Good afternoon, ladies and gentlemen. My name is Claire Chin, Head of Investor Relations at Axiata Group. Thank you for standing by, and welcome to Axiata's Fourth Quarter Results Briefing. Today, we have present with us Vivek Sood, Axiata Group CEO Nick Rizal Company, Axiata Group CFO as well as representatives from our operating companies. There will be a short presentation followed by a Q and A.
So without further ado, I'll hand over the conference to Vivek.
Thank you, Claire. A very good afternoon to all of you. It's a pleasure to present quarter four twenty twenty four results of Exadata. Let me start quickly going through the presentation. Just to give you brief outline or executive summary on how the results of 2024 look like, There are obviously two parts of it.
One is the financial elements and second is the execution of the strategy. So just quickly cover a few points of the strategy. As you know, last year, we did merge Airtel with Dialog in Sri Lanka. We are happy to inform the merger execution has been in line much ahead of what was originally done. Most of the network integration has been done and we should be able to start realizing synergies of the merger here in 2025 itself.
Structural transformation of Indonesia, we did move the customers from LinkNet to Excel so that Excel can be a converged serve core of mobile and fixed broadband. They now serve around 1,000,000 customers with access to around 3,400,000 home passes. Consolidation in Indonesia, a very important move for us, which is pretty much on track and we hope to complete that by quarter two twenty twenty five. And this allows us to be in all markets with three players, where we have number one position in three markets, a strong number two in Bangladesh and close to number two in Indonesia. I think good information on the profits.
Smart delivered a very strong $120,000,000 1 hundred and 19 million dollars profit, U. S. Dollar profit last year. Excel had the best profit here. Ruby, similarly, their profits have grown sevenfold since 2022 and doubled more than doubled from last year.
E. Co also delivered a very strong profits for 2024 and also declared maiden dividend, though it's a small amount, but that basically brings in a discipline for e dot co to start giving some returns to the shareholders. How has this come about is by focusing on operational excellence. We've seen the costs being well managed across operating company. In a little bit sluggish markets, the revenue has been a bit of a challenge, but companies are really focused on driving cost excellence and removing wastages, which has actually delivered higher EBIT margin of 4%.
CapEx has been optimized from $6,100,000,000 which was what we had guided beginning of the year. We've ended up with around $4,100,000,000 on CapEx. Partly, specifically on e.co, a little bit deferred, but I think more controlled investments in our telco businesses. The effect of CapEx as well as OpEx improvement resulted in 39.3% improvement in EBIT margins in EBIT in 2024 compared to last year resulting in reported near $1,000,000,000 profit. We've also been focused on bringing down our debt, most of that at the holding company level, where our net debt to EBITDA down to 2.74.
If you recall, we did say by 2026, we should be at 2.5x net debt to EBITDA. I think we are tracking in line. I expect this to be ahead of our original guidance, which we had given to the market. We also focused on high dividend payouts from our OpCoord. Last year, we received $1,500,000,000 dividend from our operating companies, which allows us to declare rents and dividends.
I think important measure for us on how we can bring cash from our operating companies, which will be doing well on their cash flows, to be able to pass on to our shareholders. Now getting on to the financial numbers, this is all on reported. So I'll have Nick cover on the underlying reported. Nick can talk a little bit more in detail, but this is essentially, we had to bring an E.comMyanmar back as continuing business and Nick can explain that later on. I think one of the challenges has been growth for us, specifically in the second half, And that's largely in two markets.
One is Indonesia and Rovi, which is Bangladesh. Bangladesh, the effect of network shutdown, which was during the riots in Bangladesh, where we were asked to shut down that had an impact on revenues, as well as floods and followed by sluggish economic and political situation. Consumers there seems to be careful and spend their spend. Having said that, I think we started seeing things turning positive with the economic conditions improving. However, even though with lower revenue growth, we've been focused a lot on driving profitability, which has translated into strong year on year growth of EBITDA by 12.3% and also quarter on quarter improvement on EBITDA as well as EBIT.
EBIT more than doubled for the year. We ended up with $3,700,000,000 EBIT, translating into strong profit number of $947,000,000 versus lost last year. Last year, as you recall, we had few impairments including Nepal as well as EDOTCO, Myanmar. Quickly going through the performance, underlying profits was $7.00 $7,000,000 with a very strong EBIT growth and while the operating companies did well, we did have lesser contribution coming from Cellcom Digi, which you are aware was impacted because of some of one off impairments being done by Cellcomdigi on their assets. Strong cash flows $2,300,000,000 I think that remains our important focus area coming mainly from EBITDA growth as well as lower CapEx spend.
