Earnings Call: Q3 2019

Nov 28, 2019

Ladies and gentlemen, thank you for standing by, and welcome to Axiata Group's 3rd Quarter 2019 Results Conference. Travel to presentation, all participants are in a listen only mode. There will be a presentation. There will be a presentation followed by a question and answer session. Please free help keeping reminders. Please mute your phone during the presentation and kindly avoid using wireless headset. Also note that the call duration will be for a maximum of 19 minutes ending by 30 PM. Would now like to hand the conference over to just see if it's safe, hands free, Gramaludin, President, we will see you. Thank you, sir. Please go ahead. Hi. This is. Thank you for joining us for the second process for the 2019 results. So let's go straight to slide 4. Basically, there's a a a 6, 7 messages that you want to convey. The first one that's above the, price mostly open is consistent with our focus on profitability and cash. I think they're seeing more and more definitive results. As you can see in the year to date, up to just for a jump, 43.5%. Dollars, boosted by the, operating leverage from higher revenue and cost excellence. Our underlying economy across, taken by, the absence of M1 contribution, and I access for a roadie, which is quite unfortunate, but still has been, quite good. But your actual quote item, the year to date of time increased by, 15.6%. Our balance sheet remains very strong, which, later on, my CFO will, elaborate. The one thing we want to highlight is that we are very happy with is the actual continued, performance to show that the turnaround is real. If you can see from the performance, the revenue increased by 9 points, the ARPU increase and the revenue increased by 10.6%. And the return to profit with our improvement of 4.5 percentage points. Ravi, acquisition, I'll I'll be more confident. But after the acquisition, I had a, of course, they have it as well, as well as, as you know, in but I'm happy to say that the, profit actually is the return of the profit. There's a strong two money on right here at the same time. So, Rob, we worked higher at Safami of 7.9% and with the FTS of 15.2%. We're also happy to note that, it also continued with that double digit growth in all metrics and that you know, we are we're going to help us in our growth. So you're in our digital advising company, delivered more than 14 it's like, what time we have tried to continue to be positive. So as for me, as as, we, let's call it earlier, There are 3 companies within our digital business, sir, ADAS 1, ma'am, our application for that to deliver for this year. And they I'm calling to do that. So on the headline KPIs, very hard for us to consider a cost, we are likely to exceed our FY19 airline NBI for our EBITDA and our IT. This is my it's like 5. It's just to give you a flavor. And when you say you want to improve, Canada, plumbing, and at the air, We're achieving practically all the companies except for n cell. As you know, n cell, the ILD, it's National Federal Businesses. Actually, not the volume is good, and we as expected for most parts. Right? And across, the introduction of, of new taxes, you know, I think consumer demand has affected them. I was I was exactly, but somewhat affected for them. And on the relative performance of the group, while we are good, as you can see, in all the chips, we're promising number 1 and number 2. The next slide, slide 6, it doesn't show that, we have increased our revenue up press this from the bot, except for maybe, Telkom and Intel, but as you can see correspondingly, the cost and service cost, actually, it's lower, effectively, all accept and sell. So, for example, in the case of, for the group, increased revenue by 5.5¢, but our total cost increased only 1.5¢. And pass over to my CFO, Vivint, would give you a bit more detailed explanation on the results. Vivint, Thank you. Thank you, Andrew. Very good afternoon to all of you. I just want to say number here. I think I know on the financial performance of order in 2019. First, like, talks of, the reported numbers, and the second next one would be on the underlying performance. So reported performance revenue grew strong at 4.2, 4.0 percent, and I did that 26.3 percent on a year ago basis. For 26.3 customers, coming out of contributions from the end of the last 2016 edition in 2019. But I mean, we're all, we are going to get to this, over 1,000,000,000. But coming out of the few one of the inbound game, the new store in February. It's around 1,000,000,000. Divestments of and the, the, idea, right, which we have, given up, which still give us around 96,000,000 of, claim. So so we're all the corporate numbers look strong. If I want the underlying performance, which is really what matters, services on 3 MFR stations at constant currency. Having a strong growth in EBITDA, a double digit 10.3% despite the 2.4% drop in the room. And if I exclude devices, our service revenue including. Now let me make sure your license will be available here on 15.1 percent. This resulted in 2.3 points in 2 points in the data for us. Up 27.8% across more than, say, flat as function setting on the other side. Avangi was dragged by a few, issues or items of one off. One is we sort of in one area, which was contributed, I mean, that is that, proportionately for few quarters was called muted. I can't do about 90,000,000 last year, if you don't get this year. The taxes