Earnings Call: Q2 2020

Aug 11, 2020

Quarterly report

Hello. Good morning. I'm here together with Jorgen Lorenzon, company CFO. And Ingrid Boiner, Chief Commercial Officer. And my name is Johan Attelander, and we're here to present the Q2 report for Storetel AB. So basically, Q2 was a very strong quarter. We could see that we had 42% annual subscriber growth and 43% revenue growth, which is, of course, very, very strong. In some part, of course, this revenue growth is boosted by the fact that a lot of the VAT rates in many of our markets have been reduced on in the third quarter last year. We will see on the second half of this year that the relative growth number will drop down significantly. But the underlying subscriber growth is very, very strong. So I'll hand over to Jorgen to walk us through the highlights of the report and also the numbers. Yes. So could you please display the 3rd slide, highlights in the reports? So and just as Jonas said, streaming sales were up 43% compared to the quarter same quarter last year, which means SEK 459,000,000, the highest ever in the company history. Subscriber base up as well to on average 1,257,000 users, up from short of 900,000 last year, the same quarter. Looking at the revenue line, which includes everything in the group. We came in at SEK 554,000,000, up from SEK 402,000,000 last year same quarter. So a significant growth also on the consolidated level. Worth mentioning during the quarter as well is that we renegotiated our financing from Swedbank so that we now have only a so called revolving credit facilities of SEK 500,000,000, which means this is a credit line that we could draw anytime we like, but we don't need to pay full interest for it. We simply pay a small fee to have access to this credit line. As of today, we use nothing of it. We have during the period as well, in conjunction after the AGM, issued a stock option program for all employees. So that means that everyone employed by the company beginning of June are part of a free staff option program. The intention is to, of course, to create loyalty and sharing the same targets with everyone and the staff. The first time ever, we also introduced a warrant program for selected key employees and for some of our new directors in the company. This is a program where they need to buy the option with a strike north of SEK 300. Through this transaction, we pulled in SEK 11,000,000 from our staff and Board members, which I think is a great sign of strength and confidence in the company. So about 50 persons were involved in this WARM program as well. And the stock option program is like 500 in the company that we're offering now. Next slide, please. Going over to the front page with all the numbers on it. So looking to the right where you see the graphs of this total streaming revenue over the last five quarters. You could see that we come in at the highest revenue ever for the group and also the highest contribution margin. Worth mentioning in this as well, you can see that we had a significant increase in contribution margin in Q1 2020, and that is when we changed our accounting principles. As you might remember, we started activating cost for our development of our platform, but also developing and creating our audiobooks. So both those two elements are now activated in the balance sheet. We're talking about SEK 57,000,000 in Q2. So that's a runoff. But even that aside, we have the highest contribution margin in the group ever in history. Looking at the different regions, Nordics and the non Nordics. It's certainly fun to see that the non Nordic region, we improved the contribution margin extremely well. We're up from almost 100% negative a year ago to minus 7% contribution margin in Q2 2020. So significant increase, which comes with increased volume, I would say. The higher revenue of SEK 93,000,000 in the non Nordics in Q2, highest ever and more than 100% more than a year back, I mean, explains the higher contribution margin. Also in the Nordics, it's extremely good, a bit lower than in Q1 this year, which is mainly explained by the fact that we have a heavy marketing campaign in Q2. We usually have that in Q2, and that is to attract as many users as possible in the Nordic countries before they go on vacation in that period. I'll leave the forecast until later in the show. So next slide, please. And as you've seen in some of our recent announcements, we made a couple of acquisitions in July. One was of the Icelandic publishing house for Lager, which is now under competition authority authority scrutiny, if that goes through. We have a very strong position in the book market in Iceland with our service that's attracting a lot of Icelandic people to listen to audiobooks, but it's also very big in vast book market as a whole. This is a very interesting acquisition. Then we acquired Kitafauthi, a competitor in the MENA region, which helped us to acquire big catalog of Arabic speaking audiobooks. So we now have 4,000 titled strong catalog of Arabic audiobooks that we can distribute throughout the world. And also in July, we announced the acquisition of Air Select, a Nordic production company process. So I mean, we over the years, we made probably some 20 acquisitions. I mean, the most notable was Nordstapp's acquisition in 2016 and also our competitor, Moshebo, in Denmark in 2016. And I think that we've seen that this is part of our regular business. When we want to acquire new technology, a catalog or a very strong market position, we always look, of course, to develop that ourselves, but sometimes that's not enough, and we want to speed up things by making acquisition. And I think that's what you will