Ladies and gentlemen, welcome to Theravesto's 1st Quarter 2019 Results Call and Webcast. As usual, our CEO, Irina Hinenan, and our CFO, Ilka Laverla will go through the results in a short presentation and we'll follow that with a Q And A. We'll take questions through the phone lines and through the webcast as well. Without further ado, I'll let Urya start with the presentation. Thanks.
Thanks, Katya, and good morning all. Welcome to Q1 webcast and, we'll try to split this into the usual routine. So I'll cover a little bit of kind of overall overall sentiment of the business and then we'll let Ilkka to dive in deeper into the details. If you look our Q1, I mean, basically, I think the encouraging and good news is we see strong development, solid development across business areas. And that is of course, I think a result of many of the initiatives that we have been done during past year.
Seeing that that materialize on a kind of a broad scale. This is probably what makes me the most happy about it. Attendo is, so is, of course, significantly increasing our revenue. But I think, I think the key highlight really is that our integration is proceeding as planned. And we are on track to deliver the announced synergies as well as integrating the operations.
We see strong growth in preventative well-being services across the board. And I think this is an area that we have and we will continue to invest in because we so firmly believe that this is one of the areas where we can really lead the kind of consumer centriceness on top of basic healthcare provision. Then Iuka will probably talk much more about IFRS 16. Being being an expert expert for sure compared to me on that, but I think what it does, it does really impact our comparability of the numbers. And I think that's a key thing for Iilka to explain during the call.
As said, Atento is on track, but just to remind everyone, what is the real key driver of having acquired Attendo and having, having, kind of invested into quite large portion of public private. And I think, because without saying that if you look at the Finnish market, there is quite reasonable to assume that public private over time regardless of reforms or regardless of politics will continue to be a growth area. Because we see public health care provision, of course, struggling with financing, efficiency, and kind of many of the societal pressures will actually meet especially on a city community level and having then the expertise of both handling staffing business, outsourcing business as well as then, I would say, classical private healthcare business, we believe builds a combination that allows us to, to cater basically quite unique needs of every hospital district community and the city. That then, of course, broadens our total portfolio offering which then makes us even more, I would say, connected to the entire development of health care. So whichever area of health care developed positively, we will be able to tap into these possibilities.
So, also basically all of these assumptions are more or less verified as we have gone into the integration. I think the best thing of it overall is that we do believe that there is a very similar approach and culture. And I think we can really broaden the career plans for both, attendo, ex, attendo people, ex terrorist, a lot of people. And I mean, going forward to really provide a unique career plans for health care professionals, not only physicians, but actually a broader term of health care professional So we're very, very happy about that integration. We think it's progressing as planned.
And and the big assumptions hold. Of course, attendance then increases our revenue significantly. And if you look at the revenue per customer group, you'll see 36 percent, 6% overall growth from $198,000,000 to $268,000,000 on Q1. Major part of that, that growth naturally goes into the public finance. So that jumping from 1,000,000 to 1,000,000 But we also see growth in private less so in corporate.
But if I then flip on the next page, you'll see that the growth is actually broader than just a tender driven. We see 6% growth overall, excluding Atento, close to 10% on a public, private now basically returning on a growth plan with the 3.7% growth and corporate growing at 6%. And that of course is good news. And I'm particularly pleased about because of the breath of that growth. So seeing regional growth, seeing a customer specific growth is exactly what we always look for.
So many, many sources for revenue growth is of course much more healthier. Profitability continues to increase. If you look at the EBITDA, EBITDA, our EBITDA goes up from adjusted EBITDA, sorry, goes from 25.6to32.4. A healthy, healthy increase. And of course, then continuing despite the Nintendo coming in with somewhat our profitability, we feel confident that our long term targets remain and we'll be able to achieve them on a on a profit year on year, you'll need to recognize basically 2 key drivers of it, which is last year.
