Good morning, ladies and gentlemen, and welcome to Yduqs video conference to discuss. This video conference is being recorded, and the replay will be available at the company's website at www.yduqs.com.br. The presentation will also be available for download. We would like to inform that all attendees will be watching the video conference during the presentation, and then we will start the question and answer session when further instructions will be provided. Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding the company's business prospects, operational and financial projections and goals are the beliefs and assumptions of Yduqs' executive board and the current information available to the company. These statements may involve risks and uncertainties as they relate to future events, and therefore depend on circumstances that may or may not occur.
Investors, analysts, and journalists should be aware of events related to the macroeconomic scenario, the industry, and other factors that could cause results to differ materially from those expressed in the respective forward-looking statements. Present at this video conference, we have Mr. Eduardo Parente, CEO of Yduqs, and Mr. Rossano Marques Leandro, CFO and Investor Relations Officer. I would like to hand the floor over to Mr. Eduardo Parente, who will begin the presentation. Please, Mr. Parente, you may proceed.
Thank you very much. Good morning. I hope you are well. The set of results we're going to show here is, well, the stress is consistency. You see with everything starting to improve. We had this trajectory since last year. I think we've had a concentration in much of what we have been telling you. We have a portfolio in the business that has great resilience at difficult times and a slight improvement, a slight advance, especially in the economic financial side, in Classes D, has great impact to our business. What we can see here is just the beginning of it. I'd like to move on to highlights. On the highlights of the first quarter of 2023, we had vis-à-vis last year, 10% increase of net revenue, 21% EBITDA margin growing, 3 percentage points in terms of net income, which is practically twice as much as last year.
A great recovery for us. Much of what you see here is the result of this operating leverage. We had very streamlined distance learning and in person, and this is an impact of what we see. It's not the total recovery, slight recovery that has great impact to the business. We see this in not only this quarter, but also something that we see for the forthcoming quarters with a major improvement. Free cash flow with 42%, BRL 80 billion, allowing us to have over BRL 30 million above last year. This is quite important. I think it's a clear sign of healthy business and a positive development. To the right on the top, this is what I've mentioned, consistency.
All our businesses, practically any number on this presentation has positive evolution at the moment. On premium, we have 15% increase, 23% more in terms of revenue, and 21% in growth of adjusted EBITDA. For digital, we had a recovery from last year. We had less elasticity. We managed to get good recovery here. We're very excited in terms of the second quarter. Net revenue growing and a bit of 41% growth, quite important. On campus, we considered 2022 was quite different. We had intake that was well above competitors, because we resumed beforehand. This is evolution of 14% vis-à-vis 2021. We consider important and a great development, which is average 66% things that we've been telling you for a year, giving major results. Ticket work that we have been carrying out is very important. That actually leads to better result.
The result here, you know every point that we grow in terms of on-campus EBITDA margin has to be celebrated. We have, once again, margin evolution. To the bottom right, we have over 500,000 students on digital learning. Important landmark to us. We've evolved in leverage. We had 196, so cash generation, additional one, and allowed the number to be dropped to 1.74, and the record EBITDA of BRL 400 million last year had been our record. Now we have BRL 480 million in the last quarter, and we have this record of BRL 484 million. Very excited with the improvement we're seeing and the outlook we have ahead in terms of the forthcoming quarters. Moving to page four, premium had consistent growth that we have been showing constantly. Difficult economic times to keep on growing. Moments of slight improvement as we are experiencing another leverage for growth.
Net revenue growing by 23%, medicine growing at least 65% or, well, 16%. Great EBITDA growth. We're at 21%. The number is always two digits, sometimes up, two down, sometimes three. With a margin of about 49%, and we expect this to happen at this business unit. Total student base growing 15%, quite a relevant number. Undergraduate average ticket that we put to be parallel to distance and on campus. The discount for the first year is more relevant, and we understand that this number is the great trend indicator here. Also growing two digits. Very positive news, just as a greater renewal. News of Ibmec is the Faria Lima unit that we've opened this year. We have better numbers than we had in our business plan. Quite positive results in terms of medicine.
