Good morning, everybody. We've got Peter Randemacher on the call from the cast from Amsterdam on the cast from Amsterdam along with Victor Knapp and Wesley Te Hart, the 2 founders of MediaMonks. They're both in Amsterdam with Peter and then we've got Scott in Singapore, Scott Spirit and last but not least, Chris Martin, who's in Boulder, Colorado at some unearthly hour. So having said that, we have a fair amount to get through, so we'll get cracking. Peter will will cover the results.
Scott will talk a little bit about client momentum, about mergers and integration. Unitary structure, Wes, Amsterdam. We'll weigh in and then Victor will talk a little bit about the content practice. And then Chris will talk about data and the Digital Media Practice, and I'll come back with a brief summary and outlook. So straightaway into the results with Peter.
Thank you, Samartin, And good morning from the Netherlands, and thank you for joining us in our call. And I will present to you in the next slides our financial performance over the 1st 6 And as a short summary, we had a very strong first half start to 2021. Our results confirm that S4 Capital is converting at scale with our 5 whopper clients and high traction through lend and expand with most other clients. On our 3rd birthday, as a listed company, I'm very proud to present to you our significant growth over the 1st and the second quarter of 20 Amsterdam. Our growth is significant, especially if you can take into consideration the fact that last year during the pandemic, each month and as a result, Each quarter showed like for like growth.
So we don't have the easy comps to 2020 that some companies may have. Comparing 2021 with 2019, we grew with 61%, and this is adding up this year's like for Growth of 49% in the first half of this year, plus the 12% we realized in last year. But on a real like for like basis, on Constant currency basis, this was even at 75% growth as a 2 year stack. Now turning to the financial performance on Slide 4 of the deck. The billings, euros 547,500,000 and pro form a billings were €560,000,000 To remind €9,300,000 up 98 percent from €141,300,000 last year.
And on Like for like revenue was up 56% and pro form a 57%. Our gross profit, our most important measure, to €7,000,000 up 91% on a reported basis from €124,000,000 last year. And like for like, that was up 49% in pro form a, 50%. Our operational EBITDA, euros 34,300,000, Up 91% on a reported basis to last year, like for like up 30% and pro form a up 36%. And our EBITDA margin was 14.5 percent equal as in 2020 on a reported basis and like for like 16.7 Pro form a, EUR 15,700,000 Our operating loss, EUR 16,100,000 versus Operating profit we had last year of €1,300,000 and our operating loss like for like was €18,100,000 And Our operating loss is after charging $47,400,000 of adjusting items relating to acquisitions, amortization and share based payments.
And that includes It's €16,100,000 in contingent combination payments tied to continued employment. This adjusting was in 2020 a credit of €1,300,000,000 So there's a big delta compared to last year. Our loss for the period was €21,100,000 which includes adjusting item after taxation versus a loss of €1,400,000 in 2020 and a like for like loss of €21,600,000 Sorry, our adjusted basic earnings per share was 3.9p versus 2.3p in 2020. And strong liquidity through the first half, come back to that, of course, after significant merger payments with The period and net cash of €7,400,000 And in early August, the company has completed €375,000,000 7 year senior secured term loan and a 5 year 100 Sterling senior secured multi currency revolving facility. And a good start to Q3 2021.
And based On this 7 month period, the gross profit the company increased the guidance for the 3rd time from to 40%. So we started the The year with 25. We upped it after Q1 to 30. At our AGM in June, we increased to 30 And now based on these results and a good start in Q3, we upped it again and it's now at 40% guidance for the On the next slide is our quarterly performance since Q1 2020. And as I just mentioned, we have been growing Our like for like gross profit each and every month with strong growth percentages.
And to remind you, we did 19% in Q1, 7% in Q2 2020. And then in Q3 and Q4, we are back in the mid-twenty percent And over Q1, we reported a 33% growth and now in Q2 with 66% growth delivering for the Bring for the 1st 6 months of 2021 a like for like growth of 49%. And on our next slide, our All of that condensed consolidated income statement with our like for like constant currency numbers and pro form a constant currency numbers, which we typically include Also as a result of our mergers and our inorganic growth. So that gives a better comparison on a like for like and a pro form a basis. And I will I'll highlight a few numbers, of course, in the next couple of slides, there are a lot of numbers involved.
The gross profit, our most important measure again, was 21% as I just mentioned versus last year, 49% and on a like for like basis and 50% on a pro form a basis. And in the first half, we realized an operating loss of €16,100,000 versus 1.3 €1,000,000 last year. As you can see, this was heavily impacted by the increase of adjusting items. Last year, the adjusting items were Almost €50,000,000 and this year, there are €47,000,000 So in other words, an increase of €32,000,000 Our acquisition related expenses are the main This is sort of main component of this increase of around €25,000,000 And the extra charge is the result of our deal structure, like we mentioned Earlier or at our prelims last year or this year in relation to 2020 as a result of our deal structure in M and A In our deals, we include protective covenants, and one of these is continued employment during the period of the contingent And in line with the IFRS rules, this means that contingent considerations needs to be included as personnel expenses, which we then adjust. And as such and it's not treated as a goodwill or intangible On the next page, the EBITDA is shown and Before and after central cost.
And they're growing after central cost with or sorry, before central cost with 91% on a reported basis and 35% on a like for like basis and 41% on a pro form a basis. And before For Central Coast, the margin in 2021 was 16.5% on a reported basis, which is the same as 20 And after Centropos, the EBITDA margin as a percentage of gross profit was 14.5%. And That's again the same as in 2020, and it's the result of significant investment in human capital integration and implementing unified tooling in the group. I'll In the group, I'll come back to that slightly later. There's 93% growth in adjusted operating results and 100 and 2% growth on an adjusted profit before tax.
On the next slide, the basic net result per share and adjusted basic earnings are shown. Main increase in adjusting item consisting of acquisition related of 7,500,000 and share based compensation of 6,300,000. Revaluation of contingent consideration. This is, as I We adjusted the amortization of our intangibles that are separated from goodwill and amortized for a period of around 10 years. This all Results in a basic and diluted net loss per share of 3.9p and an adjusted earnings per share of 3.9p growing was 66% compared to last year.
