Aeroports de Paris SA (ADP) Earnings Call Transcript & Summary

Hello, and welcome to the Groupe ADP 2024 Half Year Results Call. Please note, this conference is being recorded. [Operator Instructions] I will now hand you over to your host, Cecile Combeau, Head of Investor Relations, to begin today's conference. Thank you.

Thank you, Francois, and good evening, everyone. Thank you for being with us tonight for our half year results presentation. Today with me are Augustin de Romanet, Chairman and CEO; Edward Arkwright, Deputy CEO; and Philippe Pascal, CFO. We will start the session with some prepared remarks from the management before the Q&A session. As a reminder, certain information to be discussed on today's call is forward-looking and is subject to risks and uncertainties that could cause actual results to differ materially. For these, I refer you to the disclaimer statement included in our press release and on Slide 48 of our presentation. And with that, let me hand it over to our Chairman and CEO, Augustin de Romanet.

Hello, guys. Thank you, Cecile, and good evening, ladies and gentlemen. Thank you for joining us to discuss our half year results 2024. So let's move directly to Slide 3. We've delivered a consistent set of good operating and financial results in the first half of 2024. First, traffic is developing in line with our expectations, both in Paris and in our international assets. Second, after 2 years of preparation, this semester, we finalized the rehearsals and welcomed the arrival of passengers taking part in the Pari Olympic Games. The special summer has now started third, on the international side, we are in the final steps of the GIL and GAL merger in India, checking that all conditions precedent to the merger are completed. Closing of this very important transaction is expected shortly. It's now hopefully a matter of days. Fourth, we are posting EUR 943 million EBITDA. That is 9% above last year, driven notably by an outstanding performance at TAV Airports. And fifth, we're expecting that this overperformance will likely soften in the second half on our EBITDA growth guidance of at least plus 4%, is fully confirmed as our traffic assumptions and other financial objectives. On Slide 4, you can see overall traffic evolution in line with our assumptions for Paris and at group level. Philippe Pascal will come back on this data in a few minutes. Let's move to Slide 5 to talk about our operations. In Paris, all news is marked by the 2024 Olympic and Paralympic Games, which will kick off this Friday. It's a fantastic hospitality challenge, for which all teams have been preparing for a long time now. We've already started to welcome many delegations in good conditions. Arrivals are intensifying this week, with now only 3 days to go before the opening ceremony and the start of the competition. The second major operational challenge will take place on August 12 when most of the athletes will set up. While peak-day traffic is expected to be higher than the usual peaks in a normal summer, overall, for July and August, we anticipate a substitution effect between Olympic-related traffic and seasonal tourism. It was the same in London, Athens, Tokyo. Let's move on Slide 6. Our infrastructures are ready with a revolution of the access to Orly, thanks to the commissioning of the metro station built by ADP and the opening of Metro Line 14 a month ago. Now, Orly is related to the network of Paris Metro in very good conditions. You can reach the center of Paris in less than 25 minutes from Orly. And for the first time since 2018, all Parisian terminals are now open, the last 2 in CDG, where Terminal 2C reopened since May 23 and Terminal A since July 2nd, 2A. Now moving on to Slide 7. Our teams are mobilized and have rehearsed to welcome tourists and delegations. In such event, there is no room for running period. We rehearsed, and now here we are. To avoid baggage and passenger jams at departure time, we relocated athlete check-in to the Olympic Village. They will load their bikes, their [ convoys ] and other vaulting poles, which will be transported directly by special truck to the airport, where security checks will be carried out in a dedicated [ plant ]. Athletes will also benefit from a dedicated terminal for their departure from Paris. Now let's talk about our international operations on Slide 8. Among the highlights of this half year, I would like to mention the opening of the new international terminal at Almaty Airport at the beginning of June. Part of that [ Paris Aeroport's ] portfolio, Almaty in Kazakhstan is experiencing rapid traffic growth, and we are delighted to see its capacity increase to 14 million passengers with new retail facilities, giving an outlook for announced profitability. Continuing with our international portfolio, I will now move to Slide 9 about our 51% owned Jordan subsidiary, whose name is [ AIG ]. Following COVID-19 disruption, we've negotiated together with our partners and obtained from the lenders and from the government of Jordan a global restructuring agreement, leading to the extension of the concession held by [ AIG ] to manage Amman Airport for an additional 7 years until, now, November 2039. This renegotiation support [ AIG's ] financial and operational stability, which has been shaken during COVID, as well as its ability to accompany future traffic growth in Jordan. This positive outlook is reflected in the reversal of an impairment, which Philippe Pascal will comment in a few seconds. Now let's move on the progress made with our strategic road map. Actions contributing to the achievement of the 2025 Pioneers objectives are continuing. You see on the slide the key progresses contributing notably to the decarbonization of our operations. Besides, 4 out of the 20 objectives of the road map have been adjusted to take account -- to take into account certain external limiting factors such as, first, the speed of change in certain regulatory frameworks; second, some operational constraints linked to air navigation traffic control; third, the speed of renewal of airline fleets; and last, the absence of market opportunities. In the light of the above context, the adjusted objectives set demanding targets and reaffirm the determination of Groupe ADP and its commitment to achieve ambitious results. Now, getting back to our half-year results on Slide 11, you see here our key figures highlighting our strong performance. And I will now hand it over to Philippe Pascal, who will comment further on our operating and financial numbers, figures.