The vacancies we had or the seats we had in terms of growth this year, we had 53 additional seats for the first quarter. This green box is what we had in terms of guidance. We had intake with a 12% growth. We had to offset a smaller renewal. This year we had stronger renewal rate, and so this shows the trend here. It's almost as if students, well, was already in here, so we didn't need to have the intake. What matters are new students or freshmen, two-digit growth as we had expected. We mentioned one-digit growth in this sort of NOR base ticket and showing that the variation is different and we are fulfilling our guidance of one digit to all business units. We have seven in medicine, 10 at Ibmec. Moving on to page five, digital learning. We have strong revenue and EBITDA growth.
Revenue growing 23% in undergraduate and EBITDA as a whole growing 40%. Important is evolution of margin from 38% - 43%. I tell you that when we see the midterm, no major changes from 38% - 40%, so we have an expectation of evolution of one or two points this year. This is an important number, and it actually matches everything that we have. It matches our bad debt. This evolution of 6% is not what we should count for the year. We should have a slight evolution in terms of percent point vis-à-vis previous year. A strong intake generates a strong base. We have over 500,000 students in undergraduate lifelong, so over 1 million students and an average ticket of upperclassmen with an evolution of 3%.
This does not have the effect that we had been talking about in the second half, that we were harder in terms of pricing for second half. Those have not completed a year. They go to the space. We have an evolution here of 2 percent points in terms of renewal, and we know the impact of intake, not so good. Generate good renewal, though intake of second half was not so good. We had strong renewal rate, a growth of two digits, as we said, 20% vis-à-vis previous year. The average ticket, and you see NOR on the base is 15% year-over-year, very much positioned to this and discounts that feature a different positioning year-over-year. What we show as an indicator of trend is not the 23, but overall it is a very positive view of our own digital learning.
Moving to on campus, both net revenue and EBITDA moved sideways. We had an evolution from 22% - 24%. A slight drop in the student base. I highlight the 6% in evolution of average ticket, which is very good in terms of year-over-year. When we look at the ensemble of these results, we have premium moving strongly, digital learning with strong recovery, and pricing of on-campus doing quite well, as we have been telling you. We have more results coming from this. This ensemble is quite positive. What we have in terms of guidance, a renewal that is quite good, 1 percent point year-over-year. Intake that I mentioned, higher than 2021.
The average ticket of 4% NOR on total base. Again, the worst indicator of trend vis-à-vis 6%, as we see the undergraduate average ticket. Let me move on. Actually, turn over to Rossano so that he can talk about all the numbers and then back to our results.
Good morning, everyone. Thank you. We are going to talk about our revenue. We had quite relevant growth of NOR year-over-year. This is being driven by performance on premium and distance. This is growing, reaching 6% of total NOR. Shows an expansion of our margin and the resilience of the company for this quarter. We want to show the increase of digital learning with a 50% growth of year-over-year cost and expenses, shows our efficiency and operating discipline. A growth of spending below inflation over the period. We had quite positive result. Bad debt follows an improvement trend over the last quarters, and also our improvement in terms of collection debt has been reaching better numbers year-over-year. In terms of collection, it is important to highlight is the adjustment of our investment in technology in the past years.
It created friendly, efficient platforms that actually results into the satisfaction of students. What we have here in terms of S&M, positive percent of the NOR below what we had previously, but even so, bringing good results in terms of intake. It is possible through more efficient strategy of our campaigns is using the power of our friends throughout the national territory. In terms of cost, we have a lot of efficiency through our processes of operating research, which is a market benchmark. Another important one is leasing. Even with accumulated inflation that is quite high, the line reflects our careful work of space management, negotiation component. We close again, with a smaller number in terms of percent of the revenue. We are working hard in optimizing spaces, and we are seeking to add depth to the scenario of everything.
