Earnings Call: Q3 2018

Oct 24, 2018

Good day, and welcome to the Third Quarter 2018 Results Conference Call. For your information, today's conference is being recorded. At this time, I'd like to turn the call over to Horhan Bellak, director in investor relations and mergers and accusations Please go ahead, sir. Thank you, buddy. Hello, everyone. Welcome to QCS First Quarter 2018 Results Call. Today's speakers are our CEO, Mr. Katay Zolo, and our CFO, Mr. Osma Yona, 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. Taizal. Korhan, thank you very much. Afternoon, and good evening, and welcome to our third quarter 2018 results call. We are pleased to announce another set of strong results. Especially in a challenging macroeconomic environment. We continued our growth momentum at the top line with 26 point 1 percent year on year increase to 5,800,000,000. This brings the 2 year cumulative growth rate to 59%. Even with an accelerated inflation level, this represents a real growth after inflation rate of 1414.5%. The key driver of this outstanding performance was the record high mobile ARPU growth of 18% due to successful execution of our digital services focused strategy and upsell performance. EBITDA rose to 2,400,000,000 with a 41.3 percent EBITDA margin. As the download of our digital services reached 130,000,000. The share of Multiplay customers also followed, resulting in 64% of our mobile customer base on triple play and 47% of fiber residential subscribers using our TV services, with 18.20000004.5 compatible smartphones on our network, the average data usage has continued to rise, reaching 7 gigabytes quarterly average. During these better than anticipated 9 months results, we once again raised our revenue growth guidance from the 16 to 18% range to 20 to 22% range, along with a higher EBITDA margin guidance of 39 to 41 percentage points for 2018. Our capital expenditure monitored for efficiency at all times remains on track at 18% to 19% operational CapEx over sales ratio guidance despite sharp Lira weakness. Next slide. Our robust business model has successfully vetted the tough macroeconomic environment of the third quarter. Our ability to create revenues with adjacent products and our focus on the value offered to our subscribers contributed to the yearly mobile ARPU growth of 18% for the quarter. Resilient operational performance is proven again by continued growth momentum and an EBITDA margin of 41 point 3% with a 5.8 percentage points rise year on year. Customer loyalty is intact. As seen in the sector low monthly churn as well as our leadership in the Net Promoter Score. This resulted from our value offerings enhanced by digital services, superior network quality, retention campaigns, and user experience. Our prudent and disciplined financial risk management strategy has protected us in volatile times. Additionally, effective credit scoring and collection mechanisms have allowed us to maintain robust asset quality including our consumer finance business. Next slide. Now more details on our financial performance. On a quarterly basis, with a 5,800,000,000 TL top line and 2,400,000,000 PL EBITDA, we recorded a 41.3 percent EBITDA with our 2 year cumulative growth of 59 in top line and 97% in EBITDA. We achieved higher profitability and even deflated by inflation over the 24 months a 14.5% growth. Real growth. Clearly, Turkish Lira Depreciation and macroeconomic volatility dominated the headlines during this period. Regardless, we generated a net income of 241,000,000 This confirms the efficiency of our long term foreign currency risk management measures and the resilience of our business model. In the 1st 9 months, revenues rose 20.8 percent and EBITDA, 45.9% resulting in a 41.8 EBITDA margin. Operational CapEx as a percentage of sales for the 1st 9 months was 16% in line with our plans. Next slide. Let's elaborate on Turkcell Turkey's operational performance. In the third quarter, we had 37,800,000 subscribers in Turkey with 591,000 yearly net additions. This quarter, we gained 128,000 mobile customers. The postpaid subscriber base continue to grow with 191,000 additions, reaching 19,000,000 in total. Our monthly average mobile churn rate during the quarter was 2.2%. Specifically in the corporate segment, We witnessed the lowest churn rate of the past 13 years. Our tailor made end to end solutions and value propositions for corporates have been instrumental in this success. Our customers hired data and digital services usage and upsell to higher tariffs have led to higher ARPU. Mobile ARPU grew by 18% year on year to 38.7 On the fixed broadband front, fiber, our key focus is clearly gaining ground on ADSL market. Indeed, our fiber business has performed well with yearly net additions of 175,000. 