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E-Commerce Firm Jumia Draws Takeover Interest From Axian
E-Commerce Firm Jumia Draws Takeover Interest From Axian

Business of Fashion

time01-07-2025

  • Business
  • Business of Fashion

E-Commerce Firm Jumia Draws Takeover Interest From Axian

Jumia Technologies AG, the biggest e-commerce company in Africa, has drawn takeover interest from telecommunications company Axian Telecom, people familiar with the matter said. Axian, which is based in Mauritius and primarily offers telecommunications services in Africa, raised $600 million this week to refinance its debt and help fund a possible takeover of Jumia, the people said, asking not to be identified because the deliberations are private. No final decisions have been made and the companies may not come to an agreement, they said. Jumia has a market value of about $500 million. The deal would help both companies expand across the continent, the people said. Jumia, which started in Nigeria in 2012 and held an initial public offering in New York in 2019, could be delisted in any deal, they said. Axian has been building a stake in the company, and announced in May that it held 8 percent of shares. Representatives for Jumia and Axian declined to comment. Jumia's American depositary receipts jumped 5.7 percent to $4.25 at 10:54 a.m. in New York after earlier surging as much as 17 percent, the biggest intraday gain since May. The stock has risen 11 percent this year. Often referred to as the 'Amazon of Africa,' Jumia has had to do its own mapping in some of its markets and set up logistics networks to cater to a young and increasingly tech-savvy population that uses smartphones to bridge gaps in infrastructure and services. It was one of the first African companies to achieve 'unicorn' status with a valuation of more than $1 billion, but its shares have declined significantly since the IPO. By Loni Prinsloo Learn more: Jumia, Turkey's Hepsiburada Plan Africa E-Commerce Growth Push The Africa-focused online retailer and Turkey's Hepsiburada have partnered to expand their offerings across Africa, starting with Egypt and Morocco.

Kaspi.kz 1Q 2025 Financial Results
Kaspi.kz 1Q 2025 Financial Results

Yahoo

time12-05-2025

  • Business
  • Yahoo

Kaspi.kz 1Q 2025 Financial Results

ALMATY, Kazakhstan, May 12, 2025 (GLOBE NEWSWIRE) -- Joint Stock Company (' 'we') (Nasdaq:KSPI) which operates the and Kaspi Pay Super Apps in Kazakhstan and owns 65.41% of Hepsiburada in Türkiye, today published its unaudited consolidated IFRS financial results for the quarter ended 31 March 2025 ('1Q 2025'). 1Q 2025 Highlights Our results for the first quarter of the year were broadly as we expected them to be. 1Q 2025 Revenue up 21% year-over-year ('YoY'), net income up 16% YoY. This and all references below exclude Türkiye unless otherwise stated. Customer engagement strong with Monthly Transactions per Active Consumer reaching 75. In Payments, operational gearing once again resulted in profit growth ahead of revenue growth. Payments TPV and transactions up 23% and 17% YoY, respectively. Payments revenue and net income up 16% and 21% YoY, respectively. Marketplace Platform revenue growth continued to significantly outpace GMV growth. Purchases up 36% YoY. Revenue up 33% YoY versus 20% GMV growth, with revenue boosted by the growth of Kaspi Delivery, Kaspi Advertising and Classifieds. Within Marketplace, e-Grocery delivered the standout performance, with GMV up 64% YoY. Marketplace net income up 19% YoY. Fintech Platform TFV growth up 17% YoY, with robust origination trends during the first quarter. Fintech revenue growth up 18% YoY on the back of healthy origination levels in 2H 2024. Higher than expected interest rates required us to increase macro-provisioning, resulting in 0.6% of Cost of Risk in 1Q 2025 versus 0.5% in the same period in 2024. Underlying customer credit quality trends remain healthy and unchanged. Net income growth up 8% YoY, reflecting the impact of additional macro-provisioning during the quarter. Higher than expected interest rates are now expected to lead to higher deposit costs for the remainder of this year. Transaction to acquire 65.41% of Hepsiburada closed in January 2025. Initial $600 million cash payment made with a further $526.9 million due no later than 6 months post-closing. Top-line trends at Hepsiburada were impacted by politically driven consumption boycotts. Profitability was also impacted by investment in early stage lending products. Overall consolidated net loss of KZT6 billion is minor in the context of bottom-line. $650 million 6.250% Five-Year Eurobond successfully placed. Funds raised are expected to enable us to support our expansion plans in Türkiye. With a highly cash generative business in Kazakhstan and investment grade credit ratings from both Fitch and Moody's, we now have greater financial resources and flexibility as we seek to grow our business and enhance shareholder value over the medium-term. Fast initial execution in Türkiye with agreement to acquire Rabobank A.Ş. With a banking license we would be able to launch deposit products and fund other financial services. Transaction subject to regulatory approval. Expected to close in 2H 2025. In March new requirements to register imported smartphones were introduced in Kazakhstan. This temporarily reduced demand on our Marketplace and resulted in around 7% lower e-Commerce GMV growth during the first quarter. Weaker demand for smartphones is likely to remain a near-term theme, while increased macro-economic uncertainty in recent weeks gives us slightly less visibility around demand for some large ticket, discretionary Marketplace categories including cars and consumer electronics. Interest rate hikes are expected to make deposit costs higher and we believe a new 10% tax on revenue coming from investments in government securities is likely to be introduced this year. Taking the above into account, we expect excluding Türkiye to deliver around 15% consolidated net income growth YoY in 2025. This is a more conservative outlook than our previous guidance of around 20%, but still points to another year of decent bottom-line growth. If elevated deposit rates eventually moderate, this would be an important tailwind to our earnings growth, and we believe Hepsiburada and Türkiye is a significant medium-term opportunity for us. Click on, or paste the following link into your web browser, to view the full For further information David Ferguson, +44 7427 751 275Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Hepsiburada Announces First Quarter 2025 Financial Results
Hepsiburada Announces First Quarter 2025 Financial Results

