Frontier Digital Ventures Limited (FDV) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the Frontier Digital Ventures Half Year Results Briefing. [Operator Instructions] I would now like to hand the conference over to Shaun Di Gregorio, CEO and Founder. Please go ahead.

And welcome to our half year results presentation. As per usual, we released a fairly substantive update to the market at the end of last month, which was our quarterly update that for those who have followed our company will come to know that gives you a pretty good sense of our half year. Obviously, what we released to the market this morning was our audited accounts, and we've provided a presentation, which we'll shortly walk you through to pull out some of the highlights. But thematically, it's very consistent with what we communicated back in July. And what we told you then was we'd had a really strong quarter, and it had rolled into a really strong half for the business. So we're quite pleased. As to our progress, and we'll share some of the highlights with you today. We've got up to an hour. Whether we'll need that, we'll see. We'll walk through this for the first sort of 20 minutes or so, 30 minutes, and then we can go to Q&A and happy to answer any questions that folks on the line might have about our results. Just to recap our portfolio as it sits today, it looks very different from what it was this time last year, of course. We use the second half of last year and the first part of this year to build our portfolio through some strategic acquisitions, which are now contributing to our financials quite significantly, and we're pretty pleased with that. And we'll give you some more information about those businesses through the course of this presentation. Certainly, as we get to the finish of this full financial year, we'll then be in a really good position to provide our investors a far more granular recount of the performance of those 100% owned entities that sit in our portfolio. We now have 6 100% owned entities in the portfolio and we'll talk a little bit about those today. But certainly, with the fullness of time, this financial year, we'll be able to give investors a really good granular look at those 100% entities toward the end of the reporting period. So 16 companies across sort of 21 markets. We mentioned back in July that our run rate, our revenue run rate has increased significantly, and we're very pleased with what is now a significant recovery or a significant period in time where these economies are opening up post-COVID, and we're seeing a lot of traction. Particularly just goes to the strength of market leadership as we've spoken about over the past 18 months. And we're pretty pleased that our portals, our businesses are all really strong market leaders, and the opportunity for them is to make the most of it over the next little while. Our ambition is we've communicated regularly is to be the leading operator of the best online marketplaces in emerging markets. There are some big players in that field, familiar names to those that are in the industry, and we certainly have aspirations to be a global leader. We'll not be in every emerging market. We'll be in select emerging markets. We'll be in those emerging markets where we think we can leverage market leadership and add to those businesses the ability to grow their product offering to consumers. But we do have the ambitions. We're very selective about where we go, and we feel like we're right on track to achieving those ambitions. When we look at the half and just to give you a sense of what I'll walk you through today, a bit of a trading update, July. We'll talk to the results. Operational update we've included as well and some strategy reference material for those who might be a little newer to the FDV story. Just post the results, we have had a really strong start to Q3. This is a consequence of businesses continuing to improve their revenue trajectory through the course of the middle of this year. certainly off the back of where we were last year. This time last year, I think we were just seeing the seeds of recovery. We saw some green shoots in July and August. Certainly, been an interesting journey from there, but we're now seeing pretty consistent and pretty strong recovery across the group. Encouragingly, some of the bigger businesses are performing well, which really bodes well for our overall performance. In July, we had a tick over or around $5.5 million in economic share revenue. So you're aware that we report on a 100% basis. But when we carve out the economic share, you'll see that the trajectory is now really strong. We mentioned back in July that our run rate out of Q2 had us in at about $52 million. Our run rate out of July, if you do the math has us into the $60 million. So we're seeing some really strong revenue growth trajectory. And as I mentioned, the good businesses are performing well. And we're seeing some real momentum in a lot of the businesses. And this is off the back of market leadership. It's a really strong part of the recipe when we're thinking about performance of the business and really pleased with where we've got to this month. So all bodes well for a really strong finish to the year, but this really puts us in a great position as we continue to build the revenue story in our business and as we continue to invest for growth. So very pleased with where this -- where July landed us off the back of what was a really strong Q2 as well. Do want to continue to update the market around the movement from just pure classifieds revenue toward more transaction-based revenue. So our skill set is identifying really strong classifieds leaders that have upside potential. And the way to think about that is that classifieds leadership is super critical. That's what we do. We go out and find good, strong classified leaders. We then work with the businesses to help grow them faster than they otherwise would. And that more often than not involves 2 key things. One is, of course, optimizing the existing business, the core business, the classifieds business. But moreover, it's getting involved in facilitation of transactions across the board. So whether that's houses, cars or general classifieds. Now a lot of the growth and what we bring to these businesses when we invest or acquire them is our ability to grow them faster, through unlocking just their core business, but moreover, is this movement toward transactions. So we've been talking about the model evolving toward transactions for a long time. So you're now seeing an increasing amount of the revenue