Earnings Call: Q1 2021

May 6, 2021

Good morning, everyone, and welcome to the presentation of Schibsted's Q1 results. My name is Jan Boyer, and I'm heading Investor Relations at Schibsted. Similar to last time, we will stream the presentation fully remotely from different locations. And as usual, Kristine, our CEO and Ragna, our CFO, We present our results and progress for the Q1. At the end of the presentation, you have the possibility to ask questions in a Q and A session with a hard stop at quarter past 10. If you want to ask questions, please go to slido.com And enter the event code, which you can see on the first slide next to me. This time, it will not be possible to ask questions by phone. We will not present the disclaimer. And with that, please let me hand it over to you, Christine. Go ahead. Thank you so much Jan Boyer and a very good morning to everyone. I will start with the highlights before we have a closer look at the development for the quarter. And Schibsted started 2021 With a strong Q1 and despite continued uncertainty and restrictions from the COVID pandemic, our underlying revenues grew 8 percent year on year in the quarter. All our segments, except Financial Services, Are growing their underlying revenues compared to last year in the Q1 and all segments are growing on EBITDA. The revenues are not just growing compared to last year, where as we know half of March month had a negative COVID effect primarily in Fin and News Media, But the revenues are also increasing compared to 2019. Driven by this accelerated revenue growth combined with cost savings, We achieved a strong EBITDA of NOK 594,000,000, which is more than double from the same period last year And 42% above pre COVID numbers in 2019. But then it's not all about the numbers, and I would also like To highlight the 2nd hand effect report that we recently published together with Adevinta. And I'll tell you a little bit more about that on this next Slide where we have a look at our ESG achievements in the Q1. The recently released secondhand effect Report demonstrates the environmental impact of reuse and proves once again the importance of trading 2nd hand instead of buying new products. For Shipstead's Nordic marketplaces, we see an increase in secondhand trade during the COVID pandemic. And as a result, a positive environmental impact that has increased from last year by 8%. The total potential saving for our users was 1,600,000 tons of greenhouse gas. This is more than time our own emissions in Schibsted in 2020. On the social side, we have started a project On how we should proceed from a focus on gender equality to diversity, inclusion, and belonging. This is a complex and a long term work, but we believe there is a huge potential in a diverse and inclusive workforce. And if we provide our leaders with the right competence and tools to build a strong culture of inclusion and belonging, We can release that potential, and we can nourish collaboration and innovation that in turn can Turning to value creation for our stakeholders. And as a first step, we have started out by Mapping out the current situation in Schibsted. And then I would like to add that the employee engagement survey in the Q1 shows a continued High satisfaction score among our employees. And lastly, we recently launched our sustainability report for 20 20 as part of our annual report, where we are very transparent in how we delivered on our 2020 targets. And here you will find our new targets for 2021 together with our more long term ambitions on all our sustainability aspects. So let me then start with presenting the development of our businesses in more detail. And first up It's Nordic Marketplaces. If you then move to the next slide, please, we see that Before we look at the financial results here, I would like to highlight the recent listing developments in the job which is the main driver for the accelerated revenue growth in Nordic Marketplaces in Q1. And as you see from the graph In this slide, all countries showed a solid recovery within jobs in Q1, especially Norway and Finland. Listings in Norway were not only above Q1 last year, but were actually experiencing an all time high in the Q1. And as you might remember from Q4, Sweden did not see the same recovery as we then saw in Norway. So we're very pleased to finally see a start of the recovery also in Sweden in the Q1 with volumes just slightly below last year. And looking at the start into Q2, these good listing trends have continued in April with High year on year volume growth for jobs in all three countries. And you will find listing development for our other main verticals in the appendix. But if we now look at the next slide, we will get to the financial results in Nordic Marketplaces. We see that underlying revenues returned to a 6 percent growth in the quarter. This is driven by the improvement in the job vertical, where Norway is the biggest contributor, In addition to a strong March month across all countries, this positive development in revenues led to a margin increase Of 1 percentage point year on year. And let me remind you that the acquisition of Oikotija is included in the 2021 numbers And it's affecting the growth positively. However, the 6% revenue growth presented in the left paragraph is the underlying revenue development, including The biggest vertical in Nordic marketplaces and Fin is the biggest contributor within jobs as 23% of total revenues in Nordic marketplaces are coming from jobs