ‘til it sells
Online banners
Priority/visibility
products
Powerpages
Services & ONLINE
(17%)
Paid lines/call
centre priority
(premium line)
Circulation &
Paid Access (7%)
Cover price
Home delivery/
subscription
Paid SMS (for ad
placement/
renewal)
Prepaid cards
Inserts
Sponsored text
links
Display and classified ads are the major revenue generators
21
TME growth model
Generalist
Verticals
New
Markets
Online
Economics
Differentiators
Strong brands with high brand
awareness
Core business - high growth, high margin
High cash flow generation
Local markets and rich local content
Low capital intensity
Strong local sales force
Leveraging the same content through
different types of media
Leverage a proven business model for high growth markets
22
DDo
oyyoou
th
a
th t ukkno
PPro ateedditionoww
it n
n
aareronto
toMMosionssoof
reddis
oc
scooww f
iin 7
tsr
i
i
trb
n
RRus 70000ccitiibuute
tedd
ssisa
e
i
u
t
s
i
BBal ia, ,CI esin
CISSanin
atlitc
ics?
andd
s?
Printing
23
Printing
2006 Signature Breakdown
Leading commercial printing company in
Turkey, printing mainly magazines and inserts.
Other
9%
Day print capacity of 5 mn signatures;
capacity utilization of 75%.
Magazines
51%
Insert
40%
2006 Revenues of $ 40 mn; EBITDA margin
of 15%.
Mn YTL
FY06
9M06
9M07
Revenues
56.6
44.3
51.8
%16.9
EBITDA
8.5
7.4
8.9
%19.3
15%
17%
17%
-
EBITDA margin
24
Online
25
Our region is immature in internet
the leading
print classified
company
From...
to become...
the leading
online
community and
classified player
of the Eastern
Europe and CIS
region
58%
2006 internet penetration rates
33%
Right time to invest in online
Great “content” advantage through
32%
27%
21%
Croatia
Hungary
Russia
Poland
leveraging print
Target is to achieve “clear
leadership position” in all markets
18%
Turkey
West Europe
26
Online business: #1 newsportal in Turkey, as well as a wide
range of classifieds and community websites in the whole
Classifieds
News
Portals
Community
Generalist
Turkey
Russia & CIS
Hungary
1Q 08
1Q 08
2Q 08
2Q 08
1Q 08
Poland
Croatia
Slovenia,
Serbia,
Bosnia
19 leading classified websites in real estate, auto, recruitment and general classifieds
New launches are planned in Russia and Hungary.
27
Leading online classified brands
Croatia
Russia
Top classifieds site in
Croatia
106 K ads
214 K UMVs
Leader in generalist classifieds
1.2 mn ads
1.9 mn UMVs
Top jobs site in Russia
186 K ads
2,6 mn UMVs
Warsaw
Competency
Center
Poland
One of the biggest generalist
website in Poland
239 K ads
248 K UMVs
Top recruitment site in
Croatia
4 K ads
87 K UMVs
Centralized software
development
One of the biggest real
estate site in Croatia
16 K ads
42 K UMVs
One of the biggest auto
verticals in Poland
81 K ads
920 K UMVs
Top auto site in Croatia
10 K ads
97 K UMVs
Slovenia
Leading property site in Poland
411 K ads
702 K UMVs
Leading jobs portal in Slovenia
730 ads
93 K UMVs
One of the biggest machine
site in Poland
16 K ads
47 K UMVs
Turkey
A leading job portal in Turkey
2.2 mn UMVs, 5,5 K ads
Hungary
Leading property site in Turkey
820 K UMVs, 290 K ads
Top classifieds website in Hungary
336 K ads
1,1 mn UMVs
*2007 September figures
28
Recently launched auto web site
425 K UMVs, 9 K ads
hurriyet.com “A success story”
Leading news portal which is one of the most visited websites in
Turkey and the 10th mostly visited newsportal in the world.
Not only a news portal, a platform having extensive user originated
content
1000 mn page views & 14 mn unique visitors as of 2007 year-end.
Ad revenue growth of around 200%
Communities under hurriyet.com.tr
Video & photo sharing websites
Magazine news
Economic and stock market news including
charts & financial information
Tourism classifieds including useful
information about hotels and holiday sites
Independent community websites
29
BLOG – editorial content
sharing websites
Sport news
Top ten places – social website
Tv & Cinema guide
Hurriyet.com.tr reached 14 mn UMV
PAGE VIEW
UNIQUE VISITOR
1047
mn.
