Earnings Call: Q1 2020

Apr 29, 2020

Ladies and gentlemen, thank you for standing Call operator. Welcome and thank you for joining the Turkcell's conference call to present and discuss the first quarter 2020 financial results. All participants will be in At this time, I would like to turn the conference over to Mr. Corran Bilek, Treasury And Capital Markets Director. Please, Mr. Bilek, you may now proceed. Thank you, Gelli. Hello, everyone. Welcome to Turkcell's first quarter 2020 results call. Dave speakers are our CEO, Mr. Murad Derakham and our CFO, Mr. Osman Yilman. We have a brief presentation and afterward we will be taking your questions. Before we start, I would like to kindly remind you to review the last page of this presentation for our Safe Harbor statements. Now, I hand over to Mr. Erica. Good afternoon and good evening, everyone. Welcome to Turkcell First Corp 2020's result goal. We have ended the tough quarter with several consecutive challenges. Starting the year with unfortunate natural disasters, we began to file the impact of the COVID-nineteen pandemic in March in Turkey. The first case in Turkey was identified on March 10 after which things changed rapidly both our company and in our lives. We responded immediately to protect and support our employee, customer, our distribution channel and those communities in need. I will talk about the impact of COVID 19 later in the presentation. For now, I would like to point that its impact were limited to just 2 weeks in our first quarter results. With that, I am pleased to deliver a strong start to 2020 in line with our plans. Our outstanding operational performance in the home market played a large role in these results. We gained a total of 614,000 net subscriber, reaching a large part of our annual target of 1,000,000. Strong ARPU growth continued both in the mobile and residential fiber segment. Accordingly, we generated 17 point 3% revenue growth. Our EBITDA grew by 20.23.1 percent leading to 42.2 percent EBITDA margin. These results were in line with our guidance announced earlier this year. Next slide. Now some further detail on our financial performance. We recorded a CHF 6,700,000,000 top line and 2,800,000,000 EBITDA in 1st quarters. Our EBITDA margin improved by 2 percentage points year on year. Our EBIT reached CHF 1,400,000,000 with a 21.6% margin. Net income was at 873,000,000 Turkish. Last year in the first quarter, that was a Fintur transaction, gain of 700 and 72,000,000 Turkish. Excluding this, our net income nearly doubled this year. Next slide, Let's have a look at our operational performance. 670, the IPTV and fixed segment, the 614,000 net subscriber gains represent 61% of annual tariff. Firstly, gaining new subscriber early in the year benefits the full year effect of revenue. And secondly, with the bulk of the targeted region in Q1, we are confident of meeting our full year target of $1,000,000 despite COVID-nineteen related uncertainty. The monthly mobile churn rate excluding the impact of regulatory change was down to 1.7 percentage from 1.8%. Last year and from 2.1% in the previous quarters. Blended mobile ARPU rose to 46.3 Turkey strand 21.1% increase with the change in subscriber mix towards postpaid and upsell to higher tariffs with increased data usage. Prebid ARPU also saw a double digit rise in this quarter. Twice the rate of the 4th quarter in the fixed broadband segment. Our fiber subscriber base grew by towards 4000 net addition. Residential fiber ARPU growth was at for 13.4%. The price increase in the first quarter last year led to base effect in the growth figures. Going forward, we expect ARPU growth rates to converge to inflation. Next slide. I should mention a few more points about our rising postpaid base. Our value focus has resulted in continued growth of the postpaid subscriber base. Historically, the first quarter is usually due to seasonality. Even so we gave a solid performance with 679,000 net postpaid additions. This result from consistent customer focus since early last year, utilizing a microsegmented approach by leveraging our analytic capabilities. We strengthened our market position by shifting to a more valuable portfolio of higher postpaid subscriber in the total base. The postpaid share rose 7.8 percentage points year on year to 63%. Having a strong postpaid pace has become more important in this fragile macroeconomic environment. Postpaid subscription is more open to upsell opportunities and less risky in the challenging periods. Moving to next slide. Now let's look at the performance of our fixed wireless access products Superbox. Superbox remained a sole home internet alternative to fiber, where there is no fiber Superback subscriber enjoyed the fiber live speed delivered over our mobile network. As such, we recorded 76,000 net add this quarter, all three times that of the first quarter last year. Total SuperBak subscriber reached 400,000. We have seen accelerated demand for SuperBak's lately as people stayed home under pandemic conditions. We are confident of meeting current level of demand both in terms of supply and network capacity. Next slide. ASR performance in strategic focus areas We continue to advance our digital services with new features and large new services. 