Earnings Call: Q1 2018

Apr 24, 2018

Good day and welcome to the 1st Quarter 2018 Results Conference Call. For your information, today's conference is being recorded. At this time, I would like to turn the conference over to Coron Bellic, Director of Investor Relations And Mergers And Acquisitions. Please go ahead, sir. Thank you, Tiffany. Hello, everyone. Welcome to Turkcell's first quarter 2018 results call. Today's speakers are our CEO, Mr. Kantar Zulu, and our CFO, Mr. Belantakshu. 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. Tarzol. Thank you very much, Corhan. Good afternoon, good evening, and welcome to Turkcell's first quarter 2018 results call. We have had a strong start to 2018 with a record top line of 4,800,000,000 up by 17.5% year on year. This brings the 2 year cumulative growth rate of 48%. EBITDA rose 44.4 percent to 2,000,000,000, including new IFRS impacts, the EBITDA margin was up by 8 percentage points voice data and at least one digital service and 46% of fixed residential subscribers use our TV services. The increasing data usage trend for 4.5G users have continued reaching 6.1 gigabytes in March. This quarter, we marked a first by testing 1 gigabit on our 4.5G network, demonstrating its capabilities. Meanwhile, we continue to increase 4.5G compatible smartphones in our network, reaching 16,000,000 with quarterly addition of 1,000,000 new devices. On March 29, the Turkcell General Assembly was held and the decision to distribute 1,900,000,000 of dividends was approved. The distribution will be done in 3 installments in June, September December. In early April, we successfully issued a new $500,000,000 bond with Since our last issuance in 2015, we have remained the sole Turkish company to have tapped the bond market with a 10 year maturity note. Next slide. I will now elaborate more on the financial results of the quarter. We achieved a revenue increase in high teens reflecting continued growth momentum. Moreover, our 2 year cumulative growth, a metric that we used to normalize the impact of 4.5G reached a new high of 48% in Q1 which trailed at 35% to 40% range in 2017. We have also achieved record EBITDA exceeding 2,000,000,000. Operating leverage as well as reorganization of sales channels and accretive EBITDA by Financel are the main contributors to the organic growth of EBITDA. This quarter, we adopted new IFRS standards into our reporting which Bhulance will elaborate in detail. Present Receivables Management and decreasing churn resulted in higher than initially anticipated IFRS impacts on our Q1 financial results. Considering the impacts on the remaining quarters, we are keeping our 2018 EBITDA margin targets at the 37% to 40% range. I must highlight that IFRS impacts on our financials are potentially higher than our peers due to our strong operational results and metrics. Having completed the bulk of 4.5G investments, our operational capital expenditures in Q1 resulted in 11.5 percentage points CapEx to sales ratio with a 1.7 percentage points reduction versus Q1 of the similar period last year. Next slide. Let's elaborate on Turkcell Turkey's operational performance. In the first quarter, we had 37,300,000 subscribers in Turkey with 1,600,000 yearly net additions. This quarter, we gained 536,000 mobile customers Of those $382,000 were prepaid $155,000 were postpaid. Accordingly, our postpaid subscribers represent now 54% of our total mobile subscriber base. Rising customer appreciation, retention campaigns, and the added value of our digital services portfolio resulted in a mobile churn rate of continued to grow with 44,000 net additions. The number of subscribers currently enjoying the TV plus experience rose by 29,000 this quarter. Mobile blended average revenue per user in Q1 grew by 10.2 percent to 33.60l. Successful execution of our digital services focused strategy upsell performance, price adjustments, increased share of Triple Play subscribers and the larger postpaid subscriber base have all supported the rising ARPU trend. Fixed residential ARPU rose 4.1% year on year due to increasing multi play with TV users. Next slide. Let me provide further details on data and digital services. The main drivers of our strategy and growth. Turkcell Turkey's strong performance is mainly due to demand for data and digital services boosted the growing 4.4 gigabytes per user in Q1. The main driver of this increase is the rising consumption of 4.5g users, which reached 6.1 gigabytes per user in March. 4.5g users consumes two times more data than the other users. Out of 31,000,000 customers signed up for 4.5g Services only 16,000,000 today have 4.5g compatible smartphones. This indicates that we still have a potential to double the number of 4.5G users on our network. Tapping into this potential, we have been adding almost 1,000,000 new 4.5G compatible smartphones to our network each quarter and this quarter we saw the continuation of the same trends. Next slide. Let's look at our 10% year on year to 2,800,000,000 in Q1. This growth was fueled by higher mobile data usage, rising smartphone penetration and the larger customer base. The revenues from digital publishing, TV plus, Fizzy, Lifestyle and other digital services have also contributed to this growth. Accordingly, data and digital services revenues the largest contributor accounted for 67 percent of