which were introduced in the budget of Bangladesh which was, which is on the revenue increased from 0.75% to 2% has an impact of around 84% for us. And then, some of the M and A expenses, the finishes that they were putting in discussions we have with their mom, will be affected by around 30,000,000. So those are those are the, items we're getting back we, for underline, for the 1st 2 quarters. However, as countries mentioned earlier, if you normalize for some of these one off accounts, it will be around 3 points of closing the payment and process. The next flight, basically, there's a waterfall on from last year in regards to your and I think some of it I already mentioned EBITDA contribution was significant for us in 1st 3 quarters, followed by the running largely on taxes other than the amount that I talked about, and taxes, mainly coming out of, Bangladesh which has, dual impact. 1 is the corporate tax increase which I talked about 17175 in person. But also impacts the deferred tax, accounting. In addition program, there's a tax simplification and there, which was on, on the guided call. It also is coming from Max's merger, which is fine. It's fine. It expired this year. In addition to that, I'm gonna be, we'll see the finance costs, slightly higher, mainly because we have moved, specifically in innovation that you've moved from your store, both modem to the local morning, which has a much higher interest rate, but that's where it comes from, work, fluctuations. One at the bottom, which basically does the kind of work on the, you know, recorded number and what is the underlying number. On the big item there is the which I talked about earlier, coming from the online disposal, and you have rights issues and ADS a non core, ventures, dispute, topped out during the year. Our focus has been over the next year. Focus has been on pulling up a cash flows. I'm I'm happy to say that see a positive impact of around 2.6 1,000,000,000 on our free cash flow. If I look at it on a course, then my card has stated it's a table, it shows low. About our free cash flow margin to a 19% and operating free cash flow margin of about 3000 to 90%. And our efforts in case we remain very much, seeing my 24 person, compared to last year. Mostly coming out of every time soon, and this is obviously cash flow improvement. Operational excellence that is key focus for us. We have we are trying to, keep the efforts on improving the cost. There was expansion happening in some of the markets. So for example, Indonesia will be done by on an increase in the report loss. However, to our efforts on the cost optimization program, we've been able to reduce our cost on the network sites and the marketing stuff are mostly coming out of, a few of, companies. And some work in, cell phone. So broadly, we cross the remaining plan for us, the expansion in the network. So how does the next name on the balance sheet? A pretty same strong balance sheet, will be lost to EBITDA. Down to one point 9 on a on a comparable basis. And we did move on to a bit and moving more into local currencies and asking if it was a big volatility in the market. But that does have a marginal impact on our cost of borrowing. However, we do feel that given the volatility in the currency market as well as interest rates, it's much more prudent for us to have a higher fixed and in local currency, borrowings. Our cash position remains very strong at the next one, cell phone. Any market has been struggling a bit in terms of but largely coming out of 2 classes. 1 is we will say you have interest with something down as well as the the internet bridge because you're going to connect bridge coming down using the technology, industrial. And so it's time, I think the world has been in the end of the industry's being seen. However, our our core revenue has been positive at point. This is but we've been adversely impacted because of the domestic roaming, which is what we offer to, to PM. And also, the inbound roaming, which has come down as well as, the internet We have been revised in the beginning of the year, and our conscious decision to reduce the at a very low margin number of negative margins. So that's how you as an impact on your, mobile service revenue for us. The, the last year, and we look at the value. Also, we saw the, voluntary submission costs, which were which were which we did in last year. Performance until 8 quarters of improved EBITDA. And, it's doing good compared to how the market development is happening. Not only from the top line growth, but also improvement in the, in the EBITDA margin. By the end of 19%. And, including the free cash flow as well as reporting 4 quarters of, profit. In in Indonesia. So it's extremely good performance, for us in, Indonesia. I can go to the next one. It's really good for us when it comes to revenue. I want to check on 4% of the revenue growth, on a yearly basis. That is in the market, improved free cash flow and improved profit. Here, you would see a negative impact largely because last year, will be saved from dollars, to, to assist the company, in our which would be just one of you. I'm on the line for 2 extras. 