Thank you, Augustin, and good afternoon, everyone. Let's first turn back to traffic, focusing on Paris on Slide 13. As highlighted by Augustin, profit is growing in line with our expectations, both in Paris and in our international assets. Traffic with Mainland France shows a decline of 6%, reflecting the impact of the 4-Flight air traffic management system in January and February, estimating to 1 million passengers. Domestic traffic is a structurally growing slower compared to international traffic, notably due to the pressure of several domestic rules compared to pre-COVID situation. International traffic, the most contributive for ADP, is growing by 8.5%. Among these traffic, you can see that traffic with North America continue to see strong momentum. It is up 7.8% overall, driven by traffic with Canada, in particular, which is up 13.4% compared to last year. Also, traffic with the Middle East is down 3.1% due to the geopolitical conflicts. And the traffic with Asia Pacific is up 35.3%, notably driven by traffic with China, which is 4x higher than in H1 2023. There are currently around 48 frequency per week between Paris and China, which is around half the capacity of the pre-COVID situation in 2019. We do not expect capacity on the road to increase in the foreseeable future. Let's now move on to Slide 14 with a focus on Extime Paris sales per pax performance. The performance remained very strong to EUR 31.7, up EUR 2.1, around 7% increase. We continue to see strong performance in fashion, luxury, which is the greatest contributor to sales in airside shops. This growth is notably driven by international traffic, including the gradual recovery of Chinese traffic in our flagship terminals, Terminal 1 and Terminal 2E. Media and advertising is performing well with a strong contribution to the SPP in the first semester, driven by advertising campaigns ahead of the Olympics. Going forward, we expect the reopening of Terminal 2A and 2C in May and works in Terminal [ 2E-K ] that will materialize in H2 to affect the short-term [ dynamism ] of SPP. Despite this, we anticipate the continued rollout of Extime to drive performance and more than offset the headwinds I mentioned, with SPP expected to continue to [ roll ] by 2025 but at a slower base. Finally, I will highlight the most recent development in Extime, is projected acquisition of Paris Experience Group as approved today by the Board of Directors. The company is positioned in a dynamic market and benefits from fully position in the tourist reception sector in the Paris region. The projected [ connection ] aims at expanding Extime value proposition to tourists throughout their stay in Paris. We hope to close the deal towards the end of the year or by Q1 '25. Moving on to Slide 15. We will focus on our international airports, which overall show a solid traffic growth of 12% driven by our 2 main international assets, TAV and GMR. As you can see on the left side, traffic growth of TAV Airports is strong, up 17.3% overall. TAV's international network of airports sees the strongest growth with traffic up 22.7% and notably a solid contribution from Almaty, where traffic is up 25.5%. The opening of the new international terminal at Almaty Airport in June, as mentioned previously by Augustin, will increase capacity to [ 14 ] million passengers and enable further growth. Turkish Airport record solid a growth with 14.1% in traffic, with international traffic being the most dynamic, up 17.2%. On to the right side of the slide, GMR Airports traffic growth is solid, up 8.9%. Here as well, international traffic in India is seeing the strongest growth. Moving on to Slide 16 for our consolidated revenue. Revenue reached close to EUR 2.9 billion in H1 of '24, up 13.4% versus last year. Aviation revenue is up EUR 50 million or 5.4%, reflecting traffic growth in Paris and the tariffs increase by 4.5% on that rate, applied since April '24. The retail and services segment is up 13% versus H1 '23, helped by the stronger sales per pax in addition to traffic. Real Estate revenue segment is up 7%, and [ world ] with TAV Airport, TAV is up 31% against last year, bringing the biggest contribution to revenue growth this semester, supported both by a strong profit growth and strong momentum in its services companies. For Amman Airport, Amman still impacted by the geopolitical conflict on Jordan. And globally, it's stable. Moving on to Slide 17 on EBITDA. OpEx stands at EUR 2 billion, up 15.9%. And out of the EUR 275 million increase in OpEx, you can see the EUR 64 million for the new infrastructure tax in Paris, which impact the 3 Parisian segments. As a result, EBITDA growth this semester is mainly driven by international and shown on the right side of the slide. As expected and previously commented, we are seeing OpEx increase in Paris driven by staff costs, roughly the impact of incremental recruitment made as well as salary increases implemented in January '24 in ADP [ mother ] company, but also driven by higher electricity costs for about EUR 10 million compared to last year and also driven by higher subcontracting