Earnings Call: Q4 2018

Mar 27, 2019

Ladies and gentlemen, welcome to the results conference of CD Projekt Group. In a moment, we are going to discuss 2018 financial results. We are going to talk about the most important event. My name is Adam Kiciński, and together with me, traditionally, Piotr Nielubowicz. Let's start with sum up of the most important events. First of all, Cyberpunk, a game that we've been developing for quite some time now, the biggest project in CD Projekt history, a huge milestone in our development. A game presented to the general public last year for the first time at E3 in L.A. in June. Shortly before the first, we published a trailer, then the game was shown in Cologne gamescom in August. After the first, we published the whole trailer on YouTube. The reception of Cyberpunk has been really good. It did meet our expectations. We are very much excited by how players responded to the game. At E3, the game was awarded with more than 100 awards. A few figures about what we've achieved on both fairs. We showed the game behind closed door at hourly presentations to 3,000 people from the industry influencers, the media. A total reach, YouTubers and streamers who saw it is 250 million. This is how many subscribers they have and followers they have. Both videos that we published at the occasion of the fair attracted 50 million views. We are talking about all channels on all continents. Digging a bit deeper, we compared Cyberpunk and The Witcher 3. What you see here, we've already shown this before. It's a comparison of viewership on our YouTube channel over the first three weeks of the six most viewed video content, The Witcher 3 and three videos for Cyberpunk. The beginning of the campaign has been very promising. Most of the campaigns are still ahead of us. Last year, we also intensified our work on Gwent. It underwent the last phase of changes, Homecoming, as we call it. As a result of the changes, we decided to launch the game in Q4 last year. Thus, we ended a beta test phase. The game is now in the final shape, which is not to say we're not going to change it. It's a living product, but now we are focusing on making sure that we add new things instead of changing what's there. We moved to games as a service mode. I'll talk about it more in the next part of the presentation. Apart from Gwent, we launched Thronebreaker, it's a game that was supposed to be an extra for Gwent but it evolved towards a standalone project. It was launched also in Q4 last year. We launched it on four platforms, two for PCs and both consoles. The most important objective has been met. Yet another CD Projekt game of very high quality. We need to remember that in the case of smaller games, because Thronebreaker is not as big as any Witcher, so achieving meta score 85 by 100 is a great achievement, which makes us very proud and satisfied. This is yet another product included in our catalog, three Witchers plus Thronebreaker in digital distribution. The Witcher 1 has been selling really well. Most of the sales is generated by The Witcher 3, of course, but each title added to the catalog of games that we sell quarter on quarter has been supporting our results positively. Since we are talking about the results, over to Piotr. Today, we published an annual report of CD Projekt Group, and I'd like to start discussing it with profit and loss account. Revenues from sales of products and services. The group generated more than PLN 236 million sales. The CD Projekt RED was responsible for vast amount of this figure. The Witcher 3 was responsible for it, GWENT as well as Thronebreaker mentioned by Adam. Red bars, Q1, very important. The share of Q4 in the whole year was better than last year. Percentage distribution is represented by a yellow line. As we started selling full version of GWENT as well as Thronebreaker, we started calculating expenses, which are presented here as cost of products and services sold. The total is PLN 12.7 million. These products will be settled in two ways. For GWENT, we will be including it in costs over 37 months in a linear way. As regards Thronebreaker, we are planning to capture these expenses for three years from the launch, proportionally to the expected future sales. The estimates of future sales have been made based on our historical titles. Already in 2018, we included in costs some 40% of development expenses for Thronebreaker. The second part of revenues from sales of goods and materials. In total, it was PLN 126 million. A vast part of it was generated by GOG, due to sales of our own products as well as products of third-party suppliers and GOG.com service. Products coming from external suppliers, the distribution of the sales is presented on this slide. We presented the slide excluding sales of our own products, which have their launches, which distort the standard distribution. It's presented in dollars, where we have the most transactions to clean it from exchange rate differences. As you can see, subject to seasonality, GOG has been successively growing year-over-year and selling more and more. Coming back to profit and loss account. Gross profit from sales in 2018 exceeded quarter million PLN. At the same time, we were incurring selling costs and operating costs. Selling costs were lower than last year, PLN 107 million. The biggest share includes here costs related to promotion of our products. Leading product involved GWENT. We are not yet showing revenues from sale of Cyberpunk, but we are including expenses of promotion, participation in first in L.A. or in Cologne in Germany last year. Of course, selling costs include also expenses on the promotion of Thronebreaker. General and