Mobile Telecommunications Company K.S.C.P. (ZAIN) Earnings Call Transcript & Summary

Thank you very much for taking time to join Zain Group's Q2 conference call. My name is Sunil Rajgopal, TMT analyst at HSBC. I'm joined by Mohammad Abdal, Chief Communications Officer at Zain Group. I would like to highlight, there will be a Q&A session following the presentation from management. [Operator Instructions] I will hand over the call to Mohammad Abdal. Thank you.

Thank you, Sunil and HSBC, for hosting the call, and welcome to Zain's Second Quarter 2021 Earnings Conference Call. Joining us today will be Mohammad Shereef, the Head of Finance Division; and Iyadh Borgi, our Operations and Business Performance Director. We'll start with opening comments from Mohammad Shereef. And after the remarks, we'll be happy to answer your questions. This time, we'll be taking the question exclusively through Slido, as Sunil mentioned. Before we begin, let me quickly cover the safe harbor policy. During this call, we will be making forward-looking statements, which are predictions, projections. And we'll be making forward-looking -- sorry, or other statements that -- about the future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Please refer to our detailed cautionary statement found in Slide #2. With that, I will now turn it over to Mohammad Shereef.

Thank you, Mohammad. Good afternoon to everyone, and thank you for joining us on today's call. Yesterday, we reported robust results for the second quarter of 2021 as we continue to execute our 4Sight strategy, digital transformation and expansion of our 4G, 5G and the FTTH networks, making the company's future ready for the next phase of growth. 2021 witnessed excellent growth in digital revenue across our markets with the data revenue reaching over $1 billion, which represents 42% of consolidated revenue. Moreover, our focus on lucrative business solutions witnessed a 16% year-over-year B2B revenue growth. We have continued our focus on digital strategy of monetizing the infrastructure and the group API platform through company initiatives and packages for government, business, IoT and smart city sectors that attracted key clients across the footprint and gaming, entertainment, fintech and the health services. In early June, we held a successful EGM, which witnessed the approval of Board of Directors' recommendation to distribute interim dividends quarterly or semiannually. For the first time in group's history, the Board recommended to pay an interim cash dividend of 10 fils per share as a part of 33 fils as a result of our strong balance sheet and solid operational performance. Of course, this is subject to regulatory approval. Operationally, Zain, of course, did an excellent performance during the second quarter increasing their bottom line. Even more impressive is that both Iraq and Sudan, despite severe devaluation of their respective currencies, had exceptional performance when compared to same period in 2020. Now I would like to start by briefly touching upon the operational highlights of the group. We ended the quarter serving 48.3 million customers, which increased 1% despite the end of management contract with touch Lebanon back in October 2020, about 2 million customers. Several price uplifts on track to mitigate the FX impact. In response to a 19% currency devaluation in December, Zain Iraq launched a massive commercial uplift program. Zain Sudan already uplifted tariffs, including international voice up by 150% and data by 100% on April 1, following the currency devaluation in February 2021. Towerco updates. Mobily announced that the IHS offer is no longer part of their strategy going forward. And hence, they exited the consortium. However, we are still working with the rest of the consortium members and awaiting a new offer. Regardless of Mobily's decision that is respected, we strongly believe that the tower deal will be value-accretive to Zain. As mentioned earlier in the previous calls, we believe in the towerco business model and its application across our markets. And today, we are happy to announce that Zain Jordan's towerco transaction is close to finalization, expecting during second half of the year, while a similar transaction with Zain Iraq is progressing. Zain Group signed an MoU with major DCC telcos for Open RAN collaboration. This will benefit us in many ways. Considerable saving, approximately 30% of foreign CapEx is expected over the next 5 years, network sharing to reduce OpEx. On the FinTech side, Zain Cash Jordan signed an agreement with Western Union for international remittances. Zain Kuwait and Boubyan Bank engaged with Central Bank of Kuwait to seek approval to jointly offer digital banking services. The license is expected in Q3 '21. Zain Sudan is planning to launch financial services this year and is in active discussion with Visa to become a card issuer directly or via licensed partner bank. Zain Saudi Arabia's microfinance Tamam continues to grow with over 114,000 registered users that has seen the loan book grow substantially over the last 12 months. After the license