Earnings Call: Q2 2020

Aug 13, 2020

Ladies and gentlemen, thank you for standing by. I am Maria your Chorus Call operator. Welcome and thank you for joining Turksell's conference to present and discuss the 2nd Quarter 2020 Financial Results. Call. At this time, I would like to turn the conference over to Mr. Gorhan Beleck, Treasury And Capital Markets Director. Please, Mr. Belak, you may now proceed. Thank you, Maria. Hello, everyone. Welcome to Turkcell second quarter 2020 results call. Today's speakers are our CEO, Mr. Murat Econ and our CFO, Mr. Osmaeumas. We will have a brief presentation and afterwards we'll be taking your questions. Before we start, I would like to kindly remind you to review the last of this presentation for our Safe Harbor statements. Now I hand over to Mr. Akha. Good afternoon and good evening, everyone. Welcome to Turkcell's second quarter 2020 results call. It was a challenging quarter during which we all felt the impact of the COVID-nineteen pandemic. I will shortly talk about this impact on our business, but before I do that, I would like to start by mentioning the highlights of the quarter. We recorded full performance with our strong business model and proven financial management discipline. On a consolidated basis, we delivered 11.8 percent revenue growth this quarter. Despite limited mobility during the quarter, we gained 181,000 customers 144,000 of which were postpaid. Mobile ARPU growth of 14% exceeded the inflation. Our strategy of prioritizing our digital channels has helped us during the period. 11% of our mobile customer sales were through our website and our application. Furthermore, Paycell's outstanding performance once again proved that we are on the right track with our investment in payment systems. Overall, we generated 1,300,000,000 free cash flow during the quarter, strengthened our balance sheet. We improved the leverage ratio by 00.4 points year on year reaching 0.8 times at the end of the quarter 2. Moving to next slide. As was the case with all operators, the COVID-nineteen pandemic has led to a sharp drop in roaming revenues. For us, it points down to 0.9% of Tuxell 30.11. We expect this factor to continue impacting us in the third quarter. Mobility was constrained but still the drop in gross mobile subscriber acquisition was at acceptable level. Customers have continued to choose our service offering and quality. Thanks to our widespread and convenient channels including digital. On the topic of digital, we encourage our subscriber to use our online platforms for telco services top up and technological product purchases. Accordingly, our digital channels revenue share rose to 11% up from 4% a year ago. Going forward, we are motivated to take this to a higher level As our customers are spending more time at home, we observe an increased time spent on our digital services. This is particularly visible in our TV product with the OTT servers reaching 70 minutes a day per user. In addition, we observed an increase in transaction volume on pay side with digital payments rising by 84% to to 115,000,000 turquista during the quarter. All in all, this quarter has also been instrumental in driving certain structural change in our cost base. We expect certain OpEx saving action will be there to stay in up to pace. Next slide. As of June, normalization has begun in Turkey. The precaution for the pandemic are maintained, but at the same time steps towards normal life are being taken. Travel bans are removed. Clients are partially resumed and many workplace are now open. Yet despite normalization action, many of the trends that emerged in the COVID era are set to remain. Remut working, remote education, and remote healthcare services will continue to be key trends of the post pandemic era. More end users and corporates will demand to be digital in their lives and during their operation. As Chuck said, we are ready to benefit from these trends with our proven solution. Our fixed wireless access production for Box is even more popular, thanks to strong demand for fast and quality connection efforts. We expect to serve both customers and corporates with our unique digital service portfolio. The digitalization of business has created further demand and new opportunities for our data center business, cloud and security services and overall business solutions. In texting, our digital and cashless payment solution are prime for new era. As evidenced by the over 80% growth in online payment transaction. We in the postcode era. We owe our agencies position to our strategic foresight the ability to identify industry and customer needs and our time nations. Moving to the next slide please. Now some further details on our financial performance. We recorded a US6.9 billion dollars % pipeline in the second quarter. Despite the challenging condition of the pandemic, we were able to generate 4 6% increase