costs, reflecting efforts on quality of service, but also the effect of inflation on some contracts. At TAV, we also see higher personnel costs to enable the higher activity. We expect this effect to continue in the second half of this year. And while EBITDA is up 9.3% in H1 to reach EUR 943 million, we expect this overperformance to soften in the second half due to OpEx increase [ maintenance ]. Moving to Slide 18 to see EBITDA trend excluding the one-offs. And you see the slide excluding one-off, H1 '24 EBITDA is up 12% (sic) [ 11.4% ] against H1 '23. As you can see on the graph in the middle of the slide, the list of one-off excluded is detailed in the appendix and is in the half-year financial report. Below is the Slide 19. There are two items to highlight. So first, the amortization and impairment, up EUR 134 million mainly due to the reversal of an impairment of EUR 152 million relating to the expansion of the Amman Airport concession until 2039, which rebalanced the concession. The impairment reversal being a one-off contribution to the net income group share of EUR [ 61 ] million. And the second item that I want to highlight is the financial results, up EUR 60 million, mainly due to the gains of financial investments. Given this and the solid underlying EBITDA performance, the net reserve group share stands at EUR 347 million, up [ 64% ] compared to last year. Slide 20. Slide 20 shows an analysis of the net results, group share excluding one-off, [ bringing ] very solid underlying results in H1 '24. In H1 '24, the largest one-off impact was the impairment reversal from Amman Airport that I mentioned just previously. In the bottom part of this slide, you see a reminder regarding the noncash accounting item that we expect to book in the net result of full year 2024 relating to the upcoming merger of GIL and GAL in India. As you know, it is an accounting item, and it has no impact in our cash flow. And whatever the amount of our net income group share will be for 2024, our distribution policy provide for EUR 60 billion payout with -- 60% dividend payout, with a [ productive ] threshold of EUR 3 per share. As mentioned by Augustin, we expect the transaction to close in the coming days. And we are very excited about it because it will rebalance the value of our assets, which are significantly increased compared to [ 2023 ]. Moving on Slide 21, you can see on the bridge the main items explaining the evolution of -- in our net debt. I will first highlight that after applicable accounting rules, the derivative instruments related to the FCCB convertible bonds issued by GMR and subscribed by ADP in March '23 as part of the GIL and GAL merger project, this issue is included in our net debt at fair value. The fair value of this derivative instrument totaled EUR 709 million on June 30, up EUR 177 million compared to the end of '23. The [ filing ] of these instruments will coincide with the settlement of the FCCB and does not be a commitment to cash outflows. Because of this, we wish to focus the analysis of our net debt evolution excluding this instrument with the following 3 -- few things. The first, the usual cash flow outflows of the dividend payment for EUR 377 million and from CapEx spends, which amounted to EUR 471 million. And the second point is the EUR 500 million repayment on June 11th, offset by the EUR 500 million bond issuance of May and with a 7-year maturity, which allowed to smoothen our debt profile. In total, net debt stand at EUR 8.5 billion, 4.2x EBITDA. Excluding FCCB-related derivatives, the adjusted net debt amounts EUR 7.8 billion or 3.9x EBITDA. Moving on to Slide 22 about our investment trajectory, which remains unchanged. After several years of subdued CapEx spending at ADP SA mother company, we expect to spend around EUR 900 million on average between '24 and '25 to meet our maintenance needs and new projects. On group level, CapEx trajectory stays at around EUR 1.3 billion per year on average. On top of ADP SA CapEx, group CapEx includes investments in subsidiaries in Paris, mostly in real estate and retail to a smaller degree, for which we slightly lower our forecast; and investments in international assets, notably at TAV Airport. We expect an increased amount of investments and updated its own guidance just yesterday. Let move on to Slide 23 to talk about the -- over '24-'25 targets. Our traffic assumption and financial guidance for '24 and '25 are confirmed. Most especially, we continue to expect traffic in Paris to grow with this year between 3.5% to 5% and was above 8% at group level. Our target to deliver at least 4% growth in EBITDA is also confirmed. Our EBITDA is strong for the H1 '24, driven notably by outstanding performance at TAV Airports. But with this, other performance should soften in the second half, driven by the continued pressure from OpEx, notably. And hence, we confirm our EBITDA guidance with absolutely no change. Investments are expected to ramp up slightly this year in Paris. All over, our other '24-'25 targets are confirmed. And with that, I will hand it over to Augustin de Romanet to conclude.