see us doing also in future. Next slide, please. I hand over to Ingrid, who's going to walk us through content. Yes. Content is key for us, of course, since that is how we reach our customers and what they engage with. So we are exploring a lot of investments in the content area. And we're very happy to see that our Storetel original content catalog is growing. We have also released 10 of our strongest titles from different countries into English and included that in our catalogs across the group. We continue to see true crime being very important for us following the investment in Var Al Ullle in the Swedish market, we have done other follow on titles in Iceland and other countries. Virus, which is a total original success, launched its 7th season this spring and has also been explored in other countries, and we're doing re makeovers for a specific other market for this title. Children's catalog has been very important to us during Q2, and we have seen an increase in the readership across the board in children as a catalog. So we've also included more and more titles and invested more in this type of content. Specifically, for the Swedish market, we've invested in Surnorskund and Anders Jakund, some popular title, the Bastyrn and Kordjang. So that's something that many of our customers are enjoying at the moment. Furthermore, all of our exclusive tie sales have also enjoyed some pull from external production companies who are in negotiations with some of this being explored also on to potentially 2 d and other streaming services. Next slide, please. So when we look at the other highlights, we wanted to explore both people and, of course, also what's going on in the different markets. So when we talk about people, this is one of our why we thrive and is very happy to say that we've onboarded our 500 employees. This has also been done in a moment of fully digital situation where we can actually both employ and onboard people fully digital across the board in our 20 markets. We can see that our employee branding score is increasing, and that's, of course, important for us to find the best talent out there to continue to invest in our tech platform and, of course, all our commercial and content areas. In addition, we strengthened the Board during the spring with Stephan Blum and Marlin Holmgren and thanking Hornblen, sorry, and thanking our committed board members who have recently left us. And also joining us in the management team, Hillema Gustafsson, a long timer with Storytel and a great contributor to all things in terms of content and publishing and knowing how to really, really get through in the story and spoken word. So that's great to have her on board. When it comes to market development, in the Capital Markets Day during January, we said that we were going to start exploring other different type of models to reach a broader audience. And that's what we've done. We have launched 2 services in India during the summer, Audubyte and Storecell Select, which is a limited offer with only the Marathi language available, so excluding the English content from the regular service that the premium service that we have across. So that's going to be interesting to see how that develops, knowing that India is a vast market and very diverse. In addition, we have had some vehicle improvements, both in Spain in April and recently in Bulgaria from 1st July. And last but not least, we're continuing our expansion effort. The things we have talked about mostly lately is the expansion in the APAC region. We're going to launch Thailand later this year and Indonesia in 2021. Next slide. So looking at the subscriber revenue growth forecast for Q3 this year, We expect to grow our subscriber base to 1,345,000 subscribers, indicating a 33% year on year growth this year in Q3 2019. And looking at our revenue growth above Q3 2019, we expect to grow that by 21% to SEK 483,500,000 in the 3rd quarter. So I mean, what we've seen I think what we've seen is that some non Nordic markets have slowed down in Q2. You could see very clearly in July that growth stopped for a while and is now picking up again, I think, in August. But we want to be a little bit conservative and look at this as a forecast that we are pretty confident with under circumstances of changing economics in the world and in particular in these markets that newly opened up. So the full year forecast at least for revenues remains at 32% growth and SEK 1,900,000,000 just in the lower end of the range that we communicated in January of this year. Next slide, launch time line. So what does it look like for coming for launches and the markets we're on? Well, what we're very much focused on now and working diligently on is to bring new markets into profitability within 5 years. This slide indicates that. We can see that at the beginning of this year, we had 4 markets that profitability Sweden, Denmark, Norway and Iceland. And we quickly, in Q1, added the Netherlands to this group of profitable markets. And now I believe that we will add also Finland and hopefully Russia before the end of this year. So this is a very important metric for us. We're not profitable on a consolidated level for the full company, but bringing each market to profitability within 5 years is a key metric for us to show that we, on a local level, have found the right product market fit and are able to grow revenues profitably into a breakeven situation. So I'll hand over to Jorgen to walk us through the financial targets. Thank you. Next slide, please. Yes, these are the financial targets that you have seen before. We have polished them slightly. Those of you that know these by heart can see that we