Baltic Classifieds Group PLC (BCG.L) Earnings Call Transcript & Summary

Good morning. I'm pleased to announce that Baltic Classifieds Group has achieved another successful year. We have continued to see a strong momentum in our core business. We have delivered performance in line with the guidance provided at the beginning of the financial year. We have successfully fulfilled all our commitments, including financial, governance, capital allocation and ESG objectives. Our revenue grew 15%, exceeding EUR 82 million. Our EBITDA grew even more 17%, reaching over EUR 64 million with an industry-leading margin of 78%. Cash conversion was close to 100%, and we have significantly reduced our leverage from 0.5 to 0.1x EBITDA. We returned close to EUR 30 million to shareholders by the way of dividends and share buybacks over the year, and we voluntarily repaid EUR 25 million of debt. Also, I'm pleased to announce that the Board has proposed a final dividend of EUR 2.6 per share, which is 24% higher compared to last year and to be paid after AGM. In our view, this has been a solid year as the strength of our financial performance was supported by the resilience of our operating -- operational KPIs, which were at record highs as you will see in the following slides. We reported strong annual revenue growth across all 4 of our business lines. We initiated a pricing event for our private customers a year ago in May and then improved our pricing and packaging for our business customers in Auto. The core revenue, B2C and C2C contributed 9% of total revenue have been of particular note with significant growth in both number of customers and yield expansion. We had record high customers in a Auto, plus 4% in real estate, 1% more in jobs. The yield has improved significantly with 15% growth in a 20% growth in real estate, 12% growth in jobs. Our lead versus closest competitor, which we internally consider to be the most important KPI, remains strong across all major portals ranging from 5 to over 36x depending on the portal and implies that each resident in the Baltics visited BCG portals 9 times per month. Additionally, we acquired Untu during the year, an automated property evaluation tool for sellers and a lead generation platform for agents. This acquisition is intended to enhance BCG data-driven services and present new revenue opportunities in the near future. We completed our annual employee engagement survey and over 95% of employees are proud to be part of the team. This dedication and commitment is what makes BCG such a successful company and that directly leads to such a high average tenure of 9 years, which is remarkable in such a technology-driven company. BCG has maintained a balanced gender diversity ratio with 49 to 51 female and male split. Moreover, BCG was ranked within the top 5 best performers within the FTSE 250 with 50% of women in leadership positions. BCG has achieved an impressive 30% reduction in CO2 emissions and exceeded our near-term targets in Scope 1 and 2. This achievement was driven through the continued focus on using energy from the renewable sources with 80% -- 88% of the total energy consumption coming from the renewable source. Now I'll hand over to Lina Maciene to talk about financials in more details.

