Greetings and welcome to 16 Earnings As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Hank Diamond, Senior Vice President of Investor Relations And Corporate Communications for Take 2 Interactive. Thank you, Mr. Diamond.
You may begin.
Good afternoon. Welcome and thank you for joining Take 2's conference call to discuss its results for the second quarter of fiscal year 20 16 ended September 30, 2015. Today's call will be led by Strauss Zelnick, Take2's Chairman and Chief Executive Officer, call Sladoff, our President and Lainie Goldstein, our Chief Financial Officer. We will be available to answer your questions during the Q and A session following our shared remarks. Before we begin, I'd like to remind everyone that the statements made during this call that are not historical facts are considered forward looking statements under federal securities laws.
These forward looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to us. We have no obligation to update these forward looking statements. Actual operating results may vary significantly from these forward looking statements based on a variety of factors. These important factors are described in our filings with the SEC, including the company's annual report on Form 10 K, for the fiscal year ended March 31, 2015, and Form 10 Q for the fiscal quarter ended June 30, 2015, including the risk summarized in the section entitled Risk Factors.
I'd
also like to note that unless otherwise stated, all numbers we will be discussing today are non GAAP. Please refer to our earnings release for a GAAP to non GAAP reconciliation and further explanation. Our earnings release and filings with the SEC may be obtained from our website at www.taketogains.com. And now I'll turn the call over to Strauss.
Thanks, Hank. Good afternoon, and thank you for joining us today. I'm pleased to report that during the second quarter, delivered better than expected revenue continued robust demand for Grand Theft.05 and strong growth in recurrent consumer spending. The launch of NBA 2k16 was the most successful in the history of the series with over 4,000,000 units sold in during its 1st week, including strong, digitally delivered sales, approximately doubled year over year. Excuse me, according to the MPD group, adjusting for days in market, NBA 2 cases 16 had the best launch month of any sports game during this new console cycle.
The title also has been a hit with critics and is the highest rated sports game of 2015 on Xbox 1 according to Metacritic. Virtual currency for the NBA 2K brand continues to exceed our expectations. And has been a significant contributor to revenue growth. During the second quarter recurrent consumer spending on NBA 2k grew by near 120% year over year, benefiting both from online play and the My NBA 2K companion app. With the holiday season approaching, demand for NBA 2K16 remains strong and consumer engagement has been outstanding, with more than triple the number of games played online versus last year's release.
I'd like to congratulate the teams at 2K and visual concepts for once again surpassing their high standards for excellence and delivering launch, Grand Theft Auto5 and Grand Theft Auto Online continue to exceed our expectations, particularly as the installed base of NewGen consoles expands. During the second quarter, Grand Theft Auto Online was once again the single largest contributor to recurrent consumer spending. Continues to support this vast online world with a rich array of new content. Most recently, the release of the Old Gotten Games part 2, free mode events, low riders, and the Halloween surprise. This ongoing release of new content has been a key driver player's strong engagement with Grand Theft Auto Online and has significantly enhanced for current consumer spending.
Grand Theft Auto Online now has over 8,000,000 active users per week, which is more than it had at the same time of this unique and groundbreaking entertainment experience. A variety of other titles from our diverse portfolio also contributed to our 2nd quarter results led by NBA 2K15 and offerings from the Borderlands and WWE 2K series. During the quarter, digitally delivered revenue grew 57 percent to $141,000,000, driven by better than expected growth in both full game downloads and recurrent consumer spending. Recurrent consumer spending grew 39% year over year and accounted for 20% of our net revenue in the 2nd In addition to virtual currency for Grand Theft Auto Online And NBA 2K, recurrent consumer spending was enhanced by a variety of other offerings, These included downloadable add on content, particularly for the Borderlands series, Evolve and WWE 2K15, WWE SuperCard, which was updated with new content, and NBA 2K Online, which remains the number one PC online sports title in China, and continues to generate profits spending remains a high margin growth opportunity and a key strategic focus for our organization. We expect digitally delivered revenue to grow in fiscal 20 16, driven both by higher full game downloads and recurrent consumer spending.
As a result of our outperformance in the second quarter, we're increasing our finance outlook for the full fiscal year. Our holiday season already is off to a great start, and we anticipate a strong back half to fiscal 2016. Today, Take 2's long term potential to generate revenue growth, margin expansion and returns for our shareholders is greater than ever. Our company's strength reflects our unparalleled creative assets, sound financial foundation and unwavering commitment to delivering the highest quality interactive entertainment experiences. I'll now turn the call over to Carl.
