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Good morning. My name is Juan, and I will be your conference operator today. At this time, I would like to welcome everyone to the America Movil Fourth Quarter 2021 Conference Call and Webcast. [Operator Instructions] Now I will turn the call to Ms. Daniela Lecuona, Head of Investor Relations. Please, Mr. Daniela, go ahead.
Thank you. Good morning, everyone. Thanks for joining us today to discuss our fourth quarter operating and financial results. We have on the line Mr. Daniel Hajj, CEO; Mr. Carlos Garcia Moreno, CFO; and Mr. Oscar Von Hauske, COO.
Thank you, Daniela. Good morning, everyone. Carlos is going to make a summary of the fourth quarter results, please.
Thank you, Daniel. Good morning, everyone. Throughout the fourth quarter, concerns about the rise in inflation rates across the board kept financial markets alert about the policy implications with 10-year treasury yields moving around in a relatively wide band, 35 basis points, but ending the quarter very much where they had started, at about 1.50%. Notwithstanding the volatility in interest rates, equity markets continued to advance, with the S&P 500 delivering a 10% increase in the quarter. And in our region of operation the Mexican peso, the Colombian peso and the Chilean peso, all experienced bouts of volatility in second half of November, with the former recovering fully by the end of the year and the other ones depreciating further. In the fourth quarter, we added 4.8 million wireless subscribers, including 2.2 million postpaid clients and 2.5 million prepaid subs. Brazil contributed approximately half of our postpaid additions, followed by Colombia with 357,000 and Austria and Peru with close to 200,000 each. As in the prior quarter, Mexico provided most of the new prepaid clients, 1.2 million, with Colombia contributing 349,000 clients and Central America and Argentina approximately 300,000 each. Fourth quarter revenue totaled MXN 227 billion, a 7.7% year-on-year increase, with service revenue expanding 5.4% to MXN 180 billion. The consolidated figures mentioned above and those that will be referenced later exclude TracFone as it has been deemed to be a discontinued operation. They also exclude Argentina, as we have done for several quarters, given the accounting inflation held in the country. At constant exchange rates, service revenue growth came in at 4.4%, a fairly similar rate to the 4.6% one posted the prior quarter. The Mexican peso appreciated versus most other currencies in our region of operation on an annual basis and depreciated slightly, 1% versus the U.S. dollar.
The pace of growth of mobile service revenue stayed roughly constant in the quarter, at 6.9%, while that of fixed line service revenue declined relative to that of the prior quarter to 0.5%. On the mobile platform, postpaid revenue expanded 5.9%, practically at the same pace as in the previous quarter, while prepaid revenue growth accelerated to 8.7%. Several operations including Peru, Puerto Rico, Eastern Europe, Dominican Republic, Mexico, and Brazil experienced brisk mobile service revenue growth between 8% and 12%, with Austria posting a 7% increase. On the fixed line platform, revenue growth from corporate networks accelerated to 6.8% and that from broadband services slowed down to 4%. Both continued the trends followed throughout the year. Fixed line voice revenue growth continued to decline, although at a slower pace than seen previously, whereas PayTV revenue kept on declining roughly at the same rhythm as it had in prior quarters. Our Eastern European operations and Peru observed the fastest revenue growth in fixed line services with 13% and 11%, respectively. They were followed by Colombia and the Dominican Republic with 7% and 6%. The decline in Puerto Rico's revenue was due to its suspension of funding provided by the Department of Treasury with the pandemic. Within fixed line services, broadband revenue climbed 19% and 17% in the Dominican Republic and Peru, with Ecuador, Puerto Rico, Eastern Europe and Central America, all positive revenue growth of between 6% and 9%.
EBITDA came in at MXN 89.8 billion in the fourth quarter. This figure reflects one-off items including the impact of the sale of towers by Telmex. Our adjusted EBITDA was up 7.7% year-on-year, slightly more than the 7.2% increase observed in the third quarter. The Dominican Republic, Central America and Europe exhibited the fastest pace of EBITDA growth at 12.4%, 11% and 9.7%, respectively, with Mexico and Colombia posting 8% growth rates and Nicaragua 7.2%. Practically, all the operations saw increases in their margin.