Thank you, Justinas. Good morning. BCG revenue grew by 15%. During the year, we observed the same momentum in our core business. As already mentioned, 90% of revenue comes from our core, which is listing fees from both contracted clients B2C and individual self-service users C2C. B2C revenue accounts for 51% of group revenue and grew by 17% and C2C revenue representing 39% of group revenue grew by 13% this year. The remaining 10% of revenue comes from noncore revenue streams, ancillaries and display advertising and these also performed well. Ancillary revenue making up 5% of total group revenue grew by 17% and this growth is primarily driven by our financial intermediation business, our white label car loan solution. And this year, we also saw strong growth in data services, particularly from reports in both Lithuania and Estonia. Display advertising also contributing 5% of group revenue grew by 5%. We saw growth across all business lines with our verticals leading the way. On the upper right, you see the donut chart showing revenue speed by business line and our verticals combined generate 84% of group revenue. Auto, our biggest business line grew by 14%, driven mainly by yield improvement and that's thanks to increased uptake of premium packages. The second biggest real estate was the standout performer this year, with revenue growing 23%. The growth was fueled by a higher number of ads, a shift towards longer period packages and further yield improvement. Jobs and services grew by 15% and within the segment, jobs is the B2C component grew 14% by attracting more companies and improving the yield and services, which is majority of the business line C2C and accounts for 20% of this business line grew 22% from an increase in users, more active and also improving the yield. Generalist revenue grew by 5% through yield improvement. Overall, our revenue growth was driven by growing base of advertisers and listings along with yield improvements across both B2C and C2C segments. Simonas will talk much more about in his slides, but when it comes to yield. This year, we continued with our regular schedule of pricing events. At the start of the year, we implemented C2C pricing changes across most of our platforms and these have contributed to performance throughout the entire year. Also in line with previous years in September and October, we introduced B2C pricing and packaging changes, but also real estate and jobs platforms. And these updates had a more pronounced effect for the second half of the year. In the jobs business line because most of the contracts are 12-month duration, the impact of pricing changes are flowing through gradually over the course of the year. The cost discipline continued to drive operating leverage. Over the year, our team expanded to 156 full-time employees. The average number of full-time employees grew by 9% from 136 a year ago to 148 this year. Investment in our people increased by 11%, reaching EUR 12.6 million. And of this, EUR 1.9 million related to long-term incentive plan costs. And the main driver of the cost growth was already mentioned headcount expansion and also our regular annual salary reviews being broadly in line with the wage inflation in the Baltics. We have programming, development and system administration are all handled in-house with associated costs captured under salary. Marketing costs this year increased by 6%. The majority of group traffic is organic, direct and paid search channels accounting for more than 80% of total traffic. And paid search traffic is minimal and as a portfolio of brands, we leverage our own website for advertising in this way, minimizing reliance on external service providers. We own generalist, Skelbiu.lt, which is ranked the sixth most visited website in Lithuania in its home of strong vertical categories. Skelbiu drives high-quality traffic to our market-leading vertical platforms through cross-listing. And that's a truly unique portfolio setup and one of the reasons behind our strong EBITDA margin as our total marketing costs remain at just around 1% of group revenue. IT costs, which reflect third-party services grew by 3% and account for 1% of revenue and other costs, which include everything from office expenses, data costs to costs associated with being a public listed company grew by 7% and now represents 5% of revenue. In total, operating costs before depreciation and amortization grew by 9%. And in the bottom column chart, you see the depreciation and amortization split into one from acquired intangibles and ongoing CapEx-related depreciation. The 37% decline you see in amortization from acquired intangibles is due to the full amortization of most business client relationships acquired in financial year 2020, which then were assigned a 5-year useful life. And ongoing CapEx-related depreciation increased by 4% this year. In terms of profitability, with a 15% increase in revenue and continued disciplined cost management, our EBITDA grew by 17%. There were no add-backs to our EBITDA, and we continue to expand our EBITDA margin, which increased by 1 percentage point this year, reaching 78%. On the right-hand side, you see EBITDA to net cash bridge. We continue to be highly cash generative, maintaining a 99% cash conversion rate. Cash generated from operations grew by 13%, but it's worth noting that last year's figure included a one-off debt-related savings. Adjusting for that, cash from operations grew by 15% on a like-for-like basis and net cash inflow from operations increased by 12%, reaching EUR 57.4 million. Again if adjusting comparatives, net cash inflow from operations grew 15%. Adjustments to IFRS figures remain limited as amortization of acquired intangibles and associated deferred tax impact. Adjusted operating profit continues to closely align with EBITDA grew by 17%. Adjusted net income from which 1/3 went to dividends increased by 21%, reaching EUR 64.4 million. During the year, company purchased and canceled 4.6 million ordinary shares, representing 0.9% of the issued share capital at the beginning of the year. And as a result, adjusted basic EPS grew by 23%, reaching EUR 11.3 per share. The proposed dividend of EUR 2.6 per share together with the interim dividend already paid in January brings the total to EUR 3.8 per share. That's an increase of 23% compared to last year. As mentioned before, we generated EUR 57 million in net cash from operations during the year. We started the year with EUR 50 million gross debt, EUR 27.5 million net debt and 0.5x leverage. During the year, we paid final 2024 dividend and interim 2025 dividend, that's EUR 15.9 million in total, spent additional EUR 2.4 million to repurchase shares for future employee awards. Repurchased and immediately canceled 4.6 million company shares acquired Untu and voluntarily repaid half of the outstanding gross debt. And as a result, we ended the year with gross debt of EUR 25 million, a leverage ratio of 0.1x net debt of EUR 3.6 million. Our capital allocation priorities remain largely unchanged. We will become debt free this coming year. We intend to continue returning 1/3 of adjusted net income each year by interim and final dividends with approximately 1/3 and 2/3. If approved at the AGM, the final dividend for the year 2025 will be paid on October 17 to members on the register on September 12. We will continue considering value-creating M&A opportunities. All options for financing, attractive acquisition opportunities remain open, including debt and cash and even seeking additional equity capital. And we intend to continue to return meaningfully all excess cash to shareholders in a timely manner with a preference to share buyback. Thank you. I now hand over to Simonas.