1 of those is Turkcell digital security which provides Indonesia security well online. We also introduced various campaign, including live concept, 0 rated video calls and inflammatory channel on bid to support our customers staying at home. Overall, digital services stand alone revenue growth was 29% year on year. This resulted from our focus on standalone subscriber reflecting our plan later on during the chapter market day in November 2019. Our Digital Business Solutions registered solid quarterly growth of 42%. Digital Business Solution has been focused on delivering seamless service to the core product segment with our strong infrastructure and advanced service and solutions. At the same time, we have secured nearly 700 knee projects in this field during the quarter. Given the changing business dynamics, we expect that the demand for digital solution, particularly our cloud and data security solution to accelerate going forward. In texting, Paycell registered its all time high yield transaction volume drop off 146 persons in March. The limitation on mobile and concurrent riding digital content consumption was instrumental in these trials. Going forward, we expect the demand for Payset to increase as user habits change. Next slide. And now an update on data usage and for transcription trend. Average mobile data usage rose 66% in a year to 9.8 gigabytes per user. This is the highest growth level of the past 10 quarters. The rise in data consumption was due mainly to higher content consumption in the current environment. The growing share of Hora HealthG user as superbox subscriber. In March, the monthly data usage of Hora HealthG user has reached 13 gigabytes. Out of 31,400,000 customers signed up for finance services, 20,400,000 have for our 3 compatible smartphones, still indicating room for growth. In the first quarter, we achieved 78% person smartphone penetration with 89% being 4 and a half g compatible. There were $1,900,000 net additional for RSE compatible smartphones on a yearly basis. Moving to the next slide. We are in a period in which the vital importance of our sector is clear from experience. Moreover, experiences told us of that quality plays a differentiating role during a challenging times such as pandemic and other natural disasters. At Turkcell, we reap the fruits of consistent investment in our infrastructure over many years. Having pioneered the digitization of the sector. Our network capacity and quality boosted our confidence to offer more to our subscriber. Furthermore, an extensive distribution channel and our readiness in online sales channel have helped bring us ever closer to our customers. All this have been instrumental in customers recommending Tucson over the competition, even more so in the challenging times. Let's look at our performance in the international market generating 8% of group revenue. Our international operation grew by 31.7 percent year on year to 560,000,000 Turkish lira. This was mainly on rising data usage in these countries and the positive impact of currency movements. In local currency terms, the top line growth rates of our Ukrainian and Belarus subsidiary were 12% and 2% respected This quarter, Lifestyle Ukraine acquired a new license in the 900 Megahertz Bandwidth for CHF 121,000,000. Accordingly, its frequency band rose from 3.8 megawatts to 5.6 megawatts valid for 5 years. New frequency will be used to provide LTE services to rural regions and highways. Furthermore, our substrate in the Turkish Republic of Northern Cyprus recorded 14% revenue growth with the rising contribution of fixed services and the corporate segment. Next slide. You may have followed our teleconference 2 weeks ago, where we share our initial takes on the impact of the COVID-nineteen. Here is the summary of what we said quantifying the initial impact and risk determined so far. The COVID-nineteen pandemic has been disrupted for the entire world in various aspects and at different levels. Right after the first case, Wazawa Bank Fire in Turkey, we witnessed a series of economic and social, granted measures taken swiftly viral related government bodies. These measures have considerably impacted our daily lives and forced us to unique against pandemic. We have been running our operation in Turkey and in the other markets, with nearly all our land employees including 10,000 call center agents working from home. Our analysis of last week of March shows that total network traffic rose by 25% even up to 50% in peak hours. Our digital services used has increased with 10 plus small group, 10 plus small group video calls, on bid and 15% higher logins on tv plus. Meanwhile, post paid customer acquisition were down to 5% whereas fixed broadband subscription rose by 52%. We also observed significant improvement in churn levels. On the retail network front, visit through website and application ramp up by 30% with a 70% 76% higher sales volume. The digital business solution teams serve our customer 25 to 14 by 7, meeting their rising demand for our services. Also, we achieved the earlier than planned integration of another city hospital in Italy, Istanbul. Similar transfer observed in our international business, which remains more challenging given its predominant prepaid component. Potential risk exists in short term business and segment including SMEs and for roaming income prepaid top ups and the devices. Risk of disruption to the global supply chain may also emerge depending on the duration