Yahoo

time08-05-2025

  • Business
  • Yahoo

Hepsiburada Announces First Quarter 2025 Financial Results

ISTANBUL, May 08, 2025 (GLOBE NEWSWIRE) -- D-MARKET Electronic Services & Trading (d/b/a 'Hepsiburada') (NASDAQ: HEPS), a leading Turkish e-commerce platform (referred to herein as 'Hepsiburada' or the 'Company'), today announces its unaudited financial results for the first quarter ended March 31, 2025. : Pursuant to the International Accounting Standard 29, Financial Reporting in Hyperinflationary Economies ('IAS 29'), the financial statements of entities whose functional currency is that of a hyperinflationary economy must be adjusted for the effects of changes in a general price index. Turkish companies reporting under International Financial Reporting Standards ('IFRS'), including the Company, have been required to apply IAS 29 to their financial statements for periods ended on and after June 30, 2022. The Company's consolidated financial statements as of and for the three months ended March 31, 2025, including figures corresponding to the same period of the prior year, reflect a restatement pursuant to IAS 29. Under IAS 29, the Company's financial statements are presented in terms of the measuring unit current as of March 31, 2025. All the amounts included in the financial statements which are not stated in terms of the measuring unit current as of the date of the reporting period, are restated applying the general price index. Adjustment for inflation has been calculated considering the price indices published by the Turkish Statistical Institute (TurkStat). Such indices used to restate the financial statements as at March 31, 2025 are as follows: Date Index Conversion Factor 31 March 2025 2,954.7 1.00 31 December 2024 2,684.6 1.10 31 March 2024 2,139.5 1.38 Figures unadjusted for inflation in accordance with IAS 29, denoted as 'IAS 29-unadjusted', 'unadjusted for IAS 29', 'unadjusted', 'unadjusted for inflation', or 'without adjusting for inflation', are also included under the 'Highlights' sections as relevant. Figures unadjusted for IAS 29 constitute non-IFRS financial measures. We believe that their inclusion facilitates the understanding of the restated financial statements in accordance with IAS 29. Please see the 'Presentation of Financial and Other Information' section of this press release for a definition of such non-IFRS measures, a discussion of the limitations on their use, and reconciliations of the non-IFRS measures to the most directly comparable IFRS measures. First Quarter 2025 Financial and Operational Highlights (All financial figures are restated pursuant to IAS 29 unless otherwise indicated) Gross merchandise value (GMV) decreased by 14.8% to TRY 42.7 billion compared to TRY 50.1 billion in Q1 2024. IAS 29-Unadjusted GMV improved to TRY 41.8 billion in Q1 2025, compared to TRY 35.2 billion in Q1 2024. Revenue decreased by 7.9% to TRY 14,386.9 million compared to TRY 15,619.0 million in Q1 2024. Number of orders decreased by 18.9% to 23.8 million compared to 29.3 million orders in Q1 2024. Number of orders (excluding digital products and HepsiExpress) decreased by 7.1% to 18.2 million compared to 19.6 million in Q1 2024. Average order value (excluding digital products) grew by 4.2% in Q1 2025 compared to Q1 2024. Active Customers decreased by 0.9% to 12.0 million compared to 12.1 million as of March 31, 2024. Order Frequency increased by 7.4% to 10.5 compared to 9.8 as of March 31, 2024. Active Merchant base decreased by 2.0% to 99.9 thousand compared to 101.9 thousand as of March 31, 2024. Share of Marketplace GMV was 68.8% compared to 68.4% in Q1 2024. EBITDA decreased to TRY 108.8 million compared to TRY 399.6 million in Q1 2024. Accordingly, EBITDA as a percentage of GMV was 0.3%, representing a deterioration of 0.5 percentage points compared to 0.8% in Q1 2024. IAS 29-Unadjusted EBITDA improved to TRY 870.9 million in Q1 2025, compared to TRY 835.3 million in Q1 2024. IAS 29-Unadjusted EBITDA as a percentage of GMV in Q1 2025 declined by 0.3 percentage points to 2.1% compared to 2.4% in Q1 2024. Net loss for the period was TRY 355.1 million compared to a net loss of TRY 180.5 million for Q1 2024. Free cash flow was negative TRY 931.8 million compared to positive TRY 1,421.9 million in Q1 2024. Commenting on the results, Nilhan Onal Gökçetekin, CEO of Hepsiburada, said: 'As previously disclosed, following two consecutive years of real topline growth and EBITDA improvement, the start of 2025 proved to be challenging. The first quarter topline results were notably impacted by politically driven consumption boycotts. As previously explained, due to the sensitivities surrounding the boycotts, marketing activities were significantly scaled back, amplifying the year-over-year deterioration in consumer demand trends. Our results were further adversely impacted by the decelerating market noted in our prior filings that arose from counter-inflationary policies and a related decline in consumer purchasing power. These headwinds have also impacted other publicly listed local retailers, who have experienced declines in sales reflecting the broader macroeconomic challenges and sector-wide pressures impacting the market. We improved our gross contribution margin by 200 basis points year over year, with multiple initiatives including Hepsiads and Hepsiburada Premium, among others. However, as we have previously stated, we are in the early stages of building our lending capabilities and managing related credit risk. In Q1 2025, this resulted in loan loss provisions amounting to TRY 148 million, compared to TRY 41 million in the first quarter of 2024. This, together with our negative topline growth, resulted in a 0.3% EBITDA margin, which was 50 basis points below the first quarter of 2024. Our logistics capabilities remain a cornerstone of our ecosystem and an important contributor to our gross margin. Leveraging its speed and consistent reliability, HepsiJet expanded its share of external customer deliveries, growing its volume from 33% to 40% of total parcels delivered. We greatly value the continued support of our shareholders, the trust of our customers and partners, and the dedication of our entire team throughout the quarter.' Summary: Key Operational and Financial Metrics The following table sets forth a summary of the key operating and unaudited financial data as of and for the three months ended March 31, 2025 and March 31, 2024 prepared in accordance with IFRS. Unless indicated otherwise, all financial figures in the tables provided are inflation-adjusted (in accordance with IAS 29). Note: All financial figures in the tables provided are expressed in terms of the purchasing power of the Turkish Lira on March 31, 2025 (in accordance with IAS 29) unless otherwise indicated. (in TRY million unless otherwise indicated) Three months ended March 31, unaudited 2025 2024 y/y % GMV (TRY in billion) 42.7 50.1 (14.8%) Marketplace GMV (TRY in billion) 29.4 34.3 (14.2%) Share of Marketplace GMV (%) 68.8% 68.4% 0.5pp Number of orders (million)1 23.8 29.3 (18.9%) Number of orders (excl. digital products) (million) 1 18.2 19.6 (7.1%) Active Customers (million) 12.0 12.1 (0.9%) Revenue 14,386.9 15,619.0 (7.9%) Gross Contribution 5,322.4 5,253.5 1.3% Gross Contribution margin (%) 12.5% 10.5% 2.0pp Net loss for the period (355.1) (180.5) 96.7% EBITDA 108.8 399.6 (72.8%) EBITDA as a percentage of GMV (%) 0.3% 0.8% 0.5 pp Net cash (used in)/provided by operating activities (337.2) 2,010.4 (116.8%) Free Cash Flow (931.8) 1,421.9 (165.5%) 1: Going forward, we expect to report Number of orders (excluding digital products) instead of Number of orders because this metric aligns better with management's view of the business and with the way in which our controlling shareholder computes this metric. See 'Certain Definitions' for more information. Note that Gross Contribution, EBITDA and Free Cash Flow are non-IFRS financial measures. See the 'Presentation of Financial and Other Information' section of this press release for a definition of such non-IFRS measures, a discussion of the limitations on their use, and reconciliations of non-IFRS measures to the most directly comparable IFRS measures. See the definitions of metrics such as GMV, Marketplace GMV, share of Marketplace GMV, Gross Contribution margin, EBITDA as a percentage of GMV, number of orders and Active Customers in the 'Certain Definitions' section of this press release. Business and Strategy Highlights As of March 31, 2025, the annual inflation rate published by TurkStat was 38.1%, declining from 68.5% as of March 31, 2024. The monthly inflation rates during the first quarter of 2025 were 5.0%, 2.3% and 2.5% in January, February and March, respectively. In Q1 2025, IAS 29-Unadjusted GMV increased by 18.7% to TRY 41.8 billion in Q1 2025, compared to TRY 35.2 billion in Q1 2024. Adjusted for inflation, GMV decreased by 14.8% to TRY 42.7 billion compared to TRY 50.1 billion in Q1 2024. We experienced order decline of 7.1% (excluding digital products and HepsiExpress) in Q1 2025 compared to Q1 2024. Number of orders (including digital products and HepsiExpress) decreased by 18.8% to 23.8 million compared to 29.3 million orders in Q1 2024. Meanwhile, average order value (excluding digital products) grew by 4.2% in Q1 2025 compared to Q1 2024. The growth in average order value (excluding digital products) in the period was due to a faster-than-inflation rise in average selling prices and to a higher share of large-ticket items in non-electronics in 2025 compared to 2024. ESG Actions In Q1 2025, Hepsiburada continued its support in social, commercial and economic areas. The 'Technology Empowerment for Women Entrepreneurs' ('TEWE') program reached an additional 2,678 women. To date, the TEWE program has supported approximately 63 thousand women entrepreneurs. Furthermore, as of March 31, 2025, the number of women's cooperatives on our platform had reached 303. Hepsiburada has become the sponsor of books and board games for one year at the Suna'nın Kızları Child Life Centers operating in the provinces affected by the February 6, 2023 earthquakes, as part of its 'A Smile is Enough' project, which has reached over 250,000 children to date. Subsequent Events Hepsiburada Announces the Fourth Bond Issuance of Hepsifinans Hepsiburada announced the fourth bond issuance of its indirect wholly owned subsidiary, Hepsi Finansman A.