Thanks Strauss. I'd like to begin by congratulating In addition to delivering an even more true to life MBA experience, the team has done an exceptional job keeping consumers highly engaged with the title after their initial purchase. I'll now discuss our recent releases and pipeline for the remainder of fiscal 2016. On October 8, 2K and Cat Daddy Games, a extended our portfolio of action packed mobile entertainment experiences with the release of NHL Supercard. This collectible card battle game challenges players to build teams of current and in.
On October 9, 2K and Firaxis games launched Sid Meier's civilization beyond Earth Rising Tide, a massive expansion pack for the sci fi title from our award winning civilization series, which has captivated fans for nearly a quarter of a century. Rising Tide has earned rave reviews from top the content with even more strategic ways to shape humanity's future on an alien planet. On October 27, 2 K released WWE 2K16, the latest installment in our popular sports entertainment series. The title enjoyed a successful launch, including significantly higher review scores versus last year release. For example, IDN scored WWE 2K16 and 8.8 out of 10, stating that the title is as close to a fusion of performance team's strong reviews are among the best ever received by the series and reflect Yuke's and visual concepts ongoing commitment to improve its quality with each annual release.
In keeping with our focus on driving recurrent consumer spending, WWE 2K16 is being supported with a robust array of downloadable add on content and we are already seeing strong attach rates for its season pass. We've had an excellent start to the holiday season and our marketing campaigns are in full swing. Whether at physical or online retailers, we will have a significant presence at all key points of purchase. We believe that interactive entertainment will be a must have category during this holiday season, and we expect the installed base of new gen consoles to continue to grow. With our industry leading portfolio of offerings, Take 2 is well positioned to capitalize on these positive trends.
Looking ahead to our fourth quarter, on February 5th, 2K will launch Xcom 2 for PC, the sequel to the 2012 game of the year award winning strategy title, Xcom enemy unknown. Developed by Firaxis Games, Xcom 2 will feature deep replayability and offer a high level of modding support Last month, the title was featured at the 2nd annual Forrexticon event in Baltimore, with the development team hosted panels and unveiled more of the game's aliens and enemies. Consumers who prepurchase or pre order Xcom 2 will receive the resistance Warrior pack that provides increased soldier customization options. An important component of our strategy is to promote consumer engagement with our brand, and we intend to support virtually all of our upcoming titles with innovative offerings designed to drive recurrent consumer spending. We also released new content for recent titles, including additional free updates for Grand Theft Auto Online.
Turning to our online initiatives in partnership with renowned South Korean based studio XL games. The title is expected to enter Open Beta shortly, which will help to usher in its commercial set of commercial launch during the current fiscal year. In addition to Korea, we plan to bring civilization online to Taiwan, Hong Kong, Macau and China through our publishing partnerships with GameFirst and Chihoo 360. Looking ahead to next fiscal year, significant buzz is already building from Mafia III, the next installment in our successful organized crime series. Last month, the title was featured on the cover of Game Informa Magazine, which included an in-depth 12 page story that highlighted the game's key characters, evocative New Orleans settings and bold new direction for the 2K Hanger13 studio and is planned for release during fiscal 2017.
2K and Hanger13 will reveal more details about the title in the coming months. In addition, we announced today that Battle Born, our groundbreaking new first person shooter from 2K and gearbox software, the creators of Borderlands is now planned for launch on May 3, 2016. We believe that extending development by a few months will allow the team in time to fully realize their creative vision multiplayer modes, which will complement the game's cooperative story mode. Early next year, Battleborne will have an open across all platforms, for which PlayStation 4 owners will receive early access. We very much appreciate consumers' anticipation for Vital we are confident that the game will be well worth the extra weight when it launches in May.
