SAS AB

STO:SAS

Earnings Call Transcript

[Operator]

Ladies and gentlemen, welcome to the SAS Q1 Report 2018. Today, I am pleased to present President and CEO of SAS, Rickard Gustafson. [Operator Instructions] Speaker, please begin your meeting.

[Rickard Gustafson, CEO & President]

Well, thank you very much. And welcome everyone to this interim result presentation. We will follow the normal procedures where I will start to provide some perspectives on the quarter and also give you some ideas on how we think about the future and then I will hand over to our CFO, Mr. Göran Jansson, who will today actually conduct his final interim report before he enter into his new venture within this company, and we're going to welcome a new CFO shortly. But more about that at the end of this presentation.I hope you have the material ahead of you -- in front of you and I will try to guide you to the page I will talk about as clearly as I can.So if we dig into this, I'll ask you to flip to Page 2, the Q1 in summary. It's hard to say that one can be satisfied with a negative result, but given that the first quarter is the weakest quarter in our full year, I am pleased to see a strong improvement versus last year. We are basically been able to cut losses in half in the quarter.Earnings before tax landed up negative SEK 273 million compared to SEK 700 million last year and as you can see in this page earnings before tax and non-recurring items ended up at negative SEK 373 million and also compared roughly to SEK 700 million last year.The positives in the quarter, well we've been able to actually somewhat increase our passenger revenue, at least on an FX adjusted basis, despite a negative load factor and this is driven by an improved yield. And again, the yield improvement is also an effect from a better managed seasonality than we have been able do before, and I will come back and talk more about that shortly.We can also note -- and also note that our unit cost is down. It's down by 1% on an FX adjusted basis and excluding fuel, despite that we have report a somewhat lower or flat ASK production. So, again, we see the cost efficiency measures that we take, they are actually having the [ decided ] impact and are following through down to the bottom line.In the quarter, we have also initiated our operation, our brand new operation, within SAS Ireland, operating from our London base, which is a key corner or building block for our future, which I also will come back to.I also need to be humble and admit to that we have had some help in the quarter from some favorable foreign exchange developments that pushed also the results upwards. On the negatives, we -- as I mentioned, we note that we are down in terms of number of passengers by 6% or 400,000 passengers. This is primarily a result that we this year have not initiated or launched a campaign as we did last year where we celebrated our 70-year anniversary and had a very successful campaign where we sold a number of low-yielding tickets to celebrate our 70-year mark.In terms of quality, we are not satisfied, especially with the punctuality that we have delivered in the quarter, but the negatives there are primarily driven by the fact that there's been some hefty snowing in many parts of our network. Norway, I think, has had the most kind of deepest snow depth in decades. We see quite a significant weather or winter conditions in Sweden as well. And as you may probably also know, there has been some incidents across Europe and also North America, where we have had some weather-related problems during the quarter.So that's kind of the overview and Göran will shortly give you more insights to the numbers. But let me take you through a few things that I think is worthwhile to discuss a little bit more, given what we've been able to produce during the quarter. On Page 3, it's an attempt to try to explain the improved seasonality adjustments that we've been able to conclude. It's always hard to just compare versus 1 quarter last year because that quarter can be fairly unique and as we talked about was fairly unique for us last year. Therefore, I'd like to take you back 2 years to 2016 and you start as a frame or basis or starting point for this conversation about seasonality.Back in 2016, if you put that as an index, the production we did then at 100, we then had a yield at SEK 0.97 and we flew just below 6 million passengers that quarter and we made a loss at around SEK 400 million. Then last year, as I mentioned, we were experimenting based about the price elasticity in the market and we decided to increase our departures versus 2016 and at the same time we launched this campaign that I mentioned before. Well, it had a impact in terms of number of passengers. We added 500,000 passengers, or 0.5 million passengers, roughly in the quarter. The yield dropped quite significantly from SEK 0.97 down to SEK 0.90 and we reported -- and recorded loss of SEK 700 million last year. This year, we have decided to reduce the number of legs even further versus last year but also versus 2016. We can see here that we have had some success in this quarter in terms of -- that the yield is up -- is up versus 2017 but is still down versus 2016. However, though we fly 6.1 million passengers this year, which is less than last year, but up versus 2 years back and we report a lower loss than both in 2017 and 2016 due to the fact that we have best of capabilities now to adjust the seasonality and we have been able through the transformation we've done in the last 3 years, to shift more our fixed cost to variable cost, which is now shining through in our numbers. So the whole seasonality adjustment that we talked about is something that I think we can demonstrate, that we've delivered upon and we will continue to move that forward as we move into the future.In terms of cost efficiency and on Page 4, and more reinforcing what we said before, you are well aware our commitment of SEK 3 billion in cost savings until 2020. Last year we produced SEK 800 million of those. We have a commitment of SEK 700 million this year and this quarter, we report SEK 165 million in cost savings. So altogether, for 1 year and 1 quarter, we are SEK 1 billion into our SEK 3 billion program, SEK 2 billion to go. A tough challenge, but something that we are determined and committed to go after and deliver upon. And again, looking into the nominal CASK on this page dropping by 5.6% if I exclude fuel, I think that's also an indication that the measures are having the side effect, given that we have not increased our ASK in this equation.Then moving on to SAS Ireland on Page 5, I'd like to take you back before I talk about this to January 2017. In January 2017, the Board of Directors of SAS approved the idea to initiate the work to establish a new line and try to get a new AOC in Ireland. 