Earnings Call: Q1 2020

May 20, 2020

Thank you, and good morning, and welcome to Katriela Media's Q1 2020 presentation. Next slide, please. The presenters today is myself, but also our new Group CFO, Peter Messner, who will introduce himself a bit later when he goes through the financial update of the company. Next slide, please. The agenda for today is like always. We'll start with the quarterly highlights, followed by a business update. Then Peter takes over the run of financials, and then I come back and talk a bit about the structure and outlook, especially the outlook now once we have April already concluded in the Q2 and can give us better insights about how we foresee the COVID impact going forward. Next slide, please. This time, I'm happy to inform that the quarterly highlights are in a positive manner. For those of you who followed us for quite some while, you know that for the past 12 months, we've been doing a lot of restructuring work in the business due to a business that actually went negative because of previously informed issues. We have now been able to turn that around. And I think it's important to mention that even before the COVID started, we could see a month to month positive growth trend starting from last autumn. So we were able to join this COVID pandemic situation in a positive trend, which we, after that, built on, which I will go through now in the quarter highlights and business update. So next slide, please. If we start from a quarter on quarter perspective, we can see that the last quarters we have been coming up from the Q2 2019 and be rather stable. Now I think it's important to remember that, obviously, Q1 traditionally tends to be a bit slower than Q4. I think especially for a company like Antina Media, where we have a lot of income from the U. S. Market, where typically sports starts to decline from mid Q1 approximately after the Super Bowl, we can normally see a quite big decline compared with the Q4 and especially Q3. To maintain that in the same level, we're actually even growing, we are very satisfied with, especially considering the COVID pandemic going on. I think that not only that we managed to increase the revenues, but also that we dramatically managed to improve the profitability here is a good sign of the strategic issues we have addressed and that the cost efficiency and cost reduction project in the company is working well. Please, I remind and remember that according to our strategy, we are also focusing on investing for the future in new markets and especially in the U. S. That is included in these improved profit numbers. So everything is kind of proceeding according to plan. Next slide, please. If you look at the quarterly highlights, we can see a 2% growth compared with last year. And as you all know, Barrick, we have completely changed of COVID. Coming in basically from 10th March, we could see a decline in some business areas, but also we worked very hard to change that, which I'll come back to. Also, as mentioned here, 10% growth in organic is also proof about the adapted strategy where we were supposed to focus on organic growth rather than acquisition and paid media. So we have been not increasing paid media, but what we have done is to dramatically improve the traffic inflow and efficiency in our products to make sure that we can grow by our own engine, so to speak. This is also, I think, very important to mention that the numbers we did in March sorry, in Q1 was all come high in terms of surge revenue, meaning the revenue that we generate all by ourselves, which is the majority of our total income. So we're very pleased with that. In terms of profitability, we increased by 15%, and it's a combination, of course, on the growth, but especially that we're far more cost efficient than today. That together has led to increased margin of 5% points from 43% up to 48%. Next slide, please. When it comes to the business update, there's a couple of things I would like to go through. So if you kind of switch to the next page. We decided to divide this slide into 2 areas. 1, of course, is regarding the COVID-nineteen impact and the other thing is general business and operational highlights. If you look at the COVID-nineteen impact first, the operational measures we took, we took them very early. Obviously, some people maybe thought they took things too early, but we did a lot of actions to technology within the company like bandwidth and make sure that systems are possible to work with even if you're not at site. We took a decision to bring home staff from abroad business channels very quickly and we already adapted to work from home structure. But what we also applied here was a setup that allowed us to do this for a long time. Being unsure how long this will go, we're actually in a mode now we continue this pretty much for a year or so ahead if required. And the interesting thing here what we invest a lot in is also how we communicate and how we update staff to keep productivity and engagement high. And I'm happy to inform actually that in the company, ever since we start measuring many years ago, we never have had that high engagement in the company and efficiency as we have today, which is the result of a great team effort and a lot of hard work. So very pleased with that. Sports negatively impacted, of course, with LINK shutting down, but here we have an opportunity as well because we have a quite big geographical distribution of our business. So as you know, not all sports events went down at the same time, so we can work around the globe to actually through our great operator partners. We were able to promote what was actually up and running still. We also worked very closely with them to focus on driving traffic to their casino sites, but also the booming quarter, which