administrative costs slightly increased in 2018 year-over-year, that's the result of increased scale of activity, increased headcount, and the fact that we've been doing more and more. Financial revenues, we've generated better results year-over-year, mainly due to the fact that last year we had negative exchange rate differences, which haven't been as strong this year. Income tax. The result of the group was charged by PLN 40 million, that's a value which is lower than in the previous years, thanks to the possibility of using research and development discount. This positive effect is visible in the calculation of the current tax as well as deferred tax. All in all, net profit of the group in 2018 is more than PLN 109 million. This means that net profitability of our sales exceeded 30%. It is slightly lower year-over-year. Looking at all revenues from sales of own products and goods from external suppliers. After deducting all expenses and taxes, one third of revenues from sales is our profit after tax. Balance sheet, fixed asset. The biggest item involves expenditures on development projects. They grew by PLN 100 million over a year. Individual operations groups look as follows for last year. 2018 was started with PLN 133 million of R&D expenses. During that year, we spent PLN 112 million on work realized during that year. The value of completed projects related to "Thronebreaker", more than PLN 76 million, this was rolled over from R&D expenses in progress to expenditures on finished projects. Of that amount, PLN 12.5 million was discounted. All in all, the balance was PLN 178 million expenses on unfinished projects and PLN 65 million were completed projects. Moving on to the balance sheet. A new item that appeared in our asset is real estate. Last year, at the end, we bought a plot of land neighboring our current seat alongside an office building standing there. The building gives us the possibility of developing some 3,000 new sq m of office space where we will be able to develop our current activity. 3,000 sq m, that is slightly less than half of the current seat in Warsaw of our company. Probably we will be able to provide 250 new jobs for CD Projekt RED and GOG. As regards other fixed assets, this value comprises two biggest groups. First of all, the value of the company, which accounts for half of this amount revealed historically when CD Projekt was published on the stock exchange. It also grew in 2018 as a consequence of procurement of the Wrocław Studio from SNT. The studio became the start of our presence in Wrocław, where we are executing development work. Another big part of fixed assets and other non-material assets, intangible assets, which have been on the increase. Trade receivables. Their value at the end of 2018 was slightly lower than last year, mainly as a result of changed proportion of revenues at the end of the quarter. A longer cycle of receivables rotation at CD Projekt RED, less sales of CD Projekt RED, and a shorter rotation cycle at GOG.com, which has a shorter cycle of receivables increased. Total value of trade receivables at the end of the year is lower. As regards the next item, GOG.com is responsible mainly for this value, and it represents purchased minimum guarantees, the rights to distribution of games in the service. It increased by PLN 7 million, this amount shows you, among others, the impact of agreement with Blizzard, based on which we issued a cult Diablo Part One, soon we will have the pleasure of offering the first and second part of Warcraft. The largest item on the balance sheet, cash and bank deposits, that went up in 2018 by slightly below PLN 11 million, which I am going to discuss in cash flow more extensively. As to our own equity, we exceeded the symbolic value of PLN 1 billion, mainly because of retained profits from a given period. When talking about trade liabilities, this is in stark contrast to trade receivables because of growing impact of GOG and GOG liabilities related to royalties generated on sales from Q4 that are characterized by a longer cycle than other liabilities. This went up translating into overall trade liabilities for the group. When discussing other liabilities, we can see an increase by PLN 33 million. Some two-thirds of that total are advance payments received by CD Projekt RED from the contract signed last year for royalties on our future licensing agreements. Other provisions include a series of provisions made for salaries dependent on the results. These provisions are proportional to the results achieved, meaning the total in 2018 is lower than the one presented at the end of 2017. The total equity and liabilities over 2018 went up too, for the first time ever exceeding PLN 1 billion, just as is the case for capital. Coming to cash flows for 2018. We opened the year with cash and deposits balance at slightly below PLN 650 million in the cash outlook. Out of that, we finance R&D expenditures on the production of games such as GWENT, Cyberpunk, and Thronebreaker at some PLN 98 million. We also invested in non-material assets at some PLN 23 million. The operating flows generated was positive at a level of over PLN 132 million, meaning that with record high production of new titles and investments in company development as well as implementation of various projects in that regard, we have not yet bitten into the reserves so far. To the contrary, we increased the total of cash and deposits by over PLN 11 million. Taking advantage of this occasion, let me also summarize the past four years since The Witcher release and the continued sales generated for The Witcher 3, which continues to remain on a high level. Looking at volumes, at the