of the crisis. Next slide. We have evaluated the risk to the best of our knowledge and calculated the potential impact on our 2020 targets. Accordingly, we would like to share a revised and realistic guidance with you. We have assumed that this challenging period will continue through the second quarter with a gradual normalization thereafter. We now expect revenue growth of 10% to 20% and EBITDA margin of 40% to 42% and EBIT margin of 19% to 25%. We expect the operation CapEx to revenue ratio to be within the range of 17% to 19% as a result of new revenue guidance. Despite currency movement, we aim to keep normal CapEx stable. Despite the challenging environment, based on our revised figure, we expect to deliver double digit top line growth throughout this critical period. As that settles, we are confident in our ability to monetize the fast digitalization and changing user habits in favor of digital services, solution and payment services. Before I give the floor to Osman, I would like to express my gratitude to all those working tirelessly while putting their lives at risk, especially our health brokers. Mayor, all staff safe and healthy. Over to Yosla. Thank you very much, Bharat. Let me start by saying how proud I am to be a part of this dynamic management team. We have swiftly and effectively responded to extraordinary and fast changing conditions. As already mentioned, the COVID-nineteen pandemic had a limited impact on our first quarter performance. We expect the impact to be felt throughout the second quarter, leaving a headwind. Group revenues rose 17.3 percent year on year corresponding to an incremental TRY 1,000,000,000. Of this increase, TRY 900,000,000 from Turkcell Turkey operations. This is created by a diversified source of revenues where consumer business contributes close to half of this amount while fast growth in corporate business and new products like Superbucks were instrumental in this increase. As well the case for several quarters, consumer finance companies contribution was negative given the slowdown in its business. Moreover, termination of our sports betting business in Teltek also creates a drag on growth. Excluding these 2, our year on year growth is 20 point 8% in the first quarter. Next slide. Group EBITDA rose 23.1% year on year to 2,800,000,000 shares, driven mainly by strong top line growth and disciplined cost controls. EBITDA margin rose 2 percentage points to 42.2 Turksal turkey was the main driver of margin improved with its 2.7 percentage point increase. EBIT rose by 30% year on year to 1,400,000,000 with a margin of 21.6%. We realized nominal flat G and A expenses and lower sales and marketing expenses versus the first quarter of last year. The savings in G And A relate to personnel expenses where we grow our top line with limited headcount increase. Sales and marketing contributes by 1.9% points to EBITDA, 0.6 percentage point comes from marketing and 0.9 percentage point from sales expenses. This was mainly due to having done fever, but effective and segment focused campaigns this year. Further, we prioritized the use of digital channels leading to additional savings. Year on year increase in doubtful receivables is mainly due to 42,000,000 TL 1 off impact in Q1 last year, creating a base effect. Next slide. Now let's take a closer look at our fintech company's performance as First Financial. In Q1, finance and revenues were down 33% on a declining portfolio due to regulatory decisions plus a rise in handset prices. The total loan portfolio fell around 42% year on year to TRY 2,100,000,000 in the Q1 2023. The COVID-nineteen pandemic now represents a further challenge for this business. Its EBITDA declined by 7% to 102,000,000 indicating a margin of 62%. Nearly margin improvement of 17.2 percent point is mainly due to lower cost of funding at lower rates, plus the rising share of equity in total funding. Meanwhile, cost of risk fell to 2.8% from 3.2% in Q4, reflecting our risk management efforts since mid 2019. The potential further decline in this business due to COVID pandemic is positive from over capital perspective. Next slide. Paycell has been busily happening to business potential arising from increased demand for cashless payment methods. Total 3 months active pay sell users numbered 4,600,000 with a total transaction volume of TRY 2,400,000,000 for this quarter. We observe a solid rise in service usage, particularly the online payment and direct carrier billing. Direct carrier billing volume was up 69% and with 3rd party bill payments up 2 16%. The transaction volume on the Paysar card was 53,000,000, marking a 70% year on year rise. The company's analytical strength enabling diversified campaigns using microsegment marketing has contributed to achieving these growth figures. Paycell has also continued to expand its reach and service portfolio. As at the end of Q1, Paycell is accepted at 903 9,300,000 merchant points. In Q1, Pesa generated 64,000,000 TR revenues with 70 the 57 EBITDA margin. With a value focus, ASR concentrated its efforts on non success businesses. Accordingly, non group revenues increased by 8% to 2% this quarter, now representing more than half of total revenue. Pay said is well on track to benefiting from permanent change in consumer habits in favor of cashless payment methods. Next slide. Now, a few words on our balance sheet