Good afternoon, everyone. On behalf of HKBN Limited, thank you all for joining the Group's 2024 Annual Results Investor Presentation. Today's presentation and Q&A session will be conducted in English. The management will present the business performance of Enterprise Solutions and Residential Solutions, as well as the financial performance of the year 2024, followed by a Q&A session. Now, may I invite Co-Owner, Executive Vice Chairman, and Group CEO, William, to walk us through the Group's overall performance in 2024. William, please.
Thank you. Thank you. Thank you for joining us. It is an exciting moment for me to share with you our results. Before that, I really want to take this opportunity to thank all our talents in Hong Kong and Guangzhou or somewhere else who put much effort into helping us to deliver a result which I myself regret it as deep as this is the result. Of course, thank you for all of your support to us. Let's look at the details. Solid performance. If you look at the revenue, basically it's like flat or year-on-year minus 1%, and the EBITDA is great. Second half versus last second half is an increase of 12%. Year-on-year is an increase of 6%, excluding the handset revenue. So, this is like a similar benchmark of another player in the market. Then the AFF also increased by 27% year-on-year.
Dividends: HKD 0.315 full year, representing around like 10% yield on our share. So this is the efforts from all our good teamwork. Enterprise. Whatever benchmark areas, it is green, green, green, green. Revenue increased by 1%, and then backlog or booking, 15%, 9% increase. And then enterprise customers have over half also increased 1%. And here I want to, I think the words are too small, but I want to repeat. Hong Kong government, OFCA's number, the last 12 months, or do not exactly our 12 months, the market's enterprise customers in fact decreased by 5%, but we increased by 1%. So even though the economy is not good, our team, enterprise team, doing very good. Okay, this is the driving force behind how we deliver higher revenue, higher GP, or higher cash or EBITDA, whatever. It is because of our ICT strategy.
We did spend, I would say, a couple of years to integrate our SI and telecom business together. We did face some difficulties, but I will say starting from six or seven months ago, we started to harvest from our hard work of integrating both areas together such that we have much more better services and also products for different categories of customers, no matter they are large enterprise, mid, or SME. Large enterprises, we have like project basis, high margin, long-time hard work on that, but on that, because of our increase of popularity, more people coming to us, take cloud as an example, more cloud service providers come to us and want us to bundle their cloud service into our services to our customers, so now we have like at least six different clouds to meet the market demand of multiple clouds for the enterprise customers.
For the mid or SME customers, very simple, scalable 10 solutions for us to bundle i.e. connectivity plus ICT bundle together to ourselves at scale. Then for the right-hand side, all those green numbers, you will see that it helps us on ABU, on the customer number. Also, what I want to highlight is the very small one, what we call IT-as-a-Service Token. I believe we are the first one who offered this bundle in our service to our customers on subscription basis. Nowadays, ask yourself, ask your companies, ask your IT department, every company, no matter big or small, they're lacking IT talents. They're lacking IT resources. But we have a whole bunch of professional SI or IT talents in our company that can serve them on need basis.
They basically buy tokens from us on monthly subscription fee, i.e., they pay us monthly fee, which includes a certain hours of IT needs that they can come to us, and then we can offer to them. So, I will say on subscription basis, this is becoming more popular. And we also explore the possibility and quickly come to the decision of working with Lenovo such that very soon we have a device as a service. So whatever Lenovo products you want, we bundle together trust customers' subscription basis. That is where we are to do differently as competitive edge over our competitors. This page is important. I think starting from this time, next time we will also present this page similar. Why? Because this is telling you how we are successfully executing our ICT strategy by cross-selling products to the telecom area, the customers, and also the ICT SI customers.
That means within our 98,000 customers, roughly 50% of them, five-zero, are using both of our services in a bundled way. On that, it increased the stickiness of our customers. It enhanced the image of our professionalism in the eyes of their IT heads, including those CIOs, Chief Information Officers, such that we can deliver professional service on the complicated SI or ICT projects. Then they're willing to give the very simple dumb pipe telecom asset service, which for us are having 70% GP or margin on that. So our strategy is very simple. Go in, the right-hand side is the entry tickets with the SI, and then over time, left-hand side is getting the high margin telecom business from them. With the share of wallet, that is the way we go for our business before, like six months or 12 months ago.
