Earnings Call: Q4 2018

Mar 27, 2019

Good morning, ladies and gentlemen. Thank you for standing by, and welcome to OI FA conference call to discuss the fourth quarter of 2018 results. This event is also being broadcast simultaneously on the internet, your webcast, which can be accessed on the company's IR website. Www.oy.com.br/ri together with the respective presentation. We would like to inform that during the company's presentation, our parcel will be only listened to the call. We will then begin the Q And A section when further instructions will be given. Questions since the webcast will be prioritized We also would like to inform that the conference will be conducted in English by the management of the company and the conference call in Portuguese will be conducted via simultaneous translation. This conference call may contain some forward looking statements that are subject to to note and unknown risks and uncertainties that could cause such expectations to not materialize or differ materially from those in forward looking statements. Such statements speak only as of the date they are made, and the company is under no obligation to update that in life. Of new information of future developments. I will now turn the conference over to Mr. Mario Cortes, CEO Please, Mr. Rudico, you may proceed. Good morning, everyone. Thank you for joining our conference call for the fourth quarter of 2018. I have here with me, she's at Clouder Gonzalez, Chief Operating Officer Bernardo Winnick, Chief B2C Officer. Carlos Eduardo Maderos, Chief Regulatory Officer Phil Du Almeida, Chief Administrative Officer Carlos Blundell, Chief Financial And Investor Relations Officer and Marcelo Ferreira, and the IR team. I'd like to begin our earnings conference call by presenting an overview of 2018. We began 2018 celebrating the approval of the judicial organization plan in the last days of 2017. We did know, however, that this was just the first step for a company's turnaround. As part of the execution of the judicial organization plan, we completed the conversion of bonds into shares and no weighted other debts thus restructuring our balance sheet in 2018. Supported by the new shareholder base, we held an extraordinary shareholders meeting to elect the new Board of Directors, composed exclusively of independent members, aligning the company with the highest global corporate governance standards. In the 1st stage of 2019, we completed the capital increase set forth in the judicial organization plan, injecting R4 billion reels into our cash, which is already funding the acceleration of our investment plan, which is the basis for our business to be restructured. As for operations, one of the highlights of 2018 was the approval of the judicial organization plan, which increased predictability and clarity. As a result, we began to focus investment on improving the mobile coverage, revisited the offers our portfolio in order to adjust our plans to the customer's conception profiles and intensify sales efforts. As a result, we reversed the trend and recorded a good performance in 2018 with a net addition of over 1,000,000 new postpaid customers. In the third quarter of 2018, we began accelerating the CapEx plan focused on access with the deployment of fiber to the customer's home and refarming the 1.8 gigahertz frequency range for 4.5g in the mobile segment. We added over 600,000 homes passed in the last 5 months of 2018 and closed the year with 1,200,000 homes passed. Our operating team is prepared to add over 200,000 homes passed per month, and our plan is to end 2018 with at least 3600 Homes Bus. The fiber project is at the heart of our business strategy and will be the main driver of the company's repositioning towards a more sustainable growth based on our infrastructure advantage. We will delve further into this topic during the presentation. What enabled this growth in homes passed was the acceleration of our investments in the 4th quarter. We closed 2018 with CapEx at 6.1000000000, and this figure is expected to be even higher in 2019. With investments of around 7,000,000,000 reels so that we can keep installation out of space. I would also like to point out the exceptional work we did to reduce costs in 2018. Our digitization, operating, efficiency, and quality work streams made an important contribution to a cost reduction of R1.4 billion dollars, which represents a decline of 11.2% in real terms compared to 2017, considering inflation. Finally, in February 2019, We came first in the Netflix ranking of internet speed of ISP. Yes. We were ranked first in the first time our Project OA fever participated in the index. This result reinforces our strategy and reflects the quality that we have in our product, which has great value creation, potentially, rather, and it brings financial results and strengthens our brand. I now give the floor to our CFO, Carlos Van Dengh, who will present the financial and operating results for the fourth quarter full year of 2018. Thank you, Rodrigo. Good morning, everyone. Let us begin on Slide 4, where I will summarize the good performance of the mobile segment in 2018. By analyzing mobile product separately, in postpaid, the investments we are making to reform the 1.8 gigahertz frequency has been increasing our network quality and capacity, generating a better usage experience for our customers, and allowing us to launch new offers throughout the year, in line with customer demands