Hello, everyone. As you will be used to in the next 4 slides, I will walk you through our main KPIs for each business unit. The automotive market is performing well, both the number of transactions and average car price have increased by 6% and 3%, respectively. In the middle right chart, you can see that private sellers have listed 5% less ads compared to the last year. The active ads shown in the top right chart represent the inventory level on the platform and it has increased by 4%, mainly due to increased share of longer listing duration package. As a result of our pricing adjustments, the average revenue per listed ad has increased by 21%. In the B2C segment, customer base is stable, while yield increased by 15%. The main reason for the growth is the higher adoption of premium packages, driven by new products and pricing changes. In bottom left, you can see that our lead versus closest competitor is very strong, 6x in Lithuania and 36x in Estonia. In real estate, after the slowdown in 2023, 2024, the real estate market has entered a growth phase. Activity increased in the first half of the year. In the second half in the second half, the growth was even more pronounced with the annual number of transactions rising by 10%. Average price remained stable and market sentiment among agents is very positive. Private sellers listed 1% more ads. However, share of longer duration listing packages have led the 12% increase in the C2C inventory and pricing adjustments introduced in late spring and C2C customer base segmentation have resulted in 22% growth in the yield per listed ad. The number of B2C customers increased by 4%, while the average revenue per broker grew by 20%. This growth was primarily driven by the annual pricing and package. And we maintained very strong needs both in Lithuania and Estonia. Our platforms are respectively 27x and 13x bigger than the competitors. Let's take a look at jobs and services. Jobs market stays active. The unemployment rate has slightly increased to 7.1%. However, the total number of employed persons also increased during the year, reaching the highest level since 1998. Average wage has grown significantly, increasing by 10% over the past year. The market continues to provide a favorable environment for our business. Companies are investing in recruitment and retention of employees. As shown in the bottom right chart, our customer base grew by 1% and average revenue per customer increased by 12%. And I will remind you that C2C part of our jobs and services unit is represented by Services segment. You can see chart on the top right. This segment keeps growing rapidly, both in volume and yield. The number of active ads increased by 8% and yield grew by 14%.Our job board maintained a strong leadership position with a lead of 5x over the closest competitor. And our biggest services vertical, Paslaugos is 2x bigger than the main competitor, which is actually the service category of our own generalist Skelbiu.lt. Our main generalist, Skelbiu.lt, in Lithuania accounts for 69% of general business line revenue. It's important to stress that it is not a typical generalist. Approximately 70% of its revenue is derived from vertical categories, automotive, real estate, jobs and services. Therefore, Skelbiu competes with our own market-leading verticals. As Lina said, Skelbiu ranks as #6 most visited website in Lithuania. So we strategically leveraged Skelbiu.lt to strengthen our vertical platforms. We have cross-listing, which generates high-quality traffic to our vertical platforms, strengthening them even more. Generalist platforms experienced modest growth. We had 10% fewer paid listed ads compared to last year. Please note that Skelbiu has both paid and free ads. And in the top right corner, you can see the number of active ads, which reflect the total amount of content on the site, including both paid and free ads. Last year, the number of active ads grew by 3%, and we increased yield by 17% -- yield per paid ad by 17%. Our lead versus closest competitor in Lithuania remains as strong as ever, 21x and in Estonia 3x. And as always, we are rolling out a numerous number -- numerous improvements to our platforms. I would like to highlight a few of them in the next few slides. Starting from Auto, Autoplius.lt and Auto24.ee now allow both private and business sellers to attach a car history report to any listings. The seller purchases the report adds to the ad and every potential buyer can download it free of charge. Sellers receive a list of people who downloaded the report, making it easy to contact interested buyers. From the buyer's perspective, these reports enhance confidence and transparency, giving the marketplace a distinct competitive advantage. The adoption of this feature has exceeded our expectations. Currently, 12% of car ads have reports, and this number is continuously improving. At Aruodas, we launched a call register feature for agents. By using virtual phone numbers, agents can easily track interested buyers, follow up on missed calls and manage their client database in one convenient place. At KV.ee in Estonia, we introduced a new feature that allows agents to share performance metrics with property owners. Owners can request access to statistics about their property listings and purchase value-added services for their listing. In this slide, I would like to give a bit more color on our latest acquisition, Untu.lt. This service allows everyone to get an instant property valuation free of charge with the option to purchase a report that provides additional information, including historical transactions in [ tabling ] area. If a seller decides to sell a property and choose to work with an agent, their leads are forwarded to the top-rated professionals. These agents share a commission with Untu if the property sale is successful. The platform enhances our lead generation capabilities, simplifies the selling process and offers significant value to the agents by reducing the effort required to find the clients. Let's move to jobs and services. At CVbankas, we introduced AI platform that suggests supplementary questions for candidates based on their position description. This helps create smarter job postings and aids in selecting the best candidates for the interviews. At Paslaugos and Getapro, we have introduced AI-based content moderation. This reduces the amount of manual work required. At Skelbiu, we launched a paid renewal feature that allows sellers to put their listings higher in the search results and access buyer subscriptions or a fee. At Osta in Estonia, businesses can now automatically register an account. Background checks are fully automated from Estonian Business Registry. This allows companies to start using the platform immediately after the registration. And now I would like to hand back to Justinas to finalize the presentation.

