Digitalbox plc (DBOX) Earnings Call Transcript & Summary

Good morning. Welcome to the Digitalbox plc Investor presentation. [Operator Instructions] Before we begin, I'd like to submit the following poll. I'd now like to hand you over to James Carter, CEO. Good morning, sir.

Good morning. Thank you for coming along to the 2026 Digitalbox Interim Results. I'm joined by Jim Douglas, our Chief Operating Officer; and Richard Spilsbury, our Chief Financial Officer. We've got a presentation that will take about 30 to 40 minutes to run through, and we'll then be taking questions at the end. So I think our cameras are going to go down now, and I will push the presentation to full screen. Firstly, introduction to Digitalbox who -- for those who aren't fully versed in what we do, but this is the composition of the Board. We're very well versed in plc existence, with experiences across EMAP plc, Future plc, Reach plc, Bauer Media and including the Daily Mail within that significant list of media operators within the public space. In a nutshell, Digitalbox is a pure-play digital media company that focuses very much on digital delivery. And we have a strategy to create and grow products through our existing model that I'll explain later, and transform properties that we acquire. At the moment, we have 11 assets that we operate, owned operated digital brands. We started off in the market with one, which is Entertainment Daily and have grown out into quite well-defined areas, which we've labeled recently as our vertical strategy. And in a simple sense, we publish great content that attracts audiences to go and visit our websites and consume that content, and we then monetize those visits through advertising impressions, typically through programmatic solutions. So just to run through what we're going to cover today. We've got the first section, I'll take you through, really, the backdrop to which we've been operating in. So the environment, media environment over the first half of this year. Richard will take you through the detail of the financial results. And the second half of the presentation is really looking to how we can expand the business, and Jim will cover the detail there, and I'll then summarize in terms of looking to the future. So first, let's look at the market backdrop we've been operating in. There's been much commentary about this, but increasingly, consumers are faced with 2 distinct journeys. Website, direct website journeys have come under pressure over recent years. And the big tech players are increasingly trying to hold consumers within their walled gardens for longer. And that's a result of changing technology, AI answering consumer questions. It's a result of elevating on-platform video distribution above publisher distribution of content on the platforms and a whole raft of measures which the big tech players are using in order to steal audience share. So it's one of the big factors we have to contend with, and it's been fairly significant, these changes over the first 6 months of this year. Part of that battle that's taking place within big tech is being fought around who can hold or who can harness the best content on their platforms. So in particular, Facebook and TikTok have been having an almighty battle over recent years. And there's a big battle taking place as to who can harness the best creators in order to make their platforms as sticky as possible for users. This has played out in the first 6 months of 2026 with a significant algorithmic change. And fortunately or unfortunately, you can see, which is very useful for everyone looking at this chart, on April 2 or 3, the Meta data broke as a result of them changing this algorithm, we think. But you can see in the middle of the charts where the data drops to 0, an algorithm change was put forward into the whole of Facebook and other associated platforms that really enhanced the level of amplification given to creators. So just to explain the chart, the dark blue line is our follower reach that we're experiencing on one of our brands and the light blue line is the non-follower reach that we're experiencing. And as you can see, after April 2 and 3, whilst our follower reach was retained, the amplification delivered by non-followers was crushed heavily. And in some instances, that reduced our total reach on platforms by about 75%. So a significant change we had to contend with there. And just to put some further context around how that advantaged or gave a benefit of reach to some creators. This is Georgia Blu, who vlogs in the entertainment space, covering shows like Love Island, et cetera. You can see there are a total follower base on Facebook below her image to the left of the screen of 1,858 total followers on Facebook, 6,904 on Instagram. But as a result of these changes that were put through on April 2, if you look at the red box to the right, you can see how much reach she was given as an influencer or a creator, where 96% of her reach was coming from non-followers and just 4% from followers. So that situation has been pushed through Meta systems from April 2. And it has changed since, but it's created quite a volatile situation where it's not necessarily working for Facebook, and we're seeing ongoing changes take place. We can see how this has worked for the biggest social brand, I think, in the world, LADbible. Now it's been a gradual process how Facebook and Meta have downranked unoriginal content. When I say unoriginal content, this is most likely to be content that could be produced elsewhere, user-generated content. For example, a cat doing something funny, someone being offered GBP 50 in order to allow someone like LADbible, and there are other operators that have that model as well to share that video content. As a result of that video content being duplicate, it's been heavily down ranked within the algorithms that are in play amongst Meta in particular. And this chart shows from 2024, the interaction per 1,000 followers from that period, which was running at 600 plus at its peak, and it's now down to a level of 20 or 30. So a massive, massive reduction for this particular brand, and it's something that we've seen play out across all media brands, but not to such a severe extent as you're seeing here. So let's have a quick look at our trading. The dark blue bars are H1 2025, the light blue, H1 2026. We started off the year from an audience point of view in reasonable shape. We expected audience decline compared to the previous year. But we were on track exactly within forecast over