Thank you, Philippe, for your brilliant presentation for these brilliant figures. So to close this presentation, I would like to invite you to look forward with confidence to the road ahead of us with 2 slides. Our teams with the entire airport community have worked tirelessly to make the Paris Olympic and Paralympic Games a memorable success and a source of pride. The games have helped accelerating the transformation initiated with our 2025 Pioneers road map, and they will leave a tremendous legacy for Groupe ADP on our passengers. I will mention three items. First one, hospitality for all, with greater accessibility for people with disabilities. The determining change is, for example, that passengers are now able to keep their own wheelchairs until boarding and have them available on arrival exactly at the time they leave the plane. Second, better access to Paris Orly airport with the opening of Metro Line 14. And third, the most important perhaps, team cohesion and sense of purpose, which are an essential [ cement ] to continue to deliver our objectives. In conclusion, we look to the future with confidence as we have already begun to pivot our business model with aim to combine sustainability and long-term value creation. We built up a group with 3 complementary platforms, enabling us to balance our value-creation profile and find new sources of growth. Hospitality and quality of service are our compass. They make a fundamental contribution to the attractiveness of our airports for airlines and passengers alike and are a source of pride for our teams. We've turned the corner on sustainability with a climate strategy fully embedded into all our operations and the way we conceive the future of our platforms. I'm convinced that this strength will help us to [ reconciliate ] decarbonization, which is our license to grow further, and economic value. Saying that, with Philippe, Edward Arkwright and myself, we're happy to answer to you if you have any questions.