There were accrued losses that were basically taken into account a similar period a year ago as well as the now also then we need to accrue for taxes. So these 2 key drivers basically explain for the net profit difference but Yuka will cover that in more detail. Going forward, looking at the market, I mean, we see no material changes in kind of the basic sentiment of health care market and all the fundamentals look steady and good. We see steady demand on corporate and private customers, which of course is our core the business. Last year, we talked quite some of the intense increase clinical and hospital capacity.
I think that kind of capacity growth has stalled. And actually, we saw record high demand numbers seen across the period also last year. Towards their versatile services, we've really worked hard and continue to work hard on making sure that we can we're able to to match supply and demand at any given time, which is of course a function of our scale, digital services and a broad broad physical network. This work has started well, will continue, but that basically means that that we believe that we will be able to to answer for that demand and demand remains strong. So therefore, we see the market fundamentals being very good for us.
So that being postponed is, of course, never a good news for us as society. And we do believe, however, or I do believe that none of that work has been lost. As we will see a new government being formed, the expectation that some of the fundamental, many of the fundamentals will be built upon. So I think the work that has been done toward recreating social healthcare reform in Finland. I think it's not lost at all.
For us in Denver, of course, I do need to always underline that our business is not a function of our reform, but rather we have the capability on answering any need at any specific time. Given the structure of our business, which is a broad offering on public, corporate and private businesses. And so therefore, we can't afford to basically receive practically any shape or return simply, reform simply because we believe that the market's fundamentals are so strong. Output does remained very, very, very steady. I do feel confident.
I'm probably talking a little bit more at the back end, but if I look at the reform and kind of the fundamental of the reform, I would like us to kind of focus the discussion more towards the dynamics of creating a competitive equal high quality marketplace as opposed to only kind of, structures on how do we how do we create geographical structures. And so that I think is one of the last points that I would like to like to bring up many years of health care experience here in Finland and I think having the having the pleasure of being part of several other reforms, I would say that there is one key driver that I think we should all strive towards, which is creating as transparent and comparable workplace and marketplace as possible. Even the work marketplace doesn't really exist in many of the off the discussions. And so why is this so important for health care in particular? Is that it is a very complex industry.
It is a very complex field of work. And therefore, we need to strive for understanding quality drivers, value drivers, price drivers, availability drivers in kind of the whole field of operation. And if I would take one learning from this software reform work that we have been doing for quite some time is really that the key driver is is to create comparability in the marketplace because only then we can start to make informed decisions, be it a buyer, consumer, Corporation Municipality. And, and so we in Diversar then think that that's the only way for to continue to challenge ourselves. And so please do have a look at quality books if you haven't received, but we really think that that's the type of dialogue that we do need to continue, and we need to be the leader of that we will continue to challenge our ourselves on this whole transparency field because I think that's extremely important for the benefit of the entire industry.
Digital will play a big role in that and that's something that in order for us to create a truly digital workplaces to digital surroundings, digital Industries, I think having data having the ability to compare quality, I think it's one of the key drivers and therefore, this whole work on quality measures also ready for a more digital future I believe. And that's the work we then do. And I think it's really about getting the balance right between quality before with operational efficiency, customer centricness, that's the work we do. But I think overall, If you look at what we're trying to explain and strategically drive is really the whole work towards not only health care or sickness care, but actually a more holistic well-being offering, which basically centers around the individual and hopefully empowers the individual thus removing costs and risks are out of the society improving the quality of life. For us, it also means that that it is a new field of operation.
That means that we get to we do broaden our offering. We have done several acquisitions in this field that I think this is an area where we really think that well-being and preventative work in conjunction with high quality healthcare is what kind of triggers the entire system to be more, 360 and holistic. That then together with that is a transparency that I think the society needs is basically the core operation for us. And that's something that I would like to see being more discussed in a public domain as we do these reforms. But enough of that, I think So please take the quality book, but now for the piece that you have been all waiting for, which is the financial outlook.
Yep.