Today, I think we tell you how we harvest. If you take today as a snapshot, it is 50%. I believe this 50% will increase more and more. Six months later, it won't be 50%. It may be 60% or 65% because when we go to our customers, we offer total solutions on that, always bundled together. When we fight with our competitors, we are not fighting on the products. They can also have the same ICT SI products or service. They also have the same fiber, but they have siloed organizations. Those two teams don't work together, but we are one team. That's why you will see the green color of 15% increase on our backlog from HKD 4.1 billion in financial year 2023 to HKD 4.8 billion in financial year 2024.
And this backlog, you just look at those circles, you can simply calculate that 60% or more than half of them are high-margin telecom products. Residential service. Last time I described them as a cash cow. So, this cash cow continues to contribute. The revenue dropped by 2%. Here, let me elaborate a little bit. We do have two mobile operators being our reseller. But in our view, they are not giving positive value to us. So we are just defocusing their contributions such that the revenue dropped, I would say, majority because of this reason. We defocused these two resellers, and we focused more on our own channels, no matter if it is a person-to-person or a digital platform. ABU continued to increase, and then the subscriptions also increased.
Last time, people asked us, "Will you continue to drop in your subscribers?" And we already said it stopped, no matter in residential or in the enterprise SME. Now the number speaks for itself. ABU, average revenue per user. When we renew, when we acquire new customers, it's always at a higher price with more bundled value to the customers. That is where we are and how we do our business. And I like to repeat that in our residential markets, we don't look at ABU only because it is mainly focused on the fixed broadband. We look at average revenue per household because we add more values to our household customers with just slightly higher monthly fee. Then they will come to us for all the services, including the roaming SIM card, including the household insurance, including the healthcare from Bowtie, including different OTT contents.
I won't say every month, but I will say every quarter, we will have new services bundled in our residential market. All this stuff together, when I say bundle, it's a bundle in one monthly fee. So it reduced our churn rate. Our churn rate is still below 1% per month in the residential markets for financial year 2024, and I believe it is performing like a powerhouse or better than the competitors in the market. This is a photo I want to highlight that I myself went to Guangzhou to visit our team on the mobile service, or selling the roaming SIM card because this is one of the new revenue streams that we want to highlight. We will increase more manpower, no matter if it's physical or electronic or digital, because we are not mobile operators. That's why we don't have any concern on internal cannibalization.
We can always price very aggressively on the roaming SIM card. Whatever area you mention, China, APEC, whatever, we will be very aggressive. And on the roaming SIM card itself, it will contribute additional revenue to us. And again, we don't look at this small contribution like maybe HKD 10 million or HKD 20 million. It's peanuts when compared with the bundled FTNS, fixed telecom network services. That is our own infrastructure service, sort of like something similar to sunk cost. That is how we increase the average revenue per household. And I believe our competitors, they will copy very soon. Okay, this is something that we will launch tomorrow, but let you have some preview.
Don't repeat anything too much, but for the test kit to test if you have any virus or whatever, when you go out to the shops, to the pharmacies, usually they have different products ranging from HKD 60-HKD 600. But we are talking about HKD 40 per month for two times, including delivery to your home. So we will have more partners. They come to us, want us to bundle to our bigger and bigger household base. That's where we are on the residential service. That's why I call them cash cow. Network. I like to spend some time on the network. We HKBN stands for Hong Kong Broadband Network. So we must be leader in Hong Kong. We must be leader in broadband. We must be leader in our network. That's why this leadership must be sustainable and continue.
Back to year 2005, we were the one in the world to launch 1 GB broadband speed. Then year 2023, we were the first in the world to have Dual Guarantee. Not only have this money-back guarantee on speed, but also on latency. That's high speed, low latency, money-back guarantee. As of today, our competitors are not able to copy. But we stand here proud of our service and the capability to deliver this money-back Dual Guarantee. And now, if you can recall six months ago in interim, we shared with you that we partnered with Nokia to start building our network to be able to provide up 25 GB broadband speed. So by coincidence or with purpose, the upgrade completed last week. So now in our network, we are fully able to sell, promote, and install up 25 GB broadband speed to our customers.
This is important. Important in the sense that we do have a window over our competitors because our competitors are mainly using one provider on these network equipments, and we are using two, one plus Nokia. So it's during tough times that good partners can get together. With their support, we are able to start selling. Starting from, if you're talking about 2.5 GB or above, starting from HKD 199 per month. We are now selling. You can go to our websites and check. Why we are so excited or I spent a few PowerPoints to show you is that this is OFCA, Hong Kong regulator's number. Talking about high-speed users, the portion is increasing. But OFCA is Hong Kong government a little bit behind when compared with us as the market leader.