11 months later, the first flight took off in December 20th 2017. So I think that's a remarkable achievement from the number of people both within SAS Ireland, but also in core SAS to complete such a huge task in such a short time frame. Today, we operate 4 aircraft. The 5th aircraft that's been delivered to Ireland -- SAS Ireland, it's actually going through some upgrading in terms of WiFi and so forth at the moment, but 4 aircraft is in operation. As of today, we've flown roughly 800 flights and [ north of ] 80,000 passengers, and the feedback so far as for that customer satisfaction is on par with our other production. And also [ our record ] in terms of punctuality and regularity, it's also on par with our other production. As you know, the idea here is to make this a important complement to our core business to maintain our presence at highly competitive destinations such as London and also enable us to take further part of the growing leisure market. There will be 9 aircraft altogether deployed to SAS Ireland, 6 of them will have its base in London and 3 will be based at Malaga and we expect to open Malaga later this year during the summer 2018. And some of you may think that why is the delay, and the delay is the result of delivery problems of aircraft from Airbus that we have some delay in deliveries of aircraft. But overall, they are off to a good start. It's, of course, only in 1 month into operation. They still -- we still need to prove this operation, but I must say that I'm very pleased with the fact that we're able to get this up and running at the end of December last year and the start is very, very promising.I got to stop there and talk about the quarter, and then on the next page talk to look ahead a bit on some of the things that we're working on and how I see the -- how we're going to future-proof SAS also beyond the 2020. But starting on Page 6 and then looking at some of those markets trends and those circumstances and conditions where we operate, I do not think that there will be any surprise on this page than we basically see the same things this quarter as we've seen in the last quarter and the quarter before that.In general terms, from external point of view, we see an increased leisure travel. Leisure travel is growing rapidly. People are -- still are keen to explore the world, which is good news, but that will also mean that the seasonality will be further impacted going forward. The leisure demand is not equally spread over the year, but it's very focused towards [indiscernible] holidays and school breaks and so forth, which creates an even -- further demand then from our end to better adjust our capacity against the seasonality. But of course, we still have a huge part of our customers, north of 50% of our customers that fly on business purpose and they want high frequencies and they want direct connections, and also the growing leisure market is expecting more and more a direct connection. So the increase for non-stop routes will continue, and we have adopted our network in the last few years to fulfill this need and we will continue to do that as we move forward as well.Across Europe, I think everybody is fighting hard to create a profitable short-haul operation in a market that is really kind of dictated by the so-called low-cost carriers. Going forward, I think that the term low-cost carrier is going to disappear and we're going to talk about defective carriers. And a number of the so-called legacy carriers have created their new ventures or subsidiaries where they have a different production unit taking on a specific cost and going after a specific market. I'm thinking about the Eurowings, for example, within Lufthansa Group; I'm thinking about Vueling within the IAG Group, and there are other entities like that across Europe that will make sure that in terms of flying short-haul Europe, it is high competitive market and you need to be very, very effective in order to compete and win in that market.Internally, even though I'm pleased and very impressed by SAS' ability and our employees' ability to drive a high-paced transformation over the year and year-on-years, while still maintaining a strong customer focus and providing us a good customer experience, we still have legacy cost to address and we need to continue with that energy and that passion of ours to constantly trying to drive out the legacy in order to create a highly competitive core operation. We need to do that, and we are facing a fact I want to get into, the early 2020 -- 2020, 2021 and beyond. If we do nothing, we will start to shrink by the simple fact that a number of our existing aircraft will then fall for the aging limit and leave the fleet. So we are, we do need to re-fleet in order to maintain our current size and also to grow into the future, and that of course, implies a rather hefty investment and a need going forward.The actions that we take in order to address these issues, I hope you're familiar with them as well. There are a number of building blocks here that has been in place for a while and