Ş. ('Hepsifinans'), at a nominal value of TRY 66,950,000. Further to our disclosure in a report on Form 6-K furnished on September 11, 2024 regarding the Capital Markets Board's approval of Hepsifinans's issuance of bonds or bills with a total aggregate principal amount of up to TRY 1,050,000,000 in one or more tranches within one year, Hepsifinans closed its fourth bond issuance to domestic qualified investors on April 30, 2025. The bonds have an aggregate principal amount of TRY 66,950,000 with a six-month maturity. The bonds will accrue interest at a rate of 52.00% per annum. The principal and the coupon of the bonds will be repaid at maturity. Hepsifinans will use the funds raised to sustainably grow its consumer finance business. Hepsiburada Financial Review Restatement of financial information: Pursuant to IAS 29, the financial statements of an entity whose functional currency is that of a hyperinflationary economy are reported in terms of the measuring unit current as of the reporting date of the financial statements. All amounts included in the financial statements which are not stated in terms of the measuring unit current as of the date of the reporting period are restated applying the general price index. In summary: Non-monetary items are restated from the date of acquisition to the end of the reporting period. Monetary items that are already expressed in terms of the monetary unit current at the end of the reporting period are not restated. Comparative periods are stated in terms of measuring unit current at the end of the reporting period. All items in the statement of comprehensive income/(loss) are stated in terms of the measuring unit current as of the date of the financial statements, applying the relevant (monthly) conversion factors. The gain or loss on the net monetary position is included in the statement of comprehensive loss and separately disclosed. Revenue (in TRY million, unaudited) Three months ended March 31, 2025 2024 y/y % Sale of goods1 (1P) 9,182.6 10,793.6 (14.9%) Marketplace revenue2 (3P) 1,762.6 2,030.7 (13.2%) Delivery service revenue 2,329.2 2,212.8 5.3% Other 1,112.6 581.9 91.2% Revenue 14,386.9 15,619.0 (7.9%) 1: In 1P direct sales model, we act as a principal and initially recognize revenue from the sales of goods on a gross basis at the time of delivery of the goods to our customers.2: In the 3P marketplace model, revenues are recorded on a net basis, mainly consisting of marketplace commission, transaction fees and other contractual charges to the merchants. Our revenue decreased by 7.9% to TRY 14,386.9 million in Q1 2025 compared to TRY 15,619.0 million in Q1 2024. This was due to a 14.9% decrease in our (1P) revenue (comprising 63.8% total revenue) and a 13.2% decrease in our (3P) revenue, which were partially offset by a 5.3% increase in delivery service revenue (comprising 16.2% of total revenue) and a 91.2% increase in other revenue compared to Q1 2024. The 14.7% decrease in (1P) and (3P) revenue compared to Q1 2024 was mainly due to previously disclosed broad-based consumption boycotts that adversely impacted demand, as well as the slowing market, driven by the government's counter-inflationary policies and declining consumer purchasing power, as discussed in our prior filings. The 5.3% increase in delivery service revenue compared to Q1 2024 was mainly due to an increase in delivery service revenue from the off-platform customers of Hepsijet and annual rises in unit delivery service charges. The rise in other revenue was mainly attributable to 52.4% growth in our advertising services (HepsiAd), 136.4% growth in our Hepsiburada Premium subscription revenues and 35.9x growth in our fintech operations revenues. Gross Contribution (in TRY million unless indicated otherwise, unaudited) Three months ended March 31, 2025 2024 y/y % Revenue 14,386.9 15,619.0 (7.9%) Cost of inventory sold (9,064.6) (10,365.5) (12.6%) Gross Contribution 5,322.4 5,253.5 1.3% Gross Contribution margin (% of GMV) 12.5% 10.5% 2.0pp The Gross Contribution margin improved by 2.0pp to 12.5% in Q1 2025 compared to 10.5% in Q1 2024. This margin improvement was mainly attributable to a 1.4pp improvement derived from higher other revenue, a 1.0pp increase in delivery service revenue, and a 0.1pp increase in 3P margin, partially offset by a 0.5pp decrease in 1P margin. The table below shows the monthly inflation rates in 2025 and 2024. Consumer inflationMonthly (2003=100) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2025 5% 2% 2% - - - - - - - - - 2024 7% 5% 3% 3% 3% 2% 3% 2% 3% 3% 2% 1% Source: Data as announced by TurkStat Operating ExpensesThe table below shows our operating expenses for the three months ended March 31, 2025 and 2024 in absolute terms and as a percentage of GMV: (in TRY million unless indicated otherwise, unaudited) Three months ended March 31, 2025 2024 y/y% Cost of inventory sold (9,064.6) (10,365.5) (12.6%) % of GMV (21.2%) (20.7%) (0.5pp) Shipping and packaging expenses (1,642.7) (1,694.5) (3.1%) % of GMV (3.8%) (3.4%) (0.5pp) Payroll and outsource staff expenses (1,892.6) (1,653.4) 14.5% % of GMV (4.4%) (3.3%) (1.1pp) Advertising expenses (950.3) (987.1) (3.7%) % of GMV (2.2%) (2.0%) (0.3pp) Technology expenses (164.0) (180.2) (9.0%) % of GMV (0.4%) (0.4%) (0.0pp) Depreciation and amortization (657.3) (534.7) 22.9% % of GMV (1.5%) (1.1%) (0.5pp) Other operating expenses, net (563.9) (338.7) 66.5% % of GMV (1.3%) (0.7%) (0.6pp) Net operating expenses (14,935.4) (15,754.1) (5.2%)(34.9%) (31.4%) Net operating expenses decreased by 5.2% to TRY 14,935.4 million in Q1 2025 compared to TRY 15,754.1 million in Q1 2024. As a percentage of GMV, our net operating expenses rose 3.5pp mainly due to a 1.1pp rise in payroll and outsource staff expenses, a 0.6pp rise in other operating expenses, net, a 0.5pp rise in cost of inventory sold, a 0.5pp rise in depreciation and amortization, a 0.5pp rise in shipping and packaging expenses, and a 0.3pp rise in advertising expenses, in each case as a percentage of GMV. As a result of the lower GMV growth in Q1 2025, operating expenses increased as a % of GMV. The 1.1pp increase in payroll and outsource staff expenses as a percentage of GMV was mainly due to the rise in the number of full-time and outsourced employees in line with our plans on talent onboarding for our subsidiaries. The 0.6pp increase in other operating expenses, net, was mainly due to the recognition of a provision for license fee and higher expected credit losses provisions in Q1 2025 compared to Q1 2024. Net loss for the periodNet loss for the period was TRY 355.1 million in Q1 2025, compared to a net loss of TRY 180.5 million in Q1 2024. This negative change was mainly due to a TRY 413.4 million increase in operating losses in Q1 2025 relating mainly to an increase in payroll and outsource expenses amounting to TRY 239.2 million, depreciation and amortization expenses amounting to TRY 122.6 million, loan loss provisions amounting to TRY 106.9 million and a TRY 75.6 million increase in net financial expenses (net of financial income) relating mainly to a decrease in foreign exchange gains in Q1 2025 compared to Q1 2024, partially offset by a TRY 314.5 million increase in monetary gain. EBITDAEBITDA decreased by 72.8%, or TRY 290.8 million, to TRY 108.8 million in Q1 2025 compared to TRY 399.6 million in Q1 2024, corresponding to 0.3% EBITDA (Q1 2024: 0.8%) as a percentage of GMV in Q1 2025. This corresponded to a 0.5pp decline in EBITDA as a percentage of GMV in Q1 2025 compared to Q1 2024. This decline was driven by a 1.1pp rise in payroll and outsource staff expenses, a 0.6pp rise in other operating expenses, net, due to higher loan loss provisions, a 0.5pp rise in shipping and packaging expenses, and a 0.3pp rise in advertising expenses, partially offset by a 2.0pp rise in Gross Contribution margin, in each case as a percentage of GMV. Cash Flow from Operating ActivitiesNet cash provided by operating activities decreased by TRY 2,347.7 million to negative TRY 337.2 million in Q1 2025 as compared to TRY 2,010.4 million in Q1 2024. This decrease was mainly due to a TRY 1,868.9 million decrease in change in working capital as a result of decelerating topline growth, a TRY 304.2 million decrease in change in other items comprising non-cash items such as provisions, financial income and expenses and non-operating monetary gains and losses and a TRY 174.5 million negative change in net loss for the period. Free Cash FlowOur Free Cash Flow decreased to an outflow of TRY 931.8 million in Q1 2025 from an inflow of TRY 1,421.9 million in Q1 2024. This decrease was mainly driven by a TRY 2,347.7 million decrease in net cash provided by operating activities and a TRY 6.1 million increase in tangible and intangible asset acquisitions. Other Key Operational and Financial Metrics (in TRY million unless indicated otherwise) Three months ended March 31, unaudited 2025 2024 y/y % GMV - Kaspi definition (TRY in billions)1 34.4 40.3 (14.6%) Marketplace GMV - Kaspi definition (TRY in billions)1 23.7 27.5 (13.9%) Number of orders excluding digitals – Kaspi definition (millions)1 16.6 18.6 (10.6%) 1: Our controlling shareholder, Joint Stock Company ('Kaspi'), uses key operational metric definitions that differ in some respects from those used by the Company. Please see the 'Certain Definitions' section for definitions of the metrics shown here. D-MARKET Electronic Services & Trading CONSOLIDATED BALANCE SHEETS (Amounts expressed in thousands of Turkish lira (TRY) in terms of the purchasing power of the TRY at 31 March 2025 unless otherwise indicated.) 