Agora S.A. (AGO) Earnings Call Transcript & Summary

Good morning. I hope that you can see and hear us. This is a meeting devoted to the financial results of Agora Group in Q4 2022 and the whole 2022. My name is Bartosz Hojka and I'm President of the Board of Agora and it is a pleasure to welcome you together with the remaining members of the Board. We will, as always, start with a short presentation, and then we will answer your questions sent to us electronically or via a special online form. Electronic questions can be sent to us. So the press at Agora.pl, you can always contact directly Krzysztof Mazur, who is Manager for Investor Relations of Agora, who is at your service. And he will also be a host of our Q&A session today. Today after the presentation, all the members of the media are also encouraged to contact Agata Staniszewska, who is the press spokesperson of Agora. We will move on to the presentation now, and let us start with our presentation of the market environment. Advertising market looked very positive in Q4 2022. The value of this market was higher than before the pandemic. It went up by 16.5% as compared with Q4 2019. The market growth looks even better from the perspective of the how 2022 total value of advertisement spendings of the year went up as compared with the previous year by 4.5% and as compared with 2019 by over 12.5%. In particular, I would like to draw your attention to the high pace of the recovery of Outdoor because it is a big advertising business as far as turnout. In the cinemas is concerned, Q4 of 2022 did not meet our expectations. The same goes for Q3 of 2022. Unfortunately, the turnout was lower than the year before, although in the state of the whole year, it looks differently. We believe that the total turnout of 2022 was almost 23 million viewers. It is the result higher by almost half as in 2021, but there is still a big difference between the best history pre-pandemic year 2019. We count on the higher number of Hollywood premier, so for 2023 will influence a higher number of viewers in the cinemas, but we can see certainly a slower pace of the recovery of the cinemas than we assume that we believe that the recovery of turnout in the cinemas after the pandemic will take a few years. Last year, the value of advertising spendings in Poland went up by 4%. So it was as compared with our estimate, which was between 3% and 6% and we also presented a new estimate for 2023, and they are more cautious. We believe that the advertising market will grow at a pace between 2% and 4%, although now from the perspective of a good beginning of the year, we are more prone to believe that it will amount to the upper ceiling of the brackets that we are talking about, the highest growth should be noted by cinema advertisement, outdoor and Internet advertisement. But we expect that there will be the decrease of spendings for press advertisement. And now let me move on to talking about figures in Q4 and in 2022, the financial results of Agora Group were under the influence of 4 macroeconomic factors. First of all, euro exchange rate, mainly in the segments of Book and Press, high salaried pressure as well as the increase of energy prices would influence the cost in all the areas of productivity. Moreover, growing interest rate and exchange rate of currency influenced our net result. In Q4, there were also significant one-off events, in particular, the write-off updating the value of the company in Digital and Printed Press to the amount of almost PLN 43.5 million. The revenues from advertisement were lower mainly to the lower result of Yieldbird, the value of revenues from the publishing sales went down by a little bit below 2%, mainly due to lower revenues of paper version of Gazeta Wyborcza with the growth of revenues from digital subscription. The results of Agora publication of books went up, cinema activity noted the decrease. So we've had lower revenues from cinemas and [ bars ]. The revenues from food and beverage and film activity was higher mainly which -- it is connected towards the growth of the number of Pasibus as well as the success of Johnny, film that brought almost 1 million viewers in the cinemas. The Outdoor results were similar as the 2021. The greatest impact is due to the sales of Printing Services. Net operating result was higher in Outdoor segment, onset of Internet. One-off events had negative impact like write-offs updating Gazeta amounting to over PLN 47 million in several segments, mainly in Digital and Printed Press as well as Film, Book, Outdoor Advertising and Internet. The cost of restructuring conducted interest in cinema activity. And here, the total provision amounted to over PLN 5 million as well as the write-off for the receivables of 1 of the contractors of other advertising, PLN 1 million. Third-party services were lower as compared with 2021, mainly due to the decreases in Internet, Film, and Book. However, the value went up in other advertising credo Printed and Digital Press. We also noted the growth of cost of remuneration and benefits for the employees of Agora, mainly in Internet, Radio and Outdoor Advertising. It resulted from higher employment and higher fixed salaries. However, the growth of cost of use of materials, energy was mainly connected with the growth of energy prices and the cost of acquisition of products for Cinema and Food and Beverage activity as well as the growth of cost of materials, mainly Paper. The cost of depreciation was lower. And we know that this in almost all the segments, except for Digital and Printed Press and Radio. Q4 was the period of the higher cost of representation and advertisement. The growth was noted here in the Radio, Film, and Book, Internet and Outdoor Advertising. However, the cost of advertisement was lower in Digital and Printed Press. We also want to draw your attention that significantly impact on the results of Q4 was due to revenues and financial costs. The positive impact is connected by amongst others exchange rate differences. And that is connected with leasing and that it was the cost of credit and leasing as well as the update of the valuation of the put option. Now a few words about one-off events that influenced the result of the group in 2022, when we compare these results with the data of 2021, one should know the significant impact of such events that took place throughout the year, but in particular, in the Q4, we summarized them in the slide that you can see this in your screens. It is also available in the presentation prepared for you, which can be found on our Internet site. In this slide, we collect all the one-off events. And I only want to say that your total value in Q4 amounts to over PLN 53.5 million and throughout 2022, PLN 41.5 million. In these slides, we are now going to talk about activity of individual business segments. Traditionally, we are starting with the largest business, in the Capital Group of Agora which is Film and Book. In Q4, the revenues of the segment were lower as compared with Q4 of 2021. And this is a direct result of the lower turnout in the whole cinema market, and I already talked about it. However, in Helios, was higher than in other parts of the market. Year-on-year, the sales of advertisement in the cinemas and revenues from film activity was higher in Q4. The Audience Award and production of our subsidiary, Next Film's Johnny, about Priest Jan Kaczkowski, Directed by Daniel Jaroszek, which turned out to be a hit. And the second most popular Polish film in 2022 -- by the end of 2022, almost 1 million viewers. So the production, 22% as compared with Q4 2021 is the increase of revenues in food and beverage is connected mainly with the higher number of outlets. We have now 12 in the Step Inside company. But it's also worth noting that as far as food and beverage is concerned, just as in the cinemas the last year's result has been baseline for comparison or burdened by the outcome of the pandemic. The revenues of Agora publication went up by 8.5%. Operating cost of Film and Book in Q4 went up by a little bit lower than 4%. The negative impact was the write-off in that period in connection with the loss of value of fixed assets connected with the activity of Helios, amounting to almost PLN 3.5 million as well as the cost connected with the restructuring in the company, which amounted to almost PLN 2 million. The highest cost category is a third-party services in Q4, it went down as compared with Q4 2021 and is connected mainly with the lower cost of acquisition of the copies of the films. The remuneration and benefits for employees went down slightly in connection with the cinema employment, but there was higher cost in food and beverage employment in conducting the development of Step Inside, which is the operator of Pasibus restaurant. The growth of the cost of the use of materials and energy was connected with higher inflation as well as the increased