1110
Page View
Unique visitor
13,71
mn.
14,5
13,5
12,5
11,5
9,5
8,5
510
7,5
6,5
310
5,5
newsportal
started in 1997.
reached 14 mn UMV as of the end of 2007.
began to yield positive EBITDA in 2007.
30
Nov-07
Sep-07
Jul-07
May-07
Mar-07
Jan-07
Nov-06
Sep-06
Jul-06
May-06
4,5
Mar-06
110
mn
10,5
710
Jan-06
mn
910
HURRIYET EMLAK.COM & OTO.COM
Hurriyet emlak.com revenue growth
22%
real estate website
started in March
2006.
924 K UMV as of
2007 year-end.
began to yield
positive EBITDA in
2007.
23%
26%
86%
17%
72%
2Q06
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
E
:
vehicle website
started in May 2007
580 K UMV.
job website
1,3 mn UMV
36% revenue increase in 2007.
31
Rapid growth in online
Online
1,7%
2006
2007E
Print
98,3%
Print
96,0%
Online
5,3%
Online
2006
Print
94,7%
Online
7%
Online
4,0%
2008E
Reach 20% by 2012,
although strong organic
growth continues in
newspaper segment
Print
93%
Online
10,5%
8,0%
2008E
2007E
Print
89,5%
Print
92,0%
32
Reach 20% by
2012, although
strong organic
growth continues in
print
Hurriyet online revenues will continue to grow substantially…
Hürriyet online revenue growth*
100%
150%
34% CAGR
2003
2004
2005
2006
2007E 2008E
DDo you kn
o yo knoowwthat hu
that hurrrriiyet.com
iissTurku
yet.co
Turkeeyy’s’sm
o
s
wwebsite wit mosttvviisisitteeddTTuurkishm
ebsite withh14 milli
rkish
o
1
n
4
U
M
m
M
o
i
r
ll
e
i
o
o
n UMVVs.s.
Moreovveerr, ,this mak
t
e
h
s
i
T
s
u
makes Turrkey
tthhe only co
key
e only couuntry w
n
try witithhaa
nneewsporta
l ma
wsp
ttrraffic.ortal makkiinnggtthheehhig
ighheestst
affic.
* Excludes TME data.
33
TME Outlook After the Acquisition
34
Efficiency enhancing measures in TME
• Paris headquarters are moving to İstanbul. This is expected to save around
40% in corporate expenses.
• New senior management in place. New CEO will be appointed soon.
• The loan restructuring has been completed, which is expected to save taxes
by USD 2 mn per year.
• Legal restructuring is still continuing.
• The effective tax rate will decline from around 50% to around 35%.
• Synergy in newsprint purchases: Negotiations with newsprint suppliers to
combine TME purchases with Dogan Group’s contracts are continuing.
• New launches on internet continues. Job.ru was commercially launched as of
February 6th; domaina.ru and automania.ru are expected to be commercial in
1Q08.
• Software development center in Warsow will be relocated in Istanbul
progressively.
35
Revenue growth exceeded guidances
Acquisition announced at 10 $
per share
IPO at 13 $ per share
18,8%
17,7%
15,9%
13,9%
12-14% growth
guidance of TME
management for 2007
8,2%
6,5%
2,9%
Q1
Q2
Q3
Q4
Q1
Q2
2007
2006
36
Q3
DDo
oyyoou
IIz R
z Ruk ukknnoow t
m
that
moost pukvvRRukw h
ppap st poopu ukiiis tat
is h
p la
ae
bbra perrwwithularraads thee
rannd ith89% ds
in
inRRu drreeccog 89%
ogni
bbra usssisa
rannd iaaandntiito
ionn
in
inMMo drreeccog nd9944%
%
osc
scooww? ognnitiito
n
i
o
?
n
What about 2008?
Mn USD
Revenues
Online share in
total revenues
Operational
EBITDA
Operational
EBITDA margin
Consolidated
EBITDA
Consolidated
EBITDA margin
Growth in USD
Organic Growth
terms
2008 guidance
(9M07 vs 9M06)
(9M07 vs 9M06)
2006FY
9M06
9M07
211,4
152,0
200,4
+ 31.9%
+ 17.5%
18% - 22%
organic growth
4,3%
4,2%
5,9%
-
-
9%
65,2
45,0
56,3
+ 25,1%
-
-
30,9%
29,6%
28,1%
-
-
-
57,3
39,6
47,4
+ 20,0%
-
-
-
Unchanged
compared to
2007
27,1%
26,0%
23,7%
-
2007 growth guidance was set as 12-14%; which was largely exceeded, as the organic growth
was as high as 17.5% in 9M07 and there was no major change in the growth outlook in the last
quarter of 2007.
