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| Investor Relations |
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FAQ
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FREQUENTLY ASKED QUESTIONS: 1. What is the size of Turkish ad market? The Turkish ad market is estimated to be amounted to TL 3.4 bn (USD 2.6) in 2008, compared to TL 3.3 bn (USD 2.5 bn in 2007). In the ad market, the share of TVs is estimated to be TL 1.7 bn (USD 1.3 bn), newspapers TL 986 mn (USD 760 mn), outdoor TL 218 mn (USD 170 mn), internet TL 186 mn (USD 145 mn), magazines TL 124 mn (USD 95 mn), radio TL 113 mn (USD 87 mn) and cinema TL 44 mn (USD 34 mn), as of 2008 year-end. In the first half of 2009, on the other hand, the ad market is estimated to have contracted by 26% with respect to the same period of last year and to have amounted to TL 1.345 million (USD 875 mn). In the first half of 2008, the ad market size was around TL 1,8 bn (USD 1.5 bn). During the first half of 2009, the share of TVs is estimated to be TL 644 mn (USD 419 mn), newspapers TL 388 mn (USD 252 mn), outdoor TL 92 mn (USD 60 mn), internet TL 92 mn (USD 60 mn), magazines TL 39 mn (USD 25 mn), radio TL 46 mn (USD 30 mn) and cinema TL 26 mn (USD 17 mn). 2. Which are the major advertising sectors for Hurriyet? The advertisers who made the highest ad spending in 2008 were real estate, automotive, retail, finance and tourism. 3. What are the reasons behind the decline in Hurriyet’s circulation in 2008? Hurriyet’s average daily circulation dropped to 518,000 in 2008, compared to 571,000 in 2007. In 2007, the circulation was inflated due to the give-away type of promotions offered with the newspaper, especially during the week-ends. However, the promotion activities slowed-down considerably in 2008, leading to the normalization of the circulation figures. 4. How do you define your reader profile? According to recent researches made by BİAK (Press Ad Research Institute) 74% of our readers belong to ABC1 socio-economic group, 60% are high school and university graduates and 56% are between 18-44 years old. 5. Can you give some information about TME, such as the region of operations, the products and market share? TME is the leading marketplace for communities of real estate, auto and recruitment, with strong local brands, serving local markets in Russia, CIS, Central and Eastern Europe. More specifically, TME operates in Russia, Croatia, Hungary, Ukraine, Slovenia, Belarus, Bosnia & Herzegovina, Kazakhstan and Serbia, employing a total of 4,800 people in this region. Trader Media East produces around 200 print titles and hosts 27 websites, with 8.4 million unique monthly visitors. TME publishes newspapers and magazines in various frequencies, such as dailies, weeklies, etc., with advertising content only. TME’s flagship publication in Russia Iz Ruk v Ruki is among the top 5 most recognized brands in the country, as the brand recognition of this publication is as high as 89%. The classified daily newspaper Iz Ruk v Ruki is the clear market leader in Russia. TME’s publications, as well as its websites, are mainly concentrated on advertising of real estate, auto and job recruitement sectors. Advertising in these sectors being mostly of local nature, TME’s operates in a large geography. In fact, TME has operations in over 100 cities in Russia, producing local content publications in all of these cities. In this sense, TME is the only nationwide company in this sector, with local operations. TME’s main title in Hungary is Expressz and the main title in Croatia is Oglasnik. Both brands are market leaders in the countries they are issued. 6. As Hurriyet is now an international media company, how much of its revenues and EBITDA is coming from Turkey and how much is coming from abroad? In 2008, 38% of Hurriyet’s consolidated revenues and 34% of EBITDA came from TME. If we take into consideration the revenues and EBITDA stemming from Hurriyet Germany as well, 42% of consolidated revenues and 37% of consolidated EBITDA in 2008 came from outside Turkey. Meanwhile, in the first half of 2009, 31% of Hurriyet’s consolidated revenues and 19% of EBITDA came from TME. If we take into consideration the revenues and EBITDA stemming from Hurriyet Germany as well, 35% of consolidated revenues and 24% of consolidated EBITDA during this period came from outside Turkey. 7. Can you give the regional breakdown of TME’s revenues and EBITDA? The bulk of TME’s revenue and EBITDA is coming from Russia. As of 2008, 72% of TME’s revenues stemmed from Russia, 12% from CIS countries and 16% from CEE countries. A breakdown of Russian revenues as Moscow and the other cities, one can observe that 29% of TME’s revenues came from Moscow and 43% from the other cities in 2008. Meanwhile, 81% of TME’s EBITDA stemmed from Russia (43% Moscow, 38% other cities), 12% from CIS countries and 7% from CEE countries in 2008. In the first half of 2009, 69% of TME’s revenues stemmed from Russia, 14% from CIS countries and 17% from CEE countries. Meanwhile, 80% of TME’s EBITDA stemmed from Russia, 16% from CIS countries and 4% from CEE countries during this period. 8. Can you give a brief distribution of Hurriyet’s revenues? In 2008, 71% of Hurriyet’s revenues were advertising, 12% printing, 11% circulation and 6% other income. In the first six months of 2009, on the other hand, 64% of Hurriyet’s revenues were advertising, 15% printing, 15% circulation and 6% other income. 9. What’s the weight of newsprint costs in your total costs? In 2008, 30% of Hurriyet’s cost of sales stemmed from newsprint costs. 10. There is a declining trend in the circulation of paid newspapers in some developped countries. Are you expecting such a trend in Turkey? There is a significant increase in circulation in Turkey in the last 5 years. We think that factors such as the rise in compulsory primary education from 5 to 8 years and increasing literacy rate are differenciating Turkey from the aforementioned developped countries where circulation is declining. We expect circulation in Turkey to continue to increase in the coming few years. 11. How is the newsprint (paper) purchased and what are the terms? There is no newsprint (paper) production in Turkey. Hurriyet purchases paper from abroad as all other newspapers. Newsprint is imported mainly fron Scandinavian countries and North America. Newsprint for Hurriyet is imported by Dogan Dis Ticaret (Dogan Foreign Trade), a subsidiary of our main shareholder Dogan Yayin Holding. Dogan Dis Ticaret imports the newsprint for all the newspapers of the Dogan Group and benefits of the advantages stemming from larger amount of purchases. 12. Can you give a brief description of your dividend policy? Our dividend policy is designed in accordance with the relevant Capital Markets Legislation and the provisions of the Articles of Association. In principle, minimum 50% of “net distributable profit” based on Financial Statements prepared in line with International Financial Reporting Standards (IFRS) and Capital Market Board Regulations are distributed. Dividend distribution is evaluated in the presence of investment plans that require considerable fund outflow, events that may affect the Company's financial structure and uncertainty and adverse developments in the economy and market conditions. 13. What are your future prospects? Platforms utilised by media has been varying every day. Content needs of our readers change from day to day. We see these changes as an opportunity to invest in our areas of strength. We generate successful projects in new generation platforms. We follow up developments in internet area and improve our news portal accordingly and feed this portal with strong communities. In addition, we aim to carry our leadership in “classified” ads to internet medium. This way we increase our revenue types. back to top
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