Earnings Call: H2 2020

Feb 25, 2021

Thank you for standing by, and welcome to the Frontier Digital Ventures 2020 Results Conference Call. All participants are in a listen only mode. There will be a presentation followed by a question and answer session. Followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Sean D. Gregorio, CEO and Founder. Please go ahead. Good morning, everyone. Thanks for calling in. Fair bit of news that was released to the market this morning. So consequently, we have a fair bit to get through this morning. I'll try and stay on point. And as usual, at the conclusion of my presentation, there'll be a Q and A session, which will be moderated By the call manager, I'm going to be referring to the document that is titled Acquisition and 2020 Full Year Results Presentation, which was released to the IFX this morning. I'll give you 10 page numbers just so you know what I'm looking at. But Fundamentally, it's to announce an acquisition that we've finalized overnight In Chile, of our business, YAPO, which is the leading general classifieds portal in that market. And we'll talk about acquisition shortly. And then we'll follow that with our full year results, which are guided into an operational update And then the results themselves, we have a section there which just talks to the outlook as we see it in the next little while. So referring back to that deck, I'm on Page 2. And you've seen our mission. We maintain our ambition. Our mission is to be the leading operator of the best online marketplaces in emerging markets. We've we've In emerging markets, we're very focused on that outcome, and we've worked pretty diligently over the past 12 months to really Accelerate that mission accomplishment as well, but needless to say, we still had a fair way to go. What's made a significant difference that we announced this morning was And acquisition of the upper. I'm going to go straight into Section 1 and talk to that acquisition. So I'm now looking at Page 5, which is titled I'm going to walk you through the business, 5 key points that we'll talk to this morning. We've acquired 100% of the business in Chile. It's a market that we've looked at for some time for a number of years. As you'd appreciate, we've made acquisitions in Colombia recently and have our business info cast us that is Light and Explore as well. So it's a part of the world that we like, and we have maintained the fact that we like The LatAm Markets ex Argentina and ex Brazil in Chile was really a piece of the puzzle that we've been looking at for some time, and we had an opportunity To acquire the business there, which we've done overnight. If you look into the business, I'm on Page 6, the upper is a general classifieds. It's the leader in the market. What we were attracted to in the in this business was the fact that it has really strong vertical positions. So more and more when you look at emerging markets, you've got to look at them in the context of transaction businesses or transaction based platforms. We know that The classifieds model has served consumers and sellers really well, but we also know that that model has evolved rapidly over the past couple of years And increasingly, it's focused around the ability to provide a full transaction to a buyer and a seller, and that's what all of the Companies in our portfolio are doing. We see a really critical opportunity in this business in that it's the leading general class But it also leads in the verticals. So we think that when you consider these markets as the ability to help consumers And sellers make transactions. YAPO is really well positioned. It only has one main competitor and MercadoLibre has sort of pivoted to try and be in Amazon's style business, which is Focused on new products, which really leads the general classifieds market open to YAPO. So those Our competitive dynamics, the brand strength in the market, the potential upside we see in the fact that this business leads in the verticals Maybe the very attractive acquisition opportunity for us. It's fair to say that it's probably the last of the businesses that Adeventa We're commentating in exiting and the fact that, again, it's kind of been left on the shelf a bit by Adeventra in the same way that the other acquisitions were, while Adabendro is very focused on beating down their eBay acquisition in Europe and focusing on the issues and the challenges that, that acquisition has brought them. We were opportunistic, and we were able to engage with that event again off a lot of the goodwill that was developed in the acquisitions we made last year And engineer this transaction in the early part of this year. So it really does complete a pre active period for us. In terms of the business itself, it had 26,000,000 sessions in December, and that actually makes it the most traffic site in our portfolio. The other compelling thing about this business and where we see a lot of upside is that its audience is primarily being driven organically. So that means that they're not paying for any traffic. So it really demonstrates the strength of the brand in the market, the consumer recollection of the brand and the fact that it is Being able to drive that level of traffic without having to buy it, that provides you with a really powerful platform In terms of what you can do with the business, very mobile market, as you can appreciate as most of these environments are. The business suffered from COVID a bit in 20 20, like most. But from our perspective, that