A warm welcome both you on the call as well as those of you that are participating from the web. My name is Martin Carleson. I'm the CEO of Evolution Gaming. And with me today or with me, I have Jacob Katmann, our CFO. I will start by commenting on our performance during the Q2 of this year.
I will then hand over to Jacob to close a look at the financials. And after that, we will open up for questions. Okay. Let's get started. Operator, let's go to Slide 2, please.
I'm very happy with the delivery in Q2. Q2 was a very strong quarter. We're seeing strong growth momentum. We also see we are also strengthening our margins. I'm pleased with that.
I'm happy. Let's look at some highlights. We have a revenue growth in comparison to last year, 56 percent to EUR 42,300,000. Revenue EBITDA increase of 81 percent to SEK 19,200,000. The EBITDA margin is 45% compared to SEK 39 percent last year.
Also, very gladly, we see an EBIT increase of which is even stronger, amounted to 91% compared to last year, SEK 15,900,000. We see a continued high demand for Life Casino, successful launch of the Dream Capture and the successful launch of the Jumbo 7 jackpot. Besides that, we'll move to NASDAQ, Stockholm Mainly, listed as a large cap company, which was a very good and very nice profit loss and went very well. After the end of the period, we also have a confirmation from the Georgian authorities that we are okay to operate a live studio in Georgia, Sibylcie. The momentum is exceptional and there are several things contributing to that.
And I would like to just outline a little bit about that. We're working successfully with our operators to get the most out of the live operations. And we're using BEI to optimize. We're probably one of the strongest BEI DEI in the industry right now, tuning, opening hours, debt limit, product mix promotions and so on. We also see that operators are even more promoting live offering as they recognize it being the most strategic, fastest growing and most profitable
work hub.
The underlying growth in the online gaming in general, together with Live! Actually takes shares or share of live increases in online gaming, together with the fact that we're also geographically expanding drives our growth. This makes the growth been driven from multiple dimensions. I also want to mention that we are working hard on the efficiency internally, and we can see some signs of that also, of course, with the margin and other. The last part that I want to mention, which creates this exceptional situation that we have, is that we have put together management, which is very strong.
We're working hard to be the best organization. Management is delivering. I'm very happy. And I see also that the total organization with everyone is coming together towards our goals. I want to humbly say that it's much more important than many of the things that we talked about here today.
Next Slide, please. During Q1, we introduced that spot as an indicator that's an indicator for the activity in our network so that you can get the feeling for what is happening inside the network. It's a way and it's something in line with our approach to actually be more transparent and for you to be better understanding our operations. We see the activity in the form of backports increasing 7% to 8% year on year in Q2.
Next Slide
3. We have a limited increase in stock the last two quarters when it comes to SEAs. That comes from a number of aspects, and I would like to comment on some of those. We have less growth in number of tables this period compared to last year. The aggressive growth that we saw in combination with the Euromass Euro Championship last year was pushing a lot of tables in early, which we don't see this year.
And then due to that push that we had, we are in a little bit of the consolidation, 2 quarters consolidation phase. So we see that we get the right table mix together with our operator and that we tune it, we have the right stock and This higher efficiency, of course, contributes to the margin. But it's also worth mentioning that we see an increased demand for exclusive environment second half of twenty 17. And in conjunction with that, it's also worth mentioning that in any situation where we would have a trade off between growth or margin, we would always go to aggressively see that we get growth. Next slide, please.
As we are growing 57%, we need place to grow. The new studios supporting that have been evaluated a lot. We have looked at over 10 different countries to find where to put our next top of the line studios to support our continued growth. After that evaluation, we selected the DC in Georgia. And after that, we've got the confirmation from the Georgian authorities that we're that we can and not violate any laws by putting the light studio there.
We will start the project to build a fantastic studio in Tbilisi. I foresee that, that will cater for our growth in the coming 2, 3 years. I would like to take the opportunity as well to just comment a few things about the leases just to get the feeling for it. Number of students in Georgia is about 140,000, which is a very good recruiting ground for us compared to Riga maybe which where it's about 84,000 dollars 5% in comparison to regions. We also see that the second language in Georgia is for the young generation English.
And we also see Georgia is closing its cooperation with EU. And we also noticed that they are now removing the visa demand for any travel business in EU countries and Georgia. We also know low corruption in crime rates. So we are happy with the selection. And this, what I mentioned now, is, of course, just a handful of a long, long list of evaluation points that we made.