25% of which were gained through our wholesale contracts for other operators. The number of IPTV subscribers rose by 115,000 in a year, and including our OTT TV subscribers, This exceeded 3,000,000. Fixed residential ARPU reached 55.3tl. Superbox our innovative product for wireless home broadband service generates 105 TL ARPU. This product is becoming increasingly popular. Superbox net adds have reached 1 fourth of fiber net adds this quarter. Next one. With our marketing campaigns, we aim to constantly create new motivations for our customers to experience our digital services. In a recent exemplar, we have participated in the government initiated nationwide all out war against inflation by doubling data quota of our customers It has also been instrumental in engaging our customers with our digital services as well as customer retention. In addition to ever more relevant digital services, the quality of network, the efficiency of our sales channel, and overall brand image continued to impact positively in the eye of our customers. Our Net Promoter Score not only increased in this quarter, but we have also widened the gap with our competitors. Next slide. The key driver of our strategy demand for data and digital 5.4 gigabytes per user in the third quarter. The main driver of this increase is the rising consumption of 4.5g users, which reached 7 gigabytes per user. Out of 31,400,000 customers signed up for 4.5G services, 18,200,000 have 4.52 compatible smartphones. The room for growth here underlines the potential for more data used by a wider customer base as 4.5g users consume twice as much data in consumption to comparison to non 4.5g users. To tap this potential, we continue to increase the penetration of 4.5g smartphones on our network. Accordingly, smartphone penetration reached 74%. Out of which, 79% are 4.5G compatible. This is at 11 percentage points increase in a year. The recent regulatory change limiting installments for device financing coupled with currency devaluation will significantly decrease smart device sales in the market. For us, This is likely to have a limited impact given the already high level of smartphone penetration on our network and ever increasing demand for data usage. Going forward, we also expect customers to shift to mid and low segment devices available in our sales channels. Next slide. In the third quarter, customer engagement through all our digital services continued to increase. In addition to 32 minutes of GSM calls, the call time for voice over IP customers on dip increased to 30 minutes. While a user on average spends 8 minutes interactive on dip, we see a dilutive impact on average usage levels as the user base continues to increase. Our customers spend 60 minutes on TV plus twenty one minutes on reading very slick, magazines, and newspapers, and 48 minutes listening to music on physics. Plus an average PC user today listens to one full album of 12¢ per day. We continue to advance our digital services with new features this quarter as well. Next slide. Now let's look to the KPIs of our services this quarter. From this period onwards, we will be disclosing our 3 month active user figures to better reflect quarterly performance. With 30,300,000 downloads to date, deep active users increased from 8,600,000 to 9,700,000. 114,000,000 messages per day are sent through BIP marking a new record high. BIP ranked number 1 application downloaded in app stores for the 6 consecutive days in October. UpCall, which combines an enhanced calling experience with secure phone book digitized 2,000,000 calls per day. The leading digital publishing platform dergilics with expanded content has 13,000,000 active users. Nearly 110,000 magazines and newspapers were read per day this quarter. Total PC downloads reached 19,300,000, where over 7,800,000 songs are streamed on a daily average. 36 live concepts were broadcasted on Fizzy this quarter. We are proud that CIC Now is equipped with accessibility features for division impaired as well. 2,300,000 active users on our TV plus application has 2,600,000 session logins per day. This quarter, we have added bundesliga, the German's football league to our sports content exclusively for TV plus customers. Lifebox, our personal cloud application, has 2,000,000 active users with 36 objects uploaded per person per day. Our key tool to digitize connection with our customers, my account, has 18,600,000 active users, generating a 32% greater ARPU My Account users enjoyed this user friendly access to Turkcell's online platform. Yani, our locally developed search engine, has been downloaded over 6,500,000 times since its launch just a year ago. Today, Yannikos 1,800,000 search inquiries per day. Our payment platform paycell hosting several texting solutions has 4,800,000 active users, with transactions worth of 1,500,000,000 TL in Q3. The application has 1,900,000 registered credit cards. Our fast log in service enabling secure and seamless signing to mobile apps and online websites has 12,200,000 registered users. Fast login is integrated into 31 services through which around 182,000,000 logins have been facilitated to date. Last but not least, our gaming services including Playcell and deep gaming has reached 9,200,000 users in Q3. Next slide. Our communication and lifestyle experience platform bid has probably been developed using internal resources in Turkey. With a significant hike this quarter, Total bit downloads reached 30,300,000, 2,700,000 of which were in global markets. Ukraine tops the list over 650,000 pound loads followed by Saudi Arabia and Germany. Gibb's first global advertising were broadcast on digital screens in New York Times Square during the leak of the United Nations General Assembly in September, accelerating the global communication of our flagship service. Our initial target is to reach 25,000,000 global downloads of bid and to register 1,000,000,000 downloads of overall digital services over the next 3 years. Next slide. Let's take a closer look at Lifestyle, our digital only offering, built on our digital services and mobile data platform. Last quarter, we introduced a tariff creation option for lifestyle users who are now free to choose digital services other than tube sales, designing their own tariffs. Field by this new model, our lifestyle subscribers have doubled this quarter again. Reaching 1,600,000 by October. 