All of this leads to excellent result of our EBITDA. It is growing 21% in the quarter, exceeding our guidance. As Eduardo mentioned, the EBITDA of BRL 434 million is a history record, and it is important to show our digital margin. So excellence in terms of administration and reduction of bad debt, as we mentioned. Distant learning shows the great operating leverage positions it takes as a reference in terms of actually overcoming challenges and hubs, showing great competitiveness in the business. In terms of on-campus, we have an expansion of margin result of our continuous efficiency effort and our more conservative price policy since last quarter. Premium moves on with stable margin as a reference in this market.
Moving to net income with strong growth, making us very pleased with the results of this quarter, 97% in the reported bit, 67% in adjusted, 62% in adjusted margin, so commented previously. It shows our tax efficiency this well. We have base interest rates that lead to negative result and operating result was the efficiency that we have delivered a very strong number of net income for this quarter. All of this leads us to yet again present on the next slide, management. Well, of cash generation, quite strong. It has grown 42% in the quarter year-over-year, reaching BRL 263 million. Our free cash flow interest had a 37% growth year-over-year in terms of operating result. It resulted from good management of working capital, and it is again, very good. This is a clear good management of our accounts receivable.
As we said in the previous quarter, we believe the strong generation of cash flow is our uniqueness feature, and it actually prepares us to macroeconomics. This leads us to slide 12. We see the benefits of our strategy. We reduce strongly our leverage, reaching a level of 1.34% our adjusted EBITDA. This is important in net debt. It shows the expansion of our EBITDA that led us to this position, and we are increasingly more confident. In the short term, it is important to highlight that we have no debt in 2023. This makes us feel reassured to handle the market smoothly. We follow lines that actually lead us to have cash generation and to reduce the cost of capital. Another highlight on the slide is that we keep on reducing our spread year-over-year.
We proceed on the process of liability management that is quite healthy and cash generation over BRL 1 billion. Now I turn over to Eduardo, who is going to talk about our accomplishments and ESG.
Thank you, Rossano. I hope you have managed to attend our foreign ESG two weeks ago. We had great attendance this day. We launched our sustainability report of it being actually enhanced and supported by PwC, where we have the expansion of the rating by MSCI. We entered the Scope 3 of gas emission, and we have quantified our emissions last year.
We closed the year with over 700,000 people benefited from our extension activities and social projects. The ESG rating, that is a component of the goal of all of us as the senior management at Yduqs. This first quarter has an advance of 41% regarding what we expected to do the whole year. For our final remarks on page 14, we are very proud and happy about the results of the quarter. It is a construction that we have had over the years, and the numbers speak for themselves, moving from half a million students in distance learning or digital learning. Average ticket for upperclassmen evolving for all businesses. We had a quarter with a growth of over 10% of revenue, more than 20% in EBITDA margin growth, important point for our businesses that grow the most.
Those are the businesses that have a margin above our average margin that leads to having a positive position in the system. Net income growing twice as much as we had last year, quite relevant number. All of this generating free cash flow for shareholders positive over BRL 30 million, along with a reduction of net debt, allows us to move to a leverage from 1.96 last year, that was over two, to get to this number 1.74x with an outlook of actually having a trajectory downwards. Looking at the numbers ahead, what we had mentioned to you, 130 - 160 new medicine seats expected to be approved into it. We had 53 in Alagoinhas. We moved it up in the medicine undergraduate student base, expected for. It was 8.0 - 8.2. We exceeded 8.0. We had an outlook for 8,300 students through digital learning intake.
The on-campus is for half year, and premium is also for quarter. When we have a new quarter, it is kind of slow, but we have not felt that. We had a very good number for the second quarter. We have a two-digit number for the intake of the second quarter for distance learning. Very much in the beginning of on-campus for the first quarter, we have very good number here, or positive result of the second quarter. We are comfortable to say that it is going by two digits. We have a trajectory of growth of one digit last quarter, last year. Well, 19% and 21% first quarter this year. We are comfortable to say too that we have two digits for the second quarter. In terms of CapEx, we are just repeating ourselves. We had absolute numbers of BRL 150 million CapEx this year.
