Earnings Call: Q4 2019

Feb 20, 2020

Ladies and gentlemen, thank you for standing by. I am Gaili, your Chorus Call operator. Welcome and thank you for joining the Turkcell's conference call. To present and discuss the Fourth Quarter and Full Year 2019 Results. All participants will be in listen only mode and the conference is being recorded. The presentation will be At this time, I would like to turn the conference over to Mr. Gorhan Bilek Treasury And Capital Markets Director. Please, Mr. Beleg. You may now proceed. Thank you, Gelli. Hello, everyone. Welcome to Turkcell's 4th Quarter 2019 Results Call. Today's speakers are our CEO, Timrath Eir Khan and our CFO, Mr. Osman Yumas. We have a brief presentation and afterwards we will be taking your questions. Before we start, I would like to remind you to review the disclaimer of our presentation Now I hand over to Mr. Erica. Good afternoon and good evening. Welcome to Turkcell 4th quarter and 2019 results. 2019, my first year as Turkcell's CEO. Has been marked by strong financial and operational performance which has cemented our leadership. I am pleased to see that we pursue the right strategy for the future. With NOK 25,100,000,000 of revenue we were proud to be largest revenue generator of the integrated telecom operator sector. We generated 18.1 percent yearly top line growth, which is two percentage points above our closest competitor. Our growth differential has been wider in the fourth quarter. We are confident of leading sector growth in the future. At the bottom line, we recorded solid net income of 3,200,000,000 Turkish Dara, also the highest in the sector. Our profitable operation as well as successful financial management allow us to generate profits even at difficult times. Therefore, our shareholders face less volatility in profits and received dividends. A 10 year record of 1,500,000 year yieldly postpaid ads and continue ARPU grow over instrumental in this performance. Of note, mobile AR to growth was almost double the sector average. We are confident of maintaining our strong performance in light of Let me briefly compare our results with our guidance. We delivered what we promised with 18.1 percent revenue growth and a 41.5 percent EBITDA margin, we met our guidance. The EBIT margin was slightly above the guidance at 21.4%. We continued our disciplined approach to operational CapEx 18% of revenue than our mobile and fixed network, enhancing our spare network as well. This confirms our execution capability. Next slide. Moving to the 4 quarter result, good execution of our customer centric strategy led to a record performance. This quarter, we generated CHF 6,700,000,000 of revenue on 18.8% growth. We have outperformed our peers in the integrated telecom sector. We had around 1,000,000 postpaid net adds and their share rose to 62% from 56% a year ago. At the same time, mobile and fiber output increased at record levels. With $2,800,000,000 of EBITDA Our EBITDA margin was 41.2 percent. Net income was at 156,000,000 Turkish Lira. Besides higher EBITDA as well computed bulk of the LTE investment, we have increased our cash flow generation capability significantly. This resulted in a nearly $1,000,000,000 Turkish free cash flow in Q4. Next slide. Now some further detail on our financial performance. We recorded a 25,100,000,000 Turkish topline and 10,400,000,000 Turkish REBITDA in 2019. Our EBIT reached 5,400,000,000 Turkish with a 21.4% margin. Net income saw an all time high of $3,200,000,000 on a 60.6% increase. 4th quarter net income was negatively affected by a $199,000,000 Turkish settlement with the tax authority. Next slide. Let's look at looking to our operational performance. In the 4th quarter, postpaid subscriber rose by $984,000. This outstanding performance confirmed are the termination to gain 1,000,000 subscribers each year. Belanded mobile ARPU rose to 4145.9 Turkish on a 22.7% increase with upsell to higher targets. Positive change in subscriber mix and rising data usage. This performance reflects our micro segmented approach and analytical capabilities. As discussed in the third quarter, the Easter required all operators to deactivate lines, lacking residents' documentation by the 6 months of subscription. This impacted the whole sector where our share of foreign subscribers is the largest according to deactivated 1,900,000 prepaid lines. 