In addition, our worldwide development teams are working on numerous unannounced projects, including new intellectual properties and offerings from our established franchises. Our robust development pipeline extends years into the and promises to captivate audiences and set new benchmarks for creative excellence. Quality remains our watchword and is the foundation years. Everything that we do is based upon this commitment, which has been and continues to be our path to long term success. I'll now turn the call over to Lainie,
Thanks, Carl, and good afternoon, everyone. Today, I'll review our results for the fiscal second quarter and then discuss our outlook for the third quarter fiscal year 2016. All of the numbers affiliation of our GAAP to non GAAP measurements. In addition, please note that starting this quarter, we are providing on our website additional details regarding the non GAAP components of our cost of goods sold and operating expenses. Starting with our results for the fiscal second quarter, Net revenue grew 169 percent to $364,900,000.
This result exceeded our outlook range of $275,000,000,000 to $325,000,000 due primarily to stronger than expected revenues from NBA 2K16 and Grand Theft Auto V. Digitally delivered revenue grew 57 percent to $141,000,000 and accounted for 39% of our total net revenue. 51% of digitally delivered revenue was derived from recurrent consumer spending, which increased 39% year over year. The largest contributor to digitally delivered revenue were Grand Theft Auto, NBA 2K and Borderlands. Cadillac sales accounted for 4.65 $800,000 of net revenue led by the Grand Theft Auto Series and NBA 2K15.
Gross margin decreased to 48% year's launch of NBA 2K and its associated licensing costs were recorded in the second quarter versus in third quarter last year. Operating expenses were $124,400,000, up by $14,000,000 due to higher marketing for MBA TK16 and increased personnel expenses. Interest and other expense was $2,600,000. Tax expense was $16,400,000. And non GAAP net income increased to $32,700,000 or $0.30 per share, up from a net loss of $35,400,000 or $0.44 per share in prior year's second quarter.
This result exceeded our outlook range of $0.05 to $0.15 per net revenue of $347,000,000 and net income of $54,700,000 or $0.55 per share. Turning to some key items from our balance sheet at September 30, 2015, as compared to June 30, 2015. Our cash and short term investments balance decreased to $1,06,000,000. This equates to net cash of $9.34 per share. Which includes the potential dilution from our convertible notes.
Repurchased approximately 954,000 shares of our common stock at an average price of $27.84 per share. Our accounts receivable balance increased to $240,900,000 and inventory increased to $24,000,000, due primarily to the launch of NBA 2k6 seen at the end of the quarter. And software development costs and licenses increased to $369,300,000, reflecting the development efforts around our pipeline of coming releases. Now I'll review our financial outlook for the third quarter fiscal year 2016, which is provided on a non GAAP basis. Starting with the third quarter, we expect net revenue to range from $400,000,000 to $450,000,000, and net income per share to range from $0.40 to $0.50.
Revenues expected to be driven primarily by Grand Theft Auto5 and Grand Theft Auto Online, NBA 2K16 and WWE 2K16. We expect gross margins in the mid-40s. Total operating expenses are expected to decrease by approximately 10% due primarily to lower marketing expense. Sally and marketing expense is expected to be about 15 percent of net revenue based on the midpoint of our outlook range. Our 3rd quarter outlook also reflects interest and other expense of approximately $2,000,000 and weighted average shares of approximately $113,000,000.
During the third quarter, we expect to record a tax benefit of approximately $20,000,000 from incentives provided to promote video game development. Excluding this benefit, our effective tax rate is expected 29%. Interest on the convertible notes, net of tax is $1,400,000, which should be added back to net income to calculate net income per share. Turning to the full year, we are raising our financial outlook to reflect our better than expected second quarter results, strong forecast for the balance of the year, and the expected tax benefit, partially offset by the impact of moving the planned launches of Battleborn to May 3, 2016, and Excom ceased to February 5 2016. We now expect to deliver net revenue of 1.325 to $1,425,000,000, and net income of $1,000,000 to $1.15 per share.
The majority of revenue is expected to come from Grand Theft Auto5 and Grand of Datto Online. NBA 2K, WWE 2K, the Borderlands Series in Xcom 2. Expect the revenue breakdown from our labels to be roughly 50% 2K and 50% Rockstar gains. We expect our geographic revenue split to be about 55 in the United States and 45% international. We expect gross margins in the upper 40s.
Total operating expenses are expected to increase by approximately 4%, driven primarily by increased personnel expense from a higher headcount at our development studios, higher research and development expense and increased depreciation expense. Selling and marketing expense is expected to be about 15 percent of net revenue based on the midpoint of our outlook range. We project interest and other expense of approximately $7,000,000, weighted average fully diluted shares of approximately $114,000,000. And our effective tax rate is expected to be 29% excluding the $20,000,000 tax benefit that we expect to record in the 3rd quarter. Interest on the convertible notes, net of tax is $5,500,000, should be added back to net income to calculate net income per share.