presented an opportunity to do a deal, again, where we think we've done it on really good The business is profitable and growing. Heading into COVID, it's obviously suffered some headwinds. But again, we saw that more as opportunity And that's very much the view that we've taken on all of these businesses and all of the opportunities that came our way in 2020 was To get yourself into a really strong position, to have your portfolio performing well, to have a really strong balance sheet and then to be able to move quickly and opportunistically when Acquisition opportunities came up and we've been able to do this in a market that we think is going to be really valuable. If you move to Slide 7, just a little bit about the market itself. As I said, it's a market that we've liked for a long time, sort of similar to Colombia when we were looking at the LatAm opportunities. Again, we've retained that the ex Brazil, ex Argentina view of the market opportunities in South America. It's certainly one of the largest economies on the continent and on a GDP basis is actually clearly one of the 2 wealthiest as well. So Proximity for our other businesses, of course, it bolts right next door to Peru And Bolivia, as you can see on the map, and we'll get a lot of opportunities to look at scale and cost savings where we can utilize The relationships that those businesses can potentially have. So very much a market that we've been looking at for some time And really fits our footprint well and is an acquisition we're really pleased to be able to finalize overnight. If you go on to Slide 8, just gives you some a bit of a look at the business. As you can see, it was growing reasonably well into COVID. It's hit some COVID headwinds Like everything, but again, we saw that as opportunistic. We do view when we're looking at the business that there is some significant Opportunities to grow the business, like a lot of the Adeventa businesses, it hasn't had a lot of attention. It hasn't had a lot of love. And we see that as an opportunity to really develop aspects of the business that haven't been done before. This business is fundamentally a classifieds business, and it has some advertising or banisterial revenue as well. But the opportunity to start to move the business model more toward the facilitation of transactions, that's a very big mantra right across Our group, all of our companies are moving toward providing consumers and sellers with the ability to do more of the transaction. And generally, you're able to do that When you've got a really strong brand in the market and you're a really well known brand, you're a brand that's highly recognized and highly used And as a platform, and you can get all of those factors together, a very dominant brand, tons of traffic, Really strong positions in the verticals, but only having rolled out a classifieds model. It's a really powerful way to set yourself We can actually extend this product offering and start to participate more in the transactions of goods in that market, particularly in the verticals. There's clear opportunity To extend the product offering into property, the classifieds, general classifieds, they also have really strong positions in automotive And again, right across the general categories as well, but big opportunities in those 2 vertical categories when you're doing it with such a well positioned brand To really extend the business model and facilitate more of the transactions. When you look at the Pie graph there, the pie chart, you can see the revenue spread across the business. But again, we sort of see this is The beginning of an opportunity in a business that has these sort of dynamics already in it. So we're very I'm working with the team to deliver on those. If you move to the next slide, 9, you'll just see that on a pro form a basis, this will make a significant contribution To our business, along with the other acquisitions that we made through the course of 2020, which were all very sort of COVID driven, opportunistic Deals that we were able to do, what that does and YAPA will, as I said, will be a significant contribution is it really provides A pretty exciting platform in terms of our revenue profile as we head into 2021. On Slide 10, just goes to the strategic fit. And again, it's in a geography that we're very focused on. It has clear market leadership, which is really, really important. It's going to be a significant contributor To our business on a revenue basis, we know that it was profitable heading into COVID. Many businesses I've felt headwinds in COVID, but we can see a really clear path to not only revenue growth in this business by way of extending its product offering To be able to facilitate more of the transactions, but also, we see it returning to profitability As the market generally improves, so we think that it's in a really interesting and opportunistic part of its journey. The strategic rationale, again, really strong. It's right next to the businesses we already have in that market and will Allow us to have a really solid footprint in the LatAm markets as well. So it fits really nicely from our perspective. There's a quote there for me. I won't read it out, although it sounds a bit egotistical, but I'll let you dwell on that in the interest of time. So that's Page 11. As I move through the deck, I do want to get on to the operational update, which is quite important. Just looking at our business, you can see on Slide 13 now that our spread across the geographies