have said that we're still going to reach the 1,500,000 paying subscribers at the end of this year, so no change there. But we also say that we want to grow our streaming revenues to €1,900,000,000 Previously, we said anything between €1,900,000,000 2,000,000,000 Now we conclude and see that we think we will hit the lower of this range, and therefore, we want to be more specific. That also means that our percentage growth is tightened to 32%, which is what it is, and took out the 32% to 35% that we used to have. The negative EBITDA margin, we maintained minus 1% to minus 5% over the year. This was changed last quarter just following the change in accounting principle, but underlying, we see the same positive development in EBITDA. Also said, as Jonas just mentioned, that we think we should reach stream possibility on a local level in 2 to 4 markets. We have done 1 at least, so we need to add at least one more to which we should start, and we think we can do it. And we're going to launch in 1 to 3 markets, and that also corresponds with exactly what Ingrid told you before, where I should say we're opening up in market. Looking at our long time financial targets, maybe even more interesting, this is unchanged. We still believe we can grow the paying subs by 40% on a year by year basis, while our revenues will come in somewhere slower. And between these two, of course, the revenues is the important bit. Maybe depending on the price development and mix of countries where we grow, we might need to grow even more paying subscribers to hit the revenue target. And we want to be clear that we will prioritize growth before profitability as long as we improve our customer lifetime value compared to the acquisition cost of the subscribers in our time period. And as Jonath mentioned as well, we want to reach streaming profitability on a local level within 5 years from launch, and it seems like we are able to do that and launching the additional at least 20 markets over the coming 2 year period. That's also in line with what Tim you mentioned that we are on that and continue to do that. So I think then it's time for next page and Q and A. Thank you. And our first question is for Jacques MacDonald from DNB Markets. The floor is yours. Thank you. Good news, little Tim. So when we think about your Q3 guidance, I mean, there seem to be no clear seasonal boost in Q3 for your non Nordic markets. You talked a bit about this, but we have historically seen a Q3 boost even in these markets. Can you talk just a bit more about what drives this conservativeness other than, say, uncertain GDP outlook? Yes. Sorry. I mean for the Nordic markets, we had very strong Q2 and then also strong Q3 guidance now, growing by almost 60,000 subscribers. So I think that's all well. That's where we've seen the seasonality seen people going on vacation at the same time in July, and we've seen that effect very, very strongly over the years with Storetop. That effect is not as accentuated in the non Nordic markets, and it varies a lot. But what we could see this year was that, as you know, that the corona currently situation brought incredible growth to Storetel in April. In particular, we could see that extend into May and then in some parts into June as we had lockdowns in many of our markets. Most notably, we saw Russia, Turkey, India and also countries like Italy and Spain. We saw some really good growth. But then all of a sudden in July, we could see that this growth totally disappeared as we basically July was the last month more or less where there was no growth in these markets at all. Now we can see that this starts to pick up again, but it basically means that the growth for Q3 will be a lot lower for the non Nordic markets as a whole. We see some examples of markets that are growing pretty well like the Netherlands, but apart from that, it's much lower than we've gotten used to historically. And then you can ask yourself, is this a long term trend? What's going on here? I mean, fundamentally, personally, I believe that the strong need and interest in listening to good stories We'll continue to grow in these markets as we do a better and better job storytelling and getting more and more people to know us. So but here and now, this is what we can promise, so this is what we can estimate and want to communicate to you today. That's clear, Jonas. And having increased the credit facility, can you elaborate a bit on if you believe the organization is ready to pursue even more acquisitions in by the end of 2020? Or will the focus be entirely on consolidating the treaty you've recently announced? Yes, Kjell. As you know, we cannot comment on any future acquisitions, if we're doing or not doing. But as Jonas mentioned before, when we talked about the months that are done, this is part of our ordinary business of the company, and we, of course, need to look at these opportunities in all the markets we're in. We just recently hired an M and A manager that will join the company in a couple of months' time. Maybe that gives you an indication. Thank you, Jorgen. And just a final question. I mean, now that you have a relatively, say, new setup with your first pure technology acquisition in Eareselect, are there any, say, growth plans or strategy that's maybe out of the ordinary that you're thinking about? I mean, in what way do the sort of will be different over the next, say, 5 years than it has been in the past time? In terms of what, in terms of technology buildup or Exactly. More from strategy point of view as you've complemented, say, the traditional publishing based acquisitions now with more technology oriented ones. I think it's difficult to tell. But