We expect our operations to generate cash during the second half of fiscal twenty sixteen. Our strong performance during the first experiences within a financially disciplined organization that fostered creativity and innovation. With our holiday season underway, the balance of this year promises to continue our positive momentum and further enhance our company's sound foundation for the future. Thank you. Now I'll turn the call back to Chad.
Thanks, Carl and Lainie. On behalf of our entire management team, I'd like to thank our colleagues for delivering another strong quarter for
We will now be conducting a question and answer Our first question comes from the line of Justin Post from Merrill Lynch. Please go ahead with your question.
Thank you. Strauss in the press release, you
had some comments about a big pipeline ahead or confidence in your pipeline. What can you tell us about the future? When we look at take 2 versus some of the others in the industry, we do have less visibility and we understand that's kind of the nature of the company. But what can you tell us about the pipeline and why do you feel confident about it? Thank you.
Well, we have talked about some upcoming releases. We talked about Battle Born, of course, we talked about Machia III, and we have title we've been bringing in every year, NBA 2K and WWE 2K. And of course, we have recurrent some spending in our catalog. So the market has a lot more visibility into our companies than ever before. We've also said that we expect to be profitable on an ongoing basis.
And we've been, over delivering compared to our expectations for some time pretty, pretty regularly. I hope that gives the market some confidence about our view of our business on a going forward basis. Also, since 2007, we've successfully launched 1 new hit property every year in addition to bringing back our beloved franchises over and over again. And while there's no guarantee, we'll be able to do that, it certainly is our goal to continue to launch new titles and new hits and new franchises in addition to bringing back sequels of existing franchise is today, we have, 11 titles that with 1 individual elites have sold at least 5,000,000 units. We have over 40 titles that have sold at least a couple of million units.
So it's we think it's the best collection of owned intellectual property in the business. So I guess I probably have to use the caveat pass performance is no guarantee of future success. On the other hand, our strategy speaks for itself, and while we do allow our labels to make product announcements, and our product announcements are tailored to marketing, not to analyst calls. We are very proud of our past success and we think we're well positioned going forward.
Great. And maybe one follow-up. When you do get some of these blockbuster brands back, the world will have much more digital sales as far as downloads and recurring and other opportunities. Could the margins be higher going forward as these big titles come out?
Yes, they ought to be. For a couple of reasons, recurrent consumer spending is by definition of higher margin business. The shift to digital distribution is a higher margin business. And, so those two things matter and obviously of the higher margin business. And as catalog becomes more reliable and a more important part of our business that is higher margin.
So, Lane, you talked about a margin expected in the upper 40s. That's a very significant change from what this company looked like just a few short years ago.
Our next question comes from the line of Brian Fitzgerald from Jefferies. Please go ahead with your question.
Yes, hi Tim O'Shea here for Brian. Thank you for taking my question. I'm just wondering at this point in GTA Online life cycle, when you release these big content updates like you'll gotten gains or the free mode events, what's the impact you see to player engagement spending. I'm just curious about what kind of uplift you see at this point in time. And then Strauss, in the prepared remarks, you mentioned the you had some optimistic comments just around the higher full game downloads.
I figured it's worth asking what you're seeing in terms of the percent games being downloaded and maybe where you expect that to go over time? Thanks.
The effect of new content is it increases engagement. And when we have more engagement, we have more recurrent consumer spending. I guess that stands to reason. We don't release the actual statistics around that, the actual date around that. But we do have, 8,000,000 or more active users weekly for Grand Theft Auto Online.
So it's It's continuing to outperform our expectations, and we're very gratified by those results. To your question about the percent of, purchases come through digital distribution for frontline. It could be 20 percent of our revenue. It could be a bit more than that. For catalog, it's a much higher figure for PC, it's a much higher figure.
Our next question comes from the line of Arvind Batya with Stern AG. Please go ahead with your question.
Thanks for taking my question and I'd like to add my congratulations I was wondering, if you guys could talk about some of the emerging growth areas, such as esports and virtual reality, and how you see, take to potentially benefiting from those areas down the road. And then on, WWE, the brand has been strengthening. You guys are having some early success. Wondering if you can maybe talk about how, the title has done in terms of growth versus when you first acquired this brand a couple of years ago?