Jan, Feb and March. However, April and May, you can see much more significant drops to the right of the chart in light blue. And overall audience for the period was down 28% for the first half of this year. Taking a look at the advertising performance. The dark blue again on the left shows our session values that we are generating in 2025 in the bars. And the advertising index for the U.K. markets in the charts below that. Two things, really, to point out here. One is if you look at the chart to the lower parts, the advertising index, you can see that H1 2026, not as volatile, but it was certainly down as an average across H1 '26 compared to H1 '25, but much more significant growth spikes in the previous year. However, if you look at our advertising performance in terms of session values, we've managed to grow the average session value that we're generating within Digitalbox by 20%. So it's a fairly strong advertising performance in what I would call, really, a stable market across H1 '26, but certainly not in growth. So let's see how that shapes up in terms of revenue. First quarter of this year, again, dark blue is 2025, light blue 2026. Revenue for the first quarter of the year was up, and we had a pretty strong performance. And as you can see, the Meta changes really impacted our revenue generation from April onwards where it's visibly down. And overall, we finished the half year at around 6% down in revenue compared to H1 2025. So looking at where we're operating, the most recent data for the advertising market, and this is the global advertising markets for both all media and digital media, all media in light blue, digital media in dark blue, you can see that our primary markets being the U.K. and U.S. for audience are in pretty rude health, really, in the sense that advertising spend per head is running at $735 in the U.K. and $915 in the U.S. So there's some pretty powerful digital ad markets to be operating in, which is a positive. In terms of changes around short-form video content that we have seen over recent times. In 2023, the average person in the U.K. was consuming around 42 minutes per day of short-form video content. And that's grown by over 50% to 62 minutes per day in 2026. So a big change in behavior in terms of short-form video. And also looking more deeply into the advertising market, there's been a big change in how advertising dollars are spent. Increasingly, the branded content and branded content solutions market is growing ahead of the regular digital market. This comes in 2 forms, really. It comes in creator content being distributed and branded content being produced by websites and creative solutions to deliver for clients. The U.K. spend in billions here is around -- in 2025, around GBP 3.5 billion actual. And it's forecast to grow to about GBP 5.8 billion by the end of 2028. So what we're seeing is growth ahead of the regular digital ad market through this route to advertising. A big issue for both tech companies and publishers to contend with over recent times has been the massive growth in content volume on the Internet. So it's grown by 2.4x since 2023 to 2026. And that comes -- with that comes a number of challenges, but one of them is obviously it's increasingly important to get stand out as a publisher in order to get your content to punch through. It's also a challenge for tech companies as they look to sift through and value the best content in order to push to their consumers on their platforms. And along with that comes a big trust issue. And trust in content, whether it's actually true or not is, we believe, becoming an increasingly important factor within consumer publishing. Here's an example. And I won't say it's not a trusted brand. Google, I must say, probably is a trusted brand by most consumers. However, this on the left is from the Discover feed about a week ago when I was scrolling through Google. And it announced Coventry City fires manager, Frank Lampard. And I thought well, that's odd. I haven't heard that anywhere. And it does come with a little byline saying generated AI, which can make mistakes. However, a few searches later, and I couldn't find anything on CoventryLive. There was nothing on the BBC, nothing on The Telegraph, nothing on any websites with any credibility. And so I sought further information. And I found one page by some lone blogger on Facebook who tended to be putting out all kinds of random football information. And clearly, here, they've influenced the algorithm within Google by putting out the announcement, the official announcement that is completely unofficial and untrue, which has skewed the Google algorithm. Increasing occurrences of things like this is resulting in increasingly low levels of trust in unofficial sources. And here's another example that we looked at. We're probably all familiar with AI-produced examples of a tsunami bowling down Fifth Avenue in New York, cars being tossed either side of the road, et cetera. But when the Nepal tragic floods happened a few weeks ago, you can see a real difference as this news was coming through in how first-party creator or first-party witness content was given less watch time due to the fact -- quite simple fact that it was not to be trusted compared to the Daily Mail here, where you can see the numbers scale much more quickly at about 3x the rate. And that will be self-fulfilling. Trusted brands that get more views will rise to the top of the algorithm. Untrusted sources that will be questioned will fall lower down. So key market trends for H1 2026. Platforms are directing less traffic to publishers. Meta has been giving creators greater amplification, but it seems uncertain whether that's playing out successfully. Programmatic advertising inventory values for us have been really positive, but for the market have been relatively stable. U.K. and U.S. markets continue to lead in terms of audience value and volumes for Digitalbox. There's growing consumption of short-form video, which is an area we've increasingly started to move into. And there's a growth that is outpacing the market in bespoke commercial solutions. And underlining all of that, originality is key. So sharing secondhand content is no longer a route forward for businesses like LADbible and perhaps Jungle Creations that formed an engine, really, distributing content into social channels. And verification and trust is going to become an increasingly important factor as we move forward from this point. So over to Richard to dig into the financial performance of the business.

