Hi, good morning, everybody, and welcome to Terveystalo's Q1 2020 conference call and webcast. As usual, our CEO, Ville Iho, and our CFO, Ilkka Laurila, will have the presentation of the results, and we'll follow that with a Q&A. We'll take questions from the phone lines and through the webcast after the presentation. without further ado, I'll give the speech over to Ville.
Good morning from Piazza Terveystalo, Helsinki. Q1 in brief, of course, the big headline is the COVID impact on our business. We will give a fairly detailed flavor on how the impact has been thus far, and then it's easier to also model and discuss and forecast how we see the future going forward. Key takeaways. Here, of course, this COVID response by the government and exceptional measures taken by the government has a basically significant impact on our business in short-term. We can see it especially during last part of Q1 and then during Q2. However, during Q1, still revenue was fairly flat when it comes to corporate and private revenue. The biggest reason actually for the revenue decrease was ending outsourcing contracts on our public business. We are, of course, looking at Q2, how the impact is going to continue.
It's going to have a significant impact still going forward during this quarter. How we have sort of structured our management and plans inside the company, we have clear steps. We see Q2 as a COVID impact quarter and then half two as a recovery already. We are very active in responding to this crisis. We are not victims of this crisis. We are active player. We are helping society, we are helping individuals, we are helping corporates to tackle this crisis and continue as normal living as possible. We have been very active in adjusting our services and ramping up the services needed to tackle this crisis, mainly testing capabilities. Here we have a fairly detailed view on COVID-19 impact on our revenue going quarter by quarter. As said, impact started during latter part of Q1.
Basically, Q1 up until COVID crisis was still on growth path. We were executing according to our plan. Basically overnight when the crisis hit Finland then, of course, the situation changed rapidly. The impact, if you look at the different payer groups, corporate, private, and public. For corporate and private customer groups or payer groups the impact is fairly similar. Non-acute medical care has been scaling down. At the same time, of course, remote services have been scaling up. On public side, the demand has been steady. Service sales have actually increased during this period. As said, we are seeing biggest impact from this crisis during Q2. The data point that we are giving for everybody at this stage is sort of a lockdown revenue run rate, which we say is minus 30% from our top line for corporate and private payer groups.
This is really the lockdown revenue run rate. When the lockdown was still in effect if you look at April, full measures in place, then revenue hit or haircut was -30%. Of course, going forward you can model and forecast how the easing of the measures will then improve our revenues. We are not giving any precise forecast on that one, of course, we say that our revenue development is going to be directly and clearly linked with the easing of the measures hence the consumer behavior. If we look at the mitigation and really the operational impact risks and what we have been doing during the crisis. Everybody is, of course, aware of the mitigation done by government, the protective measures and lockdown measures. Detailed impact in healthcare services, not so widely known.
We have been scaling down on our non-acute care, especially in dental and then nose, throat, and ear surgeries. The consumer behavior has changed due to the fear factor, especially in the capital area, and that has had a clear impact on our revenue. The risk that we have been discussing and contemplating, of course, is that during the Emergency Powers Act by the government, they have mandate to basically take our resources to their use. This risk is really low. We can see it actually based on this period. Utilization rate for healthcare services nationwide is, I would say, record low at this stage. There's no need for anybody to really borrow, steal any resources from our side. We don't see any change in this one.
Our mitigation activities, there have been many, and we have been very active in scaling down, of course, the businesses or the services that are not needed. We have been mitigating our costs as fast as we can. We have been scaling up our remote services. They have multiplied. We have been, I would say, fastest in Finland, scaling up our testing capabilities, and keeping our services on as high level as possible because the need for health and medical services, it has not vanished anywhere. During Q2, the mitigation activities will continue. We can see right now a gradual dismantling of restrictions. We can start ramping up certain services that we scaled down early on, like non-acute dental services to a certain extent. Of course, we are reacting in agile manner to the need of our different customer groups.
We have a special focus in corporate segment because this is the time, really, when we need to normalize operations and behaviors, and working life as much as possible because this is not going to go away anytime soon. Our obligation, basically, is to help corporates to live as normal life as possible. We have a good package in place for testing, tracking, risk mitigation, which by we can help corporates to go on and normalize as far as possible. When it comes to mitigating profitability impact, of course, the weight has been on cost side. We have basically put the brakes on anything total uncritical spending, and we are mitigating personal cost with temporary layoffs. The impact of that one can be seen fully during May, and we started the process so that the impact started kicking in late April.