and EBIT reached 1,400,000,000 Turkish revenue, 19.8% margin. Coupled with lower S and M costs and OpEx, our lower finance costs on a year on year basis lifted our net income to 852,000,000 Turkish Nira. Hence, our 2nd quarter net income is up 83% versus last year. In the first half, our net profit rose 88 percent when we exclude the Fintur transaction gain recorded last year. Overall, these results were in line with our guidance announced earlier this year. Next slide. Let's take a look at our operational performance. Our total subscriber base expanded by 1081,000,000 this quarter. With this, we've already realized 80 percent of our 1,000,000 target for the year. In mobile, we gained a net 104,000 postpaid subscribers, reflecting our focus on this segment. The postpaid share in total mobile subscriber was at 63%. The monthly mobile churn rate was down to 1.9% from 2 monthly churn rate in a healthy level. We landed mobile R2 rose to for 6.4 Turkish Stella on a 14% increase, thanks to rising data and digital service usage and upsell to the higher tariffs. In fixed broadband, we gained a net 36,000 fiber subscriber 7000 ADSS subscriber and 25,000 IPTV subscription. Residential Fiber R to grow was 9.1 percent on a year on year basis. Next slide. Now let's look at the performance of our fixed wireless access products Superbox. Accelerated demand for Superbox continued this quarter given its convenience. With 91,000 net adds this quarter, subscriber almost quadrupled from a year ago. We are pleased to have marked a 5,500,000 milestone in July. In July, we launched a new version called Superbucks Playa with an easy setup feature, further contributing to its communions. Next slide. We continued effort to reinforce our bond with our customers. During this period, our primary focus has been on meeting their communication and technological needs with our digital services, communication solution and our strong network. We prioritize the segments that will require our service the most, namely healthcare workers, youngsters and elderly offering 10 general data. We also provided additional benefits from our risk for of digital services, including 0 rated video calls on BIP, live concerts on physi and additional data quota on TD Plus for remote education. All these were possible through the combination of a strong network, able to provide value added services and existing convenient online platforms. And these were instrumental in consumer recommending trips over the competition, even more saw in challenging times. Moving to next slide. Over the past few years, one of our prior has been to increase the revenue share of our online channels. As disclosed on the Capital Market Day in November 2019, our target RASK to reach 12% by 2022. As at the end of the Q2, the level has reached 11% given the demand during the outbreak. Our customer used this channel to make top ups on the prepaid lines and to buy additional packages, digital solutions, handsets, and wearable technology. In the second quarter, our website had 38,000,000 monthly visits on average and application had 23,000,000 active users. Our ability to provide tailored offer to our digital channel flash sales campaign and win win brand cooperation have also been instrumental in this performance. Overall, the rising popularity and revenue share of digital channels bring us flexibility and the speed in reaching customer at global cost. Moving to next one. SR performance in strategic focus areas, business services, stand alone revenue growth was 23% year on year this quarter. We launched the beta version of our own video conferencing platform called each conference, we are confident that we will bring it up to speed with its competitor within a short timeframe. Yannie Mae solution for corporates and our digital identity management application developed with blockchain technology work, the other highlights of the quarter. As part of our Sundoor strategy of digital services, we have completed the establishment of individual companies for LifeBox, Fiji, and TD Plus. LifePAX named under Billo Brand and beep are now available in the Caribbean market through Digicel. Our digital business solution registered 15% yearly revenue growth are 1,400,000,000 Turkish at the back of our contract values promising for the road ahead. Also 3 additional hospitals were introduced with a 4th one scheduled to open in the upcoming period. COVID-nineteen has brought about a possible pipeline of remote working and education services. Once more, we contribute to the risk reduction with our smart solution. These include thermal camera system, air quality social distance measurement in store customer count, cyber security services. In TechFIM, Pesa has accelerated its penetration with the rising use of contactless and online payment solution. App users have more than doubled from the same period of last year and they