31 March 2025 31 December 2024 (unaudited) (unaudited) ASSETS Current assets: Cash and cash equivalents 6,695,759 7,429,433 Restricted cash 139,135 148,883 Financial investments 597,583 2,624,714 Trade and loan receivables 5,095,401 5,553,365 Due from related parties 0 16,024 Inventories 7,003,661 6,605,373 Contract assets 48,613 49,233 Other current assets 773,948 526,224 Total current assets 20,354,100 22,953,249 Non-current assets: Property and equipment 850,716 915,077 Intangible assets 3,438,642 3,366,873 Right of use assets 1,569,265 1,430,558 Trade and loan receivables 108,873 96,409 Other non-current assets 52,785 13,653 Total non-current assets 6,020,281 5,822,570 Total assets 26,374,381 28,775,819 LIABILITIES AND EQUITY Current liabilities: Bank borrowings 1,522,892 1,852,011 Lease liabilities 508,792 450,248 Wallet deposits 200,341 195,479 Trade payables and payables to merchants 15,449,812 16,480,525 Due to related parties 0 14,244 Provisions 81,739 238,899 Employee benefit obligations 337,775 574,664 Contract liabilities and merchant advances 1,860,657 2,098,836 Other current liabilities 1,675,660 1,853,269 Total current liabilities 21,637,668 23,758,175 Non-current liabilities: Lease liabilities 716,342 642,421 Employee benefit obligations 166,707 169,255 Other non-current liabilities 509,973 550,252 Total non-current liabilities 1,393,022 1,361,928 Equity: Share capital 792,408 792,408 Other capital reserves 1,254,524 1,211,465 Share premiums 23,015,125 23,015,125 Treasury shares (269,892) (269,892) Accumulated deficit (21,448,474) (21,093,390) Total equity 3,343,691 3,655,716 Total equity and liabilities 26,374,381 28,775,819 D-MARKET Electronic Services & Trading CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Amounts expressed in thousands of Turkish lira (TRY) in terms of the purchasing power of the TRY at 31 March 2025 unless otherwise indicated. Unaudited.) Three months ended 31 March2025 31 March2024 (unaudited) (unaudited) Revenues 14,386,929 15,619,036 Operating expenses Cost of inventory sold (9,064,567) (10,365,506) Shipping and packaging expenses (1,642,728) (1,694,467) Payroll and outsource staff expenses (1,892,582) (1,653,405) Advertising expenses (950,341) (987,145) Technology expenses (164,038) (180,215) Depreciation and amortization (657,329) (534,713) Other operating income 106,537 84,179 Other operating expenses (670,390) (422,872) Operating (loss)/ income (548,509) (135,108) Financial income 977,044 1,131,199 Financial expenses (1,776,855) (1,855,384) Monetary gains 993,236 678,745 (Loss)/income before income taxes (355,084) (180,548) Taxation on income (Loss)/income for the period (355,084) (180,548) Basic and diluted income/(loss) per share (1.1) (0.6) Other comprehensive loss:Items that will not be reclassified to profit or loss in subsequent period: Actuarial gains/(losses) arising on remeasurement of post-employment benefits - (42.0) Items that will be reclassified to profit or loss in subsequent period: Changes in the fair value of debt instruments at fair value through other comprehensive income - - Total comprehensive loss for the period (355,084) (180,590) D-MARKET Electronic Services & Trading CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts expressed in thousands of Turkish lira (TRY) in terms of the purchasing power of the TRY at 31 March 2025 unless otherwise indicated. Unaudited.) 1 January – 1 January – 31 March2025 31 March2024 (unaudited) (unaudited) Loss before income taxes (355,084) (180,548) Adjustments to reconcile income before income taxes to cash flows from operating activities: 2,498,589 2,802,819 Interest and commission expenses 1,673,490 1,641,501 Depreciation and amortization 657,329 534,713 Interest income on time deposits (337,405) (201,332) Interest income on financial investments (2,891) (907) Interest income on credit sales (448,527) (392,474) Provision for unused vacation liability 71,536 47,039 Provision for personnel bonus 277,602 191,593 Provision for legal cases 1,359 740 Provision for doubtful receivables 181,793 42,126 Provision for impairment of trade goods, net 13,664 29,280 Provision for post-employment benefits 22,463 20,789 Provision for share based payment 43,059 34,656 Fair value gains of financial investments (3,462) (54,374) Provision for license fee 45,464 - Provision for Turkish Capital Markets Board fee - 1,014 Net foreign exchange differences (138,271) (327,206) Monetary gains on provisions (118,479) (97,327) Monetary losses on non-operating activities 559,865 1,332,988 Changes in net working capital Change in trade payables and payables to merchants (970,405) (149,581) Change in inventories (512,950) (639,842) Change in trade and loan receivables 341,188 (297,120) Change in contract liabilities and merchant advances (238,179) 260,504 Change in contract assets 620 (11,361) Change in other liabilities (213,030) 350,990 Change in other assets and receivables (289,572) 191,941 Change in due from related parties 16,024 775 Change in due to related parties (14,244) 1,868 Post-employment benefits paid (9,224) (10,743) Payments for concluded litigation (1,037) (6,896) Payments for personnel bonus (425,225) (300,161) Payments for unused vacation liabilities (10,678) (2,217) Payments for license fee (180,023) - Collections of doubtful receivables 25,996 - Net cash (used in)/provided by operating activities (337,234) 2,010,428 Investing activities: Purchases of property and equipment and intangible assets (595,966) (592,536) Proceeds from sale of property and equipment 1,360 3,993 Purchase of financial investments (320,673) (6,950,933) Proceeds from sale of financial investments 2,365,984 3,574,232 Interest received on credit sales 398,970 354,766 Interest income on time deposits and financial investments 321,248 195,016 Net cash (used in)/provided by investing activities 2,170,923 (3,415,462) Financing activities: Proceeds from borrowings 1,094,556 344,849 Repayment of borrowings (1,317,059) (167,596) Interest and commission paid (1,479,708) (1,481,319) Lease payments (225,349) (105,459) Net cash used in financing activities (1,927,560) (1,409,525) Net decrease in cash and cash equivalents (93,871) (2,814,559) Cash and cash equivalents at 1 January 7,427,904 8,738,573 Effects of inflation on cash and cash equivalents (677,546) (1,045,879) Effects of exchange rate changes on cash and cash equivalents and restricted cash 21,585 34,681 Cash and cash equivalents at 31 March 6,678,072 4,912,816 Presentation of Financial and Other Information Use of Non-IFRS Financial Measures Certain parts of this press release contain non-IFRS financial measures which are unaudited supplementary measures and are not required by, or presented in accordance with, IFRS or any other generally accepted accounting principles. Such measures are IAS 29-Unadjusted Revenue, IAS 29-Unadjusted Gross Contribution, IAS 29-Unadjusted EBITDA, EBITDA, Gross Contribution, Free Cash Flow and Net Working Capital. We define: IAS 29-Unadjusted Revenue as revenue presented on an unadjusted for inflation basis; IAS 29-Unadjusted Gross Contribution as Gross Contribution presented on an unadjusted for inflation basis; IAS 29-Unadjusted EBITDA as EBITDA presented on an unadjusted for inflation basis; EBITDA as profit or loss for the period plus taxation on income less financial income plus financial expenses, plus depreciation and amortization, plus monetary gains/(losses); Gross Contribution as revenues less cost of inventory sold; Free Cash Flow as net cash provided by operating activities less capital expenditures plus proceeds from sale of property and equipment; and Net Working Capital as current assets (excluding cash, cash equivalents and financial investments) minus current liabilities (excluding current bank borrowings and current lease liabilities). You should not consider them as: (a) an alternative to operating profit or net profit (net income) as determined in accordance with IFRS or other generally accepted accounting principles, or as measures of operating performance; (b) an alternative to cash flows from operating, investing or financing activities, as determined in accordance with IFRS or other generally accepted accounting principles, or as a measure of our ability to meet liquidity needs; or (c) an alternative to any other measures of performance under IFRS or other generally accepted accounting principles. These measures are used by our management to monitor the underlying performance of the business and our operations. However, not all companies calculate these measures in an identical manner and, therefore, our presentation may not be comparable with similar measures used by other companies. As a result, prospective investors should not place undue reliance on this data. This section includes a reconciliation of certain of these non-IFRS measures to the closest IFRS measure. EBITDA is a supplemental non-IFRS financial measure that is not required by, or presented in accordance with, IFRS. We have included EBITDA in this press release because it is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses and, from the date of applicability of IAS 29, related monetary gains/(losses), in calculating EBITDA facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses (including monetary gains/(losses)) and non-operating