Turkcell turkey revenues in Q1. Next slide. In Q1, Customers increasingly preferred our services and multi play ratios continue to rise. 59% of our mobile subscribers used at least one of our digital services, with a 16 percentage point rise from 42% in the first quarter of the same period last year. Rising 14 percentage points year on year, 75% of our mobile revenues are from triple play customers. These customers on average generate 3 times the ARPU of a single play customer. On the fixed side, nearly 46% of every 100 fiber residential subscribers have subscribed to our IPTV services. Next slide. Reflecting our 14:40 minutes vision, the number of minutes in a day aimed at positioning ourselves to meet all communication and digital service demands, we continuously monitor customer engagement levels. Currently, in addition, to 31 minutes of GSM calls on our networks. Our customers spend 56 minutes on the TV plus application watching TV 26 minutes reading Dargillik, which is on our digital media publishing platform, 23 minutes listening to music on our music platform, Fizzy, And the call time for voice over IP customers on BIP, our instant messaging platform, is an additional 35 minutes. We aim to introduce new services as well as increase the time spent on existing services through new features and offers. Next slide. Look at the key KPIs of our services. With 19,300,000 downloads to date, BIP has 4,400,000 active users as of end of Q1. BIP marked a first for the sector by launching domestic money transfer without the need for a bank account. DIP now also enables international money transfers in 57 countries. UPCO, which combines an enhanced calling experience with secure phone book reached 2,700,000 downloads, 401,000 customers actively use this service on a daily basis. Our digital publishing application, Dargillik, reached 5,300,000 downloads, a monthly average of 7,300,000 customers enjoys the benefits it offers. The application now is available in Northern Cyprus and Germany with local content. Over seven million songs are streamed on a daily basis on our music platform, Physi, which has 1,900,000 active users. 1,400,000 monthly active users on our TV plus application has 2,500,000 session logins per day. Lifebox enhanced by face recognition, object and venue recognition technology has 1,300,000 active users, this is our consumer cloud offering. My account, our key tool to digitalize our connection with our customers currently has 19,200,000 monthly active users. My account users have a 33% greater ARPU and less churn. Search engineering, which enables 1,200,000 search per day has registered 4,300,000 downloads to date. Next slide. Let's have a deep dive into Lifestyle. Our data only offering built on our digital services and mobile data platform. Our digital brand Lifestyle with its unique digital services proposition has now 468,000 subscribers. 2 out of every 3 postpaid lifestyle users are new customers. And we welcome them to our world of enhanced digital experience for the first time through Lifestyle. A Lifestyle subscriber generates 1.5 times the ARPU of an average Turkcell subscriber. Digital services data usage of a live cell subscriber is four times that of a Turkcell subscriber. Lifestyle users consumed 50% more data than an average 4.5G users reaching 9 gigabytes in March. Next slide. Gaming is an attractive market which we had started to serve with deep gaming. This quarter, we took another step with our new platform Play Our aim is to become the largest gaming Playcel recently launched is a safe zone for kids up to age of ten. Playcel with hundreds of games exceeding 700,000 unique visitors in a very short time. In addition to 1,200,000 users of Bit Gaming, This number brings our total gaming customers to $1,900,000 in March. Gamecell and Kaffinic The gaming platforms for teenager and adult segments, respectively, are coming soon. Next slide. Looking to our techfin services. Financell, our consumer finance company, continued its steady growth in Q1 with an 82.7% revenue increase and more than doubling net income year on year. Net income increase was mainly due to portfolio growth insurance services revenue and increasing net interest margin. Funancells customer loan portfolio reached TRY 4,400,000,000 including the contracted handset disables of Turkcell Total receivables from handset financing rose $100,000,000 during the quarter. The $100,000,000 asset backed securities issued in February help reduce additional working capital needs. We plan for a further TRY 100,000,000 issuance in Q2 and ultimately a total up to 500,000,000 TL in 2018. Paycel, our mobile payment services company that offers differentiated payment options, is seeing traction from 5,000,000 customers. Users registered 1,400,000 credit cards on Paycell app in Q1. The app itself has seen a doubling of downloads reaching more than 800,000. We note a quarterly transaction volume of 175,000,000 TL. Paycell services Already available in the Turkish Republic of Northern Cyprus will also be introduced in Ukraine. Next slide. This brings us to Turkcell International performance in Q1. Turkcell International generates 5.9% of our group revenues. Our operations grew by 12.6 percent year on year to $279,000,000 in TL Q1. With an EBITDA margin of 33.2 percent. Lifecell in Ukraine contributes 60% of our international