On the next slide, the balance sheet That increased to almost €1,300,000,000 as a result of our organic growth, of course, and Driven by the complete and transactions in the first half year of tomorrow in China, Stout in Germany, JAM3 in Canada and Racoon in Brazil. It doesn't take into consideration, of course, Destined because that was announced after Our net cash for the end of the second quarter was €7,400,000 which, of course, does not contain The refinancing, which was completed very early in August of this year. And turning to the next page on the cash flow statement. The Cash flow from operations were 60% of EBITDA as a result of around there was around €18,000,000 Investment in working capital and cash flow from investing activities was almost €55,000,000 mostly related to And finally, from financing activities, we used our existing revolving facilities to finance the And turning into the next page, our gross profit and operational EBITDA. The 91% growth split between content at a growth rate of 66% against in 2020 and Data and Digital Media at 169%.
The Content operational EBITDA was €16,800,000 with a margin of 10.7%. The Content Practice Amsterdam. EBITDA margin, 10.7 percent like I just mentioned compared to 16.4% last year, again reflecting increased Investment in human capital in the first half here to staff our whoppers and prepare for a stronger second half And build our client team structures, our integration tools and our software, a unified software in our unitary organization for the Longer term, so that impacted on the EBITDA margin of content. Our daily data and digital media operational EBITDA was €22,400,000,000 €1,000,000 with a margin of 28.2 percent compared to 16.9% last year. And that's reflecting Positive impact of our organic revenue growth and on operational gearing and a fall in travel offers and other operating And then turning to my last slide with the gross profit by geography.
On a reported basis, America grew with 90%, EMEA was 101%, and there was also the result of BMW And strong presence in EMEA and APAC with 76%. And the Americas still count for 71% The total, which was last year 72% and pro form a 72% and last year 74%. So slight changes, but not significant. EMEA 20% now, last year 19% and on a pro form a basis 20% and last year 18%. And finally, Asia Pacific at 9% of total.
Last year, it was also at 9% and pro form a this year and Last year, we're both 8% contributing to our gross profit. And this ends my part of the presentation, and I will I'll hand over to Scott.
Great. Thanks, Peter. So if we head on to the client slides now On client momentum, you'll see here that H1 was extremely strong for us in terms of new business for S4. And that was Key driver of the impressive growth figures that Peter has just taken you through. We've seen great progress with our well established client base, so strong Consistent expansionary growth from our larger clients like Google, Facebook, HP, Netflix, Mondelez, etcetera.
And there's a couple of I'd like to highlight here, which I think really exemplify the speed and scale of growth that our land and expand strategy can deliver for us. So if you consider DoorDash, it's a company we won a small project for last year. That was our first entry into DoorDash. We did a Valentine's campaign for them, which was very successful and led to a few more projects last year. And if you look at the H1 this year versus H1 last year, we're doing 20 times the revenue with DoorDash than we were last year.
PayPal is another great example. So that was also a win early last year, and we had a small embedded team on the West Coast. And this has successfully expanded to similar remix in Europe and Asia. And our H1 'twenty one Revenue versus H120 is up 10x. And they've actually just broken into our top 10 clients for H1.
So all of this is without any Time wasted on pictures in the traditional sense. On the Lam side, you'll see that we've added some impressive logos in So we've got exciting new work launching for Instacart, TikTok, Shopify, Riot Games, OLX amongst others. Our fashion Luxury team that we hired in London have got off to a great start with multiple wins. And in several pictures, which whilst large for us probably would not be instant whoppers on the scale of BMW or But honestly, progress remains relatively slow versus our established land and expand strategy, which is For sure the focus of our new business efforts. On to the next slide.
So if we look at our clients by That's agreed. There's relatively little change. Technology continues to dominate, thanks to strong growth from our existing client base there and some exciting Auto is the fast emerging category for us. That wasn't really even on the chart this time last year. Thanks largely to Vic and the team on BMW.
It now represents just over 5% of our revenue for H1 21. It's not BMW. There are some other auto wins in there as well, but obviously BMW making bulk of that growth. Mondelez has provided an almost 2% jump in FMCG segment too. Next slide.
So this slide really speaks to the evolution of our WAPA strategy and The growth that we've seen in the scale of our relationships with our clients. So as you can see on the left chart, the average size of our top 10 clients is up Over 60%, our top 20 up over 75% and our top 50 up over up 80%. The table The right shows how many clients we have in each revenue band and the progression you can see from H1 2020 to H1 2021. We now 10 clients over £5,000,000 versus only 2 last year. And the number of clients in the £1,000,000 to £5,000,000 and 0.1 to 1 have also roughly doubled.
This shows a strong pipeline for our WAPAs in the future. This is a result of our successful land and expand strategy And investment in our client management function, which is something Vik will cover in more detail later on and Peter has already referenced. Move On to the next section and next slide. From an M and A perspective, we certainly ended 2020 And started 'twenty one with a flurry of deals, which have all integrated well and delivered some great results for us. We've continued to add industry leading capabilities and talent in data, in content and in digital media.
And after H1, that's also continued. So we've added Salesforce capabilities were destined and creative and cultural capabilities in the recent cashmere deal. Peter and his team raised our term loan of €375,000,000 in July. And as we've discussed, much of this will be directed at future mergers in the We have a very strong pipeline of potential deals across all areas of the company and all And look forward to revealing more of that in the coming months. Next slide, which is the last one for me.
This means That I now have almost 6,000 colleagues around the world, which is very exciting given how far we've come and how quickly we've come in 30 And as you'll have seen, we recently unified all those colleagues behind our single brand architecture of media. Monks, which is the perfect Segue for me to hand over to Wes, who's going to cover that in more detail. Over to you, Wes.
Thank you, Scott. And hey, everyone. I We'll talk a bit about our unitary structure and why we are all so excited about the period. If we go to the next slide, I think it starts with understanding The foundations of S4 founded in the middle of 2018 to be different to what the traditional networks and consultees were doing, which means truly single P and L, no acquisitions but mergers, so we don't get stuck with the preferred incentives of earn outs and then no internal Commercial billing. So on top of that foundational difference, we added lots of amazing teams and talents.
You can go to the next slide. We We ended up in August of this year rolling out the Unitilu brand for a really key reason, which is even though we were operating and organizing in very different From a distance, all of the different labels and logos still made it feel a bit like a network. So it was time if we go The next slide. One thing that no one else has been able to do in our industry, which is at our scale, roll out a truly Single brand solution. I think also if you look at what we're trying to do, being a disruptor in our space, I think One thing nobody else was able to do is sort of the core definition of disruption, but it isn't just about that.