in these businesses start to be generated from transactions. And perhaps most encouraging for us is that the businesses that we acquired from Adevinta, 4 of them had 0 transaction revenue. So these are just good, strong classifieds businesses. They're what we love to get our hands on. And you can see that, that gives -- based on the percentage of revenues coming from transactions, there's a lot of headroom in these businesses to grow them faster and to get their core businesses running better. But of course, to get them involved in transactions and improve their trading performance. So that means seeing growth return on the revenue side of these businesses, which was probably not great when we bought them, but also improving their trading performance, which is we want to see and get closer to breakeven and ultimately profitability, but very much in a phase of investing for growth, and this is one area where we're seeing that growth emerge. So that just gives you a bit of a flavor of what's happened since we last spoke. When we look now to the results, probably my favorite chart, which goes to the revenue performance of the business from IPO. So on the left there, you'll see the 100% view, that's everything, and we carve out what we own, of course, on the right side. Now just to put it in context, in the month of July, we did more revenue than we did in the second half of 2017. So in the month of July, $5.5 million on an economic share basis. In the second half of 2019, we did $5 million as a business. So you can see that our trajectory is increasing rapidly. In fact, all of 2016 was $3.8 million. We did $5.5 million July just gone. So when you look at the growth trajectory, we think we've retooled the business. We've put us on a much more aggressive trajectory on our revenue growth, and we're going to continue to invest to grow the revenue across the portfolio. But very pleased with where the first half got us on an economic share basis and really pleased with how July and this quarter is starting to look as well. Bearing in mind, as I said, that we've done more in July than we did in the entire second half of 2017. I think that bodes really well for our investors. When we look at the EBITDA view, our goal, as you can see back in the day where we own smaller portions of these businesses, while they were losing a significant amount of money, was to then grow our position and grow our ownership of these businesses, they got closer to breakeven. And our ambition is to be able to sustain ourselves on a breakeven basis while we invest for growth over the next 18 to 24 months. And we see a really big opportunity to grow significantly our revenues in the next 18 to 24 months. And we think we've got ourselves into a position where we've got a really sustainable performance. We've got that to breakeven. And even with the new investments that have come in, we've had a really strong July on an EBITDA basis as well when we look at the portfolio. So if you'd strip out the new ones, obviously, we get more profitable, but we are really investing for growth and we're able to run the business on a sustainable basis. Now that we've moved past the days of losing lots of money back in 2016 and 2017. So this is right on point in terms of our strategy. This is why we increased our ownership of these businesses over time as they trade better. And it goes to our ability to identify really strong classifieds businesses with market leadership and grow them faster as they expand their offering into things like transactions. But to get us to around that breakeven part and then invest for growth is the key focus for us, and we feel like we're really on track. We're really pleased that we were able to get to this point, given the volume of M&A activity we've had, how those businesses came to us and what we're now seeing some of them start to do with a bit of input from FDV and really focusing on growing their revenues while we do it on a more efficient basis and get them through to breakeven as well. When we look through the portfolio, you can study this in your own time, but you'll see that add back a lot of the currency actually, which -- when you look at the Australian dollar this time last year, it was 60-something cents when you look at it sort of mid-70s now. So when you add back some of the currency exchange stuff, these businesses have grown even faster. And that's been fantastic, and we're really pleased with it. Even businesses that look like they perhaps have not perform in a stellar way, maybe AutoDeal back in the local currency view. They've actually had a pretty strong period. And interestingly, AutoDeal is one that actually grew through COVID in 2020. So they're all performing as we'd hope. There are some smaller ones there that we need to think through, and we need to think about their position in our portfolio and what we do. We really want to sort of kick it in with these businesses now and focus on growing them and very much, as I said, is our focus. So good strong results across the group. And again, what we found was our really good businesses are starting to perform well. And we've got some work to do with a couple of them, a couple of the smaller ones. But the ability to grow these businesses certainly through the back half of last year and into this half has been right on point for us. Perhaps one of the more encouraging things we've seen a steady recovery in Myanmar. We took an impairment on CarsDB in the first half. We actually had an interesting accounting treatment of iMyanmarHouse where we'd effectively according to the auditors loss control, but then regained control in the same reporting period. So there was a fairly modest impairment of about $100,000 on iMyanmarHouse through that accounting mechanism, which was to lose control or regain control within the same reporting period. The encouraging thing about Myanmar, I guess, is that iMyanmarHouse had revenues in July of around AUD 85,000 again. So they're now starting to track back really well, which is really encouraging. Back in, I think, April and May, they'd effectively shut the businesses down while the domestic politics played out. But now in July, they've now had a really strong come back. So I think that the nervousness we had around Myanmar is subsiding. iMyanmarHouse is really back in business and CarsDB is not too far behind. So very encouraged with those 2 businesses in that period. There's always a quote stuck in here somewhere, but essentially, it just reflects what I've spoken about over the last 15 to 20 minutes. We've had a really strong half. Our revenues