We cannot see the full impact yet, but we will see during May. We are, of course, looking very closely on our cash flow and liquidity. Our situation is very good due to our measures taken. We have a very good liquidity and also capability to improve the situation if needed. As I said, we are in very firm position with that one. As to our activities, we can be very proud on the fact that we have been the fastest mover and fastest scaler when it comes to testing capabilities. As I mentioned already, we are helping corporates, and we have already many use cases where we are together with the company building a COVID-19 response plan, so that a company can scale up their services and operation as fast as possible. Core of that one is testing capability, tracking capability, and risk analysis done in the companies.
As I said, being the fastest one to come up with a meaningful scale when it comes to virus testing. Yesterday, we announced that we are coming to the market with the globally best available antibody test. That will have a significant impact in ability of this society to tackle this crisis. Revenue split and development during Q1. As said already, fairly flat when it comes to corporate and private payer groups. Early part of the Q1, up until last two weeks of March, we were still on growth path, I said. The impact of COVID-19 made this one flat. Public revenue from outsourcing decreased due to ending outsourcing contracts. As said already, service sales increased to a certain extent. A couple of highlights from more operational side.
The number of remote appointments multiplied to more than 100,000 visits, which is a big hike on that one. We are very well geared to this, if somebody wants to call this one a new normal. Our digital platform is well in place. We can reach customers and professionals with our platform. We are, I would say, one of the best positioned at least in Europe to be ready for truly omni-channel healthcare services and providing that one with good customer experience. We'll see where the new normal will land. Of course, some of this will stick, and one can say that after this crisis, we truly are in omni-channel environment, and it's a positive thing for us due to the fact that we were very early movers and have been investing in this area for a long time already. Impact on our profitability.
Adjusted EBITDA 30% down to EUR 22.9 million. Again, the impact was mainly from the latter part of March. Drivers behind this one, in addition to COVID crisis or in link with COVID crisis was sales mix and heavy investments in digital, which is in a way good and bad. Of course, we have been investing heavily, as I said, on digital. When we go to the omni-channel environment, it's a very positive thing going forward and in long-term, but obviously there's certain burden right now when the revenues are dropping. We have a new proposal for dividends. The earlier one was two times payment, two times EUR 0.13 per share. Now the proposal is one time EUR 0.13 per share. We do have means and we do have reason to pay dividend.
Of course, also our owners are chipping in this crisis, they are scaling down their dividend from last year. Outlook basically for Q2 and onwards. As said, we are giving this one very detailed data point from April. The revenue cut is 30% during full lockdown situation. We are saying, we believe that revenues will improve in line with the lockdown measures being lifted. We are not giving any precise prediction how it will play out. It's fairly straightforward to model that one down. Full lockdown impact 30%. Going forward, revenues will improve as the special measures are being lifted. Public sector as a special case worth mentioning that one it has been fairly steady during the crisis. Service sales have been actually increasing.
There's a potential that the backlog of services not being delivered during this crisis will have a positive impact going forward on our revenues. As I said, the need for healthcare services have not gone down. There's underlying demand and public services. They have scaled down their non-acute services, and we are building queues and we are building backlog. At certain point during H2, most probably, we will see positive signs from that backlog. We are part of the solution when dismantling this backlog and queues. We have said earlier, and updated on our strategy process. We have not basically stopped the process. We have been doing the work as planned. We are, I would say, ready with the analysis, but there are discussions still to be made due to the logistics reasons.
That's why we are not giving detailed information or strategy update just yet, but we are able to do that during the course of month of June. One thing which is certain in our updated strategies is that our mission will remain the same. We are still going to fight for healthier life. There's going to be a lot of focus on individual consumer. We are best geared, I would say, among the healthcare players to really have the data of individual consumer, have digital platform to reach consumer, have the digital platform to have a meaningful dialogue with the consumer. No matter what the system is, what the payer group is, always end user is individual consumer. If we are able to serve him or her well, we will endure and be successful in any system. Now over to Ilkka.
Good morning on my behalf as well. Still a few words of the financial performance during the Q1. Like Ville already explained, our top line and as well as the relative profitability and the absolute profitability slightly declined during the Q1. Here is the slide that we have always shown. There you can see that the EBITDA margin relative to earlier period declined from that 17.9 to 14.8. There's three key drivers on that. First is the decline in the revenue, mostly, like Ville said, deriving from the discontinued outsourcing contracts. Also the impact was so that during the first two and a half months of the quarter, we saw quite steady increase in revenue when it came to private and corporate segment. We were in a quite good speed with those.