If we go to the next slide, it's also about delivering on our Amsterdam. We want all of our people to be colleagues because that means they can work everywhere and on anything within the structure that empowers them Keep going and growing. This is about more career opportunities. This is about more opportunities to do best in class work. And for us and our leadership colleagues around the globe, it also means At scale, we can make this a truly best in class place to work.
Promised to our clients is easy. They need access to the very best talent and subject matter Across all of our integrated capabilities globally, truly operating as a single P and L because that makes us a Change agent partner. It means we are helping our clients accelerate and innovate their advertising, marketing, media and technology And of course, promise to the market, we are building a different and because of that foundation, a better business model that will create more Stakeholder value. If we go to the next slide, this is what we rolled out with MediaMonks with 2 Specific areas that I'll talk about in a bit more detail. 1, of course, the integration of the mighty eye hexagon, which isn't just part of the logo, but is also the way we talk about our internal organizational But it's also the way we talk about our internal organizational model and the dot.
And if we go to the next slide, the dot creates what we call So within Media. Monks, we also have the likes of Data. Monks, Social. Monks and others. And it means there's lots of ownable for merch teams to still be entrepreneurial and be in the driver's seat while we are able to turn up as one for our clients.
We'll go to the next slide. Brand launches and rebrands tend to be quite critically looked at, lots of focus on it. It tends to be under a spotlight. I We could not have had a better and more seamless one, so massive thank you to our marketing team as well. We had very positive press in all of our flagship publications that we And after the likes of Ad Age campaign and the drum.
And then if we go to the next slide, that sort of flagship positivity led to Lots of local and regional opportunities. And just if you were in this industry and on LinkedIn, in about a 2 week period, I think it was pretty much impossible to not be on what we were doing. We really sort of, as we like to say, we're feeding the feed with this story and what it meant for our teams and talent. And then if we go Next slide. I think it culminated in a really great article in the run by Sorel's S4 Capital issue.
It's so damn attractive right now, which also mentioned our So that is the rebrand. I want to spend a few slides talking about This means from a model perspective. We can go to the next slide. So having rolled out as a truly unitary brand, it allows us in more More detail and with more confidence to talk about our ambitions and aspirations, which are to win a decade. And to do that, we have ambition, which is to change an industry.
When we About changing the work, changing who does the work and changing what the work can do within a mindset of never standing still, which really is a reflection of the entrepreneurial energy That we have throughout the organization. But to make those things possible, we have an organizational model, if you go to the next slide, that we or the API. And the API, if you go to the next slide, really is just a model that allows our to connect, communicate and collaborate in ways that are pretty much impossible in traditional networks. In part, this is down to the technology that we're building. Everybody is on the Technology stack, we have a team that is doing amazing work around employee experience, but it's also making sure our teams are put in collaborative spaces instead with competitive spaces, and this is about vulnerable space.
So if we go to the next slide, the API connects what we They operate globally. We have country teams which are really focused on winning local markets and making sure we can recruit and retain the very best talent in all the markets we now And both of those teams have seamless access to our capabilities, which is really end to end best in class subject matter expertise that deliver parts of our promise. A great example of that is our social team. Also, scenes have accessed our course, which is our We scaled up our course massively over the last 6 months, making sure we have the talent to staff and service our clients quickly. All All of these teams are being supported by our best in class corporate structure, HR, legal, finance and the like.
And then we have something called categories, which is really our categories, which is really our go to markets. And we just mentioned the fashion team. We're continuously launching new go to markets that allow us to be part of emerging Stasis Metaverse being a really popular one at the moment, of course. So that's an update on unitary structure. Lots Excitement, lots of early success.
And with that, I will hand it over to Victor.
Hello, everyone. Thanks for Joining in the next few minutes, I will take you to the content practice. And if we go to the next slide, in short, it Means if it happens on a screen, we do everything it takes to make it happen. And Moving on to the next slide. We're in it to win it.
So that means we're focusing on best in craft class So besides our financial growth, we're super proud that we won 17 Cannes Lions, 6 Webby Awards and in total more over 170 awards in Creative Craft. And one of the examples That you see on the right side is one of the most iconic pieces of work that we have done for This must be the shortest showroom we've I showed you. But if you look at it, all of this has resulted in becoming Webby Production Company of the Year, Something we aimed for, for a very long time, with 4 projects that really stood out. Spotify, I alone with me. As just previously mentioned, Reporters Without Borders with Uncensored Library, it's actually The first glimpse into the what the major first can do.
For Netflix, the dark Netflix guide and for Sanofi, KD World. And it's not all about awards. On the next slide on the next few slides, I will take you and run you through our next 6 months goals. And there are Four major pillars we will focus on. How we change the work, how we change how who does the work, How we're changing what work can do and the impact we're making with the work that we're doing.
And I will touch briefly upon all 4 of them in the next few slides. So Let's start with the change of work. And one of the most exciting products at this moment is our live event business. Due to We've set up the stage for flexible hybrid experiences. We built immersive worlds for Pokemon Post Malone, and we created a strong festival design with live multi user experience will continue as a Focus for brands as they set their sights on the coming Your engine, we help brands to build immersive 3 d experiences.
And if If we go to the
next slide,
we're Also, we're always looking for talent outside of the traditional agency environment and inject Perspectives into our team. So we made a lot of high profile unconventional hires, but also Jamtree's intense commitment to craft and Stout Studio's expertise in real time personalization in automotive, Cashmere's cultural And together, we're casting diverse digital native talent in work that truly And that passion is shining through our award winning work. And Looking at that, I think our work with Mondelez is really showing off in that. Our MONOS partnership almost enters the 2nd year and has caught the attention Research firms at Wark and Forrester. And it's helping MomoCast to reach audiences around the world with hyper relevance.
And in addition to this, our work for the real time production of OREO has also served as the basis of Epic Games, Epic future courses to show how 3 d ads should be produced. And if we Look at our people. We have long realized that our role to drive diversity and inclusion within the ad industry is that has Exclusive for many. So in addition to welcoming culture agency cashmere to our team, we've built a mix of pro bono work that cast a spotlight on creatives and entrepreneurs of color. And we also placed a greater focus for LGBTQ You pride with brands like YouTube, Adidas, Oreo, TikTok and many more.
So to conclude this, And I will spend a little bit more time on that because H1 has been very Interesting from the content side. It is the most active new business environment we've ever been involved in, in the 20 years that Wes and I are in the business. And we're making sure We win more than our fair share of logos. With some of them, we expect to become future whoppers, but also local hero a lot of work to do. The client first model we are building out will pay off well in the future for For us and for the brands we work with, and we're seeing higher profitability in H2 and bigger gains to come in 2022.