80% of these were generated less than 5 Turkish ARPU Excluding this regulatory impact, our mobile subscriber base rose by 700,000 in 2019. Excluding the impact of regulatory action and involuntary line deactivation, At year end, monthly mobile churn was at our comfort level of around 2%. On the fixed broadband front, our fiber subscriber base rose by 29,000 net additions. Residential fiber ARPU rose at an all time high of 21%. This was mainly due to the renewed offer upside performance and price adjustment. Next slide. We believe that This year, we strengthened our market position by shifting to a more valuable portfolio of higher postpaid subscriber in the total base. Notably, the lifetime value of postpaid subscriber is 3 times that of a prepaid one. The share of postpaid subscriber is at a remarkable 62% as of 2019 end. As such, in the quarter, we gained 984,000 net postpaid subscriber marking a historic high Meanwhile, at 20%, we continue our growth trend in postpaid ARPU. This expected trend was communicated to you in previous quarters. Growing ARPA net addition at the same time confirms the the validity of our smart pricing strategy based on big data. Going forward, we will continue to focus on growing our subscriber base particularly the postpaid company. Next slide. Now a few words on our fixed wireless access products Superbox. Superbox has become a preferable alternative for customer who are less satisfied with ADSL service, particularly where there is no fiber access. Given its user experience, Superbaths quickly gained popularity. Superpark ARPU is twice that of fixed broadband ARPU. This confirms that customer appreciate the value of these servers. At the end of 2019, Superbucks subscriber had exceeded 300,000 10 times last year's numbers. Next slide. And now an update on data usage of usage and 4a half gs subscription trends. Average mobile data usage rose 53% in a year to 9 gigabytes per user. We observe growing data demand from 4a half g as well as non 4a half gs subscriber. The main factor driving this 9 gigabytes usage are greater data consumption among all user and the rising share of 4 and a half year users. Out of 30,700,000 customers signed up for foreign houseg Services, 19,200,000 have foreign houseg compatible smartphones, still indicating room for growth. As of the year end, we had reached 76% smartphone penetration with 87% being 4.5G compatible. There were 1,200,000 net addition of 4 and a half year compatible smartphones. Next slide. I am here for In every action, we aim to create positive experience for our customers to enhance their journey with Turkcell. By analyzing multiple data points, we better understand our customer and their needs. By processing real time customer data, with over 200 scenarios, we get in touch with around 2,400,000 customer every day through different channels. This allows diversify our offers on a segmented and regional basis and make the right offer to the right customer at the right time. All these efforts have been instrumental in customers recommending Turkcell over the competition. Next slide. As already disclosed, we are focused on 3 strategic priorities for the next 3 years. We recorded milestone for each of these during the years. And here are some highlights. In digital services, we proud to launch Turkey's email provider Yannie Mae for customers. Develop in house Yannie Mae offers users advanced security features. DES generated on the platform is securely stored at our data centers. Similarly, BIP multi cloud is offered to corporate and carriers as a secure communication platform. Our customer will be able to keep their data at their own data center. Also, we advanced the use of AI in digital services such as TV, physi and darkly to offer personalization. This has helped to increase their usage. Lastly, we met our target Next is our digital business solution. This business saw 44% growth in 2019 through tailor made end to end IT solution for corporates. A backlog of MXN 1,300,000,000 in existing project is promising for the road to ahead. Our payment service platform, Paycell, is expanding its user base and merchant points. We observed 2 times higher bill payment volume and around 24% higher payment for digital content. ASL card is increasing in popularity generating 4 times higher volume year on year. This year, we will advance our services in these areas and continue to share our performance regularly with the market. Next slide. Let's look at our performance on the international market. Turkcell International generates 8% of group revenue. This operation grew by 33% year on year in Q4, mainly on rising data demand in addition to impact of currency movements. For the full year growth was at 37.5%. In local currency terms, The growth rates were 18% 16% in Q4 and full year respectively. As we began to capitalize radio frequency usage costs in the fourth quarter of 2018, This cumulative impact has led to an 1 off rising EBITDA at 1 at a time. On a yearly basis, like for like EBITDA margin growth in Q4 was at 1.7 percentage point. In 2019, our subsidy in the Turkish Republic of Northern Cyprus saw strong 23% growth with the rising contribution of fixed