James Hayes's questions to D Market Elektronik Hizmetler ve Ticaret AS (HEPS) leadership • Q1 2024
Question
James Hayes from Lucerna Global Capital asked for an update on Turkish regulatory initiatives constraining larger competitors, which items will take effect in 2025, and for medium-term thoughts on free cash flow generation.
Answer
Executive Helin Celikbilek detailed several regulatory impacts, including license fees for the largest player, a ban on private labels, and advertising promotion reductions, which will continue to have an impact into 2025. CFO Seckin Koseoglu addressed free cash flow, stating that EBITDA will continue to grow year-over-year and the business will maintain a negative net working capital model. While seasonality may affect quarterly results, he expects the full-year free cash flow position to improve in 2024.