has increased a lot during the pandemic because people see that home and they find that as an interesting activity to do. In terms of reductions in revenue, typically, we see about half of our total sports revenue is lost because of this, which is a lot, of course, but far better than we originally thought it would be. So we're quite happy about what we maintain to do together with our operators that we work with. U. S. Is almost no revenue, I'd say, but bear in mind that we actually forecasted very little revenue in this time of year in U. S. Because we're out to sport events. The only sport event actually in March that will proceed was the March Madness in basketball, but that was canceled. Hence, we lost the revenue from there as well. But it was heavily compensated by casino, and casino has been strong in every single market we've seen. The trend we started back in second half last year has continued with month on month improvement, but add to that also the impact of sports shutting down and people being at home and especially in U. S. Where a lot of the landless casinos has been shut and people have focused then on online casino or social casino, for which both we drive Elite Generation 4. Cost savings were made possible because of this. Obviously, not traveling, no events, etcetera, made it possible to save cost. But also in sports, for example, we don't need to produce the same amount of content if sports aren't up and running, and we don't need to invest in paid per click media if those search person won't be able to translate into revenue. On top of that, our long term cost saving initiatives are together to make sure that we quickly improve margin. Now if we then look at the general actions we're taking, as I mentioned, all time high in certain revenues, which we're extremely happy about and it continues to be positive for the future. I talked about the cost efficiency already. Investment in U. S. Is still going on. We are continuing our plan to invest in states we foresee going now between 12 18 months ahead to make sure that we're in a good position in there. We're also launching new languages and planned launch for several other products and launched existing products also into new markets. All this is funded by our own P and L. We actually managed to carve out those investments through cost efficiency project and still being able to improve the margin as we just show here in the numbers. The Sports segment restructuring is underway under the head of our new Sports Vice President, Chris Welch. That project started in the middle of January, and we wanted to see a lot of positive momentum from all of that. And the team is working extremely hard to turn things around, which already started. There's been a lot of talks about the major Google update out there. I understand that it's talked about, but this is business as usual for us. They're all standard update. Sometimes they're small, sometimes they're large. And in total, for the group, we don't see any material negative impact. And while we see a decline, we have already taken the actions to go back to normal, which typically takes some weeks. But all in all, we don't see any negative result coming out of this. Refinance program, as informed, has been concluded, and we are just having the final couple of our general meetings to conclude that. And I'm also happy to inform that we have done a lot of restructuring in our management team. So can we I change page, please? So we have a quite new team here. What will happen is that people have departed, but also people have joined. And the first one to join in a new position was Chris Welch, who started in January, Head of our Sports Operations. Chris joins with a wealth of high gaming experience from many roles in key brands across the world. And he is in charge of the business turnaround for sports, but also in the council consolidation work together with other departments to come up to a stronger joint force towards that iGaming market. Then we have Hamish Brown joining as VP for Casino. He started in February. Hamish has over 20 years of experience from iGaming in various position and has already now started to make changes and build on the already good trend behind casino. After that, Peter Nestor joined, who will introduce himself very shortly, and I also decided to include Michael Denki, Head of the North American Business Vice President and also Nicolas Jofilovich, who is our Head of Ask Gamblers as Vice President, being promoted from April. This team is now fully in place and working very hard together with myself, Fiona in charge of HR and Nadel in charge of Financial Services. Next page, please. Peter? Thank you very much, Per, and good morning from my end as well. Next page, please. Just a very quick introduction. You have seen the management team, the executive management team being now fully in place. I had the pleasure and I'm indeed very excited having joined the company now at the beginning of April. Most recently, I worked in Modern Times Group, MTG, where we built up in the last 5 to 6 years the digital transformation, the digital entertainment part that is, in its essence of esports and online gaming today's MTG after the split with Lundik Entertainment Group in the Q1 of last year. Prior to that, I have been working in the iGaming industry for a total of approximately 8 years, then started at an operator called Bwin in the B2C area, very operational on product and portfolio level, intensively and increasingly more on strategic levels about capital allocation, business analysis and really going into the finance areas, where in the B2B area of the subsidiary at that point in time, Ongain, I took over that part, and the Corporate Development, when we sold Ongain as a consequence of the merger between BBN and 