Kakao Pay Corp. (A377300) Earnings Call Transcript & Summary

[Interpreted] Hello. This is Allen, CEO of Kakao Pay. Thank you all for joining our third quarter 2024 earnings conference. Let's run through our key metrics for the quarter, starting with TPV, Consolidated revenue and expense and P&L, followed by business highlights for Q3 of '24. First, on key profit metrics for the third quarter. Q3 '24 TPV was up 17% year-over-year to KRW 42.2 trillion with revenue TPV increasing 18% year-over-year to KRW 12.4 trillion accounting for 30% of total TPV. Revenue for the quarter was up 17% year-over-year, reporting KRW 186.2 billion, and net loss for the quarter was KRW 27.5 billion. In relation to the default by TMON and WeMakePrice, they are currently going through the bankruptcy process, and Kakao Pay has booked KRW 31.2 billion as bad debt expense as of end of September. Since the auditors are assessing the nature of such claims and whether they are recoverable, there may be changes in the process of conducting the year-end audit. EBITDA was KRW 1.7 billion, sustaining 2 consecutive quarters of profit making. Now for the business metrics. Kakao Pay's MAU count as of third quarter end of '24 was 23,960,000 users. For Kakao Pay's major services, which includes payment, finance and money transfer, transaction per user increased 10% year-over-year, reaching 90 transactions. But as we are in the process of fading out receipt, e-document and authentication services with low contribution to revenue and earnings in order to better focus on our core businesses, there was a decline in total transaction cost count pushing down transaction per user against the entire suite of services by 6% year-over-year to 99 transactions. For the domestic market, we now have 1.1 million on and offline merchants growing the base by 15% year-over-year. Next, I will turn it over to our CFO, [ Aiden ], who will present on the details of Q3 TPV.

[Interpreted] Hello. This is Aiden. Q3 TPV was KRW 42.2 trillion, up 17% year-over-year. Revenue TPV was 30% of total TPV, going up by 18% year-over-year, reaching KRW 12.4 trillion. We are seeing sustained double-digit TPV growth across the entire suite of services. For the payment service, there was 19% year-on-year growth, online, increasing 3% and off-line 131%. Off-line TPV growth was mainly driven by the so-called killer categories such as convenience stores and F&Bs frequented by consumers, while everyday life services like paying tax and utilities payment surged in the third quarter, driving the overall TPV growth. Cross-border on and offline payments also saw robust TPV growth underpinning year-over-year growth for the entire payment services. Financial service TPV was up 17% year-over-year. Since the implementation of Phase 2 stress DSR, which is a more stringent control over household loans, total loan originations from the banking sector contracted versus last year, but the TPV for auto, mortgage and refinancing loan increased year-over-year. Stock trading TPV recorded an increase of 95%, which is twofold increase year-on-year, while total trading volume increased 29% year-over-year. Money Transfer TPV was up 16% versus the previous year. Also in June, we scaled up the envelope design on which people can write down personalized messages when they make money transfers, adding a variety of design catering to different age group taste and occasion. Users from all age groups reacted well to this as we made these envelopes in collaboration with professional sporting teams, popular emoji artists and girl groups. Third quarter revenue was up 17.2% year-over-year and 0.4% Q-over-Q to KRW 186.2 billion. We saw year-over-year revenue growth across all of our business segments. And driven by off-line and cross-border payment growth, payment service revenue was up 8.3% year-over-year, recording KRW 122.9 billion. There was sizable year-over-year growth in revenue across loans, investments and insurance in Q3 with financial service revenue coming in at KRW 55 billion, accounting for 30% of total revenue for 2 consecutive quarters. Investment service, which is mostly made up of Kakao Pay Securities revenue was impacted by a decline in wholesale business fall in the FX rate at the end of Q3 and change from gross to net basis and the way overseas stock trades are settled, which squeezed gains from foreign currency transaction Q-over-Q, while increase in overseas trading volume drove year-on-year revenue growth of 18.8%. Other revenue for Q3 saw a slight Q-on-Q decline from e-document and other segments with advertisement revenue being an exception. But on a year-over-year basis, recorded a 6.9% increase. Next is on operating expense. Q3 operating expense was up 15% year-over-year to KRW 193.7 billion. Marketing expense was up at 18.4% year-over-year due to promotions following off-line payment expansion. However, on a cumulative basis, marketing spend was 8.6% against revenue as of Q3 being kept under 10%, in line with the discipline of cost efficiency. Commission fee increased 12.6% year-on-year on the back of revenue growth from main services, which led to an increase in agency fees. Consolidated labor cost was up 10.3% year-on-year due to increases in head count following expansion of insurance service business, among other factors. We are maintaining an efficient head count planning for Kakao Pay and its consolidated entities. And driven by increase in revenue from Kakao Pay Securities and Kakao Pay Insurance and rise in related expenses, other expense was up 53.1% year-over-year, while falling 7.7% Q-over-Q. The decline is due to the changes made on the method of settlement for overseas stock trading, which pushed down foreign currency transaction costs and FX-related -- FX decline as of end of the quarter and efficiency gains from Kakao Pay Securities. Q3 consolidated operating loss was hence KRW 7.5 billion, recording a reduction in size of the loss on a year-over-year basis. EBITDA reported KRW 1.7 billion, continuing the profit streak for 2 consecutive quarters. On the back of $31.2 billion of one-off expense related to TMON and WeMakePrice, we ended up reporting a net loss of KRW 27.5 billion. But the classification under expense account may be subject to change following the year-end audit on the nature and recoverability of the claim. Grounded on steady foundation of payment and loan services investment and insurance business of the financial subsidiary will drive top line growth, and we will make sure efficient cost control measures drive improvement in the earnings structure. Q3 stand-alone revenue was KRW 156.1 billion, up 9.9% year-over-year. Q3 stand-alone operating profit was KRW 9.4 billion, reflecting KRW 31.2 billion of one-off losses, net loss was KRW 9.5 billion. Next, I will hand it over to [ Jason ], Head of Business for an update on third quarter business highlights.