We will keep on expanding with our existing client base due to a high pitch rate and our ability to quickly staff and service requests as they come in. We need to keep on investing in talents, teams and subject matter expertise and put them in front of our clients. So we drastically shortened our TTM, time to whopper. And with many clients moving much more quickly through the Revenue brackets than we mentioned earlier. So that's it from the content side.
That's it for me. And I'll hand it over to Scott to tell
Chris Martin. I run our data and digital media practice here at MediaMonks. So the theme that Victor brought up was if it happens on a screen, We do everything it takes to make it happen. And much of that magic happens behind the scenes with our data and digital media practices increasingly in lockstep with our content and creative units. Our unitary approach and our 6Cs foundational API structure And our brand new name, and the data and digital media practice continues to build from that center of the hexagon and uses It is privacy by design to weave together technology, media, data and content capabilities for all of our clients with a glue that brings it all together.
So ADM has been delivering significant organic and inorganic growth on both the gross and a contributing margin year on year as well as the 2 And in 2021, we started setting our sights on our top content walkers, making sure that we're Bring the full portfolio to our comprehensive client sets, as well as supporting full agency of record opportunities, which we are increasingly finding Ourselves being invited to as a foundational disruptive change agent into what it means to be an AOR of the future. So In the first half of twenty twenty one, we've invested in 4 key areas. 1st, video End to end consumer behavior is changing what, where, when and how video is consumed and that leads to fragmentation and new formats. And the brand marketers toolkit is changing very, very quickly. We need to be able to act even faster and get ahead of the curve and enabling brand marketers to be able to reach the various video formats on many different platforms.
So to help drive this very important category, we tapped Richard Lawrence, Amazon uses to grow brand equity for their clients and capture a very hard to reach audience that have long Migrated away from linear television and are now using and consuming media via Amazon and we're watching Amazon very closely as they make moves The largest scaled player in the space with consumer data, both capturing consumer data The other advanced TV formats, for example, subscriptions, CTV or connected TV, programmatic television, over the top This fragmentation is making it very confusing for the brand marketer to really reach its audience with the right message. But we're bringing it all together with the best of breed practice inside of MediaMonks. So the second area I'd like to highlight is marketing effectiveness. You may or may not Remember back in 2019, I launched a plan to build a global analytics deployment capability for MediaMonks, recognizing and anticipating The death of the cookie and more importantly, the death of the deterministic identifier. These are the unique keys that allow us to stitch together The consumer journey across many different websites and that technology is now going to end in the next few years.
So we got Way ahead of the curve and built out our measurement group, the marketing effectiveness group. This is primarily powered by our friends of BrightBlue A significant number of our customers as not just a bolt on, but a foundational capability for their marketing practices in House fully owned and operated by the brands in Right now, this is a code word for our sales force practice, although we do plan to expand well beyond sales force when it comes to CRM and CVPs. But sales Capabilities to make sure that we are building that digital concierge capability. Of course, you've now heard about our merger with Destined in Sydney, Australia, area covering Asia Pacific, which will be the first of hopefully more moves to grow our Commerce Cloud, Marketing Cloud and Service Cloud capabilities with Salesforce. And I look forward to the continued momentum in the second half of this year.
And in Final bucket of investments, what we're calling performance monks these days. This The concept that SMB growth in challenger brands direct to consumer capabilities will need a different We need to integrate this not only into our enterprise portfolio, but also take advantage of the significant growth in small Business and up and coming business that launched brands from effectively 0. So I'm reminded of the Sir Martin interview with I change the work that we do, but that also made me think of the Evan Carmichael Shark Tank interview where He talked about how 4 years ago he would have told you that graduating students should be studying engineering and statistics and math in order to be productive Cost and activation energy required for direct to consumer brands, the storytellers are going to be the drivers of the new economy to be able to bring Direct to consumer relevance and personalization directly to consumers. And I thought that was a very telling interview and supports Our view that the performance investments that we're making are going to pay off for our clients in the future. Digging into some of the case studies that have been This nonprofit client for over 2 years with a mission of building a best in class digital team focused on becoming more audience centric, data driven and nimble, a particular eye on efficiency in order to extract as much value as possible from donation dollars.
MediaMonks successfully helped this client reimagine their entire organizational structure when it came to marketing, clean up their pay Media executions enable them to be more data driven on how they optimize those executions. And this came to fruition during their year end campaign where We were able to help them achieve or a 90% growth in donations year on year, a massive number for philanthropic and a ROAS exceeding 2 40 percent per dollar spent. We brought in $2.40 on this attributable campaign alone. And so this They set off on a mission to acquire the next 11,000,000 donors, 11,000,000 new consumers, donors, while to cultivate relationships that they have with their existing donors. So in order to do this, they're working with MediaMonks to increase maturity across Salesforce Marketing Cloud and bridge the gap between AdTech and MarTech by bringing email and paid channels together.
So in The current state, our work is focused on unlocking the massive amount of first party data that this client already has and using that to build the foundation for A future proof model that will enable automation and cross channel personalization of their marketing efforts. And as an anecdotal sidebar, This client received a $100,000 one time donation attributed directly to the direct TV spot which we decided to run on YouTube for them for the first time. This particular person who made this donation called the 1-eight hundred number that was listed on That spot and we were able to directly tie that and measure it against the campaign. That is an enormous success story to bring a DRTV linear campaign to a digital channel and have so much return on investment. So moving on to the Next case is Mattel and I'm excited to say that we are now working with Mattel who brings joy to 100 of millions of children with brands such as Barbie, Hot Wheels, So they need a significant amount of help in implementing CDPs, understanding the activation points and bringing all of those brands to a whole new Generation of consumer behavior.
The next case, Five9, one of the growth Amsterdam. I'd love to talk about in the performance space. So this year, we began working with Five9 and their paid social programmatic direct buys and other buying Efforts which scaled their managed budget by about 15% and as a result our performance unit is generating About 20% to 30% more in revenue because the pricing model that we have with them. We're going to be supporting the integration of Five9's merger or acquisition direct to consumer and launching them into the stratosphere. Some other performance clients that have been acquired are IPO ed in our performance unit.