Suddenly within the hours, when the top line declined during the last two and a half weeks, we ended up having a situation where the private was basically flat during the Q1 and slight decline even in corporate segment. The second element regarding the profitability is the sales mix impact, which means that like earlier, our relative to earlier periods, our appointments business and sales related to appointments develops better than diagnostics, as an example. What it means that during this kind of crisis, when top line rapidly declines as we know, the most of the specialty care, both in the corporate segment and in the private business, are taken care by private practitioners. If the top line declines, the cost structure for appointments also declines quite straightforward.
When it comes to the diagnostics, which is taken care by our own facilities, the cost structure is not that flexible, and when that declines, that will have impact on the profitability as well. The third element is then regarding the cost structure and here we can actually see more precise impact on that. Here is three circulated numbers there. If we first take the bottom one, now we have taken or shown separately the IT expenses development. You can see that it has increased at 38% year-on-year change. Like I said earlier, it's mainly deriving from when you invest in digitalization. It typically has the rule of thumb that EUR 1 million invested in digitalization will have EUR 200,000, roughly, the maintenance expense level. More you invest in digitalization, more you have the maintenance expenses.
This cost line item only includes the external services or the personal expenses are included in the employee benefit expenses. Also, the impact which we can see, which is the, I would say, global situation that there has been quite a turmoil situation in the global market of the personal protection equipment. That has also been case with us. However, we have very professional own procurement team, so we have been able to supply all necessary protection equipment, and we don't have any scarcity on those. Of course, the consumption of those, as well as the prices, have multiplied, and therefore, even though that the top line declined, the purchase of the materials increased by almost that 9% versus year ago. A few words regarding the balance sheet. As Ville already told, our cash situation is good.
We have liquid assets of that EUR 51 million, as well as we have undrawn facilities, as well as credit limit of EUR 8 million. We have, of course, more capacity to agree additional funding if needed or if we want to further secure the liquidity. When it comes to the net debt situation, you can see that the amount of the net debt is lower than a year ago, declined from EUR 575 to EUR 530, including EUR 173 million of rental liabilities. There you can see what is the net debt requirement from the financial institution. That's obviously significantly lower. The net debt to adjusted EBITDA has developed in such a way that now the multiple is that 3.2. That includes now those IFRS 16 liabilities, and our target is to be below 3.5, like I said earlier.
Still we are below that, although it has slightly increased versus previous quarter. Of course, the main reasoning for that is the decline in the profitability. Regarding the investments, like you can see, we have still slightly increased number when it comes to the total gross CapEx, EUR 46 million up from EUR 45 million. The speed of the increase has decreased considerably, as you can see, from EUR 38 million to EUR 41 million, and EUR 41 million to EUR 45 million, and then only EUR 46 million. Like Ville already explained, one of the mitigating factors has been that we have basically frozen all non-necessary investments or postponed all non-necessary investments, and that had already slight impact for Q1 numbers, but obviously the bigger impact can then be seen in the later quarters. That's only because of the securing cash flow in the short-term.
obviously, in a longer term, we will continue investing in digitalization and other sort of facilities as well. also you can see that the increase in investments, again, derived from the intangible assets, meaning IT and digital investments. I think that's it on my behalf as well, and then we have time for the Q&A.
Thanks, Ilkka and Ville. I think we're ready to take questions from the phone lines.
Okay, thank you. As a reminder, if you wish to ask a question, please press zero one on your telephone keypad. We have the first question come from Panu Laitinmäki from Danske Bank. Please go ahead.
Thank you. I wanted to ask about this backlog of services that are not being delivered, both in your own business and on the public sector. Just to clarify, so you think this will kind of be beneficial for you already in the second half of this year and not next year? If it happens in the second half of this year, do you kind of expect it to lead to year-on-year growth in revenues or just that it will be kind of better in the second half compared to what you see in the first half? Finally, in terms of the public sector backlog clearing and your help in that, what in practice have you seen with the public sector? Have you signed any contracts? Would that be voucher-based services or what is the kind of mechanisms how this will benefit you? Thanks.