55 percent of postpaid lifestyle users are new to Turkcell. Lifestyle users are consuming 8.6 gigabytes on average. A lifestyle subscriber generates 1.3 times the ARPU of a Turkcell customer. The churn rate of Lifecell customers is 40% lower than that opts average to sell customers. Next slide. Financell, our consumer finance company, continued steady growth this quarter with a 52% revenue rise, more than tripling net income year on year. This was mainly due to portfolio growth, higher insurance services revenue, and 1 off gain from swap transactions. Funham sales consumer loan portfolio reached TRY 4,800,000,000, including the contracted handset receivables of Turkcell Total receivables from handset financing rose to 5,200,000,000 during the quarter. Financell has portfolio of 4,700,000 loans. The average ticket size of which is approximately 1600 TL. Consumers pay 91 PL per month on average, with over 95% also opting in for add on loan protection insurance. Thanks to our steep credit scoring, cost of risk remained stable at 2.2% as of September, despite the challenging macroeconomic environment. As discussed before, the regulatory changes of September has limited the financing installments for telecom devices to 6 months across all channels. While this will have a substantial impact on the number of smartphones sold in the market, along with the snow slower renewals, we expect no impact on the level of data consumers. We expect the resulting disposable monthly budget of our consumers to create more room for service revenue growth. Also, the potential of de leveraging of financial will enhance Turkcellgroup cash flow generation. Next slide. This brings us to the Turkcell International's performance during Q3. Truckshall International generates 7.3% of our group revenues. Our operations grew by 55.4 percent year on year to 424,000,000 PL, an EBITDA margin of 35.5 percent. Lifecell in Ukraine contributes 65% of our international business. Fueled by the launch of 4.5 g services, quarterly mobile data consumption per user more than doubled in a year. Accordingly, Lifecell revenues point 62.6 percent in TL terms. The EBITDA margin came in at 41.8%. The 3 month active 4.45 to users expanded by 50% this quarter as the network roll out continued. In Belarus, the revenues of this rose 61.6% with an EBITDA margin of 16.1%. Higher data and digital services usage with 4g led to revenue growth. Digital Magazine, Music TV, and gaming services are the key contributors in Belarus. This quarter, we saw the launch of the new kids game platform available to best subscribers. Our Turkish Republic of Northern Cyprus operation, Jose Krogl, saw 12% year on year growth with an EBITDA of 35 percentage points. Next slide. Considering the strong 9 month performance, we revised our 2018 top line guidance upwards. From 16% to 18% range to 20% to 22% range. And we also increase our EBITDA margin targets from 37% to 40% range to 39% to 41 percentage points. As to our CapEx budget, We have taken several actions, including advanced payments at lower exchange rates, renegotiating with our suppliers. And reevaluation of entire CapEx program to mitigate the impact of TL devaluation. Accordingly, we retain our operational CapEx sale ratio guidance at 18% to 19%. I will leave now to leave the floor to Osman for the financial overview And before he starts, I would like to also congratulate him as his terminal appointment as chief financial officer, Osman, to you. Thank you very much, Khan. There are a couple of things I should highlight regarding the key components of our business model agents, which enabled us to weather the tough macro conditions and to 6 Sigma events in the financial markets we have experienced. First of all, we have been determined in implementing inflationary pricing over the past few years which we consider the key to sustainable growth and profitability margins in an inflationary environment. Our proven track record in this regard evidenced by our Aker growth versus consumer cards increases. The former has always been at at a higher level, despite its latent impact given a contracted customer base. We are more selective than ever in our new projects and investments in the latest opportunities with the most utmost quickly given the prevailing higher cost of capital. Secondly, we have we have prudent financial risk management mechanisms in place. Accordingly, we have engaged in several hedging instruments shortly after we secured the financial debt. This helped us convert the majority of our FX debt to fix array TLBET, eliminating currency, maturity, and interest rate risks. Furthermore, we carry cash enhancement hard currency as a natural hedging tool. And thirdly, we have started liquidity position with a 1,500,000,000 US dollar equivalent cash in foreign currency sufficient to cover debt service including interest for the next 3 years in addition to committed credit lines. Next slide. Now let's take a closer look into the financials. In Q3, group revenues were up to 6.5% year over year, corresponding to incremental 1,200,000,000. This increase is mainly comprised