[Operator Instructions] The first question comes from the line of Dario Maglione from BNP Paribas.

Congratulations for the good results. Two questions from me, one on retail. I see spend per passenger was healthy in Q2. What are you seeing in June and July after the reopening of the terminals? What is the impact, you think, so far from the opening of the terminal? And are you seeing any weakness due to consumer being weak in Europe or maybe traffic mix or less traffic from the U.S.? And the second question, status on traffic. We've seen [indiscernible] commenting on kind of the pricing outlook in Europe for tickets. What are you seeing in terms of traffic? And what are the airlines saying?

So thank you for your questions. So your first question about the SPP target, so as you know, we have a strong performance in this first half there, and we are also in line with our guidance. But we think that it's fair to include some prudence in our expectations to factor the potential negative impact. Nevertheless, we choose to keep for ourselves the details of our assumption and also other detailed margin. We expect to see the effect of the reopening of Terminal 2A and 2C [ materially ] from the third quarter of '24. This terminal was closed to upgrade the security system of the luggage system and the retail offering in the terminal being less [ powerful ] compared to Terminal 1 international. The reallocation of a portion of the international traffic to this terminal is expected to create downward [ releasing ] of SPP. The work in Terminal 2E-K, we will intensify towards the end of Q3, Q4 this year, with the relocation of temporary shops for some luxury brands with ultimate goal to enlarge them. Despite this element, we expect the continued rollout of Extime to drive performance and more than offset the negative effect I mentioned. But -- so I can confirm the guidance. But at the same time, I can also confirm the negative impact that we have in this second half. Your question, second question about the traffic and the traffic outlook. So as Augustin said, we expect a neutral effect of the Olympics again on traffic with a substitution effect between traffic linked to Olympic Games and the seasonal tourism. And we've seen this phenomenon in London in 2012 and in Rio in 2016. But in fact, we have some elements that we are very cautious. But when you see our guidance, we expect Paris traffic to grow this year between 3.5% and 5% compared to '23. And we can confirm that in this guidance, we monitor all the potential effects including for flights, including the fact that, that airline can see some slight impact. Airlines, including the Air France, Air France can try to improve load factor by stimulating the [ load ] from pricing with the [ yield ] management. We will be monitoring the strategy and their impact on passenger load factor over the coming months. But for the moment, I confirm the guidance without issue. Thank you for your two questions.

[Operator Instructions] The next question comes from the line of Cristian Nedelcu from UBS.

Can I ask you the load factor you had in June showed a sequential deterioration versus the prior month, which is a larger deterioration than we were seeing in the other airports reporting the load factor. So I was wondering if you can comment if there was anything there because usually when -- I guess, you also said it earlier, when you see a lower load factor, that may mean demand is slowing down a bit. So that's the first question. The second question, the OpEx performance in Aviation was better than I thought at least. So, I guess, and I think you made some comments that the OpEx in the second half should be higher than the first half. But could you elaborate a little bit on this? I know recently you had also this bonus payment for the employees and other moving parts, just to get a feel of how much larger the OpEx should be in the second half in Paris versus the first half. And apologies, just a technical one. You mentioned in retail, you have this EUR 38 million headwind to EBITDA in the first half, which relates to lower energy sales and the infra tax. Just for the second half, should it be another EUR 40 million headwind? Or is it a bit less or more -- or any color that you could help us with?