are annualizing at a more rapid and rapid rate. Given our July performance was more than our entire second half of 2017. We think that our strategy is on point in terms of what we've done over the last few years, increasing our stakes in these businesses as they get to that breakeven point, where we've added to our portfolios and businesses which we think have a tremendous amount of opportunity for us to grow. And we're able now to do that at this breakeven and invest for growth over the next 18 to 24 months. And we think that, that positions us really well in terms of our vision, which is to be a global leader in this field. We look at big players, and we look at what we've achieved in a reasonably short time frame without rushing, but without going too slow. We think we've got the pace about right. The acquisitions were about the right size. And at the end of the day, we're really fixed on how we create long-term value for our shareholders. So that gives a bit of a sense of the results over the first half, notwithstanding the fact we shared probably a bit of this material back in July, anyway. Just by way of operational update for people, you'll see that we expanded our footprint with some new acquisitions. We also increased our stake in Hoppler during the last couple of months as well. And of course, in Moteur in Morocco back earlier in the year. And we bought out the rest of InfoCasas, which took effect in, I think, in late June. So we'll see the benefit of that as the year unfolds. But when you consider where we were a year ago, where we are today, our revenue trajectory, the fact that we've got greater economic share of businesses that are starting to perform really well. Key markets for us like Pakistan have recovered really strongly, and we're seeing both of those businesses performed well. We had some palpitations back in February, March in Myanmar. But again, those businesses are now back up and running and operating. And as I mentioned, iMyanmar going really well. So look, there's still patchy moments around with COVID, but fundamentally, we think we clearly passed the worst of it, and we're actually now seeing really strong sustained recoveries. And the benefit, I guess, out of that period of being a market leader and having strong classified foundations and then leveraging those brands and that strength into providing more services around the transaction. So our footprint, we quite like at the moment. And we're really now focused on making sure the businesses we have grow really well. When you look at what's been achieved over the past 6 to 12 months, certainly, if I can just train your eye to the right of screen where you see the revenue by business. And notable that a couple of years ago, we were critiqued of being too reliant on one business. We think we've spread that risk really well. We've got it across a number of businesses now and all of which are strong and growing. And the minimum performance in our portfolio, that bar just keeps going higher when you look at our portfolio performance. We said a few years ago, we wanted to get all of our businesses above AUD 1 million in revenue. You'll see that most of them are there now, and we start to set that bar higher again where we can have a portfolio of really strong market leaders split pretty reasonably across geographies as well. So we've diversified our risk on many measures over the past sort of 6 to 12 months. In terms of some of those activities I mentioned fleetingly. We try to keep ourselves busy, and you can see there on screen some of the activity that's been going on in our business just the last 6 months across 4 pretty good companies. So I won't go line by line, but you can see that all of these are market leaders. They're all in markets that we really like, whether that's LatAm, MENA or developing Asia, and are all important in the development of our portfolio and the value that we're creating. As we take consumers, as we take advertisers and obviously, investors on this journey of really strong classifieds market leaders, running those businesses well, but leveraging those positions to then develop these transaction streams and these transaction revenue streams. And keep in mind that those transaction streams are going to vary from market to market as well, which is really the fascinating part of what we're doing. Just in terms of a bit of a strategy recap. As we've mentioned in the past, our skill is really identifying good early-stage businesses. And as I said, we still track around 1,200 classified sites every month, across about 50 countries in target emerging markets that we like to keep informed about. We know that the best ones are the market leaders, and we seek those out and we try to invest in those businesses and acquire them on terms that are favorable, I guess. And as the businesses grow, we increase our stake, and that goes to the chart of the EBITDA performance of the portfolio. A couple of years ago, we owned mostly minority stakes as a lot of these businesses we're losing money and burning money, but as they evolved, as they've got their models right, as they've got their leadership positions entrenched, that's when we like to step up and own more of them. And you can really then leverage that position, as we said, into dominating markets. And it's not about just being a classified leader, it's about becoming a marketplace. And there are some terrific examples in our portfolio, whether that's Zameen, which everyone is very familiar with. Whether it's InfoCasas, which is now hitting it out of the park. We're really pleased with the progress of Fincaraíz in Colombia. So these businesses are now starting to sort of flex their muscle a bit as they become marketplaces in each of their geographies. And that just puts them in a really strong position to then leverage what they do. And as I've said sort of over again, that the businesses we acquired have got all of those early-stage characteristics about them. Our opportunity now is to grow them faster, and do them on a more sustainable basis, i.e., reduce losses and ultimately breakeven in profitability over the near term. The model is predicated and our strategy seeks to tease out the value that sits there around this model, around what was a traditional online classified environment, which is all too familiar to everyone. It's been around a long time. It's not that hard to understand. But if you can execute that really well, again, it's moving into the real long-term value in these markets, which is becoming a marketplace. And into that marketplace, it's the opportunities