Thank you, James, and good morning, everyone. As you're aware, since we last updated you on our trading performance, many digital publishers reported significant declines in financial performance due to algorithm changes and an uncertain macroeconomic environment. We have not been immune to these challenges. And while overall performance is disappointing, we can see opportunities for organic growth from our existing portfolio and extensions to our portfolio, which we will explain to you. We are also in a strong position to take advantage of appropriate acquisitive opportunities, which we proactively consider. On to our income statement. Overall, turnover fell 7%, which reflects the algorithm changes widely reported in the market. Despite this, gross profit rose 3 percentage points. Contribution before head office costs fell from GBP 713,000 to GBP 513,000. Excluding central overhead costs, the contribution margin was 30%, down from 39% in the prior period. Restructuring at the end of the reporting period addressed this reduction in margin and led to a one-off charge of GBP 59,000. These cost reduction measures are expected to benefit the second half of the year. Here, I present information about our underlying performance, which is represented by adjusted EBITDA, which shows a loss of GBP 43,000 compared to an adjusted EBITDA in H1 2025 of GBP 129,000 after -- GBP 129,000 after new product development costs, a variance of GBP 175,000. In H1 2025, we incurred GBP 160,000 worth of new product development, and we have not reported this new product development separately in 2026. In 2025, 32% of our full year adjusted EBITDA before new product development arose in H1. Adjusted EBITDA encapsulates the underlying profitability of the group, giving you greater visibility of trading once we have taken into account the following factors. First, value measurement changes such as depreciation, amortization, impairment and share-based payments. And secondly, one-off project costs for restructuring. In addition to the standard value measurement changes like depreciation and amortization, the group recognized an impairment charge on intangible assets as a result of review of the value and use of assets given the change in market conditions, and that charge was GBP 634,000. Together with other changes in management and costs in relation to one-off projects of GBP 59,000, the group made an operating loss of GBP 983,000 compared to an operating loss of GBP 217,000 in H1 2025. We turn now to our segmental revenue. We continue to report our segmental analysis with 3 segments, namely Entertainment, Humor and Youth. You can see that Entertainment has declined most, and it was only just our largest segment. Both Humor and Youth have both shown double-digit growth. Quarterly revenue changes demonstrate that the trading environment is variable and our agility and ability to adapt to changes remains key to our business model and management style. Turning to our operating cash flows. Next slide. Cash generation remains strong, and we see increased net operating inflows in H1 2026. As we have done -- as we have done in previous years, we report the aggregate cash flows over the last 2 years to better understand underlying cash conversion, and I have done this again to be consistent. And this shows an aggregate cash conversion of 65%, reflecting our continued strong track record in cash collections in the context of continued investment in growth and other costs to underpin shareholder value. On this slide, we show cash utilization, and it summarized how we have managed our cash reserves, which were GBP 1.8 million at the start of the year and rose to GBP 2 million at the 30th of June 2025. We have used cash generation to restructure the business to improve contribution margins going forward, invest in growth acquisitions such as Film Junkie, and we have incurred minimum levels of tangible fixed asset purchases. We continue to hold significant cash reserves at the half year and are mindful of the need for robust working capital management so we can continue to invest in growth, both acquisitively and organically. We continue to review receivable interest rates regularly to obtain competitive rates. While a significant proportion of our revenues are earned in U.S. dollars, we convert U.S. dollar funds to sterling every quarter to manage foreign currency exchange risk, and we use forward exchange contracts to reduce the impact of any foreign exchange rate volatility on the business. On to our financial position. Our financial position continues to be strong, which puts us in a good position to exploit market opportunities for growth. Our largest asset category are the intangible assets, mainly arising on consolidation accounting of acquisitions. As mentioned, this value has been remeasured in line with international accounting standards. We are not a capital-intensive business, and that is seen in our low tangible fixed assets. Our deferred tax asset represents the highly likely recovery of tax losses in future trading periods, and this relief has been available to us effectively since 2025 onwards, and will continue to benefit our effective rate of tax going forward. Our current net assets have increased and are healthy. This strong financial position has given us the opportunity to continue to invest in shareholder value organically and acquisitively. Your Board will continue to focus on maximizing value through the expansion of the current model. We will continue to develop its business through launching new products and remain alive to acquisition and merger opportunities when they maximize shareholder value.

