Earnings Call: Q2 2021

Sep 15, 2021

Good day, and welcome to the MediaTek 2021 First Health Results Web Phone Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Sara Verstane. Please go ahead, madam. Good morning, ladies and gentlemen, and welcome to the first half twenty twenty one results of Mediaset. Today, the speakers are Marco Giordani, CFO of the company and Matteo Cardani, Managing Director of Multaglia. Given the restriction of time, I will hand over immediately to the speakers. Matteo, please go ahead. Thank you, Sarah. Good morning, everybody. So today, we comment H1 results with a short outlook on current trading. Starting from the economic scenario, I'm commenting chart number 3. With regard to confidence index indicators, the monthly evolution shows a continuous gradual improvement of the economic scenario. And it is what underline that since April, we are definitely in the positive field both for consumers and business. This important soft indicator is, of course, strictly confirmed by hard indicators. As you can see in the following chart, number 4, you can see that consumption and investments, consumption in services and goods are growing faster, and they are recovering the level of 2019. And if we move to gross domestic product dynamics, the conjunctural and trend variation of GDP in Q2 are both positive. And moreover, the 2021 forecast is in a positive range. There are different forecasts ranging between 4.5%, 5.0% growth year on year. And a similar growth rate expectation is also gaining consensus for 2022 due also to the recovery plan. So these are just that we have a short look on macroeconomic indicators. And if we move to the advertising market in chart number 5, you can see that H121 indicator are all positive. In particular, for our addressable market segments, the recovery is really solid and robust. TiVo and digital are respectively in line and above 2019 levels, while radio is still below but fastly recovering and catching up. I'm talking about the market. And if I move from the market to our performance, so I'm commenting chart number 6. In this positive recovery scenario, Mediaset is outperforming the market by 5 points in growth trend. Our growth is 31.7% versus 26.7%. And this positive spread delivers a third increase in market share, reaching the highest level of H1 market share. We are 42.1%, and we are growing by 1.5 points versus a year ago. The interesting thing is that the overall result has been achieved with a double digit positive contribution, although 3 media: TV, radio and digital are all growing at double digit rate. So the important thing, commenting this chart, as you can see also from the absolute number, you see that the total advertising collection in H1 'twenty one recover the baseline level of H1 'nineteen. So this is definitely a big achievement. And the interesting point is that the Q3 performance is expected to be positive. And I'm commenting this with a look at the chart at number 7, where you can see that we have 4 quarters in a row, 4 positive quarters in a row. Of course, the Q2 performance is, to some extent, totally outstanding, fully recovering the downside in Q2 'twenty. The interesting thing is that we are still progressing over the Q3. And September is the most important month in the quarter. We are mid September. But I anticipate that Q3 will be the 5th positive quarter in a row. And it's important to underline the fact that we are achieving this result despite some discontinuities and the market competition related to football that affected the quarter in 2021. In fact, in Q3 2021, we didn't have, of course, the Euro championship and the Olympics. But last year, we had the final matches of Champions League that were postponed to August, while this year, we have these counter digit. So notwithstanding these 3, let's say, negative factors or negative drivers, we can confirm that in 9 months, we will be slightly above the 2019 level. So the performance will be around 1% year on year growth in 9 months, 'twenty one versus 9 months 'nineteen, so the baseline we are considering. I go to the last part of my presentation with a quick reminder about the main drivers of our performance. So total audience and total video growth and the dynamics of the economic sectors. Uncommenting chart number 8. As you can see, total audience and total video are strongly growing for the 2nd year in a row with remarkable results versus 2019. So we are in the lucky position where we are combining the strength of linear TV that is above the baseline level in 2019 with a growth rate of the nonlinear assets, so connected television, mobile, desktop. And this creates a strategic advantage that protects the business, increasing the revenue diversification towards a solid digital mix. Commenting the following chart, number 9, media and linear TV audience share is 34.5%, aligned to the same level of 2019, while the digital nonlinear audience share performance certified by Auditell is even higher. We are almost 40%. So we have a solid leadership both in linear and in digital screen in the broadcaster arena. Last but not the least, the sector dynamics, commenting chart number 10 and the following. 