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Organization Chart |
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Board of Directors and Informetion about Management |
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Executive Committee (Executive Board) |
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Audit Committee |
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Corporate Governance Committee |
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Powers and Responsibilities |
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MESSAGE FROM THE CHAIRMAN 
Celebrated for high-quality publishingDespite all of the adverse circumstances in the global and national economies, Hürriyet retained its leading and pioneering position in the industry while maintaining steady growth in 2008. Esteemed Members of the Hürriyet Family and Dear Shareholders, 2008 was dominated by the global crisis which emerged in the second half of 2007. That crisis suddenly worsened in the last quarter of the year to rapidly engulf frst, the developed countries then, in turn, afecting the economies of emerging countries. The fnancial crisis that originated in the US's sub-prime mortgage sector created a knock-out efect on the real economy, primarily on the automotive and construction industries. The result was that the global economy faced its greatest crisis since the Great Depression of 1929. It is estimated that the world will continue to sufer from the consequences of this downturn for a long time to come, despite the bail-out packages announced one after another by national economies. The Turkish banking sector emerged strengthened as a result of the 2001 crisis with much experience gained. That, combined with the backing of the economic program executed diligently and resolutely since then, initially placed the Turkish economy in a more robust position against the global crisis. Further, the prominence of mortgage loans and derivative products in banking sectors outside of Turkey served as a catalyst for the rapid spread of volatility in developed markets elsewhere. The limited use of these instruments in Turkey was among the factors mitigating the impact of the crisis here. It was inconceivable, however, that the Turkish economy would be entirely unafected by global dynamics. Despite the banking sector's robust standing, the slowdown paralleling the contraction in domestic demand since the second half of the year has hindered the economy's continuous high-growth trend. Having grown 4.5% in the previous year, the Turkish economy grew by 1.1% in 2008 due to the ramifcations of the global fnancial crisis. The slowdown is forecast to continue in 2009 with the growth rate falling under zero as of the year‘s end. The appetite for risk on a global scale is now waning. Further, decreased availability of international funding and the rapid plunge in demand brought about by the crisis in Turkey's largest export market (the EU), are other adverse factors afecting growth in the Turkish economy. Commodity and food prices, which surged by leaps and bounds over the year, plummeted at a similar pace in the last quarter. That factor created the only silver lining in this process because of its implications on the foreign trade and current account defcits. Due to its share in the imports, the fall in oil prices in particular, contributed to the decline in the current account defcit from its pre-crisis level of US$ 50 billion to US$ 40 billion at the end of the year. Commodity prices, which soared around the entire world in the frst quarter of the year, have adversely afected infation. Therefore, the annual infation rate for 2008 at 10.6% was signifcantly above the 4% target set at the beginning of the year. With its young and dynamic demographic structure and its potential for high-rate growth in the long term, Turkey is one of the centers of attraction in the global economy. Foreign direct investments, which rose to a record breaking US$ 20 billion in 2007, were maintained with a relatively small decline despite all adversities in 2008 at US$ 15 billion. That fact attests to the indispensible position of Turkey within global economic dynamics. Macro policies and Turkey's attitude vis¬a-vis global developments will principally determine how the country will cope in the coming period. Thus, stimulating domestic demand, conducting stable relations with the IMF, reinforcing relations with the EU and implementing the requirements of the harmonization process become even more signifcant. Through coherent and fexible economic policies that adapt to the situation, it is possible for Turkey to turn adversity into new opportunities and emerge from the crisis in an even stronger position. Despite all of the adverse circumstances in the global and national economies, Hürriyet retained its leading and pioneering position in the industry while maintaining steady growth in 2008. The Turkish advertising industry grew at a rate of 3.4% in 2008. Having grown 12% in the frst half of the year, the industry was adversely afected by the repercussions of the downturn, especially in the last quarter. As was the case in previous years, television and newspapers were in the lead in 2008 as the most preferred media for advertising clients with an 80% share. Meanwhile, sustaining the high-growth trend achieved in the last few years, online, outdoor and cinema advertising channels were also prominent once again in 2008. As an efective regional actor of global economy, long infuential beyond national borders, Hürriyet retained its leading position in various areas in 2008 and maintained its status as the most preferred newspaper of advertising clients. The average daily net sales of Hürriyet in 2008 was 518,000, corresponding to a market share of 10.2%. Hürriyet stands out as the frst and only Turkish media company to be assigned a credit rating by an international rating agency. Hürriyet is also the frst print media organization worldwide to announce its corporate governance rating. The international corporate governance rating agency, ISS Corporate Services, revised our previous corporate governance rating score of 8 over 10 in September 2008 and raised it to 8.5. ISS also highly rated Hürriyet's "public disclosure and transparency" sub-category activities by ranking it 9.11 over 10. With its pioneering role in the spread of corporate governance approach in Turkey, I would like to underline that the high ratings assigned in this feld for Hürriyet, flls us with as much pride as our fnancial performance, to say the least. An indispensible component of Turkey's modernization process since its inception in 1948, Hürriyet once again demonstrated its pioneering and guiding role for social responsibility during its 60th anniversary. For that event Hürriyet initiated the "Liberty is our Right/Train is Freedom" project that followed its highly acclaimed "End Domestic Violence!" campaign. Run in collaboration with Turkish State Railways (TCDD), the project involved a huge train flled with many participants that stopped at 45 cities with railway connections in 45 days. It helped deal with and debate the question of human rights, always addressed within the political framework so far, as an inherent and common requirement of our daily lives and future. Celebrated to this day for high-quality publishing, employee focus and social responsibility, Hürriyet's commitment to serve and support the public welfare and maintain its pioneering role in the feld will continue to guide its operations. Therefore, I would like to take this opportunity to thank all our employees, shareholders and readers for their contributions in building Hürriyet into what it is today.
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