Net : 2022 3Q Earning Reviews

NET HOLDİNG A.Ş.
	Nov. 2022
Earning Reviews / 2022 Q3

*Merit Operations

**Soon

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NET HOLDING A.Ş.
	Nov. 2022
	Earning Reviews / 2022 Q3

According to the 3rd quarter financials of Net Holding A.Ş.

•Consolidated sales realized at TL559.7mn (USD63.3mn) in 2021, increasing to TL2,243.1mn (USD121.2mn) in the third quarter of 2022. (+301% TL, 91,5% USD)

•EBITDA value realized as 177.1 mn TL (20.0 mn USD) in the third quarter of 2021; In the third quarter of 2022, with the disappearance of the effects of Covid, it increased to 752.3 mn TL (40.7 mn USD).

(+325% TL, 103% USD)

•Cash position stood at TL616.2mn (USD69.7mn) in the third quarter of 2021, compared to TL772.9mn (USD41.8mn) in the same period of 2022. (25.4% TL, -41,2% USD)

•Net financial expenses were TL351.4mn (USD39.7mn) in the third quarter of 2021, compared to TL709.4mn (USD38.3mn) in 2022. (+101.9% TL, -3,5% USD).

•The net debt position was TL 1,721 mn (USD 194.6 mn) in the third quarter of 2021, compared to TL 2,167 mn (USD 117.1 mn) in the same period of 2022.

(25.9% TL, -39.8% USD)

•Advances, stated as TL 648.5 mn under short-term deferred income, grew in line with our increased activities after the pandemic. These advances include the advances that our Casino players keep for future use due to the trust they have in our company, and the prepayments received by the hotels.

According to CMB regulation, rent costs (including buildings in operation, equipment etc.) are now required to be recorded in balance sheet, in the asset side as «Right of Use Assets», and in the liabilities side as «Right of Use Liabilities». However, as per the requirements of CMB, rent costs are recorded as part of debt in the liabilities side instead of a separate item named «Right of Use Liabilities». To clarify, new regulation implementation resulted in an increase in total debt in B&S, however, this item is not a bank loan or any financial institution debt. In balance sheet, total debt of TL3,275.8 mn includes TL2,939.8 mn financial debt and TL336 mn «Right of Use Liabilities».

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Summary

Operational Breakdown of the Financial Results;

• While our sales activities in the TRNC were TL 426.6 mn (USD 48.2 mn) in the third quarter of 2021, a total sales revenue of TL 2,103.4 mn (USD 113.7 mn) was achieved in the third quarter of 2022.

(+393% TL, +135.6% USD)

• The EBITDA value obtained from our activities in the TRNC; While it was TL 124.1 mn (USD14.0 mn) in the third quarter of 2021, it increased to TL 792.3

mn (USD42.8 mn) in 2022. (+538% TL, +205% USD)

• While our sales activities in the Balkans were TL 133.8 mn (USD 15.1 mn) in the third quarter of 2021, a total sales revenue of TL 166.1 mn (USD 9 mn) was achieved in the third quarter of 2022.

(+24% TL, -41% USD)

• The EBITDA value obtained from our operations in the Balkans was TL48.0 mn (USD5.4 mn) in the third quarter of 2021, while it was TL -15.5mn (USD-0.8

mn) in 2022.

(-132.4% TL, -115.5% USD)

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EARNING REVIEWS

Sales (mn TL)

2,500		2243.1	1,000
			900
2,000			800
	301%		700
1,500		600
			500
1,000			400
559.7			300
500			200
			100
0			0
2021		2022

EBITDA (mn TL)

752.3

325%

177.1

2021

2022

	Parent Shareholders Equity (mn TL)		Net Financial Expenses (mn TL)
	1,000
12,000			900
10,000		9,777.0	800		709.4
	178%		700		102%
8,000			600
6,000			500
			351.4
			400
4,000	3,521.1		300
			200
2,000			100
0			0
		2021	2022
2021	2022

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EARNING REVIEWS

140

120

100

80

60

40

20

0

600

500

400

300

200

100

0

Sales (mn USD)

121.2

92%

63.3

2021

2022

Parent Shareholders Equity (mn USD)

528.4

33%

398.2

2021

2022

45

40

35

30

25

20

15

10

5

0

50

45

40

35

30

25

20

15

10

5

0

EBITDA (mn USD)

40.7

103%

20.0

2021

2022

Net Financial Expenses (mn USD)

39.7	38.3

-4 %

2021

2022

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