1, with regard to sector dynamics, we have been using these 3R scheme, the receiving of the starting risk and administrative sectors. We adopted this scheme since the very beginning of the pandemic, and it proved to be an effective device to understand the dynamics of the crisis quarter by quarter. As you can appreciate, in Q2 and therefore H1, as you can see in chart number 11, Finally, the so called restricted sectors definitely reached resilience in the restarting sectors in the positive green area. After the easing of major restriction at the beginning of May, thanks to the evolution of the vaccination campaign, those sectors have traveled to food chain leisure time services, turned the advertising key on and started to invest at a high double digit rate to recover as much as possible their baseline sales. The last chart, the chart number 12, highlights the fact that on top of this congenital situation, our structure of solidity is also due to the fact that we have a market share above our market average in all key sectors that represents the backbone of our advertising market. So this is my presentation regarding the advertising part of our conference role, and I hand over to Marco for the financial part. Thank you. Thank you, Massimo. Thank you, Matteo. Good morning also from my side. To all, clearly, I'll take you through the first half consolidated results first. If you click to Page 14, you will see the highlights at group level and you can see easily that the group EBIT has been close to €200,000,000 in the first half twenty twenty one, more than 6 times higher than last year. That's clearly understandable looking at last year, let's say, first half bad situation. But I would like also to underline the fact that group EBIT is even higher than 2019 1 by almost 4%. So that's really remarkable. Moving down to the net profit. We closed the first half with EUR 220 6,700,000 profit, more than double compared to 2019. Again, I don't think it's important to underline the differences with 2020. You know that in the first half, we accounted an extraordinary contribution of €86,700,000 deriving from the sale of Towercell by 8 Towers. That's something that has been already disclosed to the market in May. But in any case, also excluding these extraordinary items, the group net profit would have been 36% higher than 2019's level. That's clearly the best, I believe, effect of the good management of revenue and cost at the group level. Moving down to group financial position. The debt at the end of June was €732,000,000 debt with a very remarkable cash generation during the 6 months. And actually, we moved down from a debt of €1,064,000,000 to, as we said, €730,000,000 debt with a cash generation that has been really remarkable as well. As you can see from the chart, the group net financial position for covenant purposes, it's EUR 222,000,000 debt, and that's clearly, again, the proof of a solid balance sheet with an improvement of €350,000,000 in respect to the end of 2020. Moving to Page 15. Clearly, Matteo has already explained the advertising performance in Italy and looking at the Italian P and L and starting to comment the other revenue line. We registered 123 €1,000,000 other revenue. As you know, 2021 for this line will be affected by phasing, as you know. But these phasing are more related on one side from for the theatrical revenue that are clearly missing in the first half of twenty twenty one, whilst last year was present at least for the 1st 2 months. And secondly, because as you remember, in November last year, we sold our own shopping business and that's clearly and let's say, revenue that are no more present in 2021 numbers. On the other side, you noted in the second half of twenty twenty one, there will be the Champions League stream by Infinity. There will be contribution from its commission fee and other revenue coming from content sales, so that we can confirm the guidance for the other revenue line for full year 2021 in line with 20 2011. Moving down in the cost part, you can appreciate the total cost in the first half twenty twenty one was €869,000,000 with a pretty important reduction of more than 10% compared to 2019. Clearly, again, I'm not comparing 2021 with 2020 for clear reason, but it's important for us to keep this efficiency pace. We are proved to execute in the first half. And as far as the guidance, we are confirming the guidance on total cost to a level of EUR 1,780,000,000 This guidance, it's including also the cost for Coppitalia rights and Italian cap that clearly has been bought in July and was not present at budget level. But again, we will be able to maintain our total cost for the full year within the guidance we gave last time we met. These numbers, so this total cost of 1,780,000,000 will represent 6% less than the 2019 number. And that's again a real proof of the financial discipline. Lastly, on Page 15, I would like to comment the EBIT margin. That is a level that the company has not reached since 2011. So it's almost the same year that we are not reaching this level of profitability at EBIT level. Moving down below EBIT in Slide 16. I mean, no big surprise. Everything is going on as foreseen. As far as financial income, we can confirm the guidance we gave in line broadly with 2019. And on associate, we confirm