point of release, over 70% of sales was of the boxed versions, physical distribution, with some 30% attributed to digital distribution. The digital distribution segment has been growing over the years. Last year, 80% of items, The Witcher 3 copies sold last year were sold in digital distribution. When talking about the split across platforms at the point of release, PCs were responsible for around 30%, in 2018, that figure was already around 50%. This is it from me. Adam, if you could now take the floor again. Now a few words about our plans for the remaining part of this year. First of all, just like I said already, GWENT transformed into the games as a service. We are treating the game as a service rendered. So far, until the end of last year, most of the GWENT team was dealing with development of GWENT and its subsequent versions. Starting at the beginning of this year or the end of last year, the whole 100-strong team is dedicated solely to developing GWENT as a service. Meaning we are and will continue to release new updates and functionalities each month. Starting early this year, we've already had eight of these updates with varied scopes, meaning there has been one almost each week. Several times a year, we're also going to release major add-ons. The first one is going to be released tomorrow and is called Crimson Curse. Let us watch the trailer now. We've awaited this far too long. Hunted by those who live in comfort and opulence. No more. The Crimson Curse is unleashed this day. Our one-time hunters now become our prey. There's one more thing for GWENT. Yes, this is it. I'm proud to announce mobile GWENT release, the first one coming this year for iPhones, but we're also planning a release for Android phones to follow. We are really excited about GWENT getting to handheld devices as obviously, it's a brilliant game to play in front of a big screen, but that is a session you have to plan for. So far, the players had not been able to play GWENT whenever they have a moment. Late this year, they are going to start receiving this opportunity for more and more devices. The last thing we have prepared for today is our invitation to E3. Last year's E3 has been the most important one so far throughout the whole CD Projekt's history. This year's one is going to be the most important one ever for us, too. We have really prepared a strong show, so if you are able to come to L.A. in June this year, please feel invited to visit our booth. If you are not able to, you can follow our online channels. Thank you so much, and feel free to ask questions. We have microphones available, so should any of you be willing to ask a question? Good morning. What is the schedule of construction of your new building in Jagiellońska Street? Well, we'd like to move very fast. We're not sure if we're able to do that, though. This transaction was finalized on the 31st of December last year. Some of the space has already been released to us. We are waiting for the release of the remaining part. We're working on a concept. This should take us a few months. Later on, we will be applying for all the necessary permits and authorizations. We will be initiating the actual works. I'm not sure if it should happen very quickly, but we would like to have it as soon as possible to start producing there. We have the first employees working there already in these spaces that we received because there is an actual building there and it's functional. We want to revitalize it like the other buildings we're working at. Does this mean you're going to have 250 employees more than right now? Well, that's the target and the total volume of the building. This is not the end of our capacity. This is an additional pool. The office complex where we're renting 6,500 sq m has a further capacity available too, but with this real property of our own directly attached to the current office complex, there is a direct connection there. It gives us several thousand sq m on top of what we're renting already. This growth, is it considered with Cyberpunk in mind or the next production? Well, mainly next productions, because the CP team is not going to grow that much anymore. As a company, we are going to grow indeed. In our industry, creative capacities are in direct proportion to the team sizes, because it's people doing and creating what we're selling. We don't plan to stop at a certain level. Aren't you finding hiring new recruits difficult? Well, it's tough to say. It's always a struggle to seek new talent, but we've been doing that for as long as we've been around, and we're pretty good at it. We have an experienced recruitment team. We have a well-developed HR department, and we're doing it. We continue to grow at a stable rate of more than 100 people a year, and we don't want to slow down. What should we expect to see in the trade fairs? Huge events like last year? Well, like I said, we want this E3 to be even stronger than the last year's one. Mr. Bieszyński, let me ask a different question now. Are your expectations as to profit margins, sales margins on CP changed because of the last earthquake in the realm of digital sales of games, or are they the same as last year? Well, changes to digital distribution help creators get a few percentage points more out of the retail price paid by the customers, but that's just a few percentage points. What influences our margins much more is the expected volume of sales. That's the thing we are fighting for. The more participation we get in the retail price, the easier we will find to generate revenues, but actually sales volume is fundamental. Your strategy also stated that you want to move beyond gaming only with your IP, that