Next slide, please. Continued product leadership, I will come back to that. But increasing the gap competition, taking more market shares, that's something that keeps us awake at night. We're paranoid. We want to continue.
We want to drive forward. We have released Green Capture, a new type of game never been seen before in live. It's a fantastic it has had a great start. It's a little bit softer game aiming towards new categories of players. We see good figures from Vision Capture.
We have released the Jumbo 7 jackpot, EUR 1,000,000 founded by us, and we are aiming that to become one of the biggest jackpots. Gladly, I also want to highlight the fact that we got the 8th consecutive EGR award at the live casino operator. If you have got the trial 8 times in a row, you're the 7th time coming to the 8, you're actually more worried than ever. I'm extremely proud that we can announce that we got 8 in a row. And it also shows that we are continuously putting the new boundaries, breaking them, putting new boundaries, and we really are increasing the gas competition.
By that, I would like to hand over to Jacob, our CFO, for a closer look at the financials.
Thanks, Martin, and good morning to everyone on the call. Operator, we can go to the next slide, please. As Martin just covered, the strong momentum we have coming out of the Q1 has continued also during the Q2. This makes for an exceptional result in the period and is reflected in our broader financial development. As you see in the slide, revenues in Q2 grew 7% quarter on quarter compared to the Q1 of this year and 56% year on year.
EBITDA increased to EUR 19,200,000 in Q2, that's up 13% quarter on quarter and 81% year on year. At the moment, we are seeing very good growth numbers throughout the customer base. Customers who have worked with their live offerings for a number of years are growing as well as smaller customers who more recently launched North Woodhouse. This indicates an underlying growth in the live product, but this also result of our active work with operators, sharing our best practices and supporting them in getting the maximum out of their investment with evolution. The broad base for growth is very positive in our view and encouraging as we go into the rest of the year.
Margins here illustrated by EBITDA margin are also up during the quarter, 45% is the highest level we've registered in the second quarter. Also here, development from the Q1, as Martin covered earlier, with a high payer activity on existing have continued, and this supports margins in the quarter. We have also added new tables during the quarter, mostly during this toward the end of the period, still not quite at the same pace as last year. However, we still see high demand for expansion of dedicated environments and expect to add more tables during the second half of the year than during the 1st 6 months. It's natural that demand for tables will vary between quarters and also between years.
And as we said in the past, during time for more rapid expansion in tables that will pressure margins as we stand upfront on recruiting, hiring staff, training, building environments, while revenues take some time to develop. But as shown during the first half of this year, margins return when growth is a little bit more stable. In terms of expectations on margins going forward, I think we repeat the statement we had in Q1 that the rolling 12 month average is around 40,000,000 and clearly that's where our expectations start. So looking towards the second half of the year, we should be able to stay clearly above that level. Let's go to the next slide for a close look at our P and L in the period.
Thank you. Revenues in the 3 month period April to June 2017 totaled NOK 42,300,000. As mentioned, that's up 56% compared to the same period last year. For the first half of the year, revenue growth is 58%. Moving down to expenses.
Personnel expenses totaled EUR 17,600,000, that's up almost 49% year on year, mainly driven by increase in the number of need presenters, but also IT engineers and admin staff have increased between the periods. Depreciation is EUR 3,300,000 in the quarter, increased 44% year on year. We are not investing at the moment. I will come back to capital expenditure on the next slide a little bit. Moving on, other expenses, that includes rent, consumable equipment, consultants, other advisory costs.
And in Q2, roughly EUR 300,000 is related to the process that most of you know and Martin just mentioned, we are transferred from Kursk Nord to the main list in at Nattak Toko, almost completed on 7th June. So happy about that and also happy about sort of moving on. Tax flow period, EUR 1,300,000, that's a net flow tax rate of 8%. Bringing us to profit for the period of EUR 14,600,000 equal to an earnings per share of EUR 40 per share and for the rolling 12 month period EUR 1.21 per share. Let's go to the next slide.
So coming back to investments. The graph to the left shows CapEx just over EUR 4,000,000 in the quarter. As we mentioned also last quarter, we will increase CapEx during Vancouver and in TDC. Also, we are continuing to invest in our building in Riga that should also be mentioned. So this affects mainly tangible investment.