It's now much more even than it was when we probably spoke to you at this time last year. We had a very big focus on 1 or 2 businesses. And What we've been able to do through the course of 2020 is diversify that revenue source, not only geographically, but we've diversified a couple Across a couple of the key verticals that we target as well. So these acquisitions have added much to our revenue profile. And when you look at the pro form a view, you get a bit of a sense of the significance of them and what our company is going to look like in 12 24 months from now As we see growth return in the post COVID world, but also the impact of extending the product reach or the product offering for the new acquisitions In a much more aggressive manner than perhaps has been done by their current owners at the moment. So really good spread across our 3 target areas. Now On 14, you'll see that what we've been clearly witnessed to over the past 12 months is a significant shift to digital. So we're seeing a significant increase in mobile sessions and in leads being generated and total sessions. What we have seen Just from an advertiser perspective, COVID has impacted advertisers pretty heavily. So the number of advertisers has Probably plateaued, but what we have seen is more and more consumers move to digital. And this has been something that's been spoken about, but we did want to provide Some data just to point to the fact that it's a real trend, and we see it continuing through 2021 and beyond. Consumer behavior significantly moved and we've seen that in our portfolio on 2015. Really just another way to look at The pre pandemic kind of view versus what we're seeing now with significant traffic return to the websites. This is a trend that's ongoing, And we expect it to continue. Most of that is going to mobile. But we are seeing also really interesting movement by consumers who want to do more of a transaction than they were doing before. They want to go way past just looking at ads, and that's where a lot of the value sits in these businesses. On Slide 16, one ambition we had at the beginning of the year was really to diversify our portfolio a bit. At the beginning of the year, We had a really 12 months ago, we had a really heavy emphasis on probably 1 geography and 1 or 2 businesses. And part of Our strategy this year was to spread that geographic revenue and obviously to spread it by segment a bit better as well. We'll always be biased toward the property vertical. We really like it. It's high value. We still like automotive. We do see Significant opportunities in the general classified in select markets now where they're really emerging as full transaction platforms. And if we think about these markets, and I think people have got to continue to think about these markets in this way that you're essentially now looking at Digital platform that has large consumer audiences that can provide consumers with transactions of goods and services, and in this case, Increasingly high value goods and services, which is houses and cars, and that fits really well in that general classifieds category. So We think we've done a pretty good job of spreading the risk geographically and certainly spreading it a little more balanced way with still a Fair emphasis on the property segment. Moving over the page just in terms of what we've done over the past 12 months. I looked at this list and thought, gee, we've been pretty busy. So COVID really provided companies with 1 or 2 targets that they could take. They could batten down the hatches and survive, and that can be a pretty Unpleasant experience, but a necessity for some. Other companies and our family products in that category move really quickly early in the year, Got our portfolio in order, got our balance sheet strengthened. And then we really saw it as an opportunistic period To increase shareholdings in our existing companies, which we were able to do in a number of instances, but also to look at New partnerships, which can extend the reach of some of our existing companies, the acquisitions, of course, that we've made and also some consolidations In a couple of our markets as well. So it's been a very active year for us. It's fundamentally reshaped our portfolio to put it on a really exciting and Much more opportunistic platform. And add to that, we've finished 2020 and certainly even post this transaction, We maintain a really strong balance sheet, which we think bodes well for the rest of the year. There are some slides there just around 'eighteen around Strengthening the portfolio, I won't read those because we're on a bit we're on the clock a bit. But fundamentally, We see a lot of tailings now into 2021, which is true as we look into the back half of twenty twenty one with vaccine rollouts, optimism returning, Normal workplace behavior returning and of course this flows through to consumer behavior and the capacity to want to look at houses and cars and other goods on the Internet. So We think we've set ourselves out of a really interesting 2020, got our portfolio in really good shape, made some acquisitions that are going to be material contributors. They fit all of the strategic criteria that we lay out for those sorts of deals. And add to that, we see tailwinds now As COVID starts to be better managed in a lot of our markets. Just moving on to the 2020 results. So I'm on Page 20 now. We signaled most of these in our quarterly, so there won't be A ton of new information at a headline level per se. But