BGC Partners: Datagate 1Q19 Earnings – Broadly in line
Datagate posted TL5.7mn net income in 1Q19 (1Q18: TL4.1mn, 4Q18: TL6.8mn), broadly in line (BGC: TL6.4mn)... The weakness in Datagate's revenues continued as Turk Telekom continues to apply strict rules in the contracted phone sales which is affecting especially high-priced cell phones (such as the new iPhone series). On the other hand, soaring prices curbed the end-client demand for smartphones. The company posted TL139.6mn revenues in 1Q19, down by a large 51.3% y/y, slightly below our TL150mn estimate. Despite weaker revenue performance, Datagate posted a stable operational profitability with TL4.2mn EBITDA (3.0% margin) vs. 1Q18’s TL7.6mn (2.6% margin) (BGC: TL5.4mn). All in all, the company reported TL5.7mn net income, broadly in line with our TL6.4mn estimate. In 1Q19, Datagate’s working capital requirements increased by TL26.8mn to TL118.3mn (a seasonal issue in our view), which has pushed TL11.5mn net cash at 2018-end to a net debt position of TL7.1mn as of 1Q19.Datagate Bilgisayar Malzemeleri Ticaret AS. Datagate Bilgisayar Malzemeleri Ticaret AS is a Turkey-based computer and computer peripherals distributor. The Company distributes, markets and offers logistics and after-sale services for more than 1,000 computers and computer accessories of international brands, such as Seagate, Intel, Acer, Fujitsu, Belkin, Sapphire, Vestel, genius, Samsung and Transcend, among others. The Company's product portfolio includes microprocessors, hard discs, memory units, optical units, motherboards, tapes, video accelerator cards, monitors and various types of hardware supporting software. The Company distributes its products to wholesale companies and retailers. As of December 31, 2011, its main shareholder was Indeks Bilg. A.S. (59.24%).
BGC has been one of the major market players in Turkish OTC debt, FX and swaps markets since 1998.
We started offering corporate finance and investment banking services to our clients in 2013. We offer a complete range of financial services to help our clients achieve their goals. Our main areas of activity within investment banking are as follows:
- Mergers & Acquisitions
- Equity Capital Markets
- Debt Finance & Advisory
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