Our balance sheet I've already talked about and also we did gain by early repayment or buyout of the bonds during the year of around $275,000,000 EBIT ahead of the KPI, again, slowed down from strong EBITDA growth. And I'm happy to announce second dividend of $0.05 which is down to $0.1 dividend for the year, which is in line with what we had committed at the beginning of the year. But a lot of that coming from contribution from our operating company. So no dividend is being paid by any kind of borrowing. This is purely from the cash flows generated from operating companies.
Just quickly going through the details, I'll not spend much time on Cellcom, Digi as you're aware of their results they had announced earlier. XL, I think strong performance, but we did see in the last second half, quarter on quarter, they still showed an improvement, but second half, we did see increased competition on the mobile side and also some sluggish demand on the home broadband side. But we've seen the improvement in ARPU, but largely coming out of the first half, strong first half performance in 2024. But as the focus has been on the cost optimization. So you've seen EBITDA margin improvement of 3% to 52% and flow through translating into improved profits.
Robi, I think operational excellence lifts profit. However, market sentiments remains weak. But as I said earlier, we are seeing positive green shoots coming back with the demand coming back in the market. Dialogue ended up with a very strong quarter and this is largely coming out of improved ARPU in the quarter and also excellent execution of the merger with Airtel. Smart continues to be a strong performer with around $120,000,000 of profit, largely coming out of improved ARPU.
ARPUs in Cambodia are now upwards of $5 which has been a strong growth in ARPU and we expect that to stay in the market and that's translating into improved EBITDA margins as well as strong profit and EBIT growth. Last year, Smart itself declared around $120,000,000 of dividend. Linkedin, I think one of the units which is still being a bit struggling, one is to do with the overall restructuring of the business with focus around the wholesale fiber business after transfer of the customers. But also we've seen the growth on the Servco side, which is XL being relatively slower, as I explained earlier, translating into lesser home connects, being provided by LinkNet. But I guess that's more to do with the timing.
I think we should start seeing that coming back. In fact, the good news is we've been also able to get new businesses from external customers as part of their wholesale fiber then dependence on XL. ERADCO, I think that some of the CapEx has been phased out largely in Philippines where we have not seen many orders coming in, but they continue to focus on colos as well as cost excellence, which is driving their profit growth, further supported by some Forex benefit. Boost has been narrowing losses despite the fact that they've been investing into the Boost Bank around close to $69,000,000 of the overall losses were coming out of the money spent in building the Boost Bank. Non bank losses have come down to around $96,000,000 from $130,000,000 And our focus is for non bank to start becoming profitable on a run rate basis by the end of this year or early next year.
ADA continues to do well. We've seen a strong growth in revenue, specifically coming from the customer engagement, which is SMS A2P business, but also on the e commerce segment and that growth is translating into strong revenue as well as EBITDA margin improvement. And this business continues for the last six years, has been profitable and this year was one of the better years so far. So with that, I'll hand over to Nick to go through the details of Opco by Opco. Nick, over to you.
Thanks, Irvin. Good afternoon, everyone. Before I go through the underlying performance, just a quick reminder that underlying performance means that it's presented in a constant currency basis. Just to elaborate a little bit on IDOCCO Myanmar position, In the quarter four twenty four unaudited financial results, the group has represented the financial results of IDOCO Myanmar under continuing operations. Essentially, as at the end of twenty twenty four, there was a reassessment done and it worked that we concluded that the proposed intention to exit from the infrastructure segment in Myanmar based on existing terms and conditions of the SPA, share price, share and purchase agreement is no longer highly probable under the applicable accounting standards, given that the proposed transaction has yet to obtain certain regulatory approvals in Myanmar.
That said, whilst the delay in securing, the delayed, the required regulatory approvals for the, sale is taking longer than anticipated. The intention by Axiata to exit Myanmar continues to remain. As such, we continue, to pursue the current sale process, and the SPA actually only lapses on the April 4, 2025. As such, discussion on the group's full year financial year '20 '20 '4, underlying performance, and the financial year 2025 headline KPIs, does not include e.comMyanmar. Yeah?