scale of food and beverage activity. We also further noticed several positive strengths, which we noticed in cinema and film activity. We kind of see that the best turnout out of 10 best Hollywood films in 2022 is higher than the average turnout for 10 Best Hollywood productions in the period 2017-2019, and it shows that viewers are even more linked towards big American films and then before the pandemic. And as I already said, in 2023, there is going to be a growing number of such films. People in Poland do not forget about high-quality Polish cinema and the testimony to this may be the success of our film Johnny. And Next Film which is a subsidiary of Agora, they produced and distributed this film, can also block with another achievement for the first time next year has the highest percentage share in the distribution of Polish films out of all Polish distributors in our cinema market. Now let us move on to the discussion of Digital and Printed Press. In this segment, in Q4, the revenues from the sales of subscriptions of Wyborcza.pl went up. However, the total revenues of Print and Digital press were lower mainly due to lower sales of advertisement in our paper version. The sales of Gazeta Wyborcza in traditional version went down slightly. The revenues from printing services went up. Operating costs of Press went up mainly due to higher prices of Paper and the cost of production, the cost of remuneration also went up due to the higher fixed remuneration of cost and as the depreciation was also higher. There were one-off events would influence the results of the segment, which is the cost of restructuring as well as the right of updating the value that I already talked about earlier. It is worthwhile noting that in Q4, revenues of Digital Gazeta Wyborcza was almost 33.5% of the total revenue from the sales of the daily. It was a big milestone to exceed the 300,000 active subscribers. And at the end of December, about 104,000 active subscribers. Now Outdoor advertising. In this segment, in Q4, the revenues from the sales of advertisement was higher than the year before, it went up by over 18%. The positive dynamic was influenced mainly by the campaigns for citylight, digital, and backlight. And this is also important that there is high revenues on city rate, means that there is a tent of adverse trend connected through the pandemic, we are very happy. It's one of the main products that we offer to advertisers. The operating cost also went up in all the categories of spending except for depreciation, and it was mainly connected with the higher cost of functioning and development of inter digital platforms as well as the increase of the cost of repairs and overhaul. The cost of execution of campaign also went up, fixed remuneration and variable remuneration also went up due to a better execution of sales that we planned and the growth of other presentation and advertisement in Q4 is mainly connected to patronages and sponsoring. In Outdoor advertising, we can see many positive trends. We note mainly the growing popularity of digital platforms where the higher revenues from Digital platforms in Q4, we can see the 50% growth as compared with Q4 2021 of AMS. And now a few words of comment conducted with the result of Internet. In Q4, the total revenues of the segment were lower by 1/3 as compared with the year before. It is mainly connected with the difference of the sales of Internet advertisement by Yieldbird, mainly in connection with the tent of the portfolio of customers and focusing on those with the higher profit margin. And now as far as the advertisement sales in Gazeta.pl, it was higher than 2021. The operating cost of segment was lower mainly due to lower cost of the lease of the advertising space by Yieldbird. Remunerations and benefited for employees went up due to the higher fixed remuneration and commissions in the House segment. In Q4, Gazeta.pl continued optimization to improve the quality of traffic, including on mobile devices. Now Gazeta.pl, thus as in the previous quarter, is the leader of programmatic market from the perspective of the viewability display. The position of key thematic portals is strengthened. PL is now in the lead in Poland, taking the first position amongst portals on this category. Kobieta of Gazeta.pl is taking the second position amongst all the services for women. Well, eDziecko Gazeta.pl, and PLOTEK are taking the first position in their categories. Yieldbird's team is also developing marketing automation instruments. We consider growing significance of the sales of services in the SaaS model because it is very high margin generation model. And now we are moving on to the last large segment in the group, Radio, in Q4. Revenues of Radio were higher by 12%. The dynamic growth is noted in the revenues of Radio advertisement. We also noted the growth of revenues from the advertisement in the cinemas as well as the subscriptions of Radio TOK FM. The operating cost of the segment went up. The highest cost category was third-party services connected with the agency of advertisement of Helios. While the remuneration and benefits for employees went up due to higher employment. An important achievement of Radio is undoubtedly overcoming the number of 30,000 of subscribers of premium TOK FM, which we achieved at the end of October 2022. At the end of the year, the number of subscribers was 32,000 with 22% growth as compared with the end of 2021. We also want to stress that Radio stations of Agora are very popular, especially Radio TOK FM, which is the first and most popular radio in Poland and all the stations from Agora Group at the end of the year had 8% of the market share, which is the record higher result in the whole of history of this business segment. As we are also very happy that in general, Radio as such continues to be 1 of the most popular media in Poland. It makes us happy, especially in the context of our investment because an event which opens up totally new prospects for the Radio segment as well as for the whole Agora Group is undoubtedly taking over control of Eurozet Group. On the 27th of February, the court of appeal dismissed all the charges of the [indiscernible] office and maintained an unconditional consent to take over control over Eurozet Sp. z o.o. It is an important verdict, not just for us, but I believe that it is important for all the businesses because for the first time, the court announced a decision taken by the authority for the protection of consumers and competition. It is the valid and binding verdict would allow us to purchase 11% of the shares in Eurozet. Thanks to this transaction having such stations as Radio Eurozet, which is one of the 2 commercial Polish stations and Radio which is kind of the second largest radio group in Poland with high aspirations to take a position of leader in the future. At the same time, Radio segment became the largest media segment in Agora Group. And now a few words of summary. As far as the prospects for the coming months is concerned, we are still having to do with huge uncertainty and unpredictability of macroeconomic factors. But when we look at the advertisement market, we assume that this market should be relatively stable. Certainly, it will depend on the condition of the whole economy dynamics of GDP, but our assumption is that this market will grow. But undoubtedly, the dynamics of growth will unfortunately be lower than the expected level of inflation. We also assume that there will be continuous growth of turnout in the cinemas as well as the gradual recovery of this market. However, the dynamics of the development of this market is going to be lower than what we assumed halfway through 2022. We expected that the recovery of this market will take a few years. We also want to focus operationally on consolidation of our registrations with Eurozet Group. We can see great space for mutual synergies, which will allow us to strengthen in the Radio market and in the future become a leader in the market. We also want to increase effectiveness as a group that is why we presented to general assembly of shareholders, a tough plan of separating from Agora SA, Gazeta, we bought Gazeta.pl and Publishing House Agora. And selected sections of subsidiaries, where Agora is going to have 100% of shares. On the 27th of March, the discussions of the general assembly of shareholders is going to be resumed, and it will decide about the beginning of this process. Moreover, very consistently as previously, we are going to develop our digital offer. This is everything that we prepared for you. In the presentation, obviously, additional also very interesting information can be found in the attachments and I would like to encourage you to get acquaint with them. And now let us move on to your questions. And now I would like to give the floor to Agata Staniszewska -- sorry, Krzysztof Mazur, who is going to moderate this session.