Good morning. On my behalf as well, and, yeah, we'll we'll take 10 closer look on the numbers and the financial proof of Master. First, if you take a look at the EBITDA as well as the adjusted EBITDA numbers. These are now comparable numbers, so we have excluded the impact of IFRS 16, And a couple of things to probably highlight in this number is that first you can see that these are quite well in line with the sort of that we have expected and that we are quite satisfied with our beauty set. Already with the profitability development being 14.2 on adjusted EBITDA level and that will percent on adjusted EBITDA level and, that is, that is assessed quite nicely in line with with our own expectations.
And to be also taken into account that these units is obviously, because after the closing, attendal health care piece is all included for 3 months, And obviously, therefore, the realized signature amount is quite small, yet. Which is included in the realized numbers. Then So a table where you can see the impact of the IFRS 16, just quickly highlighting that the, the biggest impact, obviously, is for the adjusted EBITDA level, but then to further down your call, The impact is probably not that material on adjusted EBITDA. It's only 1,000,000 and further your call, you can see that there is no material impact on those line items. Roughly million increase in assets and liabilities through the IFRS 16 impact and close to $10,000,000 impact on cash flow for the operating activities.
So Torres, Torres are as the key, impacts collected in one table regarding the IFRS 16 changes. Then, obviously, test has been like said it already many times, there's got 2 big events for this quarter versus the year before, Atento and data for 'sixteen. And if you take take a look at now the cost structure and how those changes have impacted in those. You can see that Now as the material into services, which is the variable cost in our business has increased slightly less than the top line. It's actually have been sold at the material and that expense has increased only 4% and the services have increased quite well in line with the actual in line with the top line, increase.
The employee benefit expenses, increased more than the top line, deriving from the fact that, that, that, that, especially the out end of Healthcare business is, is, very much, sort of, personal driven business And, and therefore, it will have, and it has had a big impact on the employee benefit expenses going forward also as well. Then if you break down the operating expenses in two pieces, take auto operating expenses, you can see that it has increased only 4.3%. And even though that you would adjust the IFRS 16 impact back to the premises related expenses, it has increased only 20%. There you can see in the future as well the operating leverage piece, but obviously, for the first quarter, the biggest impact is, is to attend the integration. On this slide, I would like to sort of highlight, what kind of structural changes The Attendal and the increased proportion of the public business will bring to our sort of P and L We have discussed many times in almost all quarters.
We had discussed the, how to espresso into private and corporate segment, how the operating leverage works with our business. Here we would like to highlight that that, basically, as you can see, for the corporate business and for the private business, as well as for the public service business, for the public service sales as well as for the public occupational health care business, which are services that are provided within our own premises. Both are scalable businesses and operating leverage works as described earlier. But if you take the outsourcing business or the staffing business, that is quite typically provided in the network or the units outside our own network. Therefore, in toast businesses, the scalable element is basically the central overheads and as well as the procurement.
And that will have a slightly sort of have will have an impact on the P and L structure and how it will develop going forward. And then we'll have obviously the logic with the outsourcing businesses is different with other businesses that we have. In that business, it's not so much on the top line, but the profitability development as it is not that asset driven and not that scalable element. On the balance sheet, I think there's 2 highlights in there. Obviously, if you call for the comparison period, for the March, or the Q1 2018, that the purchase price are occasion and as well as the goodwill have had big impact as well as the IFRS 16, which I said is roughly SEK 190,000,000 impact on both the assets and the liabilities side.
And that has resulted the leverage ratio showed that that the reported leverage ratio, including all the IFRS numbers, but only including obviously 1 quarter of the P and L impact of the Attendo. Profitability ends up on having 4.6 on the leverage ratio. But for the comparable number for the Q4 numbers is that 3.3, if you would adjust it to be comparable for the previous numbers. And as a reminder, that also includes only 1 quarter of the impact of the of the appendo in the profitability. Obviously, if we would do even some sort of pro form a for Q1 numbers, that will end up having a significantly lower leverage ratio.