Our adjusted operating profit reached MXN 41 billion and was up 20% in Mexican peso terms and 15% at constant exchange rates. It helped generate, after accounting for MXN 19 billion in comprehensive financing costs, a net profit from continuing operations of MXN 23 billion. The net profit obtained through both the operation of TracFone until its sale on November and the sale itself is booked under the line item of Net Income from Discontinued Operations. It totaled MXN 113 billion. Together with the net income of our continuing operations, it resulted in a net profit of MXN 136 billion in the fourth quarter. For the full year 2021, our net income stood at MXN 196 billion, more than 4 times larger than the one observed the prior year. In 2021, our operating cash flow and the proceeds from the sale of TracFone, net from Mexican taxes paid in December, allowed us to fund MXN 170 billion of capital expenditure, MXN 65 billion in net shareholder distributions and to reduce our net debt by MXN 128 billion in flow terms. Excluding leases, our net debt ended the year at MXN 400 billion, a MXN 137 billion reduction from the level outstanding at the end of 2020. Net debt excluding leases was equivalent to 1.23x EBITDA after leases at the close of ’21, EBITDAaL. In our net debt calculation, we're considering as cash equivalent, under securities available for sale, stock received from Verizon as part of the payment for TracFone. At the end of the year, the value of the Verizon stock was MXN 62 billion, also booked under the same line item is the KPN stock we own valued at MXN 56 billion. So with this summary, we'd like to pass the floor back to Daniel for Q&A.
Thank you, Carlos. We can start the Q&A.
[Operator Instructions] And your first question comes from Leonardo Olmos from UBS.
My first question is related to 5G CapEx specifically about the spectrum auction that we're already booking in 2021 as far as I understood. Can you disclose a bit the breakdown between the spectrum auctions that you both see in 2021? And please confirm if the total amount was $1.1 billion?
Yes. On the CapEx of 2021 on the spectrum CapEx, I don't remember exactly, but it was around $800 million in Brazil and then some more in Mexico, a little bit more on Peru. But yes, it's around $1.1 billion on spectrum that we have in 2021, mostly was on Brazil $800 million.
Crystal clear. And my follow-up question, also on 5G. Can you discuss what do you expect for 2022, ‘23? You don’t need to be specific on numbers, but mostly what countries do you expect to deploy, what pace, what overall spectrum options that you are expecting for this year?
I think we mostly have spectrum in all the countries in Latin America. We expect to launch, I can tell you, in 90% of the places where we operate in 2022. The CapEx that we're going to spend in 5G, as we told in previous calls, we have been investing in virtualization, we have been investing in a lot of -- in fiber to the node, virtualization, and we're not going to put any more CapEx of what we planned this year, $8 billion, and it's 5G included, and we're going to launch 90% of the country.
So all overall, I can tell you that, that's more or less what we have. And it's going to be all around this year. I don't have a specific date -- but it's all over the year where we're going to launch. We hope we can do it in the first semester of this year, mostly. Colombia is the only one that we don't have a spectrum. And we hope that the government would speed up that option. And I think it's important to have 5G all the countries where we operate. We’re ready. We have been doing investments in Colombia also with the fiber to the node, fiber to the cell site, virtualize the network, the switches. So we're ready.
So in 2022, we're going to have almost all the countries. We have been modernized all our cell sites through the last 5 years. So in all the countries, we have 3, 4G, 4.5G and ready to have 5G also. No more CapEx that’s what we have been saying, the $8 billion on CapEx this year, it's included all the 5G launch.
Our next question comes from Walter Piecyk from LightShed.
Can you just give us a sense on what your plans are for the Verizon shares that you received as a part of the closing of the transaction?
Well, we don't have any plans today. We're receiving 4 -- I think, there are [ 5% ] dividend yield in Verizon, until -- right now, we don't have any plan. We don't have any lockup on the shares. So any time that we want to sell, we can sell. So right now, we were going to maintain the shares and decide in the near future.
Okay. And then just to go back to the CapEx question. I think if you -- if we just looked at like the network equipment of CapEx in, I think, in 2021 if you excluded spectrum, it was about a little over $7 billion and in 2020 it was about $6 billion. So you just -- Daniel talked about the $8 billion for this year, I assume that's all network CapEx. Is this just kind of a rising trend because your overall business is growing? Or is this kind of residual 5G so that when we look out to the years of 2023 or 2024 that we might return to the capital spending levels that you did in 2020 of $6 billion?