Long list of different questions without a pen. Starting from the view regarding the queues, it's really difficult to estimate when that backlog will start to open. It's actually quite impossible to say because it's really dependent on also how the restrictions are developing and what is the situation regarding the epidemic situation and what development regarding the epidemic situation. Because the public sector closes the non-acute care because of the epidemic situation. If the epidemic situations will remain rather stable like it has been nowadays, even though that we are opening the restrictions, then they will most likely also open the non-acute care more. What that will have impact for the private sector, we really don't know because this is quite unique situation.
The only thing that we know for sure is that even this lockdown that has already taken place has lengthened the queues for the public sector non-acute care quite significantly. That's the only thing that we know for sure. It can even out from three different ways, I would say. One is the service voucher which can be seen in our business in public sales. Second is that direct contract with the public sector so that we have a contract regarding the certain amount of the episodes, be it MRI scanning, be it cataract surgeries, et cetera.
The third element, which is most difficult to estimate in this kind of situation, is that how many private people opt out the public queue and comes with their own money, which can then be in our private business and buys the private services because they are not willing to wait any more their hip surgery, as an example, or knee surgery, as an example. That is probably most difficult part and probably actually might be the most significant part, but it's really hard to estimate at the moment. It really depends on, like Ville said, that development of the fear factor as well. Because now, in many cases, people or the private individuals are without no rational reason, they are afraid of coming to healthcare facilities.
How that develops and then it comes to the psychology, and even though I have two master degrees in forest science and in economics, I'm not a psychologist and for that, I can't answer. Maybe there is some psychologist in the lines and can answer how the fear factor develops.
Just to add on that one, there was a question about the examples, if any. Yes, we do have examples when the public side has been directly purchasing services from us during this crisis. It has been testing as a bulk service, but then non-acute surgeries in certain regions as well. There are ways and there are examples already.
Thank you.
Do we have further questions?
Thank you
from the phone lines?
Yes. Our next person is Sami Sarkamies from Nordea Markets. Please go ahead.
Thanks. I have a couple of questions. Firstly, I'd like to get a bit more granularity on sales development for corporate and private segments. You're saying that these were down by 30% in April. Can you say if we are already on an improving trend if you look at the situation on a weekly basis?
Not really, because during the April, the lockdowns were quite stable, and that's the lockdown number. We are only seeing since mid-May the opening of the restrictions.
Yes, of course.
Which, of course, would then ease the situation most likely.
Yes, the Vappu holiday.
most likely the impact of that it's difficult to estimate.
Okay, thanks. Secondly, I would like to understand the impact from the various cost-saving measures that you're outlining for Q2, including layoffs and temporary closures of site units. What kind of savings run rate are you targeting on a monthly level from these measures?
Like earlier, typically we don't target any specific numbers. Like Ville said, we try to adjust our cost structure with the operating environment. It should be taken into account that most of those closures of the units have been related to the demand issue regarding the dental services. That's the key reason for those closures. When the demand and the restrictions regarding the non-acute dental services will even out or will be opened, obviously we will open those facilities as well.
The second element regarding the cost-saving actions is that I think the best way to have granularity on that is that you can see from the interim report from the personnel section, you can see that we completed our negotiations 3rd of April, and at the end of April you can see how many people were laid off as well as temporary laid off, and have your estimate on the impact from those.
It should be taken into account that during the first half of the April, there's a certain notice period before you are able to lay off people and then on the second half of the April, it gradually increases the number of the laid off people, and I think that it's quite stable at the moment and obviously we hope that the trend will improve and we are able to decrease the number of the temporary laid off people. it should also take it into account that like we have seen that our net promoter score has been best ever, and it has been a record high, and that has been also our purpose. we are not cutting costs that dramatically so that we would jeopardize our customer service and our opportunities to serve all our customers in this middle of the crisis and this development.
We want to have open time slot and availability as high as possible and only decrease that capacity which is basically restricted. Therefore, we're not adjusting costs either in a full way during the short period of lockdown. If the situation will continue longer, then we are, of course, ready to do more if needed but I think we all hope that there is no need for that.
Thanks. My final question would be on the public segment where you will benefit from a new contract from Q2 onwards. How does the size of this contract compare against the business that you lost after Q4?
How the size compares. The contracts with the public sector in this kind of situation, it's coming in the service sales, which we have now specified in the interim report. Even though the number of the contract is high, the euro amount per contract is low. It's rather EUR 100,000 per contract than EUR millions per contract. Those are typically quite small contracts, but the number of the contract can be quite high.
I think he was referring to that
Hattula contract.