and leverage. As at the end of the quarter, our gross debt position declined to R19.5 billion from TRY 70,000,000,000. The main factor is TRY 2,400,000,000 of debt repayments against the TRY 1,600,000,000 negative impact of currency movements. Recall that dollar appreciated by 10% and the euro appreciated by 9% in Q1. As we do not net of our derivative receivables from debt, our reported debt rises as FX appreciates. As of Q1, net debt was 10,300,000,000 with a 9 0.9 times leverage ratio down from one time previous routers. Excluding the fintech business, This was at 0.8 percent, the lowest in the sector. In Q1, we had a nominal 201,000,000 TR increase in net debt. This was mainly due to a net of 535,000,000 negative FX impact. First quarter is seasonally a difficult one in terms of working capital as we pay for the relatively high CapEx of previous 4th quarter. Also the annual frequency tax is paid in February at over 400,000,000 this year to be collected from subscribers throughout the year. Hence our cash generation performance this quarter was very successful. Next slide. As discussed during previous quarterly calls, liquidity management is amongst the key factors of our business agent model. From time to time, we have been criticized by certain investors for carrying large amounts of liquidity on our balance sheet. Yet this unfortunate crisis period has proven us us right once again. On this slide, I would like to highlight our balance sheet and liquidity strength. Turkcell is among a few companies in Turkey with this key strengths. Our average debt maturities around 5 years, and we found working capital requirements through short term bank loans, matching the maturity of our obligations. Our liquidity positions offers us sufficient buffer to sustain our operations with 1,400,000,000 hard currency cash, 1,000,000,000 debt service in 3 years, excluding short term local currency loans and available credit line from diversified sources. The potential for a further slowdown in the consumer finance business will also mean an additional working capital release. Finally, a few words on our FX management. Our balance sheet remains robust with some US1.4 billion dollars equivalent cash in hand and for a long position of US114 million dollars. We continue to hold the bulk of our cash in hard currency as a natural hedging tool. With hedging the instruments in place, the share of FX debt has declined from 80% to 40% by the end of Q1. Our disciplined FXist management has once again helped to protect our bottom line performance during this fragile quarter. Despite close to 10% FX appreciation, we saw a quarterly net FX gain, excluding swap interest, leading to a remarkable bottom line figure of KRW 873,000,000. This concludes our presentation. We are now ready to take your questions. Thank you very much. The first question is from the line of Jim Ivan with Delus Capital. Please go ahead. Yes, good afternoon. 2 questions, from my side, please. Firstly, on your strong postpaid subscriber with additions. Can you talk about how many are coming from other operators and how many hard prepaid customer conversions. And then general, given how strong the postpaid additions for the past a couple of quarters, aren't you worried that, this can lead to higher price competition, from your rivals in the mobile market? That's the first question. And the second question on pre cash generation, it's been strong in the first quarter as you said against some, some, versus analogy with the high frequency payments, for example. On my calculation, that you equated free cash flow in the first quarter was 900,000,000 litre. So I was just wondering what either a ballpark range number you expect for the year by now? Because as you pointed out too, there will be some more working capital release in the remainder of the year on the unwinding of consumer finance company balance sheet. Okay, Johan. I believe we hardly hear the second part of the question. But let us start with the first part of the question regarding, postpaid and, and, switch between prepaid to postpaid site. As part of our strategy, we have been more focused on strengthening our bond with customer over the past years. We realize the return of our effort each quarter. We are one of the tactical companies leveraging the data analytics skills most effectively using big data. And we follow a microsegment approach, which enables us to make the right of full to the right customer at the right time. Please also note that we achieved the performance while registering mobile ARPU growth of 21 per person. Our solid performance confirmed our commitment to gaining a 1,000,000 subscriber each year. Merely half of the postpaid net as in Q1 is switched from the prepaid. So this is this reflects the one of the questions. Moving prepaid customer to postpaid segment is one of our key goals and is naturally the target of all operators. I must say it's not easy to as it is sounds from the technical definition switch. Therefore, there's not an there is a notable performance on our front as well. So this was the first part of the question. Let me give you the word to Osman regarding free cash flow and working capital, relation, Osman. In the beginning of the year, we were expecting about 500,000,000 TL additional free cash flow generation from our consumer finance business. But given the negative