[Interpreted] This is Jason. Let's first run through the Payment business. Off-line payment is on a smooth sale, while online payment solidified its footing in the market. Domestic and cross-border off-line payment is showing solid growth every quarter, and we expect to reach 5 million off-line users by November, one month earlier than the original forecast. We are actively deploying our payment service across new merchants and will also integrate with other payment methods like MST and NFC to enhance usability of Kakao Pay across domestic off-line coverage base. Payment is a subsidiary of Kakao Pay and they rolled out ‘Payssam’ in September, completing the deployment of Kakao Pay payment across the entire 68,000 merchant base driving more than a tenfold increase in payment transactions generated from the ‘Payssam’ in the very first month. For the online payment, following the changes in the e-commerce landscape, user trend metrics for open market and official brand mall is trending upwards, accompanied by growth in Kakao Pay usage in malls where Kakao Pay payment is offered as a payment option. Number of online transactions, including domestic and cross-border amounted to more than 350 million in Q3, and we expect to reach above 400 million count come second quarter of 2025. We are committed to sustaining the growth of domestic and cross-border online payment through a strong coupling with official brand malls for airliners, fashion and travel and large-scale open markets. Next, [ Jeff ], who's in charge of Services will present some key highlights for securities, insurance and the pay app business.

[Interpreted] This is Jeff, heading the Services division. I will start with Kakao Pay securities. Kakao Pay securities total deposit assets increased 55% from KRW 2 trillion last year, reaching above KRW 3.2 trillion, underpinned by growth in the stock balance. It's worth noting that Kakao Pay security stock balance was up 91% year-on-year to KRW 1.8 trillion, which is close to the company's total depositive asset of KRW 2 trillion as of Q3 of last year. Q3 trading TPV was KRW 12.5 trillion, up 29% year-on-year, while trading transactions increased by 199%. Kakao Pay Securities stock collection service leads to conversion of users of this feature to other generalized transactions, it strengthened fundamentals of stock trading service and normalizes the fee scheme thereby resulting in higher earnings and narrowing the size of its operating deficit. Operating loss, thus significantly decreased from KRW 11.6 billion last year to KRW 6.2 billion in the third quarter. In September, we gave a facelift to the Discovery tab improving ease of access to information, such as key issues related to each holdings, the order book and dividend payout information. Stop Loss feature was also released, enhancing the convenience, allowing investors to either take profit or a Stop Loss at a preset return level. Stock collection service acquired more than 600,000 users since its renewal one year ago. Many of the users onboarding through this service have migrated to other service offerings and conversion rate continues to uptrend at the double-digit level. And in November, we will introduce personal annuity savings product. We will use Kakao Pay Securities originality in designing the annuity product usually considered to be complex and difficult by leveraging the unique usability. After its rollout, we plan to promote and offer a variety of benefits until the end of the year, providing a comfortable environment for more users to manage their post-retirement asset. Next key performance highlights of Kakao Pay Insurance. This was the first quarter Kakao Pay Insurance recorded a triple-digit revenue of KRW 11.5 billion. During summer vacation and Chuseok holiday season, overseas travel insurance hit both record high daily and monthly results. Riding on the popularity momentum, we also rolled out long-term travel insurance for travelers planning to stay abroad for an extended period of time from 3 months to 8 years. In just 3 months after the launch of Toddlers Insurance, in August we rolled out insurances for elementary and middle school students. And based on the target group survey feedback, we designed a lighter version of insurance plan providing coverage for minor but essential injuries and illnesses to give parents a sense of security about their children. We expect to see top line growth continuing in Q4 with the launch of new products like golf insurance and insurance for elementary and middle schoolers supported by phone insurance showing improved results after we expanded the coverage. Kakao Pay Insurance will establish a circular structure in which insurance products