Thank you, Simonas. The Baltic region has seen a period of unprecedented growth in the last 3 decades. This is largely attributed to high export growth from trading balance, vibrant employment market and tech-orientated economies. The region has also strong credit profile and has seen a significant increase in overall purchasing power. This positive environment has created a great opportunity for our clients and our company to take advantage of growth and generate greater profits. The outlook for the future economic growth remains positive, especially for our largest market, Lithuania, which is among the top-performing economies in EU, further reinforcing our growth prospects. In spring this year, we implemented C2C pricing and packaging changes across all our business units and early signs are encouraging. We plan to implement B2C pricing and packaging changes in September and October. We expect to deliver revenue growth close to last year with the second half performing more strongly than the first half. Real estate, jobs and services and our Lithuania auto business together are expected to lead the growth with generalist growing at a more moderate pace. The Estonian auto market is showing some gradual recovery, but our auto business in Estonia is unlikely to see year-over-year growth until the second half of the year. We expect to maintain our EBITDA margin while continuing to invest in the product development. The capital allocation policy remains largely unchanged. However, during the coming year, we will become debt-free. In the absence of M&A opportunities, we intend to continue to return meaningfully all our excess cash to shareholders in a timely manner, of which at least 1/3 will go through dividends and the preference for the remainder through the share buybacks. That concludes our presentation, and we are happy to take your questions. I see Alastair was the first to raise.

This is Jessica Pok from Peel Hunt. The first is you talked a lot about the impact of the car tax on Estonia. Can you just give us a bit more color about how you see the Lithuanian auto business developing for this year? The second is, you seem quite confident that the Estonian Autos business will kind of go back into growth post the whole year, which is the comps. If it's the case that weakness persists, are there levers you can pull to support the growth in that business going forward? And then the final one is just on the acquisition. I think you're going to incorporate the capabilities into your real estate listing packages. Can you give us an idea of what that will involve and how long it may take to implement that?

