D-Market Elektronik Hizmetler ve Ticaret (HEPS) Q2 2024 earnings summary

Executive summary

• Q2 2024 GMV reached TRY 33.8 billion, up 3.9% year-over-year; H1 2024 GMV was TRY 73.1 billion, up 21.6% year-over-year.

• Delivered solid Q2 2024 results, exceeding guidance for GMV growth and EBITDA as % of GMV, despite macroeconomic headwinds.

• EBITDA as a percentage of GMV rose to 1.1% in Q2 2024, up 0.3pp year-over-year, and 1.0% for H1 2024.

• Free cash flow in H1 2024 was TRY 472 million, the highest first half since IPO.

• Loss for the period was TRY 384.5 million, reversing from a profit of TRY 1.5 billion in Q2 2023, mainly due to lower financial income and higher financial expenses.

Financial highlights

• Q2 2024 gross contribution margin reached 12%, up 2.6pp year-over-year, highest since IPO.

• EBITDA for Q2 2024 was TRY 386.6 million, up 45.7% year-over-year; H1 2024 EBITDA was TRY 700.3 million, up 151.4%.

• Q2 2024 revenue was nearly flat at TRY 10,112.9 million; H1 revenue grew 20.5% year-over-year.

• Operating expenses in Q2 2024 were TRY 10,145.3 million, down 0.5% year-over-year.

• Free cash flow for H1 2024 turned positive at TRY 471.6 million, compared to negative TRY 1.3 billion in H1 2023.

Outlook and guidance

• Q3 2024 GMV growth expected at 70%-75% year-over-year, unadjusted for inflation.

• Q3 EBITDA expected around 2.2% of GMV.

• Full-year positive free cash flow expected, with continued EBITDA improvement.

• Management remains cautiously optimistic, focusing on sustainable and profitable growth amid challenging macroeconomic conditions.