We are talking about 2.5 GB or above, but they grade 1 GB or above as high speed. But even if 1 GB or above is high speed, you can see that residential market, about 70% are 1 GB or above. Enterprise market, about 15% 1 GB or above. But we have 2.5 to 25 to upsell to this huge base. When we have this, our competitors mainly are only selling up to 10. So, from 10-25, we have a window of around 12 to 15 months to outperform our competitors in both residential and enterprise markets on this core high-margin business. So again, this is the number from OFCA, increased by 8% or 7% compared with one year ago. So, it is an updated benchmark between us and the other players. We have five green techs. They have less.
I believe this competitive edge on higher speed, lower latency will be our unique edge at least over coming 12 or 15 months. And then some of them, or maybe only one of them can catch up. So, seeing is believing. Today, we want to do a demonstration from 25G supplied by our good partner, Nokia, and our CTO, Chief Technology Officer, Danny. Danny, over to you to do a short demo.
Thank you, Chu Kwong .
Thank you.
So, I'm Danny Li. I'm the Co-Owner and Chief Technology Officer of HKBN Group. So today, I will do a few demos of showing out our 25G GigaFast broadband. Before we do that, let's picture this. Okay? Let's picture this. When you're driving on the right, on your left side, it is a one-lane highway. Okay? On your right side, you will have a 25-lane highway. And the one-lane highway, your road can only run at 10 km/h. But on the 25-lane highway, you can run 250 km/h, which way you will choose. This is exactly our 25G GigaFast broadband. That's what it is. So back to reality. Let's do a real demo for you. So, for example, you have shot a video, and you want to share it to your colleagues or your friend. All right?
So what you can do, I have prepared an 11 GB, okay, gigabyte of video file. And let's see how long it takes to download it. In order to do that, I need your help. Okay? Let's count together and see how long does it take on the 25 GB and 1 GB line. On your right is, of course, it's 25 GB. On the left is 1 GB. Let's start. Let's count together. One, two, three, four, five. Done. And this is only 7% on the 1 GB . Okay? So, let's leave it. Thank you. Let's leave it together and see what we have downloaded here. All right? Let's see what we have downloaded here on the 25 GB. It's an 11 GB, yeah? 11 GB. One byte is 8 bits. Okay? So let's open it and see. It is an 8K high-definition video. And let's run a bit.
The picture is so vivid, right? And that's because of the time, all right? Sorry, I want to show you the whole thing. But because of the time, let's show it in the middle, 21, and show it to the last, right? Around like 47 minutes. This is a 2:49 minutes high-definition 8K video download in five seconds. All right? Okay. Maybe you have some photo album to share as well. Let's do our photo album. I have a 5 GB photo album here. And let's see how long it takes to download the 5 GB photo album. And this time, I don't need your help to count. It's done. And here, it's only like 60%, maybe 70%, all right? So let's see what is inside. 5 GB photos. Let's open it. Okay. It's right here.
And this is a raw file, 80 MB per files. And we can download in 2 seconds for almost 100 photos like this. All right? Maybe I'll show a bit more of our handsome vice chairman and our CFO as well. Okay. This is finally done. After I show you the video download, I show you the photo downloads, right? It's already done. And you can see this. This is so powerful on the 25 GB line, broadband line. I want to show you the power of this, of our 25G GigaFast broadband, and also the convenience that it can bring to our work and our life. Thank you.
Thank you, Danny. Apart from real-time on-site demonstration for the feeling of seeing is believing, let's also hear customers' voice. 港客科技拥有一支由资深安全专家和工程师组成的专业团队，同时港客也是中国领先的网络安全供应商，启明星辰是香港以至海外市场的独家总代理，为我们的企业客户提供一站式的网络安全服务。香港宽频25G宽频服务的卓越速度和稳定性，可以显著提升我们的运营效率，引入更加高速可靠的网络连接服务，可以令我们公司显著地提升我们的交付能力，更加快速地回应客户需求，加强对外协助。我们提供的网络安全服务横跨包括云端、应用、AI赋能，以至访问和身份管理，高速上下载和低时延反应，有助于我们时刻运筹帷幄，迅速应对市场。提升网速为我们探索新技术、完善产品提供良好的契机。自香港宽频推出25G宽频服务，港客有幸成为首批客户之一，走在创科时代尖端，非常荣幸. It's good that we have a customer or one of the customers who are paying us and also sending our praises. So, Derek, your turn.