1 is the main last year from the Toyota College. As well as normalizing for the tax implications, which is from the cost of between tax and interest rate this year. We would see around close to 5.5000000000 programs in the, profits, of building. So extremely good performance with every car, a margin improvement of 96 to a person we're on here. I don't intend going through all the other operations during the time and the this opportunity is not more, time for the Q And A. But I will say all of those exception is, which is largely driven because of the market recognition as well as, as well as the, low risk international long distance but, maybe, pay you there. What I will do now is to take you to a slide number slide number 21, which is which basically talks about where we are, a case here or or the headline numbers which we had completed at the beginning of the year. Our revenue growth, it would be marginally lower. And that's because of answers that we need to have them on the banks. It's which is positive, but if you're willing to exclude the devices, we should be able to, target. EBITDA from EBITDA. You should be any closer to a double digit growth on EBITDA. And, return on approach should be about this person and CapEx based on the world conscious, allocation, adaptable allocation, strategy. We should see, you know, targeted benefits for 2019. I think this, I mean, these are fairly well known risks, for example, I mean, we do see challenges of the unfavorable regulatory environment. When you're calling the risk that the company benefits we recently got the supreme court judgment from the, on the year, it's better than what was expected. So that's an open issue is on that. And I will be continuing to assist you, with the national holding for getting the kind of decision for that. As well as, issues that we found out of the, DCRC audit, then we have the coach can, put functions more and I'm getting new equipment as well as launching opportunities for the activities. Calendly in markets. Market conditions in Malaysia, Newpark. And also, I think the area of, and to manage the office the the intensity of competition in the migration through that space is increasing. Adoption of the, of the products and services. Opportunities, information, Bangladesh, continues to work from an operations standpoint. Infrastructure. I think we are, from our end of the opportunities. And then, obviously, and I think we'll get more details when we have the, next week in this, forum on how we're looking at processing. Structural costs going forward. Would that be something? Thank you, Vivek. So I think we just saw straight to today. Thank you. We will now begin the question and answer session. If you wish to ask a question, please press star 1 on your telephone just for your date to be announced. If you wish to cancel your request, Please press the pound or hash key followed by the digit 2. Our first question today comes from prem Jero Jazinam from Macquarie. Please go ahead. Hi, thank you for the opportunity. A couple of questions from me. Firstly, on Cellcom, right, you know, if I would look at the trend in your prepaid revenue, one people to treat you, it looks like you are, you know, you are most interested in glide path here at least stabilizing on that front. But if I look at PQ versus 2Q, there's been quite a drop. Is it just pure seasonality, or is there something that works in particular, which didn't want to increase the due. And I suppose, you know, the long standing question of how long before our margins, cut gravitating towards where our peers are sitting at the forty percent level at Telkom. Second one is largely around 5 g and instructor sharing. I'm sure your the agreement between Maxx and Cellcom on potential 5 g network sharing But, could you help us, understand what your philosophies are around 5 g and how that network roll out if you like to to take place in an innovation context. Thank you. Thanks, Brent. I'll pass to data on this question. Although, I I did know that you have a question on the. I understand. Thank you for the question. I think the first question is about the the Q3 with this tour. Yes, that's the final when the from Q to Q3 from Q2. Yes, we do see a lot more in terms of upgrades to postpaid, migration I think, in this bit trend, I mean, more and more. So I think this is something that we are working on. But we're pretty with this, the trend and what we and also what we're doing to the in the postpaid side as we can actually, capture more free to post migration in the coming in the fourth quarter helping come for the So this is this is the trend of something that we we are handling recently. And then your question about capacity around the 5G and also the sharing of the infrastructure with 5G. And there's a few things around, the the supply chain worked out and worked out within the industry in Malaysia. Which has to do with the rollout 5 gs in, zone 1, zone 2, zone 3, and zone 4. And a lot of this is being discussed at an industry level, and there's lots of loss in the sharing and initiate these steps, you will take place. Especially in the zone 3 and 24. I can make this something that will that will be unveiled as soon by the industrial signature for me to speak at a while, at this point in time, but the agreement, you know, or the MOU that we have with is is a spot that you are sharing with you on 1 and zone 2, which is more the city centers and also the the urban areas. This is something that we we did a very, at this point, and in early stage where we sitting down together to start thinking of planning, what if we were to share the network the 5 g network is because, it so I think that makes sense because, you know, when