around the transaction that create a whole lot of value. Now whether that's -- these businesses providing ancillary products and services, which are not new, but when you're doing ancillary services and products around just a classified space, it's fairly limiting. When you start to think about the transaction, not just advertising and e-mails. When you start to think about the entire transaction of the goods on your marketplace, those ancillary opportunities are far more value-creating. And now whether that's finance, which once upon a time when you're running an auto site or a classifieds property site and you're trying to sell finance at the same time, it's kind of -- it's pleasant, but not that impactful. When you're actually narrow down the path of saying, well, you know what, we're facilitating this transaction, providing finance for consumers is far more relevant in this environment of a transaction-based environment. It's far more relevant when someone is about to buy something than just looking at it. So when we talk about transaction-based marketplaces, fundamentally, we're talking about the economic event of the car, the house or the goods being bought and sold. But when you're at that point, when you think about it as a marketplace, all of those ancillary revenue products and services, you were trying to sell when you were just running a classifieds business they start to make a whole lot more sense to consumers and sellers when you are actually talking about the transaction. So this is continued evolution of how this customer journey, how the seller's journey connects around the transaction, not just the advertising and how all of those other products and services that you can put to these consumers and sell at that point, they just make a whole lot more sense because they're relevant, right? If I'm looking for a house, I'm probably thinking about finance, but I'm not going to apply for a loan if I'm just talking to a real estate agent or a car seller. If I'm actually talking to that car seller or I'm talking to that real estate agent about the actual transaction, then things like finance and other products and services make a whole lot more sense. And of course, this is what we live and breathe every day. And when we just sort of step back and look at the overall strategy, we've -- this is not a new slide for people who have followed us, but we're right in this phase of building value, right? And that's about all of the things I've just mentioned. It's about the current business and optimizing it. It's about the transactional opportunities, and it's about our ability to own more of the companies that are doing well and get ourselves into a far stronger position. And that's -- if you want a mission for the next 6 months for us getting into next year, it's about really strengthening our company and it's about getting us into next year in a really strong position so that the next 18 to 24 months are really productive for what we can achieve, and we're really focused on that outcome. And of course, we do all of those things. We're always asked about the demonstrating ability to monetize what we've done, and that's not lost on us. We -- it doesn't keep me up at night, but I'm obviously aware of it. I've been running public companies for a long time. So we're very aware of opportunities that might be on the horizon to ultimately monetize these things. But there's just so much value that we're seeing coming out of these businesses. And if investors get their heads past just classifieds and start to think about the role that classifieds platforms play around transactions over time, the amount of value that's sort of latently sitting there is significant. And it just goes to this idea, if we're looking at a classifieds business, we'd size it up by counting ads and counting advertisers and thinking about the percentage of that, that we might get our hands on. But moreover, when you think about transactions, you're resizing these markets significantly. And that's where the opportunity is in these businesses. And we think we're doing that in a really organized way, and we're just very optimistic about the value that that's going to be created over the near and medium term around the businesses in our portfolio. I'd love to -- I love promoting the fact that you've got to sort of stick at the story for a while. We're not a sort of flash in the pan company. If you look back at my background, it's very considered and consistent REA for a long time running our property for a long time. And we think with FDV, we're still much closer to the beginning than the end of this journey, for sure. And we'd like to focus our mission on running our business well. And we know if we do that, then these sorts of graphs kind of take care of themselves. Just a quick snapshot on our register, which again is probably far better balance than it was 6 to 12 months ago, where our liquidity is improving and our market cap obviously sits just neatly above that $500 million, which is great. I'd love it to be more than that. And we passionately believe we can build a $3 billion to $5 billion business. And if you look at our revenue trajectory, you look at the trading multiples, I think when people start to look through and see the value in our portfolio, you're going to start to see the share price catch up. And I can't remember a business that I've run where it go up to head. It's always caught up to what we were doing because certainly, what we're doing now in emerging markets with the model that we've done around ownership, the ability to increase our stake over time, and then this dynamic around transactions becoming such a significant part of the equation, I think investors and our share price will continue to catch up to our story over time. And again, I think if you run these businesses well, and you're doing all the right things, these things tend to take care of themselves anyway. The appendix just reminds people that when you try to figure out our statutory accounts, it's a bit difficult because 2 of our biggest and profitable businesses are not consolidated. It's a bit of a challenge just muddling through the statutory numbers. But I would just continue to point you back to the economic share view, which carves out what we own. And I think is the best way to sort of track our progress. And we're really pleased with the momentum that's building in the business at the moment. So I think that is the last slide. So I'm going to go back to the moderator at this point. And I guess we can open up the call to any questions that anyone might have.