services and the corporate sector. Next slide. We're not the rising importance of the sustainability in every aspect of our business. And so we take 1st step by pursuing the best practices. Osman our CFO join UN Global Compact CFO task force to share ideas and develop principle for investments for sustainable development. We believe that CFOs play a critical role in ensuring the companies adapt sustainable to practice. Recently, we announced a set of AI principles that commit to the ethical and responsible use of AI. To sell Mark another first with its contribution to these initiatives. Additionally, Trucksa appointed a data protection officer, tasked with implementing effective and focused data management. In order to achieve a better and more sustainable future for all, we are committed and contributed to the UAN sustainable development course. Next slide. On my last slide, I want to share our full year guidance for 2020. In a short, the 2020 guidance is in line with the 3 year guidance laid out at our 2019 Capital Markets Day expecting subscriber and ARPU growth At the rising contribution of focus areas, we target 13% top line growth. Please consider the discontinuation of the spot betting business and expected contraction of financial have an estimated 1.5 percentage point negative impact on growth in 2020. This is already incorporated into the guidance. As to profitability we aim at 39% to 42% EBITDA margin and 18% to 20% EBIT margin. We will continue to invest in our infrastructure while keeping operational CapEx to sales ratio at 16% to 18%. I now hand over to floor to our CFO, Osma. Thank you, Bharat. Now let's take a closer look into the financial. In the fourth quarter, group revenues rose 18.8 percent year on year corresponding to an incremental SEK 1,100,000,000, Of this increase, NIS 990,000,000 comes from Turkcell Turkey, thanks to strong ARPU. For the full year, group revenues rose 18.1 percent year on year to MXN 5,100,000,000. Fixedstar 30 revenues increased by 18.8% contributing R3.4 billion. International subsidiaries contributed R546,000,000, thanks to increased data consumption and the positive impact from currency movements. Meanwhile, due to a decline in the loan portfolio, finance our revenues contracted by 45,000,000 Excluding Consumer Finance business, group growth would have been one percentage point higher. Also our exit from IntelTeq and Azal as in IntellTech operations also impacted the top line negatively by 2 percentage points. Next slide. Overall, the weight of Turkcell Turkey in group revenues increased by 1.5 percentage points to 85.9 percent in the 4th quarter. The decreased contribution from Consumer Finance business was evident in a 1.4 percentage point decline to 3%. Similarly, the impact of this continued betting operation is visible in the fourth quarter picture, leading to a decrease in other segments contribution to the group. By 2.7%. We will continue to see these 2 effects in 2020, which are already factored into our guidance. Next slide. In the 4th quarter, EBITDA rose 23% year on year to 2,800,000,000. The EBITDA margin saw a 1.4 percentage point improvement. The factors affecting the change in EBITDA margin Gross margin decline of 1.7 percentage points, OpEx improvement of 3.3 percentage points, an increase of doubtful receivables of 0.4 percentage points. Within OpEx, G and A expenses improved by 0.2 percentage points thanks to rising revenue and cost control. Sales and marketing expenses improved by 3.1 percentage points, which was attributable to last year's above average levels. Touksdale Turkey was the main driver in margin improvement with its 3.8 percentage point increase. As a result, the quarterly group EBITDA margin was 41.2%. EBIT increased 41.7 percent year on year to TRY 1,300,000,000 with a margin of 20.2 percentage points. Next slide. Now more color on our free cash flow generation capabilities. Our operations generated 10,400,000,000 of EBITDA in 2019, up 19% from the previous year. Besides higher EBITDA, As we completed the bulk of the LT investments, we have increased our cash flow generation capability significantly since the mid of 2018. Accordingly, we generated R2.4 billion dollars free cash flow of this year. Of note, this figure does not include proceeds from Fintur sale. We aim to continue to generate positive free cash flow in the following years. Now let's take a closer look at our texting company's performance. In Q4, our payment services company Paycell continued to the expense its reach and service portfolio with new campaigns and launches. Over 4,500,000 customers made use of Paysa products and services in Q4. Revenue growth was robust at 77% year on year. At Space South, we met our full year target levels disclosed in November. The transaction