Thanks, Arvin. In terms of potential areas like e sports or VR, obviously, are very different. We were an early we made an early bet on esports. We had a position in Twitch, which was sold to Amazon. It was a very small investment for us, but it was quite successful.
We have made our games available for esports competition, but that's been more a marketing experience than it has been revenue generating. We think it's a very exciting space. It remains to be seen what the nature of monetization can be for companies like ours, but it's certainly a good thing in creating another form of engagement just speaks to the robust nature of this entertainment experience. And it's just another reflection important interactive entertainment is today to consumers. I've talked about virtual reality before, where there will be virtual reality headsets hitting the market.
There will be software hitting the market. Does remain to be seen how consumers feel about that, what the nature of an interactive energy entertainment experience is in VR and how comfortable that experience is. We've said that we're involved in R&D in the space find it really fascinating, our creative folks find it fascinating. But there's not much to be said until we see how that market it. If the market develops in a way that's consistent with the kind of intellectual property we have, we expect to be there and we expect to do well in it, but I think it's too early to call.
And finally, in terms of WWE, it continues to develop well. I'd just like to make the note that the Medicare scores are significantly higher this year than last. That's gratifying because we are focused on improving the quality of the title. It seems to be doing very well certainly exceeding our expectations.
Our next question comes from the line of Eric Handler from AKM.
Thank you very much. I appreciate asking the question. A follow-up on GTA Online and correct me if I'm misstating you, Strauss. I think at the start of the year, you talked about in your expectations for GTI online that you didn't the expectation was that revenue wasn't going to grow now that we're halfway through the year, is the game sort of a stable run rate from where you were, several quarters are entering the year, or has it accelerated or declined even? And then secondly, with NBA online in China.
I'm just curious now that the new NDA season is underway, what's being done differently maybe this season in China and how that business has been growing?
Yes. I think the answer is both businesses are stable and successful. We're really not talking about changes and except to say that Grand Theft Auto Online continues perform well and continues to exceed expectations. And NBA 2K Online in China also continues to perform well. And is generating revenue and profits.
But we're not giving more detail than that.
Okay. Thank you very much.
Our next question comes from the line of Ben Schachter with Macquarie. Please go ahead with your question.
Hey, congratulations on a good quarter. Strauss, thinking about calendar 16, I assume you're not going to talk about any unannounced releases, but aside from continued hardware growth? What are the most important industry dynamics for your business next year? And then Carl, if you could just say, WWE, should we be modeling that to grow year over year for this year? Then finally, Laney, the $20,000,000 tax benefit, is that a new addition to guidance or was that already in the annual guidance given last quarter?
Thanks.
Yes. This is Strauss. In terms of the industry dynamics that really are vivid for us, I would say it's that there's when you deliver a title that excites consumers, they seem to like stay engaged, and that engagement can be monetized in recurrent consumer spending if you do it right. So we're driven by the idea of delighting consumers. And then we focus on monetization, not the other way around.
We think crucial for a high quality entertainment company. That's our compact with our consumer. There is no question though that the market is now Open minded with regard to ongoing engagement and ongoing spending even after an initial release. The second dynamic that's relevant is the shift to digital distribution, which does generate more margin dollars for us. And does mean that there's an opportunity for catalog to remain vivid even if it doesn't make sense to have discs on shelves.
So those are both good things. And then Lynn, you'll talk about taxes.
For the $20,000,000 tax on benefit as a new addition to our guidance for the third quarter and for the year.
And Ben, you also asked about WWE. It's Carl. The, obviously, the game is, I mean, we're thrilled the way WWE is year. The game is better than last year. I think both the critics and the consumers are acknowledging that.
It's really too early. We obviously haven't announced anything about how we're doing, but we're very excited about it. And WW 2k15 grew 40% over WW 2k14, and we think this is a better game. So we're obviously very hopeful and excited about this year.
Thank you. Our
next question comes from the line of Drew Crum from Stifel. Please go ahead with your question.
Okay, thanks. Good afternoon, everyone. So as it relates to Battle Born, is there a way quantify the impact to your fiscal 'sixteen guidance, moving that game out of the fiscal period? And then secondly, any updated thoughts on how you intend to address the convert that comes to in about a year here?