2 Party Gaming in 2012 to the market. I'm extremely humbled to take over from Erik. Erik has been the Interim Group CFO during the past quarters, and he did a tremendous job in informing and transforming the finest function. So a big thank you to him. And we can switch to the next slide. So starting with our revenue development. And as Per already indicated, we have shown now in the Q1 a very positive trend, both in comparison to the previous quarter, Q4 2019, but in particularly also to the quarter of the same period last year, Q1 2019, shown in a year over year growth of 2% and on a quarterly basis of 1%. Outstanding is the all time high. As part of the overall revenues, as Per indicated, we, of course, had a switch also strategically from paid revenue to search revenue. And in particularly, also in the Q1, we, of course, had a much stronger focus on the search revenues. So the all time high of $23,900,000 shows it took the very right direction in terms of our development. The new depositing customers, one of our KTIs, shows a very positive trend now as well after the situation around the middle of last year. So that goes totally into a very positive future with a quarter over quarter growth of 6%. Next slide, please. So from the growth into the segment's performance, as we previously already have shown, our 3 reporting segments are casino, sports and the financial services. There is not a huge change in comparison to the previous quarter where you already have seen an increase from the casino segment as compared to the sports segment. In a year over year comparison, you see that casino contributed 61% of total revenues and last year, that was 53%. Spoons contributed onethree of the revenues and last year, it was higher at 41%. And the financial services have been stable at a 6% revenue contribution. The EBITDA margin is particularly pleasing in Casino of 60%, sports with 31% and financial services with 24%, resulting in an overall adjusted EBITDA margin of 48%, which was the aforementioned increase that Per was talking about. The alternative way of taking a look at our revenue streams is through what kind of agreements we receive those revenues. This is the revenue share, which is a deal set up where we over a longer period of time receive revenues from the new depositing customers that we generate for our customers. That is stable at 44%. The cost per acquisition is at 39%, likewise a stable contribution share as compared to the previous year. Fixed fees contributed 15%, a slight increase to the previous year and to subscriptions, which are almost entirely dedicated to the financial services, contributed 2% in comparison to the 4% that we had last year. We can switch to the next slide. So the cost development, you see on the chart that, of course, in line with the tremendous growth that we had in the previous years, The cost base and the cost base here is the direct costs, the personnel expenses and the other operating expenses, of course, developed in line with the business development. In the previous quarters, however, we were able to maintain that on a fairly stable level. And of course, that was in line with the revenue development during that period of time. Now in the Q1, also due to the savings measures that we not only in this quarter but previously already started in terms of long term restructuring, we ended up at a cost ratio of 52% in terms of the revenues. Previous periods, we have been 57%, both in the previous quarter but also in the corresponding quarter of last year. The main changes in that cost base contributing to the higher EBITDA in the very end is the savings in direct costs. And Peer already indicated that the reduction in paid revenues is, of course, a result of less spending in the corresponding direct costs, the pay per click cost. And that was a result primarily out of the sports segment now in the Q1. Personal expenses increased in a year over year comparison, and that is mainly due to the ramp up and the investments that we have been doing and continuously will do in the United States as a growth market. And other operating expenses show a saving of 3%. Likewise, as Per indicated, we have longer term savings programs here, plus there have been, of course, certain expenses around travel, entertainment, office related expenses that have been lower during this quarter. Next slide, please. On the profit per quarter, just as a brief highlight, so the difference between our adjusted EBITDA and the reported EBITDA are exceptional items to the amount of €500,000 The big part of that is related to restructuring, reorganizational costs in the Q1 in line with what I just mentioned. Other than that, there has not been any extraordinary items. The interest payments have been in line with what you have seen in previous quarters. The gain of €4,200,000 in the fair market valuation relates to our existing senior unsecured bonds, where you have seen swings on a quarterly basis, which is just due to the market price and fair market valuation of this bond. I will expect that to stabilize given our refinancing announcements, and I will come to the refinancing on a few slides as well. Next slide, please. The balance sheet, the statement of financial position is also in line with what you have seen previously. Our assets amount to a total of €339,100,000 The main part of that is our intangible assets, the goodwill, the domains and websites and player databases and so forth. On the equity and liabilities side, the main part of the liabilities is the borrowings, and that relates to our senior unsecured bonds of €150,000,000 as of now and also our revolving bank credit facility, which has been used to an extent of €12,500,000 the same as previously reported. There was no change in that utilization. The amounts committed