just to look at the bar chart, you can see that we had a Tiptoe, growth happening in 2020, albeit marginal, we're very pleased with that. If you look at The sort of 100 percent view, which is probably the most complete wider view of the portfolio, You see there the bar charts on the left. The most valuable way to look at what we do is then to take the economic share of the portfolio and that's represented on the right. You can see the $23,700,000 in revenues For 2020, on a pro form a basis, it would have been significantly higher. But again, I think that's more about building a platform for 2021 In Beyond, I would remind people, of course, that our statutory results, which are obviously very important, are probably the least instructive when it comes to understanding the progress of our business. We don't consolidate all of our portfolio, so that statutory view actually excludes businesses like Zameen, which is a significant revenue contributor and a significant Our EBITDA contributor as well. So we do point people back to that 100% view, number 1, and then to look through that 100% view Look at the economic share view, which picks up, so I mean, 30% stake in that business. Over the page, if you look at EBITDA performance, and again, this is on a portfolio basis, We managed to achieve a profitable period in 2020, and that's both on An economic share basis, whichever way you look at it, our ambition was to have those bar charts land right about where they are By 2020, and we said that back in late 2016 into 2017 that we had an ambition for our portfolio and some of the parts To be profitable in 2020. So we managed to achieve that goal and we're pretty proud of that. In terms of the underlying businesses on Page 22, as you can see, through COVID, We improved the trading performance of all but one of those businesses, and that was a marginal Deterioration material, but if you look at that data, you can see that while we continue to probably be focused on revenue growth, The opportunity to reduce costs through COVID and improve our EBITDA position was one that we took, and you can see the businesses right across I've only improved their EBITDA performance through the period. This just sets you on a really good platform for 2021 and beyond. So what it says is everyone knows that 2020 is pretty tough to grow revenue, but what you could do was really recalibrate your cost base, improve your EBITDA performance. So when you head into 2021 and you get tailings out of COVID and the economic conditions improve more generally, you've got a really good platform to grow the business. And Our focus over the next 24 months, of course, with these new acquisitions is rapid revenue growth. We're really about Growing the top line of the businesses, but doing it at a sustainable rate. And that's one mantra that we've always maintained that We want to grow our top line with our clear priority, but we want to do it in a sustainable and responsible manner. We don't necessarily subscribe to the idea that you need to spend A dollar on marketing to get a dollar on revenue and a lot of our businesses in our portfolio we've been able to invest in to acquire. And You know, they've generally been loss making. And over a period of time, we're able to grow those businesses and turn them profitable. And that really is our MO. That's really our value add in terms of how we view this portfolio of companies. We look at opportunity. We see good market The positions with Seadrill Brands were able to work with the management teams at growing them more rapidly than they would have grown before we had acquired them And doing it on a much more sustainable basis than they've been able to in the past. And that's what we really see as our competitive advantage. When we can look at a business like Yappo, for example, we can see that in 2019, it was marginally profitable. It slipped back In 2020, we see that as a perfect opportunity to pounce to buy the business, knowing that we can probably grow faster than The previous items are none. We can do it on a more sustainable basis, and that evidence is writ large right for our portfolio. So if you look on Slide 23, Going over the page, just gives you a full breakdown on some of the numbers. Again, 2020 was pretty tough, But we do really feel like we've positioned ourselves really well for 2021 and beyond. And you see that when you look at the pro form a view of 2020. I've moved on to the outlook section. So this is Slide 25. Again, I'm not going to stop and read on these, but we have our clear mission is to becoming the leading operator Are the best online marketplaces in emerging markets? There's many factors that play into that ambition. You can probably Note by the fact we've been around a little while now, and you can see the sort of work we're able to do when we do acquire these companies. And of course, we do see a genuine opportunity to continue to build our business. We know that the smart money for us We've to acquire more of the companies that we're very familiar with, the ones in our portfolio, the ones that we like and the ones that perform well. When we look at growth, We look at growing our existing portfolio revenues and doing it on a sustainable basis. We then look at M and A opportunities. They're always going to be Consolidations, which are the easiest, but certainly adjacent geographies like we've done in Chile and more recently in Colombia and Rocco and Tunisia and the market position of those businesses. So we're