What I'm expecting at least double the Q2 level for the second half. So in Q2, close to EUR 2,000,000. So that would be at least EUR 4,000,000 in Q3 and probably similar level in Q4. So heavy investments during the second half of the year, we are investing to meet the future growth. Operating cash flow is up a little bit in Q2.
Cash conversion fairly steady at 60% just under 60%. And just a quick look at the balance sheet shows we have a strong financial position at the end of the period. That was the end of my prepared comments. I'll hand back to Martin for some closing words, and we'll take questions after that. Martin?
Thank you very much.
Let's have a little bit look ahead. Next slide then, of course. We see continued growth. There is nothing right now that we see or know that is blocking our continuing growth. We're fiercely fighting to do everything to cater for that, setting up to D.
C, we're going into Canada. We've stated that we're on our way to New Jersey just finding the right things or how to do it. But of course, we don't know. We haven't gone outside 10 years ahead. Still nothing that we know will hamper or do anything to our growth, important.
We want to take market shares. We want to continue to be on top. We are paranoid in increasing the gap to our competitors. I think that is the most important gene inside evolution. We constantly want to move on.
We constantly want to do things that we constantly and I'm very happy with seeing our company coming together towards these goals. With that, I would like to wrap up and move to the Q and A part of the call.
And the first question comes from the line of Michel Lassine with Carnegie.
Congratulations to a strong quarter, first of all. First question is about Georgia. Can you say something more about the OpEx there, when you will start it for the timing, regulatory, political situation in the country? That's my first question.
I can comment on that, Martin here then. Joerg, I we don't comment on OpEx at the moment when it comes to levels. We have said we are going to set up a top of the line studio, which is really something fabulous
to cater for the growth going forward.
We don't we are going into an active phase with the project right now. It's a bit too early to state when investments will take place. I wouldn't like to go into that. We have to move from this initial setting up before commenting on it in any further than what Jacob already done, but we see that positively that it will increase. Political situation and the country as such, we see it as stable.
There are other operators being there. We have a very positive outlook of Georgia. And we have a very positive outlook on the future development of Georgia. And in comparison to the valuations we did with a lot of other countries, it came out really strong.
Okay. Thanks. But will you set up the start investment in Q3? Or is it late this year?
No, it will start in Q3.
Okay. Good. And then when it comes to exclusive environments that you mentioned, you will a lot of operators will want to do that and develop them further. Can you say something more about this means for revenues in the short term Q3, Q4? And also for head count, is this sort of a significant change in the second half that could hold back the margins sequentially?
No. It's not a significant change. I would say that it's more the 2 quarters we have had now with a little bit of consolation, and then we'll probably continue in the same shape or form that we have had before. So no significant change, quite a natural behavior. The table and the expansion, it will go a little it can vary between quarters.
So it's more a comment on the current situation going forward. So no significant change.
Okay. And also, can you maybe comment a bit more where you see growth coming in sort of regional terms or geographical terms in Europe? Give some more color on that would be great.
We don't comment on geographical where our growth is coming from. We haven't we don't go out or disclose those figures. I think that basically we stated that UK is our largest market and naturally then growing lots of growth comes from there. In general, I would say that all markets are growing. Some might be a little bit more, some might be a little bit less, but we don't comment on those deviations between the single markets.
All right. Thanks.
Thank you very much. I'm moving on to the line of Martin Haanel with DNB Markets.
This is Martin here.
First question is on if you can comment anything on near term trading in Q3, if you have seen these growth levels that we saw in Q2 continuing so far in Q3?
The start of Q3, I mean, okay.
Yes. The only comment I would I'm sorry for repeating myself, but I would rather comment it in a way that we don't see we don't know or see any blocking issues for our continuous expansion and growth. We don't, in particular, comment like the 1st days of the Q3. It's very early.
Okay. And then for the full year, Jacob, did you say I mean, you say that you have this view of rolling 12 month EBITDA margin of about 40%. And could you just clarify if you commented that you expect it to be above 40% for the full year?
Yes, definitely, Bob. I mean, I think what we said is the same as Q1, but kind of our expectations start there. So we're I think we're higher than €40,000,000 in last year. €45,000,000 is, of course, excellent margin in this quarter. But we'll see what the rest of the year how it unfolds.
And as Martin said, I mean, in a situation where we where there's a trade off between growing and margin, we will still be investing in growth. But here, for us right now, it's higher than what we are expecting.