And
therefore, we still believe that, we are not worried about our solvency of the leverage ratio and we see that we have room to move, if needed. As always, we also would like to highlight that even though that we have now in the integration phase of the sizable business, We still have been able to increase our operational efforts, which can be seen, and in fact, reflected in the working capital development that we are continuously able if you take the comparison period to be how continuously able to improve the efficiency when it comes to the working capital and therefore improve the cash flow, cash flow also continuously. Regarding the CapEx then, relatively speaking, slightly down, we could take a look at the LTM number versus the revenue, in total, slightly up. Probably highlighting that as you can see, if in Q4 2017, the intangible investments in intangible asset, which is basically investments in digitalization have increased from 1,000,000 to 1,000,000 and assessed and as monetary to deliver, we will continue investing on those, digit valueization related capabilities and therefore, it will also in the future will somewhat increase. Then the cash flow I think 2 messages here.
First is that the cash flow in Q1 was good. You can see, how it developed versus the versus the quarter in 2018. So that the cash at the end of the period is $20,000,000 more than at the beginning of the period versus $11,000,000 increase a year before. And also secondly highlighting the impact of the IFRS 16 for the cash flow statement. If you take a look at the cash flow statement, it will have an impact, $9,800,000 impact on operating cash flow and $9,800,000 impact for the financing, cash flow.
And therefore, that should be also considered when taking a look at those those numbers. That basically concludes the financial performance section, and now I think we have time for the Q And A.
Thanks, Ilkka and Uki. We are ready to take questions. Are there any questions on the phone lines?
Thank The first question comes from the line of Alex Gibson from Morgan Stanley. So
I three main ones here. The first one is around the you mentioned that the decline in physician appointment. Is this a continuation of the trends we saw in the last couple of quarters. Can you highlight or fully explain the reasoning why there was a 4% decline? The second question is around the integration of Attendo.
Could you highlight how that is going and when you see synergies that are going to start kicking in and what synergies run rate will be at the end of the year? And then my third question is also around atendo. What are your expectations for the growth profile for the rest of the year, should we see the run rate continue going forward, or will we see any lost customers as a relation to the acquisition? Thank you.
If I may start at is that the first question was regarding the doctor appointments, the key reason there is, as mentioned, is but there's actually two reasons. There's a high utilization rates. We are still living in a high utilization rates. And secondly, we had quite considerably lower levels of the sort of, influencer and flu season versus year before. It's actually quite nicely in line with the 2017 level, but back at 2018, it was a considerably higher level of of flu and influenza season.
So those are the key 2, 3, 2 key sort of drivers affecting to doctor appointments. Second question was regarding the atendal integration and the synergies, the estimate is still remains the same as earlier. So it's the $5,000,000 is the total sort of amount of synergies, which has been communicated earlier. And as I said, it's progressing as planned. And according to our plans.
And therefore, to sort of to realize the impact is, will be, that 5,000,000 quite close to 12 months after the closing of the transaction. So at the year end, we would estimated to have a almost full impact of possibilities. And the third question was
growth profile. And if I let Ilka brief there a little bit, I can kind of comment a little bit on public business growth profiles. There's one thing to note that is that if we you could essentially split the business into 4 different parts. 1 is staffing business Then you have an outsourced business, the contract business, you have what we would call service sales, which will be public hospitals buying specific services to reduce their queues. And then you have occupational health care, either deals or outsourcing.
And in some parts like staffing, the demand is practically infinite. So it's more a question of how much supply can one get. The second piece which is then the contracted outsourcing businesses. And it's always a function of how much of these tenders and in what shape and form come about But I would say that almost regardless of the shape they come in, we will be highly competitive there I would say in going position is that we will continue to demand and maintain our minimum of our fair share of these tenders. Then service sales, I think, continues actually very steadily.
There are small pieces calling out at all times where we do be it eye clinics or be it some parts of surgery or be it in patients outsourcing. So these are small deals that are there's a large number going at any given time. On occupational health care, there has been basically 3 M and A business deals done and we have 1 or 3. So we do believe that in all of those sectors sectors in terms of demand. However, difficult to predict the exact numbers, I think we are participating in all sectors of those growth and competitive.
