Core Insights - D-MARKET Electronic Services & Trading, operating as Hepsiburada, has partnered with Warner Bros. Discovery to offer BluTV subscriptions to Hepsiburada Premium members, enhancing the value proposition for its subscribers [1][2] - Hepsiburada Premium has reached 2.6 million subscribers as of May 31, 2024, providing various benefits including free delivery, cashback, and discounted services [2] - BluTV, acquired by Warner Bros. Discovery in December 2023, offers a diverse range of Turkish and international content, including over 10,000 hours of on-demand premium content [1][7] Company Overview - Hepsiburada is a leading e-commerce platform in Turkey, connecting over 64 million members with more than 248 million stock keeping units across 30 product categories [3] - The company operates a hybrid model combining first-party direct sales and a third-party marketplace, with approximately 102,000 merchants [3] - Hepsiburada aims to lead the digitalization of commerce in Turkey, providing a comprehensive ecosystem for merchants and consumers, including last-mile delivery, advertising services, and payment solutions [4] Social Impact - Since its inception in 2000, Hepsiburada has focused on empowering women in the Turkish economy, supporting around 53,000 female entrepreneurs through its 'Technology Empowerment for Women Entrepreneurs' program [5]

D-Market Electronic Services & Trading (NASDAQ:HEPS) reported its first quarter results, highlighted by strong growth and expanding margins, We covered some of these themes issuing a rare "strong buy" rating for the stock last year noting the company's path to sustainable profitability deserved a closer look. I HEPS Q1 Earnings Recap Three months ended March 31, unaudited Notably, the company presents the figures as inflation-adjusted, eapturing the "real growth". This is important as Turkey continues to de ...

Financial Data and Key Metrics - Gross Merchandise Value (GMV) grew by 43% in Q1 2024, adjusted for inflation, driven by a 17% increase in average order value and a 22% rise in total orders [16][36] - EBITDA improved by 120 basis points year-on-year to 2.4% of GMV on an unadjusted basis, and by 70 basis points to 0.8% when adjusted for inflation [32] - Gross contribution margin improved by 1.2 percentage points to 10.5%, supported by higher delivery service and advertising revenues [8][38] - Free cash flow was TRY1 billion in Q1 2024, up from TRY102 million a year ago, driven by improved EBITDA and working capital management [18][30] Business Line Performance - Marketplace operations accounted for 68% of total business in Q1 2024, with a 38% growth in retail and 32% growth in marketplace operations revenue [8][17] - Delivery service revenues nearly doubled year-on-year, contributing 14% of total revenues, driven by off-platform business momentum and higher delivery charges [8] - Advertising services revenues doubled, while other revenue lines grew by 148%, supported by a fourfold increase in loyalty subscription revenues [8] - Hepsipay, the company's BNPL and consumer finance solution, facilitated over 1.1 million orders in the last 12 months, with total lending volume tripling to TRY8.1 billion ($290 million) [5] Market Performance - Active customer base grew to 12.1 million, with 171,000 new customers added in Q1 2024 [13] - Order frequency over the last 12 months increased by 30%, reaching 9.8 orders per customer [4][36] - HepsiJet, the company's delivery service, delivered 3.2 million parcels in Q1, with off-platform volume accounting for 33% of total deliveries [14] Strategic Direction and Industry Competition - The company is focused on expanding its loyalty program, Hepsiburada Premium, which has 2.6 million members, and leveraging its superior delivery services through HepsiJet [13][33] - Hepsipay aims to capture a significant share of Turkey's $34 billion consumer loan market by growing its BNPL and shopping loan offerings [5] - The company is building cross-border capabilities, including a partnership with Jumia, to expand its reach beyond Turkey [28][65] - Regulatory changes in 2025, such as license fees and restrictions on private labels, are expected to constrain larger competitors like Amazon and Alibaba in Turkey [29][52] Management Commentary on Operating Environment and Outlook - Management expects Q2 2024 GMV growth of around 75% year-on-year, with EBITDA margins improving to 1.8%-2% of GMV [15] - The company anticipates continued challenges in the macroeconomic environment, including cooling consumer demand, but remains confident in its ability to grow sustainably [15][52] - Management highlighted the importance of affordability and payment solutions in Turkey, where Hepsipay holds a competitive advantage [51] Other Key Information - The company does not expect to pay corporate taxes in 2024 due to R&D tax incentives, with tax payments likely starting in 2026 [46] - A potential dual listing in Turkey's Borsa Istanbul is under evaluation, but no concrete decision has been made [50] Q&A Session Summary Question: Impact of the eighth holiday on Q2 GMV growth - The impact of the eighth holiday is already incorporated in Q2 guidance, with offline sales typically increasing during holidays, potentially reducing online sales growth by 1-2% [39][40][41] Question: Market share and competition with Amazon in Turkey - The company does not report exact online market share but claims to be gaining significant share in key categories like electronics, home, and mom & baby products [21][22][63] Question: Categories experiencing slowdowns in Q1 2024 - Slower demand was observed in discretionary categories like computers and TVs, with consumers trading down and deferring purchases rather than reducing online shopping frequency [23][60] Question: Plans to expand services in developed markets like North America - The company has no immediate plans to expand into North America but is exploring cross-border opportunities through partnerships and integrations with other marketplaces [25][61] Question: Expected incremental GMV from the Jumia partnership - Significant GMV impact from the Jumia partnership is expected in 2025 as the integration progresses, with minimal impact anticipated in 2024 [49][65] Question: Free cash flow generation outlook for 2024 - The company expects to improve free cash flow generation in 2024 through higher EBITDA and continued negative working capital management [30][59]

Our short-term bank borrowings are utilized to facilitate supplier and merchant financing as well as for our short-term liquidity needs in the ordinary course of our operations. Our short-term borrowings increased to TRY 313.5 million as of March 31, 2024, from TRY 211.1 million as of December 31, 2023. As of March 31, 2024, supplier and merchant financing loans corresponded to TRY 53.4 million of the short-term bank borrowings compared to TRY 20.4 million as of December 31, 2023. Our long-term borrowings d ...