I would say that, of course, data mining and data processing is more and more important for us in order to service our customers best and also our publisher partners. So data is very important. And on that, of course, comes artificial intelligence. So there are, of course, a lot of different areas in terms of technology that we're exploring. Thank you. Next question is from Derek Lallybert, ABG. The floor is yours. Thank you. Yes, so outstanding growth in Q2 and also strong guidance here for Q3, although it is clearly lower and you are slightly low in your full year guidance. Clearly, you are talking and how much is subscriber growth because you are keeping your end of year subscriber target of 1.5 €1,000,000 while only lowering the revenue target? Thank you. Yes. I mean, as you see in the current market, for once, the Swedish krona has strengthened against more or less all other currencies. So there is definitely a negative effect that hits us in both in Q2 and in Q3. However, I cannot honestly say that this is the explanation, The main explanation to the somewhat softer Q3 is that we actually attract less people to the service. So the currency definitely has a negative effect, but it's also driven by less people. So both parts of the equation play in. And I would say Yes. Yes. I mean, if I need to weight them, I don't have a specific number. But I would say, the fewer people on the service following the very weak July is the main driver, so that's more than 50% of this. Okay. That's very clear. And then I know you mentioned a couple there, but are there any specific markets to highlight in terms of this higher churn? Yes. So I think we said before, we see this in Russia and Turkey. But those that grew really, really strong here, Russia, Turkey, India, Indonesia and other markets there. No, but I think you have to go back to the behavioral aspect of our app. It takes some time to understand how and when and where we want to use the app. And I think some of these markets are in quite a bit turmoil in terms of how people live their lives. So first, you have been in a very tough parenting situation, then that comes and that's a different type and you want to meet with your friends and family again. So I think it will stabilize over time. But I would look at countries who have been in the furthest current centers where we were a little bit more uncertain in the terms to join that. Got you. And then on the back of the KiltHub Saab acquisition. I was wondering if you could elaborate a bit on your expectations for the Middle East market now that you have this great content catalog and a strong team to drive it locally? What's kind of the status in this market in terms of adoption to audiobooks and streaming services? And what's your focus now? Will it really start to ramp up marketing spend, etcetera? Yes. I mean, at Breuttell, we always appreciate the value of a strong local team. And also, in particular, I think that the strong local leader that can really drive the local market down to Tonioli and understand what to focus on and when. And I think that's one part that we think that we acquired with this acquisition of Kitab started to have a very strong local team that also have a much better adapted app to the Arabic market. Actually, it's down historically half percent. And with this consolidated catalog of 4,000 500 titles in total, I think that we are in a very strong position to be able to seriously start to invest in the Arabic market, which we haven't really done historically, to be frank. So it's a good setup, but it will take time. And every single country there in the region in our region has its own challenges. So we hope to be able to see strong growth of this market in coming years, but it's coming from very low levels. So before that makes a meaningful contribution to the overall growth of Storetel, I think it will take 2 to 3 years, to be frank. But big hopes for that and also big hopes that the strong Arabic capital will be of great value for us in the Nordic area where we already have a lot of customers that will be willing to pay for this content. It's super exciting. And we're looking forward to this. And it's going to be fun to follow and to also get the 20 plus Kitab Saudi employees to integrate into the StoraTel company. Exciting. That's very clear. And just finally, I was wondering if you could give some sort of update on the Finnish market here. It sounds very positive with being close to profitability. Has anything changed on the market? I'm thinking about an improved position versus your main competitor. And how are things going there? Thank you. Yes. I mean, I think that what we can comment on that subscriber basis is growing. We have a good pricing level. Gross margins are coming up. And all this is leading to a situation where we break even soon and we'll be profitable. I think that's what we can say here now. It's do you have anything to add there? No, I think you asked before about when does the market become profitable. And of course, it's an equation of both the gross margin, but also, of course, the volume of customers in the market. So I think we're coming to a pretty good situation in Finland with a stable growth and a stable customer base. And the penetration of audiobooks is very similar now in Sweden, Norway, Denmark, Finland, Iceland, even higher. It's very high penetration in all the Nordic markets. And what we're placing our best on is really to see this penetration grow as much in non Nordic markets. That takes some time for us to really figure this out. But hopefully, market by market, we'll nail it and be able to deliver very strong growth as we expect in the coming 