Corus. So our final case today is Pearson and Pearson is an interesting case study Because I personally believe that this is not just a DBM story, but a comprehensive media month story, a truly combined effort across all of our 6 Cs, countries, categories, capabilities, woven together in a single comprehensive engagement, bringing a lean Important to the clients, a lean team of 50 people with the best most relevant talent from across the globe stitching together all of our best capabilities for our clients. So we are looking forward to a very strong 2021 rounding out the second half of the year here. And I Amsterdam. I am excited to hand it back to Sir Martin so he can share our comprehensive H2 and 2022 outlook.
Thank you.
Thanks, Chris. Thanks to Victor and Wes and Scott and Peter. So just a brief summary. And before I do that, I think from an analytical point of view. There are really 2 industries at work here.
1 is a high growth digital industry and the other is a slow growth or limited growth traditional industry. This is really shown by the 2 year stacks. These are simple stacks, meaning we add just the organic growth In this case, it's a simple 2 year stack for Q1 and Q2. And you can see in our own case and in the case of the platforms, Google and Facebook and indeed, the other companies in the digital areas such as Accenture and Globant, you can see the scale of the 2 year stacks in Q1 and Q2 versus the more traditional media companies. And I think from an analytical point of view, we particularly with digital crossing 50% of the Street last year for the first time, probably this year at around 55% to 60%.
And by 2024, we calculate or others calculate it will be 70%. So turning to the final slide or the summary. Strong organic growth in H1, 50% organic growth. Accelerating in Q2 from 33%, doubling up to 66% and that growth Continuing into July, which is over 50 percent organic gross margin, net revenue growth, 2 The stack that says July last year, as you know, was about 18% Continued strong liquidity, and that's been boosted from a resource point of view from by the €375,000,000 term that we took out in July. A very strong and healthy merger pipeline, not just in data Continued progress in our unitary structure and continued new business success and WAPA momentum with 5 in prospect 2 or 3 for next year, and we've identified 15 out of 20 as potential.
We've raised our like new guidance for the 3rd that time this year to 40%. The original target was 25%. We took it up to 13%, 30 Ivan now 40. And of course, in the first half, we've done 50. And we reiterate our confidence in this 3 year cycle from 'twenty one to 'twenty three, but the 3 cycles that we've had from '19 to 'twenty one and 'twenty to 'twenty two.
And we're starting to look, of course, at 'twenty two to 'twenty four as we start to do our 3 year plans and budgets for next year. Our strong prospects for the second half of this It started well, as you've seen. There will be continuous tailwinds in 'twenty two, not just GDP growth, but digital transformation. Information. Literally, the tailwinds from GDP growth will taper towards the end of 'twenty two and 2023.
But digital disruption and transformation will continue at pace. And usually, When GDP slackens, as it looks like in 'twenty three, it will do to around the pre COVID levels at 2% to 3%, digital transformation gears up at stronger speeds. So a good outlook as we move into the back half for 'twenty one and into 'twenty two and the prospects for 'twenty three. So with that, we'll open up for Q
comes from Omar Sheikh of Morgan Stanley.
I've Got three questions, if I could. Maybe the first one for Peter on margins. Peter, could you just give us a sense of where you think second half adjusted EBITDA margins May land in the context of the investment that you're making in headcount and other areas. And then if you could maybe also talk about how How long that period of investment may last. So maybe it's early in the planning stage, but if you have a sense of how margins might progress next year, that would be very helpful.
First question. So secondly, so Martin, in the statement, you've got a new target, 20 clients of over I wonder if you could just talk about what time frame you're thinking about because I think from Scott's slide, you've got maybe 2 in That cash flow, it's a €2,000,000,000 over €10,000,000 So it's a pretty ambitious target. So some sense of time line would be helpful. And And thirdly, on M and A. So Martin, you mentioned you're looking at maybe acquiring something Technology Services.
Could you maybe expand on what you mean by that? What capabilities you're looking to add?
So Peter, Do you want to kick off on the margin question?
Yes, sure. So as I presented, first half, it was 14.5% Last year, with our guidance upping to 40%, that brings us, let's say, for the full Let's say at around 425, 550 on gross profit. And What you also see is that most of analysts are around 1,000,000 ish for this year on EBITDA, which means That basically in the second half, expectations are that margins after Central Coast will be in the area of 22%, Slightly lower again as a result of gearing up and some investment last year. It was Over 24% in the second half, I would expect that to now be a sort of 22%. And then to your question, And Omar for next year.
So all in all, this brings us for this year, our current expectation is very Close to 20%, high 19% for this year. And for next year, I would expect as a result of some Ending investments or turning it into business that we're sort of back on track in the 20% to 22% EBITDA margin like we Last year, which was at 21%. So that's the sort of the range what I would expect for next year.
Yes. Just on the 2nd question, Omar, on WAPA's. We have the objective, which we set last year of D Square, that is 20 clients of gross revenues of $20,000,000 We have 5 this this year. I think we had 2 last year. We have identified 2 or 3 that we think will be will hit whopper status next year.
That would take us to a total of 7 or 8. And we have identified another 7, which takes us to 14, 15 that we think potentially had the potential to reach that sort of status. You asked for a specific time frame, difficult to give you that. But I would hope this time next year, we would see our way to 7 or 8 WOPAs by in 'twenty two. And then beyond Matt, we would reach the 'twenty target over the next few years.
So difficult to put a precise year on it, whether it be 'twenty 3 or 'twenty 4 or 25, but I think it's over that time range. On technology services, I mean, what it enables us to do is to embrace digital transformation for our clients in another one of the areas that they face. That would be Currently, we really are involved in digital transformation from a sales and marketing point of view. So we tend to deal with the Amsterdam's officer or Chief Marketing Officer. We don't tend to deal as much with the Chief Information Officer well, not Chief Information Officer, but Chief Technology Obviously, the work that Chris does around data with Pete, around data Analytics and Digital Media, we touch Chief Information Officers and Chief Digital Officers.
So I think there is a need for us to provide that end to end offer across all those three functions. And Scott, Maybe you just indicate the sort of things that we're looking at in the Technology Services area, which is which are imminent.
Yes, sure. So just before I going back to that WAPA question, just to point out that the chart I showed with client Size was for the half year, obviously. So we'd expect at least double that size for the full year. So and that's also in pounds And the WAPA target is in dollars. So we're very comfortable with the target of 5 WAPAs this year and several more to come next year.