37
2008 Guidance for Hurriyet domestic operations
38
Hürriyet domestic operations in 2008
2006FY
9M06
9M07
Growth
(9M07 vs 9M06)
2008 guidance
380
278
292
5,2%
15%
Online/total ad revenue
1,7%
2,0%
4,0%
-
7%
EBITDA margin
23,1%
24,7%
19,2%
Mn YTL
Ad revenues
3-4 pp increase
compared to 2007
DDo
oy
oour yoouukkno
u p
nw
UUkr r puubbllicaowtthhaat
A
ic t
ka
cclas raiinnee, ,is atiioonnint Avviissoo,
,
la s
i
t
tthhe ssiififieeddais thheebbign
w
d
ig
ssiizee woorrlldd, iadppaaperggeesstt
zeaand , innte periin
r s n
ndad
m
advolterm
voluum sooff
mee. .
39
2008 outlook for Hurriyet domestic operations
• There has been a recovery in Turkey’s ad market in the last quarter of
2007, driven by CB rate cuts.
• The CB is expected to continue to reduce interest rates in 2008 as well,
though not excessively. Hurriyet’s ad revenues are expected to benefit
from the rate cuts in 2008.
• Online revenues in domestic operations are targeted to grow by around
100% in 2008.
• Promotion activities are expected to diminish considerably in 2008,
alleviating the pressure on the cost side.
• High growth in ad revenues, together with lower promotions are
expected to lead to improved margins in 2008.
40
Our Strategy is
• To keep our 40% print market share position.
• To develop our internet both organically and through acquisitions;
strengthen our leading position in both classifieds and news.
Our Strategy is
•To be the leading community and classified website in the 10 countries
we are operating.
• Consolidate the market share and become clear market leaders in
every segment and every country we operate.
41
9M Financial Review
42
9M07 Consolidated IFRS Results
FY06
1Q07
2Q07
3Q07
3Q06
632
374
6
81
118
53
141
78
4
23
31
5
265
183
9
29
30
14
254
164
10
30
36
15
151
86
2
18
32
12
%Ch.
(3Q 07/06)
68%
91%
351%
64%
10%
21%
-545
-184
-111
-68
-49
-133
-138
-49
-27
-23
-12
-28
-221
-68
-53
-33
-16
-52
-215
-65
-54
-35
-15
-46
-130
-49
-25
-12
-12
-32
Operating Profit
87
2
44
39
O.Operating Income (Net)
Financial Expense*
Minority
38
-13
1
3
2
0
-7
15
-2
Profit Before Tax
Tax
114
-10
7
-1
Net Profit
104
Depreciation
Amortised cost valuation
Adj.EBITDA
(YTL mn)
Total Revenues
Ad Revenues (print)*
Ad Revenues (online)
Circulation Revenues
Printing Revenues
Other Revenues
Total Costs
Raw material
Personnel
Sales and marketing
Depreciation
Other
EBITDA Margin
Net Profit Margin
9M07
9M06
659
425
23
82
97
33
474
272
5
62
90
44
%Ch.
(9M 07/06)
39%
56%
319%
32%
8%
-25%
65%
34%
113%
202%
20%
43%
-574
-182
-133
-91
-43
-125
-401
-137
-74
-49
-36
-105
43%
33%
79%
88%
19%
20%
21
88%
85
73
16%
9
18
-2
8
1
0
7%
-
6
34
-5
36
-14
1
-84%
-
49
-15
64
-19
30
-5
114%
-
120
-34
96
-5
26%
-
6
34
44
25
80%
85
90
-6%
49
10
146
12
3
17
16
3
63
15
3
57
12
4
36
20%
-11%
56%
43
9
137
36
8
117
20%
16%
17%
23,1%
16,5%
12,2%
4,4%
23,9%
13,0%
22,4%
17,5%
24,2%
16,4%
20,8%
12,9%
24,7%
19,0%
* Excludes amortized cost valuation income, which is part of ad revenues classified under interest income according to IFRS
regulations.