very clear minded about our strategy. We're really excited About the next 24 months, we had a view last year that what we did over the 12 months from last year into this year was going to have a very significant Impact on what our business is going to look like in 3 to 5 years from now. So we really look pretty optimistically the next 24 months. A lot of opportunity in our portfolio to grow with tailwinds coming out of COVID, and we'll continue to be focused on those goals. When you look at 26, To give you a sense of how we kind of view the businesses, sort of life cycle the businesses, and you can see how we sort of plot them. So means obviously Significant business in size, revenue and contribution for us, but we do now have a group of 6 to 7 businesses That are now where Zalyn was probably not that long ago. We're really focused on building the value in those businesses and pushing them through this model, This classifies 1.0 into a 2.0 world. And of course, if you look on Slide 27, we of course recognize that Our responsibility is to deliver value for our shareholders. We think in terms of the phases that we're in, we're right in the business build mode. We're building our portfolio, and we're really excited about that. We do also it's fairly obvious to us that down the track, there will be monetization opportunities, but we are 100% focused on building value in the portfolio that we've built over the last 5 years, and we'll continue to be focused on that. And The funny thing about these businesses is that if you run them really well, the monetization opportunities that you can see on the right side of Slide 27 tend to look after themselves, and we don't sit around worrying about those things. We focus all of our attention on building really good Okay, great. Classified businesses in emerging markets that are increasingly now becoming full transaction services for the consumers. 28, If all of what I've said over the last half an hour comes together, we should see The graph to the right there, the SEV 1, mimic something like the previous two businesses that I've run. So We're very focused on achieving shareholder value. And I know investors can remark that as a founder, I'm still significantly invested in this business. So Very aligned on that front, and we certainly see ourselves much closer to the beginning of our journey than the end. We really do genuinely aspire To be the leading operator of these marketplaces in emerging markets, we think there's a distinct gap in the market. When you look at the very big players that are out there Like Naspers, OLX and Adeventa and Axospring in Europe, we do really feel that we are Leading the way in terms of our focus on emerging markets and getting market leaders in our portfolios as we really start to pronounce ourselves on the global stage vis a vis those larger The corporate activity on 29, I'm going to breeze past because it's you can read that later. And then of course, If you go to 30, we were added to the technology index recently. It was a milestone that we were very focused on, and that's been done. We would hope that On the rebalancing of the ASX 300 in the not too distant future, but that would aspirationally also be something that we could be added to. But we'll just run the business And that review of the ASX 300 will take care of itself. Further in the deck, there is an appendix that just talks to the fact that we don't consolidate all of these entities. So So when you look at our statutory accounts, they don't really give you a full view, and we keep reminding people of that and hence why we talk to The economic share that we really focus on is being the best indicator of the value that's inside our portfolio. So at that point, that's been on half an hour. I might hand back to the moderator, who I understand will now Your first question comes from Anthony Porto from Morgan Financial. Please go ahead. Hey, Sean. Congratulations on the new acquisition. I guess, if you look at the multiple, less than 3 times revenue, it's even lower than what you've bought The other assets from Adevinta from recently, and it's well below your own trading multiple. So I guess in the context of that, can you just Explain the multiple you paid, and you did that a little bit, but just explain, go through that. Second question, I guess, is the competition for Yapro in the real estate and all their verticals. I mean, you mentioned The one large classifieds competition, but just how you see the competition in the actual verticals for that business? And then The third question would be, you put the traffic's path in there till December. I mean, from what I'm seeing on SimilarWeb, there's been a material acceleration in traffic in January for the majority of your sites. I guess maybe just comment on that. And are you having starting to have discussions with advertisers or And clients about spending more on the site and why they should be spending a lot more on the site. And then I guess does that dovetail into potential Pricing increases that you can put through some of these businesses. That's probably it for now, thanks Sean. Yes. So I can't remember the first question. You might have to remind me on the second one. The first question was just the mechanics of the deal. So I don't know if you've been following, but the sell up at Aventura has got themselves into a bit of a tickle with the competition regulator in the UK That is sort of analyzing the deal to acquire eBay. Now that doesn't relate directly