Thank you very much for this address. My name is Krzysztof Mazur and I am going to now to read Q&A session. We have a few questions. I'm going to present them to you now. I believe that we can answer questions about Helios cinemas. And these are questions of Tomasz Jagiello, Member of the Board responsible for this segment. How does Helios evaluate a situation throughout 2022? How many tickets were sold especially as compared with 2021? Was it possible to return to the level of sales from before the pandemic, what award the biggest cinema hits in the past year?

Good morning. This is a question which is not difficult, but at the same time, it is not really very optimistic because 2022, it is the first full calendar year when Cinemas could work after in 2019. However, the first 2 months of the year were under quite severe constraints. For the first year, when we can evaluate the condition of the cinema sector after COVID. The number of tickets are sold in Helios are 10 million versus 14 million in 2019, when 14 million tickets were sold, and this is the best year in history. We lost about 4 million tickets because it is about 30% of turnout, and this is a measurable picture of the losses of the market. I have to say that it is not only about the loss in Helios, it is the loss in the market. In the Polish market, about 35% fewer tickets were sold throughout the year. And this is also presented in other parts of the world. This is how much we lost in the sector. 2022, the second part of the year, was the time when the sector had very similar results as in 2021. We have to assume that the post COVID recovery, which was announced quite optimistically to take place in this year or in the coming year, it's not going to happen so fast. There must be many reasons for that. One of the basic reasons is that there was a decrease of Hollywood productions by about 1/3, but the number of new films goes up and the announcements are quite optimistic, but some of the films go to the streaming platforms. But first of all, it is about allocation of production, resources and engagement of authors, actors, directors, sets, editing studios, special effects for the production of TV shows or films, for VOD platforms. At that time when we have a big streaming platform wars for their place in the streaming market. And the result of that, fewer films go to Cinemas. It is optimistic that all the biggest films go to the Cinemas. It is also optimistic to see that blockbusters got the results either identical or even better the results from the time before the pandemic top 10 of the films of 2022 coming from Hollywood would have got higher results than top 10 films from the period before the COVID. So if the film is a blockbuster, and for global promotion, we do not see any loss of turnout. 30% of the cost that we lost, like the average operator, the 1 with less popular from the group of the films, some of them went to the cine platform and the big loss is also connected with the national domestic production. Here, contrary to Hollywood, where we can see 30% fewer films produced in our national production, many, many more films were produced, 74 films produced in 2022. But largely, these films had limited budgets without significant ambitions as far as the subject is concerned or the plot, many of them went to the platforms. And this is how Polish film sector lost the dynamics and the interest of viewers we had in the previous details. So we have 70% loss of interest in the Polish films. And largely, it is the market of the Polish films, which is responsible for the decline. Whatever the causes we are having to do with the weakening of the market, and we have to accommodate whether the new situation. The turnout in Poland in 2022 is the turnout that we noted in 2014. We may say that we are 8 years back. No one would have said that, that we are in a core situation, we were happy with overcoming the year of 40 million tickets, but the number of cinemas was smaller. So we are having to do now with the situation on the infrastructure for 60 million viewers, is able us to sell tickets for 40 million. So there may be some verification whether all the cinemas are necessary in the market or perhaps there is a surplus of them, but it is not the worst thing which may happen to this industry. Let's hope that we are going to see gradual steady recovery of turnout. That is why, optimistically, we are counting on 30 million in 2023. That was translated into 12 million viewers in Helios. So this is the help that we care. But as I want to note, there's an optimistic approach. Ticket prices went up like it is the case of most consumer businesses, we can see systematic growth of cost, and we try to respond properly to this, but we keep low-cost tickets for our viewers, the possibility of buying cheap ticket in presale. And we believe that cinema is still cheap entertainment and prices of tickets should not eliminate anyone from this entertainment. Is it enough or should I add something to that?

It has actually been exhausted. The next question also goes to you. The weaker results of Helios, were they also the result of streaming platforms where many Polish productions are present.

I think that I already touched on the subject, but I can speak more about it. But it's a unique situation in Poland. For the last 12 months, we've had the launch of 3 large streaming platforms, which is HBO, Disney and SkyShowtime for production of Universal and Paramount. These platforms compete against Netflix for the position in the market and also with several other platforms like Prime or Apple. So, we are having to do with competition for attention and money of subscribers and huge advertising spendings. It's not going to take a long time because no one can keep [indiscernible] for a prolonged period of time, but it -- that are enough just to put the advertisement of streaming platforms over the skyscrapers also, but this streaming sector is actually very much engaged in the war. And it is more difficult for the films. It is difficult for the cinema films to actually make their presence in the awareness of the viewers. When this is happening against the background of the war of streaming platforms, we can see that producers or large studios already know and they changed their decisions that it is cinema that continues bringing profits and streaming platforms bring losses. Shareholders of the larger studios already now say we do not want to finance platforms that bring deficits. We want to have more films in the cinemas, and we can see this in producers' decisions. So the future is optimistic, but it seems that there are a few more years to come or the streaming market will have to stabilize, and we will see the winners and the number of productions will be sufficiently large to give the good turnout for the cinemas. As far as Polish films is concerned, the situation is totally different. We have 74 films and 74 producers. And here, we are having to do with individual decisions, whether the film goes to the cinema or platform, how large the window is and we are having to do with the confusion. Viewers do not know whether it's the same film or a different one, advertisements are actually mixed up. Many films are about love. We do not know whether we are supposed to switch on Netflix, Amazon or go to the cinema. The product may have a very similar quality. If I can see this on Netflix, why would I go to the cinema? So I believe that in this area, the area of communication, reaching recipient platforms do harm, in terms of access to resource, artists, sets, money, promotion. This is a strong competitor, but I'm quite calm as far as reaching awareness of recipients and long-term ability to reach consumers. We are still here talking about out of home entertainment in competition with home entertainment. Linear television is the main victim of the development of streaming platforms. As far as film consumption is concerned, we want many more films on platforms than linear TV cinema, social entertainment. Leaving home is the time when we decide to go to the cinema. So here in long term, I do not think that streaming platforms are going to be a big threat. If a human being doesn't change, if human beings want to go out and go for a date, so not in this sense, but in 2 other senses, we still need a few years to recover stable situation of cinema business.