We are confident that we will proceed in this number. The long-term CapEx is that we get to 7% or 8% of NOR in the midterm. Well, thank you very much for your trust. We are very excited about what we see ahead. The first quarter usually is a quarter that defines very much what the rest of the year will be like, and it has been quite positive. You know that when we see the cloud in the horizon, we are not embarrassed to talk about that. At the moment, we are very excited regarding what we see ahead for the rest of the year, okay. Thank you very much.
We will now start the Q&A session for investors and analysts. If you wish to ask a question, please press the button, raise your hand, and if your question has been answered, please put your hand down. Our first question comes from Mr. Marcelo Santos from JP Morgan. Your mic is open. Marcelo, your mic is open. Next question is from Mr. Lucas Nagano from Morgan Stanley. Your microphone is open.
Hi, everyone. Good morning. Thank you for taking our questions. We have two questions. The first is regarding dropout and bad debt. Strong volume and intake first quarter, most from DIS with a higher ticket. How do you follow the engagement and dropout? How should this reflect on bad debt and cash flow over the year? Second question is regarding optimization of on-campus. Considering the lower volume, we have a slowdown in the semi intake. Do you think there is more room for reduction of faculty, reducing physical spaces this year?
Hi, Lucas. Good morning. Thank you for your question. Okay a s to dropout and bad debt, what happens on one side, on the side of digital distance learning, we're very strong throughout the course. How does it work? At the end, weekly, we measure elasticity. When we feel elasticity is there, this happened right after elections, then we start outlining strategies as to the pricing. We had elasticity. Like last year, we decided to be more aggressive, and aggressiveness comes from an offer or for the first quarter, different terms. The way we decided in this semester, first and second term for distance learning was to set the price for the whole course. That was quite attractive. We measured that, and this is something we've been asking why we had a student there or not. It's very unlikely that there should be great surprises.
This is a way that students have seen and found interesting to be here. So for digital or distance learning, everything is clear and communicated, something that is important. Once you see greater adição ao DIS, as it happened this semester, we remember that last year we talked a lot about this. So there was smaller adição ao DIS impacts average ticket, and it impacts the average ticket of that semester or that quarter. What we're seeing here were greater adição ao DIS. What does it mean? This is more attractive. People are choosing this more. This is clear that we're being more conservative. Campaigns are not so aggressive. If you have, we have tickets, we have smaller adição ao DIS. So with the long answer to your question, distance learning, well, everything is very clearly communicated. For on-campus, the situation is different.
We communicated things clearly, but unlike distance learning, we held the bar in the midterm price. This leads us to have lower intake. So we look very much at the price of competition, the rationale of discount at the first quarter. We think our courses are better, but it's important for people to be here to have the experience and to get to know the course well. We're super transparent that the midterm price is different and in actually what it is. The smaller intake generates smaller dropout ahead. So we do not have a concern on this. Okay? So we don't think we'll have great issues regarding dropout and bad debt for the second half of the year.
As to more semi space for reduction, I'm going to start here, and if Aroldo wants to add, please do. Well, we are very disciplined regarding what can be done, what cannot be done. And again, within each service of ours, we want to be the best. So it is an effort that is huge of our having competitive price quality, but within that range of services on-campus premium distance learning. We want to be the best there. So this leads us to have price comfort, and this leads us to have better renewal rates and quality as well. And on the other hand, we are always adjusting. So more semi is something that we think is very good. We personally think we should have more semi than we have. If you look at our competitors, they have much more than we do.