And so outlook for that remains remains positive. Last point, sales in outsourcing businesses can be different than driving driving long term profitability. And I think that's also one thing that only looking at sales is may not be 100% indicator So we are very selective on deals that we do. We continue to strike the balance between profitability and and sales in there. But if
Yes. And so starting one comment that obviously for those 3 of those 4 businesses, meaning staffing, services and public occupational health care to sort of the tender processes are significantly faster than when it comes to the outsourced in that business, the tender processes are quite long. It will take typically from 6 to 12 months before after the sort of the, process is ongoing when the vendor service service starts. So those borders are quite long.
Okay, thank you. That's very good color. One final follow-up is, or not really a follow-up, new question, you have 2 forty locations now in your total portfolio quite significantly higher than your nearest competitor. How do think about this portfolio going forward, are you at a stage where you don't need to expand much further? And it or do you is there any areas where you think you could materially add or, consolidate those locations?
All of the above. I think, I mean, I mean, I think the key takeaway is that there are no major gaps in our portfolio in terms of presence. So our footprint covers entire Finland, that does not mean it covers every single community in Finland Therefore, we need to remain one agile tactical if need be equally then consolidate premises at in any given location wherever there is a possibility. I would say the big driver of the physical network is really the amount of public private sales. And then on the other end, how fast digital services centrally provided services will actually start to grow next to physical network.
We do not believe that the physical network would disappear any time soon, but we do firmly believe that digital services centrally provided around the clock services will over time become a significant piece next to the physical offering and to be able to provide these 2 things in such a way that the consumer, the patient can actually choose at any given time, whether there is a digital pathway or a physical way. I think it's more of a value driver and the reason why it's a value driver is not so much cutting physical network, but rather optimizing supply and demand. Which is what we're very focused on.
Yes. So basically, we are more in an optimizing phase when it comes to the network, not so much on expanding phase although we will also expand our services and enter network. The second lien well-being and then talk share. And secondly, it's a good to highlight that the network and the size of the network is exactly at our competitive edge when it comes to the 10 reposises, both in M and A, be it M and A or be it normal sort of, as an example, outsourcing or occupational health care. Because we are able to sort of optimize our network and we don't need to sort of expand our network.
And that's why it favors us.
The next question comes
from from the line of Ronald Lita Meki from Danske Bank. Please go ahead.
Yes, thank you. I have three questions first one is actually a follow-up to the previous one, about the network. Did the clarity on the Sorter reform kind of change anything related to how do you see your unique network, for example, as we know that there won't be the market for sort of centers, do you do you think that you could kind of close down some of the lower margin units and any kind of indication or numbers, how many of the units are unprofitable? That's the first question.
Well, I can take that. No units are unprofitable. With or without slaughter reform, if there would be a nonprofitable unit, we would most likely have closed it already. So we have every unit profitable. The other one is that we did we made 0 investments on sort of reform and in hindsight, I would say that's exactly the choice because one should never make a political bets on building premises, but rather reacting to the decisions because we can always react, I believe, quicker than our public counterpart.
So the sorta decision does not have any impact on our existing net work. The only impact is that there is no need to invest further on facilities, I. E. Sought an upcoming means business as usual and therefore all our plans are basically on track.
Okay. Thank you. The second question is about the organic growth in Q1 which improved from the previous quarters. Can you kind of give more color on what changed? You mentioned that you are happy with the broad based growth, but still kind of what happened in, in, for example, the incorporate business that you achieved 6% growth and it was in the ballpark of 2% in the second half of last year?
Well, I mean, I mean, one thing is that, that the quarters are never brothers or sisters with one another. So there's always quarterly variation in there. And it's always, as you all know, it's extremely difficult for us to get will market data, which we could rely on. So that the time lag for the market data is, is significant, but demand has been very steady. We have I think we have been able to work better in terms of optimizing that demand and matching that demand, which has remained very high.
So I would say our supply situation is we have probably have a stronger grip on that since last year. That's for sure one element that I can see.