the new channels happen, managing share by most of the major operators in the world. But as well as if you look at, the network simulation, our network are comparable. So our the PCG and porting network is quite variable. So if this, we think we are in the position of strength when the drivers, I think, came out to share the 5 g networks together. As I mentioned, it's still very, in the early stage, and within the next month, we're also able to defined for the, how the sharing is going to take place? Just one one, a courtesy comment for, except that you is that from a border Gulf of Mexico, I guess, it's it's something that we know that 5 g in terms of the commercial, these are just pretty hard at this point in time, to justify we implement our revenue and our ARPU and the, the cost versus, the benefits it's quite questionable. At the same time, we do understand we do support, wholeheartedly, the government's invitation you bring about leadership in the technology within 5 gs of the business. And we we take part of that. So the, the sharing is actually one way of doing it so that we can achieve for the same time. So we hope we, you know, I think that's just all we had to send you. And when, you know, from an industrial perspective, we will share it the only way to I completely concur. I was just wondering how to mobile operators was limited 5 capacity. Would undertake this task, especially when the network's gonna be requiring a lot more fiber. So you know, today is gonna be a fair amount of investment, or she's given that, you know, the revenue upside is probably pretty limited at this point in time. Oh, well, Tyler, yes. We we do it, and I said, but Both parties have quite, a reasonable amount of of fiber. Actually, if you look at, our own fiber, our site the direct value of more than 30% or fiber, but if you look at it in terms of, you know, collected spikes and really fiberizing working more on the 90s, more than 90% of whole black design, fiber eyes. And then we have yellow side car, more than 70% are actually single off to fiber. I think that that's one point. And I think together, if you look at what I would have actually had, which we could complement each other, and it's really sharing, I think, and we can actually achieve, more together Yeah. I mean, if I can add some more, add a bit on the, the the the double digit on fiber, We also are working with Digi to be able to partner. And we have a a reasonably good deal with PM as part of overall deal, the bigger deal, the PM on fiber. So while it can be, uh-uh, from a corporate level, concerned, but I think we are making a lot of measures to ensure that, we can be economical on the pipeline. Alright. Thank you very much and good luck on that. Thank you. We now move on to our next question, which comes from Chung Cheng from CIMB. Please go ahead. Hi. Thanks for the call. Please, I have a question for, roby@north.com. Coming off with the will be, and I've got just a very big jump with the upcoming 2 and 2. Could you just sort of help us to understand once you load the, direct cost, the state, and we have to pay, you know, to the top top lower on a 2 on 2 basis. We we also saw that the interest costs are more than half on a 2 on 2 basis. So any color on that as well. And the last people will be, the tax. It could have about 7.6 percent of the revenue. So can you help me if you can tell that with the 2 to 10, turnover tax? Those are three questions that will be sent to Telkom. You mentioned earlier about, the free to boost the migration that you're seeing a bit more into the, for the first quarter, but it was, down Q on Q. So can you sort of give it more color as to, what's happening? Right? Will this be more competition in the lower end as well? Do you have some update on the competition that we've got before? Ping on the, network card, role holder, q and q, was there any one of you in terms of the IT extension cost in the sector? And do you see who is physically going to drop down or you can use this account, right, of the price and policy and that means that you want to go to the platform. That's all for my questions. Thank you. Okay. Yeah. We'll see what's in my quarter improvement in programming is from from 2 types of owners in continuing growth in revenue. It is. 2nd thing is that I'm interested with a lot of focus around profitability. The overall cost additions in the market has been slowed down by what is really focusing on quality of customers the voices driving through a higher gross addition. And when we do, those customers send the reduction in the case in marketing cost as well as the, AT and T cost. And they've been continuing efforts on improving the, the cost. And one thing I must say about building, if you look at last 4 years since you acquired the the cost in the company has renewed last to find the fact that we've been increasing the network coverage as well as growing the new voice consistently. A book in managing the cost structure extremely good. In addition to that, this is what I did have because the focus was a lot more on quality of sales, which the bit lower down, the gross emissions had a total impact negative impact on the on the records, but we saw our full improvement happening in, Monday. So that's the one issue It's an issue which is why taxes, 7.6 2, the 2 factors. One is that the, knowledge of the, tax included in 2015. So there is in 2018, which we have to account for 2019 