So I'll start with the first part, our automotive business line in Lithuania. So in terms of the quantity, Lithuanian automotive business is 2/3 of our automotive business line and Estonia is money. So it's almost twice bigger. And the Lithuanian automotive business performed very well last year, growing above the group growth average. And this is the same expected for this year. Estonian automotive business performing below last year performance, but we are expecting that in January, we will have already returned to the year-over-year growth. And that actually part of the fact that we see already a gradual market recovery. And secondly, it's the fact that actually the comparables already in the beginning of the next year will be so low. So we can't see otherwise happening. Overall, on the car tax, we think that it's -- the car tax does not change overall market structure. With the car tax, the ownership of the car became 10% more expensive. And I think that all of us would agree here that it's not a major change. There are many countries in the world where the car taxes are 100% or 50%. In Estonia case, the car suddenly became 10% more or less. What happened before the introduction of the tax, people were expecting that it will be introduced. So a lot of demand were put forward. So last year, October, November, December, we saw a huge amount of transaction, a huge growth in transaction. And then after the introduction, we saw a decline. So a lot of people fulfill their need to transact a car before the introduction of the tax. So naturally, there is less demand in the following months after the tax introduction. But that's expected to be gradually recovering because there is still the same amount of cars in the market. The structure -- it's not -- the tax does not change the market structure as it is. Also, the car tax is not kind of change the way people are thinking about owning a car or not. In general, I think that it's important to understand that Baltics is -- car is kind of a must -- it's not like a luxury item, it's a must item. Most of the commuting is happening with the car because the Baltics are not very -- well, inhabitants number, quite low inhabitant number per square meter. So basically, whenever you are traveling through the cities, you are doing it with a car and for example, train infrastructure, other infrastructures are much less developed. So it's kind of -- it's a must have item. So that's why we feel confident that the station will return to usual station soon. The second question is on...

Additional levers.

There is always a levers. I mean when you're running a really strong leadership, strong leading platform, there is always a lever. The question mark if you are kind of want to pull it or not. I think that the way we are looking at that, we see that the Estonian market will be like weaker, especially in the first half of the year. So we don't think that it's a good time to pull the levers. On the other hand, we see that other markets like automotive and Lithuania, real estate in both Lithuania and Estonia, they will be growing quicker and ahead of the group average. So these are the levers we are pulling. And the third question was on Untu. So maybe just to give you a bit more color. We developed a year ago car history report in automotive. And the performance of this product really exceeded our expectations. We integrated these reports for the dealers. Then later on, we integrated those for private listings. And this is kind of the product which gives you 3 win-win wins, let's say. Basically, the customer is very happy. The customer who is buying a car is very happy because it gives a much more transparency and much more trust. The seller is happy because it gives more leads to the seller, and we are happy because we monetize and it makes our business stronger. So with kind of encouraged by this success in automotive, we decided to expand in the real estate. So we acquired this Untu platform, which in general targets the passive real estate sellers. It gives you ability to evaluate your property, then you get like -- and then you are getting monthly updates about your property, what's happening in your neighborhood, how the prices are changing, how many transactions et cetera. So you are getting a very relevant information. You are also -- you are quite engaged with that because everyone is interested how -- what's happening with your property. And already in the platform, there is over 150,000 valuations. So it's quite already some 10% of the total market, maybe more than 10%. Then when the customer decides to sell, we are trying to connect this customer with the broker. And in case they sign a deal and broker sells the property, the platform charges up to 35% commission or up to 35% take rate from the broker, which is a massive -- and -- so our idea, once we plug in this acquisition into our ecosystem, first of all, we can actually integrate the reports into the business packages. And this is very beneficial for the brokers because one of the most difficult conversations the brokers have with owners is about how to evaluate the property, what should be the price of the property. And usually, the people -- the owners are evaluating their property higher and the broker is trying to make the expectations reasonable. So providing these reports and including these reports into the broker packages for them, it will help to have a more easier conversations with the homeowners. And we expect that they would value the service, and that would be used as a tool to increase our premium -- the transaction of our premium packages. And secondly, we will plug in this platform into our ecosystem, and we expect to deliver more leads to the brokers through our system and then monetizing these leads as a commission from the brokers commission, which is likely to be a nice revenue stream.