And the preventive services have increased as well as the digital services and also, diagnostic services have have also developed quite nicely.
All right. Thank you. My final question is about outsourcing market outlook. You gave similar comments as your peers that given that the SOTA is now failed or postponed, the outsourcing market is likely to pick up. But can you give any kind of more color on that, how many cases do you in the market?
Are you having negotiation with the municipalities? And how soon do you expect that any of this quarter kind of leads to, leads to contracts. And then does this law that is limiting the outsourcing still have impact on this or is it such a kind of non issue for the money spot issues?
Well, I mean, from my point of view, of course, I can't comment on our competitors, numbers or their outlooks. But from my point of view, I would rather say one needs to have a little bit of a caution. As Ilkka already mentioned, the processes are public and quite long. And so before they start and they can, they can often even get, stop or reach or change to different directions. So one should never make very long forecast on those at the moment, I would say the overall sentiment is still more of engaging face.
So there clearly was a period when everybody were waiting for the soda reform to come around that basically everything was kind of in a little bit of a standstill Now I can see people returning to their old roles from moving from the regional roles back into municipality roles looking at their situation in an municipal level realizing that not much has changed for a couple of years, except things could be worse. And so everybody is now looking at what will they do. And so I would say current statuses is active on dialogue basis, but we will most likely need to end up. We'll need to wait until end of summer before we'll seeing anything earliest, being in tender phrases. That will be my, my judgment
on it.
I don't know if you wanna
Yeah. So starting on the like, like I said and like communicated that those will the processes are so long that most line Clithos will not have significant impact for the 2019 numbers. That's for sure.
You.
On keypad?
If we wait a little bit, we'll take some questions from the room in, meanwhile. I think Yuttabakane from
SEB.
A question on the competition and you're saying the slides here that the significant sort of capacity growth is no longer there. But if I phrase it like this, is there actually any capacity growth in the market currently? So that's the first part question on relating to that, have you seen anything changing in competition? I mean, we know the big players, but anything else cooking that we should be aware of, either good or bad things? So that's the first.
And then, well, I'll take that one first.
Minor upgrades on our network. So Mehulan and his, I mean, we all continue to invest in our networks. But I don't see major kind of larger entities being built. From a competitive front, no major shifts in any
like like a case at the Pilarlin announced, like they announced, they will open a new clinic in Vaza. Mahilainen has opened some dental clinics in, in Johan Sohuwaiting, Canada, and some clinics in Michele and, some in brownfield investments in Pori, etcetera. So there's a slight sort of smaller investments, but,
I would classify as normal development of the network. So if you would be the type of situation where we would normally say, Every single town has a little bit of a microcosm on its own. And I think the last year's kind of impact of, I would say, Porjula and Pihle Ali now announcing at the same time quite large number of large entities. I think that was a bit of bit of a shock to the system rather than now. This is more kind of business as usual, I would say, because we continue on on a same rate, renewing our own network.
So Yeah.
We have open new clinic in Wausaka, and, and increased service offering especially in well-being in many, many municipalities and cities.
Okay. And then, I think I'll ask this every quarter. I'll ask it again about the insurance flows and how you're positioned. Of course, Porjula it's now the situation has changed. And I think that's the first part.
Are you are you gaining on that one and anything else?
I mean, I mean, insurance, I think insurance companies changing partnerships and making I would say kind of a strategic and tactical decisions. I think that land scape, I would say I would draw the conclusion that, my old background from fast moving consumer goods or retail, there's very similar behavior. So I would I would still expect changes to happen and new partnerships being formed and new negotiations being had. So I think the insurance situation remains relatively fluid all the time. And I think our solution to it is we seek to be partners with everyone.
We seek to develop our digital services our network. And with that, we think we remain competitive in that situation, which means that we'll be able to absorb changes in relationships relative changes. But as I think Yoko already said, there is one thing that nobody can offer, which is the extent of physical network. And I think that act from a financial point of view as a little bit of a kind of a barrier or a buffer which means that we continue to have constructive dialogue with all to some shape or form.
