Global Investment Holdings (“GIH”), a diversified conglomerate operating in 14 different countries across 4 continents, announced its full year consolidated results which ended 30 June 2023, and commented on recent developments.

Global Investment Holdings reported Consolidated Net Profit of 312.6mn TL in 6M 2023, compared to a net profit of TL 81.3mn in 6M 2022. Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue) surged by 54% in 6M 2023 over 6M 2022, reaching TL 3.7bn; while Consolidated Operating EBITDA rose 75% to TL 1.25bn in the same period.

Global Investment Holdings’ Chairman & CEO, Mehmet Kutman, stated:

“I am having the pleasure to have seen that despite inflationary pressures and volatile market conditions, we have performed well across all our business lines in the first half of the year. We achieved strong performance in Net Profit, Revenue, and EBITDA generation in 6M 2023 compared to the same period last year. Revenue, and EBITDA growth was pleasingly well above inflation and I believe that we will achieve even better results with the same determination and performance in the second half of the year.”

The Chairman emphasize that:” I would like to start with two pieces of good news regarding our portfolio of ports. Firstly, we have recently signed a 30-year concession, with a potential 10-year extension option, with the Government of Saint Lucia for the cruise related operations in Saint Lucia. This agreement marks a further significant step in GPH’s strategic ambitions in the Caribbean. Additionaly, GPH reached an agreement to extend its concession agreement for Ege Port, Kusadasi, a unique destination for eastern Mediterranean itineraries. The original concession agreement was due to expire in July 2033, and following this extension agreement the concession will now expire in July 2052. The upfront concession fee has been funded by a capital increase at Ege Port. This capital increase was provided by GPH only. As a result, GPH’s equity stake in Ege Port has increased to 90.5%”

The Chairman continued: “In the 6M 2023, Industry booking patterns have been rebuilt to market norms over the last 12 months, and all major cruise lines have reported record booking trends for 2023. The scheduled launch of new cruise ships in the year ahead means the number of available berths across the global cruise fleet will reach all-time highs in 2024 and, when combined with industry occupancy rates reaching pre-Covid-19 levels, the industry will be propelled to exciting new highs. In the second quarter of 2023, cruise demand remained strong, while booking volumes continued to accelerate for both 2023 and 2024. On GPH front, average occupancy rate of the cruise ships visiting GPH’s ports was 109% in June 2023. Looking into the rest of the year, current call reservations at GPH’s consolidated cruise ports for Apr 2023- Mar 2024 period imply passenger volumes in excess of 11.8 mn (Passenger volumes at all ports, including equity accounted ports La Goulette, Lisbon, Singapore, Venice are expected to be in excess of 15m). According to Cruise Industry News, by the end of 2027, passenger capacity in the cruise industry is forecast to grow to over 40 mn, a growth rate of 45% from pre-Covid levels.

The Chairman added, “We successfully refinanced Nassau Cruise Ports local bond issued in June 2020. The refinancing resulted in an increase in the nominal outstanding amount to USD 145 mn (from USD 134.4 mn) and a reduction in the fixed coupon to 6.0% (from 8.0%), reducing the annual interest payment by USD 2.0 mn..”

As for Gas business, despite the challenging market conditions, Naturelgaz has delivered sound results preserving its pioneer position in the market. Naturelgaz has focused on investments in 2023 which target to increase capacity and cut costs; spending nearly 100mn TL (financed by equity) in 6M 2023.

As for Power business, pursuant to the agreement signed in October 2022 of a new distributed solar power plant with a capacity of 2.05 MW, the construction of which has been completed in August 2023; hence total installed capacity of the group has increased to 96.2 MW as of August 2023.

As for Brokerage&Asset Management, in the beginning of the year, we were quite hesitant due to market uncertainities. However, financial markets have gained momentum due to the tight fiscal policies put in place. I expect such momentum to continue in the second half of the year.

Commenting on the results, the Chief Financial Officer of Global Investment Holdings, Ferdağ Ildır, stated:

“As known, During the last two years GPH has received additional, long-term funding support from us in the form of subordinated shareholder loans to finance project expenses for expansion projects and general corporate purposes. With the aim of reducing this debt and increasing our stake in GPH, we realized a capital increase at GPH. As a result, our stake in GPH’s issued share capital has reached 66.3%. Furthermore, as GIH, we will be distributing dividends until the end of this year.”

Global Investment Holdings reported 3.7 bn TL revenues (excluding IFRIC-12 Construction Revenue) in 6M 2023, indicating a robust 54% increase yoy well above inflation, with strong contribution from major business divisions, with ports and brokerage&asset management divisions contributing the most.

Global Investment Holdings’ consolidated operating EBITDA soared by 75% in 6M 2023 yoy well above inflation, reaching 1.25bn TL and leading to margin expansion. EBITDA growth was mainly driven by a solid contribution from the ports business and brokerage&asset management.

GIH reported a consolidated net profit of 312.6mn TL in 6M 2023, compared to a net profit of TL 81.3mn in 6M 2022. The bottom line incorporated TL 488.1mn of non-cash charges of which TL 465mn were depreciation and amortization, and TL 23.1mn in net foreign exchange loss.

Depreciation and amortization charges, increased from TL 339.4mn in 6M 2022 to TL 465mn in 6M 2023.

The Group’s net interest expenses increased from TL 171.4mn TL in 6M 2022 to TL 227.5mn in 6M 2023, mainly driven by the increase in LIBOR and depreciation of TL in 6A 2023 yoy.

For further information, please contact:

GIH Investor Relations

Tel: +90 212 244 60 00

E-mail: investor@global.com.tr

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