Page 32 - TURKRptJun19

fell by 3.2% y/y to TRY758mn while the net losses of the five listed construction companieswidened to TRY24mn in Q1 this year from TRY13.2mn a year ago. Thirty listed real estate investment trusts reported a combined loss of TRY178mn, a figure comparing very unfavourably with the TRY1.1bn of net income they registered a year earlier. Seven listed retailers’ cumulative losses stood at TRY283mn in the first quarter versus a TRY190mn loss in Q1 2018. The net income of 13 steelmakers plunged 32% y/y to TRY1.4bn in Q1. The combined losses of four listed airlines were TRY1.3bn, a big decline on the TRY384mn loss they reported a year ago while 10 energy companies generated a profit of TRY53mn in the first quarter, down 57% on an annual basis. The stock exchange’s BIST-100 benchmark index has declined 4.9% since the start of the year, while it has fallen more than 11% over the past year. The market capitalisation of the Borsa Istanbul is $143bn, which corresponds to 17% of Turkey’s GDP.
Turkish conglomerate Sabanci Holding said on May 13 its net profit stood at Turkish lira (TRY) 1.06bn ($174mn) in the first quarter, almost exactly equalling the TRY 1.07bn recorded a year earlier. Sales gained to TRY4.3bn in the first quarter from TRY 3.4bn in the same three months of 2018, it added in a filing to the Istanbul stock exchange. However, the TRY is down around 12% against the dollar in the year to date, despite picking up to 5.9649 by around 07:55 local time on May 13 having fallen as low as 6.24 prior to the weekend.
Lira-hit fuel prices send Turkish Airlines to a Q1 net loss more than double last year’s. Higher aviation fuel prices and other costs caused Turkish Airlines’ Q1 loss to more than double to Turkish lira (TRY) 1.25bn ($206mn) from TRY 314mn ($86mn) a year ago. The average forecast of analysts was for a TRY662mn loss, Reuters said. Higher oil prices on lira volatility and increased staff and marketing expenses unit costs weighed on the flag carrier, which operates flights to 306 destinations in 124 countries. “Net loss is even way higher than the lowest estimate in the street,” Yatirim Finansman Securities said in a note, adding that a loss on fixed asset sales also weighed on the results. Turkish Airlines has maintained its targets for the year. It is banking on an expected recovery arriving with the high season that starts at the end of May. The airline is targeting revenue of $14.1bn and an EBITDAR margin of 22-24% at the end of this year. It aims to carry 80mn passengers in 2019. Since April, Turkish Airlines’ hub has been at Turkey’s new mega airport, Istanbul Airport, situated outside the business capital. Previously it was at Istanbul’s Ataturk Airport, which is now being decommissioned. There are doubts whether the available transport connections between the new airport and Istanbul will be sufficient to cater for passenger volume. However, the sheer scale of the airport should enable Turkish Airlines to build up its offer of connecting flights to destinations worldwide.
32 TURKEY Country Report June 2019 www.intellinews.com