expense/(income). One of the objectives of IAS 29 is to account for the financial gain or loss that arises from holding monetary assets or liabilities during a reporting period (i.e. the monetary gains/ (losses)). Therefore, the monetary gains/(losses) are excluded from EBITDA for a proper comparison of the operational performance of the Company. Accordingly, we believe that EBITDA provides useful information to investors in understanding and evaluating our operating results in the same manner as our management and board of directors. Management uses EBITDA: as a measurement of operating performance because it assists us in comparing our operating performance on a consistent basis, as it removes the impact of non-cash and non-operating items; for planning purposes, including the preparation of our internal annual operating budget and financial projections; and to evaluate the performance and effectiveness of our strategic initiatives. EBITDA has limitations as a financial measure, including that other companies may calculate EBITDA differently, which reduces its usefulness as a comparative measure and you should not consider it in isolation or as a substitute for profit/(loss) for the period, as a profit measure or other analysis of our results as reported under IFRS. The following table shows the reconciliation of EBITDA to net loss for the periods presented. Amounts expressed in millions of Turkish lira (TRY) in terms of the purchasing power of the TRY at 31 March 2025. Unaudited. Three months ended March 31, 2025 2024 Net loss for the period (355.1) (180.5) Taxation on income - - Financial income 977.0 1,131.2 Financial expenses (1,776.9) (1,855.4) Depreciation and amortization (657.3) (534.7) Monetary gains 993.2 678.7 EBITDA 108.8 399.6 Gross contribution is a supplemental non-IFRS financial measure that is not required by, or presented in accordance with, IFRS. We have included gross contribution in this press release because it is a key measure used by our management and board of directors to evaluate our operational profitability as it reflects direct costs of products sold to our buyers. Accordingly, we believe that gross contribution provides useful information to investors in understanding and evaluating our operating results in the same manner as our management and board of directors. Gross contribution has limitations as a financial measure, including that other companies may calculate gross contribution differently, which reduces its usefulness as a comparative measure and you should not consider it in isolation or as a substitute for profit/(loss) for the period, as a profit measure or other analysis of our results as reported under IFRS. The following table shows the reconciliation of gross contribution to revenue for the periods presented. Amounts expressed in millions of Turkish lira (TRY) in terms of the purchasing power of the TRY at 31 March 2025. Unaudited. Three months ended March 31, 2025 2024 Revenue 14,386.9 15,619.0 Cost of inventory sold (9,064.5) (10,365.5) Gross Contribution 5,322.4 5,253.5 IAS 29-Unadjusted Revenue, IAS 29-Unadjusted Gross Contribution and IAS 29-Unadjusted EBITDA are supplemental non-IFRS financial measures that are not required by, or presented in accordance with, IFRS. We have included IAS 29-Unadjusted Revenue, IAS 29-Unadjusted Gross Contribution and IAS 29-Unadjusted EBITDA in this press release because we believe their inclusion facilitates the understanding of Revenue, Gross Contribution and EBITDA restated in accordance with IAS 29. IAS 29-Unadjusted Revenue, IAS 29-Unadjusted Gross Contribution and IAS 29-Unadjusted EBITDA have limitations as financial measures, including that other companies may calculate IAS 29-Unadjusted Revenue, IAS 29-Unadjusted Gross Contribution and IAS 29-Unadjusted EBITDA differently, which reduces their usefulness as a comparative measure and you should not consider them in isolation or as substitutes for revenue or profit/(loss) for the period, as revenue or profit measures or other analysis of our results as reported under IFRS. The following table shows the reconciliation of IAS 29-Unadjusted Revenue to revenue for the periods presented. Amounts expressed in millions of Turkish lira (TRY) in terms of the purchasing power of the TRY at 31 March 2025. (in TRY million unless indicated otherwise) Three months ended Mar 31, 2025 2024 y/y % Revenue 14,386.9 15,619.0 (7.9%) Reversal of IAS 29 adjustment 344.9 4,706.4 (92.7%) IAS 29 - Unadjusted Revenue 14,042.0 10,912.6 28.7% The following table shows the reconciliation of IAS 29-Unadjusted Gross Contribution to revenue for the periods presented. Amounts expressed in millions of Turkish lira (TRY); IFRS figures (adjusted for IAS 29) in terms of the purchasing power of the TRY at 31 March 2025. (in TRY million unless indicated otherwise) Three months ended Mar 31, 2025 2024 y/y % Revenue 14,386.9 15,619.0 (7.9%) Cost of inventory sold (9,064.6) (10,365.5) (12.6%) Gross Contribution 5,322.4 5,253.5 1.3% Reversal of IAS 29 adjustment (657.0) 1,028.5 (163.9%) IAS 29 - Unadjusted Gross Contribution 5,979.4 4,225.0 41.5% The following tables show the reconciliation of IAS 29-Unadjusted EBITDA to income/(loss) for the periods presented. Amounts expressed in millions of Turkish lira (TRY); IFRS figures (adjusted for IAS 29) in terms of the purchasing power of the TRY at 31 March 2025. (TRY in millions) Three months ended Mar 31, 2025 Three months ended Mar 31, 2024 2025 Reversal of IAS 29 IAS 29 Unadjusted 2025 2024 Reversal of IAS 29 IAS 29 Unadjusted 2024 Net loss for the period (355.1) (37.0) (318.1) (180.5) (283.9) 103.4 Taxation on income 0.0 0.0 0.0 0.0 0.0 0.0 Financial income 977.0 23.7 953.4 1,131.2 343.7 787.5 Financial expenses (1,776.9) (0.5) (1,776.3) (1,855.4) (527.4) (1,328.0) Depreciation and amortization (657.3) (291.3) (366.0) (534.7) (343.3) (191.4) Monetary gain/(loss) 993.2 993.2 0.0 678.7 678.7 0.0 EBITDA 108.8 (762.1) 870.9 399.6 (435.7) 835.3 Free Cash Flow is a supplemental non-IFRS financial measure that is not required by, or presented in accordance with, IFRS. We have included Free Cash Flow in this press release because it is an important indicator of our liquidity as it measures the amount of cash we generate/(use) and provides additional perspective on whether we have sufficient cash after funding our operations and capital expenditures. Accordingly, we believe that Free Cash Flow provides useful information to investors in understanding and evaluating our operating results in the same manner as our management and board of directors. Free Cash Flow has limitations as a financial measure, and you should not consider it in isolation or as substitutes for net cash used in operating activities as a measure of our liquidity or other analysis of our results as reported under IFRS. There are limitations to using non-IFRS financial measures, including that other companies may calculate Free Cash Flow differently. Because of these limitations, you should consider Free Cash Flow alongside other financial performance measures, including net cash used in operating activities, capital expenditures and our other IFRS results. The following table shows the reconciliation of Free Cash Flow to net cash provided by in operating activities for the periods presented. Amounts expressed in millions of Turkish lira (TRY) in terms of the purchasing power of the TRY at 31 March 2025. Unaudited. Three months ended March 31, 2025 2024 Net cash provided by operating activities (337.2) 2,010.4 Capital expenditures (596.0) (592.5) Proceeds from the sale of property and equipment 1.4 4.0 Free Cash Flow (931.8) 1,421.9 Net Working Capital is a supplemental non-IFRS financial measure that is not required by, or presented in accordance with, IFRS. We have included Net Working Capital in this press release because it is used to measure the short-term liquidity of a business, and can also be used to obtain a general impression of the ability of company management to utilize assets in an efficient manner. Net Working Capital is critical since it is used to keep our business operating smoothly and meet all our financial obligations in the short-term. Accordingly, we believe that Net Working Capital provides useful information to investors in understanding and evaluating how we manage our short-term liabilities. The following table shows the reconciliation of Net Working Capital to current assets and current liabilities as of the dates indicated: Amounts expressed in millions of Turkish lira (TRY) in terms of the purchasing power of the TRY at 31 March 2025. Unaudited. As of March 31, 2025 As of December 31, 2024 Current assets 20,354.1 22,953.2 Cash and cash equivalents (6,695.8) (7,429.4) Financial investments (597.6) (2,624.7) Current liabilities (21,637.7) (23,758.2) Bank borrowings, current 1,522.9 1,852.0 Lease liabilities, current 508.8 450.2 Net Working Capital (6,545.2) (8,556.8) Certain Definitions We provide a number of key operating performance indicators used by our management and often used by competitors in our industry. We define certain terms used in this press release as follows: GMV as gross merchandise value which refers to the total value of orders/products sold through our platform over a given period of time (including value added tax ('VAT') without deducting returns and cancellations), including cargo income (shipping fees related to the products sold through our platform) and excluding other service revenues and transaction fees charged to our merchants; GMV – Kaspi definition as gross merchandise value which refers to the total value of orders/products sold through our platform over a given period of time (including VAT but deducting returns and cancellations), excluding cargo income (shipping fees related to the