Turkey's D-MARKET Q1 revenue rises 22.9% net loss widens

Overview

• Turkey e-commerce platform's Q1 revenue rose 22.9% yr/yr to TRY 23.1 bln

• Q1 EBITDA more than doubled, but net loss widened to TRY 992 mln

• Higher expenses and financial costs drove the larger net loss despite revenue growth

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• ORDER AND GMV GROWTH - Co said revenue growth was driven by a 28.4% increase in GMV and 22.1% rise in orders, reflecting targeted marketing and delivery initiatives

• HIGHER OPERATING EXPENSES - Increased advertising and shipping costs, as well as investments in growth initiatives, contributed to higher operating expenses and a wider net loss

• GROSS MARGIN PRESSURE - Gross contribution margin fell 0.8pp, mainly due to declines in premium, consumer finance, and fulfillment revenue

Company press release: ID:nGNX3Dnr1

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the department stores peer group is "buy"

• Wall Street's median 12-month price target for D Market Elektronik Hizmetler ve Ticaret AS is $3.40, about 22.3% above its May 6 closing price of $2.78

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