volume reached TRY 5,700,000,000 with revenues of TRY 252,000,000. Meanwhile, our consumer finance company financed that revenue well done at 18.7% in Q4 on a shrinking loan portfolio. The EBITDA margin improvement by 13.4 percentage points in Q4 was mainly due to a lower cost of funding. Cost of risk rose slightly to 3.2%, still below the market average for general purpose loan, while loan insurance penetration was at 98%. Next slide. Now a few words on our balance sheet and leverage. Our leverage was stable as we made 1,000,000,000 of dividend payment and seasonally higher CapEx. In Q4, we generated TRY 900,000,000 of free cash flow. As of Q4, net debt was TRY 10,100,000,000 with a one time leverage ratio. Excluding the consumer finance business, this was at 0.8 times. This is the lowest in the sector. Next slide. Lastly, I will go on to the management of foreign currency risks. We improved our FX position to long level over the year. We continue to hold bulk of our cashing hard currency as a natural hedging tool. With hedging instruments in place, the share of FX debt declined from 80% to 40% as of the year end. Our net FX gain in Q4 was 17,700,000 thanks to our long position of USD 150,000,000. We aim to keep our FX position neutral in the coming periods. This brings us to the end of our presentation. The first question is from the Hi, thank you. A couple of questions for me, please. Firstly, on the, coverage guidance, if you could just explain why the the range, 16 to 18 in the previous series, I think you were guiding for a more precise number. So what determines whether we end up close '16 or 'eighteen next year. And then a question on the consumer finance company, when again, I guess this is going to be in 2021. Again, does this become a drag on, on working capital? And what is the outlook then for the sort of free cash flow levels for, for 2020 because if I look at your 2.4 generation in 2019, I think 1.7or1.8 was actually driven by the, consumer finance company unwind. So what is the outlook for for free cash flow based on the normalization of the loan book going into 2020? Okay. First of all, for the CapEx guidance, we, I mean, this is mainly our practice give kind of range, between two percentage points. And then during the year goes, we come to the more precise numbers and then we share the exact numbers. So that's that we this is our practice mainly for the cut CapEx guidance. For the financial things, I think the portfolio getting narrow and narrow during the first half of the year. And then we will recover second half of year. At the end of the day, we will have almost even leveled in terms of free cash flow. And so, at what level, sir, do you expect this to, stabilize? Now that I guess we're approaching that that turnaround point? And then do you expect this loan book to grow, in line with revenues or faster than revenues? Or how do you think about that from that point on? I think we're going to end up around 2,500,000,000 Turkish. The portfolio range. And then the growth once that stabilizes, you expect it to grow in line with the top line more or less? First of all, probably we're going to have similar growth in 2020. And then after the 2 times 20, we'll start growing in a mature and regular way, in line with the guidance, yes. All right. Thank you very much. The next question comes from the line of Tagler Ebsieva with Goldman Sachs. Please go ahead. Yes, thank you for the presentation. Can you elaborate on the progress over portfolio simplification initiatives do you see certain upsides across your tower fixed or payment business to somehow crystallize throughout 2020? And secondly, would you expect prepaid subscriber base to be restored in house throughout this year? Thank you. For Cover, join the transaction initiative, I mean, for all parties, we are working hard to find a way. As you know, there are 3 three player on this aspect and it is not easy to come to the final decision. The regulation authorities supportive on the sharing model and we are discussing several models and there are details to be sorted. Yes, we are more optimistic than before, I would say, on the level. Could you repeat the second question? Sorry, I couldn't get the second question. Yeah. Also, a bit of a first question as well. So you mentioned on the tower business, but maybe you can somehow comment on the fixed business and the payment business as well. So any value crystallization there? And secondly, with regards to the prepaid subscriber base, following the disconnection, in Q4, we expect some of that to be back in your subscriber base in 2020. To be honest, these are the subscriber mainly coming from April to 30. So we do see some of them is going to come back or they're going to utilize some of the existing lines So I