you wanted to move not only in the gaming culture but stretch beyond. Have you implemented any activities in that regard? Yes. We have these projects underway, but we are proceeding with a high degree of reflection rather than caution. We don't want to be too scattered around. Our core business is games. We are very much focused on that, but we are developing a portfolio of merchandising products based on The Witcher, and the same is going to be true for CP. At the end of last year, we registered a company to operate our brand. It's a relatively low level of business as compared to our core business, but its aim is to put some order to products branded with The Witcher or Cyberpunk licenses. It's merely a step into the future. Next question. Recently, your CEO confirmed you want to release yet another game until the year 2020. When was this project launched? Is it underway? Yes, the project is underway, and we are planning to do just that. Our strategy has been announced 3 years ago, and we continue to reevaluate the situation, aiming at products that are going to meet the gamers' expectations or go beyond gamers' expectations and generate sound business for us. The efforts are underway. These plans are still valid, but please do not draw conclusions as to what kind of game this is going to be just yet. I wanted to comment on this last question. Are we discussing a totally new game, or are you considering reviving an old one? Porting an old one? No, definitely it's not going to be a project to port an old game. We are discussing new content. It's too early, though, to go into details just now. In terms of communications, we are very conscious in focusing on Cyberpunk only. This is obvious. We want the whole world to listen just about what Cyberpunk is or what it is going to be, because then it translates into hype and sales. Any sort of scattered communications is counterproductive from the business point of view. We are doing a lot of things we don't communicate. I'm not saying another Cyberpunk product is or is not being developed. It's just that there are a few things we're not discussing just yet because the time is not ripe. Another question relates to the split of revenue from GWENT and Thronebreaker. What was the split in Q4? GWENT generated higher revenues for the Group than Thronebreaker. Is that a significant difference in these levels? Yes. GWENT is a larger production than Thronebreaker, but we have not publicized details on that, and we usually do not publicize such detailed data at CD Projekt. If we could get back to this slide with development outlays. Only need to click a few times. Okay. PLN 76.5 million. That's GWENT plus Thronebreaker, PLN 12, that's already depreciated level. PLN 178 million, in fact of expenses on new productions, new projects. Mainly Cyberpunk. That's the biggest chunk of this amount. Thank you. I wanted to ask about Cyberpunk. 400 people are working on it. How many are working on the next production from the strategy? One order of magnitude less. Do you agree with the assumption that E3 are a good moment to announce the launch of the game? Yes, we agree with this assumption. E3 fairs in the industry of developers of big games are the best moments for big announcements of big launches during the year. It doesn't change. Will anyone accompany you? Some pop artist at E3? We prepared some surprises for E3, but no, it's not going to be any pop artist. Now down to earth topic. You have a dispute with Mr. Sapkowski and what is the stage of this dispute? Will it end with a settlement? We can't comment on that. Once we've arrived at a point where we are ready to communicate this, we will do so. For obvious reasons, until the topic is ongoing and unclosed, we can't comment on it. Last question. Cash level has been increasing in spite of production expenses. What do you think about sharing accumulated profit, distributing accumulated profit? We can share. The dividend paid out two years ago wasn't big, generally we have nothing against dividends, but we don't have a dividend-focused policy. We're convinced that this is not a good point in time to think about dividends because we are ahead of a lot of expenses and intensive work. Dividend should be like an award after a big success and not ahead of a success. That's my view and simply it's a dividend policy that we don't have. I have nothing to add here. Cyberpunk launch is the most important thing for us right now. Kacper Koproń. Two questions. One financial, the other one more strategic. The first one, expenses on R&D. They slowed down in August to PLN 18 million vis-à-vis Q1 and Q3. Why? Is it a reference level for the next year? Question two. Probably you're following Apex Legends success, and the strategic question is whether there are any strategic elements in the game that could be used in Cyberpunk. I'm not talking about Royale, but about location and figures, the system of figures that was presented during Cyberpunk trailer. As regards R&D expenditures and the distribution last year, Q2 and 3 were of higher value because of preparations for fairs, E3 and gamescom in August. That's why it was more intense. Q4, you could probably say it was more calm in those terms. Whether it's a good level for the future, in a way, yes, but this value is never constant. First of all, we employ more and more people, the expenditures have been growing successively. The closer we are to launches or big events, the more intensively we work. As we close to a launch, expenditures grow. You could see this before GWENT launch last year, related location. It's grouped in a short period of several quarters, and the expenditures are high because each