were 70% more transactions on Payser card. Online payment transaction have also increased by 84%. This quarter, we also launched 24x7 money transfer to EBA on a Pacer application. Moving to the next slide. And now an update on data usage and for our analysis subscription trend. Average mobile data usage rose 7% in a year to 11.7 gigabytes per user. This is the highest growth level since the port card dropped 2012. The rising data consumption was due mainly to higher content consumption. To growing share of foreign algae users as far back subscribers. Out of 31,600,000 customers signed up for 4a half sheet services, went 1,000,000 have 4a half sheet compatible smartphones still indicating room for growth. In the second quarter, we achieved 79% smartphone penetration. With 9% being foreign houseg compatible. There were 2,000,000 net addition of foreign houseg compatible smartphone on a yearly basis. International market, which generates 8% of group revenue. Our international operation grew by 17.5 percent year on year. This was mainly on rising data usage and the positive impact of currency movement in these countries. In local tuning store, the top line growth rate of our training subsidiary was 7.7%. Lastly in Ukraine recorded its 1st month operation net income in June. Our aims to continue the trend going forward. Bayer's revenue declined 3.3% due mainly to lower handset sales, given limited mobility. Meanwhile, mobile ARPU grew 10.4 percent year on year in local currency terms with higher data consumption and the demand for digital services. By subsidiary in the Turkish Republic of Northern Cyprus, recorded 3.5% revenue growth, mainly reflecting the heat on tourism and education sector. Next slide. I would like to say a few words about another promising investment area, Turkey's automotive project. As we announced a while ago, we are one of the founding partner of automobile company. Holding a 19% share. The company was established to develop and produce a range of battery electric cars in Turkey. This company will be the 1st non traditional manufacturer in Europe to produce native battery electric SUV. Startup production is scheduled for the last quarter of 2022. This quarter July, the company marked a milestone with the groundbreaking ceremony for the environmental friendly factory. The plan is to complete its construction within 18 months. The factory will have an annual capacity of 175 1000 vehicles. The company will earn its intellectual property for its authentic vehicle platform enabling flexibility, creativity to grasp new growth opportunities as being one of the first mover in the electric cars and providing by providing new value added services around the cars as a smart device within our mobile ecosystem. The project is supported at comprehensive incentive and tax rates, and our capital commitment as Tucson is capped at 1,000,000. Considering the benchmark in the field, we believe that this investment has the potential to be value accretive for Turkcell Group in the medium term as e mobility and sustainable and as we continue to to be the rising trend. We are happy to note that the 2nd quarter results confirm our full year expectation, which were announced on 28th April. We have been among key companies to provide visibility to the market during such uncertain times. And this confirmation proves how we were able to analyze the situation and control its effects. As such, we reiterate our full year guidance of 10% to 12% revenue growth. A 40 to 42% EBITDA margin and 19% to 21% EBIT margin and 17% to 19% of operational quarter given the higher share of roaming and the impact of late corporate projects, we see upside risk to this guidance level. We aim to achieve the high end of the top line and focus on the guidance for 2020. I will now leave the floor to our CFO, Osman. Thank you, Brad. Now let's take a close look into the financials. In the second quarter, group revenues rose by 11.8% year on year corresponding to an incremental 733,000,000. Of this increase, BRL740 1,000,000 derived from Turkcell Turkey. This was possible with the rising share of postpaid subscribers offset efforts as strong data demand despite the sharp decline in roaming revenues and slowdown in top up revenues. Looking at the first half, top line growth was 14.5 percent. The slowdown in our consumer finance business and exit from the sports business year ago had a 3.3 percent negative impact on our top line growth. Next slide. In the second quarter, group EBITDA rose by 10.6% year on year to TRY 2,800,000,000. During this period, the use of digital channels as remote working practices have led to savings in OpEx contributing to our profitability. Meanwhile, the higher share of relatively lower margin segments, such as smart devices and corporate projects, has resulted in a margin decline by 0 point 4% to 40 point 5,000,000,000. It has continued