to Chile, of course. But what it does is Put out of entering a position where they were increasingly trying to rationalize their portfolio and not that this acquisition has any impact on the Competition issue in the U. K, but they did have an ambition to rationalize their portfolio so they could concentrate on eBay. We had Conemplated in a very vague manner of this acquisition last year and for a whole range of reasons, it wasn't included in that and it was never More than a vague discussion, so there's nothing of any materiality that was discussed regarding this business last year. But We got into the earlier part of this year, and we kind of caught our breath and went back and looked at the business. And it's probably one that, All things being equal, we could have done last year and for various reasons it didn't happen. So it really was a business that when we approached the idea of We've established the multiples that we were prepared to pay, and they were established through the deal that we did last year. And you know that deal we think was done under conditions that really suited us. So we were able to go to the seller and say, We've set the mark here. This is what we will this is what we're willing to transact at. And From their side, again, it was an appealing pitch because we could offer deal certainty and we could offer the ability to complete. Adam and Drew also knew that we had cash on the balance sheet to do it. So from their perspective, it was a no risk Deals as far as completion is concerned, it's fair to say when we did the deal last year that there was a large capital raise that was required to go with it. Now we were fortunate to have that money on the balance sheet, and we were able to approach this opportunity and say, well, We can absolutely pay for this. That's evident. You know that. The benchmark is the deals that we've done. We can provide you certainty. We know that you've got other areas to focus on. So in that sense, Anthony, sort of all roads led to Rome and we were able to negotiate the terms The deal was done on. What was the second question, sorry? The second question was just competition within the verticals. I mean, you mentioned MercadoLibre The other tunnel lines classifieds player, but just what you see in the verticals in the real estate and auto there? Yes. So the in the horizontal, it's MercadoLibre, but they are Amazon they are Amazon light now. They've changed that business significantly, which has really left open the competitive landscape and the general class of products for Yapura. It was more competitive Some time back, but it's actually opened up a bit. When you look into cars and houses, there's really one main operator in cars, and that's Chile Autos. And after that, there's OrthoCosmos, but again, it's significantly smaller. In the Property segment, there's probably 2 or 3 probably 2 actual lease sites that are significant, And we're well aware of them. But fortunately, the brand that Yapo has and when you look into the traffic stats, we're actually leading both key verticals. So We see opportunity there. Chile is a valuable market, and it's Got some established players there in the verticals, but this business, Yapa, really comes at it having not really focused much on those verticals, but that has clear leadership when it comes to The traffic to those verticals, so we see that as a pretty good launching pad where you can make a bit more ground into that vertical space. And the 3rd question, Anthony, was? Just on traffic in January, I mean, look, grain of salt, I'm looking at similar levels, Yes. Generally always generally a good traffic a month. It's always bouncing out of the Christmas New Year break. And it's also 31 days, which has Gives you a little bit of a longer month compared to some. So you always do get a natural bump in January. And again, of course, we welcome that. To the extent that generating a loan gives you pricing power, it obviously doesn't. But the long term trend, which you saw in the deck there, We are seeing more consumers generate more leads and make more inquiries of the same number of advertisers than we were pre COVID. So the number of advertisers hasn't changed a lot in the market, but you are seeing more people generate more leads to the same number of advertisers. So naturally, That gives you scope for pricing. Where we think it gives you greater scope is to say, up until now, Mr. Consumer and Mrs. Consumer, you've come here and clicked on an ad and made an inquiry. Rather than us charging more for that, why don't we take you further down the transaction path? Your dependency on these brands and these platforms is increasing. Your use of these brands and platforms is increasing. Your willingness to do more is increasing. So we see that as a really opportunistic way to say, hey, let's take the consumer further down the transaction path. There is a limit to which these businesses over time can simply put up price for ads. You can do that and great businesses like REA have been doing that forever. However, we do think that the significant value when you look at what's in these markets is getting them closer to the transaction. And the businesses that have done that Doesn't mean Infrocastus is the auto dealers of the world. That is where the real growth is likely to come from. So yes, we, of course, welcome the traffic. What we look at more though is their behavior and their dependency and your ability to say, hey, how can we make more of that dependency