43
Net Cash Position
(000 YTL)
Cash and Equivalents
2006
164,9
9M06
146,2
9M07
162,3
S.T Bank Borrowings
L.T Bank Borrowings
7,1
39,0
13,9
34,0
27,2
545,4
Net Cash
118,8
98,3
-410,3
Investments
Supplier Loans
124,1
93,5
61,8
56,6
46,4
103,5
Net debt position of YTL 410 mn includes TME’s net debt of YTL 134 mn.
Hürriyet’s capex budget for 2007 is fully realized in the first nine months.
44
Revenue Growth by Regions – TME standalone
Mn USD
9M06
9M07
Growth in USD terms (9M07
vs 9M06)
Russia
95,4
132,7
+ 39.0%
Moscow
50,0
60,4
+ 20.8%
Other Russia
45,4
72,2
+ 59.0%
CIS
16,4
24,0
+ 46.1%
CEE
40,1
43,8
+ 9.2%
Total
152,0
200,4
+ 31.9%
Revenue Breakdown by Regions
CEE
26%
CEE
22%
Moscow
33%
CIS
11%
9M06
Moscow
30%
CIS
12%
Other
Russia
30%
9M07
45
Other
Russia
36%
EBITDA by Regions – TME standalone
Mn USD
9M06
9M07
Growth in USD terms
(9M07 vs 9M06)
Russia
32.1
44.2
+ 37.6%
Moscow
24.0
24.9
+ 3.7%
Other Russia
8.1
19.3
+ 137.6%
CIS
4,2
5.3
+ 27.4%
CEE
8.7
6.7
- 23.2%
Operational EBITDA
45.0
56.2
+ 24.9%
Consolidated EBITDA
39.6
47.4
+ 19.8%
EBITDA Breakdown by Regions
CEE
19%
CIS
9%
CIS
9%
CEE
12%
Moscow
45%
Moscow
54%
Other
Russia
18%
Other
Russia
34%
9M06
46
9M07
Back up slides
47
* as of 29.11.2007
HURGZ
48
ISE-100
12.01.08
12.12.07
12.11.07
12.10.07
12.09.07
12.08.07
12.07.07
12.06.07
12.05.07
12.04.07
12.03.07
12.02.07
2,50
12.01.2008
12.12.2007
12.11.2007
12.10.2007
12.09.2007
12.08.2007
12.07.2007
12.06.2007
160
12.05.2007
12.04.2007
12.03.2007
12.02.2007
Valuation
HURGZ
4,50
Max:4.36
4,00
3,50
3,00
Min:2.78
2,00
Relative Performance (12-months)
140
120
100
98
80
60
66
Corporate Governance & Credit Rating
Proven track record of shareholder value and corporate
governance principles since 1992
Fitch rating for Hürriyet as of July 2007:
Foreign Currency – BB (stable outlook)
Local Currency
Long term BB (stable outlook)
National AA Corporate governance rating of 8.0 (on a scale of 10) by ISS
Corporate Services, on September 2007.
Moody’s corporate rating is expected to be announced soon.
49
Newsprint prices
Average Newsprint Costs (US$)
Newsprint
800
774
750
700
747
661
600
However,
prices has been
declining in 3Q07.
684
650
619
550
563
500
450
492
501
2002
2003
400
2000
2001
2004
2005
* Including all costs and expenses like custom duties, transportation etc.
50
prices reached the
last 6 years’
highest.
2006
9M07
Hürriyet’s major advertisers
Sectors
2006FY
9M06
9M07
Classifieds (incl. HR)
15%
16%
16%
Real Estate
13%
13%
13%
Automotive
14%
14%
11%
Finance
7%
6%
8%
Tourism
7%
7%
8%
Retail
6%
7%
6%
Social
5%
5%
5%
Education
3%
3%
4%
Communication
2%
2%
3%
State Enterprises & Political Parties
1%
1%
3%
First 10 Total
73%
74%
75%
Others
27%
26%
25%
51
Weakness in the
automotive sector was
reflected as a
considerable decline in
ad spending of this
sector.
Real estate, finance,
tourism were the
strongest sectors in
terms of ad spending.
Contact Information
Investor Contact
http://www.hurriyetcorporate.com
http://www.dyh.com.tr
http://www.tmeast.com
e-mail: ir@hurriyet.com.tr
tel: (90) 212 677 0850
52