in Norway. Hence, the recovery in Norway Places are coming from jobs in Norway. Hence, the recovery in Norway has a significant impact on the overall top line development in 2021. If we then move to Marketplaces Norway, revenue growth Accelerated, if you change the slide, please. Revenue growth accelerated compared to last quarter, delivering 11 Growth compared to q1 last year. The growth was primarily driven by the previously mentioned improvement in the jobs vertical, especially in March. The revenue increase is driven both by growing volume combined with improvements in the average revenue per ad. For example, Finn has a new self serve portal for professional customers in which it's easier to add upsell products upfront, And the sales department is also now working more data driven, contacting customers based on the performance of their ads. And in numbers, the job vertical grew NOK 52,000,000 year on year in Q1 and that equals 34% growth. Now while Net Bill continued to grow well compared to Q1 last year, Traditional motor revenues and real estate were affected by lower inventory levels and high demand similar to what we saw in Q4. This demand is resulting in more easily sold objects, resulting in less need for republishments and upsell products, which put Some pressure on the ARPA. However, we have seen improved volume trends throughout the quarter. Similar to the previous quarters, the travel vertical is still negatively affected by travel restrictions, with revenues declining €15,000,000 year on year. Advertising revenues ended up 2%, below Q1 last year Due to slow start of the year, while revenues in March were increasing and all in all, an improvement compared to the last quarter. The EBITDA margin ended at a strong 50% for the quarter, driven by the combination of higher revenues and cost savings from remote work. But let me remind you that we have started to ramp up investments again to ensure growth going forward, Meaning that the margin we saw in Q1 is higher than what we expect for the rest of the year. If we then move to Blocket and Sweden, we will we see that we had another quarter with revenue growth. However, unlike the previous quarters, the revenue growth in Q1 is driven by a recovery within jobs and advertising. The growing revenues within jobs are driven both by volume that finally returned to growth in March. And in addition to that, we We see an increased ARPA from the new price and packaging model that was released during the autumn. And looking at Motor, we see a slight Decrease year on year due to lower inventory levels and high demand resulting in less need for upsell products, same effect that we experienced in Norway. On the cost side, temporary measures have dampened the cost increase and combined with increased revenues that leads to a margin at 42%, which is in line with last year. If we then move to Finland, we see that, the merger of Tori and Oikotear was successfully completed, and we are now moving from the Integration phase to the growth phase. If you look at the financials, this graph represents the new combined company, Including Oikotear in the 2021 numbers, driving the growth compared to last year. Focusing on the underlying development, Including pro form a Oikotear revenues in 2020 and on a foreign exchange neutral basis, the Q1 is characterized by a Good trend in classifieds revenue with year on year revenue growth driven by all verticals except generalist, where we see a slight decline. On the cost side, we have increased investments in marketing, primarily within real estate in Oikotear. We have also ramped up Product and tech staffing to improve products and platforms in order to enable mid- and long term growth. This is affecting the margin leading to a flat EBITDA year on year in the Q1 if we look at absolute numbers. Then on the next slide, before I move on to news media, I wanted to highlight one product update as we have reached an important milestone For the transformation to NextGen Marketplaces for cars in Norway. Not all of the elements which you can see on the slide are new, But effective Q1, private car sellers and buyers in Norway can now use a full end to end transactional process. And our numbers show that the whole transaction can happen in just 15 minutes, which we think is rather impressive. And I'll give you some more detail on how this works. So for a seller, the process starts with a price tip from Finn. You just need to enter the car Station number and the mileage and then you get a realistic estimate of how much you should sell or buy your car for. Then Finn will offer 2 ways to sell your new car sell your car. You can place the ad yourself on Finn Or you can choose Netbiel to handle the entire sale for you in just a day or 2. If you choose Fin and to capture the highest possible price, the next step is to use a digital contract template And this is where the magic happens. Most of it is already pre filled out for you, and you just follow the steps in the process and you get access to insurance with a free trial period, digital payments on our platform with escrow, Digital ownership changed at the Norwegian Public Roads Administration and a new electronic toll payment tag. And the whole process can be done and signed via your phone and verified with bank ID, the safe identification also used by banks here in Norway. As a last step, your new car is now available under My Car. And With that car profile, you get access to things like information on how much your car is worth, easy access to your digital purchase contract, Tailor mid offers for your car and possibility for safe and easy car sharing. So you can imagine from a commercial point of view, the next Step is to try different ways of further monetizing along the process. So exciting developments there. And then we move To news media. 