products sold through our platform) and excluding other service revenues and transaction fees charged to our merchants; IAS 29-Unadjusted GMV as GMV presented on an unadjusted for inflation basis; Marketplace GMV as total value of orders/products sold through our Marketplace over a given period of time (including VAT without deducting returns and cancellations), including cargo income (shipping fees related to the products sold through our platform) and excluding other service revenues and transaction fees charged to our merchants; Marketplace GMV – Kaspi definition as total value of orders/products sold through our Marketplace over a given period of time (including VAT but deducting returns and cancellations), excluding cargo income (shipping fees related to the products sold through our platform) and excluding other service revenues and transaction fees charged to our merchants; Share of Marketplace GMV as the portion of GMV sold through our Marketplace represented as a percentage of our total GMV; IAS 29-Unadjusted Revenue as Revenue presented on an unadjusted for inflation basis; IAS 29-Unadjusted Gross Contribution as Gross Contribution presented on an unadjusted for inflation basis; Gross Contribution margin as Gross Contribution represented as a percentage of GMV; IAS 29-Unadjusted EBITDA as EBITDA presented on an unadjusted for inflation basis; EBITDA as a percentage of GMV as EBITDA represented as a percentage of GMV; IAS 29-Unadjusted EBITDA as a percentage of GMV as IAS 29-Unadjusted EBITDA represented as a percentage of IAS 29-Unadjusted GMV; Number of orders as the number of orders we received through our platform including returns and cancellations; Number of orders (excluding digital products and HepsiExpress) as the number of orders we received through our platform including returns and cancellations but excluding orders for digital products and orders made on HepsiExpress; Number of orders excluding digitals – Kaspi definition as the number of orders we received through our platform excluding returns and cancellations and digital products; Order Frequency as the average number of orders per Active Customer over a 12-month period preceding the relevant date; Active Merchant as merchants who sold at least one item within the 12-month period preceding the relevant date, including returns and cancellations; Active Customers as users (both unregistered users and members) who have purchased at least one item listed on our platform within the 12-month period preceding the relevant date, including returns and cancellations; Digital products as non-cash games on our platform, such as sweepstakes and gamified lotteries, game pins and codes, gift vouchers, and the first monthly payment of Hepsiburada Premium membership subscription; and Average order value (excluding digital products) as GMV divided by the number of orders in a given period, excluding digital products from the nominator and the denominator. DISCLAIMER: Due to rounding, numbers presented throughout this press release may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. About Hepsiburada Hepsiburada is a leading e-commerce technology platform in Türkiye, operating through a hybrid model that combines first-party direct sales (1P) and a third-party marketplace (3P) with approximately 100 thousand merchants. With its vision of leading the digitalization of commerce, Hepsiburada serves as a reliable, innovative and purpose-driven companion in consumers' daily lives. Hepsiburada's e-commerce platform offers a broad ecosystem of capabilities for merchants and consumers including last-mile delivery, fulfilment services, advertising solutions, cross-border sales, payment services and affordability solutions. Hepsiburada's integrated fintech platform, Hepsipay, provides secure payment solutions, including digital wallets, general-purpose loans, buy now pay later (BNPL) and one-click checkout, enhancing shopping convenience for consumers across online and offline while driving higher sales conversions for merchants. Since its founding in 2000, Hepsiburada has been purpose-driven, leveraging its digital capabilities to empower women in the Turkish economy. In 2017, Hepsiburada launched the 'Technology Empowerment for Women Entrepreneurs' program, which has supported approximately 63 thousand female entrepreneurs across Türkiye in reaching millions of customers. Investor Relations Contactir@ Media Contactcorporatecommunications@ Forward Looking Statements This press release, the conference call webcast, presentation and related communications include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, and encompasses all statements, other than statements of historical fact contained in these communications, including but not limited to statements regarding (a) our future financial performance, including our revenue, operating expenses and our ability to achieve and maintain profitability; (b) our expectations regarding current and future GMV and EBITDA; (c) potential disruptions to our operations and supply chain that may result from (i) epidemics or natural disasters; (ii) global supply challenges; (iii) the ongoing conflicts in Ukraine and Syria, including their impact on Türkiye's border regions; (iv) changes in the competitive landscape in the industry in which the Company operates; (v) the high inflationary environment and/or (vi) currency devaluation; (d) the impact of Kaspi's acquisition of a controlling stake in the Company; (e) the anticipated launch of new initiatives, businesses or any other strategic projects and partnerships; (f) our expectations and plans for short- and long-term strategy, including our anticipated areas of focus and investment, market expansion, product and technology focus, and projected growth and profitability; (g) our ability to respond to the ever-changing competitive landscape in the industry in which we operate; (h) our liquidity, substantial indebtedness, and ability to obtain additional financing; (i) our strategic goals and plans, including our relationships with existing customers, suppliers, merchants and partners, and our ability to achieve and maintain them; (j) our ability to improve our technology platform, customer experience and product offerings to attract and retain merchants and customers; (k) our ability to expand our base of Hepsiburada Premium members, and grow and externalize the services of our strategic assets; and (l) regulatory changes in the e-commerce law, corporate tax law and income tax law. These forward-looking statements can be identified by terminology such as 'may', 'could', 'will', 'seek', 'expects', 'anticipates', 'aims', 'future', 'intends', 'plans', 'believes', 'estimates', 'targets', 'likely to' and similar statements. Among other things, quotations from management in this announcement, as well as our strategic and operational plans, contain forward-looking statements. These forward-looking statements are based on management's current expectations. However, it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors and circumstances that may cause Hepsiburada's actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including conditions in the U.S. capital markets, negative global economic conditions, potential negative developments resulting from epidemics or natural disasters, other negative developments in Hepsiburada's business or unfavorable legislative or regulatory developments. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. For a discussion of additional factors that may affect the outcome of such forward looking statements, see our 2024 annual report filed with the SEC on Form 20-F (File No. 001-40553), and in particular the 'Risk Factors' section, as well as the other documents filed with or furnished to the SEC by the Company from time to time. Copies of these filings are available online from the SEC at or on the SEC Filings section of our Investor Relations website at These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's estimates as of the date of this press release. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release. All forward-looking statements in this press release are based on information currently available to the Company, and the Company and its authorized representatives assume no obligation to update these forward-looking statements in light of new information or future events. Accordingly, undue reliance should not be placed upon the forward-looking statements. Non-IFRS Financial MeasuresThis press release includes certain non-IFRS financial measures, including, but not limited to, Gross Contribution, IAS 29-Unadjusted Gross Contribution, IAS 29-Unadjusted Revenue, EBITDA, IAS 29-Unadjusted EBITDA, Free Cash Flow and Net Working Capital. These financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to profit/loss for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company's presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See 'Presentation of Financial and Other Information' in this press release for a reconciliation of certain of these non-IFRS measures to the most directly comparable IFRS measure. Statement Regarding Unaudited Financial InformationThis press release includes unaudited quarterly financial information as of and for the three months ended March 31, 2024, and March 31, 2023 and as of December 31, 2024. The quarterly financial information has not been audited or reviewed by the Company's auditors. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All periods presented have been accounted for in conformity with IFRS and pursuant to the regulations of the in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Hepsiburada Announces the Fourth Bond Issuance of Hepsifinans
Hepsiburada Announces the Fourth Bond Issuance of Hepsifinans