that we are adding some new and one is actually currently under development. Starting from the top, we have for a number of years focused heavily on improving our core operation by -- not just by taking out cost. Cost is, of course, the key factor, but we also have changed our network to more adopt to our target audience and create a network and timetable that has some flexibility, where you have 1 timetable for fall and spring and another one for summer and U.S. holidays and so forth, and of course, also the fact that we -- our 5 million EuroBonus members generates an opportunity for us to drive further loyalty and incremental revenue streams by leveraging what is called SAS growth initiatives that we have initiated. And as of -- as for this quarter, we wanted to see some benefits where we have sold more co-branded credit cards than ever before, but more to come, and that's also one of the future talks of Göran as we then take -- move forward.In terms of right sizing, you know this, we -- SAS was probably first air carrier in Europe that started to build a sizable wet-lease market that was not just providing ad-hoc wet lease, but it's strategic partners. This is something that is very common in the North America, but was -- been less common in Europe. We have built that and that has been one of the reasons why we've been able to create more flexibility in our production. And for those who recall when we presented our Q3 results last year, when we report the summer, we were very pleased with the flexibility and ability then to use the right-sizing capabilities in to our advantage and further strengthen our profitability. So that's there. Now in this quarter, we add a third building block and that's our new European production platform SAS Ireland, which is a kind of a greenfield startup, a platform without legacy that we will use to compete at the same time as with anybody else on some destinations that are highly competitive that otherwise would risk that we would have to close down if we can't compete effectively. So that's the new piece and the dotted line is what we are now just talking about, the -- potentially placing a fairly sizable order with Airbus. We are talking about up to 50 aircraft and the idea or ambition to, for the first time in our company's history, go for a single type fleet that would drive further efficiencies and simplify our operation. And we are also trying to do that by also using an asset management company in order to enable and simplify some of the financing needs that we see going forward.So these are the building blocks and we believe that these building blocks when they mature, will also be part of future-proof SAS. And to explain that, I'd like to draw your attention to Page 7 where you see these building blocks put together again, but I'd like to start by the circle in middle with SAS brand. We are determined that we will continue to build a strong business around those who travel frequently to, from or within Scandinavia. We are not abandoning that strategy. That's still going to be kind of the leading star as we move into 2020 and beyond. That's where we have a strong grip of the market, that's where we have the brand, that's where we have a heritage that will work for us. But then playing these different components through optimizing, is going to be important while we continue to put further emphasis on our core operation in order to provide a very, very competitive network and timetable for our target audience, a significant part of our production will continue to be -- operate out of Scandinavia, and therefore, we need to further enhance and future-proof our core operation.We will continue to develop our regional platforms. They are here to stay, they are extremely important to have access to regions and we have some turboprops to build the network that we want to -- that we want to provide to our customers and also create the flexibility that we need, that we talked about so much. To have a European platform, to compete effectively with any carrier on highly competitive European destinations, will be an important complement, an important piece of jigsaw. And then, when we complete the jigsaw with this final piece, which will be the single type fleet and an asset company, where we then can deploy this in the most effective way, we can future-proof SAS.I can't tell you today the size of these different platforms. I can tell you though that as of today, we have the decision to deploy 9 aircraft in our European platform. We have a certain amount of regional jet capacity that we can operate and we need to continue to improve our core operation. But as we move into the future, we will need to optimize these different platforms in our favor in order to increase our competitiveness and ensure that we can compete effectively on all of the destinations where our customers want to fly. It will enable us to continue to provide further flexibility, to further adjust our seasonality in line with the variation of demand and also provide growth opportunities in order to go after a growing leisure market. And finally, but not least important as well, it's also an opportunity for us to more effectively drive our sustainability agenda forward. With new aircraft, of course, they are [ 15% to 18% ] more cost efficient -- sorry, fuel efficient than a traditional aircraft, but also by optimizing this and right sizing our fleet, we will fly with the right-sized equipment to the right destination and minimize our negative CO2 footprint going forward.So that's also going to be important I think as we move into the future, and especially if you think about this beyond the 2020. So those are the platforms that we now have established in the last 3 years. They will be the cornerstone for how we see they are going to take SAS into the future. So with that, I am going to hand you back to the quarter and to the numbers, and ask Göran to take you through that. Göran, please.