think it's not 100%. At least 20%, 30% of them will come back during For the other question, it really depends on the market condition. I don't think we're ready to do this. But when the market rationalize, we will start exploring that part. Okay. Thanks very much. The next question comes from the line of Ibrigo Mova with Citi. Please go ahead. Hi. This is Divya calling for this is Divya from Citi. Thanks for the opportunity. I had a couple of questions, and one follow-up on the question that has been asked earlier. First question is on raising you an EBITDA guidance, similar question to Andreas. Why the range is so wide that, I mean, usually definitely wider than, you have been giving in the past, where if what are your assumptions for maybe lower end and similarly, at the higher end of the of the guidance, both for, I don't know, inflation and maybe GDP growth or consumer growth. Then second question is on, Consumer Finance. I just I may have missed it, but you mentioned that you expect the long part for your to start growing again. I just wanted to clarify, whether, that would be growth, supporting your postpaid customer base growth, by the devices that you may be, fund financing. I just or maybe if you could give some insight or would the, driver for the for the growth in loan book again, that would you expect? Yeah. I think that's it. Thanks. Okay. Thank you very much for the first question. I do see that there are some question around the guidance. Let me clarify a little bit on the guidance side why we give such a range. We disclosed our medium term guidance in November during our Capital Market Days. We confirmed this figure for 2. 2020 as well. Please note that 2012 will also be impacted by ongoing slowdown in consumer finance business and the discontinuation of sports betting business, which has an estimated one and a half persons point negative impact. This is incorporated in our guidance. Also 2020 inflation expectation has come down in the market since we announced these targets. Therefore, keeping the same nominal growth target means an improvement in real terms Furthermore, no, furthermore, we expect to see more clarity on local and macroeconomic environment in the upcoming periods, which will enable us a better SSR guidance. For the finance loan business, First of all, as the regulatory authority decision, we do see some shrink on the on the loan area. We already start working on other other businesses. So but we will probably recover after 6 months happened. For the second half, we will start giving credit and loans to fixed line customer, corporate customers, small to medium customer so that we can enable our financial business in wider area with a more portfolio. So we don't expect change on the regulatory decision. So we'll find other ways to grow the business. And we have opportunity in small to medium business. Fixed line business and other other area. And also we are able to grow our subscriber without increasing handset sales. And this is shown in the numbers. So it may not help, but it is not a significant aspect of increasing subscriber base. That's very helpful. Thank you very much. Can I just ask one follow-up question one question on postpaid but the follow-up? It's the strong ARPU growth, that you've reported in postpaid. Even though the subscriber base have also gone, a lot year on year, I think it's over 1,500,000 customers that you've added. What what in in that growth, maybe you could break down for us how much of that is driven by upsell and how much of that is driven by pricing and whether you have been able to put any price increases to, over the existing customer base, whether that's possible and whether this is something that may be happening in there as well. So if I'm assisting postpaid user on the tariff, you would, raise price for me, while I'm still on the same contract. Yes. First of all, there are multiple area that we focus to increase ARPU and increase customer base. We recorded all time high mobile ARPU, excluding mission to mission, by the way, grow up 22.7% year over year in Q4 2019. They were mainly by a favorable customer mix upsell efforts, increased data consumption and price adjustment. Moreover, inflationary pricing policy is a key pillar of our business model and it has played an important role in achieving strong ARPU growth. Due to the contracted nature of our business, our price action are reflected in ARPU with a lag. This has been evident in both mobile and fiber residential ARPU trends since the beginning of the year. We have been communicating our like for like ARPU over 20% in Q2 and Q3. As an early indicator of this performance. For the existing customer price increase, actually we do see such a command from other other people. First of all, we listen