because this effect started with the the account in 2018. Second is that there is a body regulation in Bangladesh. The regulation is you have to pay, the highest of either in person for, you know, or 45% of the profit before tax. Or advanced entry. So in this case, you will end up going through. However, you are exclusive. You are not interested provision. Make sure they do need to still continue looking at accounting. That's the ability on the standard, 35. Which means because they're making losses, they end up go to provide a little bit of the tax or the product. We just wanna set it up. You know, you know, the taxes are coming into the the account. When we start making a better progress, we will start seeing the adjustments from you the reason why you see a much higher, percentage of revenue as that. Own, question, are the previous folks standing apart from the Jan that will come up? Yes. You're right. On the low end. That's why it's not possible today, but on the 4th case, in relation, you can get voice to it. I mean, if you want, you can get a a a message, like, the rehab that you're saying, yes, we were doing a free support. I will focus more on a high quality customer. Now if you look at it even though I will I will just probably, if you plan to be on the phone there, postpaid, but our postpaid revenue has actually increased. We are addressing the low end segment, then the competition, low end segments will give a name not directly to our bank, but it's something that we're here doing actively. And then we also worked on this also an alternative plan, around how to address this low end pattern, but in the after the first quarter of the call. I wouldn't say that there's a lot of the the to Yeah. I just pulled up on the network cost. I so do we should we extend it? The network cost would, go up a little bit more from here. Just a bit. You know, we we probably need to make some investments, but before we start to see some changes come to or or are we trying to get a peek in and the number that you're keeping now is, the big issue doesn't start very much, over the next Okay. Okay. Alright. Got it. Thank you so much. Thank you. Thank you. We now move on to a question from Alex Dawell from AM Bank. Please go ahead. Thanks for the opportunity. I've got 3 questions. One is on your flight 31 Are you sure, sir, your expectation for, in terms of the KPI guidance? Can you keep it at the revenue growth guidance that you to come below, but the EBITDA and other one is going to be observed. Does that mean you are expecting, lower cost to be able to get higher organic, higher than by that, super growth. And where is that, reduction in cost? Like, this comes from, you know, is it from the madness cost, you know, which which region is it from in Malaysia, or is it any of the other companies that have like, access. That's my first question. My second question is regarding your cell phone where you're looking for the It was impacted by Wholesale's revenue. I I'm I'm coming due to the impact on the fiber broadband. But, while you're in that in that level for for tomorrow, if you wanna see that, you also we are also picking, the, from, DMSL as well as showing. So what what was the impact on that level? From the school field, reduction. And, my, my third question it's regarding your paychecks. You can be able to find the site needs to be lower That's a great next year under under NSCP requirements. Do you expect that to accelerate? So, you know, even if I'm deciding to be below this year, but that's going to be an option next year. Thank you. Let me ask the the first question because after today, just the clarification, the revenue, if you exclude device, We do expect, our numbers compared to the, assumed revenue target to be higher. So we actually, we could officially have done a flex device. The device is actually fairly artificial we can increase the reduce depending on our subsidy and our programs, marketing programs. What is more important than revenue ex device? Just to verify. But, you know, having said that, we do expect EBITDA to increase our higher than to increase in revenue. Actually, oh, yeah. That's right. Because of the cost improvement. Those clarification, but, as I said earlier, so far, I'm here today. So it's gonna be 6 devices. While, you know, But that said, I think the focus on cost continues across operations. We are it will it will go back to the static number 12, you cannot try to explain where are the cost savings and from. Majority of the cost is coming from the network. I see cost in terms of marketing costs, and these are coming from essentially markets in, in Indonesia, which on sales and marketing, somewhat from the telecom. In addition to that, we've seen some on the staff costs. I'm from, and, in the south. So we just please go ahead and the ACD settings, and as as you recall, I mean, you get a a private and valid across settings. I did see a target of 1,000,000. So on that, we are only around 800 plus 1,000,000 on the cost and changes, for this year. Here's the little bit offset by some of the, expansion related which will continue in current markets where there's still a lot of opportunity. So it is that's that's where we are looking at costs broadly, should they be flat for a very low single digit increase in costs compared to last year. Yeah. The section is the method of the solution that you have to be, you have to be, the things that are new that