the guidance of 110. I'm not commenting the first half result because more or less are similar to the last year 1 and the extraordinary element in these two lines has already been disclosed in previous communication. Moving to Page 17 on the CapEx. Again, cash discipline has been confirmed. The numbers of the first half is pretty low. It's lower than 20 20 by almost €100,000,000 Again, we are facing some phasing, let's say, effect from first half and second half so that we can confirm our guidance for CapEx for the full year declining by 15%, 20% versus 2019 to a level around €350,000,000 in total. Let's say, performance of revenue, cost control and cash discipline take us to the cash flow statement on Page 18 on Slide 18, where you can appreciate that the result has been really impressive. In the first half, we generated more than €300,000,000 of cash flow from operation, a level that is more than double than last year and better by 30% roughly than 2019. Lastly, I would like to comment the target on net financial position. You know that after closing the first half, we have distributed €342,000,000 of dividends. So clearly, the net financial position in the 9 months, let's say, accounts will then report also this cash outflow. But we can confirm that by the year end, the ratio between net debt and EBITDA will stay below one times as previously guide. I have completed my part and so now I believe that we can leave you the room for the Q and A session. Thank you. Thank We are taking our first question from Julian Rock from Barclays. Please go ahead. Your line is open. Yes. Good morning, everybody. Two questions for Matteo, one for Marco. Matteo, can we get July August advertising trends because you already have the numbers? And when you say that the 9 months would be slightly above 2019, do you mean 1% above, 2% above, 3% above? So some color on Q3. Then coming back on Page 9, what is the 39.9% number? Is it your audience of Linea, which would be above the audience of Linea at 34.5% or is 39.9% your combined audience of linear and nonlinear? And if linear is 34.5%, your nonlinear audience is 5.4%. Percent. So that's two questions for Matteo. And then for Marco, I assume you're still very bullish or you still very much want to do consolidation. But if I look at the list of people that you can talk to, I actually don't see anybody in Europe because TF1 and M6 are busy merging and they're not going to know whether they can merge until June next year. So they won't speak to you until then. ITV, well, there's Brexit, but also the government really seems keen on COVID using Channel 4 and ITV has a good chance of having that. So they I don't think they're speaking to you either. Art here that said, we don't believe in Pan European consolidation, only in market consolidations. They're not really speaking to you either. So among linear player in Europe, we're kind of left with pros even. And then if we look at U. S. Players, I think they're all concentrating on launching their SVOD offer, not going into linear in Europe. So I'd like to know whether you think I'm right and somebody speaks to you in terms of consolidation or what are what could happen over the next 6 months? Thank you. Sorry, I was on mute. A typical COVID side effect, you are always in mute during conference. Sorry. I'm answering the 2 questions raised by Jean Marc. I start from the easiest one. So the clarification about the chart number 9 regarding our audience performance. The two numbers are not you cannot cumulate the two numbers because the 34.5% is the linear TV share measured by audited. And the 39.9% is our digital nonlinear share, always measured by audited. But for the time being, they are 2 separate currencies, and we are looking forward to the total audience measurement next year. So the hope is next year to have the possibility to accumulate the total audience results. Anyway, we are leading both separate arena. With regard to Q3, you asked to add more, let's say, more color on Q3 performance. As you know, we don't comment on each single month. What I can share with you is that notwithstanding the fact that the very important sports event, so the Euro Football Championships and the Olympics were the sports rights were in the hands of our competitor and that we didn't have the positive contribution of Champions League in August. The performance of the summer months, June, July August was always positive. So we start the last month of Q3 on this solid base. And as anticipated, Q3 is expected to be positive, so implying a 1 percent year on year growth in 9 months 2021 versus 9 months 2019. So this is our expectation. We are mid September, and it should be considered a solid expectation. And then if you want to expand, let's say, this perspective to the fiscal year, of course, the performance will depend on Q4. However, at this stage, we don't have clear visibility on Q4. It is worth remarking the fact that the quarter, both as you can see in chart number 7, both Q3 and Q4 in year 2020 were definitely positive quarter. So 4.6% Q3 and 3.5% Q4. So we are, let's say, benchmarking ourselves with a positive semester last year. And so Q4, for sure, will be tougher from 12 to 9 months because Q4 is an important quarter, the most