So with that, on this slide, when we look at our underlying performance, on a constant currency basis, revenue grew by 1.9% to 22,400,000,000.0 ringgit. And this is supported by growth from all, of course, with the exception of LinkedIn and dialogue. At Excel, revenue grew 8.9% on the back of higher mobile data and digital revenue that resulted in a 4.9 increase in ARPU. And Smart Cambodia, saw revenue increased by 8.9%, from increases in prepaid enterprise and international business segment, also delivering higher ARPUs. EDO co registered a 4.7% increase in revenue year on year from higher tower and colo tendencies, for the year.
Growth was however tempered by revenue declines at LinkedIn and Dialog. And on the right, we see EBIT came in at $3,600,000,000 for the group. So I think it should be $3,500,000,000 on underlying basis. And this was essentially on the back of revenue growth and also cost management across the group as we continue to execute one of our key strategies around operational excellences where we operate. At Accel, EBIT grew by 25.1%, primarily due to the flow through from higher revenue or the revenue growth.
E.co, EBIT improved by 58.8% on the back of, OpEx management and lower Rubi saw a 23.4% increase in EBIT from exceptional OpEx discipline, despite the challenges in Bangladesh, which, saw that the revenue was essentially flat for the year. For FY 2024, Yupatami was at RM707 million, which is more than double what we saw in FY 2023. Key contributors was XL, we saw a 67.1% improvement in New Patami, due to the higher revenue. E.co was also more than 100% improvement from the flow through from higher EBIT. Roby saw New Patami increase 77.7% from the EBIT improvement despite higher finance costs and tax expenses.
And the strong growth in New Patami shown by the group was achieved despite lower contributions from CDB in FY '24 compared to the previous year. On the next slide on adjusted, OFCF or AOFCF, this increased by more than 100% year on year to RM2.3 billion on the back of essentially driven by highly higher EBITDA and also lower CapEx. This was delivered primarily also by the concentrated discipline in OpEx and CapEx across the off course, where there's also improvement in net finance costs, primarily driven by the early redemption of the USD of about USD $272,000,000 of our EMTN long dated paper. At the OpCoast, there was also a debt reduction overall. And I will cover the numbers, some numbers in the, when we talk about the balance sheet slide.
On an OpCo by OpCo basis, at the bottom of slide, you can see that all OpCo's made positive contributions to AOFCF in financial year '20 '20 '4. The standouts were e dot co at $6.00 4,000,000 ringgit, XL501 million and Smart RM255 million. On the next slide, balance sheet, we continue to focus on reducing our debt across the grid. This has been one of our key priorities for the AZATA Group from last year and going forward, essentially to reduce our debt and also improve the financial health of our balance sheet. To this end, our net debt to EBITDA ratio, has improved further to 2.74 times, at the end of twenty twenty four, comparing to 3.36 times, at the end of twenty twenty three.
On an, a borrowings basis, we have reduced our borrowings by approximately 1,700,000,000.0 ringgit, of which at the whole core, the net reduction was 400,000,000.0 ringgit. So, which accounts for the approximately 25% of the reduction. And the remaining reduction of about 1,300,000,000.0 was in selected, for most, for its sector, of course, of course, where the biggest movements was around, LinkNet, well, actually, for most, of course, apart from LinkNet and Boost. The debt level also benefited from movements, forex movements, whereby the ringgit strengthened against the dollar for FY 2024 compared to FY 2023. That's it.
Out of the 1,700,000,000.0 reduction, you could account approximately 20% was account, countable due to this Forex movement. And the remaining approximately 80% was actually absolute reduction in the, debt balances going forward. Another part of our balance sheet was actually balance sheet management is to also reduce our exposure to interest rate and forex volatility. To this end, we have increased the fixed to this end, we have increased the fixed portion of our group borrowings to 72% in FY 2024 compared to 66% in FY 2023. On Forex volatility, we've also successfully reduced our exposure with, but, especially with the potential for the strengthening of the USD and to ring it, that we have seen since the end of the year.
As such, we have increased our foreign hedge borrowing to 47% including natural hedge positions, which is up from 37% hedged in FY 2023. On our group debt, totaling of 23,200,000,000.0 at the end of the year. The average tenure is six point three years, with a weighted blended rate of 5.48%. Coming back now to my last slide, which is on FY 2024 headlines. As you may recall, we had actually set our KPI targets for revenue and EBIT growth for FY 2024, where for revenue growth, it was mid single digit and EBIT growth of mid teens.