We have a product of very good quality. We have professors and classes together, which is not the case of the semi competitors. But sometimes we are missing out some opportunities. When I look at our numbers of more semi, I think we have an opportunity of evolving there. But within campuses, I think we had an optimization in the number of campus within each one of them to optimize spaces. I do not think there will be the same levels as we have seen in previous years. We like to talk about operating leverage, and we think we have a possibility of any recovery that we have here through FIES or not. But we quickly being able to have additional base. I do not think that is gigantic, but our math here a bit of, well, on-campus brings a bit of five or six in distance learning.
So on on-campus. So if we do not have space for that, we will be very frustrated. It is a very long answer to you. Yes, we do have room, not the same dimension as we saw previously. Aroldo, would you like to add?
Yes. Lucas, I think it is a good point, and I think that is our day-to-day here. Eduardo has touched two points, and I would like to touch on the third one. We talk about reduction of intake and impact on the profitability of on-campus. First, he mentioned the intake has been challenging. We have renewal that offset it partly. We have a base that actually is cleaner. This is something that we have seen in the past semesters. We have learned a lot as to how to do it. So, well, real estate management is continuous. We are looking at necessary spaces all the time. We are not settling down, even if we have a smaller intake or greater intake. So for semi, something that we are doing.
Just to add a point, which is how do we deliver this on campus today? We have a lot more data, many more tools to act on the seats in the rooms. Even though the base is smaller, we have data to deliver on campus for those that value it. So we deliver, and we are able to increase the number of the rooms like that. An example of that, we increase on campus in the initial periods when the base is higher, so we can have rooms that are fuller and reduce on campus or presence when students value that less, and we would have smaller classrooms. This ensures the increase in terms of the number of seats taken, even in periods of smaller intake. So when we have presence on campus today.
We have asynchronous digital, and we have asynchronous classes complementing the portfolio of the types of classes that adds to that. When we want to deliver on-campus services for students that value that.
Eduardo, let me just. We got a question from Marcelo in writing. He apologized that he had a problem with the microphone. He asked a question. Second question is, how do we see the opportunity on semi on-campus in this environment? Would you like to answer that?
Semi has been a great success. Semi on-campus, it is complementary to the on-campus. It is on-campus for those that are unable to or cannot afford it. It is the on-campus in which we manage to reduce costs, delivering the attribute of on-campus to students that need it.
Well, semi on-campus is a super opportunity, especially today, that they complement on-campus classrooms. It goes in with the class that is there with the classroom set, and it has on-campus, almost paid by the on-campus students and digital classes that have marginal costs. Over the spirit, semi has been a super lever for our on-campus activities.
Is that it, Eduardo?
That is it. His first question was changes in the competitive and economic environment that allowed an acceleration that was so strong in digital with a higher ticket. The ticket is not higher if we see what we were practicing on distance vis-à-vis the previous one, slightly smaller, especially in the whole cost. We have seen elasticity, and we took advantage of it, and that is what we are doing here in the second quarter.
As I have just mentioned, we are giving guidance of two-digit in the second quarter for the evolution of distance learning. I do not know what has happened. We talk a lot to people in retail and low-income housing. They move hand in hand with similar audiences. Sometimes during the pandemic, we looked very much to them. We learned a lot from them. Now I think it is a bit the opposite. We are a bit ahead. Not ahead in terms of capacity of technology, of economic moment of the cycle. Why it happened, I cannot tell. My reading is that I think the population is more confident. People can have a bit broader planning horizons, and it may be related to elections. If you followed us for a long time, 2018 was very bad in terms of intake, and 2019 was very good with no major changes in the economic scenario.
I empirically looking at it, cannot answer your question. What I know is that actually we have had this elasticity, and we actually took the opportunity, okay? Thank you, Lucas and Marcelo. We have answered your question. Very long answer, almost the size of the presentation.
Thank you very much. Thank you very much for your answer.
Thank you. Our next question comes from Mr. Samuel Alves from BTG Pactual. Your microphone is open.