we have in addition to the helping revenue, which I think, we made So that is what's going on with your portion of the. So on the other hand, it's, yesterday and come back to me. The main reason for the need so was mainly because of the remediation of the rate and impact from, from the, reduction is of the Yes. On the on the for the if I for 2020 and work in sometimes in February, but when we're going to NFCB, yes, there's a lot of discussion still at the industry level, and we've worked there a lot more collaboration happening, and within the industry in order to achieve, an FTP project and we hope that doing this, we could help to minimize, let's get back to voice, which is an FUV. Okay. Thank you. Can I please give you one can I squeeze in one question? Regarding himself, we we studied the CGT situation. I mean, how much have you provided from CGT so far, in in Yeah. Mentioned this when you have the 4 or the full year 2018, your needs, for that one, and and let's say that, you know, we we believe there are So if there is sufficient, provisions available on different tax methods, some of them are integrating the procedures across the globe. The meeting at this point in time, this was sufficient maybe we will take care of, take care of the the the utilities of TGP. However, until we just get your clarity of the conclusion, it's very difficult with the actual amount fee. So so from our perspective of this funding line, we do see that we have on various tax matters should be sufficient, or should be sufficient, as administration transfer. But in the future, do you see any additional provisions for any Any other reasons? At this point in time, I think, if you we've also mentioned in our a quarter release, that we still believe that the, the strength of our international arbitration on that is very strong. So unless we decide to take certain other videos, we don't see any major, implications at least at the time. The proceedings are coming. Thank you. I'm John Chama from JPMorgan. Has our next question. Please go ahead. Hi. Good evening and and thank you for call. Couple of questions from my side. Firstly, on either call, I understand that, Indonesia is thinking about advising a negative list, which might open the power industry to foreign investments. Is that something that's, on on the regard for you? And and that's a that is sort of our suite in the, maybe list of digital device. Also, I need to confirm if you can explain why, what is even the big improvement in is the margin on the first quarter to the third quarter? Then on you said if your ADA is, breakeven now, is that expect to remain with you in 2020 as well. And are we still on track to break you in for, next year, attention to the leasing plan? The last question is on PM. I understand that the message only agreement was revised down. I think it's a 15, 15,000,000 loss in revenues. But can you just share with us or remind us, like, what is that small, what I've said is done, is it a brighter, access to fiber, or if we can share what the benefit Okay. Great. Okay. This is, the rest of the year. I think, at the local, we always look at, countries that are within applicants. But I also have a demo available so that we can own and operate the app. So if Indonesia doesn't be since he's leaking the negativeness, it would probably be something that we would consider. But naturally, any entry to Indonesia would depend on the individual benefit attractive as well. What targets are available. So it's possible, but I think that's the agency. On the Excel question, I think I read after this an optimization of the of the margin. I'll send that back to you directly. Right? So just on the margin, and I I'm just gonna use the pre MFRS comparisons here. The main drivers, if you look here, we are also expected to cover is largely because of having increasing revenue, having both some powers and I think your consistent, cool location maintenance and maintain full rotation ratios around 1.6 even though we continue to grow power through it from small active purchases and, organic growth. We've improved a lot of revenue insurance. So I think that delayed the benefits from, billings over the last few quarters. And I think more importantly, also, a better cost management, which has come a little bit from, some closure of projects on, refurbishing of Sao Paulo, which we have carried some higher costs left here. And I think this year, no maintenance cost overall, and some of that is actually coming from Malaysia because we, you know, to cover the Telkom Q4 because we've already announced that last year. Oh, okay. And that actually helped us drive a lot more cost synergies. Please go ahead and try to explain our numbers. Yes. That's it. Yep. So, I think when you look at the tower, we removed from the negative data, been talked about for the last 3, 4 years. Unfortunately, it has not happened. And I think we know that is coming back again. I heard that most definitely that, you will come, anytime sooner. So as far as we are concerned, we are we have actually announced that we are running with our divestment. And I think that is expected to be completed by, a q and a q 1. Yes. Okay. On a question on the tree, before I pass through, to come back on the CN. The, the answer is that we are expecting them to be, basically, neutral, initial, like, this year for ADA, for the full year today. And, therefore, we should expect some pocket next