[Operator Instructions] The first phone question today comes from Anthony Porto from Morgans Financial.

Well done on July. I guess just moving down that transactional path, just the competitive environment it brings you into. I'm just wondering about the larger competitor set there, and I looked at recently in Colombia with La Haus raising kind of USD 100 million to attack that transactional opportunity. You've generally got a smaller funding envelope in most of your markets. So I guess you've shown a propensity to fund within the limitations of the business. So just your ability to kind of get to that aspirational target if it does become a land grab in that area. And then I guess probably 3 from me. Just July revenue profile, it looks pretty good, 9% growth on strong June. Obviously, you've pointed out. Is any of that currency based? But I don't think the Pakistani rupee did you any favors in the month. So I guess it's in constant currency in terms is that better or worse? And then the transaction revenue profile of 48% in the first half. I guess, what does that look like ex Zameen to get a sense of the uplift potential in the other assets? And I know you mentioned that the Adevinta ones virtually have none. But just, I guess, what does that look like ex Zameen. That's it from me.

Yes. No worries. So the first question, there's a couple of ways you can look at it. You can look at markets being -- having new competitors come in and raising lots of cash to pursue a model that is still unclear as to what's the best version of it. I think a lot of those companies are trying to buy what the incumbents have developed over many years of work in those markets. So Fincaraiz is a clear leader. And that's something that is really valuable when you want to go down the path of opening up to transactions. La Haus and there will be others. I'm sure you look across at all of the markets, there's money being thrown around like a confetti chasing the transaction model from a starting point of 0. So it's tremendously expensive and difficult to go into a market where there's an incumbent and try and launch yourself into doing transactions from scratch, and it takes a ton of money, and it's extremely risky. And there'll be those that pull it off and there'll be a longer list of those that don't. So I mean part of our thesis has always been that the best starting point for understanding how you can leverage into transactions is being the market leader. And so we're very comfortable with that. For us, La Haus is arguably educating the market, and we're also very comfortable with that. So we will continue to trial transactions in Colombia, and the early results are pretty good. If it becomes a spend fest, I'm also pretty comfortable that if I look back at the history of those competitive moments. I just don't subscribe to blowing tens of millions of dollars chasing something that I don't think you're best positioned to pursue. So if I was going to pursue, for example, transactions in Colombia, I'm going to do it from the position of absolute leadership in a classified sense, having all of the customers and all of the consumers. That's my favorite starting point. And if it becomes a spend fest, well, then let them educate the market and we'll happily take advantage of that. I can't remember whether I've got the order of the next 2 questions. But you mentioned whether July was helped by some currency. Kind of goes both ways. It was just a strong month put bluntly. And we -- InfoCasas has had a terrific month. Yapo had a really strong month. Zameen had a great month. So there might have been a little currency, Anthony, but I don't think it was sort of material in making it look better than it otherwise was. And then I think your third question was what's the revenue split ex Zameen on transactions versus traditional revenue?