to improve its profitability margin with a 0.5 percentage points rise year on year to 41%. In the first half, EBITDA rose by 16.5 percent year on year to 5,600,000,000. ABIT rose by 15.6 percent year on year to RUB 2,800,000,000 with a margin of 20.7 percent. Next slide. Now more detail on our free cash flow generation capacity. As discussed, our operations generated $5,600,000 of EBITDA in the first half, up 17% from the previous year. Hence to a strong collection performance and smart CapEx management, we recorded a TRY 1,600,000,000 free cash flow in the first half. Of this amount, TRY0.6 billion is related to deleveraging of our consumer finance business with the remaining BRL1 billion being related to telco operations. The major items of BRL1.6 billion pre cash flow includes acquisition of intangible assets, property planned an equipment of TRY 2,800,000,000 change in operating asset and liabilities of negative TRY 366,000,000 payment of lease liabilities of 705,000,000 and income tax paid of 235,000,000. Continued improvement of free cash flow over the past 4 years confirms our dedication to generate strong cash flow since the completion of our LT investments. Our aim is to sustain this trend in the upcoming periods. Now let's take a closer look at our texting company's performance and first with finance ads. In Q2, finance apps contract has continued with revenues declining by 44% year on year. This is mainly due to declining loan portfolio with regulatory decisions taken a while ago as well as COVID-nineteen pandemic limitations. Finance has loan portfolio fell by 44% year on year 1,800,000,000 in Q2 2020. Its EBT declined by 38.6% to 900,000, indicating a margin of 58.3 percent. Year the margin improvement of 5% point is due mainly to a lower cost of funding, shrinking portfolio and the rising share of equity in total funding. Cost of risk rose to 3.4%, still below the market average for general purpose loans, while loan insurance penetration was at 93%. The potential further decline in this business due to COVID-nineteen could be positive from a working capital perspective. Next slide. It's been another busy quarter for Paycell. Cashless payment methods have become more popular than ever with more people willing to experience these alternatives. 3 months active pay sell users reached 4,700,000 with total transaction volume of R2.1 billion dollars for the quarter. We observed a solid rise in direct carrier billing and bill payment despite the limited working hours of our physical channels impacting the latter. Record high mobile payment volumes are recorded in both April and May. Also, the CB volume increased by 84 percent to $215,000,000 year on year, corresponding to the 2 0 6 percent quarterly growth. 3rd party bin payments almost doubled. Transaction volume on the Paystar card was R7000 to R72 1,000,000 marking the 70% yearly and 37% quarterly increase. ASAN has also continued expand its reach and service portfolio. It is now expected at more than 10,000 merchant points. In Q2, Paycell generated 63,000,000 CLO revenues, 64% of each online group. Its 43% EBITDA margin was impacted by higher S and M expenditure, reflecting its non group growth strategy. In July, Paycell card users who are also Turkcell postpaid subscribers have been introduced what we call instant limit. As such, they are now able to assign their mobile payment limits to their Paycell cuts, allowing them to spend at any merchant where card payments are accepted. We are also in the process of launching the Paycell Android POS devices and ecosystem enabling a convenient and safe alternative payment for us platform for the merchant. Paycent Android POA will support both card payments via as well as the QR code payments and will offer merchants to pay sell app store for their inventory tracking and campaign management. We will share more about PACE LPOs to us in the coming periods. Now a few words on our balance sheet and leverage. As at the end of the quarter, our gross debt position increased slightly to 19 point 8,000,000,000 from TRY 19,500,000,000 due to a nominal TRY 737,000,000 negative impact of currency movements despite debt repayment. In Q2, the dollar appreciated by 5% and the euro by 7%. As we do not net of our derivative receivables from debt, our reported debt in TiA terms thrives us as FX depreciates. As of Q2, net debt was R8.8 billion dollars with a 0.8 times leverage ratio down from 0.9% in the previous quarter. Excluding our fintech business, this was at 0.7 times the lowest in the sector. In Q2, we saw a nominal R1.4 billion is in net debt on the back of strong cash flow generation despite currency depreciation with a net impact of RUB 517 1,000,000. On average, every 10% depreciation of Turkish Chile caused a 0.1% increase on our leverage. Next slide. This is our last slide and it's about our FX management. Our strong balance sheet