customers want are offered at reasonable price, feeding into higher user satisfaction grounded on easy and convenient user experience, which in turn will drive repurchase and recommendation. Next is on the Pay app traffic and cross usage. Kakao Pay effectively operate dual channel, one being Kakao talk-based Talk Pay and the other being a stand-alone Kakao Pay app. We undertook a total revamp of pay in Q2 of '24 and carried out activities to drive conversion from Talk Pay to the Pay app, which is generating a clear impact on increasing payout user activity and retention. Last June, we also launched payment tab on the Pay app and started giving back up to 3% in Kakao Pay points when people use the app off-line. Since the introduction of this benefit, number of daytime user count for online payment using the pay app increased 144% year-over-year. As we offered wide-ranging reward benefits when people use the Pay app, number of user engagement with event rewards on the benefit tab of the app increased by 234% year-over-year. As people can freely enjoy the dual channel of Kakao Talk Pay and Kakao Pay app, coupled with offline payment and strong benefits offered Kakao Pay app's active daytime user count increased 73% year-over-year. As we scale up user touch point for cross-platform usage across major domains of Kakao Pay app, we are offering financial scenarios that best fit a user's economic context. Grounded on such efforts, we believe cross usage will continue to grow across financial services including topping up the deposit into Kakao Pay Securities account, stock trading and issuing PLCC credit cards in use of loans and insurance services. Next, Allen will share with you our ESG and plans going forward before ending the presentation.

[Interpreted] This is Allen again. after being included in Dow Jones Sustainability Index of Korea last year, we landed at global top 10% ranking among companies in the same sector. We received high scores across all segments of environment, social and governance and was recognized for our excellence. We have also expanded engagement and participated in various different environmental and social activities. In collaboration with Korea Environment Corporation, we built a system that can convert net 0 points into Kakao Pay money contributing to the spread of carbon neutrality culture. We also rolled out bigger font home screens in our app to help seniors use the app to access financial services without any barriers. We also have a separate customer service call line for people above 65 years of age to support seniors access to financial services as they are not proficient in using digital financial services. In 2025, we will continue to live up to our social responsibilities through ESG activities that are well aligned with our business direction. We so far shared the business results for Q3 of 2024. Our consolidated revenue up to Q3 on a cumulative basis increased 22% year-over-year and on revenue growth coming from the financial subsidiaries and narrowing the loss, consolidated operating loss improved compared to previous year. As we enter into Q4, a season when consumer sentiment shows an uptick, we expect to outperform in terms of Q-over-Q growth when compared to Q4 of last year. Our plan is to make a solid basis for stable growth and profit expansion powered by online payment, while speeding up business expansion through off-line and cross-border so as to maintain the growth trajectory of payment services. For finance services, although outlook is uncertain for loans due to more stringent regulation on household debt, Kakao Pay offers a variety of fun factor through reward events at Benefit tab while guiding healthy usage of financial services through the making a habit challenge, which will generate new traffic and underpin the growth of our loan investment and insurance businesses. Kakao Pay Securities overseas stock trade is up trending sharply every quarter and coupled with the annuity savings product to be released this month, will strengthen new user inflow and lock in current users, supporting our top line growth. For Kakao Pay Insurance, wide-ranging products in our insurance portfolio, which form the basis of top line growth will form the basis of top line growth every quarter. We're also seeing improvement in usability post the major Pay app update, and there are clear signs of metrics improvement for retention and user activity rate. Kakao Pay will secure its place in the top of mind of users as a financial platform that can best solve financial pain points that users encounter most in navigating their daily lives as we continue to explore opportunities and generate tangible business results. Thank you.