Thank you. Thank you. Good afternoon. Today, I'm actually very pleased to present the financial performances of Hong Kong Broadband Network to you. Let's take a look at the second half of our performances. Overall, very solid performances. In the second half, we delivered HKD 1.2 billion EBITDA, which represented 11% year-over-year growth. As a percentage of revenue, that is like 25%, 26% of revenue. It's a very significant undertaking. Overall, the economy is still very challenging, especially under such a high interest rate environment. But even that, not only are we able to recover our profitability positions, we're delivering profitability positions.
Our AFF also increased from a year-over-year perspective. AFF in the second half increased like 25%, 26%. And when we're looking at the full-year performances, it's no doubt that the overall handset and also the computing product still remain very challenging environments. And yet, our core businesses protected and sustained our performances. When we look at our full-year performances, FY24, we delivered like a HKD 2.4 billion, representing a 6% year-over-year growth when we excluded the handset. Overall, it's a very solid performance. When we're looking at our enterprise solutions, we deliver stable performances, especially on our FTNS businesses.
When we look at our booking, our new order booking, William touched on, basically is a 9% year-over-year increase. Within that 9% year-over-year increase, our FTNS, the Fixed Telecommunications Network Services, the most profitable businesses, actually grew four times quicker than the rest of the businesses. It's a very strong position helping us. Then on our system integrations and ICT businesses, we continue to gain good momentum, not only in the Hong Kong market, but also in China and the Greater Bay Area. We secured about like 8%-10% growth in that territory. On our residential businesses, we continue to perform very stable performances. Our OTT Infinite-play delivers good results. Overall, William touched on, we have a slight negative growth on our overall revenue. Our focus is to focus on our own core subscriptions, direct subscriptions, because that sustains our performances.
Our strategy right now is to slow down on our resale businesses, so that is actually a planned execution that actually helps improve our overall profitability. In terms of our operation, our OpEx, our productivities, it has improved year-over-year by 13%. When we look at our efficiency metrics, it improved from 21% to 18%. Most of this is not a one-time cut. It's sustainable transformations from adopting digital solutions by optimizing our delivery and also our very strong sales executions. A lot of you are asking, there is a significant improvement in our second half. These are the primary reasons driving behind the reason, and a lot of these are sustainable. We continue to see the benefit in this upcoming year. Hong Kong Broadband Network generated very strong cash flow. Compared to our EBITDA, our cash conversions are converting at about like 96%, 97%, so what does that really mean?
Every single dollar EBITDA that we earn and take home, we're able to convert at like HKD 0.97, HKD 0.96 into cash conversions. Cash on hand increases by 20% to HKD 1.2 billion. We are deleveraging. We are deleveraging. A year ago, our net leverage ratio is at 5.12, and then creeping up to 5.33 after the first half at a much higher level than we like. And when we finish the year, exit the year, we are deleveraging down and improved to 4.93. Deleveraging and also growing the business, improving the EBITDA are the top of our priorities.
And we continue to make very strong progress in those fronts. In the end, we're wrapping up. It's a strong performance. We're generating cash flow. We continue to convert cash. We continue to focus on our deleveraging. We're making good progress, and we want to continue to focus on that. And we are continuing to increase our EBITDA. Overall, we feel that we're making good progress and a solid performance for the second half.
Thank you. So if some of you who know us well, go back, look at the webcast six months ago in the Q&A section of the interim. The last answer to the last question is about what Derek and I are focusing on, what we are doing as Group CEO and CFO. And my answer is EBITDA and cash flow. 24 hours, even making us wake up in the middle of the night, it is cash flow and EBITDA. And today, we delivered. Let me speak again. Hong Kong English, we delivered. Cash flow and EBITDA. That helped our deleveraging. And we will continue, not only past tense, future tense, we will continue. One page shared about ESG.