No, I think with the numbers that you gave me, what we have is that in 2020 because of the pandemic and COVID-19, the CapEx reduced to $6 billion instead of being $8 billion. We have been having $8 billion for a long time, maybe since '18 or '17. We have been having like $8 billion on CapEx, including spectrum saw in some years, we have more spectrum than infrastructure. In other years, we have more infrastructure than spectrum. We're doing also some fiber to the home, virtualization, as we said, modernizing and digitalizing. We’re digitalizing a lot of our equipment. So that's the CapEx that we have been saying that we're going to do, and that's what we have also for this year.
Okay. And then just one last one if you don't mind. The -- if you look at the equipment revenue, basically it appears that there's some supply constraint perhaps in getting phones to sell to customers, is that the case? Is it that people or your customers are not upgrading their phones? And if it is supply constraints, what's the outlook for that over the course of 2022 to get more supply to sell more phones?
In 2021, we have problems with the supply of the phone shortages and there's no doubt that there was shortages all around the world. We have that in Mexico and Latin America. And still, I think, for the first and second quarter, I think things are getting better. I can tell you that things are getting better. We're having more supply. A little bit different because the supply is good in the high-end handsets, but the supply in the mid and low, it's a little bit more -- we have more shortages over the -- in this segment.
So what I think or what the people is saying on the brands that are making handsets, what they are saying is that in the second half of this year, they are going to be more normalized on the production of their handsets. So that's what we're hearing.
Our next question comes from Fred Mendes from Bank of America.
I have 2 questions as well. I mean the first one, I think the performance from Telmex was quite strong. Just trying to make sense of the numbers here. According to IFT, they say that around 40% of your connections they are already on fiber. Just want to double check this number to see if it makes sense. And if you have something like a target for number of connections in fiber for 2022, that will be my first question. And then my second question, as you expand your FTTH network, it makes sense that margins in Mexico, there is some significant room for improvement?
I think, as you said, Telmex do well, and they are going to do better. We're putting more FTTH in Mexico, people is changing. We're increasing speeds. We're doing bundles, but Oscar can quickly give a better explanation.
As you mentioned, Telmex has been improving the fiber to the home. Last year, we did a lot of migration from copper to fiber. And we already have 52% of the customer base connected with fiber, and we will continue to do so [ in media ], and we want to speed up the migration from copper to fiber. So we are doing new homes passed with fiber this year. And we believe that we will migrate copper to fiber this year more rapidly than the year before. And another thing is that the enterprise market [ in term ] has been developed quite well. So it is not only based on connectivity. We are having a lot of value services like cloud services, vertical services, security and that business is growing pretty good in Telmex.
Very clear. If I just double check, 52% already of the connections are on fiber. And if I may a follow-up, if you -- if there is a difference in terms of margins between the clients you have on fiber, I’m assuming you charge a little bit more versus the client that you have on copper?
Yes, [ always like to offset the general ] customer base, but the competitive line stage is based on the speed. So even we are increasing the speeds with the same ARPU that we have in order to protect the customer base. But now we launched 1 gigabit speed that is a better price in the market and let’s see what is the reaction in the market to this kind of product.
Just to answer your question, I think it's to have a customers, it’s more on fiber. I think it’s more efficient. It should increase a little bit the margin depending on the ARPU on what Oscar said. And operations, I think it's more efficient to have fiber than copper. So as we put more fiber, then we're going to take out copper and it's much more efficient. The OpEx in fiber is cheaper, is less than the OpEx in copper.
And one more thing to complement [indiscernible]. What Oscar was saying about the revenue in the corporate segment, it's very important. The -- what we call the corporate networks line item has had its best order in Mexico, also by the one in Brazil in at least 5 quarters, okay. You have -- to give you an idea, in Mexico, revenues from corporate networks increased 5.5% and this -- and in Brazil, it's about 9.6% as well. So in both Mexico and Brazil corporate networks are doing really, really, really well.
Our next question comes from Marcelo Santos from JPMorgan.
I have 2. The first one is on Colombia. Could you please expand a little bit more on the positive performance with accelerating EBITDA despite the increased competitive pressure? That's the first question. And the second question is on Brazilian broadband. We see at least from Anatel data that America Movil seems to continue to lose broadband subscribers. How do you see these trends going forward? And do you think the new plans will lead to a reversion? What could you talk about that?