Okay. And then the last one on my behalf, on M And A, is it fair to assume that this year you will digest the tender deal and no larger acquisitions are in the cards?
Well, Attendo is, it requires a piece of work as with all. Having said that, if as and if there are movement in the market, we will continue to participate in practically everything, then we look at each case on its own merits. And we have the financial capability if we so choose. So I think the discussion is case by case.
Case by case, up tender integration, it looks pretty tough. It's not restricted, restricted, us to move.
And is there movement in the market? I mean, potential targets?
Always in health care.
All right. Thank you.
Okay, thanks. Samus Anika Mess, Northern Markets. I have two questions. Firstly, a follow-up question to earlier discussion regarding improved growth rates at private and corporate segments. You did provide some color I would ask, are you aware of any headwinds that would sort of prevent you from maintaining the Q1 growth rates during the remainder of the year?
I would say overall, I mean, just kind of the overall sentiment, if we look back, if we look forward, it's extremely difficult to predict the entire market growth. And of course, the larger we become, the more connected we are on the overall growth of the market. And that remains a little bit of a mystery at any given time. Having said that, I think where I didn't have high confidence is our ability to perform in the real relative kind of relative shape of the market. So if the market is growing, I believe we will always step into the growth equal to our fair share.
Rather if I look back, I think we have over performed the market in the past past years. And I don't see any reason why that momentum would would change. Because at the end of the day, you know, we believe in our strategy on broader offer we believe in our strategy of investing into digital offering, we believe in our strategy in investing into well-being and prevention And all of those things, I think, enrich our total offering, which we believe, makes a stronger win to customers, to consumers, municipalities, make their choices on who do they work with. And so we remain confident that we will continue to grow at the rate or higher rate than the market, but market is always a question mark. And that's unfortunately.
Yes. There's obviously always quarterly variation regulations and clauses
and red days, all these kind of
things, but that's for everyone. Yes, in both ways. And one thing to know that there is a one working day technical thing to notice that there is one working day less in Q2 than before.
Yes. And then second question, would you be able to provide some color on profit contribution of Atento in Q1 that did you have a further margin progression at your own business and And then what was the contribution
from Attendo in Q1? Attendo comes in from starting point with the lower
margin and
And normally, if you take any past performance, you know, if again, then if, if, if, if,
if, if, if, if, if, if, if, if, if,
if, if, if, if, if, if, if, if, if, give more light, but normally, these 1st months are kind of the difficult months of the integration. And so I think the mix will change, but overall, we will need to continue to drive efficiency out of our existing business and some of the growth coming out of Atento. So we believe that we can continue to deliver the develop our total margin despite Atento being lower. In going point of view. Then the question is how will we be able to develop Atento mix because Atento has a broader mix in terms of profit than we do in our existing business.
They are very profitable and not so profitable cases. And so it's really how do we manage the mix going forward, but that's
Yes. On the aggregate level, I would say there is no material differences versus the sort of the the plan, in one plan, yes. That's obviously there's always variances between different sort of business areas, but nothing sort of sort of that matter would have an impact on the sort of the plan and our business going forward in a longer term.
Maybe a follow-up still we think about the old Terrace dollar business, you did have quite nice growth in Q1. Did you witness like, further margin progression because of that in Q1. Obviously, always, as
I said, and as our operating leverage also works, that obviously when the top line grows and when it comes comes from the from either the visits
or if the price increases, it will have a positive
impact on the margins as well.
I think their side comment or what I think you're trying to break down is it is true that our existing business or historical business and attend those business work with slightly different gearing and logic. And it's a little bit
difficult to forecast how that
will go forward because they have somewhat different rules in terms of scalability. But overall, we still believe that scale gives us the advantage. So So for us, it's worth growing because we're able to drive efficiency out of the entire system. Thank you.
Do we have any further questions through the phone lines?
There are currently no questions from the phone lines.
Thanks. We have no further questions from the room. So we thank you for your time.