business. With the rise in mobile data services, life sales revenues climbed to 5.1% in TL terms. EBITDA margin came in at crane lifestyle was awarded a total of 30 megahertz frequency band for which it already paid nearly $70,000,000. Including the conversion fees. Lifecell is the 1st and only operator to offer 4G services in all 24 Oblast City Centers in Ukraine. In Belarus, best revenues rose 23% with an EBITDA margin of 18.2 percent. Higher data and digital services usage with 4g led revenue growth Digital Magazine, Music TV and gaming services are the key contributors to digital services revenue. Our Turkish Republic of Northern Cyprus operation, Kuzay Kripostruxcell saw 20.2% year on year growth with a 32.4% EBITDA margin. In Q1, we added 5 Northern Cyprus newspapers to our digital publishing application. In Germany, we rebranded Turkcell Europe as Lifecell Europe in line with our global digital experience provider strategy. Through Lifecell Europe, we introduced our digital music platform, Fizzi, digital publishing app Dargillik, and also personal cloud application life bots to the German market. Next slide. In February, we unveiled our subsidiary, lifestyle ventures to a global audience in Barcelona at the GSMA Mobile World Congress. We have positioned live cell ventures as the franchise holder for our digital services for other operators around the world. The aim to act as a digital enabler to other operators. We have already signed our first agreement built mold cell in Moldava for life box and we are about to finalize our talks for BIP. Data sovereignty is a rising issue. Our digital services, which are available through Lifecell Ventures give other operators the capabilities to control and process locally created data in the countries that they block. We view this as a vital aspect of our digital internationalization strategy. Next page. On March 14, we hosted a Capital Markets Day in Istanbul with the participation of 340 guests where our executive management team delivered our mid term strategy. Meanwhile, the guests had the opportunity to hear the macroeconomic presentation given by Murat Chatingkaya, the governor of the Central Bank of Turkey. At the meeting, We announced our upwards revised midterm guidance. We now target revenue growth of 14% to 16% and an EBITDA margin of 37% to 40% and operational CapEx over sales ratio of 18 towards 16% over the next 3 years. We have also revised our 2018 guidance previously disclosed with our Q4 17 results. Looking at our Q1 performance, we are confident of meeting our targets. Next slide. On March 29, we held annual general assembly meeting for the year 2017. At this meeting, shareholders approved the distribution of TRY 1,900,000,000 dividends. This corresponds to 6% dividend yield for 2017. Upon completion of the payments in 3 installments, we will have distributed 60% of our net income, cumulatively since 2010. We are happy to fulfill our dividend policy and our promise to our shareholders. Meanwhile, 3 representatives of our major shareholder Turkcell Holding have been elected to the Turkcell Board of Directors. We appreciate both of these decisions and we believe favoring all of our shareholders. I will now leave the floor our Chief Financial Officer, Blant. Blant? Thank you, Gandhi. Good afternoon and good evening to all parties. Let's take In Q1, group level was 17.5 percent, year on year to 1,800,000,000. This was mainly from the higher data and business services revenue of Turkcell Turkey, the 8 additional 96,000,000 shares from a consumer finance company and the incremental 21,000,000 TF1 to sell international. EBITDA rose by 44.4% year on year to 2,000,000,000 TL with a margin of 42.5%. Operating leverage as well as the player realization of sales channel and accretive EBITDA by Finance that are the main contributors to the organic growth of EBITDA. In addition to the organic growth, IFRS 91516 chains made a positive 323,000,000 TR contribution to this price. The contribution of IFRS change to our financial is stronger than our peers. And this difference is mainly due to prudent receivables management and decreased return. Operational performance impact on organic EBITDA as well as on the IFRS change led to a nearly 2 percentage point margin expansion. This result, it was confidence that we will fulfill our targets. Next page, In this quarter, net income rose 9.2 percent to 501,000,000 The $600,000,000 to $2,000,000 higher EBITDA was partly offset by a 351,000,000 higher depreciation and amortization expenses, mainly due to IFRS 15 and 16 impacts amounting to 1,000,000 TR. Net income was also impacted by higher interest expenses related to higher loan amounts compared to last year. Due to Turkcell Finance company and the 64,000,000 tier widening FX losses after the impact of swap contracts. Next page. Now, I would like to talk about our balance sheet and leverage details. Our group net debt at the end of quarter was RMB9.4 billion, which has leverage of 1.5 times. Meanwhile, our telco in the net debt position was 5,000,000,000 TLs 0.8 times of daily pay. The TRY 1,500,000,000 while the Intalcon net debt was mainly resulting from due payer goods related to the CapEx payment Q4 2017 and frequently used fee payment for prepaid subscribers. Next page. Globally invested confidence in 2 cells as a gain confirmed by the