1 year after the outbreak of COVID-nineteen, it is still an ongoing news event, And our users are depending on our brands to give them timely and correct information about the situation. Our brands are continuously finding new innovative ways of keeping our users updated on the situation, be it The overview of the number of people infected by COVID, the regulations that you need to follow, or the status of vaccination, all on a local Or a national level. The role all our brands are playing in creating critical, investigative, and agenda setting journalism As a result of the authority's strict actions during the pandemic, it's also highly prioritized and at the core of our social mission. And to be able to grow the news media business, investing in quality content like this is essential. So I'll get back to that in a couple of minutes. And I'm also very proud to say that we have made we have won some major award for our COVID journalism Recently, and I think that's well deserved. Okay. If we then look at the financials On the next slide, thank you. News Media delivered another strong quarter. Digital revenues showed a strong growth compared to last year, which led to underlying revenue Growth for the Q3 in a row. The solid top line is combined with significant cost reductions due to both the cost reduction program And cost savings due to remote work, leading to a strong margin of 11%. The execution of our cost Reduction program is progressing well with estimated effect per the Q1 2021 of around 260,000,000 If we then look at our main revenue streams in News Media on the next slide, we first have subscriptions where total underlying revenues grew by 10% year on year in the Q1. And as in previous quarters, Digital subscription revenues continued to grow well. Strong volumes and growth in ARPU are contributing to the 26 Percent increase in digital subscription revenues compared to last year. To succeed with continued growth Revenues, investing in content is key, and we're very excited about our planned launch of a subscription based Podcast product across our brands, and we are proud to say that some of the most popular podcast creators in Norway will be part of this undertaking. In addition, we continue to experiment with different types of paid content. One example is the entertainment concept, ShiftStep. If we then move to advertising, I'm pleased to say that we, in the Q1, are seeing Substantial growth in digital advertising revenues in both Norway and Sweden and that digital advertising revenues are back at 2019 levels. March is really standing out as a fantastic month for advertising revenues in Norway, showing that there is willingness to invest in marketing Despite current COVID restrictions, video, content and premium display contribute to the strong growth in both markets and Particularly Aftonbladet and VG are performing well as they can cater for large advertising formats and deliver high reach. And we see high impact premium display being very popular among advertisers. Then we move to next and we will start with Lendo, the biggest asset in financial services. Here we see that Q1 underlying revenues ended up declining compared to last year. The decrease in revenues was due to lower revenues in Sweden and Finland compared to Q1 last year, while the other markets posted revenue growth. Sweden, accounting for almost 3 quarters of Lendo Group's revenues, experienced an underlying 9% revenue client compared to Q1 last year as banks continue to be more restrictive in their lending practices. Margins are better than last year as we invested less in international expansion and have focused on efficiency in our Established Markets. However, we have seen that unit costs in performance marketing channels have increased during the quarter due to increased competition in Sweden And that is a trend we expect to continue. Looking at 2021 as a whole, we maintain our target on EBITDA investments For the geographical expansion. And then finally, we look at Schibsted Growth, And we see the positive momentum from Q4 continued into the Q1 for Schibsted Growth. Prisjakt Schibsted Distribution and the Marketplaces for Services, Mitt Anbut, continued to experience Increased activity levels and demand during the quarter. Schibsted distribution new business showed strong year on year growth in the quarter with Increasing e commerce volumes driven by Hjelkem and Mornlevering. Hjelkem Nethandle, the main part New business has delivered approximately 3,500,000 parcels during the Q1, and that is an increase of 150% year on year. Also, Prisjak showed a solid growth year on year, driven by increased traffic and clicks. And in addition, advertising banner sales Showed recovery, and we're back to growth in the quarter. And with that, I'm happy to turn it over to Ragnar, who will give us some more Flavor to these financial figures. Thank you, Christian, and good morning, everyone. I'm pleased to give you some more details on our strong financial results in the Q1. And I will start With commenting on the consolidated result for the Schibsted Group. Underlying Q1 revenues grew 8% compared to last year To