ISTANBUL, Türkiye, June 13, 2024 (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, 2024. Date Index Conversion Factor 31 March 2024 2,139.5 1.00 31 December 2023 1,859.4 1.15 31 March 2023 1,269.8 1.68 Restatement of financial information: Pursuant to the International Accounting Stan ...

Group 1: Company Overview - Hepsiburada is a leading e-commerce technology platform in Türkiye, connecting over 63 million members with approximately 230 million stock keeping units across over 30 product categories [3] - The company operates a hybrid model combining first-party direct sales and a third-party marketplace with over 101 thousand merchants [3] - Hepsiburada aims to lead the digitalization of commerce, providing a broad ecosystem of capabilities including last-mile delivery, advertising services, on-demand grocery delivery, and payment solutions through Hepsipay [4] Group 2: Recent Developments - Hepsiburada successfully issued its first asset-backed security (ABS) amounting to 150 million TRY as part of a 2 billion TRY limit approved by the Capital Markets Board [1][2] - The issuance included four tranches with a maximum maturity of 147 days, and interest rates varied between 54% to 57% depending on maturity [2] - The funds raised will be utilized to sustainably grow Hepsiburada's Buy Now Pay Later (BNPL) business and reduce its impact on working capital [6] Group 3: Social Impact - Since its founding in 2000, Hepsiburada has focused on leveraging digital capabilities to enhance the role of women in the Turkish economy [5] - The company initiated the 'Technology Empowerment for Women Entrepreneurs' program in 2017, supporting over 50.5 thousand female entrepreneurs throughout Türkiye [5] Group 4: Market Response - The ABS offering was significantly oversubscribed, with strong demand leading to an early termination of the marketing period [6] - Investors included major asset management companies, pension funds, and high-net-worth individuals, indicating significant investor appetite [6]

ISTANBUL, Türkiye, May 30, 2024 (GLOBE NEWSWIRE) -- D-MARKET Electronic Services & Trading (d/b/a "Hepsiburada") (NASDAQ: HEPS), a leading Turkish e-commerce platform, will report its unaudited financial results for the first quarter ending March 31, 2024 before the U.S. market opens on Thursday, June 13, 2024. Conference Call and Webcast Details Hepsiburada's management will host an analyst and investor conference call and live webcast to discuss its financial results at 16.00 İstanbul / 14.00 London / 9.0 ...

ISTANBUL, Türkiye, May 30, 2024 (GLOBE NEWSWIRE) -- D-MARKET Electronic Services & Trading (d/b/a "Hepsiburada") (NASDAQ: HEPS), a leading Turkish e-commerce platform, will report its unaudited financial results for the first quarter ending March 31, 2024 before the U.S. market opens on Thursday, June 13, 2024. Hepsiburada's results presentation will be available on the Hepsiburada Investor Relations website https://investors.hepsiburada.com on June 13, 2024. About Hepsiburada Hepsiburada is a leading e-com ...

ISTANBUL, April 30, 2024 /PRNewswire/ -- D-MARKET Electronic Services & Trading (d/b/a "Hepsiburada") (NASDAQ: HEPS), a leading Turkish e-commerce platform, today announced that it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2023 with the Securities and Exchange Commission (the "SEC") on April 30, 2024. The annual report on Form 20-F can be accessed under the SEC Filings section on Hepsiburada's investor relations website at https://investors.hepsiburada.com/en/financials ...

[Report of Foreign Private Issuer (Form 6-K)](index=1&type=section&id=FORM%206-K) [Report Identification and Registrant Details](index=1&type=section&id=Report%20Identification%20and%20Registrant%20Details) This section identifies the Form 6-K filing for D-MARKET Elektronik Hizmetler ve Ticaret Anonim Şirketi, a foreign private issuer, detailing its registration and annual report filing type - Report Type: **Form 6-K**, Report of Foreign Private Issuer[1](index=1&type=chunk) - Registrant: D-MARKET Elektronik Hizmetler ve Ticaret Anonim Şirketi (D-MARKET Electronic Services & Trading)[1](index=1&type=chunk) - Commission File Number: **001-40553**[1](index=1&type=chunk) - Annual Report Filing Type: **Form 20-F**[2](index=2&type=chunk) [Signatures](index=2&type=section&id=SIGNATURES) This section confirms the official signing of the report on April 30, 2024, by the CEO and CFO of D-MARKET Electronic Services & Trading - Signing Date: **April 30, 2024**[6](index=6&type=chunk) - Signatories: Nilhan Gökçetekin (Chief Executive Officer) and M. Seçkin Köseoğlu (Chief Financial Officer)[6](index=6&type=chunk) [Exhibits](index=3&type=section&id=EXHIBITS) This section details Exhibit 99.1, a press release from April 30, 2024, announcing the filing of the 2023 Annual Report on Form 20-F - Exhibit 99.1: Press release dated **April 30, 2024**, announcing the filing of the **2023 Annual Report on Form 20-F**[8](index=8&type=chunk)