So thank you for your questions. So about the load factor, in fact, we can see a slight decline. In fact, usually, we can see that it's a testimony of demand slowdown. But all in all, when I try to answer the question just before, we can see that all the airlines try to improve this load factor by stabilizing demand through pricing. And for us, one passenger has the same impact in our P&L [ the number of ] passengers. So all in all, at the end of the day, we can stabilize the load factor, and we have to monitor that. The key element for us is the fact that we have an international passenger or a domestic passenger. But all in all, we don't expect a huge impact due to that. The improvement of load factor, it's not a huge issue for us. So your second question about the OpEx, clearly, in fact, we have -- we've tried to monitor the -- our OpEx in Paris but also in TAV. We have both in Paris, the main part of the increase due to the OpEx is infra tax of EUR 64 million for the first half for a total of EUR 120 million for this year. But we have also -- besides the tax, we are expecting -- experiencing OpEx increase in ADP [ mother ] company for around EUR 60 million. This is driven notably by TAV cost for EUR 30 million due to recruitment and salary increase, but also electricity costs for EUR 10 million and subcontracting costs for EUR 15 million. We expect these effects to continue in the second half, in line with our guidance with -- it's confirmed, as I said, and our EBITDA growing at least for [ 12% ] first half this year. So in terms of OpEx, we are in line with our expectation. With the infra tax, so remember that for the infra tax [indiscernible] constitutional court. We have specific hearing at the beginning of July and with all the 13 taxpayer of this time, tax included us. Our arguments are perfectly aligned, and we now await for September 12, which is the deadline for the decision of the constitutional court. [indiscernible]. There will be no further recourse to its decision to infra tax. Remember that we have an impact in the regulated revenue but also in the nonregulated revenue. The part of the impact of the regulated revenue is specifically for the aeronautical fees, offset by the tariff increase this year. And we try to offset the other part the next year or in '24 -- in '25, '26. Thank you.

Just to confirm, the electricity sales in retail, you mentioned this was a headwind year-over-year. You had less electricity sales headwinds to EBITDA in retail. Would this repeat also in the second half, I would guess? So would you have a similar, this EUR 40 million headwind to your retail EBITDA year-over-year in the second half?

No, no. It's a specific one-off, that we are over. It's the same impact for this year [indiscernible].

So EUR 80 million in total, the headwind -- year-over-year in the bridge in retail EBITDA, EUR 80 million lower year-over-year?

Globally, yes. We check, and we'll come back. But I think -- thank you.

[Operator Instructions] The next question comes from the line of Elodie Rall from JPMorgan.

Maybe to start with, if you could give us your views on the potential impact on ADP from the current political changes at the moment in France. If you have different scenarios in mind or if you think that there is no impact to expect whatsoever because the share price reacted a little bit on since the snap election. So what could be the bear or bull case scenarios? Second, if you could give us -- if there is an update to give us with regard to discussions with the regulator on tariffs for next year, and potential agreement on the regulated WACC and the potential ERA 4. And if I can squeeze in the last one is technical, but you -- the GIL and GAL noncash expense. When do you think you'll give it to us?

So Augustin de Romanet speaking. I'm not sure that the political situation will have a short-term big impact on the company. On the day-to-day life, we have relationships with the department of -- Minister of Finance, who looks after public companies whose name is [indiscernible]. We have very, very good relationships with them. And all our external projects for growth, all our transformation projects are discussed at a technical level. So I do not fear any problem with the political situation. To be frank, the load problem perhaps could be for the government to choose a new CEO because as you know, they've decided not to pursue with myself. And so my wish is that they will be in a position to choose the good person for the 1st of January 2025. But except that, there is no fear to have with the political situation at all. For the second question, I give the floor to Philippe.