[Göran Jansson]

Thank you, Rickard. We move to Slide #9. I will start to go through the income statement before discussing our financial position for the quarter. SAS total operating revenue was close to unchanged during the first quarter and almost reached SEK 9 billion. Adjusted for negative currency effect of SEK 225 million, the increase was 2.8%. Operating expenses decreased by SEK 346 million. Adjusted for currency, costs are close to unchanged versus last year. The positive currency effect is driven by the weaker U.S. dollar. Nevertheless, it is satisfying to see the efficiency measures generate results with payroll expenditure down SEK 130 million and other volume-related cost components decreased in line with our reduced production. The EBITDAR improved SEK 367 million and the margin was 9.5%, which is 4% units higher than last year. Our aircraft lease cost increased by SEK 27 million, compared to last year, but adjusted for the weaker dollar, the increase was SEK 81 million. This was driven by the phase-in of our Airbus A320neos and increased wet-lease operation. Depreciation increased SEK 26 million adjusted for non-recurring items. The increase is mostly driven by the higher engine depreciation due to the new accounting model for maintenance.Finally, and although it is not satisfactory, it is pleasing to report an improved EBIT of SEK 334 million to minus SEK 373 million in the seasonally weak first quarter. Looking at the next slide, the performance over the last 12 months, which is set up here, you can see that we generate SEK 42.7 billion, with operating expenses of SEK 35.4 billion. We are generating an EBITDAR margin of 17.1%, which is an improvement of 4% [ unit ] points versus last 12 months. The EBIT margin is 6.4%, which is more than double and high as a year ago. Moving slowly down, you can see that we, during the last 12 months, have generated an EBT before non-recurring items of close to SEK 2.3 billion. This is the second strongest earning ever generated by SAS and we have to go back to 1995 to find a slightly higher figure.Moving forward to next slide, we can see breakdown of revenues during the quarter adjusted for a negative currency effect from a weaker Norwegian kroner. The revenues increased by SEK 246 million to almost SEK 9 billion. The production was marginally increased and contributed SEK 47 million in increased revenue, assuming the same yield as a year ago. Our load factor was [ 4.5% points ] lower than a year ago, which had a negative revenue effect of SEK 426 million. This was, however, offset by a 6.8% stronger yield. The growth in our revenue during the quarter is therefore, mostly driven by the stronger other traffic revenue and other operating revenue. The key drivers are cargo revenues that increased by SEK 59 million and EuroBonus point sales of SEK 62 million. In particular, the sale of EuroBonus points has performed during last year and on a 12 months basis, we have increased the sales by more than SEK 230 million.Next slide illustrates the development of our operating expenditures. Changing the -- the changed currency had a positive effect of SEK 372 million, which is mostly due to the weaker U.S. dollar. The biggest negative item in the quarter is the high jet fuel price that has increased SEK 162 million when excluding above all currencies. General inflation affected us negatively by SEK 78 million in the quarter, but again as inflation goes, the earning impact from efficiency program, that contributed SEK 165 million during the quarter. Rickard had already showed which areas these impacts have come from. So finally, we have a positive other item of SEK 65 million. The main driver is the new accounting model for airframe landing gear in the fourth quarter last year, where we now make provisions for technical maintenance on an hourly basis rather than when the expense incurred. In a quarter like this, when we reduce the number of flights, this result in a lower cost. Altogether, our operating expenses in the quarter was SEK 8.1 billion, which is -- which currency adjusted was more or less in line with last year.Let's move to the next slide. By the end of January, we exceeded all financial targets with the return on invested capital reaching 14%. As noted