NOK 3,400,000,000 Also this quarter, EBITDA was very strong and more than doubling from last year to SEK594,000,000, resulting in a margin of 17%. In the graph on the right, You can see that all business areas are contributing to the improved EBITDA. Similar to last quarter, News Media is standing out as the biggest contributor to the improvement, driven by the continued strong growth in digital revenues and cost reductions. For Nordic Marketplaces and Growth, the EBITDA increase is primarily due to higher revenues, While the increased EBITA in Financial Services are driven by improved cost efficiency combined with lower geographic expansion investments. Moving to the income statement. Operating profit for the quarter ended at NOK 346 million, an increase of NOK 229,000,000 from last year. Operating profit was impacted by increased net other expenses of €21,000,000 which mainly consists of transaction costs in connection with acquisitions of IW Denmark and integration costs connected to Oikotija. In addition, amortizations have also increased year on year, and that is due to the acquisition of Oikotija. This is also the main explanation for the increase in net financial items. The reported tax rate in the Q1 of 24% is quite close to the nominal tax rates in the countries that we are present. Loss from discontinued operations are figures reported by Adevinta. Adjusted for the effect of not recognizing depreciation, amortization or impairment of assets in Adevinta. In addition, in this quarter, loss from discontinued operations also include a loss related to Adevinta's disposal of the operations in Chile. Adevinta presented their results yesterday. So for more details on their results, please refer to the presentation available on their website. Then looking at our operating cash flow in the Q1 on the next slide. Thank you. It tripled compared to the Q1 last year, driven by the increased EBITDA and reduced tax payment in the quarter, partly offset by an increase in working capital. Our CapEx was €20,000,000 higher than last year due to increased investments Within product and tech, but also at HQ due to ongoing implementation of a new group wide ERP system. Then looking at our financial gearing and targets. Looking at our leverage, it increased to around 1.7 following the acquisition of Oikotija in the Q3 last year And that's gradually improved to 1.3 by the end of Q1 due to the strong EBITDA and cash flow. And our cash balance at the end of the Q1 was NOK 1,100,000,000. A bond of SEK 600,000,000 will be repaid at maturity, which is today, the 6th May. And we will consider issuing a new bond later this year. To finance acquisition of IBE Denmark, We have signed a bridge loan facility of €350,000,000 And following this acquisition, our gearing will increase at closing As it looks now to just below 3. We have received consent from other banks for a temporary waiver or financial covenant From closing of the transaction until the British facility is repaid. I will end my presentation By giving an update on our financial targets and policies. New this time are Our midterm targets for news media. On the back of the good underlying trends and our strategy in news media, we have updated the target by adding a guidance on annual revenue growth. And we expect revenues to grow low single digit in the medium term. We have also raised the EBITDA margin target from 8% to 10% to the 10% to 12% in the medium term. More positive sentiment is due to a more positive outlook on revenues combined with the effects from the 500,000,000 on the cost reduction program. Please note, however, that both the top line and margin target As you have a normalized advertising market and that this target is a range where actuals are expected to vary in the periods ahead. Looking at Nordic Marketplaces, we keep our medium to long term target to grow annual revenues by 8% to 12%. But based on the trends in Q1 April, we expect the revenue growth to be close to the upper band of our target range in 2021. Otherwise, our policies remain unchanged. So then over to you, Jan Boyer. You will guide us through the Q and A. Yes. Thank you, Raimar. Quite a lot of questions coming in here this morning. So let me just start me with the first one, guidance for News Media. At the same day in March, you didn't change the guidance. Now you changed it to a higher margin and include the target for revenues. What has changed? Why do you introduce that now? And now you can do that one, please. I think It has been important for us to, let's say, to have better visibility in the ongoing trends. So that is one of the reasons. And I also worked quite thoroughly with the management in news media to sort of look at So the expectations for both this year and for next year. So it's, In short, building a little bit more confidence in the trends that we have seen over the last three quarters. Very good. Then going to Nordic Marketplaces, we've seen like an acceleration of revenue growth now in the Q1. Can you give some color on what has happened in April, the start of Q2? How are volumes trending both in Norway and Sweden here? Yes. As I mentioned, we see the continued strong growth in jobs in all three markets that continues in April. We also see good volume trends in both Motor and Real Estate. Very good. Then maybe more to the financials. I mean, look at EBITDA for the Q1 was very strong, more than doubled from Q1 last here. But it's also because our costs have been not growing so