of 916,000,000 from Turkcell Turkey on the back of strong output 151,000,000 PR from Tucson International, and 86,000,000 PR from Turkcell Consumer Finance. ADTA rose by 46.6 percent year on year to 2,400,000,000 with a margin of 41.41.3%. This was mainly due to historic rising revenues and lower G and A expenses. Next slide. Now I would like talking about our balance sheet and leverage details. As at the end of the third quarter, our net debt position was at 13.2 with an EBITDA ratio of 1.83 times. Excluding our consumer finance company's loss, Our telco on the net debt was 8,400,000,000 with a leverage of 1.23 times. Our net debt position in Q3 saw an FX impact of 2,300,000,000 and the dividend payment. Next slide. Now I will go into the management of, foreign currencies. As stated before, as a natural hedging tool, we hold 100% of our cash enhanced in our currency. In addition, by using hedging this unit, the share of ethics in our debt at the end of the quarter falls from 85% to 43%. Our short FX position was at $255,000,000 by the end of g to 3rd quarter within our comfort zone. In this quarter, we observed extraordinary circumstances of 31% salary appreciation against Lira yet due to our consistently prudent risk management policy, we have been able to limit our net of tax loss to 716,000,000 which otherwise would have been 4,300,000,000 without the FX effect on our balance sheet and the hedging instruments in place. Recently, we have observed a more stable macro environment and Turkish share appreciation. Yet, we will remain cautious regarding our financial risk management and continue to keep our FX risk at manageable levels. Let us also remember that we expect to complete the future sale process and received nearly 400,000,000 cash for our stake in the near term. Under Air Force News, this is not currently affected on our balance sheet, nor in our NetFX position. This is the end of presentation, and we are ready to take your questions. Thank you very much. Thank you. To participate in our within Q And A, take your questions and ask a question, text area then click the submit button. Thank you for holding until we have our first question. Our first question comes from J. B. David JPMorgan. Please go ahead. Good evening. Thank you for the opportunity and congratulations on the results. Two questions from my side. So just coming back to the inflationary environment, a question there, if I may start. So you presented a very strong message on your historic pricing power and ability to offset inflation And at the same time, you've, highlighted a commitment to supporting the government initiative around, containing inflation going forward. So really it's about the forward looking view of Turkcell around pricing and how you expect to balance inflationary pressures in the market with supporting this government initiative. And then, would be more would would be focused around the net debt. So a net debt up by about 3,000,000,000 Turkish rail in in in the, sorry, lira in in the period. And I'm just trying to understand exactly what the drivers of that increase in the lira debt is. I mean, obviously, FX is impacting, flows is positive in the quarter, and it looked like the FX loss for the quarter was was only around 700,000,000. So maybe you can just help me understand that that movement in the lira debt? Thank you. JP, first of all, let me start with the second question you have. It is purely the foreign currency impacts on the debt. And, you know, that's that's practically a simple, driver of the 3,000,000,000 increase in our net debt position. Okay. And of course, if you could give us a payment as well, please also take that into consideration and try to reconciling the differences on the cash movements. Now with regard to your first question about the inflationary environment, our commitment to development in and are also disciplined approach on pricing. These are not mutually, exclusive events. If you think about the way we acted, in terms of supporting the government's initiative in terms of containing inflation was actually towards increasing the supply of data. Not towards reducing our pricing. And, frankly speaking, I think the right way to challenge, the, current conditions about inflation is to move towards more affordable entertainment platforms and make it available even more. We see this as a great opportunity to drive the usage levels in our digital services. And actually, we do not see an impact or any diver from our disciplined pricing actions Our next question comes from Hervehill HSBC. Please go ahead. Yes, good afternoon. Thank you. I just wanted to question on my side. The first one is I noticed you have quite good growth in mobile ARPU, but much less. So on the residential fixed line, only single digit growth. I mean, in light with some of the tariff increase, we've seen with one of your competitors, especially on broadband. Should we expect an accelerated increase of ARPU for your residential fixed line? Or do you think it will still stay in this low single digit growth? And the second question is regarding, do you see any impact looking forward already in term of bad debt. I mean, with the macro environment getting tougher, Is there any impact you think that may come not only on the consumer financing, but also in terms of the ability to be played on time? And as a potential risk associated as well with payment on consumer financing. Thank