impacts of COVID-nineteen pandemic, we now expect more than 700,000,000 free cash from generation, from consumer finance. But, a part of this additional free cash flow generation will be offset by decelerating a collection performance mainly in corporate segments. Sorry, and just to quickly follow-up, so do you do kind of ballpark number for the annual free cash that you expect right now or you can't share that? Actually, we prefer not to give a precise number for, free cash flow generation, but, you can roughly say 20% of the EBITDA, nominal EBITDA, to 25% of the nominal EBITDA can be expected as our free cash flow generated for the The next question is from the line of Jared Herb with HSBC. Please go ahead. Yes. Good afternoon. Two questions as well on my side. Firstly, in terms of date for the AGM, do you have a date for the AGM and do you believe, there could be, what is your view on the potential payout, on earnings that you may give to shareholders. And the second question is, did you see in the beginning of Q2 and the impact in terms of bad debt increasing, and especially as well as you unwind the portfolio or your loan portfolio on consumer financing, do you see an increased portion of difficulties of payment from some of your consumers. Thank you. Okay, Heather. Thank you very much. For the general assembly, you know, along with many other listed companies, we are on hold regarding a call for general assembly. Please also note that our government introduced 25 percent cap on dividends, which will be effective till end of September. So this is one side. So also this cap overrides our official dividend policy of distribution minimum 50 percent of distribution net income. Yet in practice, any prudent company would wait and seen the normalization of this crisis before our dividend decision. As Trucks said, we also believe that it will be reasonable to wait until, the removal of this gap, hopefully, with this normalization of the condition and removal of this gap Our board can make a dividend proposal in line with our policy, and we can hold our general assembly in the later months of this year. This is regarding the AGM. For the bad debt, I think Osman can, response for the bad debt side as well. Actually, until March, we had a very strong collection performance, not only in consumer finance business, but also in all business segments. And cost of risk in consumer finance declined from 3.2percentto2.8percent despite a contracting portfolio. Inevitably, a pandemic will have negative consequences on our collection, performance For example, due to regulatory restrictions, we will not be able to make a legal follow-up for our late payments in consumer finance business. Similarly, banks in Turkey cannot, conduct legal follow-up actions for the receivables, and we will not be able to do this until mid June. This will have some negative impact on our cost of risk. We expect cost of risk to rise to 4 to 5% in the coming quarters. It's about 1% higher than our, initial assumptions in the beginning of this year. Also, please note that more than 90% of the loans that we granted are insured And these insurances protect us against unemployment, which is expected to rise rapidly in coming months. So we are partially hedged against macroeconomic downturn. And just a follow-up question on those 90% ensure does it cover external events such as COVID-nineteen? It covers, only unemployment it doesn't cover natural, natural diseases or pandemic. It's not a health insurance. It's, against debt, and also, And we are not issuing customers above age sixty five. So we see very few fatalities throughout the year. Most of the compensation comes from unemployment claims. Okay. I understand. The next is from the line of Madacci Eze with Loop Securities. Please go ahead. The presentation. I have three questions. One is about the mobile app growth trend going forward. If I'm not mistaken, you mentioned that the R2Growth should converge to inflation, at some point. So when do you expect such a convergence, to happen, as far as I believe that in the in April, you still have the effect of the upselling and probably that might be higher start to grasp, particularly in postpaid segment. And, on a standalone basis, you're seeing slower drop compared to previous quarters, but still there's a transition as you have noted from prepaid the postpaid, which also, you know, has been affecting the brand of ARPU. So combining all those, how much percentage growth we should expect for ARPU for the 2nd quarter 3rd quarter. This is my first question in detail. And the second question is about the corporate segment is unlike 16% of your total consolidated revenues. We have seen 30% growth in this segment in the first quarter. But you are seeing slower sales, should we expect shark contractual, slight growth or still high teens growth in the segment or the second quarter? How we should make assumptions for that segment, specifically. And thirdly, you highlighted the working cap so requirements, an increase in working capital requirements for the whole year, given this SME business, I think it had a, a blow sample, some, sharing your social revenues, when you consider this, effect, would you still expect an improvement in your net debt over additional ratio or leverage ratios for 2020. Thank you. Okay. Thank you. Thank you for the questions. First