before, given that we are taking deliveries on new aircraft, the capital base is growing which will require increased earnings going forward to maintain the return level. So adjusted financial net debt over EBITDAR is at 2.9x. Similar with the ROIC, this target will become more challenging when we take more aircraft deliveries. Finally, the financial preparedness was 38% in January, but this is now lower due to the redemption of preference shares.And then moving to next slide, I first would like to note that our cash flow from operating activities was positive by SEK 184 million in the first quarter. This is driven by stronger earnings and a higher traffic liability than a year ago that comes from a record high sales in our big sales campaign in January. I have now -- I have not experienced at least in my times here in SAS before, is really good cash flow for the first quarter. I have for many quarters noted that we need to work with, optimize our capital structure. During the last few months, we have taken some important steps towards a more efficient capital structure with the issue of new shares and the bond in November. They enable us to now in February, redeem 70% of the outstanding preference shares, which during the next 12 months will reduce SAS dividend payment by SEK 245 million. Together with a lower interest expenses from the new bond, the annual financing spend will decrease close to SEK 300 million and that will contribute to the cash flow going forward.On the next slide is an overview of the debt profile and CapEx. In terms of maturities, the main upcoming item is the convertible bond maturing slightly more than a year from now. We are currently reviewing different options for this instrument. In relation to this year, remaining payments of SEK 200 million relates to [ P2P ] or for the Airbus A320neos being delivered this year. Those aircraft are on sale lease back basis which means that the sale proceeds for these aircraft will offset these maturities. In term of CapEx, we have 10 Airbus 320neos, not just finance, but the financing process with those was started last week with good interest.In terms of CapEx guidance, our indication is unchanged at SEK 6 billion for the fiscal year '18. As noted by Rickard, we have a significant investment in a new order of about a 60 aircraft from 2019. We are now in a exclusive negotiation with Airbus and the source which could result in an order about 50 aircraft Airbus 320neos. This is a significant investment for SAS and before any such commitment is made, we must ensure that the business case is robust as possible.So since my -- this is my last quarter report, before I hand over to Torbjørn Wist on Thursday, I have prepared a slide with some reflections. In these 7 years, we have been able to move SAS quite a way towards a more resilient airline. Some key figures show that and starting off with the first one, which maybe I'm least proud of, is the CASK. It's only down 12%, okay, except 3% to 5% clearly a improvement and it is 3% comparative, okay. From my point of view, 5% would have been better. In spite of yield pressure, the revenue per passenger is at the same level. However, it's due to the [ intercompany ] expansion, which has a higher revenue per passenger. The pension debt which was one of the fundamental problems when I started, we managed to negotiate the way the defined benefit plans, which are flying through, lower EBITDA with SEK 19 billion. The lower interest rates have increased, remained at SEK 17 billion. Without that change, the equity would have been negative in SAS. The number of employees, it's done with 2/3 of -- with 2/3, i.e. 1/3 down through divestments, outsourcing and rationalizations. The ambition to simplify the fleet from outsourcing and divestments [indiscernible] are significantly lower the number of aircraft. The strengthening of the balance sheet comes from profit generation, divestment, outsourcing and capital raising, that's lowered the interest bearing debt to 40% and decreased the interest balance to almost the same. In the same time, we have seen 5 million more passengers.With this, I want to say thank you for the good cooperation we have hard during the years and hand over to Rickard for the outlook and to conclude.