to acquisitions have further decreased and that I will explain on the next slide. So next slide, please. So what you have seen in the previous quarters and what my predecessor, Erik, has been reporting on all the time has been the steady reduction of our asset purchase commitments that have been the result of previous acquisitions out of the heavy growth phase of the company in previous years. So as of now or as of the end of Q1, the remaining commitments have been €7,100,000 of which, however, at the beginning of April, just after the reporting period, the main part, €5,400,000 have been closed. So the remaining balance, as we speak, is roughly €1,600,000 and that will be settled in the beginning of June. So after the Q2, there will be no legacy asset purchase commitments remaining on the balance sheet, which is very positive effect, of course, on our cash flow going forward. Kindly switch to the next slide. So talking about the cash. The cash and debt situation looked in the Q1 as follows. The net cash that has been generated from operating activities amounted to €11,200,000 And you see very clearly in the chart on the left hand side, this is the highest amount since the last quarter of 2018. So a very positive trend in terms of the net cash generation during the period. The cash conversion rate has been at 90%, and you also see there are quarterly and seasonal swings in that, and you should expect that also going forward. The balance of cash and cash equivalents amounted to €19,300,000 at the end of the period. And our net interest bearing debt was at €153,200,000 which led to a leverage, which is exactly this debt over the last 12 month adjusted EBITDA of 3.17, which is in line with our maintenance covenants. Next slide, please. So on the refinancing, and that goes, of course, exactly into the last point of the previous slide, the leverage. Our refinancing, as Per also mentioned before, is almost at conclusion. There is just the extraordinary general meeting on the 10th June missing. We have a fully guaranteed rights issue, which as previously reported and released will consist of several units, which consist of hybrid bonds and warrants. These hybrid bonds are treated as 100% equity under IFRS, and the warrants as such have the underlying the ordinary shares as underlying assets. With the issuance, we will receive new capital into the company amounting to approximately €63,000,000 And the main part of that new capital will be used as a partial repayment of the existing senior unsecured bonds amounting to €49,500,000 that is roughly onethree of the existing bond value of €150,000,000 And at the same time, we'll extend the maturity of this existing senior unsecured bonds by another year at the same terms when it comes to the interest rate. The consequence of that you see on the right hand side in the graph. And that means that we are able to deleverage to decrease heavily our debt situation over the coming quarter from the 3.17x that we reported now with partial repayment and some excess cash that we will have due to this transaction to below 2x or 1.9x as we see that as of now. So we will end up at the net debt situation from a prognosis perspective of roughly €85,000,000 in the Q3. And as mentioned, the leverage will decrease to 1.9x. As we previously announced, the long term target for leverage is 1.75x. So very close to that already, and I'm very happy, very pleased with this refinancing situation being in place. Next slide, please. So thank you, Peter. It's time now to go through a bit of the outlook looking forward. So next slide, please. I'm happy to inform that the Q2 has started very positive for us. We can see year on year growth in April in terms of revenue of 17%. But what is also very interesting here is actually growing month on month, hopefully, from March. And considering that we had April full of COVID impact and management growth, we are extremely pleased with that trend. Why is this happening? How was it possible? First of all, it was a good work with product mix where we can anchor both between sports and casino, of course. Also, geographical mix, of course, we're having good trends in U. S, but also in Asia, combined with Europe, makes it grow. This combination with the general traffic inflow increase, considering the previous discussed strategic initiatives to improve that has also put together a very good trend. But then, of course, also a very good team effort by all the employees to make this happen, working day and night to ensure it. Next slide, please. One thing that is also very important all the time when we talk about the future is, of course, how it's going in the U. S. Considering the amount of business we have there. Currently in U. S, we are now live in 7 states, and there are some more states coming. Core states like New York and Pennsylvania York and Pennsylvania performed very well in the Q1. We could see that regardless of the COVID impact, which, of course, had a big impact on sports, in general, as I mentioned earlier, very low amount of sports event had COVID then, and the business is very, very low. But casinos strongly compensate that anymore, both from the traditional casino states we have where we can do online business, but also in terms of the social casino, as we mentioned before. But it's also porker, which had a rebirth in that sense. The good thing in this case also is that we know that we would like to enter a lot of new states as they roll out, and our fear was that COVID-nineteen would have a negative impact on the regulatory framework and process in the U. S. But on the contrary, we expect to see some positive momentum there now with more states indicating to launch, which looks very good for the future. On May 1, Colorado went live with sports, and Tennessee is likely to