On the Tech services side, yes, we've spent a lot of time looking at opportunities in this area. And we're pretty familiar with the area having previously owned it when we were at WPP owned a major stake in Globant. So We've got a couple of opportunities that we're pursuing. You'll see something pretty imminently. We're not buying Globant, just newsflash.
And so it's we're going to start relatively small and build out our capabilities from there. So you'll see hopefully a transaction Fairly imminently of moderate scale, but certainly an entry point into this tech services area, and We'll build that out from there just as we have with content, data and digital media.
Our next question comes from Steve Jacky of Numis.
Just the First question on the 2 year stack and in the guidance for the full year like for like at 40%. That implies the 2 year stack growth rate in the second Our slows down. Is there a reason for that in your minds? Or are you just being conservative? I don't know if you want to bring in July and possibly The second question on margin.
I can see the near term investment that you're putting But I guess from my perspective, 20 odd percent margin is pretty good in the industry. Is there any way that you can fundamentally increase To a new level, I don't know whether you've got any thoughts about productization or stuff like that in the mix in the longer term. And then the third question is on
The M and A in the tech services target there,
can you give us any feel in terms of the sort of synergies that you might expect within your Business by bringing in a tech services business overall. And also, if I was a tech services business, what do you bring for me? Because I can see why a digital agency would love to sort of connect into your network. But what do you bring to a tech services business?
Just maybe I'll deal with the first one on the second half comparatives. And Then Peter, maybe you can talk about margin and where the potential is on margin and operating leverage. And then Maybe Scott and I can cover off on the synergies. On the first one, the July I figure we've given you, we don't have the August figures as yet. But the July figures we've given you are 50% over 50% Organic, I think you, Steve, have reminded us in July of last year, we did 18%.
The Q3 of last year was 23% growth and the 4th quarter was 27%. So we I think Q2 of last year was 7% or 8% and Q1 of last year was 21%, if I remember rightly. So you see that the 1% if I remember rightly. So you see that the comparatives are tougher as as we go into 3rd and Q4. But having said that, the 2 year stacks and then 2 stack on a simple basis is 68% for July.
And I would just point out that Peter did a very sophisticated aided calculation for the 2 year stack for the first half was actually 75%. If you He took the simple calculations obviously for Q1 and Q2 last year. They were low, but actually went back and and pro form a all the 2 year stack for the first half and that was 75%. So that's what we're seeing. I mean, if the implication of your question is whether the delta variant has dealt a blow to sort of organic growth rates.
I think the answer is no. We have seen some postponement. I think Wes can possibly speak to that. There's been some postponement of live events. We've seen some major film launches, not that we're involved with those that have been postponed, but we've seen some live activity postponed.
But on the other hand, stay at home, work from home, companies, if I can use the word, benefit Amsterdam from that stage. So I would say no indication. We've been pretty conservative to your Amsterdam in terms of our guidance. We started at 25. We took it up to 30.
We took it up to 30 and we've taken it up now to 40 and we did 50 in the first half. So I think to some extent, it's a mixture of the two things. 1 is the tougher comparisons. And then secondly, it's just innate conservatism. Do you want to talk a little bit about margin, Peter, in terms of potential?
Yes. So Steve, to your question, and in a way, I may have answered it, but I will elaborate a little bit more to the question that Omar raised. So for For next year, the 20% to 22%. Remember, we're a service company. So yes, we do develop some sort of workflows or Some sort of workflows or automation around workflows, but not so much as sellable products, more for servicing our as efficient as possible, but we don't do a SaaS or products where the sort of an Increase in margin could be expected.
So we are that service company, which I always sort of try to explain as for every Incremental dollar, we need another 65% to around 70% on employee cost and a 10% to 12%, 13% on indirect, which can be travel and offices and these kind of things. So there will be, of course, Some economies of scale over time, but also with last year performance, with this year expectation, first half In the books, I would expect a 20% to 22% as a margin, which we believe is strong and also in comparing it, let's say, to others or IT services or whatsoever, it's strong margin. There is some potential to grow, but it will be very limited. So I'll stick to that 20% to 22% EBITDA margin after Central Coast over the next years.
Yes. I just is that we've been looking at, even in the course of the due diligence and SPA discussions. I think in one case, I can think of 3 clients where we've been involved in digital transformation with information with 2 media companies and 1 hardware company, where we've been involved in discussions on the content side and indeed the data side. And it links into of the technology services capabilities that the target has. So I think to your question, If the again, I come back to what I prefaced with digital transformation inside any client company involves at least three functions.
If you're CEO of a client company, you have to deal with 3 verticals at East, probably others. Well, there are definitely others like manufacturing. But you have to deal with sales, you have to deal with marketing and you have to deal with IT. For example, in the banks, we know that the banks spend the big global banks spend €10,000,000,000 to €11,000,000,000 or whatever it is on digital transformation and disruption. We also know that the CMOs know what goes on in relation.
And a lot of that IT affects consumers like you or I. We know that CMOs spend a lot of time on that, but we also know that they don't get to see or others in the organization like the Chief Technology Officer or Chief Information Officer, they get to see Amsterdam. The disposition of that or monitor the dispute or allocate the disposition of that budget and they control it. So you have 3 functions. You have to bring them together.
And if I look at it from Scott mentioned Globant, we've got on our slide in comparison of the 2 cities or the 2 countries or the 2 industries, Globant and Accenture, but that could apply to EPAV, Endava, Thoughtworks, which is going public, C and IT, the Brazilian company which is also in the process of IPO ing. When you look at those companies, they come at it from the IT end and we come at it from the sales and marketing and there's a natural, I think, overlap between the three areas. I mean, Scott, do you want to talk any more about tech services?
Yes. I think I mean, it's important Obviously, that's a broad definition, tech services, so it's important to understand what we're focused on. So that will become more apparent when We actually do something. So I prefer to announce deals when we've done them rather than beforehand. But since we're talking about it, I think The focus is around digital transformation and launching digital products and services, which are usually consumer facing or at least customer facing.
So it's very, Very linked to the kind of work we already do. These products and services usually have CX or UX or consumer experience or User experience or design aspect to them and that's obviously a key core capability of our existing Media. Moncts business. They usually have a data capacity to them, so they're Collecting data, using data for the rest of the company. So that's obviously a core capability that we already have.