Thank you very much for your answer. One more question about Helio Cinemas. What are the forecasts of Helios for the current year? Do you plan to open? And in your cinemas, you want to close down any of those that you have?

As far as that turn out forecasts are concerned, I already talked about that. This is an optimistic assumption. We are going to have 15 million viewers in the Cinemas. So something in between 2019 and 2022. And compared to our encouraging, we have very nice Hollywood productions. Tom Cruise is coming back. So I think that we are going to have the best part of that series. Very many nice films are coming to the screens. But optimistically speaking, PLN 50 million in Poland, PLN 12 million in Helios. This is our turnout assumption. As far as the investment is concerned, this is not the situation when we think about organic growth. As far as the opening of the Helios cinemas is concerned, if anything like this is happening that results from the contracts which were signed before COVID and those that we have to execute. This year, we opened a cinema in the [ Warszawa ] last year. And this year, we are opening Cinema in Koszalin. But I want to note this is a decision that was taken a few years back, and we are committed to execute it. We are not thinking about new premises. We think that when we can say that we are resuming our investment activity, it will be rather about the development of the chain and development of already existing cinemas, with that acquired hopes with [indiscernible] Dream. It returned one to the level of sales from before the COVID, so were the concerts. This is something which is the investment plans. I don't think that the market needs new cinemas. As far as closing down, cinemas are concerned, you were asked in a question about -- it may apply to the cinemas that will be gradually losing the hope or terms of being profitable. There may be several cinemas like that in Poland, it is due to the drop of turnout. I do not see many such points in our time, but we are working the economics of different premises. That is why there is a question whether in connection with the fact that some of the cinemas are in the markets where the number of cinema rooms is still high. It's quite important how the owners of the shopping malls will approach it. Will they prefer doing an with the cinema and replace that space with some sales space or they will want to keep the cinema but they will have simply to accommodate to the fact that the business model is different and such revenues from rent cannot be achieved in the future. Certainly doesn't apply to the whole country. It applies simply to those markets who were before 2020. There were too many screens, too many cinemas. As it is the case, the market in capital is must. Someone must lose and this is a normal phenomenon. Today, I am not ready to say that Helios is going to close down some specific cinema.

Thank you very much for your answer. Now there are going to be a few questions of Wojciech Bartkowiak, who is responsible in the Board for the oversight of Press. So the first question when Plan D company is going to take over government publishers, does Agora plan together with other publishers to appoint, as represent that is to the Board of government or the changes in its Board.

As far as Plan D is concerned, taking over shares will take several weeks or months. There are legal causes of that preparation of such a takeover of shares will still take some time. It's the procedure. All the decisions have already been made. But as far as the Supervisory Board composition is concerned, the owners will decide it. After the event of the previous year, it would be natural for publishers to have some representation in the Supervisory Board. This is my opinion.

Thank you very much for your answer. Next question. Is Agora afraid of censorship of the state chains of press sales Portola or PK [indiscernible] and Orland as it was the case this week when the addition of near-weekly was withdrawn from sales. Does Agora have any scenario prepared in case of the reduction of Gazeta Wyborcza from sales?

The very fact that such a question is asked at our meeting today is quite sad and terrifying in a way, but I can say that 1 year ago, I would say that I -- that we are not afraid of that. But as it turns out, the authority of [ Mesa Street ] moved to the suburbs of ports. So this question is justified. And unfortunately, it is justified because the events of the previous week testify to the fact that the appointees of the rolling party are capable of doing anything, including violation of constitutional provisions. So that is why -- well, I take this question seriously. But as far as our preparation is concerned, fortunately, the market of distribution and the chain is quite diversified. And moreover, I have been in this segment for over 30 years now. So we have very rich experiences how to respond in such crisis and how to cope with the distribution. And our readers have also experienced how to read Gazeta Wyborcza when our problems to do that. And I am sure that we are going to handle such a situation.

Next question. What about the Wysocki [indiscernible] Foundation. Is it still operational, who is in the Board?

Wysocki [indiscernible] Foundation does not operate now in practice after the -- so far President gave up, we simply summarize the activity of the foundation. We review the documentation and within 1 month, roughly 1 month from today, we will decide what we are going to do with the foundation. I think that 1 month is, don't [indiscernible] it.

And my last question about Press. What are your expectations pertaining to the number of new subscriptions of Wyborcza.pl that you want to get? What are you counting on for 3 years?

Well, the 3 years, it's a distant deadline. But I would like to say that now we do not set quantitative targets returning for the number of subscribers for a few reasons. The first reason is that we -- as a subscription business, which is already a mature subscription business, we are more focused on increasing ARPU and increasing revenues. This is what we are focused on. When we presented the previous quarter results, we observed some cycle here. Subscription offers change at the end of the year. At the end of the year, there are more promotions, There is Black Friday, Christmas. So -- in Q4, the number goes up. There will be quarters when the number will go down. What is most important from the perspective of the subscription model is concerned, the most important parameter is that we see as a growing revenues and growing mean gain of subscribers, and this is our most important objective in this business model. We are not setting a target as it was the case in the past when we started this. When we wanted to start from scratch and get to 200,000. Now it's done. We do not forecast now any specific number that in 3 years, we are going to have an x number of subscribers.

Thank you. Now your questions of Bartkowiak, President of the Board of Agora Group. First question. After the potential the separation of Gazeta Wyborcza and Gazeta.pl, do other companies do take into account the sales of these companies?

No, we are not taking this into account.

Next question. Here is the question. When will the short DRA and Eurozet advertising offer available?

According to the announcement of Eurozet Board, it should be ready by the end of March.

Thank you very much for the answer. Next question about Eurozet. According to the announcement by the end of March, the trade proposal of DRA and Eurozet is going to take place. What is going to be merged later in newsrooms, for example, what do you expect synergy? And what is the amount of synergies that was assessed for 2023?