go live in this summer according to the regulatory body over there. Both are active in sports. Then we have a lot of additional states down on the move. I will talk to them about that in that next slide, but before that, I'm happy to announce also that. So recently, we can see some new sports up and running already. Horse racing in U. S. Has been around for a while. UFC started recently and also NASCAR had its 1st race a couple of days ago. Golf will start in June, basket July and then, of course, NFL in the autumn if everything goes to as planned. So it's looking forward to be a very hectic and positive second half for us in those active in those markets. Next slide, please. As always, we provide our review of the rollout and what the status is. I will not run through every detail here, but you can see that later part of 2020, there are a lot of indication that things are about to happen. And that's what I mentioned about that the regulatory framework is working very hard now to make sure that state is coming up. Some will launch later than planned, some will launch early. But if you take a look at those actually that we're now planning to come on board, it's a major increase of the population reach we will have once those go live. And this is the kind of chart plus many more we look at when we're starting to plan for ranking and timing for doing so in U. S. So in those states that we're talking about here, we have already initiated work to become very high ranking sites once they finally go live. Next slide, please. So how do you look about 2020? Well, normally, we tend to provide some quarterly kind of outlooks. But given the situation where a lot of changes happen, it's quite tough to do so. But given the start of April, and of course, internally, we have the visibility in May. Adding to that, with the sports events now starting to open up, I told you about U. S. You also all follow the news what's going on in U. S. Now sorry, in Europe now with Bundesliga starting and rest of the world, there will be an active summer and autumn in sports. We feel very positive about that, of course. Add to that, the increase what we see penetration of casino players worldwide online considering the COVID impact on this. So casino might eventually reduce a bit. I think we all can read that. But on the other hand, we believe that more players will be active out there. So we foresee a very good trend going forward for Gaziba as well. These 2 together, with U. S. States also underway, believe that we can sustain a good trend of growth from now to the rest of the year. In order to also ensure good profitability, we're doing 2 things, as I said. We carve out amounts of the existing legacy business and reinvested in others to make sure that we always are sure are on our toes for new revenues. On top of that, we have general cost improvement projects, and everything is now working as planned. Hence, we also foresee a nice steady margin coming out from us unless we decide to invest even more in things we don't know of today. So in total, we're following our strategy as we applied, and it works, seems to be working very well. In terms of our outlook for the year, given where we are today and the trends we see, we have no reason to back down from the target we announced earlier, and that is a double digit profitable organic growth for the year, which maintain insight for our business. But of course, as time pass by, we will update on our side, but it looks positive as of today. Next slide, please. So to summarize, the key takeaways tells you everything I've been and we've been through in this presentation today, I will not run them through all. In general, summarized, we feel that we have a very positive momentum. And we are working very hard to make sure that we capitalize as much as we possibly can based on that. Next slide, please. That summarizes this presentation, and we'll now move into the Q and A. But before that, please bear in mind about the coming events you can see ahead of you, 10 full June, the extraordinary general meeting for the final things to conduct about the refinancing. And then we have another one followed on 24 June, followed by the interim report on the 19th August 19th November, we'll do the Q3 report. With that, I hand over for the Q and A. Thank you. Our first question is from Christian Hellman from Nordea. Please go ahead. Your line is open. Hi, thanks. Just first a question on the trading update and sort of how we should think about Q2. You said revenues are up 17% in April. Could you elaborate a bit perhaps on how Q2 developed last year? I'm thinking about the individual months, So we can sort of put the 17% in some sort of perspective. Was April last year strong or was it weak relative to the full quarter last year? Would you understand what I mean? As you remember, Q2 last year was not a very good quarter for us. We had a couple issues happening. First, of course, it was the aftermath of the Swedish regulation, but then in the quarter also we had the exchange regulations in U. K, where which hit us hard. And on top of that, of course, the legacy European casino assets that we had to rebuild because we're losing traffic. All in all, 2nd quarter was a very tough quarter for us, which at the end of the quarter was worse than the beginning. So that gives an idea that if we were up quite nicely against the beginning of the quarter, it looks very positive for the rest of the quarter as well. That was exactly my question. Great. And then just a final question on the U. S. I can't find anywhere in the report how much of the revenues of the group that you generated in the U. S. In the period. No, we've noted for some quarters in the past. Yes. Obviously, we have that. It's so many big swings. So it changed constantly depending