outcome of a 10 year eurobone issuance method. We are pleased to see listed on the Irish stock exchange, our USD 500,000,000 issuance had a 5.8% coupon rate. Since its stock issuance in 2015. Turkcell remains the only Turkish company to have tapped the quarter corporate bond market with a 10 year maturity note. This is the only this is also the only Turkish issuance in 2018 with investment grade rating. Next slide. Let me give you an overall summary of Arcon's consolidated cash flow. The major items of the quarter include an EBITDA of 2,000,000,000, capital expenditures, 700,000,000 to 1,000,000,000 of which 530,000,000 was related to Turkcell 30. Net interest income of 181,000,000 Net change in borrowings of $691,000,000. Main items in other cash flow are $1,200,000,000 decrease in trade payables 545,000,000 tier frequency usage fee paid for prepaid customers and other tax payments and $286,000,000 increase in trade receivables. Next slide. Now I will go into the management of foreign currency. As a headache mechanism, we hold 69% of our cash in heartburn. In addition, we use cross currency swap transactions to convert a large portion of our long term foreign currency debt to fixed rate local currency liability. After hedging with swaps, the share of FX steps falls from 79% to 35%. Excluding the $95,000,000 S. Dollar FX provision stemming from grant lease obligations related to IFRS 16, We reduced our short FX position from $144,000,000 to $109,000,000 as of Q1. Significantly below our comfort zone of USD 500,000,000. Next page. As announced earlier, we decided to exit Finto together with our partner Taya. We are glad to have completed sale of what Joe said in Georgia and Avarsenya Darvejian in this quarter. This transaction has no impact on our financial as our fintur stake had already been classified as asset for sale. Meanwhile, we are seeing continuous progress in the efforts for the sale of the remaining 2 operations with interest received from several parties. We will keep investor communication point on related development. This is the end of our presentation and we are ready to take your questions. You. We'll take our first question from Ivan Kim with VTB Capital. Yes, good afternoon. Two questions from my side, please. Firstly, your ARPUs both, let's say, blended ARPU, if you look at that or postpaid ARPU in Turkey, have accelerated. Growth wise in the first quarter of your team compared to the last quarter of 2017. So I was just wondering, what has been driving that? And secondly, a question on your trade payables reduction, which was $1,200,000,000 lead or negative effect on your cash flow. I think you mentioned it related almost or it's related to CapEx, in fourth quarter from fourth quarter 2017. But I was just wondering how seasonal it is, how much would this CapEx related and what should we expect sort of on a normalized basis from trade payables? Thank you. Ivan, thank you very much. So with regard to your first question, ARPU side, I'll take it and then I'll ask Belan to answer on the second one. On the ARPU side, there are multiple factors to it, but the most important one is our inflationary pricing strategy and price corrections to our products. But more importantly, the percentage of Triple Play customers are increasing. The percentage and number of 4.5g are increasing and we are getting new lifestyle customers with at higher ARPU levels. So all these things contribute to the growth of ARPU which is as we have always committed about the inflation rate in Turkey. Now, if you look to our fixed ARPU rates, you will see slightly less increase And one of the reasons for that, while on the mobile front, the changes in the taxation of special communication tax has been neutral on the fixed side There is a direct increase of 2.5 percentage points in taxation from 5% to 7.5% which actually reduces our ARPU increase in the fixed side to single digits. And on the 1,200,000,000 1,200,000,000 TL, decrease in trade payables, as you said, that directly related with the CapEx payments of the last quarter 2017. This is a seasonal factor in the first quarter. Our trade sales declined by 700,000,000 in 2017 to increase later on. Therefore, it is directly with the seasonal movement in trade payables. Yeah. But I mean, so it was less, right? It's almost like two times less in the first quarter 2017. This, I appreciate the CapEx was probably a bit higher, in fourth quarter 2017 versus fourth quarter 2016. But as so let's say, apart from the vendor payments, there is nothing else in this number, yes? Yes. As you mentioned that in the last quarter of 2017, the total CapEx of the group was higher than the previous quarter. And almost 88 percentage points. Therefore, the first quarter of 2018, there is a higher decrease in the rate payables. We believe that this will be normalized in the coming terms. And regarding the CapEx side, as we mentioned in our guidance, there is 18% to 16% it will be around 18% to 16% in this way. Okay. Thanks. Regarding to your second question, there is nothing in this side vendor payments. This is purely related with the CapEx and the vendor payments to them. Thank you, And we'll go next to Slava Andexxa with Goldman Sachs. Yes. Thanks for the call. So actually it seems like the share of data and digital revenues have stabilized. So what are the reasons for the data