game is big. We translate it into several language, so you can see this, it's reflected in expenditures. The answer to the second question is sort of bypassing that developers who work for us, they play almost any game, and we analyze other games as well. To tell you the truth, I know of no such details. That's the truth. Cyberpunk is quite advanced. Plus, it is in our DNA. It's not our first response to draw on other productions. Of course, inspiration is important, I don't know what is the case here. Cyberpunk is really very much advanced, it might be too late. Albert Rokicki, Longterm. My colleague actually asked the question about multiplayer, because I wanted to ask you how you perceived what Epic Games did with Fortnite. Is it a threat to you as producer of AAA games? Maybe in the future, you will like this format? It's not that we don't like free-to-play. Gwent is in this format. Each format has its own users. Each business model has its users. free-to-play have been doing really well. Some games match this model well as well. Our single-player games do not match this model. We believe that our offer for players is and will be attractive. What we have to offer is a very concrete entertainment, and we are not competing directly with such games. Well, they say Fortnite has extended the number of players, and that's probably true. In this context, it's good news for us. Like I said, it's a very different kind of entertainment. We offer something different. Is it possible for Cyberpunk to be cross-generation? Will it be available on new generation consoles? Yes, absolutely. We already have such a plan. We already said publicly that our technology was developed thinking about new generation. Well, the generation hasn't been announced yet, but REDengine has been developed from scratch to make sure that it can be developed from generation to generation. As a result, if there's an opportunity for us to launch Cyberpunk for another generation, we would want to do this probably. Another question. We've heard that as regards new generation, the price will be increased for AAA from PLN 60 to PLN 80 even. Do you know anything about this? No, we don't know anything about that. I wanted to ask you another question about this new upcoming project. You said the team is an order of magnitude smaller than the Cyberpunk team. For how long have they been working on this project? Well, it depends on how you define it. Conceptual. Well, no, I don't really want to get into details. Well, the stage at which the spending is substantial already. Well, the spending is not substantial yet as compared to Cyberpunk. Please do not draw unproven conclusions. It doesn't have to be a game comparable to Cyberpunk or The Witcher 3. The cost doesn't have to be comparable. Yes, but let's say that the employment level is 90 to 10, then what's the spending? No, we're not planning team size to match Cyberpunk. Our concept is different, even though the quality is going to remain stellar. There is no doubt to that. All right. Thank you. Hello, Przemek Gdański. What are your marketing plans for the U.S. market? Are you going to go higher than for The Witcher 3? You're talking about Cyberpunk. Yes, indeed. We plan a larger campaign for Cyberpunk, both for the U.S. and all other territories this game is going to be released in. On all accounts, this is to be the largest title ever for us, also in terms of marketing budgets. Another question. What are your plans for further development of your California studio branch, and are they going to hold development business there? No, it's strictly business subsidiary there. We don't develop games there. We have game development in Vancouver, though. They are working together with the Wrocław team, while California only has business marketing support and GOG support to an extent. Hello. Filip Klejwicz. I wanted to ask about Gwent and the first updates starting this year. With these updates, have you seen significant KPI increases? Well, we have never publicized detailed KPIs, but yes, we do see increased sentiment and response to Gwent. For some time you have been taking pre-orders for stock cards. The package costs some PLN 150. Could you please tell us more about the interest levels you are receiving for these pre-orders? Are you going to launch these pre-order campaigns more times a year? Well, we are getting really nice interest levels. We are very happy with that. We have some targets set forth before that launch. These are hard to measure, though, because the launch has not yet happened. For the first few weeks, the figures have been matching our expectations. Are we going to do that more often? That's the plan, to release these packages several times a year because it's a really good promotion, and today actually is the very last day For you to purchase these promotional packs to go with the tomorrow's release. The last question as to esports and Gwent. Before, you used to say it's too low a scale, but recently you held GWENT Open and there is this GWENT Masters event planned to be a culmination for all those last year's tournament. What's the date? We have not announced any specific dates yet. The last tournament has just finished, and we want be aware that what we've been doing for esports Gwent tournaments serves more as a community-building exercise promoting playing Gwent as such, That's the concept we want to follow in the future, too. Just like described in the various stages leading up to the final. As to the cash sitting in your accounts, I understand you want to finance Cyberpunk marketing activities with your own resources. Well, much of that marketing is going to be pre-financed by final