Again, we are better than all the other players in our industry. Consecutively, three years to five years, getting AAA or AA plus above all the other players. And in ESG, we have an ESG committee at board level, very serious on that. We have investment of money and manpower to make this really work. Not only taking the box per regulator's requirement, but really want to contribute from environment, social, and governance areas. But having said that, you guys know now ESG is sort of a must when tech companies choosing their vendors. They will ask, "Where is your ESG? Where are you? Are you past credit or distinction?" And then they will give assessment in the tender exercise. And I think this has been helping us, and will also continue to help us in our business. So ESG for me, it is not only environment, social, or governance.
It is enterprise solutions growth because of good ESG benchmark over the others, so very simple. The improvement in cash flow, the improvement in EBITDA, and then deleveraging, is it sustainable? Basically, our revenue growth. OFCA's number talking about the demand for higher bandwidth. It supports us in building the 25G network ahead of other players. Our industry, we recession resistance. Even the economy's tough, enterprises, households still need fixed broadband or even much higher, much faster broadband with lower latency. And we, unlike other utilities like water or electricity, you can use less and pay less, but we charge you a fixed rate per month with 24 months or above. So this income is sort of like guaranteed pocket, and then we offer bundles in both enterprise and also residential, so basically, when people compare, they will notice that we offer much better value for money on both markets.
And last one, very free competition. As I mentioned, while we are a strong number two, strong number two is not talking. This number two is on the offensive. We can always eat into the lunch of our competitors, no matter the incumbents or the distant number three or four. So that is where we are on our confidence. That is how these four areas support our upbeat status towards our growth. So from strong to stronger, I want to introduce our President and Group COO, Denis, to come out and share with you how he looks at us. Denis.
I'm very excited to join HKBN. This is my fourth week of joining. If you look at the slogan, "Performance Deliver," and if you look at the demo that we have 25G at least for 12 to 18 months above and beyond our competitor, we have a lot to do. There's one word that I want you to remember: GigaFast. You will see the GigaFast in the next few weeks of what we are doing as a marketing launch. We will continue to be performance delivered. Thank you.
Thank you, Denis. Thank you, management, for the very detailed presentation. Let's move on to our Q&A session. For all you investors here with us today, whether in person or joining through the webcast, feel free to ask any questions you have. We'll start with a question from the floor. We'll take a question from online participants. After that, we'll switch it up and go back and forth. If you're here in person, just raise your hand, and our team will bring the microphone over to you. And please let us know your name and the company you represent. And for those joining via the webcast, simply type your questions in the Q&A box, and we'll make sure to read it out loud so everyone knows your question. So may I invite the first question from the floor, please? Yes, over there.
Thank you for the opportunity to ask a question. My name is Sara from UBS.
Hi, Sara.
Hi, Sara.
Hi. I have one question on the enterprise business. If I remember correctly, our backlog has been growing much faster than revenue for more than a year. So I'm just wondering, when shall we expect the revenue growth to eventually catch up with backlog? Or in other words, how long will it take for the current backlog to be translated into revenue? Thank you.
I believe the time from order to revenue or to GP and EBITDA will be much shorter. Because over the last, I would say, six or seven months, one of the main focuses for the whole organization is on improvement of GP on both enterprise telecom products, services, SI ICT areas, and also residential areas. So we have many, many initiatives on cost control, and we have many, many initiatives on revenue increase. I would say maybe more than half of them, you will see the full year impact in coming years and in a shorter time. Okay?
So Sara, if you notice for the second half, we actually have very strong contributions on the EBITDA growth, 11%. And basically, we actually have fine-tuned our executions. The team actually has done quite a bit of work. As I touched on, we are actually having more digital transformations, delivery, and also sales executions. So allow us to be able to deliver a lot stronger results in the finance area. So we are actually, you can see that part of the EBITDA growth is as a result of that.
Thank you, management. So the first question from the webcast is that, "What is your strategic plan to drive further growth?" Management, please.
I think first, we continue to increase our more product offerings, source more products and services that will add value to both enterprise and residential customers, but just add a slight increase of the monthly fee to our customers. So we believe that is on the right track. And on that, we do increase our human resources, i.e., more leaders. With Denis joining us— with Denis , there will be more people joining us. Tomorrow, go and read the newspaper. We will have a press release for another doctor joining us. We have so many doctors. We are upgrading our human resources pool. It's talking about execution, execution, execution. When others are talking about execution, we are not walking the talk. We are running the talk.