Yahoo

time02-05-2025

  • Business
  • Yahoo

Hepsiburada Announces the Fourth Bond Issuance of Hepsifinans

ISTANBUL, May 03, 2025 (GLOBE NEWSWIRE) -- D-MARKET Electronic Services & Trading (d/b/a 'Hepsiburada') (NASDAQ: HEPS), a leading Turkish e-commerce platform, today announced the fourth bond issuance of its indirect wholly owned subsidiary, Hepsi Finansman A.Ş. ('Hepsifinans'), at a nominal value of TRY 66,950,000. Further to our disclosure in a report on Form 6-K furnished on September 11, 2024 regarding the Capital Markets Board's approval of Hepsifinans's issuance of bonds or bills with a total aggregate principal amount of up to TRY 1,050,000,000 in one or more tranches within one year, Hepsiburada announces that Hepsifinans closed its fourth bond issuance to domestic qualified investors on April 30, 2025. The bonds have an aggregate principal amount of TRY 66,950,000 with a six-month maturity. The bonds will accrue interest at a rate of 52.00% per annum. The principal and the coupon of the bonds will be repaid at maturity. Hepsifinans will use the funds raised to sustainably grow its consumer finance business. Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, and encompasses all statements, other than statements of historical fact contained in this press release. These forward-looking statements can be identified by terminology such as 'may,' 'could,' 'will,' 'expects,' 'anticipates,' 'aims,' 'future,' 'intends,' 'plans,' 'believes,' 'estimates,' 'targets,' 'likely to' and similar statements. These forward-looking statements are based on management's current expectations. However, it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors and circumstances that may cause Hepsiburada's actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including conditions in the U.S. capital markets, negative global economic conditions, potential negative developments resulting from epidemics or natural disasters, other negative developments in Hepsiburada's business or unfavorable legislative or regulatory developments. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. For a discussion of additional factors that may affect the outcome of such forward-looking statements, see our 2024 annual report filed with the SEC on Form 20-F on April 30, 2025 (Commission File Number: 001-40553), and in particular the 'Risk Factors' section, as well as the other documents filed with or furnished to the SEC by Hepsiburada from time to time. Copies of these filings are available online from the SEC at or on the SEC Filings section of our Investor Relations website at These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's estimates as of the date of this press release. These forward-looking statements should not be relied upon as representing Hepsiburada's views as of any date subsequent to the date of this press release. All forward-looking statements in this press release are based on information currently available to Hepsiburada, and Hepsiburada and its authorized representatives assume no obligation to update these forward-looking statements in light of new information or future events. Accordingly, undue reliance should not be placed upon the forward-looking statements. About Hepsiburada Hepsiburada is a leading e-commerce technology platform in Türkiye, operating through a hybrid model that combines first-party direct sales (1P) and a third-party marketplace (3P) with approximately 100 thousand merchants. With its vision of leading the digitalization of commerce, Hepsiburada serves as a reliable, innovative and purpose-driven companion in consumers' daily lives. Hepsiburada's e-commerce platform offers a broad ecosystem of capabilities for merchants and consumers including last-mile delivery, fulfilment services, advertising solutions, cross-border sales, payment services and affordability solutions. Hepsiburada's integrated fintech platform, Hepsipay, provides secure payment solutions, including digital wallets, general-purpose loans, buy now pay later (BNPL) and one-click checkout, enhancing shopping convenience for consumers across online and offline while driving higher sales conversions for merchants. Since its founding in 2000, Hepsiburada has been purpose-driven, leveraging its digital capabilities to empower women in the Turkish economy. In 2017, Hepsiburada launched the 'Technology Empowerment for Women Entrepreneurs' program, which has supported approximately 61 thousand female entrepreneurs across Türkiye in reaching millions of customers. Investor Relations Contactir@ Media Contactcorporatecommunications@ in to access your portfolio

Q4 2024 D Market Elektronik Hizmetler ve Ticaret AS Earnings Call
Q4 2024 D Market Elektronik Hizmetler ve Ticaret AS Earnings Call