distributors and then discounted from our royalties, quite similarly to what was in place for The Witcher 3, even though the market is in a different place, as the digital distribution share is going to be much higher even than in Witcher 1, and brick-and-mortar distributors have no profits on games sold via digital distributions, which is why they limit their marketing budgets, as they don't want to finance our sales through online channels, which is only to be expected. They will continue to contribute visibly when talking about pre-financing of campaigns because later on, it will be discounted one to one from our royalties, but we don't have to spend the money outright. Hello, Tomasz Szodek. I wanted to ask about new distribution channels and their impact on your business. Here, I mean the streaming platforms, for instance, that have been announced recently by Google, let's say. Wouldn't a subscription service be a burden on your margins? Well, actually, any distribution channel extending our ways of approaching gamers is a good thing to us. We create content, so any method that helps our demanding content reach the players, and each idea that helps us reach more and more players with these games is very good. Well, we don't know much yet about the subscription model, though. It's difficult to comment on it, we are optimistic when talking about those recent announcements because, for us, it's an opportunity to further grow our customers base. We are talking with Google. Obviously, we are, but it's too early to be discussing specific business models. Another question related to GOG. It seems that GOG results on the operating results level are mediocre to poor because the year was finalized with a loss for them. Why is that? Do you see impact of these market trends, like shrinking distribution fees? Is this a reason for this poor GOG performance? No. When talking about last year's results, the market changes didn't yet have a chance to translate into GOG operations, the GOG was mainly affected in the first half of the year. That was the negative currency exchange rates, and then participation in Gwent that remained on the Homecoming stage for most part of the year, thus limiting the revenue component of this project. Another factor we are not discussing all that strongly, last year, actually, GOG put in a lot of energy working on new technologies to support the web store. These are attributable to development efforts, this also engages GOG staff, also inflating the general management and administrative cost for this team. While we have not yet seen positive results from that, I hope we will be able to do that and to publicize that soon. I have two questions. The first is related to Gwent. Are you even considering, in your games as a service model, to include a monthly subscription model when the mobile version is launched already? These models are out there already. We don't have much data about how they function, apart from purchasing these kegs, there are monthly subscription offers out there with paying an X sum, which sounds horrendous recalculated into Polish zlotys and local purchasing power, but it's like $40 a month. Are you also considering this premium option for your users? It seems not as fair to other players, because the gamers paying quite a lot each month get preferential conditions. As a principle, we are really focused on our business models and our offer for the players to be fair, because it's an absolute foundation of our philosophy and strategy. We are considering multiple options, though. The ultimate content of our games and the business models implemented is just a piece of what we're considering. It's a non-answer of sorts that we're considering everything and anything because only some of these considerations lead to further commercialization. I'm not going to be able to tell you more as for now. Konrad Krasuski, Bloomberg News. I have one question. I take it we are close to Cyberpunk launch. We will not say exactly when it's going to happen. We're waiting for L.A., but this would imply that part of the team of Cyberpunk will be released. Well, there are going to be updates. Will they be working on a new AAA game? How fast will it happen? Will it accelerate the project? During the last conference, the CEO said that you weren't satisfied with the quality of Cyberpunk product. What about now, percentage-wise? We are not thoroughly satisfied yet because the game has been acquiring top quality or acquires top quality at the very end, we're not there yet. In terms of our idea and effective transfer of team after Cyberpunk has been finished, well, we have a certain idea, but it's not related to a single game only. I can't talk about this right now because I would have to tell you about all the ideas that we have after Cyberpunk. Some of them are in the pipeline more or less, we attach a lot of attention to making sure that after Cyberpunk is finished, transfer to new projects should be natural and Well, people should be able to work effectively. It's important from the company's point of view, but it's also important for them not to wait too long before they start working creatively. We have an idea behind it. We are working on it and thinking about it a lot. The plan is there. Paweł Jędrzycki. One more time. I have one more question. Mobile Gwent that you announced. Is it what you announced with setting up Spokko? They have an idea for a project. Is this the idea? No. Are there any other questions? In the back? No, no questions after all. Thank you so much, ladies and gentlemen. After the first quarter, you're invited to a teleconference and then E3 on the 11th of June in L.A. Thank you so much.