and digital growth deceleration in your view and how we should be looking at the growth of the segment in the medium term, do you think that the 67% share is stable? And also secondly, on your guidance for the full year. It seems like you're running well ahead of the full year guidance on both revenues and margins. Do you somehow expect any substantial deceleration in second quarter or second half of the year? Thank you. Slava, thank you very much. Regard to the data and digital services growth rate and the percentage of that as it contributes into total sales, which is almost close to 70 Let me highlight one thing. I refer to our 2 year cumulative growth rate of the top line as 48%. If you look to the 2 year cumulative data and digital services growth rate, it is 126%. So actually we are very comfortable with the level of the growth and the momentum. And if I look to the future And when I look to that, 95% of our investments are about data, 97% of the consumer's consumptions If you look is the data, I expect the percentage of data and digital services in terms of contribution to our sales to grow. From the current levels of 67% as we move into the next 3 years. Therefore, Of course, now the data and digital services are becoming the dominant contributor to the overall sales. Therefore, the differentiation of the average growth and the growth of the data and digital services will ultimately converge to each other. But I would like to highlight the 2 year cumulative data and digital services growth of 126% from where it was. So This is a this is actually a level that we feel quite happy with. Now looking to our current performance, which is 17.5%. Our guidance for the next 3 years on midterm and for this year was in between actually 14 to 17. So, this is actually we consider in line with our expectations and we are sticking to our original guidance as indicated. Okay. Thank you. And with regards to margins, I also on track. So basically it seems some slight deceleration in the next 9 months. Of course, this is, this is the impact of IFRS changes, 91516. If you look to these changes, actually these are giving, I think, more clarity and transparency into the mid term to long term liabilities of corporation So I actually like the fact that they are reflected in this way now in the balance sheet. But also it is a reflection of customer retention capabilities of companies. So you have certain type of hidden assets and hidden liabilities now reflect better in the financials in the company. And frankly speaking, the improvement of our churn rates and also the efficiency of our debt management and risk management in terms of receivables have contributed slightly higher than we expected, but we still stick to our 37% to 40% margins for the next 3 years. We are not changing that as of this time. Will take a follow-up question from Ivan Kim with VTB Capital. Yes. Just maybe a couple for more questions, please. If I look at the active users, so some of your applications such as feed the Greek. For example, there is some even a small reduction quarter on quarter, if I compare it to fourth quarter 2017 in terms of active users, So I was just wondering why is that due to seasonality or you're seeing some sort of flattening out of growth there? And secondly, on the GEO cell and other cell, sale proceeds, I just wanted to make sure that they those have not been upstream to true sell level yet, right? They have been, sort of received at the holding level. Worry. Thank you. Yes. Starting with your second question, you're right. These are still part of the Fintur's balance sheet and results So they are not they have not been upstream to us yet. We expect that to happen after all the assets are sold and finalized. And hopefully this will happen during this fiscal year. Looking to our active numbers, actually I think last quarter we reported a 7,000,000 active users, monthly active users on dergaly, which is now 7,300,000 And this was actually impacted by the Q4 end of year campaigns. So, we do not see actually a slowdown, but we see a steady growth. If you think about 1,000,000 additional smartphones added to our network, 300,000 new active subscribers actually is something that we are comfortable with. And we hope also with the launch of Dergaly in other markets, including Ukraine, Cyprus and Germany, this will increase the initial pickup rates in those countries as well. Yeah, but I mean, it can be if we look at other things, so for example, for CD, there is a smaller So the there is $100,000 subscriber active customer reduction in the numbers. So is it you're saying just seasonal? Is it something temporary or Obviously, it's about yes, it is the impact of campaigns, especially for TV. At the year end, we had made a couple of campaigns to increase the trial period. So, those are the impacts of actually those campaigns that we see on a seasonal manner. Got you. Okay. Thank you. We'll go next to John Kim with Deutsche Bank. Good evening, everyone. If I can take you back to Page 10 of the presentation on the applications, can you give us a sense on either active user base or downloads that come from, app users that are not true for sale customers? Thank you. Of course for each one of these applications, the ratio of non Turkcell customers are can differ But it is somewhere in the region of 15% to 35% depending