Okay. And then just finally, two questions Canada, what's the latest in the development there?
The latest in development in Canada is that it's an ongoing project going according to our plans, internal plans, and we haven't really commented on those. And besides that, there is nothing
Okay. Can you say anything when you expect to be live?
We have earlier I can reiterate what we said earlier. We aim to go live somewhere between late 20 17. Potentially, it could be early 2018, but late 2017.
Okay, perfect. And then just final question on your contract in the Netherlands, which you highlight in the report as a key key contract. What's your view on the latest regulatory development in the Netherlands? And how do you expect that to impact you?
I of course, I have a view. I have an opinion. I have insight. But it would be highly speculative from my side to comment it. I can't do it.
It's a very difficult situation, lots of parameters. So I refrain from comment on that.
Okay. Thank you, guys.
Thank you.
Thank you very much. And moving on to the line of Rasmus Ingberg with Handelsbanken. Please go ahead. Your line is open.
Yes. Hi. Good morning. Great report again. Can I start with just a little bit of nitty gritty here?
Just for Jacob probably. The other operating expenses are quite a bit lower than in Q1 in this quarter.
Is that can you sort of
just what is it? And also, is it unusually high in Q1 or unusually low in Q2? Or is there some sort of capital there? I'm just trying to understand that because it's like €1,000,000 in difference there.
That's sorry, following in the euro nitty gritty, but I'll have to come back to you on the specifics of that. There is no sort of big trend shift so that I don't have a straight answer there, Rasmus. I'm sorry.
Okay. And
then That is a good question. The
when do you anticipate to drive recruitment? Does that tie in with Tbilisi? Or is it independent of that?
Come again, please.
I mean, you have had, as you say, you had a compared to certainly compared to last year, but you have had somewhat slower setup of new tables and therefore recruitment and so on. When do you think that will pick up significantly again? Is that waiting for Georgia to open or is
that No, no, no. So I would expect the pickup in starting to pick up in Q3.
But not massively, yes, that's what you said, yes?
It's hard to use these additives massively strong or significant. It means some different things to different persons. But we will see a pickup in Q3.
Yes. All right.
And then coming back to Georgia. I think flow is relative to Riga. And also, is that going to when is it roughly going to be operational? Is it sometime next year?
Yes. That we can state. Sometime next year.
And your ambition is that or the size of the site, is it similar to retail? Or is it
I would say it like this, that the potential should be similar to region.
Yes, of course.
And I would like to add one thing to that. It's also important for us to be able you don't want to fill the studio to the absolute maximum because the maneuverability inside the studio is done very hard. So probably, I also want to have the balance between the different studios, but the potential size of Georgia is the same as Sweden.
Okay, good. I think those were my questions, yes.
And moving on to the line of Christian Hellman, Lordea.
Two questions. Just the
first one on this new KPI that you've started to report in the Q1 report, the bed spots. It was up 80% some around 80% this quarter. So how should we interpret that relative to your revenue growth?
That you should interpret it as that the activity in the network increased 7% to 8%. And I would be in the long term or even I wouldn't really make a connection directly to revenue. I would just it's more an indication of that activity increases in the network.
Okay. So there's no indication of sort of pressure on the rev share or anything? I mean, if your revenues are up 60% and activity is up 80%. What's the difference?
No. I wouldn't draw that. I wouldn't draw any conclusions on that. Why? Because activity in the network can vary a lot between quarters and quarters and it can be a lag or it can be before or it can be after.
So revenue is one thing and activity is another thing.
Okay. So okay, fine, fine.
Yes. In the longer run, of course, there'll be directionally, they'll correlate, but it's not the quarter to quarter indicator in that way.
Okay. I'll wait until we have a few more of those KPIs and I'll do it for
Exactly. That is the right conclusion. Give it a little bit more time and we'll probably add some more KKRs. We'll try to add the right ones and slowly try to build up sort of a little bit more holistic view on what's happening without then, of course, showing too much to our competitors. That's all the best.
Understandable. Another question on Georgia. Can you comment on sort of the cost level compared to rega? I'm thinking of wages, rent costs perhaps, but I guess the wages would, in the long run, be the main cost item. So compared to Riga, what's the difference, if you can give some sort of guidance?