to our customer we prefer to focus on our business with the action we take, we are continuously improving our net adds. At the same time, we have better churn. Also, we have better net promoter score. We focus on creating higher value and reach their experience to our customer by offering differentiated product and services. For instance, we offer our customer ARS ProBox product or not satisfied with the quality of ADSL services, particularly in the region where there is no true cell fiber access. For the commitments, I would add an additional things that I think we need to note that commitment can be given in a different format. It doesn't necessarily mean that there should only be based on pricing. They can also be related to the content, providing an offering like data usage, etcetera. Thank you. The next question is from the line of question, if I may, one is on your, one off tax expense, under your other expenses. As far as I know, you had 120,000,000 PL settlement, with the tax authority, that you have disclosed, by the end of December. And in addition to that, there was one other fine from the competition authority. Did you also book that amount in the fourth quarter, that's $61,000,000 amount. That's my second first question. The second question is about the breakdown of your corporate and consumer revenues. You haven't provided the absolute numbers there, but you just provided the, growth figures. Would it be they are testing that your corporate revenues represent like, 18%, 19% of your Turkey revenues that's my second question. And the third question is about your financial expenses or FX expenses, we are seeing a substantial decline on that front, for the first quarter or the first half, could you please provide some insight, cost into recent, payout depreciation and slight pickup in the slab costs Thank you very much. First of all, thank you very much for the question. Regarding tax settlement, dispute on SCT and VAT on bundles and some services for 2016 was settled for 100 2,000,000 Turkish. And this was announced early January 2020. We also settled special communication tax dispute regarding prepaid card sales from by distributing for fiscal years 2015 2016 for 77,000,000 Turkish. These two disputes were previously disclosed in our IFRS report. Regarding 61,000,000 TL competition authority penalty, we decided to take legal action because we believe that we have a case over there. So we didn't book that 61,000,000. For regarding Code similar corporate, to be honest, I think we can share the results. But let me tell you regarding corporate segment, it is 18% of the total revenue of Turkcell Turkey. 18 by the Okay. And the last question on the financial expenses of ethics Moses? Let me give you the word to Osman. He can give more clarification on the financial expenses. As you see in our detailed financials in Q4 where Turkish appreciated more than 5% against US dollar and euro. Our loss on FX was on the normal flat. Actually, we booked 70,000,000 dollars, $17,000,000 profit from FX. It shows that we are not affected by FX movements due to our FX position on our balance sheet. As of the year end, we have about $150,000,000 loan position on our balance sheet. So we are not much affected by these fluctuations. Recently swaps rates are inched higher in the market, but it does not necessarily affect us because we did most of our hedge transaction last year, but it will inevitably affect the new hedge transactions, but we are not in rush to get to the market to do new hedges. So you will see in the first quarter, again, we will not be much affected from this change in the market. The next question is from the line of Vegra Novich Alexander with Renaissance Capital. Please go ahead. Yes, hi. I have a follow-up question on your FX position and the outlook for this year. So obviously you turned into more or less like a neutral fixed position now which is mainly driven by the hedges you have. Do you think you might be considering just exactly increasing the share of your Turkish lira denominated loans and decreasing the natural share of the foreign currency loans just to avoid the cost of the hedges in the future as the interest rates in Turkey are getting more affordable local currency. Do you think it might be the option you're going to use this year going forward if the rates continue to go down? Thank you. Actually, in Turkish Sierra market, it's not always possible to find a long term borrowing opportunity Lira loan market is relatively short term up to 1 year. And as we are investing for the long term, we seek long term funding and long term funding is unfortunately only available in hard currency. So, we will be seeking again long term hard currency loans. But for our consumer finance business, we have significantly