for data and content. The markets reacted very well to our offerings, making it possible to reverse our net adds trends in the postpaid. As a result, we ended 2018 with more than 1,000,000 net additions in this product. It should be noted that a significant portion of this growth in the postpaid is driven by migration of customers from our prepaid base. However, analyzing the numbers of portability between operators, we also see an important trend reversal, which indicates that the market has been recognizing the value proposition of our offers. In the prepaid, the reduction of the interconnection rates and the traffic migration from voice to data in the last years have reported a process of consolidation in this market. As a consequence, only in 2018, the prepaid market shrunk 13% compared to 2017. Even in this extremely challenging scenario, our prepaid presented some resilience and we are able to grow our market share by almost one percentage point. As a result of this good performance of our client base, especially at the postpaid, our total net mobility revenue increased by 0.9% sequentially, confirming an important trend reversal. Let's move to Slide 5. Where I will present our B2B results. We present revenue decline in B2B in line with the trend of this market which is highly dependent on the macro environment and the economic activity levels in the country. Analyzing our corporate business, we have increased our commercial capability in 2018 to be closer to all our customers. In order to retain our current customers and to create more sales opportunities for both existing and new clients. This strategy in 2018 resulted in good performance of some KPIs that we present in the slide grasses such as sales and new revenue growth as well as the expansion of our data service. For 2019, our focus is to continue the commercial acceleration and to work aiming to positioning Oui as a player of digital MIT solutions, thereby capturing opportunity in this growing market, segment and reducing the exposure of our revenue to service. For the wholesale, this strategy has been to increase the share of unregulated revenues on the total, From the end of 2016 to the end of this year, we managed to improve the share of unregulated revenues in 20 percentage points from 36% share to 56% share. The challenging in this segment is to optimize value creation with the existing infrastructure. In that sense, The focus is to create new business models in order to capture in the opportunities that will be created throughout the fiber expansion and the preparation of the transmission network for the 5G. Moving to Slide 6, let's discuss the Residential segment. As in B2B, the Residential segment also has revenue exposure to customer service in a declining trend, mainly in the fixed voice, which has been replaced by data and mobile voice and the broadband by copper, which has been suffering from the competition, practicing more aggressive price and higher speed in their offerings in this market. On the other hand, our OATV product continues to grow both in revenue and RGUs contributing to attenuate the negative impacts of the 2 other products. The strategy to turn around the residential businesses fiber through the rapid expansion of our customer base with fiber to the home. In the second half of twenty eighteen, we started to accelerate the CapEx spend focused on FTTH through the reuse approach. And by the end of December, we already had some results with important initiatives. Our customer base with OI Fibra grew 2 57% compared to the last year and 67% compared to the previous quarter. The fiber projects is the main lever for repositioning the company towards sustainable growth based on our infrastructure differentiation. Moving to Slide 7. Fiber is the center of the company's investment plan strategy by leveraging series of structural and competitive advantage with high value creation potential. All of these levers combined and translate into a project with high expected rate of return of investments. The first structural advantage is our robust and expensive fiber network. More than 350,000 kilometers of fiber, combining transport network all over the country with high quality and capacity, together with an extensive popularity of metropolitan wings. With this unique and non replicable infrastructure, we are able to reach more than 2 point 2 1000 Cities with fiber in regions 12. A second point is the low broadband penetration in regions 12 where oil operates, demonstrating a huge opportunity in this market, especially with a potential future macroeconomic recovery and the acceleration of the digital agenda in the country. Additionally, as a result of the lower investment levels in the last years, or have been losing market share mainly to the regional providers, which mostly do not have the same part of wave fiber broadband. Putting us in an attacker position in this market with a huge win back potential. Looking at the product itself, due to its high quality and differentiated user experience, fiber has a potentially higher ARPU and lower churn rate than the copper broadband. Additionally, the fiber potential is the bottle penetration. Considering the investment side of the equation through the reuse approach by taking advantage of our extensive infrastructure already deployed, our construction cost is on average 30% lower in the traditional approach, where the operator needs to deploy the whole fiber network to