Okay. Thank you, Richard. So moving forward, let's have a look at how we're going to expand the business. We have expanded it, obviously, over the years since we've been listed, more than doubled its size, and a lot more than that in terms of the number of brands, but we also recognize we need to go faster and continue to grow. So our mission is to establish an entertainment powerhouse through the diversification and expansion of our current model. There are 5 key initiatives, really, that we are going to focus on as we move forward from here. So the current model remains robust in certain areas, but it needs other aspects applying to it. So scaling of our original video output is in place. As growth in consumer attention for short-form video continues, we're going to be pushing out more content there to satisfy audiences on the platforms. We need to grow our social footprint. We're up to over 30 million followers within Meta in particular, but we need to continue to grow on platforms like TikTok. We also have an ambition to start to extract some value from the faster-growing segment of the digital ad market, which is branded content solutions, and that will come through direct sales solutions. In addition, the harnessing of AI efficiencies will become increasingly important to the business as we move forward, helping us move to higher margins than we would otherwise be able to deliver without these tools. And leverage of the strength of our brands is going to be key. I mentioned earlier about trust being a trusted brand and a recognized brand is going to help publishers get cut through with audiences as they move forward. And how you use those will be dependent upon the publisher, but we think we have a real opportunity certainly to harness the strength of those brands alongside some creator activities. So some of you may have read in the RNS that went out earlier that we have ambitions to build a creator network. And at the moment, we have over 200 creators in total signed up to work with Digitalbox, and it's on a revenue-sharing model. So effectively, by offering creators the chance to work under the entertainment umbrella as an example, with its 2.5 million followers, affords them an opportunity to get much greater reach than they would have otherwise done, as we saw earlier from the example of Georgia Blu, who was writing about Love Island, et cetera, with her 2,000 followers. She should get much more from what she produces if she was to publish through a channel with 2.5 million followers. So we have this in play. We've recruited a number across what we're calling the entertainment network, which is around TV, Entertainment Daily, TV Guide and associated products in that area. And we also have a large number of students who are very keen to publish video content within the TikTok world in the youth space. So that we hope to result in over 500 original pieces of video content going out within the next month or so. Moving towards a branded content sale. We're going to have multifaceted solutions, that's for sure. So article content will become increasingly important to brands as they try to increase their indexing levels within the large language models. Video content, again, increasingly important and social solutions. We've got a full range of tools now to offer, and we aim to recruit a direct sales team and start to deliver branded content solutions moving forward. Programmatic is becoming continually important or becoming more important in the sense that it will diversify. At the moment, the majority of our programmatic revenues are coming from website delivery. But increasingly, it will spread to on-platform, which it has done over the last year or 2, but on-platform monetization of video as well as we're publishing more content on the platforms. So 3 levels, really, of new activities: creator network, branded content and programmatic, which will be feeding off the creator output will result in us diversifying our revenue sources increasingly from historically what has been 70%, 80% or 90% of our income from website activities towards platform activities as well. But increasingly important for us to spread our efforts and output across both areas of platforms and websites. So Jim will take you through how we're going to execute moving forward.