[Rickard Gustafson, CEO & President]

Thank you very much Göran. And finally, then on the Page 17. We basically maintain our outlook for the full year. And despite the fact that the jet fuel is actually up versus our -- what's anticipated a quarter ago, we also record that this quarter has ended in a somewhat better than we anticipated ourselves. And those together enable us to maintain our outlook for the full year that we believe that it's doable to deliver earnings before tax and non-recurring items in the interval of SEK 1.5 billion to SEK 2 billion given that no unforeseen events will happen.And with this, I'd also like to thank Göran for his amazing contribution over these 7 years and to make sure that he also now enters his new position helping us to really take full advantage of SAS growth initiatives and I'm excited to welcome to Torbjørn on to the team and to SAS within a day or 2.So with those few comments, I think we end the formal presentation part of this interim report and I would like to hand over to the operator to help us facilitate the Q&A session. So thank you, and operator, please.

[Operator]

Thank you. [Operator Instructions] And the first question comes from the line of Jacob Pedersen from Sydbank.

[Jacob Pedersen]

I have a couple of questions. First of all, I'd like to hear your thoughts on your mode in this first quarter. You know, you've lost 5% to 6% of passengers and should we expect a more aggressive SAS in the marketplace moving forward, or how do you see that?

[Rickard Gustafson, CEO & President]

I'll start by trying to address that one. I think when you look into the actual number of passengers and the drop that we report versus last year, I think it's important to put in perspective that last year was maybe an outliner well within the norm and we're now kind of, normalized our production and our efforts in that respect. Moving forward, we said that we anticipate that we will have somewhat lower load factors throughout the winter, but when we get into kind of the summer season, it will start to even out again, and we still believe that that is the case. However, though, I must admit that at the moment, there are a lot of capacity coming into the market and that would probably mean that by mathematical logic, we will drop a little bit in our market share given that we are not growing at the same pace as some of our competitors. But for us, it's important that we continue to drive an agenda for those who travel frequently to, from or within Scandinavia, and that would grow profitably and that we continue to strengthen our profitability and our balance sheet. That is more important to us than to chase that final passengers who is only looking for this very, very cheap ticket.

[Jacob Pedersen]

Okay. Coming to yields, you had the -- you've had an increase in yield. I understand that it's because of your [ 70 best day ] initiatives last year as well. But could you try to specify on a regional level where you see the positives, and where are the negatives?

[Rickard Gustafson, CEO & President]

Well, you see a little bit in our intercontinental operation where we last year, had a number of tickets in the campaign, low-yielding tickets that we have not sold to the service stands this year. So in long haul, you see some of that and given that the load factor is also calculated on ASK basis, that kind of accelerates the -- maybe the drama of the numbers, if I put it that way. In terms of actually number of seats filled, it's a different story. Otherwise, I think you'll see some of that also in our interest, Scandinavia and domestic markets as well, a little bit where we again, it's hard to stimulate traffic in the low season, but last year we were able to do some of that and we haven't done it to the same extent this year. So I would say, those would be my 2 most concrete examples.