[Interpreted] The first question will be presented by Dong Woo Kim from Kyobo Securities.

[Interpreted] I have some questions regarding your financial services. Amid the macro headwinds, you've been able to identify opportunities for growth. Would like to understand as to how you are responding to a more stringent regulation on retail loans that is upcoming in the second half of the year. And also, with the rate cut backdrop, how do you see loan comparison market varying next year? And could you also share with us your business growth potential?

[Interpreted] This is Jason. I will respond to your question. If you look at Kakao Pay's loan brokerage business, yes, it was impacted by regulation on lending, including the phased application of stress DSR that was implemented in order to counter the household debt issue as well as to trigger a stabilization of the real estate market. We expect regulation, which was restricted previously to mortgages is broadening to unsecured loans. So banks are cutting back on new lending. So big impact is expected on the loan brokerage market. Also, we are seeing many more new players entering into the market, including the Internet-based banks fueling competition. Under deepening competition and regulation through many self-measures, we will expand our business. First, based on my data and using such useful financial information, we will leverage wide-ranging data that we have within Kakao Pay to identify potential borrowers and convert them to loan service users, so that we can expand our user base, which actually is a key pillar behind the growth of the loan brokerage business. Now if we think about regulation in Q4, there will continue to be issues around regulation on financial institutions, aggregate loan exposure. But we are strengthening our product and services, that's in line with the government's policy direction, which means less impact on household loan growth, government supported loans, loans to businesses and government rollover loans, so as to expand the verticals of loan brokerage business. Policy rate, which has been higher for longer will start to pivot downwards in Q4 following United States FOMC policy change. But since regulation on household loans, and the real estate market is going to continue and as it is quite hard for us to predict the macro backdrop, unless there are issues that can hedge against such trend, we believe that additional rate cuts will be quite limited in terms of its size. And now since the rate is coming down, government-led refinancing business will help broaden our loan brokerage user base, definitely having some positive impact on our business. And to drive upside potential in the market, we are preparing for various different types of loan, brokerage, business modeling and services so that we can bring meaningful growth in 2025.

[Interpreted] Next question will be presented by Min Wook Na from DS Investment Securities.

[Interpreted] I am Na Min-Wook from DS Investment Securities. I would like to ask you 2 questions. First one is that on the back of the TMON and WeMakePrice crisis, there's been more stringent criteria that was being placed on the registration as a payment player, and we see some of the smaller players pulling out of the market. And I think that this could actually work as some opportunity for big players like Kakao Pay. So do you have any plans to possibly make any M&A acquisitions going forward in line with the changes that we see in this payment market landscape? My second question relates to your pay app. You've mentioned during your second quarter earnings call that you've made some updates and revamped your pay app functionality. Would like to understand as to whether that has helped improve your usability and also user activity metrics and whether you are seeing any uptrend in the Q3 as well? Also, I would like to get some color on the most recent indicators, including MAUs and WAUs and would like to understand as to what your strategies are in further expanding your app user base in Q4?

[Interpreted] This is [ Eddie ]. I will respond to your question about the Payment gateway. End of last year, we acquired Payment, which is an O2O online to off-line payment solution company, and we are in the process of going through the post-merger integration process, PMI process that is. And we are bringing Kakao Pay payment services into Payment merchant base and creating new business collaboration opportunities and synergies as well. We also made minority investments into [indiscernible], and we are looking at identifying collaboration opportunities to create synergies and use cases and off-line payment. Looking at our Payment, we are also reviewing different investment cases that can help drive meaningful growth for the company and strengthen our service competitiveness and technology. M&A is also part of that review. Other than Payment, we are actively finding and exploring opportunities to invest in adjacent domains, while maintaining growth of our core businesses. We are also open to acquiring overseas companies as well. We don't yet have any definitive project but will follow Kakao Group's applicable policies and processes.