much. I think they're up 2% year on year. How sustainable is that? Or me phrase it differently, like what should we expect when it comes to cost when people will go back to the office after the summer during the autumn? Have you An estimate or an idea how this will impact costs here? Yes. You want to do that one, Rangai? Yes. I will also give a precise guidance on exactly sort of how it will influence the margins. But it's correct that So let's say the present model operation sort of carries lower costs since we are not in the office. So we expect some increased costs Then we are back in a more normal situation. But that said, we also expect, for instance, traveling costs and so on to be at a significant lower level than before due to the fact that I've learned to work more digitally. So some increased costs we expect, but not Well, sort of 100% back to the levels that the sort of had a viral cost prior to the pandemic. Very good. And maybe we can just stay with cost a little bit. I think the report states that News Media is on track with a cost program of SEK 500,000,000. Could you just highlight what are the stages, how much of this SEK 500,000,000 have you reached so far? Yeah. So by the end of the last quarter, we had reached 180 and we delivered another 85 in Q1, Meaning that we have now delivered a total of 265,000,000 and we are definitely on track To deliver the 500 by the end of 2021 as we have previously communicated. And then maybe staying with news media a little bit, I think like during the quarter, especially like the digital development has been very strong. Looking at print, I mean, at what point print margins will be negative? And when margins for the print will be negative, would you consider Shutting down print and just focus on digital, can you elaborate a bit on that? Yes. I think we will be able to, let's say, Prolong the profitable life for print, because now, of course, with the success that we see in e commerce Distribution that will have a positive, let's say, scale effect on the cost of distributing newspapers. And there's also a potential to significantly increase our efficiency around the print. When a lease expires in a couple of 3 years' time, we will have The possibility of doing that in a more cost efficient way. So we believe that we will be able to run print with profitable margins for many years Come actually due to those changes coming. Good. Again, another question on News Media. Digital advertising has been quite strong in Q1. I think the growth was positive in Q4, Accelerated even in Q1 and seems stronger than the development for advertising in marketplaces. Do you have an Explanation like why is there a different dynamic between these two segments for the advertising business? It has a little bit to do with the type Of environment that you have, for example, the fact that travel is very low, you know, can somewhat affect it and things like that. But I would, and it also has a little bit to do with, how programmatic advertising is distributed, etcetera. But I would say that in general, I would give credit to our news media for having been able to Create very good environment for contextual advertising, for video based advertising and also different premium formats that are Easier to run-in a media setting than in a marketplace setting. And in Sweden, for example, Aftonblad has made a huge effort of diversifying their Content to accommodate more, let's say, branded goods marketing and we really see the effect of all of this. Also some new formats That have been introduced, that have been successful. Good. I hope that answers the question. Then maybe one more on News Media before we go to Nordic Marketplaces. News Media has seen like strong growth when it comes to digital subscriptions Now in Q1 and over the last quarters, can you comment a little bit like on the balance between like volume and ARP, what is really driving that growth here in news media currently. Yeah. It's a very good combination of both, and especially in our In VG and Aftonbladet, we are nowhere near exhausted on the volume side. The example I gave of this entertainment concept that sold a lot of In a short time period, of course, that comes also with some degree of churn, but it's very it's really valuable volume in the sense that it's Basically new and young subscribers that we get a new customer relationship with in terms of subscriptions. So there is strong growth on the volume side. And in addition to that, we are constantly becoming better at bundling and up Selling current subscription, so it's a nice mix of the 2. And I would like to add that we are quite confident that we will be able to continue that positive trend going forward. And I think you answered a little bit on that one, but looking at like the development growth versus churn, is it like a change in trend which you've seen currently or is it Rather stable? Yes. And the churn is actually very stable. And also given the fact that we increased quite a lot subscriptions in relation with etcetera. We see that the churn levels are very stable, which is a good thing. And also let me remind you that the cost of Achieving a new subscriber is almost 0 because we basically upsell on people already being on our media sites And then we upsell them to subscriptions. So we it's you know, we don't pay anyone externally to attract those subscribers. It's important important to remember that when we talk about churn. Good one. Then again, like I said, Nordic