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Successful Transactions

IDDAA (Inteltek & Bilyoner)

In June 2006, I parted ways with Teknoloji Holding which I co-founded and was a 50% shareholder, taking 6 companies from it along as I left. According to the job division between my partner and myself, I had been personally in charge of business and market development for 18 years, which have provided me with the opportunity of being a pioneer for many areas in Turkey . There is one venture that is deemed to be the most successful of all and that is IDDAA. I was involved with this project first as project leader, then as the Executive Board Member representing Teknoloji Holding following the launch of the company until we transferred our shares to our Intralot in November 2005.

We sold our 20% of shareholding in Inteltek that had appreciated in such a short time as 19 months for $80 million over a $400 million company value to Intralot. This process, when assessed in light of the time elapsed since instigation and comparative increase in value, is the most important and successful M&A transaction that has taken place in Turkey .

Inteltek

By the end of 2002, the Spor Toto Teskilat Mudurlugu (State Sports Betting Organization) had concluded the year with only a $12 million turnover and was looking to bring back its glory in increased revenues. A tender for a "the Establishment and Operation of a Central Betting System" was opened. During the preparation for the tender, Teknoloji Holding, previously in partnership transactions with the Çukurova Group, brought together Turkcell and the world's most rapidly growing and most successful betting company, Intralot, for a partnership. Inteltek was established with 20% shareholding of Teknoloji Holding, 25% shareholding of Intralot, headquartered in Greece, and a wholly-owned Turkcell subsidiary, Turktel's, 55% shareholding. This tender, along with the tender for the Head Agency, was won by Inteltek who got on with the operations.

IDDAA improved the quality of the secondary and tertiary leagues in Turkey as well as proving to be an insurance of ethical values for Turkish football and contributing to the establishment of new areas of work at various business fields. Newspapers such as Hürriyet, Milliyet, Sabah , Akşam, Bugün, Fanatik, Posta, Fotomaç, Günes, Radikal, Star, Şok, Takvim, Vatan, Yeni Asır and Yeni Çağ periodically issue an IDDAA booklet that provides an additional circulation of 700,000.

Spor Toto Teskilatı has a total of 4,000 agents at 81 provinces and 750 districts in Turkey , of which approximately 1,000 are "exclusive agents" which only provide the IDDAA game without selling any other merchandise or providing any other services. It can safely be stated that the network of branches and the ecosystem created serves as a means of income for approximately 60,000 people.

In 2003, the Spor Toto turnover was $17 million. In April, 2004, IDDAA stated with a goal of "$1 billion turnover in 3 years" and reached $167 million by the end of the year. By the end of 2005, it had reached $987 million, which makes it a record growth of 5,800% or 58 times of its original turnover in only 20 months. A market research conducted in 2005, revealed that brand recognition among males between the ages of 18-45 was 99%. Today, it is estimated that 5% of Turkey’s population plays IDDAA.

IDDAA's share at the betting market, has gone up from 1% in April 2004, to 36% in December 2007. Inteltek had a turnover of $1.5 billion in 2007 and has reached a combined turnover of $5.3 billiom in 4 years. $660 million was Iddaa’s operator, Inteltek’s revenue, with a 55% shareholding by Turkcell. $950 million was tax revenue. $2.4 billion was paid out to betting players. Football clubs earned $435 million, Spor Toto Teşkilatı got $61 million and Youth and Sports Administration got $78 million. Hundreds of sports facilities were built and completed with this revenue.



Bilyoner

IDDAA, which started operations in April 2004, actually gave birth to two companies: Inteltek and Bilyoner. Bilyoner, established with the same shareholding structure with Inteltek, provided access to IDDAA betting games through GSM, ITV (interactive TV through Digiturk), the internet and IVR (interactive voice response) call center. Through agreements with Turkish Jockey Club on October 13, 2005 and with National Lottery Administration on December 6, 2006, Bilyoner became the first legal all-in-one betting platform covering sports betting, horse racing and lottery both in Turkey and in the world.

I contributed to the establishment of this platform and in the preparation of legislation to prevent access to illegal betting sites established abroad. After legislation came into force, the company was established as Libero A.Ş. Initially as the project leader and after the start of operations, as Executive Board Member representing Teknoloji Holding, I participated in the management of the company until selling my shares to Teknoloji Holding in 2007.

Today, Bilyoner is the most successful internet project in Turkey, in terms of both turnover (revenue is close to reaching an annual turnover of USD 200 million) and number of users. The initial business plans prepared at the beginning assumed a 3 to 4% share in overall Iddaa turnover, even though I insisted that it would reach 10 to 15%.
 
 
 
 

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