Alastair from Investec. Just a couple of sort of questions that, I guess, sort of related to those. You talked about Untu and sort of car histories. Perhaps sort of give us your updated thoughts more generally on sort of what are the opportunities and risks of potentially evolving towards more transactional models? What other things could you do on that front? And then sort of similarly, do you see any sort of other potential tax policy changes on the horizon or had any sort of political discussions, whether that's around corporate tax rates and residential tax sort of that might be sort of put in place, anything you've heard?

So on the first question, so basically, Untu is a perfect example where you actually monetize the transaction because if you provide the lead to the broker, and the broker makes a transaction. So the broker is actually paying a commission basically 1/3 is commission to the platform. So it's a perfect example of the transactional model. So basically, this is what we are aiming. And on the tax policies, maybe Lina will talk maybe more details. I think I would say maybe just a few words. In general, I think that the governments are looking at the Baltics as a low tax region because this is being a low tax region is a key for the small countries attract investments, attracting the new companies, holdings, et cetera. So basically, the governments are looking at the region as a -- it has to be a competitive in tax. But at the same time, when the wealth of the region is increasing, so it's also the natural path that more and more taxes are being distributed through the [ digit ]. So we should be expecting that the taxation should be growing, but still kind of being a competitive compared to the European or global, let's say, peers.

And just adding to what Justinas said, a reminder, in Estonia, we don't pay corporate income tax as long as we don't distribute the profits. And in Lithuania, we pay corporate income tax every year. Up until this year, it was 15% starting 2026, it's 16%. And it's already approved that from the following year, it's going to be 17%. So the effective tax rate should be expected to increase a little bit.

If you are also maybe more asking about the more kind of detailed, let's say, real estate taxes or automotive taxes in other countries. So there is no plan for automotive tax in Lithuania at the moment. In terms of the real estate, I think currently it's being debated, but it's likely that the people who have many properties or very expensive properties will have some tiny tax. It wouldn't impact our business quite opposite. I think that those people who have, let's say, many properties and many properties for rent that could suddenly decide that, okay, I would like to sell it, maybe it's less -- the yield has declined. So basically, if people decide to sell. So it's more like a tailwind for our business because more listings [ venture ] more and more supply and new money.

And in autos, we have the tax since 2020. It's smaller than in Estonia. It's only a registration tax, but we have that -- we saw an impact in that first year. It exists, let's say.

A couple from me, if I can. First of all, just on Untu, I think this is the first time you've moved into seller beats. Could you give us a little bit of color on how you're thinking about that strategically as part of the real estate portfolio? And then secondly, back to the Estonian car tax, are you able to give us an indication of how the impact has been different between B2C, C2C, if it has been different at all?

On the first part. So we have a very strong C2C segment, which we love. However, there are people who are listing the property and for example, don't complete the listing process. They come to the listing, let's say, payment window, they don't complete. And usually, the healthy number is around 20% of people who don't complete, different reasons, but it's kind of consistently over the years but around 20% don't complete. Then there are people who list their property and they don't sell. Most common reason why people don't sell is their price expectations are unreasonable. So those 2 moments are when people consider maybe I should not belong or list on the platform as a private individual and maybe I should seek a help for professional. And we have -- and we know these people. We have these people in database. So our idea is to connect these people through our platform with well-rated, well-performing brokers and monetize and take our fee for the connection. And as I said, the monetization is very good, like 1/3 of the broker commission. That's quite good monetization. Even comparing if we say that our take rate for the listing fees and subscription fees are 3%, here is up to 35%, 10x. So we like -- so this is how we plugging in our platforms. This is how we plan to increase the number of leads, which go through the platform. Second part Estonian car tax -- how it impacted the B2C and C2C. B2C, they were acting more professionally. So B2C we're trying to sell more -- well, they were growing the number of stocks before the tax introduction and trying to sell as much stock as possible because they were anticipating that after the car introduction, it's probably a number of transactions will decline. So B2C revenue were less impacted. And C2C revenue was much more impacted, but it's not related with C2C price sensitivity, listing price or whatever. It's just there is a market sentiment that now it's not good time to sell a car, not good time to buy a car. It's a market sentiment, which actually postpones your C2C decision to change their car, change meaning sell and buy a new one. And we expect that this will just will gradually recover. We have already seen that situation in Lithuania in 2020, what Lina mentioned, basically a similar situation 5 years ago. It's exactly for the car introduction surge in number of transactions and then decline afterwards and then gradually recover.