provide FTTH. In addition, fiber network has much lower maintenance costs especially considering areas where the copper network presents high degradation levels. Looking more broadly, the fiber projects benefits are not just about residential products. Fiber infrastructure also has enormous benefits to the current upgrade process of our mobile network to 4.5G and we will be key for 5G in the future. In addition, especially as another transmission network for 5G mobile network. This infrastructure will bring high potential of opportunities for B2B value creation. Moving to Slide 8. All the levers mentioned on the previous slide were used as assumptions for the construction of our fiber deployment model. With the pilot project that we launched in 2018, we have been seen encouraging confirmation of the value levers. I highlight on this slide, the results of the fiber pilot in CaboFrio in the state of Louisiana. This is the city with reduced approach with greater maturation within the company. Additionally, the Cabo Free is the city with social economic profile, very similar to that of several other municipalities in region 1 and 2. The results have been very positive with significant sales growth and trend reversal in the evolution of customer base, not only in broadband, but also in fixed advice. In surveys conducted with customers, 76 percent pointed to a fiber as a better internet provider than the previous one, resulting in a churn rate 50% lower when compared to the copper products, also both in broadband and fixed points. These early results have been confirming our thesis regarding the potential of the fiber. Now we are expanding this project across the country to capture these market opportunities. On Slide 9, we see the potential of fiber in our entire existing infrastructure. The potential for expanding the FTTH network in our existing infrastructure through the reuse approach is huge. Based on our assessment, out of the around 70,000,000 households in Brazil, approximately 50% have positive NPV. We are assessing the existing infrastructure for those $35,000,000 that generates positive returns. So far, we have finished the analysis over 50,000,000 and we concluded that for 9,400,000 households, we have the immediate potential of FTTH deployment. Requiring only the construction of the last pet of fiber that passes through the client's home. For the remaining $5,600,000, we need the installation of electronics to support the CPA service. Now the challenge is to execute and scale up the project, Our operations team started to accelerate the process in the fourth quarter and today is ready to deploy more than 200,000 homes per month. Moving on to Slide 10, we engaged an Oliver alignment to support the company to manage and control with efficiency based scale up of the fiber implementation for the whole country in order to reduce the execution risks. In parallel, we are reviewing the business strategy looking for more value creative opportunity in the medium to long term and we brought Boston Consulting Group to support us in this exercise. In connection with the exercise, we expect to work on the sale of some assets that are noncore considering the strategic review and we brought Bank of America Merrill Lynch to support us in this process. Let us move on now to Slide 11 to discuss in details our CapEx. As I said before, in the first quarter, considering the visibility about the conclusion of the capital raise, we accelerated the investments and the implementation of our CapEx plan. We invested R2 billion dollars in the quarter, representing 39% of the revenues and we ended 2018 with R6.1 billion dollars in CapEx. With this acceleration, we ended 2018 with 1,200,000 homes passengers with FTTH providing the service in 27 Cities. We also ended 2018 with 2.3000 sites requirement in the 1.8 gigahertz frequency to offer 4 and 4.5G, multiplying this number by 6 in the year. In the next years, we will invest even more For 2019, we expect to raise CapEx to a level of BRL7 billion. With this, we expect to triple the wrong best deployed and in 2019 with 3,600,000 HPs with FTTH, arriving in 62 Cities. In mobile, we estimate to end 2018 with 4,600,1.8 gigahertz site requirement for 4G and presents in 485 Cities. Moving to Slide 12. We are presenting another year of significant cost reduction. We ended 2018 with R1.4 billion dollars reduction in OpEx compared to 2017. We have been working constantly in the last years on different fronts within the company to optimize our cost structure. As an example, in the last 5 years from end of 2013, until the end of 2018, we reduced costs in nominal terms more than R5 billion dollars. The cost chart for this slide clearly shows that all major cost lines have experienced significant reductions throughout this year. This is the result of our work on 3 main pillars, which we will go into details in the next slide. Greater efficiency and productivity on our field operations, quality improvements, and the digital transformation of our business. This performance in cost efficiency has helped the company to offset the major part of the revenue decline. The EBITDA accumulated for the year end accounted to R5.9 billion dollars, very close to what we expected in the judicial reorganization plan, despite the completely different contest we have now compared to what was considered in the plan. We know that plan is exactly to address this challenge, and we are very confident that