of all, let start on ARPU side. And let me give you a little bit broader answer on the ARPU side. Because, ARPU impact on fixed on also mobile front. On the mobile side, our mobile ARPU rose 21.5% driven by large postpaid subscriber base and offset effort on the back of increased data consumption. Inflammational repricing is a key pillar of our business model due to contracted nature of our business our price actions are reflected in ARPA with a lag. Please note that Turkey has been in a declining inflation path since last year, and this trend is to be accelerated with the falling commodity prices as well as drop in demand in various industries as a result of COVID-nineteen pandemics. The guiding inflation together with our aim to support our customer in these difficult times puts a limit on pricing. Hence, it was reasonable to expect our ARPU growth to converge to a reasonable range around inflation level in the upcoming quarters. On the fixed side, we registered fiber ARPU growth of 13.4% in Q1. The slowdown in fiber ARPU growth is also a reflection of declining inflationary environment. Please also note that we renewed our offering portfolio with a removal of fair usage policy at the beginning of 2019 and increase our pricing as we have longer term contracts in fixed segment and as the base effect diminish, This also impact ARPU growth. Regarding corporate revenue side, obviously, we don't expect shop contraction, but we will see business slow down because there are especially in the SME side, the shops are closed the SMEs are not working at at at this point of time. So this impact our revenue side. On the other hand, roaming also has a big, big revenue decline in position since our corporate customers are not going abroad and doing business with the abroad, a broad company. So that's why, our core segments, will hit more than the consumer side in this COVID-nineteen. But to be honest, I would expect the corporate business will recover sooner than the other business because the demand, is not canceled. It just postponed. For the working capital side, Osman will take care of the question. Thank you very much. First, let us clearly state that rather than being rigid on collections with a short sighted vision, we rather believe that we should be providing the flexibility to our customers during these difficult times and we thus we can build stronger bonds with them. In the corporate segment, certain industries and in particular, SMEs have been directly impacted by the pandemic. We see lower risk for large enterprises and public accounts but we see a risk, a high risk for SME segment. We have been extending extending the payment terms for several customers in the industry that are directly impacted. At this point, the number of these requests are limited and insignificant given the total number of clients yet if we have a prolonged scenario, we can expect additional deferral on payments. As I try to figure, in in the previous questions, we don't expect a significant impact in terms of network and capital requirements. And this will be more than offset by the flexibility in our consumer finance business. There will be additional release from the slowdown in this business and this will more than offset the working capital requirement in SME segment. For your question on net debt to EBITDA, unless we see a further depreciation in Lira, we expect our leverage ratio to remain below, 1.0 times throughout this year. And if the currency stays stable at this level, we will potentially we will see lower net debt to EBITDA figures approaching to 0.7 times. Thank you. Ladies and gentlemen, there are no further audio questions at this time. I will now turn the conference over to Mr. Belick for webcast questions. Thank you. So we have a list of questions coming from the web. We are going to touch on a couple of them and try to address the rest at 1:one. Some of them have already been answered. So, one is related, with the impact of prepaid top ups. So what is the what is the COVID and social mobility impact on the prepaid top ups. Let me take care of this question. The use of online channel has an increased trend in the last couple of months. As people spend more time in their homes, we have seen a decrease in our top up revenue from our stores But since our top up rate has increased significantly through our digital channel, we don't see a negative effect on prepaid top ups in total. So, to give you some information, our digital share increased from 6% to 13% in terms of top up. Thank you, Marasti. And one last question regarding our credit line, how much do you have in committed and uncommitted credit lines? Actually, we have utilized almost, all of our committed lines but we are working on additional committed lines and we are planning to announce it very soon. In addition to that, we have a $50,000,000 less from an ECA facility with a car. And in the beginning of April, we have utilized $50,000,000 from this facility. Moreover, we have around 4,500,000,000 credit lines from various banks both in Turkey and outside Turkey. Thank you, Osman May. So this brings us to the end of the call. We thank Bradley and Osman May for their presentations. And everyone for their participation. Have a safe and healthy days. Thank you. No problem. Thank you. Connect your telephone. Thank you for calling, and have a pleasant evening.