Arena Bilgisayar Reports Strong Sales Growth Amidst a Sharp Plunge in Profitability
In the second quarter of 2025, Arena Bilgisayar increased its net sales by 31.5% in TL terms to 9.25 billion TL and by 10.4% in USD terms to 239.2 million USD. However, the company reported a significant net loss of 366.5 million TL.
Arena Bilgisayar a Reddington India subsidiary in Turkey announced its financial results for the second quarter of 2025, revealing a significant increase in net sales. Sales grew by 31.5% on a Turkish Lira (TL) basis to 9.25 billion TL and by 10.4% on a US Dollar (USD) basis to 239.2 million USD.
Despite this strong sales performance, profitability was severely impacted by rising operational expenses and financing costs. In a stark contrast to the 217.2 million TL net profit reported in the same period last year, Arena recorded a net loss of 366.5 million TL this quarter.
While gross profit rose by 18% year-on-year to 509 million TL, a staggering 300% increase in marketing, sales, and distribution expenses, which reached 461.6 million TL, pushed the company’s operating profit into negative territory. Financing expenses for the period amounted to 380.4 million TL. Concurrently, the company’s outstanding bank loans grew by 22.5%, reaching 4.79 billion TL.
Doubtful Receivables Double
An analysis of product group performance shows strong growth across several categories. Sales of OEM & peripherals surged by 139%, printing solutions & office consumables by 101%, software by 61%, and enterprise products by 41%.
On a channel basis, retail sales increased by 104.8% and wholesale sales grew by 107.3%. However, the dealer sales channel saw a 11.6% decline in USD terms, despite a 6% increase in TL terms. A concerning indicator was the provision for doubtful receivables, which increased by 105% to reach 654 million TL.
Key Highlights from Arena Bilgisayar’s Q2 2025 Report
- Provision for Doubtful Receivables: Increased by 105.9% in TL terms and 95.7% in USD terms.
- Inventories: Increased by 23.1% in TL terms and 17% in USD terms.
- Bank Loans: Increased by 22.5% in TL terms and 16.4% in USD terms.
- OEM & Peripherals Sales: Increased by 139.2% in TL terms and 99.8% in USD terms.
- Printing Solutions & Office Consumables Sales: Increased by 101.3% in TL terms and 68.2% in USD terms.
- Software Sales: Increased by 61.1% in TL terms and 34.6% in USD terms.
- Wholesale Channel: Grew by 107.3% in TL terms and 76.6% in USD terms.
- Retail Channel: Grew by 104.8% in TL terms and 74% in USD terms.
- Net Profit/Loss: Swung from profit to loss, marking a 117.1% decline in TL terms and a 116% decline in USD terms.
- Mobile Sales Channel: Declined by 39% in TL terms and 48.3% in USD terms.
- Consumer Electronics Sales: Declined by 58.8% in TL terms and 65.6% in USD terms.