Regarding that Hattula contract, that is the contract that the Hattula Municipality discontinued with Pihlajalinna. It's the same contract that the Pihlajalinna operated last year. They were not satisfied with the Pihlajalinna service, and they discontinued that contract and we took it over, and I think the cost level of that at the time of the tender was roughly EUR 6 million per year or something like that. six point something.
Okay. Thank you. I don't have any further questions.
Did Ville have something to add on the previous-
Maybe just to add on Ilkka's comment around the cost-saving measures. Just to repeat the fact that at this stage, we are not taking any view on structural changes. If we would do that, then we, of course, would need to take a view on the scenario related to COVID-19. I think the best way to go forward, and that's our choice, is to be flexible. As Ilkka said, we are not, in that sense, taking a firm view on any sort of new normal. We will see H2 as recovery and keeping our flexibility and ability to serve our customers is the key. As Ilkka pointed out, we have been very successful with that one with the NPS at the record level. We are breaking records by the day.
Do we have further questions from the phone lines?
Yes. Our next question is from Oliver Parks from Pinterest. Please go ahead.
Hi. You said that non-necessary investments are postponed. Does this include also acquisitions?
Includes what?
Acquisitions.
Acquisitions.
Acquisitions.
No. I would say that, of course, in this kind of situation, the M&A market typically also freezes, so that both the seller and the buyer quite typically would like to see the impact of the COVID-19 before closing at least any sort of significant acquisitions.
Okay. Thank you.
We have our next question from Alex Gibson from Morgan Stanley.
Hi. Thank you for taking the questions. I just wanted to follow up on two. One, just thinking about the capacity of physicians to recoup pent-up appointments, how do you think about the competitiveness to try to get those physicians to recoup any demand later in the year once things start to open up again? That's my first question, and I'll follow up with a second.
During the Q1 and situation at the moment is such that actually it's been quite interesting to see that still our utilization rates are rather high. The reason for that is that especially when it comes to the private practitioners, the amount they offer for open times is lower, and they also take vacation if possible. When it comes to the second half of the year, I don't believe that the situation has changed that dramatically since the firs t two and a half months of the year.
The only change is that, of course, we continue our own development for the digital tools, especially so that we are better able and our time booking engine, et cetera, in our omnichannel approach, so that we are better able to serve in different kind of situation and optimize the capacity and the offering already during the second half of the year if that kind of positive thing would happen and we will have a high utilization rates there. Just to confirm, we don't see any signs that we wouldn't have the capacity available as needed during the H2s as well.
Okay, great. More on the midterm strategy and the midterm opportunity to make investments, how will this impact your capability to either do M&A, expand organically within the country, or expand abroad, either organically or through M&A? Is this going to delay your strategic thinking midterm? How do you think about your use of capital now?
Well, of course, organic growth has a link to overall demand situation in our payer groups, and that has a clear link then to COVID-19 situation. As to our agility and our thinking around the strategy, this crisis has not changed, basically, our view on way forward. We have a means, of course, we need to adjust the baseline to a certain extent. We have in our strategic thinking, the ways to increase our market share and thus grow organically in relative terms. Also when it comes to M&A, Ilkka said that, of course, these processes might hit some bumps during this crisis. Really our thinking and rationale when it comes to M&A has not changed.
We have a clear view, clear process, how we go about those and whenever suitable opportunity arises, then we are active and we are there, and our capability to execute is still there.
Okay. When do you think you'll be comfortable to communicate that kind of new midterm strategy update that we were expecting from you around this time, maybe a bit later? Is that still going to be delivered before the summer or later in the year? Is this something that we need to look at early 2021?
Well, as I said earlier, we have basically concluded all the analysis needed for our strategy update. We have had couple of discussions already with our board already around this one, but simply the logistics don't allow, let's say, the engagement needed for this type of a final conclusion. What we are looking at right now is that we would be able to conclude the strategy process early June and then be able to inform you in more detail.
Okay. Thank you.
Okay. Thank you. There are no further questions at this time. I'll pass it back to the speaker.
Thank you. We have a few questions through the webcast. First, there was a couple of questions around the public sector sales in Q1 and the impact of the outsourcing agreements that were expired in the end of 2019. You can see the revenue split, including the part of outsourcing on page six, so I won't address that further. As discussed earlier, in the public sales, there will be a new outsourcing contract in the beginning of the second quarter that would have a positive impact on that line. Then we discussed the strategy as well. I won't repeat that question. Then, regarding the corporate business, there's a question from Jutta Rahikainen from SEB. If the Finnish unemployment grows materially in the aftermath of this coronavirus, what's the volume outlook and possible sales mix impact for us?