So our for our convert, we have a the $250,000,000 convert matures in December of 2016. So right now it doesn't make economic sense to take it out, but we'll evaluate it when it matures and see what the company's position is with our cash and what our the potential uses are for it, and we'll make a decision at that time on how we want to close out that convert. The other question on Battleborne, We don't give out specific title by title numbers in our guidance. But our guidance overall went up. We had the tax credit, as we just previously mentioned, but our second quarter did much better than we had expected.
We're also the forecast for our other title the remainder of the year is very strong and that more than offset the Battleboy moves out of the year.
Our next question comes from the line of Neil Doshi with Mizuho. Please go ahead with your question.
Hi, this is Sanfran in for Neil. A quick question with Civilization Online, as you said to, get your beta Were there any key lessons you've learned from your experience with NBA, 2k Online thus far? And you also haven't mentioned any new games in Asia besides what's in your pipeline, but, are you still actively investing in the region, or maybe titles within the region?
Yes. Obviously, there's enormous learning to be had in our experience with NBA 2K Online in China, but I'm not sure I could capture it in a few short sentences on this call, we had no experience in massive multiplayer, no experience in China and no experience free to play before we launch that title now, we have a great deal of experience and we developed it in partnership with a phenomenal company, $0.10. So I would hope that we would apply all of that learning to the launch of of civilization online. And, we are feeling pretty good about it as we head into an open beta remains to be seen, but it is looking pretty good. In terms of our commitment to Asia, it remains very strong.
It's a growth area. And what's exciting about it is businesses, which may be not that interesting in the U. S, for example, massive multiplayer games, a very tough, very competitive, very expensive business in the U. S. Can be very interesting opportunities in Asia, which is why we're pursuing them over there.
And then with success, we do have the opportunity to bring those around the rest of the world potentially even including the U. S. So we think the strategy remains sensible. We've done exceedingly well throughout Asia since we opened our headquarters in Singapore numbers years ago.
Okay, great. And just one final question. Do you have an update on what looks interesting to you now in the M and A market, especially in light of the King acquisition?
We're in the same position, which is we have a significant amount cash. We've got a very strong balance sheet. So in addition to returning capital to shareholders, and we just did that, we just bought back 1,000,000 shares of stock on what now in today's market, looks like favorable terms. We have the ability to support organic growth, which has really been the story around here. We've grown very significantly organically.
And of course, we can support inorganic growth as well to the extent that we maintain our discipline and we focus on accretion, to shareholder value. And we're very focused on accretion. So there's no updates of the strategy. The strategy remains the same. We remain open minded, on the one hand and discipline on the other.
Great. Thank
Our next question comes from the line of Mike Hickey with Benchmark Company.
Great job on another quarter. Congratulations. The, I'm curious on the 8,000,000 weekly players for GTA Online Strauss. How that split between prior and current gen with, I guess, the backdrop that Rockstar has stopped updating the prior gen experience. And so I guess I'm sort of wondering In addition to that question, if you anticipate an uplift of TTA5 sales over the holiday, as perhaps online players transition to current gen, I have a follow-up.
Yes, we're not giving more detail, except to say that the title of GTA5 Inge Town line continues to do well and continues to exceed our expectations.
All right, fair enough. The, it's worth a shot. Maybe problematic as a question as well. But curious, looking at Rockstar North, I think the same article that said $8,000,000 weekly that came out maybe a month or 2 ago, said that there was a fair amount of resources, maybe the majority of Rockstar North was still working on the development of the ongoing development of content GTA online. So I'm curious if you can give us any sort of perspective of the amount of resources from Rockstar that you continue to devote to the ongoing development of that game?
Mike, we don't comment on allocation of any of our resources.
Thank Ladies and gentlemen, we have no further questions in queue at this time. I would like to turn the floor back over to management for closing comments.
We're pleased that we had another great quarter. Creative, the most innovative and the most efficient company in our business. And our results are driven, 1st and foremost, by the creativity of, thousands developers who, who we're lucky to have here in the shop and by the many people who support those active to make sure that we do a great job marketing and distributing their titles and also running our business day to day. So once again, thanks to our colleagues, Thanks for our shareholders and thanks to those who joined the call today. We appreciate it.
Thank you, ladies and gentlemen. This does conclude our teleconference for today. You may now disconnect your lines at