I do not want to speak about any specific figures. As you know, we do not tend to publish forecasts. But there's no doubt that another area after sales is going to be promotion and I think that we can help each other a lot by the presence of Eurozet in the Capital Group of Agora. I can see great benefit and the great potential in cross promotion between our media. As far as further actions are concerned, I want to say that the new Board appointed the operational group of people, which is made up of 10 managers who represent according to the old categories of Eurozet team and Agora Group in all categories because it is one Eurozet's team now. But there are 4 people in that team from the former team of Eurozet and 6 people from the former team of Radio Group of Agora. And they are working on the plan of integration and they are going to consider in which areas, in which lines, these synergies are the largest and most promising. And I believe that these announcements are going to be made primarily first to the employees.

Yes. Thank you very much to that. I have more questions about Eurozet Group of Anna Krynska-Godlewska. The first question. Does Agora intent to buy the remaining shares in Eurozet. In the agreement, it says that the entity appointed by Agora is also going to be authorized to purchase them. Are you already involved in any talks with any entities that could buy those shares?

Yes. Back we intend to acquire the remaining shares. We have to get prepared. To that, as you know, perfectly, well, yes, in the agreement, there is a provision that was missing before that we can also indicate a third party to perform either full or partial acquisition. The objective of that was to make this option more flexible to us and to give us more possibilities, but it doesn't mean that we are talking today with anyone about the scenario. But we will certainly want to take over the remaining shares.

Thank you very much for the answer. Next, has Agora assessed how much money was lost on banning the acquisition of Eurozet by the [ Agora's ] office 3 years ago?

Now we did not estimate it, and it is not easy to estimate, but we know that those losses are significant. And they are mainly connected with the lost benefits. Had we been able to take over the control for a few years for 3 years? This year we would now be the owner controlling Eurozet, and we would have a chance to have a good synergies much earlier. However, we are going through things. what to do about it? and how to proceed.

Thank you very much for the answer. Now have your questions of President of the Board. How did 2023 start for your -- what segments are a positive surprise?

It started well, and I can say that all the segments are a positive surprise. First of all, the beginning of the year is very good from the perspective of the advertising market dynamics. It is better than what we expected. So at least the first 2 months of the year gave us reasons for satisfaction in the advertising market. But we do not rule out any turbulences in the coming months, especially in the second part of the year. You know our forecast as far as the dynamics of the advertising market for 2023 is concerned, and now on the basis of the top first month, we do not want to exiterate with optimism. But answering your question at the beginning of the year at the advertising market is good. Same goes for the cinema market. January was a very good month. It gave us reasons for satisfaction from the perspective of turnout and first of all, financial results achieved by Helios. As far as February is concerned, turnout here is not as good as it was in January, but we are still happy with good financial results. In general, the good beginning of the year.

Another question, it is about separation of ZCP. The Board prepared the draft plan of separating the companies from Agora. Now what is the timetable and your expectations of effectiveness?

Let me start with the second part of the question. We believe that it is going to be positive. We want to harmonize the management. Some of our companies, our subsidiaries, our business lines are under Agora. I say we have a very good experience is connected with the effectiveness of management of those businesses with our subsidiaries of Agora, we would like to translate these experiences into all main business lines of the group. We also would like to introduce order and make the support of all our businesses uniform because it is different and different undertakings of ours today. And that is why we expect that we will achieve benefits resulting from optimization, introducing order to this area. Talking here about assured services or back office costs. As far as the timetable is concerned, in the draft resolutions, we draft -- we asked general assembly of shareholders to agree to execute this process which is to take up to 18 months. Our aspiration is that this process is a little shorter, but it will definitely take not less than 1 year.

One more question about the future. In the letter to shareholders, you talked about optimism. You trust amongst others, the work will to increase value for shareholders and increase financial effectiveness of the whole organization. Can investors share hope that Agora is at a turning point after many, many years of all these continuous turbulences?

We trust that we really are at such a point when fulfillment of those ambitions and objectives is possible. We believe, and our position is that increasing value for shareholders, improvement of profitability of the group are the most important objective is the most important guidelines for us when we take into account situation in which we are, after really many years of turbulences. Let me repeat the line from the question. We have a feeling that for the last 7 years, well, it is an uphill struggle. We are operating under a big political and economic pressure because political pressure, in the case of media in Poland, there is mainly the pressure on publishers and broadcasters. Economic pressure is mainly connected with undercutting financial stability of media business. A few minutes ago Wojciech Bartkowiak asked a question whether we are not afraid of censorship by one of the largest distributors in the press market in Poland under these circumstances. And we have been actually answering such questions for a few years. Every several months, we have to oppose different legislative initiatives that are to exert additional pressure on the media market. We have to switch off our TV screens, we have to protest against illegal attempts to take away licenses to broadcast from large Polish broadcasters. So this is a legal and legislative situation under which we have been operating for 7 years now. Secondly, for the last 7 years, we have been boycotted by the state companies and public administration, even in the COVID period, the government that published paid announcements in other media with warnings connected with COVID, the government did not really address media of Agora. They believed simply that our viewers -- our readers couldn't get COVID and that is not going to be a problem for the government. We are under the pressure of the average of [ slabs ], those court actions that are to give the freezing effect on our outlets and our journalists. And it also leads to financial consequences because, first of all, it takes time to deal with those court actions. And secondly, it is about money. Secondly, we are also subject to dozens of different inspections by different regulators different authorities that are also very difficult for our teams. They take time and effort. And we are also subject of illegal actions of regulators. And here, I would like to quote the illegal decision of the antitrust office, which almost 4 years ago, actually denied us the possibility to take over the majority share at Eurozet and we lost a few years. And it has been just mentioned, it is the loss benefit resulting from the fact that already a few years ago, we could have executed synergies connected with merging the potentials of Eurozet and radio group of Agora. And first of all, we lost a lot of time and money for the court battle with the authority. And we also were hit by COVID. And here, I would like to refer to what was mentioned by Tomasz Jagiello, mainly the cinemas were closed for almost 2 years. When they were open, their limitations were so severe that it would have been better if they had been closed. And today, we see, as Tomasz said, that the recovery of this market is slow, is tedious and is going to take a few years. AMS was also hit. It is our other advertising company. And here, fortunately, we consider the whole advertising market is really net group and advertisers really love outdoor advertising. They were very happy to go there back with their budget. And you can also see this in the dynamics of Q4 as well as the whole previous year. And we also had some internal turbulences in the capital group. But I have a feeling, and I also tried to express it in the letter to shareholders, that it is a turning point for us now that we have just executed a lot of historic investment of Agora in the media. In certain area, where we have significant experience, where we feel strong, where we are highly competent, where we are successful, where we have great synergies and where, as I said, we can really get the support in terms of promotion, it makes us stronger. It opens asset or new prospects to new possibilities. Also the prospect for the growth of value for shareholders as well as the improvement of results. And we also have a good idea for the reorganization of the company, which we submitted to the general assembly of shareholders. We have an idea for better management model of the company, for a more effective model would be more economic for the group. And this is also an idea for the -- for allowing individual development of those businesses, which are part of Agora S.A. today. So it also opens up new prospects for them. So I have a feeling that after 7 years now, it is now the time that we deserve, which is 7 fact years.