year for ADA. For aggregate, the plan was supposed to be possible next year. We think there's a bit of challenge, know, to in a plan, but a bit of challenge, and we hope we can, to make it. Department of policies of TN. Yes, we have, there is the family contribution from the So she's one of the reasons the revenue on the 25th. Which is not received, the message for me, which is we have got, a favorable yes, and that is still continuing. The first one is on the issue to be, the issue that we have with but Alright. Thank you. We now move on to Arthur Peter from Citi for our next question. Please go ahead. I have your opportunity to be just two questions, please. So I'm curious on your decisions to partner with Netflix on 5 g deployment. We're not interested in this discussion considering you're actually, thinking about merging, working with each and our Asia assets. Did you eliminate the message from your room by 3 way deal? Second question I have is with regards to your job on the take that you hold the future of the series. Are you comfortable with the ownership level? Do you think this is ideal, or would you consider increasing or decreasing take in in these guys. Okay? Thank you. Let me take the question about the, the original devices. Well, this is well, as you know, the the the current IT technology system of Sandler. And then we have to get a few things into account. I think have, I was trying to say that this is actually very early stage of opening up the credit card in our system 1 and 22. So we're starting with the non senders, which is depending very much on the 4 gs network that we have. At this stage, for one of the, reason that we're working on with with the access. But is 1, you know, of the compatible with the of the network where we have to leave the network size and number 21, the 1,000,000 is because we are using is, a the same vendor for our working hours. This makes things a lot easier to plan and also to look at the migration from happened with the 5 g on top of it. So I think that's that's where we are. There is a bigger arrangement that we're looking at, at the 3 and so forth. With this new one, more players and more operators. There is something I'm not ready to discuss yet, company. So on the second question, to be frank, it's been tempting to, actually, increase our ownership in, few of our office But what what we have, edge point, directionally, decided that we we wanted to, is, preserve our cash I would say that there might be a need when it comes to consolidation or, given the accident in the market. How how about, the other day? Would you be willing to pay your bills and actually monitor some of these assets? There's nothing imminent at this point in time. We we if you were to do that, it's more not because of a bereavement also, but want to do a cash for, maybe there's an opportunity for consolidation and change. It's quite possible, but nothing imminent. Either way to increase or decrease. Thank you very much. Yeah, just to add that At the same time, we we are actually looking at, potential for the investors in some of our, possible, consolidation that we want to do or in new areas that perhaps, that we might end up on. Thank you. Thank you. Thank you. We now have a question from Piyush Chowdhari from HSBC. Please go ahead. Hi. Good evening, and, thanks for the opportunity. Two questions. Firstly, at Cericom, could you in order for the EBITDA margin, for next year. You know, how do you feel like zoom and just share the voucher out for 2020, you're saying? Of the regulatory side and manage any timelines for the section locked in, if you could share. And lastly, on e.co, organically, what's the outlook for the tower growth, for next year and which countries would likely drive that? Thank you. Hi, Patricia again. On the organic outlook. I think we would still expect, that as a maybe slower than this year, the first technology goes. I think that's the kind of a tower door at least tenant. The mix will actually probably shift a little bit. I think we expect the that Malaysia will have a little bit more of a gestation period waiting for 5 g. So the Navy syllabus here. So we anticipate higher growth in, our newer markets here in, Pakistan. We recently It almost exceeded the an entry into the Philippines as well. And, we expect that, some countries like Myanmar and Bangladesh, they will have some reasonable debt. So maybe get a little bit away from you know, you're only coming from, you know, and a more emerging market. Okay. So for that already, it broke up lower double digit. It's not good enough. Dotcom. It's, it's, yeah, on the on the on the call. Management, as what was mentioned before. We hope to see that the current EBITDA margin to be around, to give you about 38.5% here, of course, around 40% in the next year or so. Now on the regulatory front, the budget for the Spectrum address refinancing will be at the 7002300 and 100, if there's any issue on the profit by the regular basis to be around the second quarter of 2019. Thank you. One for your questions today. There are no further questions at this time. We will now pass the call back to time 3. Please continue, sir. Thank you very much. I just want to end this again with a thanks. Thank you to all the participating in the 3rd quarter 2019 results. I'll talk to you next quarter. Thank you. Thank you. This concludes today's call. Thank you for your participation. You may now disconnect.