we are in the right way to restructure this business and to turn around the operations. This rigid cost reduction has also been driving the evolution of the EBITDA margin in the last few years. Moving to Slide 13. As I said, in the previous slide, the actions we have been taken in operational efficiency digital transformation and cloud improvement have been playing a key role in controlling and reducing the company's expense. These actions resulted in several operational improvements. Some of them demonstrated in the left side of the slide. This improvement has been driving our cost savings, especially in the lines of 30 party service with considerable reductions in expense with call centers, sales and billing, network maintenance service and provision for contingencies. Important to highlight that all these initiatives are structured and will continue to produce sustainable results. Let's go now to slide 14 where I will present the company's cash debt and new shareholding structure. Cash position at December was R4.6 billion dollars, a reduction of R537 1,000,000 compared to the previous quarter, which is justified by the acceleration of the CapEx in the last 3 months of the year. Our working capital was positive in BRL649 1,000,000 as part of this CapEx will only be paid in 2019. Since the supplier's payment curve is a bit longer. Payments of financial operations refer to taxes and cost related to the debt restructuring and also to financial costs related to bank The graph in the bottom shows gross debt, which increased R314 $1,000,000 from September figures, manning due interest accrue and amortization of the fair value adjustment, which were partially offset by exchanging rate valuation. Shareholding position of the company after all the events of the cutaways. Currently, 97% of the company total stock is common stock, and we have approximately 5,900,000,000 shares outstanding. Now moving to slide 15, I highlight some recent nonoperating events disclosed to the market by the company. The first highlight is related to Unitil. We had 2 recent important positive events regarding ongoing operation. The first was the decision of the withdrawal tribunal in Paris determining that other shareholders of UnitEL to reimburse pit debentures our subsidiary, the equivalent of $658,000,000 plus interest for repeated breach of the shareholder agreement and also for not receiving a dividend in foreign currency which has been paid to another for when shareholders of Unitil. The arbitrage tribunal also ordered the other Unitil shareholders to pay a substantial portion of pity venture's legal and administrative fees and costs in the amount of over $13,000,000. The other event related to UNITEL was the election of the board of directors in the shareholders meeting where BT Ventures nominated 2 members of 5. And one of them will also hold the position of managing director of Unit Health. The second highlight is in relation to PISCOFIN on ICMS. This month, the company obtained favorable judgments in 2 of the three cases related to the discussions on the no incidents of peace and confidence on ICMS. The 3rd process is still ongoing. The total amount of these credits in 2018 was approximately BRL3.05 billion. In relation to these two cases in which the final judicial decision was obtained, the amount is approximately 2,050,000,000. The company is now taking all necessary steps to qualify these credits so that we can begin to use them to offset future federal tax debt. I give now the floor back to Rico for his final remarks. Thank you, Brenda. I would like to end today's conference call by reinforcing the company's strategy for the coming years. We restructured the company's balance sheet in 2018, and we are now beginning to restructure the business itself. As Rendon explained, our CapEx plan is focused on fiber as our competitive edge to reposition the company and resume sustainable growth. In the fourth quarter, we accelerated the execution of the project with relevant impacts on all of our business segments and high return potential. The first results are very encouraging, and we are intensifying our sales efforts in order to begin expanding our customer space at the same time as we increase the number of homes passed. We also continued to work on refarming of the 1.8 gigahertz frequency range in order to expand our 4.5 G coverage and to further improve our performance in the mobile segment, where we have reversed the downward trend and resumed growth. We have a well defined strategy, a highly qualified team, and the company is now 100% focused on executing this plan. We'll face many challenges in 2019, but I'm absolutely convinced that we are on the right track. Finally, I'd like to thank everyone. All of our shareholders, employees, customers, suppliers, the board of directors, the audit committee, and all other stakeholders their commitment and dedication throughout this process of construction of a new OA. We will now begin the question and answer session. I would like to turn the floor over to the company Q And A section. We'll learn through all again. Let's start with the questions in our webcast platform. So the first one is regarding the revenues of the company. So the question is, revenues have been declining in the last years. What are the company's plans to reverse the downward trend? What do you expect will be the trend in the next years? So, as I said, during the last earnings calls, the river the