So for the question of regulation, so in fact, for the moment, in terms of regulation, we have more clarification for the regulatory framework in terms of level of WACC, when you read the last decision, we have some color about that. And we can expect a WACC minimum at 4.5% without an economic regulation agreement. Perhaps a little bit more when we have an economic regulation agreement. But the calculation of this regulatory WACC, it's globally in a good way to have a strong dynamic in the next few years. The second element of the regulatory framework is moderation of tariff. The law applicable for the appreciation of the moderation criteria in the regulatory tariff increase was changed at the beginning of April. It's more flexible for us because it's possible now to appreciate when we have an Economic Regulation Agreement in some moderation on average during the regulation period. Finally, in terms of cost allocation system, we are still reviewing the allocation key. We've changed until the end of transitory period in 2025. So globally, we worked also on our investment plan. We have some clarification in terms of -- and visibility in terms of traffic increase. So we can try to have all the elements, all the item once we can have some good visibility to start as soon as possible to work for new economic regulation agreement. But be careful, when we start to work, we cannot sign an economic regulation agreement before 2 years after. So -- but it's a little bit early to work for the moment on an economic regulation agreement. However, we could be looking to start internal works on this topic possibly later this year or next year. Your second question about the merger between GIL and GAL, perhaps just to summarize and to clarify the impact. It's a noncash expense to -- and it's expense to be booked at the merger correspond to 2 main elements. So first, it's the dilution in economic interest due to the repayment of -- the payment of liquidity premium and the offset of the [indiscernible]. And the second impact, it's the integration of the asset of new deal, a new deal excluding GAL whose net value is expected to be negative and strongly negative at the date of the merger. And this negative impact is driven by the FCCB fair value. So [ the amount ] will be estimated again on the effective merger date. This is why we cannot be more specific at this stage. It is likely to increase significantly, particularly in view of the deal stock market valuation. So be careful. We expect strong impact due to good news that is the [ full ] increase in terms of market valuation of the current company GIL Infrastructure Limited, but mechanically it's a new company. This one-off will impact the net results which is the basis of calculation of dividends. But nevertheless, our dividend policy also include a flow of EUR 3 per share to protect our shareholders from such one-offs impacting the net income. So to summarize, we have a strong -- probably a strong impact. We have to calculate this impact at the effective merger date. We -- it's a noncash impact, and we don't have any issue for all our shareholders due to the flow of EUR 3. But all in all, with this good operation, we can [ resell ] a strong value and to [ resell ] is the fact that 4 years before, we bought for EUR 1.3 billion 49% of GMR airport. And we -- when you see the value for GMR Infrastructure Limited, we can see that we have a huge jump in this valuation. Thank you.

[Operator Instructions] The next question comes from the line of José Manuel Arroyas from Santander.

I wanted to ask you about your willingness and ability to sell fully or partially a stake in GMR Airports when the merger is completed. And considering that ADP wants to keep Board representation and influence and governance over the company, what is the degree of flexibility that you have to sell partially your stake? That's question number one. Question number two is how much will you be paying for this new company, Paris Experience Group, that you have told us about today? And lastly, I'm sorry, three questions. It's about the infrastructure tax. Do you think there is any scenario where the French constitutional court could prevent airports like ADP to pass on the tax to the airlines and still the tax be maintained?

Thank you, sir, for your question. About our will to sell stake in GMR, I must say that we are a long-term investor aiming to have a confident link with the GMR family. It means that the transition to make a [indiscernible] or to make a prevalue with this stake is there. It would be a lie not to reveal to you that all the investment banks of the planet are offering us to sell a part of our stake. But on the long term, we are sure that even if the level of the stake is quite high today, there is still room for improvement. And there is still also a need to build confidence with the family. So we want to stay at a very good level on GMR Airport company. And today, it's not on the table to go down in the capital of this company. But it can change for you for sure. But your question is for today. And for today, our intention is not to sell. Second question, Philippe?

Your second question is about the price of Paris Experience Group, so regarding this price, we have agreed with the seller to keep it confidential. So we cannot disclose, but we can say that we have the capacity to create a strong value through this new asset if we close definitively this good opportunity to create some synergy with other activities of Extime Paris. We as a marketing of VIP hospitality [ product ] and communication. We have also the capacity to improve our experience through premiumization and enrichment of the experiencing offering. All in all, we disclose all the details when we close the operation. Your last question is about the infrastructure tax and the constitutional court. So the constitutional court, it's about the tax. It's not about the capacity for ADP to rebalance the regulatory framework. So globally, the pass-through, it's a mechanic pass-through due to the fact that this tax is a regulated OpEx. So it's regulation rules. And it's -- obviously, it's not a -- it's not an issue. And mechanically, we have the capacity to offset the -- this tax in the regulated part of the tax. That is the key. Thank you for your question.