important in the year. In 2020, it was already plus 3.5% above Q4 'nineteen. But we are, let's say, confident because we have also and this is a positive difference, a strong football offer in our advertising portfolio, greatly appreciated by our advertiser. And you know, football is a typical forward buying, forward selling factor, and it helps us to address the precious targets. So let me say that in the current context, our base scenario is to achieve the 1% year on year growth in fiscal year 'twenty one versus fiscal year 'nineteen, consistently with the expected 9 month 'twenty one performance. So hope to have fully addressed both questions. And in case, I hand over to Marco. Julian, I mean, 1st of all, maybe it's important to repeat, let's say, where we stand. It's already a couple of years in which we said loudly, I would say, that consolidation in traditional media will happen in Europe. I think that the last 2 years has just confirmed it. We never said that our project would be the one that will succeed, but that's clearly we will see, we'll tell our best, but I mean clearly we cannot pretend to be sure and sense about that. But I mean we are pretty sure that consolidation will happen. And clearly, immediacy starts from a very good point in any case. So being active or passive in this process, being the controlling shareholder in Spain, mathematical controlling shareholder, and we are the largest shareholder in ProSieben. So we believe that, that's it's already good news for our shareholders because the company is well placed to play a role in this consolidation. Then moving to, let's say, your comment on the others operator, let's say, with which probably you have contact, I can tell you that it is clear that all the traditional media managers are reluctant to participate to the consolidation process. Why? Because clearly, seats will be less than it is today. So whatever manager you can talk to, they are structurally and naturally against consolidation. Different perception you get if you talk to shareholders. And I would be very surprised that shareholders will tell, let's say, to anybody what's their, let's say, intention before, let's say, really striking deals. Or I would be very surprised to see a comment confirming talks to us or to others. So the only thing that I can say is that we are receiving everyday interest from financial and industrial, let's say, investor in traditional media, trying to assess where we are, what's the reason behind our, let's say, strategy and our ideas. And I can confirm that the interest is growing, it's not declining. And frankly, we don't see anybody from the ones that are investing in media that are thinking that staying local and small will be more fruitful than trying to be larger and European. So that's the only comment that I can make. We will see. We will certainly announce things only when they will be done, not before. But I can confirm that our position is the same. Consolidation in media, in traditional media in Europe will happen. Okay. Thank you. Our next question comes from Fabio Pavan from Mediobanca. Please go ahead. Your line is open. Yes, good morning. Congratulations for the results. I have a couple of questions for Matteo. When looking at Q4, do you think that normalization in the audience with overall number of viewers lower than last year given the reopenings may represent a risk? Or do you believe that consumption trend, which remains strong, will support the positive trend? For Marco, follow-up on the European project, for European project. Today, local press was mentioning potential interest for MiSerta in France and Greek assets. Can you provide a comment on that? And also, we know that starting from next Saturday, the legal debt quarter will be we move to the Netherlands. So we could expect we may expect something concrete on Pan European consolidation to happen before Iran. Thank you very much. Okay. Thank you for your questions. It's absolutely interesting and give me opportunity to give more, let's say, understanding about the market we are facing. You're right, the normalization of audience in Q4 is a key point because last year, due to COVID restrictions, we benefited, let's say, from a sort of captive audience, and this definitely drove the Q4 results. But I say that there are 3 positive factors that should be considered in this perspective. The first thing is that we are dealing and managing the counter digit in audiences since the, let's say, the very beginning of this year. So mainly Q2 and Q3 with the reduction social restrictions. We are managing with the market year on year comparisons of audience total audience results. The good thing to know is that we successfully managed to recover the deflation prices that all the TV players suffer from last year. But this was a circle, let me say, of a gentleman agreement among the market players, so clients, agencies and media owners not to speculate on the last year discontinuities and to move towards normalization of the markets in terms of media inflation. So this is the first point. The second point, as we mentioned, for sure, the consumption trend and the fundamentals trend are stronger than any, let's say, counter digit in audiences. So businesses, companies are