results in the revenues are connected with the under investments we did in the last 3 to 4 years. So to address that, we are now increasing substantially the investments. As you see in the fourth quarter, we reached almost 40% of the revenues and then that will be the key to reverse this tower trend, this downward trend. So we start to capture results on mobile, As we said, we reported 1,000,000 net adds on the postpaid in 2018. It's an important milestone that we reached in comparison with the last years. On the other hand, the main, important pillar of our CapEx plan is the fiber. Fiber is our umbrella for a cross segment strategy. So, with fiber, we expect to address an important piece of the demand and we are fairly positive with the results we had in our pilot in Cabo Freo. But Freo was that made a clear rule in order to, confirm the assumptions we had on our investment thesis here. So we are now accelerating this CapEx. As we said, we will expect to reach BRL7 billion this year. So that will be the the key, to to address, this top line trend that we have. We expect to have a decrease on the pay pay base of the revenues decline this year and the stabilization in the next year and start to grow, in 2021. The second impression we have here is regarding, our EBITDA. So the company ended the year of 2018 with 5,800,000,000 EBITDA. What is the EBITDA expected for 2019? So, we are now working in several initiatives in order to, impact our margin growth. So the first one is connected with the the the the first question we had, regarding the revenues because, one important milestone that we have to achieve is to start to report growth in revenue so that one important key for improved EBITDA margins will be to increase the revenues through our CapEx plan so that the first, driver that we are working We continue to work with the pillars of cost reduction that we are working through the last years. Digitalization of the process, improve on productivity, on field operations, and quality. So we'll continue to, if to, give room for important role in this agenda in our, in our, routine here at the company. So, we expect to have some pressure on cost this year due to the commercial acceleration we expect to start due to the CapEx plan. So To offset that we are working in this project with BCG, which is in the middle of the project right now, where we expect to communicate to the market all the the outcomes of this, discussions that we are having together with the board. And we expect to do that allowed me, to communicate the revisited new strategy of the company, and then provide some more clarity on the drivers that we in the next years. So, the first question we have here is regarding our cash position. So the question is, with the CapEx growth and since the return on telecom takes some time, it's natural to expect a cash burn in the coming years. What is the company doing to cover this funding gap? So, in that regard, we are working since we fire the judicial recovery plan and several alternatives to uh-uh provide the funds you need to support the investment in the next years. So, we are here in this conference call, are showing The results we have on we have on PISCOFINS. So that would be important to address part of this funding gap with almost 2,000,000,000 has already budget and 1,000,000,000 has to be budgeted in the short term. So that should address around 3,000,000,000 on our funding necessities for the for the coming years. The other one, we also highlight in this earnings call is the developers we had in Angola with Unital. So, we are now, got a course to be able to manage the company. And with this new scenario, certainly we will start to part rate, the dividends we had, high out in Angola in the last years. So that will be an important and also another important tool to address this funding necessities. And we have also, the initiatives that we all had already discussed in the previous calls regarding some assets that we consider to monetize because we understand there is an important opportunity to create value through this monetization and to allocate this capital on our CapEx plan. So we have several initiatives in parallel and we are very positive that there will be more than enough to support this funding necessity we have, to support our investment program in the next following years. Ladies and gentlemen, We will now begin the Q And A section for Investors And Analysts. Remember, that question should be asked in English, and those questions and the webcast will be Hi. It's Vara from Bradell. Would like to make a question. Hi. Good morning. It's David from Bradesco here. I I have a couple of questions. First one regarding the PISCOFINS case, and we appreciate the update on that. And we understand you're assessing it, but do you have an initial expectation about the time frame do you expect to capture the benefit? So how long can you expect this to be phased into your cash flows And when do you expect the remaining BRL 1,000,000,000, should this show gain to be booked? And my second question on Unitil, it's, when do you expect to see the cash related to the decision in the arbitration proceeding, and if there has been any other progress in the negotiation of your stake and the timeline for getting the dividends out as you mentioned. Thank you. Thank you, Gilania, for your questions. So starting with the PISCOFINS, this part of the crisis already that had already been charged. We expect to start to get the benefits on our cash flows in the second half of this year and expect that to last for around 3 years. The remaining one being on is very hard to precise exactly when it's going to be judging, but we expect that to be judging in the very short terms probably, in the first half of twenty nineteen. Regarding the unital, we are now we have, again, in the unital initiatives, we have several in parallel. 