We have, and there's usually some kind of campaign. So if you're launching a digital product or service as a company, it's usually followed by some campaign to promote that, which obviously involves creative, it involves media and sort of marketing So there's a lot of synergies between our existing business, and we see this really as an extension of what we already do in the technology So it's not a departure. It's not a sort of huge 90 degree turn in any way. And I think, as I It will become a lot more apparent when you see the company that we're going to be working with and Wes is already working with. We have several client engagements and several pitches going with these guys already, and that's to prove positive that the synergies are there.
Our Next question comes from Matthew Walker of Credit Suisse.
Thanks, guys. Thanks
The first one is, it looks like if you're raising your number to, let's say, €550,000,000 from around $25,000,000 There's an extra $25,000,000 there, but the EBITDA number is not moving. So what is that $25,000,000 of investment Precisely going into, if you could just explain a little bit more about what that investment is for. That would be the first Question is, in IT Services, what kind of margin and growth profile are you thinking about? Is it better or Or worse than the existing S4 profile?
And then lastly, if you
could give The feel for net debt or net cash at the end of this year, not assuming any future track positions, but basically just what you've done so far.
Yes. I mean, Peter, do with the last one. I'll Have a good part of the first one and maybe Scott talk about margin and growth profile. On investment, we said in the statement, We're in we've there are a number of areas. I mean, the first and probably most important is as we the what we call the WAPA is the largest side.
We're investing in all scaling our client teams there. We're investing obviously in integration and Wes has gone through that in some detail. And there's whether the software is around Salesforce or Workday or Slack or indeed our accounting system. So there's all the software involved in that. So I think those are the major areas.
It's building the unitary structure across the whole business. Now you see you can see the investment at the S4 level because that's identified with costs, but there are also costs and I think it's fair to say that content has taken the brunt of the investment. So because content And is 2 thirds of the business and data and digital analytics. And data and analytics and digital media is the other third. Content has borne the brunt of the investment in the client teams and the software and the tooling and the unitary branding for the organization as a whole.
So I think that's where the investment comes. Peter, do you want to add to anything on that?
No. I think that covers it from an investment point
of view. Scott, do you want to About profile of Technology Services in terms of margin and growth?
Yes, sure. So I would comment specifically On the company that we're looking at, you'll see more of that when the deal gets announced. But in general, that sector is actually Mark could be similar to S4. So actually, it's something that I point out on a regular basis to our analysts when they moan that our Share price seems quite high and our valuation seems quite high. That's fair compared to the traditional holding companies, I think.
But actually, our growth It's actually lockstep in line with what companies like Globant, Mandaver and EPAM have delivered over the past couple of years. So it's essentially doubling the company organically every 3 years. They're regularly doing 24%, 25% top line growth just as we And from a margin perspective, very similar to us, slightly below us, I'd say. So our margin historically has been slightly higher, But they're in the very high teens, 18%, 19%, 20%, and we've been at the sort of 21%, 22%. So definitely A sector that's going to be or an addition that's going to be in line with what we're doing More accretive.
And hopefully, once you take a look at those their sort of valuation metrics, you'll understand A little bit more about why we're so bullish about our opportunity.
Do you want to talk a little bit, Peter, about net debt by the end of the year?
Yes. That's always it's an easy question with a long more difficult answer. So because I have to factor in also our merger pipeline. And if I wouldn't factor Amsterdam. I would expect us to be at sort of similar levels as we are currently because, So of course, there is operational cash flow expected in the second half or even higher operational cash flow.
I would expect also at the End of the year like we have now in the first half, some investment in working capital as a result of our growth mainly, but that would be levels and we have to do some contingent considerations need to be settled in the second half. But then, Of course, the biggest thing is our the moment that we realize our deals or execute Our deals complete, our deals and then the payments in relation to that, the initial considerations. But if you would ignore that, it would be in
Can I just have one quick follow-up, which was on Pearson? What were you doing for Pearson? Was it launching the college app for them? Or was it something else?
Chris?
Actually, You're a little closer to it. I don't know if you want to take
it. Yes. It's launching the College app as part of it, which was a complete Amsterdam. Data media in content and then there are also some other threads running, some content productions and social work. So it's Driving out across the whole sort of ecosystem.
Our next question comes from Julian Rock from Barclays.
Yes. Good morning. Thank you for taking my questions. The first one is following on Steve's question. So you've increased full year guidance 3 times, And you're telling us that the slowdown in 2 year comps for the second half is partly Slightly tougher comps, but you being inherently conservative.
So when we get to Q3 results, Mark, you now would you handicap the chance of going to 40 55% Jan, 50% Jan, 75% Jan. That's my first question.
Let's deal with that one immediately, Me, Julian. When we get to the Q3, we'll tell you.
Okay. All right. And on M and A, as the Pipeline, I mean, looking very full as normal or more than usual? And have multiple increased because there's more competition? Or is it still the usual multiple?
And then the last one is, overall, So everybody is having great results. You can criticize the holding, but it was still okay. All The broadcasters are talking European broadcasters and U. S. Broadcasters are talking about Q3 being much better than expected.
The digital guy had really So it is a bonanza for advertising in any category in any region this year, and everybody will have better It's partly because a lot of companies have higher margin than expected this year because they're saving on travel. The whole hybrid work makes Margin would be much higher than usual. And therefore, people are choosing to reinvest in advertising to kind of keep Lead on margin and don't have a 'twenty two year where basically they could have decline in margin and Because this year was really high. And therefore, part of this year growth will go up next And therefore, 'twenty two won't be as good as a normal growth on a great year or there Other reasons. So I'm trying to get a sense of how much of the great 'twenty one everybody is having It's one off in nature or not?
Yes. I mean, let's just we dealt with your question. Scott can talk about M and A. I'm just coming back to that last question. Amsterdam.
I just think you're conflating 2 different trends, if you like. There as a bounce back. Some people will argue it's a dead cat bounce, but there Amsterdam saying that people were talking about a strong Q2 because this year, because Q2 was weak last year. They may have said they had their best Q2 ever this year, but they had their worst Q2 ever the previous and this was just even Steven and evening out. That's sort of one thing.
The second thing is there is The digital economy there, which, as I've said before, crossed 50% of digital media spend. Digital media spend is €650,000,000,000 €700,000,000,000 this year, an incremental 100 has come from the will come from the digital platforms. Google goes from 180 to 230,235, 240. Facebook goes from 80 to 110, 115, 120. Amazon goes from 25 to 35, and I'm ignoring TikTok, which was at 32 last year, and I don't know where it will be this year.