1st, before going into the cost, I would say that we are setting it up for expansion. We are setting it up with the same or better quality or same quality as we have today, always pushing to develop the quality that we have in Riga and Malta and all the other studios it's continuously doing. So we're not doing it for the cost level. Secondly, I would say about similar cost levels as as Riga, give or take also because of the scalability and the size of Riga and so on.
Okay. So wages are roughly the same in Georgia and Latvia?
I would at least say initially like that.
Okay. And in the long term, lower or higher?
It's hard to say. I don't want to comment on it. But naturally, we don't aim for higher costs.
No. All right. And the DreamCatcher, which you highlight as a positive in quarter, can you give some sort of number on the DreamCatcher? Just give us an idea of how it's doing? Or is it early days?
It's not that early days that I couldn't do it, but we also don't comment on specific gains as such. But I will say like this, we have quite high expectations on or potential belief in Dream Capture, and I would say that it currently fulfill those. And that's as much as I can do when it comes to numbers. Maybe we could look at disclosing something next quarter, I don't know. But right now, we don't want to do it.
It's a bit too early, too sensitive for us from both in competition and other.
Fine. But how many dream catchers do you have up and running? Or is it just one wheel or is it 5
or It's 1. It's a huge wheel. It's 1. Okay. So it's 1 running 20 fourseven, 2 times a day.
We stop it for overhaul, cleaning and doing like that. It's a short break and then we'll go again. But of course, we're looking into an expansion of potentially more.
Yes. I'm thinking different languages or something or
exclusive tables or wheels.
All right. And it's a great question before round off. Mobile revenues, you said it was down 50.
Percent just to sort of for
the sake of my model. Was it 51% or 50.5% or
I think it's 52% actually.
52,000,000,000. Okay. And just the final question, coming back to margins in the second half of the year. I think I know the answer, but just sort of puzzling it together what you said. On EBITDA level, you're basically saying in Q3 and Q4, second half of the year combined, margins on EBITDA will be most likely at least above 40, percent, but below the level of the first half of the year.
Is that correct? We haven't stated that. But we have I mean, let's put it like this. We don't see anything right. We don't see any blocking, any we see continuous growth.
We see that we are delivering on a certain level. We are seeing great margins right now. Maybe very, very strong. But we also don't see our expectations come from SEK 40,000,000, but it should be well above that. We haven't stated if we will be here or there.
All right. Okay. But the only thing we can say on that.
All right. But you're saying that you were going to invest in new tables, picking up in Q3 and tables that initially are margin dilutive. So all else equal, at least, margins should come down? Or am I missing something?
I'm not worried about the margin.
No, me neither. I'm just sort of chasing for the second half of the year, but okay. I'll leave it at that. Thanks.
Thank you very much. And moving on to the line of Sharice van Vif with Danske Bank. Please go ahead. Your line is open.
Thank you so much. Hi, guys. I have a couple of questions. On EUCOM that you guys will go live in Canada. And is it second half later in 2017 or early 2018, is that when you guys are going to start the studio building OpEx?
Or is it when you are going to go live in the first half?
No, no. It's ongoing right now. Go live there.
Okay. All right. Then that's when you go that's when you will go live with BCLC, right?
Yes.
Okay, perfect. And then just looking, I think Christian touched upon that question as well. How at stat costs, you guys, of course, more tables. You'll go live with a new customer in a new studio. Looking at expansion in staff, how much should we I presume those are going to be higher compared to first half of this year in terms of relative to sales personnel costs, right?
I'm not sure I got your question the first. I said the second half, you mean over?
I'll try to simplify it. Personnel expenses relative to sales, I guess those are going to come up much more in 2,000 in Q3 and Q4?
Much more, it's hard to say. I mean, we will expand with more I think, Kekka, back to the early question. I think we're expecting a little higher growth in tables during the second half. That drives recruitment a little bit. So personnel will come up along with that.
What margins when margins end up, of course, it depends a lot on what will the payer activity be. So we see a good trend right now. We had, as Martin stated, nothing sort of no change in that. So I think we'll be able to maintain good margins also with expansion in tables during the second half. But as we've seen, looking at last year, we don't expect to go with supporting in EBITDA margin as we did in the second half of 2016, not that it was, so that's not what we're saying.
But as you see, the margin kind of varies a little bit. And I think right now, we're at a little higher level than we were if we look back at last year, but there's no some dramatic shift in expected during the second half.