remains a key investment highlight with around $1,600,000,000 equivalent cash in hand and the long FX position of $50,000,000. This asset has proved to be particularly important in a challenging environment such as the one we experienced this quarter. We continue to hold the bulk of our cash in hard currency as a natural hedging tool. With hedging instruments in place, the share of FX that had declined from 7% to 9% to 42% as of the end of Q2. Our initial derivative instruments are engaged in include crosscurrent swaps and participating crosscurrent swaps, which protects us against both currency and interest rate fluctuation. In line with IFRS, the hedge accounting practice protects us at well at hand times, while reflecting mark to market relation of these instruments. Furthermore, we closely monitor the market to ensure the effectiveness of participating croskier swabs, revising tail protection levels, if need beep. For example, we have restructured 1 quarter of our existing participating croscoons to our portfolio during Q2. We registered a slightly positive net FX gain in the quarter, excluding swab interest, supporting our strong bottom line of 852,000,000. This concludes our presentation. We are now ready to take your questions. Thank you very much. Questions. The first question comes from the line of Kapujek Anjae with UBS. Please go ahead. Hi, thanks for taking my questions and congratulations on the results. I had three questions please. On your Net Promoter Score, so you're highlighting that in the second quarter, you, widen the gap between yourself and your competitors. Can you just explain that what contributed to this? Second question is around the sustainability of some of these selling and marketing cost declines, with the load of digitization going on as you're highlighting, what do you think is sustainable of the call that you've seen decrease, what sort of levels do you think are sustainable long term relative to sales? And third question, regarding the, Superbucks progress. So you've added something like 90,000 subscribers this quarter, compared to something like 70 in first quarter. Is this more or less in line with what you were expecting? Because your competitor, reported, you know, record numbers of fixed, broadband net additions. So I was wondering how you're looking at this, if perhaps you might be rethinking your approach to the provision of fixed broadband services as opposed to, services based on mobile and whether you're currently maybe pushing more for some sort of regulatory changes around fiber provision? Thank you. You very much for the question. Let me start with the Net Promoter Score. This is mainly when the the time is challenging. Customer looking for quality in terms of network quality, infrastructure quality, and service richness. So during this period, COVID-nineteen period, customers confirmed that our quality, infrastructure quality, as well as the service quality and high customer experienced management quality as well. So I think this is main driver, especially coverage. Services, digital sales. For the second question, sales and marketing. First of all, in the sales side, I think sustainable, but, we shouldn't forget that our sales cost a little bit more to digital as we expected, but during the COVID-nineteen period, we see that it becomes more faster than they expected. For the marketing side due to 2019, we either postpone or cancel part of marketing expense, this will bounce back to normal trend when the thing is getting normal. So for the marketing side, I think we will get back to the similar level that we're spending before. We are hoping that the COVID 19 go away. For the Superback side, it is 91,000 net adds, but you also add 36,000 fiber subscriber as well. So this is the port of broadband demand is there. And Superbox success shows that customer need higher speed at their home and they are ready to pay almost more than double, actually, closer triple, ARPU level to our, Superbox product to get proper services. This shows, fiber is very important in Turkey and customer needs quality service at their home. And when they couldn't get it, they go for more expensive, but higher quality services. I would say. For the fiber footprint, I can little bit elaborate on this side We continue investing in fiber, infrastructure using existing furnace, and we also start to get new permits from the fiber deployment and still mitigate the scale through. But this shows that when we get this this the right of way license or investment permits, we can go further fixed line investment. In order to accelerate the fiber rollout, our goal is to in his speeches since otherwise that there could be a significant waste of resource in the country we expect development on the infrastructure sharing in upcoming period as well. The next question comes from the line of Mendesi Easley with Unlou Securities. Please