[Jacob Pedersen]

Okay. And finally a question on the sale of Europe on those points. You had quite a good momentum in this. What are your ups and downs and the possibilities in improving this further moving forward?

[Rickard Gustafson, CEO & President]

Well, you're right. We are pleased with the development so far and we have a good quarter and there is a good response in the market in these -- related to this. But we're not satisfied yet. We believe we can do more and that's why we put this emphasis on our SAS growth initiatives. That's why we're creating a separate organizational unit to drive that and also that's why we are also changing the structure of my management team and putting a clear owner into this to get more momentum, and maybe Göran, if you want to say 2 words as well related to this.

[Göran Jansson]

I think the numbers that you're seeing show good evidence of that it's possible for companies like Amex, for instance, which is one of our best partner in this area. You can -- if you look into speeds, and particularly a few years ago, we couldn't really use the Amex card in too many retailers. Today even at the [ ITI ] you can use your Amex card. And it is a demand that we have created for the use of the Amex card. Together with Amex, we have helped them to move the market and I think we have ended with possibilities to do that without the partners, and we are currently working with a number of our [indiscernible] and others. But that is the, I think, a good example of what we can do more of and we'll do more of and what we are currently working on. Why it has been a bit [indiscernible] right now is, of course, we are through at the middle of the EBITDAR conversion. You know, this new legislation, it has stopped us up a bit, we have changed platform and so on. So now we are -- in the beginning of the spring, we will be ready to move again. We will add new features with EuroBonus partners and we will add new features with our EuroBonus program going forward, and that you will see -- more of that during the summer and after summer.

[Operator]

[Operator Instructions] And there are currently no further questions registered. So I'll hand the call back to the speakers. Please go ahead.

[Rickard Gustafson, CEO & President]

Thank you. We have a couple of questions by the webcast. So the first question reads, what are the options you are currently considering as regards with the convertible bond?

[Göran Jansson]

First, of course, continue to deliver on our savings program or the efficiency program, which will improve our earnings, which is important going forward to with a lower -- with the share price in the right direction. A share price about [ SEK 23.70 ] would lead to a conversion into equity. So we --I think we -- all of us are very geared towards improving our profitability and our capability going forward. What Rickard talked about before, give us a good platform to do that. We are hopeful that will be responded by the capital market and the equity market in the share price movement. We can't of course, guarantee that, but still, there are other options when it comes to other financing means.

[Rickard Gustafson, CEO & President]

Okay, thank you. And then we have a second question in relation to ground handling. What happened with the sale of your ground handling at your main house? Why did you end up with keeping them in the company?

[Göran Jansson]

Right. That was a decision we took over a ago now, I believe. And we after a long process where we were looking for potential takers, we realized there was no one out there who could actually provide a higher quality at a more attractive price and we decided that it's better that we then maintain it and develop that, and our main kind of helps our results. What we still -- what we've done is that we sold our outsourced all line stations in Sweden and in Norway. So that has been completed and with a exception of 2 stations in Sweden, we talking Malmö and Gothenburg where we still have an ongoing process with some potential partners to take over our stations at Malmö and Gothenburg. But we are pretty confident that when it comes to Stockholm, Oslo and Copenhagen, we will maintain it in-house and we will use technology going forward to further enhance both the customer experience and improve our cost efficiency.

[Rickard Gustafson, CEO & President]

There are more -- no more further questions on -- via the web. So operator, do you have any more on the line?

[Operator]

And there are currently no questions registered on the telephone line.

[Rickard Gustafson, CEO & President]

Then I suggest that we end this call, and I thank you all for taking time to join us for this call this morning, and I wish you a good week. Thank you very much.

[Göran Jansson]

Thank you. Goodbye.

[Rickard Gustafson, CEO & President]

Bye.

[Operator]

And this now concludes the conference call. Thank you all for attending. You may now disconnect your lines.