you. Alright. Thanks a lot. Actually, the ARPU increase on the fixed business. Is impacted also by the change of taxation a little bit. But despite that, as you can imagine, we are not the market leader in this particular segment, And of course, the prices are mainly set by the, ADSL provisioning of 2 telecom. So this is a market where we are trying to bring innovative products. And as we have noticed, the innovative product we have in terms of fixed wireless access has almost an ARPU of twice the average fixed business. And we are focusing mainly on fiber and fixed wireless access other than the commodity ADSL business. So you should expect a better performance moving onwards on the ARPU side on the fixed side as well from us. Do you think that could reach double digit in in the coming future or not? Yes. Yes. And Yes. It should. And you think that could be, reachable, in a 12 month period, or My expectation is to reach the same levels of performance on fixed business with our new line of products on fixed wireless access as well as fiber business. I will not comment on the ADSL side, which suffers from heavy price squeeze in terms of wholesale and retail markets. Our next question comes from Alex Khalhige, Renaissance Capital. Please go ahead. If I can go back to the inflation question, as far as I understand your answer, I can basically to increase to increase revenues mostly through consumption. Should we really feel that after this massive increase in inflationary pricing at the same your side in Q3, you're still looking forward to much more moderate increases, of your pricing. Second question with the same regard is that when do you see the inflation is actually hitting also on the cost side, when the wages are going to be adjusted it and when other maybe cost items might be going up. So what sort of inflation and refresher on the cost side you might seeing in the beginning of 2004, 2019. And, lastly, maybe just to understand on your hedging positions, the duration of the hedges. I mean, are these, basically steps for the entire duration of the debt instrument, or do you need to roll over the hedges at some stage. Thank you very much. Okay. So in terms of the inflationary actions we have taken by doubling the quotas of our customers. Again, I see this actually as a you know, a mid term, a great opportunity for us to get more customers and more usage. Now our position in terms of, inflationary pricing has not changed. That means any impact on the cost side as well as the overall pricing levels in the economy will be reflected in our pricing as well immediately after, you know, we have this 3 months of special, campaign period. So we feel very comfortable in terms of continuing our disciplined approach to pricing on that side. Now with regard to hedging positions, I will leave it actually to Osman to answer the question. Alright. All cash flows of commands, including coupon and interest rate payments are fully hedged. Don't need to roll over any none of our hedges. So for the entire duration? Yes. For the entire duration, including all coupon and interest rates in. Okay. Understood. Thank you. Our next question comes from Slava with IRF Goldman Sachs. Please go ahead. Yes. Thanks for the presentation. A couple of questions. Firstly, maybe it's a bit premature to ask, but is there willingness of the management to adjust the, upcoming dividend recommendation on the Fed flows. And secondly, maybe you have any update on the Fintur sale. Thank you. Okay. So, Swala, thanks a lot. We have no change in our dividend policy. Our dividend policy remains at 50%, minimum 50% of our, net income. And, there's not, anything to report at this particular time. It's regard to the center. We are progressing on our, divesting policy of, fintech as, also CEO of Kenya has commented on his quarterly, update last week. The process is ongoing and on track. And I will not be providing any more information on this, but, what I can tell you is it is in line with our expectations and we will let you know if there are any new news on that. Ladies and gentlemen, I would like to remind you if you have any further questions, please press 1 on your cell phone keypad participate in our written Q and A type your questions into the ask a question text area then click the submit button. Our next question comes from Suzette Pagon, Bank of America, Merrill Lynch. Please go ahead. Yes. Hi. Thanks for the call and for the opportunity to have 12 persons. I have a few questions. Steve. First one, I wanted to understand if the price increases that you implemented in Q3 have had an impact on the, on the revenue growth since, I think most of them have been implemented in, in September. 