Hi, good morning. Parente, José Aroldo, everyone. Two questions on my side. The first is on DIS. If you could comment to us representativeness the product had in terms of intake in this cycle, and you are actually open regarding student base. If you could open up in terms of intake per student, if that has been a growth year-over-year. Second question regarding the number of hubs. Well, you've mentioned that you had, or centers, you had an economic financial balance in the number of centers. We noticed that 120 centers have been shut down between first quarter and fourth quarter. More to hear you regarding the reasons for this drop, and if we expect some more stability in this center base over the year. Thank you.
I'm going to turn over to Rossano and Aroldo, who are the experts in terms of your questions.
Good morning, Samuel. How are you doing?
Good.
Thanks for your question. In terms of DIS and intake. Intake, as you've seen, has been strong this quarter. So overall, the first quarters are quarters in which we have greater share of regarding total revenue. So it's been a quarter of good intake and the percentage of revenue of an intake over general or overall revenue growth.
This share of the revenue of intake over total revenue expense. The DIS has not been representative. This does not explain the good results. Adhesion to 2, 3 percentage points last year. And you understand this quite well. Greater adição ao DIS, even if it's small, shows that we had a campaign that was less aggressive grade sign for midterm ticket, as we've been talking about, has been increasingly more conservative. We are less aggressive in the campaigns, in the discounts, and this leads to a small increase in the adição ao DIS. So no doubt we have a higher percentage of share revenue on intake on total revenue in this quarter.
If you have any questions on the impact of DIS to the business, I would think it's a very positive tool for our intake and our cash results reduction in terms of other stuff, and shows that we have a result of cash at the end of the day, shows healthiness of the model. So very relevant to us. An increment of cash flow, 42%, a drop of the amount from last year to this year to now. And you see in our releases we have DIS this quarter is smaller than we had last quarter, last year. Or actually first quarter last year showing health super effective that we have in terms of accounts receivable. Aroldo, you take the second part?
A s to number of centers, this is a good point. We've been planning that for some time. And this is just to make it clear, we closed over 120 centers actually have been replaced. What we've seen in the results is that it seems to have been a correct decision. Those that have been replaced, we've had better results. That's being planned for us to increase the productivity of those centers. So we have a lot of data. What an effective partner is, a good partner, a good place. We decided to shut down those centers since last year and we see the reflection in the intake. And in the looks as if in the first quarter this has had positive impact, those that have been replaced. The expectations for us to end the year a bit higher than last year with more productive centers.
This is our plan. So we have been preparing for that w e are growing a lot and we keep on growing slightly, but working hard on this productivity of our center base. We actually terminated more than 120. We replaced some, and those that have been replaced have had better results. We keep on that over 2,500 at the end of the year.
Let me just add, Samuel. Aroldo has a team that keeps an eye on the profitability of centers and centers that are not profitable cause a problem to us. So we have a weakness point there, and we know that especially in smaller places, the two first that arrive take it. So these terminations are almost all of them based on our initiative so that we have this network of 2,500. They should be 2,500 centers. They should all be healthy and profitable, actually raising the bar of our brand.
So this is our proactive great part of our center model or digital model, digital product. If a center has one student, we have x profitability. So if the center has 1,000, to us it is the same percentage profitability. The great difference is what Eduardo said and how we ensure the profitability of center. We should not stay at a center that reduces profitability. So the center is making money at doing their intake and also student retention work.
Thank you very much, Aroldo, Eduardo, thank you very much. Congratulations and have a good day. Thank you.
Our next question is from Lucca Marquezini, from Itaú BBA. Your microphone is open.
Good morning, everyone. Thank you for taking my question regarding expenses with sales and marketing. You have seen a drop in revenue, but thinking about more difficult macro scenario, should you continue to reduce the number of this expense or is there an efficiency or have you reached a level that from now on it should be stable? If you could tell me a bit regarding the expectation of those line, it will help a lot.
Thank you, Lucca. Marcel, can you answer?