[Interpreted] This is Jeff, providing you the answer to the question that you've made. Now following the major update of the Pay app in the second quarter across payments, benefit and the home tab, we continue to upgrade the application in the Q3 as well. Using bigger fonts for the home screen for senior users, for instance, and also strengthened usability of key features of the main screen, and we expanded the app's push conversion. We applied various conversion funnels to draw in more users to visit the Pay app. As a result, since Q2, pay up user traffic and retention metrics have improved, recording all-time highs. And as of October, WAU count was up 86% year-over-year and 14% Q-over-Q and MAU was up 41% year-over-year and 18% versus the previous quarter. We have also exerted full-fledged effort behind guiding conversion to financial services, guiding people to apply for credit cards in the payment tab, we ran making a habit challenge and the benefits tab, and we guided a top-up of deposit accounts in the home tab as well. All of this is making recommendations on financial services that best fit the context of usage specific to each of these tabs. And we started this in Q3 and are seeing good efficiency results come through. We will continue to identify new contexts that can be used to guide the users to the app while offering benefits and services best befitting the usage habit of our user base. So we can drive repeat usage of our key USPs and drive sustained growth in terms of WAU and monthly active users for the Pay app. Also through personalized recommendations and by developing and expanding such scenarios, we will further cement our positioning as a financial platform.

[Interpreted] The next question will be presented by Sinyoung Park from Goldman Sachs.

[Interpreted] My name is Park Sinyoung from Goldman Sachs. I would like to ask you questions related to your financial services revenue. I see that the mix or the portion of your financial revenue out of your total revenue is going up, but your loan brokerage business is facing some headwinds basically more stronger regulations such as a stronger and more stringent DSR requirement. Compared to now, new securities and insurance business, I think it's up to a certain level at this point. Would like to understand as to what your growth targets are and what your plans in terms of revenue mix is going forward?

[Interpreted] This is Aiden. Thank you very much for such a good question. Responding to your question, first, if you were to break down our business at a high level, we have loan brokerage business, which is in the phase of stabilization and sophistication. We have securities business, which is in growth and profit-making phase. We have insurance business that is inside a very fast growth stage. Now business of brokering a loan and intermediating a loan has been around for the longest time, and we plan to maintain a double-digit year-over-year growth based on personalization and enhanced matching efficiency. On the other hand, in securities and insurance business, we will drive steeper top line growth so that we can power revenue growth across entire suite of financial services. Especially for the securities business, the stock collection feature drove new user traffic driving gradual growth of cross-border stock trading volume. The impact of promotion and strategies will feed through into year 2025. So both top line and bottom line growth will be possible. For insurance business, starting with the overseas travel insurance in 2023, there were new product launches. So in '24, revenue will increase by more than 400% year-over-year. And in 2025, 3-digit growth will once again be possible in terms of our revenue through securing steady stream of growth premium written from our current product portfolio and release of new products as a digital insurance company. Also, based on my data, we are embarking on insurance business that recommends the most appropriate products based on personalized coverage analysis and allows consumers to compare and make reasonable spending decisions. And so next year, we will see more salient results. Now in terms of the revenue mix. Out of the financial services, currently the mix is around 30%. But going forward, from a mid- to longer-term perspective, our nonpayment business will eventually account for around 50%.

Since we've spent about 1 hour in total due to the time constraint, we would like to now take the final question.

[Interpreted] The last question will be presented by Incheol Yu from Citi.

[Interpreted] I have 2 questions I would like to ask. The first one has to do with your e-commerce business. The e-commerce growth has been quite subdued. I think due to the slump in the consumption and domestic economy. Would like to gain some insight as to what your outlook is regarding Q4 and next year's TPV growth? And if you could give us the breakdown between off-line and cross-border as well as give us the breakdown between captive and noncaptive under online payment, that would be very much appreciated. Next question is on Kakao Pay's MTS. It's now been about 2 years since its initial launch. Compared to initial expectation, if you look at the market share of MTS, it seems that the catfish effect was quite limited. What do you think is the reason behind this less-than-expected outcome? And also where would you place your strategic focus in the future?