2nd, I wanted to understand why you didn't take the opportunity to, in 3.0 in term out given the in purchase of this offer to deliver. And the third question, can you share some KPIs on, on the, game, gaming users, for example, the arc level of the, I think you mentioned 9,000,000 users. Thank you so much. K. So, you know, the price increases is something that we have been doing on an ongoing basis. So there is no specific action that particularly have taken in September. It has been an ongoing process. And as I mentioned, you It has been going on actually for the last sixteen quarters that we have been on these calls, and it will continue to be in a disciplined approach. But what I would like to mention you, our price increases are coupled with adjacent products. Our customers are not just consumers of calls and SMSes. They also, consume music services, TV services, messaging services, cloud services. Our combined value propositions have not been even more affordable, but we're able to deliver us higher ARPU. And lower churn. So please keep in mind that we are not just raising prices on a single commodity product. But providing a comprehensive value proposition on portfolio of products. If you would just like, you know, from a, a price increase perspective, you know, it is will be very difficult for you to decide whether that is the secret also for our strategy in digital services. With regard to Playcel and deep gaming, your other question, in Q3, The distinct number of subscribers who have been engaged in these platforms is 9,200,000 And, we have also bundled some of these products into our packages as well. And next quarter, I will also report you in terms of how many new subscribers with, you know, gaming packages involved. We have also introduced a special backgammon game application where we have close to 190,000, subscribers And the average number of people who are engaged in this particular game is already 40 minutes. And this 9,200,000 subscribers distinct users represents almost SEK 4,000,000 to SEK 9,200,000 increase, more than doubling in the last quarter. Thank you. You also asked the second question which I couldn't get. If you repeat that as well, I would love to answer that. Sure. Thanks. Just wanted to understand why we didn't take the opportunity to revise your midterm outlook, based on this, very strong numbers? Well, I think it would be a wise for us to come back to you on that one next quarter. I think that would more prudent thing to do. As you may have noticed, we have been not raising our guidance on possibilities, but when it becomes probable, and we will do exactly what will be the picture next quarter's call. I think I missed one question, Eric, that you have asked about the collection performance. And as we have indicated, you know, the quality, the cost of risk on our portfolio does not seem to show any fluctuation, even at this particular time. Ladies and gentlemen, I would like to remind you to participate in Our next question comes from Elia Bragi Nova City. Please go ahead. Hello. Hi. Thank you for the opportunity. I had a quick question, please, on a public hedging. You mentioned that you have hedged, some of the payables and, also, or made prepayments and offered, have renegotiated, some of the payments. Just wanted to ask about how far in advance have that had, that have that been done? Is it, only for this year, CapEx or, the would that apply also to some of the, the 2019 investments that you're planning to do? So, Delia, thanks a lot for the the question. You know, this, these actions that we have taken actually are not unique only to this year or at this time, we have been applying these techniques in the past as well. So this will cover some of the investments that we will do this year, but also it covers, of course, 2019 as well. Okay. Thank you. And may I just also follow-up on the, price, adjustments or value adjustments that you have done in over, to address the inflation, requests from the government. Does the for this adjustment done only to contract, contract packages or across the board? And also, is there, have you done it in a way that you would still expect ARPU growth? Or it the reason I'm asking, for example, if I used to have an, if I used to be on the package, which is and next year, for example, I'm in more difficult financial situation, and I'm reviewing my costs. And now that I'm seeing that facility, right, and get the same value. Is this how I mean, is this would that be available to me as a customer? Based on what you have done in October? So let me clarify one thing. We have not done anything on the request of the government. Government has initiated, the campaign. And we have used that campaign, as an opportunity to create a retention campaign to double up everybody's quota without exception. Actually, this refers to 4.52 users and anyone We would shift from t g to 4.5 g. We'll get the advantage of that. Now this is a campaign model that we have used in the past. And the result of such campaigns have always led into a higher usage, higher retention, and higher loyalty. So we do not see this as a prohibitive factor in terms of neither the ARPU levels or the pricing decisions that we will take in the future. That's very helpful. Thank you. Thank you. We have no other audio questions. Dear speakers, we can now switch to the written Q And A. I think there is one more question that I see from the system in terms of hedge accounting, I will actually have Osman to respond to that as well. As you know, we have been using hedging the achievements as part of our financial risk management strategy, and we are hedging a company, for 10 weeks. And that's why we started, implementing KJA County rand tail risk started to arise, especially starting from July. And we will continue to implement such a country going forward. Any other questions? From the network or on voice. We have very much for all the questions and standing by with us, and looking forward to seeing you in the next quarter's call. Thank you. Bye bye. This concludes today's conference call. Thank you for your participation. You may now disconnect.