Vestel White Goods (VWG) reported YTL 21.0m of net income for 2Q07 vs. YTL 1.3m a year ago. We were expecting YTL 10.8m.
Revenues came at YTL 335.8m (up 1.7% y/y) and was in-line with our forecast of YTL 334.6m. Gross margins were slightly better than expected at 6.2% vs. our estimate of 6.0% and were down from 25.3% last year. 1Q07 gross margins were 8.1%. OPEX consumed 4.6% of revenues vs. 4.1% last year; higher than our forecast of 3.3%. As a result, EBITDA came in at YTL 15.8m, down from YTL 78.5m last year and below our forecast of YTL 18.8m. EBITDA margins were 4.7% vs. 5.6% our estimate.