10 years. Thank you. That's very clear. And that's all from me. Thank you, Derek. Next question is from Oscar Ericsson, Carnegie. The floor is yours. Thank you. Good morning, guys. Few questions from me. First of all, regarding the Q3 guidance on subscribers and revenue, is that on the conservative side, I. E, is the improved trend in August as well as the keytabsabti acquisition fully factored in? I mean, I think historically, our forecast we did an analysis of our forecasting accuracy and looked since we started with the forecast 4 years ago and then compared it to Netflix actually, we could see that our forecasting accuracy was actually twice as good or half as bad as theirs. So on average, I think we missed the net add growth by 8%. And we intend, of course, to keep that 4th costing accuracy. We want to provide a reasonable picture. But what's different now is that the we're not really sure what's going on, on some of these markets. I think that's all really we can tell, and this is our best guess right now, to be frank. But Jurgen, you have some other thoughts there. No, I agree. I mean it's not like we try to downplay it anyway. I mean, we really try to hit this. I think you know and Jonas mentioned historically, we've been very successful with that. But we're going to keep that. But the as we said last quarter as well, when we gave the indication, the uncertainty in the marketplace following what's happening with corona and the rest of the world is still there. We don't know what the comeback will be or what's happening with the GDP development in these countries, etcetera, etcetera. So the uncertainty, I would say, is greater than ever in this forecast. Josh, specifically about Kitap Sastya and just mentioning that, that will not rock the boat. It's not the big numbers coming from that region in Q3, so that you should not expect. Got it. Very clear. And perhaps a question for Ingrid, actually. What effects have you seen from Penguin Random House withdrawing into Spanish and English language content earlier this year? Any markets that stand out that affect the positive gross margin effect, but perhaps like the higher churn? I think we the thing we're doing in the particular Spanish markets, which are the ones that you're referring to, investing heavily in content and also talking to other partners to be able to offer a great catalog with different types of categories, of course, to our customers. In terms of other figures, I haven't really seen any strong signals in any of the ways. I think we yes, so I think that's pretty much Yes. I mean if you say the English content, I think we said it multiple times, but on each single market, English content consumption by our subscribers makes up less than 10% of total consumption. So having 1 we still have an English audiobook catalog that's a couple of 100,000 titles and very strong. So that doesn't make such a huge difference to us. Understood. And on the topic of English content here, obviously, Amazon announced they're entering into Sweden earlier this week or actually last week. Do you expect any change in strategy for Audible and risk, of course, for them gaining market share? And also if you could discuss sort of the main challenges for Audible in competing with Nordics. Thank you. I think Audible typically, when they have a chance to build up a local catalog that can be exclusive, they typically want to take that chance. I think that's not possible for the Nordic markets where the investments in content have been very, very strong for many years now. I think launching in Sweden in 2020 is very different from launching in the U. S. In 1995. The streaming audiobook market is not overhyped, but very, very competitive here already. So that's for 1. And then looking at the book e commerce market, we have a couple of pretty strong local players in adlibies in bookers that's doing a good job in providing books at a low price with slim margins and doing it quickly and conveniently to people. So I think that's not a huge revolution to Nectar. But what Amazon does well and they'll do well in some markets is to build up a strong Prime catalog and sorry, a strong big number of Prime subscribers that can benefit from a couple of different things within the Amazon ecosystem. And I think that if they manage to build that up in the Nordic markets or in Sweden, for a start, I don't know. But if they do, of course, there will be a very, very strong competitor in the online space for anyone. But short term, I think we're not going to see a big effect on this. Waterfall has been on the Swedish market for a year and made some marketing already. But again, it's a very competitive market as it is. Great. And one final question for me regarding your long term financial targets, where you target 20 new markets until 2023. Could you just say something about what local hubs you expect to be the main drivers behind this expansion? I suspect you have a much stronger position now in the MENA region content wise following the Mekita and Sapi acquisition. Thank you. Thank you. Yes. So I'll just start with the MENA region. Of course, investing in Kitasalti as an acquisition is also something that provides a very strong catalog. And one has to understand that the region is built up of several different countries with different dialects and different tradition in terms of content. So we're going to explore, of course, this opportunity, including North Africa. And then as we've already stated, we're going to launch more markets in the APAC region. So that's going to be very exciting to follow-up on. And we're continuously investing several sub language groups. So those markets are, of