And there's another question about ZCP. If you do not have any plans of sales of the separated segment, so is it possible to get minority shareholders for them?

Yes, we are taking this into account. I would even say that it is one of the important objectives of the operation. We are simply proceeding on the assumption that in the current market situation, the strategic situation of Agora, it is important for these businesses, which are part of Agora S.A., could execute their individual strategies of development. And to this end, we take into account that it would be most probably beneficial for them to attract investors or business partners to execute these plans or these objectives.

And now a few questions for Wojciech Bartkowiak and these questions are about press. A question for a member of the Board for Press segment. So what is the priority in changing the way of operation of the segment for 2023 and coming periods?

As far as our segment is concerned, this objective is quite clear. The strategic objective, what we have to focus on in the coming years is the redefinition of the business model. Doing it in such a way that a dominant element in this business model is the sales of content and digital revenues. This is the direction we are going to focus mainly on, and this is quite common. Last week, there was the subscription summit of the biggest publishers from all over the world. In Stockholm, the direction is very clear. This is the direction which is taken by publishers not only similar to us, but also smaller ones and those that have a slightly different nature. The transformation of the model takes total greater focus on recipient on reader. And in the case of mature businesses, it requires greater focus on the retention, retention in our world and not acquisition. And this is also about the use of data. It is also about a change of the way of work of journalists. It's about personalizing content. And this is also another huge challenge, it is a greater diversification of content. The whole world of publications is also facing up to the phenomenon of people who are fatigued with information. The war in Ukraine discourages people, discourages many recipients of news and it is true. This is an objective phenomenon. That is why, on the one hand, it is technology. On the other hand, it is content. But in general, this model will have to be redefined and it will have to go in the direction of digital revenues and then revenues from the sales of content. This is our focus. And this is what we are going to concentrate on. Certainly, there is also the other side of it. We have to do it keeping cost discipline and it is also clear for us.

How did you receive the information that Axel announced openly that the company wants to move online fully and that in a few years, paper versions of their dailies are going to disappear?

These questions are connected with each other. Certainly, this is the direction, and it is difficult to challenge it. However, I do not think that these processes are going to take so fast as it is described in the Polish mass media. Some announcements were here presented that Axel Springer announced that within a few years, they are going to close down their paper additions. When I ask you to go back to the original statement of the President of Axel who says that this moment will happen one day, and that the corporation was going in the direction. But I can really bet with you that in 4 years, there is going to be a big celebration of paper version of build, the 70th anniversary of paper version of field. The publication is not going to be finished in its paper version in 4 years' time. The difference is also in that Axel Springer Corporation has a significant share of the revenues from e-commerce. There's also a different structure of Internet market in Germany. There are no strong horizontal portals, as it is the case in Poland. So the position of build the portal is totally different. It was a very interesting statement. It is difficult to challenge the direction it goes into, but these changes may be different in different countries, I'd say. And certainly, it is not going to be a rapid as it was interpreted by some presentations of the statement of President Döpfner. But I also would like to note another element of that statement that somehow is missing. Mathias Döpfner said that with all certainty, as part of that strategy, there will be no weakening of the journalistic part. Just the other way around, he expressed an opinion and what he said that Axel is going to go in the direction of the strengthening of true genuine mission-based journalism. As he's been repeating this for years even when he talked about that transformation, he reminded us his words and I would like to ask you to go back to the original statement.

Thank you very much for the answer. There is another question about Axel, namely, what is your reflection about the change of the market of digital content subscriptions after in 2022 Axel quite aggressively introduced on that premium?

I have to say that this is what we expected. Well, it is also quite natural that this offer is aggressive from the price perspective, but it's a natural practice when there is a publisher who launches that they start a very aggressive price policy, so this was not a surprise. But I have to say that we didn't really feel it in any special way. We didn't really feel in a special way, the launch of a net premium offer. It may simply show that there is some space still available to subscriptions. We are going to watch it. It seems that a more important event in the subscription market with all due respect to publishers like us or Axel was another thing that happened last year in the streaming services. These are different goods, if you will, but the same model. And here, it's about fight for the same wallet. So the launch of Disney was a more important event. The fact that, Netflix slowed down, maybe not as much as in the U.K., but it did slow down. It was the most important. I think I believe that slowed down -- well, us and colleagues from another -- we are not helped by so much so much inflation and the condition of the economy doesn't serve us. But we believe that it is going to pass, just as some other things that we have been talking about here will pass.

Thank very much for your answer. Next question of Tomasz Grabowski and it is about Yieldbird. At the end of the year, you bought out minority shareholders and now you are 100% owner of the entity. You paid PLN 2,215,000 for a package of 4.2% package. A few words of comment, which parameters influence this price of buyout?

We do not want to comment on the details of agreement we entered into with our partners. But I can just talk about the market and the market practice. The price was based on indicators connected with the results of the company. There was another thing which was important to us. We wanted the team of Yieldbird to stay in the company and together with us, developed a new strategic perspective. And we have done that, and that was much more important for us than settlements resulting from the shareholding.

And more questions of Mr. Tomasz Jagiello. The first question, what are your assumptions in 2023 for investment expenditures in cinema segment?

We do not talk in detail about our plans. But in general, I can say that investment expenditures for Helios are going to be about 1/3, 1/4 of what we usually spend on investment and development before COVID. We are -- after restructuring, we are making savings a lot now. Our objective is to payback debt, which went up in Helios in connection with maintaining the company for the period of 3 COVID years. We are very cautious watching every Polish zloty. And our main objective is to payback the debt of the company. And now the investment is going to cover only what is absolutely necessary. I mentioned the opening of the cinema in Koszalin and we are also opening to dream screen in [indiscernible] Gdynia. This is also a contract from before COVID and also necessary investment story cover but greater scale, greater plan, greater investment. This is something that we will have to wait for the period of 2 or 3 years.

And there's another question, what can be the consequences of the changes in the Polish cinema market caused by the liquidity problem of the Cinema City owner?