than we have in the past? Great. Thanks, Sean, and congratulations, Ian. Thanks, Your next question comes from James Filius from Bell Potter. Please go ahead. Hi, Sean. Great results today. I just wanted to sort of obviously, the way the positioning The portfolio for the year ahead is focused towards LatAm. But given sort of the things going on in Myanmar, can you sort of give some comments around What you see happening in that market and what that sort of bonus for the year ahead? Yes. I mean, just on the LatAm focus, whilst there will be a significant focus from us on that area, we feel like we're balanced now. We feel that we're way better balanced. So we'll certainly be focusing on Asia. That's for sure. We see Asia is a dynamic market where there's more opportunity. With regard to Myanmar, yes, we're in a bit of a wait and see. So if you follow the news like everyone else has, you'll know that there is some They're in the coupe by the military. I mean, just the back story in the United. The military are very we're very present anyway. They control a lot of The economy and that's stepped into political control, which is not unprecedented. What it has meant is that you've got Fair amount of civil strikes and process and disruption, which makes the business of selling houses and cars a bit So we've seen a distinct slowdown in commercial activity in the EMEA over the past few weeks. I think we'll know more kind of over the next couple of weeks. I think it will go 1 of 2 ways, which is it will settle down and they'll be accepting of the regime It won't settle down and it will get worse. Either way, we expect it to be much clearer by the middle of March Over the next couple of weeks, and then I think we'll be able to guide the market of 20 material changes in those two businesses. But yes, we're wait and see pattern at the moment. I guess the way we do Bjork Jones is we had a order with a crew In Thailand a couple of years ago, we were in a very passive period. The economy returned to full activity pretty quickly thereafter. That's the only guide that we have here. Now to the extent that that will occur in Myanmar, we don't know. But we'll certainly have a better sense of it by the middle of March Okay, great. Thanks for that, Your next question comes from Kevin Bottoli from PMC. Please go ahead. Hi, Sean. Just a couple of questions from me. Firstly, on Zamein, when you look forward, What are your thoughts around growth rates for that business and how they might compare to that kind of pre COVID environment? And then secondly, Vito and Moshe, the opportunity is there now that you're at 100% of both businesses. Yes. Look, the name finished the year really well. They the Q2 was very tough in Pakistan, But they reemerged out of COVID in probably sort of July, August and finished the year really well. And the conversations with the management team, if I spoke to the middle of last year, like a lot of people, pretty grim or Pretty pessimistic. By the end of the year, they were very optimistic about 2021. So a lot changed through Sort of September, October, and we saw commercial activity return. I think that was underpinned a lot by The government support of the property market and various initiatives that we're undertaking in Pakistan by way of reducing transaction costs and frictions, Taxes, reducing stamp duties, reducing borrowing hurdles that you have to get over for mortgages, reducing the cost of money, they reduce interest rates. So that certainly Spurred the property market along. So the Fitbit of Momentum's return to that business will probably probably end of Q1, we'll have a better sense of That momentum, how sustained it is and at what levels it's at. But we expect that business to grow pretty well this year, And we expect it to grow profitably as well. So it's been a really interesting 12 months. If you had to stop the clock now, look back 12 months, yes, it was a really interesting period for me. Probably we're amongst the most Tandemistic in our portfolio when we spoke to them in sort of April, May, intervened the most optimistic when we spoke to them in sort of Now 6 months later, as time had passed. So we remain pretty bullish about Janine. With regards to Morocco, we started that process. So You better down the deal. There's a little bit of get to know you between Avedo and Mateo. They're obviously known to each other. But now there's the actual the physical meetings and the like taking place. And we'll start to look at the ways in which they can grow the market Yes. They were competing pretty fiercely before we acquired Avito. Avito is very strong in the used car market. Matera is very strong in the new car market. Neither business had made a hell of a lot of ground into the others' market. So it's a really complementary fit. And As we get into Q2, we'll probably see some benefits start to emerge from that deal. Your next question comes from Christopher Bainbridge from Pifunds Management. Please go ahead. Hi, Sean. Fantastic acquisition and great result. Just one sort of question from me. So, Yapho, I guess, you provided the results there, specifically FY 'twenty. Are you able to sort of give us any color as to kind of how that sort of worked throughout the year and potentially sort of how they were performing sort of in that final December quarter? Yes. I mean, everyone came home really strong. Maybe Getting Finca is when we did, I think, was good timing as well. They probably finished the year really strong, as did Yapa. I