Yes. Obviously, Zameen overindexes on transactions...

Yes, absolutely. And it absolutely does. And 2/3 of their revenue is probably coming from transactions now. So it blurs the line a bit. When we strip it back and we look at all of the other businesses that the volume of revenues is fairly modest on a transaction basis. But we have this, we have a couple of emerging great case studies in Zameen and increasingly InfoCasas who are shifting the share of revenue by way of a split and more and more toward transactions. So it is heavily weighted by Zameen, but at a portfolio level, that's what it looks like. But there's a tremendous amount of opportunity in most of the businesses on this model. It's just execution and time.

The next question comes from Mark Devcich from Pie Funds.

Shaun, just a quick one today.Digital Classifieds Group, a couple of Aussie guys running portals up in Asia, frontier Asia and Pacific, is that an asset you'd be interested in because it seems to fit quite nicely into your portfolio?

I don't know, mate. Are they on the call?

I don't know. They probably are.

Look, I know the guys really well. I've known them for a few years, and it's been really fun talking to them over their journey. Any new business we look at, I have a view that it would need to have $1 million in revenue or more. I think that's our benchmark now. We've -- and as much as I love what the guys at the classifieds group are doing, I think that for us now, maybe if you'd ask a question 5 years ago maybe, but for us now, they're very small markets that they're in. So we want scalable markets that can deliver business with $3 million to $5 million and $10 million in revenue. And I think whether it's PNG or I think they're in Fiji, they might be in Cambodia and maybe one other that I've missed there's certainly opportunity there. It's probably not for us. We're probably looking for slightly bigger opportunities if we were to go down that path.

Sure. Got it. And just one other. So we've seen PropertyGuru kind of back in the U.S. now. I think it's coming on at 17x revenue around there, and you've been able to kind of acquire assets at much lower valuations. Is there a kind of pressure on valuations in the market given some of these public transactions that are happening at a much higher models now?

Yes. It's an intriguing one, isn't it? Because we're growing faster than PropertyGuru. We trade better and we're arguably -- risk, but better positioned from a risk perspective. So I love the fact that they've managed to do what they're doing, and I think it shines a light on the model and the business is 100% classifieds, and they're getting a multiple of twice what we're currently trading at. Yet, arguably, we've got a better business. So whilst that is exciting for them, I think our ability to seek out businesses that we see maybe value that's not apparent to the casual user, like a Fincaraiz, for example. And certainly, valuations, as you'd appreciate, from region to region, from entrepreneur to entrepreneur very wildly. And I could point to businesses that are trying to, when you see some tiny businesses and their comparables REA or car sales, and you go, I'm just not sure they're in the same ballpark. But equally, there are some businesses where we think that they're undervalued and that's really premised around not having extracted all of the value from their classified space, but also give us opportunity around market leadership and transactions. So it's still a bit of a wild ride on valuations. So I think if you're in the public markets, it's clearly more transparent and it's audited and they're worth more. So I think that the unlisted stuff you see, it's really wild and vary depending on who you're talking to and where they are. So I mean, we just continue to try and be really sort of thorough and consistent in how we look at the opportunities. So we're not suckered into overpaying for stuff. But at the same time, some really good quality stuff you might be prepared to pay for if you can see that long-term opportunity. It's a moving phase to be fair in emerging markets and valuations.

And do you think you'll do acquisitions this year, the rest of this year? Or is it kind of more an integration year?

What are we in now? Late August, almost September. So I think that our priority at the moment is bedding down the new businesses, getting them running how we want them to run, and that means getting growth back into their revenue line and reducing the -- or improving the trading performance, reducing OpEx and getting and running more efficiently. We've stepped up in a number of other businesses as well. So really, we want to make sure that what we've done lands really well. Last November, we raised a ton of cash, and we went and invested it all. So... [Technical Difficulty]

Pardon me. This is the operator. It seems that we've lost connection with Mr. Di Gregorio's line. Please hold one moment. Please continue to stand by. We will recommence in just a moment. Thank you. Shaun is now reconnected. Please continue.

I'm not sure what happened there. I must have got cut off, but yes, anyway.

Mark is still standing by. It was just in answer to the last question.

Sorry, Mark. How much of the last question did you hear of my answer?

Yes, I think we covered it. Yes. Well done. We're just talking about acquisitions. You said more of an integration year rather than anything new for the rest of the year.