Thanks, James. Yes. So firstly, in terms of portfolio execution. So whether we're looking at traditional article content or increasingly video output, there are a set of key strengths that help Digitalbox generate revenue and really underpin the way we operate creatively. So on this slide here, the dark blue elements are the stages or factors in the news content cycle and the light blue are the skills or attributes that we believe we are able to bring to bear at the relevant stage. And so at the top, number one, there's a news event. So the news, Strictly Come Dancing hosts debut on the show, or Jack Lowden's rumored to have been chosen as the new James Bond, or Ed Sheeran's tour goes into meltdown. And at that stage, we need to decide the significance of that moment for our audience. And that's where we need to deploy our data that we've used from prior story performance. But crucially, it's the subject expertise of our editorial teams who are immersed in this world to instantly determine whether there's going to be something here that our audience will engage with. Obviously, if there is, everyone else is probably trying to cover the same story. So we need an angle on our reporting and often multiple angles to enable us to revisit the same key story. So that's where subject expertise meets creativity and they combine to offer our audiences something fresh. So we've got our story. We've got our angle. Then it's really about execution, whether that's a written article or a video or an engagement post. And that's where creativity combines with platform skills. So because our creative teams are posting their material themselves rather than passing it off to a disconnected team, they're fully immersed in what actually works on each platform. When the content gets distributed and surfaced for users, it benefits from brand recognition, as James mentioned earlier. So even in a fraction of a second when the user is scrolling through their feed, that tiny logo that travels with the content rings a subconscious bell of familiarity for the user. So I had a good experience the last time I engaged with content from The Tab or The Poke or TV Guide. The last time they spoke to me, I had a good experience, what have they got for me this time. And that recognition, that moment is enough for them to pause and begin to engage with the content. That engagement that we generate, whether it's by longer comments or more shares or more dwell time, and our content further amplification beyond our follower bases. And that's because the algorithms know that there's a good chance that our content will outperform something else that they could surface for any given user. And obviously, the engagement with our content contributes to our on-site performance and our monetization there, too. And of course, while this process is going on, we're building -- all of this data is building and contributing further to our audience insight. So every stage of the process, every stage of this cycle, we're benefiting from subject expertise, creativity, platform skills, brand recognition and audience insights to make our content more valuable. Moving on to the next slide. As James has mentioned, we have our creator network initiative, and that's about significantly scaling our output. We have 2 key strands. And the first here is The Tab's student creator network. So as you can see on the next slide, for anyone who may not be familiar with The Tab brand, one of the strengths of The Tab is its existing network of student journalists, universities across the country. And they are mentored by the main HQ team in London, and they contribute hyperlocal news articles for the site. So we are shifting that from news articles into being a squarely video-first proposition. So this original content is a mixture of out on-the-ground reporting, vox pops, personal opinion and news reaction. Obviously, the students have been away for the summer recently. But even during that period, they delivered coverage of a major fraud investigation at Manchester, the Jason Arday tragedy, uni guides. And of course, they're now producing a whole raft of guides for freshers. We have more than 50 local TikTok and Instagram accounts to distribute this content, giving us great local relevance and really strong aggregated reach. So almost 0.5 million followers just in the local network, and we have the option to promote videos with national relevance on the brand's main pages. For Q4, we're ramping up across the universities, and we're pacing to be delivering our target of more than 300 videos per month, which is broadly in line with the volume of flat articles that those teams used to produce. So quite a lot of good progress there. Next, we have the entertainment content creator network. So this is the other live strand of the plan. So on the next slide, you can see what we're trying to do here is plug into the enormous appetite for screen-based entertainment that has typically been the lifeblood of Entertainment Daily, TV Guide and our soap sites. So as James mentioned, we're onboarding a stable of creators with as much enthusiasm and passion as our existing team and crucially by giving them access to our channels, we're giving them the opportunity to put their content in front of the group's 10 million followers and beyond. So they're delivering show reactions, speculation, explainers and commentary alongside our current team. So we think that this combination of their authentic passion about the shows they love with our brand credibility and reach is a really powerful formula. So we're on track to have 30 creators producing for us during Q4, which should be delivering something around 20 million video views per month. So that's the content side of the creator network. So now, as James mentioned, we also want to increase what we're doing in terms of direct sales. At the moment, the lion's share of our advertising revenue is programmatic, and we focus here because of the high margin profile. But we've been fielding an increasing number of inbound requests from clients who want