[Interpreted] This is Jason. I will respond to your question about the payment business. In Q4, as you know, there is the year-end effect online Kakao captive market, therefore, we see solid growth. And even for online non-Kakao business, there are seasonal events like Christmas and [indiscernible] Day. So in Q4, growth will continue in both the online and off-line payment. Now for cross-border payment in Q4, there is Singles Day with big promotions upcoming for online cross-border commerce and National Day of China would trigger a slew of large-scale promotions for offline inbound as well. So we expect that this will fuel steep growth. Now the details of year '25 guidance will be shared later. So I will just provide high-level color on this. In '25, payment business growth is expected to maintain a double-digit growth. But just like we just we've seen in Q4, growth will slow down slightly in terms of GDP, private consumption, EasyPay and online shopping volume. So online payment growth will fall short of year-over-year growth rate versus what we've seen in the past. So once again, the growth rate will inch down marginally. That is why we're finding ways to expand new business and strengthen coupling with official branded malls, including airliners, fashion and travel on top of tapping into merchants of large-scale online open markets. As we look for ways to grow new piece of pie through new business expansion. Kakao Pay already has 2 growth verticals, which are off-line and cross-border payment where we have strong market presence. And so we expect high growth of around 40% to 50% is possible due to this upside potential and market opportunities that we see in offline payment. For cross-border payments, double-digit growth for both inbound and outbound is projected, especially for cross-border off-line payment on solid networking with our wallet partners. We can integrate with easy pay services in the third country and drive high growth while solidifying our footing as a leading global payment operator.

[Interpreted] This is Eddie. Responding to your second question. Regarding MTS, there were market headwinds when we first launched the product into the market. But also internally, there were 2 aspects that we could have done a better job at. First, when first launching MTS, we started with a simple and light UI and UX focusing on easy access. So on the flip side, there was insufficient functionality. Another point is that -- on other point that we could have done better is building initial awareness of Kakao Pay Securities MTS release. But thankfully, we were able to identify points and levers that needed to be enhanced and stock trade activity metrics and other business measures have improved over the quarter. As mentioned, Q3 stock trading increased 29% year-over-year to KRW 12.5 trillion and number of transactions went up 199%. In October, trading volumes sustained an uptrend, posting 80% year-over-year growth. On top of revenue, bottom line was good as well. Oversees trading margin normalized from previous 7 basis points to 10 basis points. But even against that, loyal customers continue to grow, driving higher stock trading volume. Users who started using a typical stock trade service migrated to using stock collection feature, which facilitates regular trading and this has led to more than 600,000 subscribers in just 1 year since its introduction. Also, we will be focusing on offering unique investment content and upscaling our functionality. First, regarding the upscaling of the content offering by delivering investment-related news that customers are interested in, in a manner that is easy to read, packaging it as a content and to communicate timely information on stocks, users are closely -- on the stocks that the users are closely following and holding, we will be using market price alerts. All such improvements enable customer-friendly communication. We are also building a platform that facilitates communication among users through Kakao Talk and to build a circular structure where Kakao Talk users will interface with MTS to make use of the investment information, which will ultimately increase number of trading customers. MTS users will then engage in discussion clouds and communities and act upon the information on popular stocks by using stock collection functionality. We are also revamping the screen layout for order submission and stock information. We are seeing higher customer satisfaction and loyalty built up, which is translating into growth in number of users. Second, in order to strengthen the fundamentals, we've upgraded order submission feature to enhance convenience, which needed the enhancement. We also opened stop-loss feature in September, and we will continue to upgrade services to enable faster and easier transaction based on the VOCs we've received from our user base. We will also beef up business portfolio, fund and annuity savings to offer a variety of investment experience on top of cross-border stock trading. We will also grow the size of the deposit, which will allow us to provide more benefits and create synergies with Kakao Pay's other various services. It's true that the performance of Kakao Pay Securities is not up to par or expectation, but we are on a smooth sale improving every quarter. securities account deposit in Q3 continued to uptrend, NIM moving and average balance growth is accelerating on the back of new user traffic coming in through Money 2.0. So profitability profile is becoming better. In 2025, the fundamentals of business will become stronger while we perfect our new growth verticals. So we ask for your continued interest in our endeavors.

[Interpreted] Thank you. This brings us to the end of the third quarter 2024 earnings presentation. Thank you for joining us today. And if you have any unanswered questions, please do not hesitate to contact us at the IR team. Thank you. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]