just don't have the monthly P and L in I'm happy to revert that to you on that just to give you a more accurate response. But all of those businesses finished The year Q4 really strongly. What's happening in LatAm now? And remember that LatAm was In terms of at one point there of the 15 countries who are most impacted by COVID, 6 of those countries were in LatAm. So they had a pretty bad through last year. It just happened to be opportunistically when we were able to buy Finca when it was probably At its toughest and certainly Chile was no exception. So we're now seeing some optimism return. You're seeing some normality return. You're starting to see a glimpse of the post COVID world. So That seems to be really well. I can't give you numbers. I just don't have any timing to that level. But again, We're cautiously optimistic in this first half for those businesses. They're certainly trading better than they were. That's for sure. But then again, most And we're sort of cautiously optimistic as they progress through Q1. And I think by the middle of the year when you see a demonstrated well rounded vaccine, when you see That often is in return in a really significant way. We expect a greater pickup clearly into the back half of the year. So Look, so far so good with these guys in 2021, but we remain cautiously optimistic, I guess, as we hit Into the middle of the year, and we start to see some of those clear signals of kind of post COVID recovery, and that's going to be spurred By vaccines, that much we know. So yes, it traded pretty well into the end of last year. Yes. It sounds like you've Capitalized perfectly on the crisis. Final question from me, just on YAPO, I guess. You have replied any color around sort of the management team there. Has there been a sort of management team in place for a while? Or kind of is there sort of any foundry left involved? Apologies for the ignorance, but any color would be great. No. It's a business that has a really strong core management team that have all been there for some time. So It's an appeal for us. So when we look at these businesses, clearly, one of the key drivers, If you accept that you're a market leader, you've got a good brand, you've got lots of advertisers and lots of leads and you're doing well on revenue, Those things are all very definable and very obvious to even a casual observer. What Makes a big difference is just the quality of that management team, combined with a clear strategy and ability to execute. So the team there, The quarter is really solid, been there for some time. And they've also suffered as have as did Fincarez, as did Aveda and to an extent Tiara on betting just not that important. This is not an important business if you're If you're an inventor, you just don't matter enough. So these businesses, they've been run day to day, month to month. They've got passionate management teams that have probably grown frustrated over an extended period now. And they see the opportunity with FTV as long as a reawakening, as long as like an ability to refresh and go again. And The great thing about this acquisition is that they were very, very familiar with FTD already because we'd acquired Finca, who are their neighbors. So it was a very easy familiarity to form with the management team, and we'll go deeper into the business tonight actually with the town hall. There was a real sense of familiarity when we spoke to them. And they were really intrigued and excited about, I guess, jumping the fence From that event and being part of FDB, so it's a good team. All right. Thanks for that. Congratulations again. Thanks Mark. There are no further questions at this time. I'll now hand back Once again, thanks, everyone, for your time this morning. I hope to be able to get on a plane soon and come and see some of you face to face, but we don't know when that will be. Just to, I guess, press on some highlights. We think that the acquisition, again, has fit the kind of criteria that we established when we bought the businesses In November of last year, we were able to execute this transaction through that time range of an established Valuation metrics and our ability to complete the deal and be well funded from the seller's perspective is really attractive. We do see Some significant value upside given many of the same traits that this business has as the ones we acquired last year, and it will make a significant difference to our portfolio. Again, it goes to diversifying our revenue mix by geographically and by segment and gives us another key market As far as our results are concerned, as I said, I think they were flagged when we released our quarter in January. We think we've just built a really solid And platform for 2021 and beyond, and that's taken a lot of work through 2020. Businesses had 1 or 2 parts that could take Survival or use the period to try and grow and thrive, and we've certainly changed the ladder. We think we've Calibrated our portfolio to be strongly on the table being, and we'll continue to focus on revenue growth and how to do that on a sustainable basis. And we're really bullish about the next sort of 24 months. And we look at the next beyond the 24 months in that 3 to 5 year view, and our aspiration Clearly, it's become the leading operator of the best online marketplaces in emerging markets. I'd like to thank everyone for attending today, and we'll speak to you soon. That does conclude the conference for today. Thank you for participating. You may now disconnect.