to access our brand's credibility and the team's creativity. So we've already delivered campaigns, as you can see here, for Wrigley's, Adobe, and many more because we -- in delivering those campaigns, we've been building our reputation among those brands and the agencies that buy for them. And we think the creator network that we're expanding really unlocks a significant opportunity for direct sales because what clients increasingly want is the authenticity they get from branded video fronted by creators, but with the confidence that they get when they buy campaigns through a professional media owner that they can trust. So our direct sales operation, we think, is a key mechanism to drive value from the work we're doing to upscale video. By the end of this year, we want to have our sales team in place ready to begin delivering campaigns through all of 2027. And then lastly from me, this is a brief look at how we're experimenting with AI tools with the first stage of our new proprietary tool called SignalForge. There's a broader road map for this product, which sees it become a fuller suite of publishing tools. But in this first incarnation, it's supporting our editorial teams in the entertainment group to become even more efficient. So this view here that you see is what an editor on Entertainment Daily may see when they open the tool, which is a ranked list of potential story opportunities that SignalForge has surfaced. And then on this next slide, we see a bit more detail of how the system fits into the editorial workflow. So if we just go to the next slide there that's more clear. So on the diagram here, we've got the system layer at the top and the human layer underneath. So in -- there's a charactery learning phase or step 0, as we called it, where we train the system on an archive of our own stories and associated data to give it a base of knowledge. And then when we move into live production, step 1 at the top there is seek. And based on the knowledge that has been given, it sweeps multiple sources, including news sites, press releases, soon to be social feeds, podcasts and videos to seek out story ideas. Step 2 is where it ranks those ideas for the editor to select, which is what you saw on the previous slide. So using their knowledge, the editors will further sift, reject the stories that they don't want and brief the system in terms of the specific angle of story they wanted to draft. SignalForge then creates a draft of the story based on its knowledge and the brief, the relevant house style, and it will then also run its own compliance checks. And then that piece goes back to the human editor, critically back to the human editor for review, a polish of the story, edits. And once approved, it goes live in the CMS. We're not using SignalForge on all story types, and we're getting better results on more straightforward news reporting. But we are using it, seeing research time reduced by around 75%, at between 66% and 100% increase in the volume of published stories. So a really big efficiency gain for the teams there. That's it from me.

Thank you very much, Jim. So briefly, let's look at the future, what the future looks like for us. We plan to continue the expansion of the portfolio. You can see here on this chart, we've moved in 2019 in the darker blue to 11 products by 2026. And acquiring and creating into the future will continue to form part of the strategy. Expanding the output and distribution points for our content is also key. So 200 creators delivering over 500 pieces of content by October, straight November, absolutely will be part of how we deliver growth for the business in terms of reach, engagement opportunities within the walled gardens. And diversifying our revenue streams is going to be critical as well because more diversification will create a more robust model. Open web activity has been pretty strong for us. On-platform activity has been growing over recent years, but moving into direct client contracting and sales will become much more important as we go forward. So 3 key focuses, really, in terms of revenue generation as we move forward. Looking at the global ad spend going into 2030, you can see from 2026, it's going to move from around $900 billion, just over $900 billion, I think it's $920 billion to about $1.3 billion (sic) [ $1.3 trillion ] by 2030. So I know there's various views on being ad funded, but there's no question, it's a growth market. And there will be more money flowing through $320 billion by extra by 2030 is the forecast. So in summary, we think we've had a resilient first half performance despite the significant audience headwinds. I mean it has -- there's no question, it's been challenging, but I think we've contended with those challenges pretty well. The advertising strength within the business continued throughout the first half as we grew our values by 20%. And the expansion of the business through a creator network and revenue diversification will certainly strengthen it as we move forward. And in addition to that, we continue to have cash in the bank at around GBP 2 million, and that's forecast to grow towards the year-end, which leaves us ready to move and ready to focus on additive opportunities as they may come out. So we're only being very -- we've been selective in the sense that we've only wanted to execute around opportunities that were clearly going to bring a financial benefit to the business in the short to medium term, and we'll continue to deploy a very, very focused, thorough DD model in order to ensure that. So momentum continues to 2027 as we will grow the business into the next year. Thank you.

Perfect. Thank you, guys, for updating those investors today. [Operator Instructions] For your reference, a recording of today's presentation will be available on the Investor Meet Company platform shortly after the meeting has ended. Guys, as you can see, we have received a number of questions during today's presentation. So James, if I could just hand back to you at this point to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end.