As you can see from the table, we were slightly short of our revenue growth target achieving 1.9% growth in FY 2024, mainly due to the challenging macro and macro and competitive environment, but also with regards to Forex negative impact of Forex translation impact. However, on EBIT growth target, we outperform our target, yeah, on the back of positive cost management by the off course, where we reached an EBIT growth of 39.3% on a constant rate basis. Just to clarify, there's a slight difference in the 39.3% EBIT growth number compared to what was presented earlier on the year on year growth of 48%. And that's mainly because of the FY '23 baseline, for the headline KPI, excludes exclude, impairments of certain assets and also excludes, IDOCO Myanmar. With that, I will pass now and hand it back to Vivek to take us through, the next set of slides on Haziata moving forward.
Thanks, Nick. Just quickly the guidance for 2025, so we're looking at a revenue growth of low single digit and EBIT of high single digit. But remember, this is assuming more transactions and business as usual. Once we complete the merger in Indonesia, we will have to revisit these numbers. But this is based on existing portfolio of assets we have.
CapEx is significantly lower from last year's guidance to around $4,400,000,000 for 2025. Just to reiterate, if you recall, this is a slide which I had presented when we met in early January as part of our investors in this day. So our focus will remain on the portfolio, which is combining all the telco or connectivity businesses. We have four of them or three of them we have direct control over. The other two are jointly control and the focus will have been on operational excellence, ensuring the market sanity prevails and market repair happens with ARPU enhancements and also getting the benefits of market consolidation, which we've been the ones driving it over the years, resulting in improved return on invested capital.
I think we've seen the benefits of that in most of the markets, but there's always inertia after a period of time. The one way we've not seen that impact really is Malaysia, which we do expect things should improve. And this actually puts us in a fairly good position as a number one or number two operator into the market. And eventually, all this will result into a strong dividend play coming in from these assets of ours. As far as the Infra and Digital businesses are concerned, our focus would be how do we eliminate the value of these businesses and also look at path to monetization.
In terms of priority, eDOTCO LinkedIn would be the first one when it comes to path to monetization and ADA and BHSV, would be later on. And it's not just monetization, but also ensuring these businesses have sufficient capital for new investors for them to be able to grow and become more valuable in the market. And this all this will also mean if you look at what the corporate center role would be or the group role would be. Just on the right hand side, priority will remain as cash flows and profit. And a lot of that will come out of focus on connectivity and convergence business, which I talked about the ones on the top, looking at prioritization investments into Malaysia and emerging markets.
And frontier markets would really be around improving the market position and ensuring the balance sheet resilience is maintained. And if I go back to the one of the slides which Nick had covered, I think you would see the net debt to EBITDA as well as the cross debt to EBITDA of some of our frontier markets are actually very, very strong now. Overall, actually, all three assets put together, we are actually positive when it comes to dollar balance. So I think that's been one of the key focus areas. While I know a lot of investors do have concerns over our presence in Frontier market, but I think we've been able to build that strong resilience by managing the balance sheet, the investments and the returns from these assets very well.
And I think the last bit is really around consolidation in Indonesia, which would be a key step. And on our focus, we expect once the synergy starts coming in that should help increase the value of the Indonesian asset as well as impact to Axiadag. What are the risks? I think the there's nothing I mean, you're all aware of the developments on five gs wholesale network in Malaysia. We haven't landed, I mean, into the final outcome and the clarity around that would be the one key elements for us to take this risk out of us.
Competition remains volatile. Having said that, as I said broadly, we've seen markets behaving much, much better than they've behaved in the past. Monetization of digital infrastructure assets, I think that's one of the key priorities for us. Having said that, I think the risk is interest rates remain high and whether the right kind of value you will be able to get as part of the monetization exercise. Frontier markets, I think while we manage the balance sheets well, but the fragile economic conditions and political environment is something which we will have to watch on and that might have coming risks off and on in these markets and really around value elimination.
I think ADE has been fairly strong. It's really about the financial services fintech business boost as we move to path for profitability and bring building the digital bank whether we will be able to get the right kind of value for these assets. Opportunities remain on portfolio optimization, which is really coming from the strong balance sheet, which we are working on. The merger synergies, dialogue via CDB as well as once Indonesia has completed, that will be a key opportunity for us and market repair and cost excellence as a priority for all of our footprint markets. So with that, Claire, I'll hand over back to you.
Thank you, Vivek and Nick. Moving on to the, Q and A session. And I would highlight that we also have, representatives from Excel, EDOTCO, Linnet, Roby, and dialogue on the call. If any of you have questions for them too. So basically to answer your questions, you may choose to do this verbally.