Sure. Lucca, thank you for your question. On the forecast in terms of S&M over the years, we are confident of keeping a level slightly lower than we had last year. So what we have been doing in terms of digitalization, capturing value that has had positive results, and we have managed to capture a great efficiency, especially in intake and distance learning, focusing on priority markets, South and Southeast. This actually raised our media efficiency leveraging, especially on the Estácio brand as a great driver in terms of intake at lower cost. We believe that even in a scenario that is slightly more difficult that may come up, we can continue on this phase, delivering this acquisition cost efficiency. I do not see any negative signs in this regard.
Perfect, Marcel. Thank you.
Thank you, Lucca.
Our next question is from Leandro Bastos from Citi. Your microphone is open.
Hi, everyone. Good morning. On our side, it is one question. It is actually a follow-up on the distance learning ticket results of the quarter. Could you tell me the impact of the DIS addition on ticket and the growth that you have had? I think, actually, you have been bolder. What can you expect in terms of fluctuation of DIS from now on? How can you think about the upperclassmen? How can you think about the trend in terms of ticket over the year?
Thank you, Leandro. I am going to talk about trends, and then Rossano can move on to the DIS aspect. We have an effect that is opposite of what we had seen in the past. What happened in the past? We had smaller tickets in 2019 than we had in 2017 and 2016. 2020 smaller, 2021 even smaller. We had students of high ticket, and we had new students, low ticket. 2022, 2023, with tickets much higher than 2021. Then 2021 students graduate and leave, and we have new groups or new classes coming with high tickets. You have an increase of tickets that are not proportional to what you see in terms of what you see in the previous. Why do we see students over a year as a trend?
This is very important because for a student that is up to a year, sometimes six months, sometimes it sort of slides to a year. Then you start having the discount offer, this with this, without this, and then we have a discount to renew, and the guy has first half with higher tickets. So there is a variation of average ticket. So the number of freshmen is high because while the variation of the average ticket of the company is very much related to the economic time of the semester, the offers we decided to give in the semester. So we see distortions when we look at distance learning. It is growing 15%, if I am not mistaken, NOR on base. Obviously, that is not our reality. We look at it as last year it dropped, and I said it is not reality. No, it is not.
It ends up generating a distortion on that in the midterm. So when you ask what is happening to the Yduqs ticket, it is much healthier. That is what we use internally for you to look at the ticket for those that have gone over the stage of discount and offers. Again, the trend, those numbers should be raised because of the graduation and the students that join in the second half 2022. If we check the ticket, we do not see the student yet of the 2020 that did not drop out is graduating over this year. So we have a positive externality in this mix from now onwards. Rossano on DIS.
Hi, Leandro. I think Eduardo has answered your block of questions. Important point about this, as I mentioned in someone else's question, the percentage of DIS addition has not so much significantly higher than last year. So you would increase your intake on total revenue. So this quarter, the greatest percentage of the intake on the total revenue, and so this generates a higher number. It generated in the past. This increases artificially this ticket. As Eduardo said, we do not like to value this 15% of NOR on base because we look at the upperclassmen that we aim at, and this is permanent ticket. As Eduardo some semester have been telling you that we do not see a natural trend of increasing distance. We have been getting it wrong.
The ticket has been growing without a more conservative price management and adjustment of upperclassmen. And we have been readjusting overall above inflation, and campaigns have been increasingly healthier. It is not the DIS that increase the ticket. It's greater intake, and the intake, as you know, has a great share in terms of this, and this increases the average ticket when you do the simple math of actually dividing total NOR on the base.
Very clear. Thank you. Have a good day.
Our next question is from Marcio Osako from Bradesco BBI. Your microphone is open.
Good morning, everyone. Two questions. The first is regarding margin. You've mentioned that EBITDA margin of distance learning should be 1, 2 points over what was last year, and you should actually talk a bit about the on-campus. You had an increase in the first quarter. You think the margin should be a bit above on on-campus. Second question, if you could talk a bit about income tax. It's been positive in this quarter. If it's been something more specific or if we should expect this line of income tax, in terms of accounting positive from now onwards.