Thank you. Any questions from the floor, please? Okay, we got another question from online. It's actually from Scott of Reds un Group and Casey Lee from MAP Capital. They're asking about the CapEx. Can you please talk about the CapEx and layout plan in 2025? Can you explain why your CapEx dropped quite a lot? What is CapEx likely to be in this year?
So in terms of the CapEx, this year, there's a little bit of the timing differences. And there are also, we have been working with our strategic vendor to allow us to have a very strong payment term. So in terms of the FY25, we will continue to invest. We will continue to invest in the right area, be selective. There are areas that we will dial down the investment, but there are areas we will continue to invest. So it should be back to a normal level, our normal investment level on our CapEx.
Thank you. May I invite next question, please? Yes, from the floor. Tam, please.
Thanks, management for the question. And congratulations on the very strong result. I just have one question on the refinancing. So we have two loans due by the end of next year. I just want to have an update on if we have any color on the refinancing progress or—
You answered, but let's remember it's green color.
So the first syndicate due in November 2025. The second syndicate due in April 2026. So make sure we get the maturity date right. We have been working very closely with our relationship bankers. Many of them actually in this room. So we are getting ourselves ready. Everything is actually well planned according to our timeline. We managed to get very strong support from a lot of our relationship banks. Everything under good progress. And we feel pretty good, very positive about the refinancing exercise and the mandate.
Thank you. Next question is from Casey Lee again from MAP Capital Limited. So you mentioned that your gearing went down. Your shareholders' funds fell from HKD 3 billion to 2.5 billion, but your bank borrowings did not seem to have gone down. So could you further explain your gearing situation, please?
So if you look at the net leverage, there are many different metrics, right? On the gearing, gearing actually slightly increases, but I actually have more cash on hand. What's most important, I think most of these people in this room can tell us is the net leverage. What it does is actually measuring my gross debt versus my cash balances and then compare it with our EBITDA, our ability to generate cash flow to pay off the debt. So as I mentioned that, the net leverage has been improving. A year ago, actually 5.12, and then in the middle of the year, 5.33. And then when we finished the year, it's actually 4.93. So this is actually the most important, I think most of the bank actually wanted to look at. We have continued to deleverage. This is a good trajectory. So I think that's most important.
Thank you. Any questions from the floor, please? If not, we have another question from online from Lester. What is the outlook of dividend for next year and any plan for refinancing or improvement in long terms?
Let me answer first. We are different from other management of other companies. We are management, but we are also co-owners. So our answer, we also speak on behalf of the board or our shareholders. We will always put a right balance on dividends, on repayment of loan, and the money for growth. It is the right balance of this that will help us to continue to deliver better than others.
Our refinance exercise has taken off already. It's on track, and it's based on our timeline. So it's actually making very good progress. We receive very favorable response and support from our key lenders. Thank you to their support. So we are in good shape. We are on track.
Thank you. May I invite more questions from the floor, please? No?
Sara again.
I forgot to mention congratulations on the solid results. I have another question on the residential business. So, it's encouraging to see that our ARPU is improving, but the total revenue is still under pressure. So how shall we think about the balance between continuing to improve the ARPU versus maintaining a stable, say, revenue or subscriber base?
So thank you. So I believe, as I mentioned, the belief in a slight drop of revenue is basically we are defocusing those two resellers. But on our own channels, we are increasing manpower. We are increasing the acquisition and retention or upselling of our services through digital platform. And having said that, I think the core driver for us starting from today is GigaFast, like what Denis mentioned, because this network, this high speed, this low latency is basically what we have today and we didn't have yesterday, or we have now, and competitors don't have in coming 12 or 15 months. So it is this basic core that can drive us to go out, shout loud with heavy advertisement and promotion to do more acquisition, do more retention, do more upselling, which may help a lot.
All the other things like products or services for the bundling, in our term, I will say that it's VAS, value-added services. That may help. But the fundamental core is our edge over the others. But as I mentioned, we have this time window. Even the others want to catch up. They may still need another 12 months. So, you can imagine within coming 12 months, we already secure more customers with 24, 36, or 48 months contracts. So, we are done.
Sara, also, by moving away from the reselling businesses and focusing on our direct subscriptions, it's accretive to our bottom line on the EBITDA growth. So you may not see the instant impact on the top line, but from an EBITDA perspective for the residential, it's accretive and it's strong enhancing.
Thank you, William and Derek. If there are no further questions, this concludes today's investor presentation. Thank you for coming and hope to see you next time.
Thank you.
Thank you.