I'm going to start on Brazil, and Oscar can complement a little bit of what I'm going to say. I think still we are the leaders in broadband and we're the leaders in ultra broadband. As everybody knows, the market in Brazil is very competitive, a lot of new entrants and a lot of new fiber. And we do fiber -- like 2 million fiber to the home. New ones, we're going to do 3 million this year, so we're going to have more coverage and we're going to -- I think we're going to grow against broadband. And we're doing a lot of things.
I think the market, the trends market, everything is changing in Brazil, and we're changing, so we're going to do more on distribution. We're going to do more packages. We're going to do -- we already launched 1 gig to any customer that they want and more customer support. So we're doing a lot more things in -- as the market is changing. So we are also moving and doing more things, so including more fiber in places where we are not. So I don't know, Oscar, if you have anything else.
No. As you say, we already upgraded the corporate networks to deliver 1 gigabit speed nationwide. And in all the new cities, we are deploying fiber. We end close to 4 million home passes with fiber, and we will do 3 million more this year in fiber to the home. And secondly, that’s in the market we see the [indiscernible] as a bundle, with combos that we have and as well the fixed and mobile convergence in some of our [ pool ] that we have and we think that we add value to our customer base.
Plus, as Daniel say, the market has been changing and has become very competitive with a lot of fiber across the different regions. So that's -- we see that with these changes on the commercial forces tech in the market, we would feel that we could start growing again. And we are the leaders in ultra broadband as well, been doing so many years. And as Carlos mentioned, in fixed on enterprise, we are doing pretty well in Brazil in the first year that we grow in enterprise it's many years passed. Similar to Mexico, we are having different value to the connectivity, cloud services, vertical services and in the first time that we grew in the enterprise in Brazil many years back in Brazil.
And moving to Colombia, what I can say in [ color ], I think we have an extraordinary quarter, very good quarter in Colombia. We have been doing very good on the corporate side. We have been doing of excellent also in the broadband, fixed and TV. We're growing very good. And we are competing in -- with these new entrants in the market in prepaid and postpaid. We have the best quality. I think the brand is excellent brand, people is preparing to stay and to go with Claro.
We have also very good customer care, customer care centers, distribution in all the [ streets ]. We do convergence. We have a lot of our base already in fourth play. So in Colombia, we have been doing very good on all the operations. I don't think that people is happy only with price. In these times, people want coverage, people want convergence, people want quality, customer care, a good network, good TV. So -- and we have -- and we are offering everything in Colombia. So I think we have been doing good and the results in Colombia are very good.
Our next question comes from Gilberto Garcia from Barclays.
You had a relatively strong performance in prepaid in Mexico and postpaid in Brazil. Can you comment on what is driving the divergence in these 2 markets?
Well, there are 2 different markets and people -- it's -- think different. So in Mexico since the pandemic, people prefer to go more to prepaid. We're growing a lot on prepaid. Our prepaid platform in Mexico is excellent and we're growing there. And we're -- I think in the quarter, I think the service revenue in prepaid grew more than 10%. So it was very good.
And in the other side in Brazil, postpaid has been growing good. Brazil has been having a little bit more -- the economy has been a little bit more slowing down a little bit. So that's why people is not spending as much as they were spending in prepaid. In Mexico, in the other side, people is spending, ARPUs are good in prepaid, and that's more or less what is happening.
But then are you being more aggressive in terms of promotions for contract subscribers in Brazil to drive very strong performance?
No. I think in Brazil, the strong performance that we're having in postpaid is not in one quarter. If you can see the last 2 years, we have been very strong in postpaid or more than 2 years, we have been very strong and we have been the leaders gaining net adds in postpaid in Brazil. So that's not new. We have been doing very good investments in the network in coverage in 4G, in 4.5G, giving the best speeds, having good phones, and doing good in the plans that we have. So that's not new in Brazil. We have been doing that for a long time and we're growing, and we have been the leaders growing in the postpaid segment in Brazil.
And in Mexico, yes, it was a change, but we can see that -- that's a market situation because nobody is growing too much in postpaid and the growth has been more in the prepaid segment. So that's really what is happening, and we're okay with that. So we -- and if the market switch in the next months because people feel more secure to have like our contract in Mexico, we're ready to give them. So that's more or less what is happening in each market.
Our next question comes from Diego Aragao from Goldman Sachs.