I want to stress that the liquidity problems of Cinema City known to everyone do not result from the condition of the cinema market or from the quality of management but an unfortunate event, which is a very strong acquisition Cineworld company did before the pandemic, they bought cinema chain's in the pandemic closed them down. So there was the problem of the inability to payback the debt. The implications -- beyond the implications we can see today is financial markets. And without getting into details of the causes of the application for bankruptcy, it simply caused a concern in financial markets, banks, leasing companies and it cast shadow on the evaluation of the cinema sector. As such, I strongly urge our competitors to get out of this process without harm. I am absolutely convinced that there will be no sell-out of the cinemas or closing them down. Cinema City in East Europe has a great standing and great cinema. It's a very strong asset for us, Cinema World company, and we really are keeping fingers crossed for it having a good conclusion.

Thank you very much for that. Thank you for the answer. More questions are going to be asked of Anna Krynska-Godlewska and the first question is about outdoor segment. A technical question about the provision for the dismantling of the platforms for other advertising, which was at the end of their PLN 7.857 million. What is the cause of that? In 2023, should we expect additional events like that?

So let me explain what it is about with the provision. It is the actually update of the estimate. In the previous years, we identified such commitment as something conditional. When we saw that there is some landscape resolution, and in the result of that, we will have to dismantle some of the platforms. We were able to evaluate the cost and we took them into account. But now because we can see that there is a changing of the market environment, and we are able to identify more precisely when such dismantling will take place. And AMS also decided to analyze the cost connected with that as well as the time when the dismantling will take place. So we concluded that we are ready to -- though it's not as conditional commitment but as our conditional liability. But as provision, this is a total provision for the dismantling of the AMS platforms for the coming periods. The only changes that we foresee will be connected with the fact that there will be some variables, some variable conditions. For example, some licenses will be extended or there will be the change of the period, and this will influence the adjustment of that provision. But then gradually as those platforms are dismantled, it is going to be smaller and smaller, and it's going to be depreciated in specific periods. That is why we believe that it is simply a more transparent, more comfortable way for you also as a system of presentation, and you will be able to evaluate it. You can see how we assess the cost of dismantling with results from the current agreement and our estimates of that. I hope that I explained it properly. If you have any questions, in our memo for financial statements, it is memo 2.d and you can read this thoroughly, audit results.

Thank you very much for the answer. And now there is another question about the result of Step Inside company. A few words of comment about the current prospects for getting positive net results for Step Inside.

In 2020, total loss for this company was PLN 4.7 million as compared to PLN 2.8 million loss in 2021. It is necessary here to provide for a general assessment of this investment because we have to say very clearly that from the moment of Helios entering food and beverage segment, our Step Inside [indiscernible] where we started building it in 2.5 years of COVID. And we know that it was not only about cinemas that were hit by COVID. Food and beverage was also hit by COVID. Most of the outlets were opened in COVID here in Pasibus and it's quite difficult to imagine today. When those places were opened, a strong consumer crisis hit. And this is not only about the increase of the cost of maintenance of premises, energy cost of purchasing food, but it's also a problem with the business model in shopping malls, euro exchange currency, rent and Step Inside business model. There's quite strong negative effect connected with the necessity to payback debt that was taken to build those premises. All those premises are profitable. This brand is very popular. It has very good financial results, but it is under a very strong cost pressure. And then responding to the question about profit versus EBITDA, we are convinced that it's going to be positive this year because it is not going to be under the influence of the opening of the new premises. But for profit, we have to wait until the time when the first places will simply payback their debt. And they will simply generate pure profit and will contribute to the result of the whole company. But this is still under a strong cost pressure. It belongs to Helios Group and Helios is not able to support them from an investment perspective so much because as I said before, Helios must cope with its own problems. That is why there is a decision to slow down development. It is just 12 places [ center ] waiting for the end of the crisis. Consumer businesses actually get the strongest hit from the crisis or [indiscernible] of food and beverage. So these are the expenditures which do not really -- which are not considered as absolutely necessary, and that is why there must be some calm in the economy and the consumer's optimism for us to be able to endure these businesses fully. And these businesses are simply based on the consumers' optimism.

Thank you very much. There's one more question about leasing fees. How can leasing fees change, especially those connected with the new rates of rent?

Rent? Is it about me? Is it a question of me?

Yes. I think rent rates contributed in the leasing payments to the credit system, so I think that you can answer.

We know the rents are indexed every year. I remember 30 years history, but I do not remember indexation, which is as high as this one. And it actually is very difficult for all the entities in shopping malls, all the tenants and Pasibus as well, and it actually -- immediately, it takes a significant part of the revenues of the company. With the cinemas, the problem is that our business economics was not very high before COVID. Now it is very -- now it is bad, where it was very good. Now it is good. So now there will be such businesses or renegotiations will have to take place. And a decision that keeping some premise or cinema in that place doesn't make sense. I'm not saying that it will happen overnight, but in some medium-term perspective, several decisions can be made. And there is also the impact of the exchange rate of euro for a few years. It has gone up to the levels which were not calculated when investment decisions were made. So this is the euro exchange rate indexation. And if that indexation in euro currency goes up to 10% and in polish zloty 15% or 16%. So this is a level that can actually disturb the profitability of business in that specific location.

Thank you very much for the answer. Now there are going to be questions of Anna Krynska and the first question is as follows: 2020, the results of euros at EBITDA and net result.

You can find all the details in memo 38 to our consolidated report. But revenues of Eurozet for 2022 were PLN 217 million. As far as the net result is concerned, you can find the information that the net result which takes into account our consolidation adjustments resulting from the pricing of assets that you value as well as taking into account deferred tax was PLN 27 million. But for your comfort, we also quote how much the consolidation adjustment is in 2022. Same goes for 2020 [indiscernible] it was 11,679,000, so it is easy for you to count that the result of Eurozet for 2022 was almost 39 million. And I would like to congratulate once again our colleagues from Eurozet Group on that result.

Thank you very much for the answer. Another question, and this is about one-off events. In 2023, should we expect an important one-off events that would influence the results of the group and what can be the cause of them?

No, at this stage, we do not expect any one-off single events if they happen. And if they influence our results, we will inform you in the communicate or in press releases, but at the current state, we do not have such estimates.

Thank you very much. More questions of Mr. Bartosz Hojka. The first question is about Eurozet. The acting new President of Eurozet Group announced that Agora wanted to buy additional shares in Eurozet have 100% at which that talks about the financing of this undertaking are and what it is going to be like?