Just raise your hand to be called up for your turn. Otherwise, you can also type your questions in the chat box. So we will now start our Q and A session. So perhaps we will take the question that actually came through, via email from, Louis from CityFirst. He does have a list of questions.
Sure.
So let's go through that whilst we wait for the rest to prepare for their questions. So I'll read it out. First question is, does the, FY twenty five guidance incorporate second half merger happening in Indonesia?
No, it does not. As I said earlier, this is based on the BAU and any, any completion of the transaction, we will come back to restate the guidance.
Okay. Second question, some housekeeping questions over here to understand the q on q performance of Opcos. Firstly, is for Roby. Question is what drove Roby's, profits up by 59% quarter on quarter in fourth quarter despite lower EBITDA as well as EBIT?
So I think one of the reasons for that is, we've been the realized losses on Forex, which was higher in quarter three, we saw gain because we've been pairing down some of the debt. And that impact has helped and also the overall debt has reduced by around 33% to around $9,600,000,000 So there have been efforts to reduce the debt coming out of these better cash flows and also to some extent benefits of taxation.
Okay. Moving on to his third question, which is actually on dialogue. Again, a Q on Q performance question. Whilst dialogue's profits were up Q on Q, despite what was the driver between for the performance from the improvement in profits Q on Q basis?
Maybe we ask, Supam to answer that. Supam, you're on the call.
Yes. Yes. I'm here, Vivek. Hi, everyone.
Yeah. So the key, improvements come from the price hardening that we continued from q two and then the results of that price hardening market actions. Then, big impact coming from the Airtel merger consolidation and synergies resulting from the merger. If you recall, we acquired Airtel, end of q two. Q three was more, consolidation, but big part of, synergy started coming from, the fourth quarter, and then that gave a boost to the earnings.
And then, we expect to see this going forward as well. So market repair, results, price hardening, then, Airtel synergies. And apart from that, cost rationalization initiatives, which continue.
Thank you, Subhan.
Okay. We move on to the So the question is what provided the partial relief at the bottom line for LinkNet performance in fourth quarter?
So I think, one of them is it's really not comparable quarter on quarter for LinkedIn because till September 30, we had they had the consumer business, the retail business, which was, as part of their portfolio, which was thirtieth September transferred to Excel. So you you had that impact of it taking away a fair amount of EBITDA to the other side. But in return, they also got the money of around $120,000,000 right? That money was also used for paying down some of the debt. So you would see the impact on the interest costs coming down because they paid down some of the debt.
So I think that's so it's not really comparable. Second, I think, is quarter three when we did this transaction, there was tax which had to be paid on capital gains on the sale of, on the transfer of customers to the Servco, which was around $104,800,000,000 So that also had an impact in quarter three, which didn't feature in quarter four.
Okay. Thank you, Vivek. Let's move on to question number five. Why did EdoCo Malaysia's revenue drop 12% on a Q on Q basis in fourth quarter twenty twenty four?
Maybe Adnan is there on the call. Adnan, you're on the call. Ramesh?
Yeah. You're right. Yeah. Yeah. I'd like to. Yeah.
So I think, if you if you look at the performance for this year, last year of Malaysia, I think that's essentially due to the recognition of general revenue. Because general revenue milestone, there were quite fair bit of recognition in the previous quarter. Right? And then I think, you also see that if you compare on a year to year as well, the daily revenue last year, we have recognized a substantial subcompact to 2024.
Okay. Thank you, Adnan. One more question on EDOCO. Essentially, what drove continuing operations at, at Patami level into losses in fourth quarter despite the higher EBITDA and EBIT performance on a Q on Q basis?
Yeah. Okay. So if I can take that, I think it's predominantly driven by forex, driven from our debt, foreign debt, U. S. Debt that we have.
If you see in quarter three, there was a strengthening of the ringgit to dollars, and essentially the reverse happening in Q4. So we actually took a $316,000,000 ForEx losses in Q4 that's driving the performance in negative patami in Q4.
Thank you. Thank you, Adnan. Okay. We do have a question coming from the chat group. I think, it's from Prem.
Any updates on the link that recapitalization exercise, can we expect something in 2025?
Yes. Hi. Premal, I'll take this question. With regards to, LinkNet, it's already, I think it has previously reported in the market. Actually, Arzeta has launched the first phase of a process with a teaser and invitation sent out to parties to essentially look at a potential recapitalization of LinkNet, but not limited to that, right?