1 is the effort to exercise the enforcement, that we have now the rights to do since the decision on the arbitration, that should take some time because there are several steps in order to be achieved in order to effectively, starting force, the local partners, assets. So we do not expect to have results on this specific, item this year. In parallel, we will take the control again of the company in May, 6th with our recently appointed CEO, Miguel Jardis. And then when he, will be there. We will have more clarity on the capacity to ex expatriate the dividend that we have there. So, I don't I have this information right now. We have to wait for Miguel to reach Agala and then understand that the real capacity to export this dividends, to provide more precise information to the market. Regarding the process of selling the stake, Now we have, refresh the agenda on that because once we have the control of the company again, we will be able to have the ability to run further process to bring, potentially, international investors to understand and potentially buy the assets. So it should take some time. The good news that now will have the ability to, start to start with the dividends. Our actual pressure marker here is that the amount per month we can, expect for it and we will have more clarity, once have the control of the message again. Ms Barbara Hoberstik from Bank of America would like to make a question. Hi. Thanks for the call. I just wanna questions were answered about Onitail. I have 2 other questions. Regarding the postpaid additions, are you saying the same path in the first quarter of this year? And do you expect us to see the same type of growth for this year in the in the low bio postpaid terms of net additions. And the second question regarding the PLC 79, do you have any updates on your expectations of approval of the bill in the first half of twenty nineteen? Thank you. Hi, Barbara. Thank you for the question. I was going to ask Benoit to comment on the postpaid. And Kabu, our regulatory and vice president to come back on PLC. Hi, Barbara. It's Bernardo speaking. And we expect the same, the same, in the first quarter. And for the 2019, we expect accelerate the results in this product. And our expectation is to have a better results than we had in 2018. Hello, Barbara. It's Cadu speaking, about the PRC 79. What we can see is that the Dow or the discussions that were in place last year, they still remain in this new uh-uh. The new the the the new moment at the Senate right now, And, what we can see is that the doubts are surrounding the value, the methodology, how the the balance will be find, and how the, this, this amount would be spent on broadband. So as far as we can, approach the the PLC, we can come up with facts and the decisions that were made in the past, on the migration from the the SMC, the mobile licensing we had in the past that was public to the the the private license we had right now. So it was the same thing. The decision was made at the time by Anatel, TCU, and so on. So we can bring this to clarify the doubts that they have right now and the amount, how it will be spent that there are studies made by Anatel And IPA and others that would bring some more clarify, how the money will be spent and how the broadband will be built in Brazil. I think that this is, that there is more understanding at the Senate, at the Upper House, at the FICE And Technology Committee about the PLC, we cannot assure that, that would be approved on the first half of this year. But we hope so. We are watching the movements and we think that it's feasible. Okay. Mr. Marche Willard from Barclays. We'd like to make a question. Thank you very much. I had a few questions. First, in terms of the drivers for cost reduction in 2019, So we've had the PG and E being approved. And I was wondering if that can already have some benefits in 2019 are not and what you embed in your internal planning on that point for 2019. Second, could you give us a little bit of color in terms of the price points you are, charging for your FTP X products possibly, it's different from city to city region to region, but a sense of where it stands compared to the kind of pricing plans you have on broadband? And then, lastly, with regards to Unity, I just wanted to make sure I understood correctly, the amount that is due to you. So that's due to PT ventures in which you have 75% and therefore, you will get 25% of the amounts we've been discussing or am I getting this wrong? Thank you. Hi, Matija. So starting with your cost question, specifically regarding on PG AndU, the total benefit of the PG and E is around 150 to 200,000,000 per year. We expect to capture something like half of this benefit this year because we have some decommissioning costs on the on the public force that we will incur in order to capture the full benefits and that we expect that to be in the next year. So, I think that if I understood correctly, that was your question on the cost. The second question regarding the price thing. Can you