We are waiting -- well, we are working on identifying sources of financing for taking over the remaining 49% of share. And what that's going to be like as described in our investment agreement with our partner. We have different options to finance the acquisition. It is difficult to decide that today what the final structure of financing is going to be.

Thank you very much for the answer. There are 2 questions asked about changes, which were introduced to the company and what the plan for Eurozet is. But I think that we have already answered these questions before. But we have several questions about the group and its prospects for 2023. What can be the result of Agora Group in 2023? Should we expect at the operational result, positive operational result and the net profit, what can we expect?

According to our reporting clause, we do not give forecast. We can expect the results of 2023 -- well if we are not surprised by black swans, but the results otherwise are going to be simply better than the result of 2022.

Thank you very much for the answer. Next question, which assets of the group are considered to be strategic by the Board, that which are not strategic?

Strategic assets are all assets of media in a broad sense. When I am talking about broad sense, I also mean those would take into account cinema. But as I said, a strategic market for us is the media market mainly in terms of its outlet editing and advertising market, and we have been quite well uncurtailed this market and our press media are in the lead of the main segments of the market. So the main business lines, media and cinema, this is the strategic assets.

Thank you. Another question. When can we expect publication of the strategy for Agora Group and what is holding it back now?

The recent weeks, as you know, have been full of events strategically important for us. There is the general assembly of shareholders taking place now, and they have been submitted with very important draft plan of the reorganization for us. And now we are also now focusing also on a very important investment in the strategy of the group, the historic investment. And these things will have to be taken into account. In the document, I think that within the next few weeks, you can expect that the publication of the strategic directions for us in the period full of turbulences that we are having to do with now in the horizon, we're going to see some new risks coming. There are some concerns about financial sector and possible consequences resulting of the threats that are connected with the banking sector. So well, we know that we are in a very turbulent period now. Also, when we look at our assets, and I think that Tomasz Jagiello talked about it a lot today. One of the main markets where we operate is also very unstable and it moves on from euphoria to significant caution in the Q2 previous year. We thought that this market has already recovered, and we are even in a situation better than the time before the pandemic, but then it was followed by 2 bad quarters. So the markets are not stable. That is why we are very cautious about identifying the strategic directions, but I think that within the next few weeks, we will be able to tell you how we see the future of the group in the coming years. Also, in connection with the result of the general assembly of shareholders, which is going to be finished on the 27th of March.

Thank you very much for your answer. One more question. Can the board of Agora can do any additional takeovers. So what can be the sale of that? Are you interested by -- in marketing agencies or the companies that analyze traffic online?

For now, we are not working on additional takeovers.

Thank you very much for your answer. And a few more questions of Tomasz Jagiello. First question, what is the turnout in the cinemas in Q1 2023 in PoliCinema and in Helios, how does Agora Board evaluate the situation?

I can say it now. Well, I would like to talk about the whole market. I can do this because the data is published, so we have turned out with just over 20% higher then in 2020, for the first 2 months. And we have to be very cautious as far euphoria is concerned because the first part of the year was under a great influence of the event, which doesn't happen fast -- frequently, we had Avatar opening in Poland. And at March, the result 12 years ago, it exceeded 3.5 million viewers. It is 3.6 or -- 3.6 million. The previous part, 12 years ago had 3.7 million. Such films don't happen frequently. So there's very good turnout results who was slightly under the influence of this film in the first part of January. So we shouldn't be euphoric. But for now, we have over 20% turn out more than in 2022. So it is good news. Let's hope that it's going to be like that in the future. We are going to have great films. Hollywood is not stopping. The Guardians of Galaxy, Indiana Jones, Little Mermaid, many things are going to happen. I think that we are full of optimism. And the question about turnout, was there any other question?

As far as turnout is concerned, no other question, no additional question, but there are some more questions about Helios chain. What kind of activities are planned by cinemas to improve communication with viewers? Can advertising spending of Helios this year be higher than in 2022?

It is easier to answer the second part. No, the expenditure is going to be higher than in 2022 because for the coming 2 years, Helios is definitely be in the saving mode. We want to spend less wherever it is possible. It doesn't mean that our marketing teams don't work in digital, on improvement of that communication, we are still learning. We have quite many successes. Indicators go up. I'm not going to talk about details again, but I think that this communication with our recipients is at a very high level. And we are doing everything possible in order to actually give the offer to the clients for them not to have a feeling that they have some gaps in knowledge.

Thank you. One more question about cooperation with streaming platforms. What are your plans of further cooperation with such platforms, mainly from the perspective of the introduction of the productions of NEXT FILM but also other possibilities this year?

Streaming platforms is just one of the windows of distribution. One is most important for the cinema, and the remaining forms of distribution are secondary, but they do exist. If NEXT FILM producers or coproducers, distributes our films, it is natural that a film after sometime gets to one of the streaming platforms. And we cooperate with Netflix. I also saw our films on Prime platform. So we cooperate with those when they comment when they are interested in the Polish offer. Not all of them are. They have different attitudes to local productions. But if they have interest, they do participate in -- that where a streaming platform is a place for the film at a certain point of time.

Thank you very much for the answer. And there is another question about streaming platforms, but I think that Mr. Hojka can answer it best. The question is whether streaming platforms in 2022 were an important advertising client of Agora Group?

It is important to note that streaming platforms are becoming an important advertiser. I am now connecting it to what Tomasz Jagiello talked to before about. Streaming platforms, the majority of them are not profitable today, but they are fighting for their position in the market, they are fighting taking market share. We know that in longer term, this market will have to be consolidated. The majority of these platforms will most probably not standard, but the war is now and the fight is also taking place in terms of marketing, which, at the same time, is also felt by the cinemas. But the question was about it's impact on advertising revenues. These platforms are also an important client for us, in particular for our outdoor advertisement, out-of-home activity.

Thank you very much for your answer. And we have already exhausted all the questions, which were asked in our online forum and by e-mail. So I believe there are no other questions waiting for us. We can finish the Q&A session. If you have any questions, you can ask them to [email protected] or [email protected], we are available to you. And for the time being, thank you very much for the participation in this session. I also would like to thank you very much for that. I would like to thank you for numerous attendance at the meeting. And in particular, I would like to thank you very much for a huge number of questions. I do not remember when was the last time when we had so many questions from you. If it ever happened, I'm very happy with such a great interest in the company. And I hope that this is also something which is a sign of the opening of a new chapter for Agora Group. And I would like to invite you to the next meeting at which we are going to talk about the first month of 2023. Thank you. Goodbye.