Okay. And just back to that question, we talked about it before me. So margins, just looking at EBITDA margin in Q3, Q4, I guess those are going to be below 45, but some are we see those guys yet.
We have now we have talked about this 102 times. We have stated we don't see anything hampering our growth. We continue. We don't have anything that explicitly will deteriorate the margin. However, we reiterate what we stated in Q1.
We our expectations on margins start at SEK 40. And where it will be in Q3, Q4 is dependent upon a couple of things. But there is nothing that is stopping us from delivering a very good margin as we are doing now. But it's very hard to pin that down if it's going to be here or there. So we reiterate it.
Our expectations start at 40%, but we will be we'll continue our growth pattern. So it's very hard. I know that you won't sort of to put down a figure all of it's very hard to do that. And even if you ask us a couple of more times,
we can give you that figure. I'm sorry.
That's fine. Thank you so much for just clarifying it for the 100th time. And then lastly, on the seasonality effects on top line, is there something is Q3 going to be, I guess, slow in terms of activity or not slow, but relatively slow? Or do we see good top line growth both in Q3, Q4?
Seasonality will be strong in Q3, Q4. That is sure. But we have also to remember, we had a really strong Q3, Q4 last year, seasonality will be strong Q3, Q4. I would say that from that note, sir, I mean, we are on Q2 much stronger this year naturally than last year in comparison to Q1. So we are, as we have talked about, growing through the seasonality clearly in Q2, and that is extremely strong.
I agree. So just to clarify or simplify it for myself, I guess, Q3 in terms of activity is slightly lower and then it picks up much better in Q4, just so you know simplify.
It. So come again. I'm not very sorry.
I was just thinking of activity and seasonality in Q3, Q4, I guess, slightly lower in Q3 and then picks up in Q4 in terms of activity?
General online, if we lead evolution, general online seasonality will be like strongest month is December, January, February coming down due to figures, and then it goes down. And I would say that end of Q1 and Q2 is the slowest. For sure Q2 then is the slowest quarter. And then you see a pickup in Q3 and a pickup in Q4.
I see.
So Q3, I would say, in general terms being a strong quarter than Q2.
Perfect.
That's it for me. Thank you so much for
Thank you very much.
Thank you very much.
Thank you. And moving on to the line of Rasmus Enberg with Handelsbanken. Please go ahead. Your line is open.
I'm not going to talk to you with any margin questions. I just had a reflection on one thing, which I find very interesting. It's a concept of pool jackpots. Is that possible to expand to other outside of poker? And is it something that you sort of thought about?
Yes. And yes. We have not only thought about it, but we created the fundamental, I wouldn't use platform, but the piece of software, the jackpot software to be able to also use that for other products. And we have a plan to do so.
Yes. And just on that matter, is it for you is that sort of a pool where you pool the money from several operators? Is that how it's going to work with it? Correct. Yes.
Right. Correct. Very good. Sounds extremely interesting, I think.
Yes. And you can, of course, as an operator decide to be part of it or not, naturally. And it's a very good business model, and we expect the jackpot to grow phenomenally well, of course. And it's a stickiness and that is a way for us to leverage on the liquidity we have in our network, which is something unique as the players pull into these jackpots. We're very happy with that.
Very good. Thank you.
Thank you.
Thank you. No further questions in queue. And with that, I would like to return the conference call to the speakers.
Thank you very much. Thank you. Actually, we have received one question of the regarding sort of price pressure in general, maybe you want to come back to if we could see any price pressure in the segments.
Yes, I can comment
on that. So then there is a there's question in mail on the price pressure in general. I would say that we don't see any general price pressure. We don't feel that. Naturally, as the large customers are growing, we feel a pressure as always from those negotiating renegotiating the terms.
And I would say that there we can see that we are pressured on the margin in comparison to our total margin, where of the lower segments, the other one are contributing much more, where the smaller operators are simply paying a little bit higher fees. So no general price pressure. Naturally, as customers double and double again, they are negotiating hard. And we see a net contribution from the lower tiers, which is higher to the margin.
That's a bit it.
Do you want to add anything, they got Okay. Then I would like to thank everyone for participating, and I hope that you found it informative. And again, I will reiterate, I'm very proud of the quarter. I look forward to the next quarter and the next one after that. And I hope you enjoy the rest of the summer.
Thank you very much.
Ladies and gentlemen,