looking for the consumers. And so we are going to expect this upward trend in the macroeconomic variables to sustain the advertising demand. And then the last but not the least, you're looking for eyeballs, but eyeballs are not all made equal. I mean, there's a precious target audience that is the so called light TV viewers, mainly men, 15 to 60 years old, medium upper class. And this is the precious target segment for many sectors like automotive, financial, telcos and so on. And we are in a stronger position compared to last year because we have strengthened and reached our advertising offer related to football. We are in a very strong position with the 3 most important football competition, the Champions League, we already had this the past year. We also portrayed the spot rights for the Coppitalia team club. And last but not the least, Serbia. So thanks to the sales agent mandate from the zone to our sales house, Digitalia. We have, let's say, the best in class portfolio of football club football for club in our markets. And we do think that it will be a key driver for our revenue collection because it offer address to all those economic sectors targeting these precious clusters. And this segment is absolutely complementary to the target segment we already have really reached through our MilliCell production. So the three factors combined, so inflation trend in media prices, consumption trend plus our football offer should compensate for the normalization of audience issues you phrased before? I thank you again and hand over to Marco. Jean, Fabio, as I said to Julian, we are not willing to create an expectation at all. Clearly, let us working, and we will announce deal only once that they will be done, not certainly before. Clearly, rumors will appear. That's a part of the game. And certainly, we are not going to comment them every time that a journalist say something. Otherwise, it will be pretty difficult to react to any kind of rumor. As far as the headquarter movement to Holland, as you know, because we always said it's important. It's important for the future of the company. And I can confirm it, but cannot be considered the 1st step of anything. And as I said, once that deal will be signed and reached, we will announce it. We don't want to create expectation before that moment. Thank you. Thank you very much. The next question comes from Sarah Simon from Berenberg. Please go ahead, ma'am. Hi, good morning. Just one question. So you've obviously done very well out of EI towers selling the telecoms part of the business. Is the game plan now essentially to wait until you can consolidate the residual business with rye or and then some kind of an exit at that point? How do you feel do you feel it's necessary strategically to still own the stake? Or is this more about thinking that you can create more value still from what's left? Thanks. Sara, I mean, we were always in favor of a consolidation between railway and EtaW. So if you remember, I mean, it's already 4 years probably, I don't know exactly. In any case, long time when we try to be active in that process and for many reasons we were stopped. In any case, industrially speaking, the merge or the combination is fairly rational and value enhancing for all the stakeholders. Having said that, as you know, we are minority shareholders in Itau, so we are not really managing the company. What I can tell you is that the company is in any case following their strategic plan. They are creating value and we are happy with the performance of the company. And as far as our position versus the participation, as we said, we will stay until we don't see the complete valorization of the stake. And we believe that the Italian environment today, it's a little bit more in favor for the consolidation than before. But that's just, if you want, a sensation we got from around the country, but certainly from rumors we got from Rome. But I mean, we will support the company in that process, and we will favor certainly any integration project that the management will provide to us. So we are certainly positive in that respect. Thank you, Oksana. Okay. Thanks. We are now moving to Stefano Gambierini from Equita. Please go ahead. Good morning, everybody. It's a question from my side. The first regarding Spain. In the previous MSC project, you started with a proposal of merger between Mediasenta and Medias de Espana. So what is now the view that you have in a consolidation for Spain? And what is the role of this company that you control also on the side of savings that you also set for the previous MSA deal? The second regarding the possible change sorry, the change of the TV sector law that should happen shortly by the government. Some rumors that underline that there could be a cut off ceiling for advertising collection for RAI and as a consequence and advantage for the other operators. So what is the net impact that you expect at the end of the day from this law and advantage for the commercial TV or not? And the third one regarding the OpEx. Despite the cut of 10% in the 1st 9 months, you still keep the full year guidance with a 6% cut on 2020 on 2019. What could expect on 2022? What I mean is, are there some inflation, significant inflation that we can experience