Look, the first question is on Mexico. Can you just help us to find this tower transaction. Who was the buyer? What was the price paid for each tower and the number of towers? That will be helpful. And in [ C1 ] Mexico, any update on the PayTV license? We've been seeing some articles out there, some rumors that there might be a chance for you to get finally your taking the license in Mexico. So any update, it would be great.
First, I'm going to give you an update on the new tower spin-off that we're going to do. I think in our tower spin-off, we have all the local preliminary steps in the different countries is completed. Local tower companies are now operating indefinitely from the telco's operations. The spin-off at the America Movil level is subject to the authorizations of the Mexican Tax Authorities, the SAT, and the registration and distribution of the shares of the new entity is subject to the approval of the Mexican Security Commission, the CNBV, okay. And filing has been made before to the SAT and CNBV and we expect to be in a position to finalize this spin-off more or less on the second quarter of this year. So that's more or less when we are seeing the tower spin-off that we have.
On the towers that Telmex sell, they sold around 900 towers. And I think Telmex still has more towers to sell, but they sell 900 towers, and that's more or less what we get. We separate as Carlos can tell you more or less the difference and the profits that we get on that. And what was your other question?
The other question was on the PayTV license. Any update that you can share with it.
Yes. Well, the -- as you know, the application is still pending. The application complies with all the current regulations. In addition to that, it has become public that it has an investment commitment and a network sharing commitment. As you know, PayTV is a highly concentrated market. There are 2 dominant players that have already been determined by the IFT. One of those have approximately 65% of our market share. There's no asymmetric regulations that have been imposed to this date.
The 2 main competitors do not overlap in their cable network, so they have basically split the territory and there's no competition in the -- for the 3 play in those areas. Prices are consistently up. Subscriptions are not growing. So it is clear that competition will serve well to consumers and to the sector, and we believe that Claro and America Movil is a clear alternative to that. So this will have to be determined by the IFT, and we expect, hopefully, some positive news on that front. There's no timing at this point in time for a new vote on the application.
Very clear. And just on the numbers for the tower transaction?
Tower transaction, I think the revenues obtained by Telmex were exactly MXN 7 billion, a little bit over MXN 7 billion. They are booked on the other revenue -- service revenue.
Our next question comes from Carlos Legarreta from GBM.
I have 2 very quick. In terms of share buybacks in the last 12 months, you’ve spent around [ 2 billion ], if I'm correct. I believe in your Investor Day, you mentioned a figure of 3 billion. Is that still a number that we should think of as a reference. And secondly, regarding the competitive environment in Mexico in wireless, you've obviously done very well overall. But do you see any space to start increasing prices perhaps?
Carlos, you have to be very clear. What we said on Investor Day was that we were expecting a time shareholder distributions, not buyback, shareholder distributions, including dividends to come to be as high as 3 billion since we were not having to deploy all our cash flow for the reduction of debt anymore. And if it happens, I think the aggregate distributions for last year were a little bit more than that. It was about $3.1 billion, if I remember correctly, of which about $1.8 billion were share buybacks and $1.3 billion were dividend, okay. So going forward, as we have done in the past, we always take a look at what is our expected cash flow and then we deploy it in share buybacks throughout the year, very much in line with the seasonality of our cash flow. So we would expect to continue to loosen [ fiscal, we have been ] guiding. And on the wireless market in Mexico, we don't have any -- we’re not thinking to increase prices at this time. So we don't think to increase prices. We are -- I think we're doing well because we get the preference of our customers. I think customers can do number portability immediately. So we really have the preference of the customers. And we have the best coverage, the best network, the best speed. We used to have like Ookla, that is a company that measures quality. We were the leaders even that we have the more subscribers in our networks than the other ones. We have the best speed and quality of service. So I think that's really the reason why people and customers are preferring Telcel. So I think that's why we are seeing growth in the wireless market.
Our next question comes from Cesar Davanco from Santander.
First of all, congratulations in your results. My question is regarding Colombia. I understand it was very clear your explanation regarding the competitive landscape. I would like to have more color regarding ARPU because we saw a decline in this semester. So if you could give a little bit more about this, it would be great.