Marketplaces, a couple of questions. Maybe first one on Finland, if you can explain a little bit like what is really the short term strategic objectives here for that year and how we should we think around margin for Finland in 2021 and maybe also going forward? Yes. I can start, and you can maybe supplement me on that, Erangnaj. So in Finland, we have an ambitious agenda, And there are many things we want to achieve. We want to grow our position and our ability to monetize in the verticals. Further down the road, Finland is also a candidate for going for a transactional model and a generalist, but it's not our First priority right now, we're focusing on the verticals. And we see that we have good momentum in both increased Classified revenues and we have very strong growth in traffic and ads in Finland, which is a good fundament for that future growth. When it comes to margins, we are in a growth phase and an investment phase. We need to invest more in product and tech. I think we have signaled that all along. We knew that when we took over Oikotear that that would require some investments in product and tech. So, you know, we have not a focus on margin short term. We will have a focus on growing revenues and strengthening our position in Finland. I don't know if you want to add anything beyond that, Ragnar. Oh, I think that's quite precise. Maybe a question for you, Ragnar. I think you mentioned today that for Nordic Marketplaces, you expect that revenue will be at the top end of the range, 8% to 12% this year due to the rebound from COVID. Is it like underlying or reported? I suppose it's related to FX neutral. Is it FX neutral? Or is it like reported growth, which you refer you to? That is the underlying, let's say, underlying organic growth rate that we expect to be in that range at that level. Very good. And I think over the last quarters, we've got many questions on Hemnet, what is happening with that asset. Now we saw the listing a couple of weeks ago. I think Uli Jacob at the A couple of weeks ago, I think Ole Jakob at the CMD was in his introduction like, well, the firm, I would say that It's an up for discussion that we spin off Nordic Marketplaces. But I think given like the substantial valuation of Hemnet above Nordic Marketplaces, is that something which the Board is reconsidering? Can you comment on that, Kristine? Yes. The Board is not reconsidering that despite the Hemnet development. Very good. And maybe 2 smaller questions, I would call it. One is like any progress on the net Steel and what is your strategy if you're not allowed to keep that asset? And the second one, when it comes to the Schok trademarks, are you Controlling them in the Nordics or is it something which sits with Adevinta today, which will basically be sold to the new owner? Yes. On NetBILE, we should have a ruling during the month of May. So We are eagerly awaiting that, and we are very hopeful of a favorable ruling. So we are so far, we don't want to focus on the alternative For Netbiel. And when it comes to Spok, we have no plans. I think also the Brand sits with Adevinta and will be we will not be involved in SPOK in the Nordics in any way going forward. Thank you. Then margin wise, I mean, Finn was quite strong with 50% in Q1. Sweden was flat with 42%. What should we expect for the year going forward, Ragnar, maybe also Q2? And also like what Kristine presented when it comes to next gen products and the progress you make on cars, is that impacting the margin this year in Fin? Normally, we do not sort of guide or give any Particular comments on the margins as such. The margins in the Q2 was strong. And In also in Blocket, we will sort of ramp up the investments somewhat In the next quarters, particularly focusing on, let's say, on transactional On the transactional side, both on the generalist and part loss to strengthen the car vertical. So I think you must expect some added investments into product and tech in Blocket. The second question was that, Wei? The second question was maybe related to that. I mean, Kristine presented the progress on cars in Finn with like end to end solution. I mean, are these initiatives impacting margin this year for Finn or are these costs taken basically? On the car transactional in Finn, those Let's say the development costs are, to the large extent, already taken. So Now it's more about probably also doing some market you will also see some higher cost on marketing of the service, so that is part of it. So that is sort of common, Probably as a part of the cost base of Fin going forward. But the focus in Fin on sort of further product development will probably be will then be on other The features and other verticals. Great. Lando, Question here, I think we highlighted in the report that there's increased competition for Landau in Sweden. Can you comment like what is happening? Why is competition Increasing? And what is your planning going forward? And maybe also like if competition has increased, are you still Positive about the case or have you changed your mind here, Verdel, what that means going forward? I think the main reason for the increased competition is that 2 of our competitors were merged and then taken over by a new owner with ambitious plans. And basically, what we see is that there's Competition for the key search words. So the price for that is has increased. And we expect That to continue for a while going forward. But, you know, we believe we are a strong believer in Lendo. And I