decreased the share of FX borrowing and now we are seeking Turkish share borrowing, which is very favorable at the moment. We are always seeking the best opportunities and best ways of funding for our balance sheet purposes. In the remainder of the year, we will again seek long term borrowing at relatively more favorable costs to the company. Okay, got it. And the second question on your mobile business and the level of the competition the mine expect this year. If you look at the subscriber data, obviously Vodafone Turkey is a closing remarket share. Do you feel there might be some push from their side this year to recover the market share, which might be somehow affecting your churn levels and the subscriber base and potential necessity might be offering more affordable status for the customer, or you think they're going to remain more passive player on the market? Thank you. 1st of all, obviously, we don't want to comment on the competition behavior, we more focus on our initiative, our strategy, our focus, higher value customers. But specifically, we do see that this is happening and this has been happening for a while. So, and I do see we are quite ready to such an attack, such a behavior in the market. And we have concrete plan. We have concrete infrastructure. We have intelligent data. And actually we provide more value than the just the mobile business to do to our customers. So I think are we are in a strong position over there. But this is not going to happen. This is already happening, by the way. We have a follow-up question from with UBS. Please go ahead. Yes, thank you. Two follow-up questions for me, please. One on, if I look at your balance sheet and free cash flow. So in 2019, you finally managed to self enter. You had the big unwind of the consumer finance loan company. And, so how does, or do those things, including the fact that you finally broke even on free cash flow organically. Do those things change the way how you think about payout proposals going forward? I. E, can we expect more from management than just the 50% that we've had in the previous couple of years? And then the second question on the consumer finance company EBITDA margin, how does that evolve, going forward, given the falling rates environment, does, is it rational to expect contraction in the margin there as well? Thank you. Okay. Obviously the consumer finance companies unwinding contributed to our cash free cash flow generation. The unwinding amount was around SEK 1,600,000,000, which contributed significantly to the cash free cash flow number, which was BRL2.4 billion for the full year. But going forward, there will be a slower contribution from consumer finance company. Into the first half of twenty twenty, we will see additional working capital inflow from unwinding of consumer finance business. Which is roughly around CHF 400,000,000 to CHF 5,000,000, Turkish. But, from Q3 onwards, we will see growth coming back to our consumer finance business, mainly driven by new businesses, including corporate, and residential segment. And also on EBITDA margin side, we expect EBITDA margin to keep stable in the first half of the year at that fall gradually because net interest margin is widening in this business, thanks to the sharp fall in interest rates. As you might recall, the interest rates, the cost of borrowing in the local market was as high as 23% during the first half of the last year. And now it is below back to below 10%. So it is positively impacting the EBITDA contribution from the company. But as the rate market stabilize, we will see lower contribution due to shrinking portfolio. On the dividend side, you know, our general assembly procedure is to distribute at least 50% of the net income. And looking over the last 5 years, our payout ratio has been slightly above 80%. So given that our free cash flow generation capability has increased over the years, it is very natural to expect 50% to 80% payout given the balance sheets and given the past behavior of the general assembly. So we are relatively more optimistic on dividend compared to previous years, I can say. Maybe feel like you might have. I completely agree with Osman. We hope to see from general assembly to make it such a decision. We have stronger than a strong balance sheet and the capability to pay a month, which is to be approved by the general assembly related to pay action. Alright. Thank you very much. Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Turk Soul Management for any closing comments. Thank you. I would like to thank all of you joining our conference call. I hope everything's going to be okay for the for everyone. Thank you very much. Ladies and gentlemen, the conference is now concluded and you may disconnect your telephone. Thank you.