Well, I think ARPU is going down a little bit because the big competition that we're having. So as you give more and more data to customers, then some customers prefer to reduce the rent, to reduce its plan. So that's more or less what we have. But I think with the competition that we have, we're having good performance. We're growing in prepaid. We're growing in postpaid. It's very important. And you know something that is very important, number portability has come -- is positive this year. So with all the competition that we have, number portability was very good in Colombia. So we're happy the way we're developing in Colombia.
Any -- you have any expectations regarding the next quarters, like regarding costs and ARPU?
No, we don't have expectations. It's very difficult to understand what your competitors are going to do. But I think we have very solid basis in Colombia. As we said, we have a good fixed company, a good TV broadband. We are doing convergence. We have a good network and in the prepaid, in the postpaid, quality. So we hope to maintain the way we're doing right now. I don't know if they are going to be more aggressive, well, the market will be more aggressive. And we're ready. We have capacity in our network. We have a very good network, and we're doing fiber to the home. So we are investing in the Colombia.
[Operator Instructions] The next question comes from Andres Coello with Scotiabank.
Two questions, please. In 2021, there was an increase in the funding of pension obligations. Can you explain what's behind the increase? And if you're expecting a similar level for 2022? And a second question, is it public who was the buyer of the towers in Mexico, was it Telesites?
Well, on the [indiscernible]. I think it has mostly to do with the fact that rates are continues to come down in Mexico, so there was a little bit more of a shortfall in funding. So we decided to contribute a bit more. [ Already these signals ] now reversing, which is what is happening everywhere. The present value of future liability has gone up because rates have come down. Now rates are going back up again, and the liabilities -- the present value of future liabilities is coming down. So we don't expect to continue to fund at this level.
In terms of the towers…
I think it was Telesites. It was Telesites the one who buy the -- it was not a secret. It’s Telesites, the one.
The next question comes from Alejandro Chavelas from Credit Suisse.
Most of my questions have been answered. Just 2 questions from my side. The first one is, if IFT noted that they expect to conduct the new [indiscernible] review of asymmetrical measures during this year. I know it's a difficult question to answer, but do you have any ideas of what could change or should we expect that similar type of adjustments in regulation that we have seen in the past? Anything that you can share is super useful.
And the other one is in Brazil, there was this news that a government entity recommend to have deny the Oi acquisition. It appears it was only a recommendation, not something formal. So if you can share anything on that front, is it -- that changes your expectations in any way? That would be super useful.
In terms of the IFT revisions, it will start in December as it was published by the IFT. We don't have any particular expectation. As you know, all areas of the company are heavily regulated. So hopefully, this would be a good time to start some deregulation on the market. What was the other question? Well, I think on Brazil, on Oi, we have the approval on Anatel, I think last week. And well, [ Telmex ] is have a meeting right now. So I don't know what's going to be the decision. We need to wait until they finish and see what's going to be the decision on [ Telmex ].
[Operator Instructions] Our next question comes from Valentin Mendoza from Actinver.
Congratulations on the strong set of results. I have a couple of questions on my side. The first one has to do with Chile. I was wondering if you could share with us about a sense on the competitive landscape over there as we continue to see some ARPU pressures there. Are you expecting to have some change on this side with the merger with VTR?
And the second question is a follow-up on Oi in Brazil. Just wanted to hear your thoughts because some media has been citing that a competitor has requested a moment of the regulator backing up the sale on the back of an illegal decision.
[ Alex ], do you want to talk about it?
Yes. On this last point, yes, we have read the news. And so far, Anatel's resolution is in force and effect, and we understand that any problem with that is really just procedural problem and that to the extent required that resolution would be ratified by Anatel. So up to know, nothing would affect the closing to the extent that [indiscernible] approves the process.
And on Chile, well, I think the competitive landscape in Chile is high in the mobile and in the fixed. There’s a lot of new fiber to the home companies that are good in fiber and that are selling broadband. But I think we're doing well. We’re not doing anything with VTR until the -- we have the approval on the transaction. So we are -- what we're doing is we're still focusing in the networks, in the customers, in the prepaid, postpaid and to grow our TV and broadband segment. So it's been a very competitive -- highly competitive market. We have been increasing our promotions, and we're going to do that this year.
We currently have no further questions. I will hand over back to Mr. Daniel Hajj for any final remarks.
Thank you all of you for the call. Good afternoon. Bye-bye.
Thank you all.
This concludes today's call. Thank you so much for joining. You may now disconnect your lines.