on the nature of the application. And actually all our applications are all access and all the features are available to others operators' customers as well. There are some limitations on up call where some enhanced feature set with regard to caller identification is only available for Turkcell customers due to our IMS systems. And of course, my account which is our self-service application doesn't have any non Turkcell customers. And do you know there's a meaningful difference between truck sale non truck sale customers in terms of adoption retention conversion rates? We naturally have larger abilities to promote our applications to our own customer base, but we are also very happy see that especially our newly launched Yani has been also greatly appreciated by non Turkcell customers. Same thing is true for Fizzy. And dergilic and also beep. Okay. Thanks. Thank you. We'll go next to Vero Sutedja with Erste Bank. Yeah. Good evening, everybody. Thank you for taking my question. I have just one question related to your translation loss 494. Could you please elaborate a bit as I thought that our, I mean, your short position actually gets smaller. But the FX loss seems to be bigger, would you mind to elaborate, what drives this? Is there a certain contract causing one off in there or anything else that we have to take care of. Thank you. Veland, can you take that? Regarding translation losses, first of all, due to the fair value of the slab contracts due to the loss, because of the volatility in the market condition. And the other one, the main part is related to transaction interest expenses because of the increasing interest expenses and accrued interest costs in our swap contracts. Actually as I mentioned that this is directly related with our swap contracts and due to the volatility in the market conditions. You mean the interest swap contract? Swap contracts because of our cross currency swap transactions. Johan, I think Murat from HSBC has a question on the web. Am I right? Let's take that one as well. With impressive growth given in IFS adjusted terms. My question is regarding why this strong operating growth does reflect on net earnings You do not share detailed P and L items in quarterly financials. As financial expenses changed from 1000000 to 300,000,000 Can you give us more detail, about the financials? Okay. So, Blanche, please explain, I can only tell that the corporate tax has been moving up from 20% to 20% to 22%, but remaining maybe you can give more color. Yes. As you mentioned that the first reason related with decreasing the net income side is related to the increase of the corporate tax from 20 22% and the other one is related with fair value of the swap contracts due to the volatility in TLUSD stemming from our cross currency swap transactions at the contracts. And the main part came from this contract. We'll go next to Herb Direct with HSBC. Questions back as well back to the FX and the FX impact. I'm sorry to to try to get a bit more information on that. I was wondering, those swap contracts you have, can you disclose which corridor basically those swab are effective in terms of FX if you can give us a kind of a band where you believe you have a relatively hedge hedging? Is it over a certain corridor band on the FX side? Thank you very much, Arway. We will, Blunt will give you the info. Regarding euro and Turkey that are up to 9.5 Turkish Jira and euro dollar and Turkish that are up to 6.8 80. We have an upper band. Higher the upper band, we have a shaded mechanism between the banks and the hedging parties and there is no lower banks in our contracts regarding the 12 contracts. Right. Okay. And so what we saw, I'm trying to get what we saw in Q1? Because I mean, compared with what I was expecting, especially on the FX, is a bit significantly higher compared with what I've seen before. So I was wondering, did you have to re enter into a new type of contract that may explain it or I'm trying to find out where from my estimation on AFX, I could be a bit out of band compared with what you reported. So I was wondering, have you changed a bit the way the contract has been set up? In Q1? No, we have no any plan to change our contract setup. We believe that this protects our position and there is no any plant planning for the new leverage or borrowings for the end of this year so that we are not planning to make a new swap contracts for additional leverage or additional products from the market. And the last one is our issue and we received the proceeds and we have enough cash to refinance the upcoming loan repayments and we have no any plan to additional leverage. Okay. And in terms of your consolidated cash you received, I mean, you did closed basically how in U. S. Dollar and in euro, at the moment the consolidated cash is if there is new proceed to come, let's say, from Fintu in which currency that will be owed? Some of them will be in euros and some of them U. S. Dollar. But at that stage, it's not possible to disclose these details. Okay. It would be hard currency. And with no further questions, I would like to please go ahead. I think we have to questions. So thank you very much everyone for joining us on this call and looking forward to seeing you at the next quarterly call. Thanks. This will conclude today's call. Thank you for participation. You may now disconnect.