go ahead. Hi. Thank you for the presentation and congratulations on the strong results. I have a few questions as well. Firstly, could you please elaborate on the RP growth trends for the second quarter for the postpaid and prepaid segments? And could you also remind us if Superbucks ARPU was included under the postpaid segment, still, because, given the around about 20% price increases year to date in the Superbox, packages, I was expecting myself a higher postpaid auto growth for the second quarter. And how we should see for the 3rd quarter, the growth trends, on that front? And my question My second question is on your commitments regarding this automotive project. So I think if I did not hear wrong, you will commit in total 1,000,000 for the project. And how much of it will be in 2020 2021? Thank you very much. First of all, thank you very much for the question. The part Superworks ARPU, it is included postpaid segment. But if we look at like or like ARPU, It's like 13 around 13 and a half percent level. So, even though Superbox are pre included, It has limited impact on the ARPU growth of the postpaid. The second thing about the first question, for the, you know, in the postpaid ARPU, there is also roaming ARPU as well mainly our postpaid customer utilize abroad traffic and abroad services as well. So I'm during COVID, we cannot get this revenue from our postpaid subscribers. So even though Superbox continues on the one side, but roaming site gets another minus for us. But we managed to keep over the inflation, which is, very important, on our side. For the commitment for the automotive project, I believe let me check the numbers. The majority of as our commitment is 1,000,000 to 1,000,000. As far as I remember, 1st 19,000,000 has been released. The rest will be released until 2020, end of 2020. 22, sorry, 22. So for 2020, how much we should assume? It's 1,000,000 so far. So far for the second half we should expect? Yes, the rest will continue until the end of 2023. So, you highlighted the new enrollment revenues, unfortunately, for the postpaid segment. That will be the case for the quarter as well, right? So, for the 3rd quarter as well, even though there was an additional price increase in the 3rd quarter for Superbox, you are saying it has a limit that also probably in the third quarter? Exactly. Obviously, we shouldn't forget that inflation is going down quarter over quarter to 30. So we are trying to be in line with the inflation and the expectation is around maybe single digit maximum, 11% inflation rate. So, we are still over and above the inflation, but we would like to keep similar levels plus and minus on the inflation growth like that. On the other hand, it was growing number of subscribers This is also helping our revenue growth on top of revenue. Okay. Thank you very much. Regarding roaming comment, it is it is valid for Q3. I would say, because we will see growing impact on Q3 because Q3 is one of them biggest quarter in terms of revenue. Okay. Thank you very much. The next question is from the line of Kim Ivan with Excellus Capital. Please go ahead. Yes, good. Two questions, please. I firstly just wanted to talk about this letter, comment that you made that inflation is going down. So on top of that, with the roaming falling out, what sort of ARPU, mobile ARPU, growth you think you can show in the second half of the year? It doesn't look like it will be easy to, even mention, like, high single digit inflation from what I can see. So any, comments on that would be highly appreciated. And then secondly, I just wanted to ask about the working capital dynamics in the, second half. So first half obviously was quite strong. And only part of that is driven by the from a finance company. There were some trade payables released too. So what do you expect for for the second half or full year, whichever is easier for you to talk about. Thank you. Is management ready to answer? Sorry, sorry about that. Let us start with the inflation question. As you know, the inflationary price is a key pillar of our business model. Yet our price action are reflected in pricing with a less usual contracted nature of our business. Accordingly, our ARPU growth was much higher than the inflation rate in the last three, four quarters. It's reasonable to see some normalization in ARPU growth with the declining inflation over the last year. I would like I will reasonable to expect our pricing to converge to a reasonable range around inflation levels in the upcoming quarters. So it's, I expect a higher single digit, maybe double digit level. For the second quarter, we expect to stable around this level for the rest of the year, for the working, I think the question was the rate working capital. We expect similar level that we are seeing in the first half. Okay. Thank you. The next question comes from the line of Ebrahimova Delia with Citibank. Please go ahead. Hi, thanks very much for the opportunity. I have a question on just follow-up on your comment on fibrin investments and the, right away license that you set. Could you maybe give a bit more details first on what the implication would be on your investment, sorry, on your investment intensity, especially if you were to get a bit more apartment going into 2021. And then, just maybe give a bit more color as to, like, if it's who is the who is the which agency issues this license and, how long do you expect this license to be available for, some color on what it is, how it works, and what changed? Thanks. 