Thank you, Marcio. We do not see in our businesses overall many reasons to change margins in a relevant way. We've been talking a lot about this. On campus, about 20%, distance learning 39%, 40%, and premium about 47%. I've been talking a lot about this because we look at the business structure, and we do not see positives. We see positive things offsetting negative things. And what we see naturally is a trend of mix improvement, because distance and premium grow more than on-campus, have higher margins than our average. This should bring the number up. For this year, we look the way we've budgeted. In the past, we had actually had this forecast.
What's happening with distance learning now is that we had great injection of people at once without the negative effects. Because what is our reasoning on the distance learning margin?
On one hand, I lose because I'm growing in partner centers, and I have a trend of increasing my average carryover that we account for as cost. I have a loss also of ticket that again, Rossano said it quite well. We've been talking about this for four years, and for four years I've been wrong. It hasn't been dropping. And I think the phenomenon is the growth of the market. As it continues growing, we see probably tickets growing. We're very close around inflation. And on the positive side, we see there's great operating leverage. So what do we see now exceptionally? And again, the trend continuing like that, perhaps we find a different level.
On one hand, we have many students joining, paying greater carryovers, but we're generating ticket. This combination makes the operating leverage to have a higher power or higher weight on closing this calculation. What we see here. Well, one, two, again, it's an estimate of ours. We look ahead, maybe we have it, maybe not. And actually we had six points better than this in this quarter. I don't think we won't repeat it, but at least for 2023, the operating leverage will win in terms of negative effects with the growth that we've shown. We had an upload of a document on our website or CVM that we're using this week in New York at the Itaú Conference and the roadshow that Bradesco's organizing, and UBS as well. Apology.
We have a very good presentation that shows that there is a chart that shows that a journalist asked that, and I got a part of it. It's a year in which we had a year that on-campus dropped a lot and distance and premium grew. That was a year that, well, premium moved side and on-campus is moving sideways, and distance and premium is growing. We had positive effect on revenue, EBITDA margin, this growth. I think we have an effect on distance learning and total mix as well. Rossano, I do not remember what the question was, but it was yours. It was on income tax.
On income tax, we have been benefited by an effect of program of tax efficiency of payment of JCP of companies. We had a tax efficiency that was very positive to us. We keep constantly seeking tax efficiencies, which have improvements that can happen over the years. Nothing too significant should be more or less on this level. We are constantly seeking opportunities that bring greater tax efficiency to the business.
Okay. Thank you, Parente and Rossano.
Thank you, Marcio.
The Q&A session is closed. We would like to turn it over to Mr. Eduardo Parente for the company's final remarks.
Well, I would like to thank you for your trust, all of you who have been with us over this hard period. We see the stress of the results is consistency. All the businesses have good news, and the ensemble of good news is each one of our businesses leads us to have an advance that is more. The highlight is the EBITDA. There are lots of things in the ensemble that, well, Marcelo Santos put it quite well in his report.
It is not just the EBITDA, it is what we say about the EBITDA for the next quarter, intake for next quarter. When we look at other things, sometimes we pay less attention to net income. With strong growth regarding last year operating cash flow, especially for shareholders evolving, we are able to reduce our leverage. We are able to. Again, it is the growth of EBITDA with cash generation. I think that it has been worthwhile our making the efforts that we made over the years of keeping lean and making the decisions we made and sort of unblocking things that we have unblocked. We are very excited about what we have ahead. First quarter is very important for the year in terms of intake. That is the highest of the year. I may get numbers a bit wrongly. The 30,000 of intake in distance learning first quarter.
Last year they were about 60. It gives you the dimension of the impact of the first quarter of the whole year. It is above last year, but above what we had is forecast for the year. We are very excited for what we have ahead of us. Thank you very much. Thank you for your trust. Have a look at our presentation that we have on our website, and it is a quite interesting way of our viewing our business. Okay, thank you very much and greetings to all of you.