next year? Many thanks. Gracias, Stefano. Let's start from Spain. You resumed exactly what we did and clearly, I don't want to comment again. Maybe it's important to repeat the fact that the merger has been blocked by Spanish tribunal and court, let's say. And Spain, during the COVID emergency, let's call it in this way, has issued emergency law regarding listed companies. So technically speaking, we don't think it's the right moment to do anything because of these two elements. And so I can tell you that we are not working on anything like that currently because as I said, the external condition are not providing a positive environment versus the merger. But having said that, Spain and Mediaset Espana share the view we have in consolidation. They are active in that, and you know that they bought some Brazilian share as well. So they are exactly aligned with our view regarding the future, and that's clearly it's also reaffirming the fact that Mediaset Espana will be part of the consolidation as well. But as I said before, clearly, for the time being, we have nothing to announce and we don't want to create expectation in that respect. But I would like to repeat that the formal legal and regulatory environment today in Spain, it's suggesting us not to move. If things will change, certainly, we will reconsider the situation in the future. Moving to the Cretos or the draft law, let's call it in this way that has been in discussion in these days. It's a pretty large draft law that is clearly not only, let's say, regarding rye, but as you know, being a drafter, it's better to wait because clearly making calculation on providing expectation on a drafter in Italy is pretty difficult. So I will wait to make I will wait the final law before commenting anything because I believe that it is completely not useful to do it before being the discussion already ongoing. As far as 2022 cost line, we don't see specific inflation on cost, but it's true that the budget will be the budget exercise will start only at the end of this month. And so it's very early to say anything precise. As you know, I mean, the conference in November can guide you a little bit more on that. But as I told you, I mean, we are in the middle of the transition we started many years ago to moving away from purchase of TV rights. Clearly, that's also you can see it and you can appreciate it also from the first half result, moving the investments from purchase rights purchase to local exclusive and original content, and that's clearly proving also looking at the audience and the digital performance to be effective and that's something that will go on in this, let's say, shift. For the time being, as I told you, we don't see total cost inflation. But there will be certainly some cost that we grow because you can understand that we have variable cost variable to revenue cost in our total cost base. But I mean, the general statement for us is cost discipline, and we will create as much as possible a cash flow increase as we proved to have done in the first half. That's our objective. So cash flow generation will be at the top of mind also for the next year budget. But as I told you, I cannot guide you anyway because the budget exercise has not started yet. Thanks. Just a quick clarification, if I understood well. 9 months advertising was target is up 1%. Did you spend also the same target for full year advertising? Or am I wrong? It's up to me, Marco. You are. Yes. Yes. You got it properly. So we have the same expectation, both for the 9 months progression and for the fiscal year progression compared to 2019 baseline. You're right, 1%. And just to understand why you expect a decline in the Q1 versus the Q1 'twenty in advertising, more or less 4%, if I'm not wrong? No, no, no. We don't have any expectation about the decline. As I remarked during the presentation, we are benchmarking ourselves versus 2 quarter, Q3 and Q4, but already positive quarter last year. So I remind you, it's 4.6% for Q3 and 3.5% for Q4. So our expectation is to be to keep on in the positive progression. We have 5 quarters in a row of positive progression. That is why we say, okay, we do expect to have the 9 month progression around 1% And then to maintain our performance in the positive area compared to what is the real benchmark that is 2019. You see this is a Fil Rouge, a light motive for all our presentation, both for advertising and financial. We compare ourselves versus a normal year 2019. And compared to a normal year, we are saying that we are beating the baseline 2 years ago and fully recovering any loss, any damages due to COVID-nineteen in year 2020. So we are positive on our progression in numbers. Our next question comes from Richard Eary from UBS. Please go ahead. Your line is open. Hi, good morning everyone. So three questions. Just first two on clarity and the last one just going back to NFE. Just going back to I just want to be clear on what you said on the advertising. Are you saying that the 1st 9 months, your expectation is to be 1% above 2019. Is that correct? Of which the 2019 base for the 1st 3 months was €1,250,000,000 Yes. It's our expectation is 1,144,000,000. Okay. Thank you. Okay. That's great. So the second question just on the cost