course, very interesting for us. And we have already launched several markets in South America, and I believe that, that's also a region where we will explore much more opportunities going forward. Excellent. Thank you very much. That's it for me. Thank you. Our next question is from Halsmar Heilberg, Kepler Cheuvreux. The floor is yours. Thank you. Maybe one more question on the outlook for Q3 and maybe Q4 as well. I mean, as you said, it's kind of uncertain to Q3, but you're still keeping your full year subscriber estimate. Can you say something about what kind of do you expect if it's based on a pickup in this market where you see uncertainty? Or do you see some new markets having growth? Or what's the growth for the full year, I'd say, if you can add anything there? Yes. I'm not sure who should answer. No, but looking at the Q3, I think it's like we said, July was the last month. Then we see positive signs coming in August, and we know we have good things coming later on this fall. That's why we dare to believe that we will be able to deliver the numbers we said in the beginning of the year. And we had a good first half of the year as well. So we had a good starting point. I think that's why you can combine a somewhat softer Q3 forecast with keeping the full year target. That's what we do. And we also said that the full year target would be in the lower of the range previously communicated as well. So a very small change to that as well. Okay. Got it. And looking up on the contribution margin in the non org, it was quite strong now in Q2. If that's related to some decrease in marketing spend as you saw maybe a lower uptick in the end of the quarter? Or is that just that you're growing and improving profit in that way? Yes. I mean, partly it is like Ingrid is saying, but Finland with I mean, when you come to a certain point, when you grow the scrubber base and you grow the revenues, we very quickly could come to a positive contribution margin in the country. So it's a volumes gain that we see in many of these territories, positive. Then secondly, as you mentioned as well, our contribution margin is directly hit by marketing spend in the present quarter. We typically in the Nordic Scandinavian countries, where we have this vacation pattern where people go on leave and we usually grow much during the summer months, we usually do a lot of marketing as well as do the competition. So you need to be out there and invest heavily in these markets. I think we have not invested that much in the non Nordic markets, Part of it, I saw that some of the out of home campaigns simply were canceled because we didn't think anyone would see them in the beginning of this period. So the lower spend in marketing in the non Nordic countries brought up the contribution margin and that could then be one of the explanatory factors to the softer growth in these countries and vice versa within all the countries. So it's plausible that they are connected. Okay. Got it. And maybe a last question on these new markets where you see some lower growth. Are you changing your marketing here? Or are you doing the same as before? Or is there any reason to look that over? Or do you think it's more a temporary slowdown, let's say? I think we have strong country managers heading up our local operations in each of our markets, and they are continuously looking at the best go to market strategy. For some markets, we're working more with partnerships in growing also the brand awareness in the country. And in some countries, we have seen that once we are the first in place in terms of building really the audiobook industry. It takes different types of measures. But I think we have a very strong best practice catalog of efforts that we continuously work on, and we are pruning our digital marketing efforts all the time, having strong partnerships, of course, also on the digital side with Google and Facebook. So I think this is a mix that always is going to change slightly. And yes. Okay. And just the last question on Print Publishing, which, at least compared to my estimate, was quite strong this quarter and then also in Q1, both in terms of growth and profitability. What kind of trends do you see here? Do you think this is sustainable change in this business or some temporary that is improving the profit and growth in the print publishing? I mean, just as you mentioned, I mean, we maybe I shouldn't say this loud, but we are also positively surprised by how well our publishing companies hold up in Q2. Q1, I mean, we're really not affected by the corona because everything has already been done. But in Q2, we could see that. Looking at comparable units from print publishing business, we just declined 2% on the revenue lines in our printing business, actually growing, adding our acquisition approval of 16% in the period, so extremely strong. The gross margins are hit partly because you couldn't save all the costs you had during the period, but also save on all of marketing and other initiatives. So the profits are not hit that either. Forecasting, what will happen to this business in Q3 and Q4 is probably even more difficult than before, and we were wrong about Q2, where we thought it would be worse. So the Q2 definitely gives the color that we think that we will be able to stand up better than we expected in March, April. But where this will end, on the And we do not have any more questions at the moment. I hand the floor back to you. Good. So thank you very much for listening in, and I'm looking forward to talk to you all in 3 months from now. And keep listening. Tune in on the audiobook and just enjoy it. Thank you very much. Thank you. Thank you.