1st of all, the last couple of years we couldn't get, I couldn't say license kind of permanent. So when you try to deploy fiber in Turkey, you need to get permit from, Ministry of Transportation And Municipality that is that is the area that you would like to roll out. So, so far, we couldn't get last couple of years. We couldn't get permit from Ministry of Communication for rolling out fiber. But recently, we get some of the partners so that we can deploy more fiber for our infrastructure. As everybody knows fiber is very important for fixed line as well as the 5G that is in front of us. So deploying fiber is very important. For 2021, we would like to see we would like to invest in fiber, but we would like to invest in jointly because investing in infrastructure is not good for the economy of country. So if we jointly invest in fiber infrastructure in Turkey, then we can compete on the services level. As everybody knows that if 3 party deploy fiber into the same place, then it's not a very efficient way to deploy driver. So we would like to push joint investment. And I see that in the government authority level, there is an ambition to do in a joint way as well. So this is good news for us. We have a follow-up question from the line of Kabejik Andre with UBS. Please go ahead. Yes, hi. Thank you. 2 follow ups for me please. One regarding the fiber, you mentioned that there is now more political will, for for some of the, sharing or or joint venture project Can you just give us a bit more more color as to what scenarios are in play? IE, now that, for example, both you and Tech Telecom have have similar for, have a common shareholder, is there a possibility that, the entire network sort of merged somehow over the medium term, for example, is there you know, as you mentioned joint ventures in terms of investing, should we expect only that, or is there, potential for something more more sort of market wide to happen. That's my first follow-up and the second follow-up just on the inflationary pricing. Do I read or do we read your answer to the previous question in the way that's, you feel more comfortable about raising price currently because, at the 1 quarter results, you were sort of, hesitant to, to comment on, you know, inflationary pricing during the pandemic. Is that situation better now? Thank you. Thank you, Bharat. First of all, first question, my comment is more, I mean, I don't believe that we have common shareholders. The shareholder sector is a little bit different, but on this side, I would like to mention that looking at telco asset portfolio of Turkey Revlon, we believe that a fair and convenient environment for infrastructure sharing is also possible because Turkish Net Fund has a cable infrastructure will probably share in Toast to sell and has limited sharing in 2 Telecom. So in this, perspective, it is wise to have common infrastructure for the country. And this is good for the country for the future as well. We can expand our fiber infrastructure and reach equally to the all over the countries. And coming up 5G in front of us, other, I mean, high speed internet needs at home. These are drives driving force for the carbon fiber investment. And as I mentioned, 13 is more fiber. The screwbox penetration shows the demand. Demand is that customer is ready to pay higher for the better services. For the inflation, I mean, the traffic cost of Tuxan shows what we will we're going to do for next coming quarter. We always say that we're going to follow the inflationary pricing we would like to continue on this side. As we said before, it was difficult to increase the price during pandemic area But we do see that, there are more comfortable, types to increase pricing So we will, we will do our best to meet, to meet, our implementation and pricing approach. That's very clear. Thank you. And also, by the way, just to remind that we have already started increase our acquisition price. And we hope our competition will like to follow us. Okay. Thank you. Questions. Thank you. I would like to thank all the participants and have a good evening and good afternoon. Ladies and gentlemen, the conference is now concluded. And you may disconnect your telephone. Thank you for calling and have a pleasant evening.