If I start, Ilkka can continue. Out of the payer groups, Corporate, when it comes to underlying demand, of course, there's a link between underlying demand and unemployment rate or employment rate. We're going to have to wait and see what the impact is going to be for the personal number of people employed. That then is sort of our market base, and it's going to have a certain impact, of course, for the full market size on Corporate segment. Within that market, we will, of course, compete and be competitive and continue to fight for market share. Sales mix in that segment, what kind of services Corporates are buying, I don't think there's any sort of difference between our conclusion right now and earlier. There's, in a way, a mixed bag. Certain companies are buying a price.
They are sticking to very simplified service package, but then the other companies are, in a way, building services and providing services for their personnel, sort of from a business case point of view and performance point of view. We see increase in that one as well.
Yeah. Just shortly adding on that, like we have said earlier that we have seen that it used to be historically when it was quite straight correlation between the sort of employment level and sort of the corporate business and development. It hasn't been that way during the last, say, quarters or even years. Our analysis is that the key reason for that is, first of all, is the reason what Ville explained regarding the sort of the polarization of the customer groups. The second element is that most of the new work in workplaces during the last years have been developed for the small enterprises and for the service sector. Now that sector is under the biggest pressure. It's the service sector and small corporates that are in a most turmoil situation during this crisis.
From that, you can argue that if that would happen so that the unemployment rate would increase through the service sector and through the SMEs in which our market share has been the lowest, it will not have sort of relative straight correlation to our sales. That has been historically when the employment situation has improved. If the sort of the downturn happens to be the same way, most likely the sort of impact would be quite similar during the downturn.
Thanks. I'll take couple of more questions before we run out of time. There's a question from LBBW Asset Management that given our Q1 and our outlook together with our actions to cut CapEx, is it more likely that our net debt at year-end 2020 will be higher or lower versus last year?
We don't give any exact guidance regarding the net debt situation. Like I said, we have postponed investments, so our plan is still the same. We have only postponed those, and we will see then how this sort of situation will even out, and then hopefully we can continue doing all the plans and complete all the plans that we have.
The same person is further asking if we could give some color on what are the additional hygiene measures and changes in processes that we needed to put in place regarding the COVID-19, and if there are any meaningful costs related to that.
Basically, it is fairly straightforward. Ilkka actually already explained the cost hike related to protective gear. Other than that, we have put in place a special sort of cohorts for COVID-19 patients, which are in our biggest units. 30+ units are providing that type of service for COVID-19 patients. If there's a suspicion that a person or patient would have COVID-19, then there are some other more sort of in-service detailed protective measures taken in how the physicians are operating. There are some, what is it, plexis given for service personnel so that they are protected. Fairly straightforward, and you can see the cost impact in our numbers.
Yeah, just adding on that, obviously, those cohorts will have some impact for the personal expenses because you need additional resources for that. Obviously, just adding one more thing, that we have increased the magnitude of the cleaning services as well, and that will have some impact for the cleaning expenses as well.
There's a question regarding the materiality of the new contract starting in April. Could you just repeat the magnitude of the Hattula contract that's beginning?
Between EUR 6 million and EUR 7 million annually.
Can I just-
Yeah
put one sort of data point in for this hygiene and protective measures taken by Terveystalo? Of course, it has been a big headline in many sort of companies and areas, how to protect personnel and also customers. Just one data point. Even though our services and our people are highly exposed to COVID-19, if there's that one out there in any of the regions, we have 8,700 employed people in our payroll. Today, we don't have a single person on sick leave due to the coronavirus. We have one person staying home due to quarantine measures. Just giving a flavor how effective our measures have been thus far.
Thanks. Maybe as a last question regarding the staffing services. Presumably, the pandemic increases the need to support the public sector through the staffing services. Can we comment anything on the margins? Are we currently performing the staffing services in normal margin level?
We don't specify the margin for the staffing services, but those are in a healthy level, I would say so. maybe adding some flavor on that, during the crisis, actually, when public sector also sort of decreases the capacity for non-acute care, that will also have impact for the required staffing services. quite the opposite when they start to open their facilities, then the demand for those staffing services obviously increases. that's the logic of how it typically goes.
Thank you. We don't have any further questions at the time being, so I thank you all for your time, and stay healthy.
Thank you.