on how this is playing and where this forge is up, and that's why we left it out because it's quite hard to build the trend line from it. But it's above 20%. We're next week, sorry. Okay, great. Thank you. Our next question is from Jelmar Alba from Kepler. Just a question on some key markets and key geographies. I know you did not include the development of different markets because of uncertainty from COVID-nineteen and so on. But could you still give us some indication if some markets have seen some big changes, I mean, in Europe and not U. S? And if you can see anything on the trend there, if there's anything to say. Okay. In general, in Europe, if we break it down, we need to take this by business segment. In general, in Europe, it's a quite similar reduction of sport impact as the leagues there went down more or less at the same time. So the typical average 50% down on sport revenue from the operators in Europe, and the total business can line us about what we see. U. S. Is a bit different, as I said, because if you compare with previous periods, normally, the end of Q1 and beginning Q2 is extremely low. So if that halves by itself, it's hardly nothing left. When you look at casino in Europe, you have a very similar trend also there for most markets. We are seeing similar changes in our traffic to the positive in most markets. When it comes to U. S, extremely well because of the big population only involved in land based casinos as well, but also the social casinos I mentioned, which is works as a kind of thing you do tend to do when you work from home, not involving the money in that sense. When it comes to Asia, obviously, Japan, where our predominant business is casino. We know that Q4 normally in Casino is a bit slow for us in Japan, but Q1 started off very well and was also boosted by the situation for us, the revenues there. So we're very pleased with that. These kind of trends where you see the average fall down compared with where you want to be, about 50% for sports is where we see generic across the globe, but also very similar trends in for casino as well. So it's quite easy to project for us how we see the things will play in the future, but we should never take it easy because you never know what happened. But in general, it's been able to monitor so far quite easily. Okay. And then a question on, I mean, the posting customers and old customers. Can you see anything do you have any insight on how many I mean, this COVID-nineteen impact, if it's a lot of new customers coming in and playing? Or is it a lot of old customers that are playing more? Or are all pressing starting to play again? Can you have do you have any insight on that? It is a mix, of course. If you look at we have an increase of NDCs in the quarter, of course. And April, we didn't see any change in that, which is quite normal as obviously, we have an increase of traffic to the sites because of the situation and the small people are registering and paying. So that trend we have. But if you look at the increase of new customers compared with the increase of revenues, you cannot entirely allocate it to the seats. You also see that active base is also active in casino. But obviously, if sport goes down, you have a negative impact on the revenue share from sports. Got it. And a question on the cost trend. I mean, of course, you now cut cost a bit partly in Q1. Q2, I guess, cost will be lower again or at least in par with Q1 maybe. But then if I mean, sports event comes back online again, cost will come up. But can you say anything on the trend in Q1 and Q2 and for the rest of the year for operating costs? I think it's a quite big experiment, to be honest, because one thing is that we know what we can allocate back directly to run the product as we should. We know how much content creation cost to run sports in a normal way with no other issues like that. During this time also, we've done a lot of efforts, for example, in performance marketing activities like PPC. We also changed a lot. So actually, we invest less now, but we can have more margins coming out from it compared to previous years. So currently, we have been saving there because we don't need to buy a lot for sports, but it might be so that we increase if we can save quite a very healthy margin from it, of course. And that may be cost parameters move a bit, but in the overall, it will generate more bottom line, of course. When it comes to staff, we have we have program now to work with what we have, but we're still recruiting some specialist jobs where we believe we can have January uptick from that. But in general, the investments we take will not be greater than the revenue increase we see. So all in all, we believe we should be able to operate with a steady margin going forward being very much in control of our cost. And as there are no further audio questions, I will hand the word over to Orsa for any web questions. Please go ahead. Yes. Thank you. We've got one from Martin Blomquist, and it's Tupar, I guess. Or if I'm in a state who will get in a media be active in 2020 in the U. S? Well, we're currently active in 7, 6 online, but then also Iowa that is land based that we're doing in trial there to actually drive leads for land based operators as well. So first startup when the states start to launch and then to shift over to them to online later. We know that Tennessee is coming up. That will make it 8 states, and we will see whether Michigan or some other states coming, but at least 8 states for the second half and hopefully some more, which we don't know about yet. Perfect. Thank you. I have no more questions from the e mail. All right. Thank you. That will conclude from our side. Thank you very much for listening in, and see you soon on the next quarterly quarter. Thank you very much.