And we don't really know what Alibaba and Tencent are doing primarily in China. So there's a huge change. I mean, you You may be right in your supposition. I don't know. You may be right in your supposition that companies certainly, we hear from companies, they reduced their travel budgets to 0.
And CEOs or CFOs are there's no way it's going to go back to 100% of what it was. It may go back to 50%, so there will be more. But My sort of instinct would be that they would take that, particularly given the volatility that we've rather than sort of spend it. But I in a way, when we think about We move away from what you just said, Julien. We're not focused at all.
I and we do do some traditional work. We do do Super Bowl ads. We do do TV commercials. Officials. But that is a relatively small, very small part of what we do.
Essentially, we focus on the digital ecosystem. And in the traditional Amsterdam. And in the traditional part of the business, particularly in the big reviews, there's impression of revenue and then you see the merry-go-round of talent within the holding companies, that talent is moving from one holding to another, no way at the same price and no way at a lower price, it was at a higher price. So you have compression on the line, and you have increase in the costs on the bottom line. So I just don't think that, that works in the longer It might work in a bounce back year, when but as I say, I you don't know whether that's a big bounce or whether that's real growth.
I mean, I think you as an analyst are of the view that it's more than dead cat bats. But we sort of move away from that. We're not it's neither one thing or the other from our point of view. We're just focused on what we see is the growth part of the market. So hope that helps.
Scott, do you to talk about M and A pipeline and what we see.
Yes. Sure. So the pipeline is probably as full now as it's ever been. I mean, it's usually quite full. There's always lots of conversations going on and plenty of entrepreneurs that are really keen to be part of S4, which is So it is pretty full right now.
In terms of valuations, all the deals we've announced so far this year Within our standard metrics, the 5 to 10 times EBITDA. Obviously, I guess more recently, they've been at the top end of scale, but continue to be done within that. I think that there are a few deals in Pipeline where we're looking at very specific sort of very hot capabilities. So I think tech services comes into that. Some of the specific data Stuff that we're looking around data engineering, cloud migration and consulting and stuff is in high demand and Particularly from private equity driven companies.
So those multiples are probably stretching slightly beyond the 10, but not Significantly looking at 11, 12, maybe 13 times. So we still feel quite comfortable with where Those multiples are. From a competitive standpoint, it continues to be certainly in the U. S. Private equity driven competition, so whether that's direct private equity into the company or a P invested firm that's doing some kind of roll up.
We see very Holding companies and it's really PE or independent Kind of digital specialists that we're coming up against.
Okay. Thank you.
We'll take our next question. It comes from Joel Spooner of HSBC.
As the business is getting bigger, are you seeing any change in terms of the churn rates among the employee base? And can you just give a sense Any kind of inflationary pressure you're seeing given the talent you have is, I suspect, in high demand elsewhere?
Yes. I mean, Wes, do you want to talk a little bit about churn rates and what we see from a people point of view and inflation?
Yes. I think it's I think there's probably a few things that we are seeing, but I think it's sort of impacting the industry at large. COVID, tough Especially for younger generation of talent. So I think there's some restlessness that plays out. I think We were looking at some data, not specific to our company, but just the sort of generational happiness and jobs last week, where there's between 1834, there's just there's a level of anxiety that I think ups churn rates.
I do think we're on the right path to time for that down. I think in part because of unitary brand And in part because we've started building out, I think, some really foundational parts and pieces, the career development within the whole organization. And there's definitely a general feeling This is the place to be if you're building a career. So it's definitely But I think not as up as the rest of the industry. We're also still seeing very healthy inbound when it comes to recruitment, lots, Lots of people looking to join, which means we've been able to handle some of the higher churn relative we can see.
I think inflation and this The dead cat bounce, a headquarter from Sir Martin. We were really the only player That did not fire people during COVID and that actually kept growing at a pretty high clip during COVID, where Lots of the traditional parts of our industry have to let a bunch of people go. So the moment the sort of bounce back happened, lots of those Companies need to hire very, very, very quickly, and they're probably overpaid for some of that hiring. And that's definitely influencing the landscape at the moment. I think we have upside there that not many of our competitors have, which is a very exciting stock story.
So The ability to incentivize against our stock, I think, is a bit of a moat. And I would say that a lot of people, a lot of companies Had to hire quickly to be able to service their clients when the bounce back happened that probably had to overpay
Chris, do you want to say anything from a data and digital media point
Yes, I think the conversations around the generational or stage of life Are increasing. I think folks are really getting their arms around exactly what's going on, which is the grass is greener on the other side type of mentality. People want to Change up, no matter what it is and they're willing to take it even if it's not a good decision
for the career. So I
think that there is in The broader landscape, a little bit more U. S, Brazil, EMEA, less so has been higher than we've seen in the past. When we compare our own numbers to broader industry, I would say that we're handling it very well. But when I'm talking to my peers at other companies, they're saying everyone wants to come to S4. And then I turn around and say, well, everyone says they want It's very interesting.
So it's really more about trading people, but I definitely see the wage inflation challenges, and I think That has a lot to do with what Leslie was talking about. It was the pulling the slack out of the supply so quickly It just led to an arms race in grabbing top talent. But we have Drivers here that not only keep people around but are still very attractive for net new incremental. So once again a challenge for the industry But I think that we're the best of the worst if you will. We're able to have a net gain
question, Joe.
It does. And maybe just kind of follow-up on that. I mean, where you are seeing that kind of inflationary pressure, is it Fairly easy for yourselves, again, given that kind of digital focus that you have to pass those costs through on to clients.
Amsterdam? I can take that one pretty quickly. What I would Amsterdam. And I know I'm a broken record with a lot of these. When folks come to us with industry challenges and they're worried about how it impacts S4, I I usually have an alternative narrative where it's more of an opportunity for us.
I've gotten more retainer based and Emergency break fix from clients where they lost key talent and they needed to rely on us and our global bank of key talent to You can move in and support where they're having resourcing issues. So in a way, our clients suffering from the great resignation challenge, lean on us And increase their dependence on us because we offer that continuity of business process. And if anything, that just and doctorates us more with the clients. So we are benefiting from it in a weird way.
Any
It appears we have No further questions at this time. I'd like to hand the call back to Sir Martin for any additional comments or closing remarks.
Okay. So thank you. Thank you, everybody, for joining us. We Have a U. S.
Call later today, which is at 1 London time. So we look forward to seeing any of you on this call or our American cousins later in the day. So thank you once again. We look forward to seeing you for the Q3. Thank you.