This is Fiona Orford-Williams from Edison. Just coming back on this pushing the property sellers towards the brokers. You're saying you're doing that, giving the brokers warm leads from people who fail to sell. But surely, you've got an incentive now to refer more people earlier in the process? And how is that going to work? And the second question is just about the general M&A landscape. I mean you've obviously got a very attractive attribute in Untu. Are there similar opportunities available? And what's the pricing structure like at the moment?

On the first question, we love our C2C segment. So if we have -- we prioritize that. If the customer is listing as a pilot, we love it because in advance very high profitability, beautiful revenue stream. However, there are 20% of those which don't complete the payment. And then there are other part of the customers which don't sell and don't prolong. So for us, we see just additional -- we would lose these customers anyway. For those segments, we just see as opportunity to monetize. So it's kind of -- here, we don't see any conflict. Otherwise, we will lose these customers anyway. On -- to be honest, the second part of the question, I did not hear what was...

About the health of the M&A landscape, what opportunities as pricing.

So on -- currently, we are not working on large M&A. There is no such M&A on horizon. And -- so this is kind of on big M&A. And also, we remain very, very disciplined. I think that we are already 4 years company. You see that we are very disciplined. We looked over 10 companies over 4 years. Usually, the companies don't match our quality criteria. We don't want to kind of just grow or buy the company for the sake of growth and dilute the quality of the company. So it's kind of -- we are very disciplined here. And currently, basically, we don't see such companies coming on horizon and small M&As like data products. So those are likely. But whenever we do such M&As, we kind of have -- we wait few options, basically either should we develop it in-house or should we acquire, this was the same with Untu. We could have developed it in-house. It would have taken a year to do that and at the same time, some development costs. And then we decided that it's just much quicker, much better option to acquire. The price was reasonable, and we see the business not as a big business what we acquired, but we see it as a big business once we plug in, the value of business increases once we...

[indiscernible] from Barclays. Just a follow up on the question over here about volumes in the B2C piece in Estonia. So my understanding is the way the revenue model works is it's a number of slots. So if you're a dealer now, presumably you have less inventory because there are fewer transactions in the market. So at some point, is there a risk that dealers are going to spin down and start taking fewer slots. And so we haven't yet seen the revenue headwind on the B2C side. That's the first question. Second one is then extrapolating on that, when you kind of think about the full year guidance you've given, what are the volume assumptions embedded within that across verticals? And the third question is, can you give us a sense as to how big the price increases were in May on C2C?

So dealers already optimized their number of slots. Their optimization already happened. We're not expecting further optimization. So the trend which we are expecting is only up. Real estate volumes expected to be growing, when we are saying growing usually, the healthy growth is low single digits. So this is what expected for real estate. Automotive volumes expected to be lower. And especially the main reason is the first half of the year, second half stronger, but probably once we put the numbers for the full year will be lower. Jobs and services and healthy growth with low single-digit growth in volumes. And the third question?

C2C price changes?

C2C price changes were in line with our previous -- kind of in terms of magnitude was in line with our previous practices. It happened in April this year. We did C2C price changes the 20th time. So it's -- there is nothing unexpected. It's kind of in line with our expectation.