Yahoo

time01-05-2025

  • Business
  • Yahoo

Q4 2024 D Market Elektronik Hizmetler ve Ticaret AS Earnings Call

Operator Ladies and gentlemen, thank you for standing by. I'm Vasilios your chorus call operator. Welcome and thank you for joining the Hepsiburada conference call and the live webcast to present and discuss the 4th quarter and full year 2024 final participants will be in a listen-only mode and the conference is being recorded. The presentation. Should anyone need assistance during the conference call, you may signal an operator by pressing the telephone. At this time, I would like to turn the conference over to Ms. Nilhan Olaan, Gyutskasekin, CEO, Mr. Sachin Kuseoglu, CFO, Ms. Terence Tuzhou, investor relations director, Ms. Tuzhou, you may now proceed. Thanks you very much for joining us today for Hepsiburada 4th quarter and full year 2024 earnings call. I'm pleased to be joined on the call today by our CEO Nilhan Olaan, Gyutskasekin and our CFO Sachin Kuseoglu. The following discussions reflect management's views as of today's date only. We undertake no obligation to update or revise this information except as required by law. Certain statements made on today's call are forward-looking statements. Actual results may differ materially from these forward-looking statements. Please refer to today's earnings relief as well as the risk factors described in the safe harbor slides of today's supplemental slide deck today's press release, the form 20F filed with the SEC on April 30, 2025, and other SEC filings for information factors that could cause our actual results to differ materially from these forward-looking statements. Also, we will reference certain non-IFS measures during today's call. Please refer to the appendix of our supplemental slide deck as well as today's press release for a presentation of the most directly comparable IFS measure and the relevant IFS to non-IFS reconciliation. As a reminder, a reply to this call will be available on our investor relations website. With that, I hand over to our CEO, Nilhan Olaan, Gyutskasekin. Thank you, Terence. Welcome, everyone, and thank you for joining us. I'm delighted to be with you today to present our 4th quarter and full year results. We concluded 74 with growth in marginal expansion through diligent execution of our fundamentals, notably, we delivered a real GMV growth of 12.1% in 2024 and we also achieved growth contribution margin at 11.3% with a 2.1%-point improvement on a yearly basis in 24. Our EBITDA, as percentage of GMV, continued its expansion, reaching 1.1% with a 0.7%-point rise year on year. On an unadjusted inflation basis, our GMV grew 74% year on year, and EBITDA percentage of GMV reached 2.1%. Now, I'd like to go into the performance of our operational metrics during the customers and merchants are always at the core of our ecosystem, and we work hard to improve our value proposition for that. In line with our customer centric approach, we improved our reliability, speed, and convenience of our logistics services as well as payment convenience with our diverse landing solution. Our active customers grew by 235,000 to 12.2 million. Our orders have shown 16% points year on year growth, resulting in 131.4 million orders, and our order frequency over the last 12 months reached 10.8%, up by 14%.On merchant side, they enhanced our logistics, to manhandling, fintech, and advertising solutions with an active merchant base of over 100,000, we continue to onboard additional brands, particularly in the life cycle categories. Let me now elaborate on our achievements in that report. In line with our profitable growth strategy, we remained focused on three priorities customer loyalty, cultivating the sustainable differentiators, HeftyJet and HeftyPay, and finally expanding our B2B services to Ofpi platform as a turnkey e-com solution partner for early 2024, we set clear targets for each of these strategic priorities, and now I am pleased to share the progress we make throughout the year. First, our loyalty program, Hexo Product Premium. The program continues to register, increased customer loyalty, reaching 3.7 million members enhancing the program offerings, we signed a partnership with Warner Bros. Discovery in 2024, and content provided as part of premium program benefits has widely expanded. Our next strategic priority has been our delivery services. Central to achieve this, it has widened penetration within our merchant base, whereby it delivered 72% of total parcels dispatched during the year. Hexige confirms its commitment to differentiation through service excellence, confirming its integral role in our delivery slide let's move on to our next strategic priority which is capitalizing on our differentiation through landing solutions. Our lending solutions include in-house buy now pay later, in-house consumer finance loans, shopping loans from partner banks, and general-purpose loans from our partner banks. Over the last several months, our total lending volume reached TRY16.2 billion, which is 2.6 times the total volume in 2023. Overall, our BMPI consumer finance loans and shopping loans were utilized in over 3.3 million orders since they are slide fourth key priority is offering strong capabilities to our merchants. Let me start with HeftyJet. With over 40 million parcels delivered in 2024, HeftyJet increased its off-platform volume by 89% year on year. Accordingly, 4, its off-platform share rose by 9.7%-points on year to nearly 34.6% of its total volume. Next, I would like to talk about HeftyPay's one clinic checkout solution pay with HeftyPay. We continue to expand its convenient solution to other retailers and all our merchants. HeftyPay is now integrated with 140 key accounts by the end of 2024. For all of our strategic priorities, solid progress in our KPIs throughout the years reflects the dedicated performance of and strong execution by an entire. Let me say a few words in early of 2025 was very challenging due to ongoing macroeconomic headwinds pressuring purchasing power of our consumers, as well as boycotts against shopping starting March. Our marketing activities were also limited in all performance channels due to political sensitivity and the level of boycott in the first quarter of the year. However, we also had a very positive milestone for 5 years. On January 29th, the closing of the transaction between and our founder, the members of family, to purchase a 65.4% controlling stake in Efseborazawa are extremely excited about the potential value creation opportunities that arise from this deal. It is the preeminent payment, marketplace, and fintech ecosystem in Kazakhstan. With this, I thank you for listening and leave the floor for Tetchkin, our CFO to provide further insights into our financial platforms. Thank you, Nilhan, and welcome everyone. I'm delighted to be with you today to present our 4th quarter and full year results. On an unadjusted for inflation basis, our GMV grew by 49.4%, close to our guidance of 50% to 55%. And our EBITDA as a percentage of GMV reached 1.8% in line with our guidance of 1.8 to 2% in the fourth quarter. Adjusted for inflation, our GMV rose by 12.1% in 2024 compared to full year the profitability side, our gross contribution margin rose to 11.3% with a 2.1%-point improvement compared to last year. Our EBITDA as a percentage of GMV rose to 1.1% for the full year. This is a 0.7%-point rise year on year. Let's go over the details of this performance. In 2024, 12.1% of real GMV growth came through 131.4 million orders and a higher average order value. Excluding our digital products, our order growth was at around 8% in 2024 compared to the previous year. Average order value growth of around 4% due to a faster than inflation rise in the average selling 2024, we saw a 2.9%-point shift towards our marketplace operations compared to 2023, and our 3P operations corresponded to around 70% of our business. This shift came as a result of a 2.9%-point shift towards non-electronics, which is in line with our broader strategy. Let's have a look at our revenue and gross contribution some color on revenues. Our revenue grew by 6.4% in quarter fall, bringing our revenue growth for the full year to 11.1% compared to the same period of last year. Our revenue growth in quarter 4 was mainly due to a 15th percentage rise in 3P revenue, 18% increase in delivery service revenue, and 127% increase in other revenue. These were partially offset by the 1.6% decrease in our 1-year revenue as a result of the shift in GMV towards 3P compared to quarter 4 2023. Our revenue growth in 2024 was mainly due to the 50% increase in delivery revenue and the 112% increase in other revenue, including our advertising services revenues and hips broad premium subscription revenues. 12% revenue growth in marketplace operations also contributed to our overall revenue growth in gross contribution margin improved by 2.1% points to 11.3% in 2024 compared to last year. This marginal improvement was mainly attributable to increased delivery service revenue, higher other revenue, including ads and premium subscription revenue, together with an increase in the 1P move on to our EBITDA performance on the next slide. We recorded 1.1% EBITDA as the percentage of GMV in 2024, with a 0.7%-point yearly improvement. Excluding the one-off items in 2023, year on year improvement in ABTA was at 0.9% points for the full year 2024. This 0.7% improvement was driven by a 2.1% rise in gross contribution margin, partially offset by 0.5% rise in payroll and outsourced staff expenses. 0.4% rise in shipping and packaging expenses, 0.2% rise in advertising expenses, and 0.3% rise in other operating expenses. The rise in payroll and outsourced staff expenses came from the annual and mid-year salary rises along with the rise in employee number for our increase in shipping and packaging expenses as a percentage of GMV was mainly driven by a higher parcel volume and the rise in delivery fees per unit combined with annual minimum wage increases. The increase in other operating expenses was mainly due to the recognition of provision for the license fee amounting to TRY180 million and higher bed debt provisions in let's have a look at our cash flow full year 2024, pre cash flow decreased by TRY1.9 billion compared to a year ago. This decrease was mainly due to a TRY1.55 billion decrease in net cash provided by operating activities and TRY0.34 billion increase in CapEx. With TRY2 billion in CapEx, our free cash flow was at TRY3.7 billion for the full year this, I will now hand over to Nilhan for the key takeaways. We leave you with the following key takeaway from today's presentation. For the year 2024, we recorded real double digit GMV growth of 12.1%, supported by 2.1%-point rising growth contribution, our EBITDA reached TRY2.1 billion corresponding to 1.1% of GMV in Q1, we had two important developments. On one side, the year started with macroeconomic headwinds, pressuring the purchasing power of consumers, and boycott started against shopping. On the other, which is positive side, an important milestone in the company's history took place on 29 January. Under CASTIO ownership, we are excited about the opportunities we foresee going forward. With this, I would like to thank you all for listening we don't have a Q&A, but we are much looking forward to connecting with you and your questions. Please direct them to our investor you. Operator Ladies and gentlemen, the conference is now concluded, and you may disconnect your you for calling and have a good afternoon. Sign in to access your portfolio

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