Dogan Holding has started talks with Demiroren group for the sale of several assets including Hurriyet Gazetecilik and Dogan Gazetecilik... Mentioned assets are as follows: a. Doğan Dağıtım Satış Pazarlama Matbaacılık Ödeme Aracılık ve Tahsilat Sistemleri, b. Doğan Gazetecilik, Doğan Haber Ajansı, c. Doğan TV Holding, d. DTV Haber ve Görsel Yayıncılık, Doruk Televizyon ve Radyo Yayıncılık, e. Hürriyet Gazetecilik ve Matbaacılık, and f. Mozaik İletişim Hizmetleri. Total deal size is at USD1.1bn (pointing to a market cap of USD890mn), where aforementioned assets include TV channels such as Kanal D and CNN Turk, newspapers such as Hurriyet, Posta and Fanatik; and satellite television provider D-Smart. No further information is available. In FY17 financials, Hurriyet Gazetecilik and Dogan Gazetecilik had EV values of TRY875mn and TRY241mn respectively, and market caps of TRY679mn and TRY356mn. For Dogan Holding, the company’s market cap was at TRY2.3mn (USD0.6bn) ; at an EV of TRY4.5bn (USD1.2bn). Please see the table down below for more details.
As there are a significant amount of subsidiaries in media segment of Dogan Holding, we can not calculate the exact impact on the company. Yet considering more than half of the net loss figure of the company came from the media segment and EBITDA generation accounting to 14.9% of the parent holding in FY17 figures, the impact should be significantly positive. Please find the overall outlook of 2017 for Dogan Holding’s media segment down below.
Top line: Media segment revenue at TRY2.4bn in 2017 (up 5% YoY), constituting 22.6% of total sales of Dogan Holding. Revenue stream is equally shared by publishing and broadcasting segments, with the latter contributing slightly higher at 50.6%.
EBITDA: The company saw a drastic fall in its profitability with EBITDA contracting 41% YoY to TRY128 in 2017, pointing to an EBITDA margin of 5.4% in 2017 compared to 9.7% in 2016. This was a result of higher costs in broadcasting, with broadcasting margin falling from 12% in 2016 to 4% in 2017 while publishing profitability also retreated by c.60bps, to 7.2% in 2017. All in all, media segment generated 14.9% of total EBITDA of Dogan Holding.
Net Income: At the bottom line, due to termination of digital operations of the subsidary TME the company wrote TRY252mn net loss from discontinued operations. Further exarcebated by TRY176mn financials (up 16% YoY), the company had a PBT loss of TR129mn before discontinued operations; compare to TRY273mn net loss PBT figure of parent holding. Including discontinued operations, we calculate the figure to be around TRY381bn in 2017 for media segment, compared toTRY481.6mn of Dogan Holding (again our calculation).
(+) Dogan Holding, Hürriyet Gazetecilik ve Doğan Gazetecilik’in de bulunduğu bağlı ortaklıklarının USD1.1 milyara satışı için Demirören Holding ile görüşmelere başladı... Satışa konu olan varlıklar şu şekilde: a. Doğan Dağıtım Satış Pazarlama Matbaacılık Ödeme Aracılık ve Tahsilat Sistemleri, b. Doğan Gazetecilik, Doğan Haber Ajansı, c. Doğan TV Holding, d. DTV Haber ve Görsel Yayıncılık, Doruk Televizyon ve Radyo Yayıncılık, e. Hürriyet Gazetecilik ve Matbaacılık, and f. Mozaik İletişim Hizmetleri. İşletme değerinden hesaplanan işlem bedeli USD1.1 milyar olurken, borçların düşülmesiyle bulunan hisse değeri USD890 milyon oldu. Satışa konu olan varlıklar arasında Kanal D ve CNN Turk gibi TV kanallarının yanı sıra, Hürriyet, Posta ve Fanatik gibi gazeteler de bulunurken, TV içerik sağlayacısı D-Smart’ta bulunuyor. Konuyla ilgili ek bir bilgi bulunmamaktadır. 21/03/2018 kapanışına göre Hurriyet Gazetecilik ve Dogan Gazetecilik sırasıyla TRY875mn ve TRY241mn firma değerine sahipken, piyasa değerleri ise sırasıyla TRY679mn ve TRY456mn dir. Dogan Holding içinse, şirketin piyasa değeri TRY2.3mn iken (USD0.6 milyar), firma değeri TRY4.5 milyardadır (USD1.2 milyar). Haberin her üç şirket içinde pozitif etki yaratmasını bekliyoruz.