think the fact that competition is increasing is Just a testimony to the fact that this is an attractive market and we are set to win that competition and continue our progress with Lendo. And I think related to that, I mean, the players here which were acquired were at Visa and Sambla in Sweden, like you said, by private equity. But What makes you comfortable that Lando will be the winner going forward? Like what is the difference here, if you want to comment on that? Because we have a strong position, we have a strong team, we have a lot of experience. We have made some Stakes with Lendo that we have, drawn great learnings from, so we don't have to repeat those mistakes. And, I say I would also say that we have very good Expansion possibilities. We are experimenting now with new products. We have launched a secured car loan concept in Denmark. We have the PSD2 license, which opens up for new product opportunities. We have success with Lendo for small business in Sweden. And as you know, we are cautiously expanding geographically, now mostly working with Spain after having Seeing good success and momentum in Denmark for a while now. Great. Thank you for that. Going back a bit to Nordic Marketplaces, I think revenue growth has accelerated down Q1 like we said before. Can you expand a little bit, is it volume driven? Is it like ARPA driven? If you can comment a bit on that. On the what, the profitability of Landau? No, sorry, Wendy, it wasn't clear on the revenue acceleration in Nordic Marketplaces. What is driving the recovery here which we've seen in the Q1? Oh, well, the recovery in revenue in marketplaces? Yeah, well, it's very much driven, as I Was clear about it's very much driven by the recovery in jobs in Norway and being such a quite a substantial 23% of the total portfolio. When you see that Strong growth in a vertical like that, that affects the whole area. So that is the main explanation. But we have we saw a good Increasing momentum throughout the Q1, so several factors, but that's the one main explanation. And I think also regarding the question here, is it volume or ARPA driving the growth? I think the difference a little bit From Vertical, I think I'd like to highlight in your presentation, Kristian, in Norway for jobs, the team has Also worked on new initiatives to drive ARPA, so it's a combination of both. But I think if you go to the appendix in the presentation, you also like the volume development in the Q1 per vertical, you really see an uptick in volume in the other verticals In Q1, which is the main driver, I would say, expect maybe jobs in Finn. Yeah. And we can also mention that we have a new price and packaging model in Sweden that's proven successful that we launched in the autumn and that's giving us good effect now. And going to transactional services a little bit, you presented today that private solution forecast in Norway. So the first question is here, Could this be replicated for professionals to use it also for that segment? And the second question is like when it comes to generalist Transactional Services. I think Adevinta reported some updates here. Do you have any news to share? Not so much. I mean, it's a high priority and we're working on it. And the main focus on And generally, it's transactional, actually being blocked now and more of a as our pilot. And I would say we're progressing well, but it's a lot of work, high focus, But I think it's a bit too early to report any news on it. Then we got some pushback here on your comments from the Board. You said we're not considering listing all the marketplaces. I don't know if you can elaborate more why the Board is not reconsidering that one, looking at like creating value. Yeah. Well, I think I should be careful speaking for the Board of Schibsted, but I believe that there were a lot of discussions leading up to the decisions back In 2018, when we decided to keep the Nordic marketplaces within Schibsted and not spin them off together with Adevinta, I believe that decision was made for the long term and that temporary market conditions that we see now is not going to Shift such a fundamental decision that was made back at that time. That's my interpretation of it. And then I should be very careful Speaking on behalf of our owners and the Board. I think there's one more question currently here in the Q and A feed, And that is, again, news media, podcast subscriptions. Do you have any information on the price point you're aiming Or is it too early to comment on that one? It's too early to comment. But as I hope you could understand, we're excited about this Unity and the signings that we made, you know, all the top notch podcasters basically joining this effort. So It's going to be an exciting road ahead for the podcast. So hopefully, by the end of this year, we will be able to show you something. Currently, there are no more questions in the Q and A feed. So I suggest to wait maybe just like 5, 6 seconds if a new question pops up. And I think otherwise we can just round it up here. Now I think it seems like you covered All questions here. So thank you, Kristine and Ragnar, and also everyone for taking your time. I don't know if you have some closing remarks, Kristine, before we Switch off. Now just thank you all for good questions and for your continued support in that I think we have a good momentum as the results Joe and April is looking good. So we are excited about the future here on our end. Great. Thank you so much. Thank you.