side. Just to clarify, you've got you're saying it's down 6%, down from the 2019 level. Does that include the additional cost of the football cup that's come through or not? Or do we have to add that on? No, no, it's including. So it's 6% down including Coppa Italia. Okay. So $17,080,000,000 is the number that we should be thinking about, Marco? Yes. Dollars 1,700,000,000 in 8, yes. Okay, brilliant. And just for clarity on numbers in terms of other revenue lines, is there anything that we should see happen in the 3rd Q4 that sees that number? Originally, I think you'd guided to 300,000,000, but I just want to be clear on that, whether that's still in line with your targets, which means that we're expecting a bigger Q4. Yes. I am confirming that the target for the full year is to be very close to last year number, so the 300 you said. Clearly, in the first half, we were behind the mathematical, let's say, half of it. And I explained the reason for it because we had some, let's say, like for like differences between 2021 2020, mainly regarding 2020, which we had the 1st 2 months in which we launched 2 big blockbuster that clearly are not they were not possible in the first half of twenty twenty one. And last year, we had also the sale of the home shopping activities carried out in November. These are two elements of comparison that we clearly revert in the second half twenty twenty one. And in addition to that, we have other revenues that are going through in the second half twenty twenty one. And I meant the streaming of Champions League. We have some content resale. And so that's the reason for which and so also some retransmission fee that will come through. And that will cause the fact that full year other revenue will be in line with last year 1. Okay. And just lastly on Media for Europe. From what you said, you're not going to I understand why you don't want to create any expectation and you're not allowed to deal when a deal is done. But we can assume that a deal will be done in time. It's just a question of timing. You're not stepping back away from the original idea of Media for Europe. As I said, we are a full believer of the consolidation. Frankly, we cannot be 100% sure to be consolidator or consolidated. That's something that the Mahali market will say. We will try to do our best to be large as possible. We in the sense, media said we try to be as large as possible to grant the shareholders the maximum value of it because we consider size as a very important criteria in companies' valuation, generally speaking. Clearly, deal has to be done before announcement. So and we are clearly working and we can confirm that everything we are looking around is confirming that size is crucial. It's crucial more for revenue opportunity than for synergies. And that's the reason which we try our best to pursue it. So that's the point. We are less in favor of deals that will deliver synergies on cost because that's clearly easy, fast value it's easy also to calculate the value that can generate. But strategically wise, we believe that traditional media in Europe will suffer for revenue growth missing. So we need to build platform that could grant revenue growth because otherwise the size of the media company in Europe will go on in decline. That's part of the changes on the industry sector as far as we can see. Marco, just to ask a follow-up with that. Is there are there any opportunities that may come out of the Warner Discovery merger that you see that may present other consolidation opportunities either in Italy or Germany? I believe that Discovery at least it's one of the European traditional media company that somehow will be part of the process. Then as I said before, I don't know if Mediaset will be consolidated or consolidated. And I don't know whether Discovery where Discovery stands. So that's clearly something you should ask to them. But I can confirm that Discovery is a European operator and clearly will be part of the consolidation of the market. I don't know which role they will take. Thanks, Marque. Thank you. Thank you, Mark. And just I would like to add, let's say, an important, let's say, qualification to our statement with regard to 9 months and fiscal year progression. I repeat that our base case is to maintain, let's say, the positive speed in our progression around 1% both in 9 months and in the fiscal year. Of course, this should be considered on your side as the base case. If the market is going better, of course, we will do our best, as usual, to track the market trend. So the important qualification in your analysis is to consider this as the base case we are confident on our strength. And then let's see in Q4 the market performance and if this base case could be also improved to some extent. Okay. I thank you. And I think I should hand over to Sara probably for the conclusion, if I'm not wrong. Yes. Thank you, Matteo, and thank you guys for all the questions. We would like to thank you very much for taking the time for the conference call. And as always, we will be available for any question, any information you would like to ask. Have a great day. Bye bye. This will conclude this conference call. Thank you for your participation. Ladies and gentlemen, you may now disconnect.