please repeat as far as the question regarding the the broadband? Yes. So basically I wanted to understand, what kind of price points consumers were paying for your FTT X product And how did that compare with broadband, the traditional ADSL products, for example, just to get a sense of the ARPU uplift it can lead to? On a longer basis, our hydro project costs, typically 100 for the the the initial plan. And, in comparison with, the copper broadband, it's something like 20 to 30 heris, higher than the the copper. And and and the pricing point that we are now working in value is very competitive as we reported, we are now, approving all the the data experience that offer the offer to the customers. Through the, Netflix ranking. So we are very, in terms of price support, we are close the competitors, but in terms of experience, we are very ahead. And then the 3rd question regarding, Umitel. And, again, can you please we did the question. So thank you for all these answers. So I think PDVent was a 75% stake, in, in, what, or rather. You have a 75% stake in PT Venture, which is a 25% stake in Unitil, if I understand this correctly. So I wanted to understand out of the 600 and something 1,000,000, dollars that are due to be paid to you, how much actually goes to I and how much is lost to minorities along the way. Okay. No. So so just to to, address your view on the structure regarding Unitil. Actually, we have 100% of BT Ventures. But we have 86% of Africa, which that's above, BT Ventures. So Regarding the minority stake, it's 40 14 percent, and then that, that, that, that, that will be considered under calculation. We have, and this is a structure, a low one from Peti Pachipac size to Alcatel. We will have Peti Pachipac centers above Escatel And then we only have the minority, impact, after paying the the the moment through a pity, pity, participant size. The total amount of the loan is around $650,000,000. That's very clear. Thank you very much. Thank you. Mr. Samantha from New Street would like to make a question. Yeah. Hi. It's Sumit at New Street. And just two or three questions, if that's okay, please. One, sorry, just to go back to Unitell again. But can I just clarify, is your expectation that there is no obstacle to repatriating the dividend other than foreign exchange limitation, so there's no further hurdles needed at any level in in the unit health business? And could you just confirm, secondly, Can you also repatriate the lost interest on the dividend? Is that your expectation, or is it just the kind of circa 700000000 of nominal dividend, which was not paid over the years concerned. That's the first question, please. So regarding EBITDA, we will have more clarity, on the dynamics of Angola and the the company itself after we take charge of the operations. And that will happen on May 6, So we expect to expatriate the full amount of the dividends together with the interest, but we have to understand the FX limitations to expatriate the dividends in Mongolia. So that's something that we have to learn after we take the control again of the company. Okay. Clear. Thank you. And then just a couple of follow ups, please. 1, I'm not sure how much you can say about this, but your advisers are talking through potential asset sales. One of the, things being considered by the market is a potential sale of the wireless business. I don't know whether that's something you are considering, but perhaps you could comment on whether that is something which is on table for discussion with your advisers. So potential say that the Oey wireless business. And then secondly, just onto the fiber project, in terms of the run rate, you're looking to pass homes. And I think you said this before, the 9,400,000 homes would take about 4 years to pass, which is a which is a great change to the business, but it would be good to accelerate that further. There any opportunity to think to up the run rate, from the 200,000 homes passed per month at all? Yes. So Ladies and gentlemen, please stay connected. So, again, returning from where we have stopped it. In the summits question regarding the asset sales. We are in the middle of the project with BCG So we are, of course, as is our duty, discussing all the potential trends with the maximize value of the company. So the exercise we are running considers all sort of scenarios, and then of course, when we reach the, optimized outcome of these discussions, we will communicate the market. But at this point, it's in the middle of the project, so there is no conclusions we have no prejudice on the discussion that we are having together with BCG and the and the board of directors. So, regarding the second question, so by regarding FTTH, questions. We are aiming to achieve this year this 2,600,000 homes asset. Today, we are deploying around 250,000 HP per month. We are about to achieve, 350,000, and we have the capacity to achieve 550,000 per month as we have if we have the funds for that. We are working in different addresses to fund that So you want, and we are working to accelerate this, pace of deployment. Great. Okay. Thank you. Turn the floor over to the company for the final remarks. So thank you all for your participation in our earnings results call. Remind me to remind you that our IR team is available for any further questions. Good morning and good week for everyone. This concludes OSA conference call. We would like to thank you for your participation. Have a good day.