So I think when we went out with a teaser, it's also with a view that there could be control available with a potential of a full divestment as well. So we're still early stage of that process. We're currently still in phase one where parties are signing up with NDAs, where the next step will be getting non binding offers to evaluate whether to proceed to the second phase of the process.
Thank you, Nick. I think Prem has a follow-up question on e.co. Question is, forex gain in e.co. What was the forex gain in e.co?
Right? Yeah. That was 167,000,000. Right?
Yeah. $1.97 gain in quarter three and 01/2019 loss 1 hundred and 19 loss in quarter four.
Okay. Thank you. I don't see any other questions. Maybe we give a couple of seconds if there's any further questions today. Just a reminder to everyone, you can, put your questions in the chat box or you could also raise your hand and we can unmute your line for the question.
Hi. Good afternoon, Vivek and Nick. Thanks for the updates. Hi. Hi.
I just maybe just to carry on on the earlier question regarding the linked net recapitalization. And so you may forgive my ignorance on this but I think the question here is that we all we also understand that you know, you are looking at potentially selling the fiber business. So is the sell sale of the fiber business part of this exercise? Is it separate? And, you know, I know there is, probably some privacy concerns, but if you can give us as much color as you can on your thoughts regarding how the sale of the fiber business is progressing, would really appreciate that. Thank you.
I think, Siamwe, thanks for the question. So just to clarify, we had launched a process, with regards to the which, with regards to the recapitalization of LinkNet, but which also includes the possibility of acquiring the company. So as such, it's still very early stage of the process where we are as of today. Just to reiterate, at this point in time, we are in the midst of essentially signing NDAs with interested parties where the next stage will be to then, where they will be given, some basic information, around invest, the investment memorandum, some, some some numbers so that they can have a look and then, come back with their thoughts in terms of how they would view LinkNet and approach potential investment into the company.
Oh, thank you.
Just to clarify the processes for LinkedIn and fiber businesses inside the LinkedIn.
Yeah. That's right.
LinkedIn also has the enterprise and media business. So the processes for the entire company Yeah. Which includes the fiber fiber business.
Yeah. Sure. Thank you. I think that's quite comprehensive. Thank you very much.
Okay. Thank you. We do have a question in the chat group from Li Lian from UOB. Question is, is it possible to elaborate more on competitive landscape going into 2025 for both Malaysia and Indonesia? You mentioned briefly potential for market repair in Malaysia.
So so I think let me start with Indonesia First. I think while we've seen, aggressive posturing by the leader in that market and the others following, I think as far as Excel is concerned, Excel has stayed their course on getting the ARPUs and also ensuring that their customers are protected. So they're not really seeing a big drop in their ARPU because we've seen that impact on the other players. But if you look at the posturing by the two competitors on the market, they've been messaging market repair. So we do expect market should start getting more the sanity should come back on the market and the ARPU development in Indonesia.
So I think that's something we are looking forward to. Malaysia, I think competition remains intense, specifically, I guess, on the prepaid side. And we're not seeing major change happening on the market pricing at this point in time. So for me to say that there is a potential for market repair in Malaysia would be quite early to make that comment.
Okay. Thank you, Vivek. Thank you, Lian. I don't see any further questions online. Okay.
So, perhaps we will end the call, and then I hand over to Vivek for his closing remarks for the fourth quarter results briefing.
Sure, Claire. First of all, thank you everyone to join. I know it's a earning season and you are jumping from one call to another call, but thanks for taking our time to listen to us. I think, from our perspective, there's been a journey we are going through. I think year one when I took over and then Nick joined later on, we were basically trying to repair our portfolio with focus on those five portfolio of assets, which in my view, I think we've done well.
May not be exactly in the timelines which we had expected, but given those things require lot of regulatory as well as the counterparty discussions. So that's taken a little while, but things are falling in place. I think we have a fairly strong market positions wherever we have operations as well as consolidation in the market. So I think that puts us in a strong position. Now it's really around portfolio rationalization, which is really looking at value elimination monetization and continuing to focus on our core connectivity business.
So that's a journey we are going through. Once we are able to execute some of those steps, able to pay down our balance sheet and make it more sustainable long term, then I think it's we will have to get into discussion with the investors on what's going to be the next phase for Exadata. But at this point in time, we are not focused on completing some of these transaction. We expect in the meantime, the operations continue to deliver a very strong operational performance. Thank you very much for joining us and have a good day.
Thank you.