issuance of Tamam KSA, the Central Bank of Bahrain endorsed our request to acquire a license to deliver a full value proportion in Bahrain. Zain eSports growth trajectory continues during Q2 2021, holding 11 tournaments with over 5,000 participants and attracting 6 million social media impressions, also noting Zain partnered with UNICEF to launch child online safety booklet, promoting safe eSports and gaming to schools and universities. It is worth mentioning the continued success of growth of the group API platform that currently offers 26 entertainment and gaming live services and having over 5 million transactions per month. Substantially, Zain named winner of thee categories at the Annual Global Good Governance Awards 2021 held in London: Best in Diversity Award 2021, Leadership & Sustainability Award 2021 and a Championship Award in Women Empowerment 2021. It was also pleasing for Zain Group to be recognized with the prestigious World Finance Best Corporate Governance Award 2021 for Kuwait. Moving to the second quarter financial highlights, starting from Page 13. Despite COVID impact and major currency devaluation in two of our key markets, we reported stable revenue of USD 1.2 billion while EBITDA for the quarter dropped to 5% compared to Q2 '20 to reach USD 506 million, still reflecting a healthy EBITDA margin of 41%. The drop in EBITDA mainly on account of conclusion of CITC settlement agreement back in 2020. In last year, in Q2 2020, there was a waiver of $47 million. Net income for the quarter increased 17% to reach $138 million, reflecting EPS of 10 fils, USD 0.03. For Q2 2021, foreign currency translation impact, mainly due to the currency devaluation in Sudan, from SDG 55 to SDG 444 per USD 1, and a 19% currency devaluation in Iraq from an average IQD 1,190 to IQD 1,470 per $1, cost the group USD 215 million in revenue and USD 175 million in EBITDA. Excluding the above FX translation impact, revenue growth would have been 18% and EBITDA growth would have been 28%. CapEx on Page 16. The group continued to invest at healthy levels across operations. We closed the quarter with a total of USD 491 million spent on 5G rollouts, coupled with the FTTH and 4G expansion and spectrum license fees in key markets. Tangible CapEx represents 5.4% of total group revenue. As you see in the slide, the majority of intangible CapEx is coming from grant of 4G license in Iraq and renewal of 900 megahertz license in Jordan. Our debt profile on the next page, Page 17. The group continues to maintain healthy cash flows with a total debt reducing 8% in KWD terms compared to Q2 '20. And net debt over EBITDA currently stands at 2.5x. The drop in debt levels was also instrumental in reducing finance costs by over 30% compared to H1 2020. Moving to opcos, let's move to Slide 22, Zain Kuwait. Zain Kuwait remains the most profitable company within the group and maintained its market lead in terms of both value share and customer base, serving 2.4 million customers. Its market leadership in all key financial indicators is highlighted by its revenue representing 40% of the total market revenue and 73% of the industry's net income during Q1 2021. We expect to maintain similar levels for H1 '21. For Q2 '21, Kuwait's excellent performance was underpinned by its revenue increase by 9% to reach USD 253 million, mainly due to the growth in 5G segment and increased [ FN ] revenue. EBITDA for the quarter increased 17% due to the cost optimization initiatives as well as healthy acquisitions which translated into better collections and lower bad debt. Net income for the quarter also grew by remarkable 21% year-over-year. During the quarter, the operator witnessed impressive growth in both 5G mobile and broadband customers and resulting revenue capturing largest 5G market share in the country. The operation invested USD 35 million, 7% of its revenue, in CapEx during H1 '21. Saudi Arabia, which is on Slide 23. For Q2 '21, revenue slightly increased to reach $507 million, highlighted by the outstanding performance of 5G, B2B, Yaqoot and Tamam, our digital and FinTech arms. EBITDA for the quarter decreased by 15% year-over-year with a strong EBITDA margin of 40% on account of conclusion of a settlement agreement back in December. Normalized without the CITC waiver, the EBITDA is almost aligned with last year. Net income reached USD 11 million during the quarter, down 29%. Zain KSA invested USD 28 million, 3% of revenue, on CapEx during H1 '21, thereby integrating more than 4,500 5G sites until date. Zain KSA's concerted efforts in network quality saw it ranked first in the Kingdom's Meqyas report issued by the Communication and Information Technology Commission, which is the CITC: delivering the best 5G services during the first quarter of 2021; recording top connectivity performance in four of most popular video games; number three, having the Kingdom's fastest average response time achieved by its 5G mobile network. Moving to Slide 24, which is Zain Iraq. As mentioned in our previous call, on 19th of December 2020, Iraqi dinar revalued against the U.S. dollar by 19% from IQD 1,190 to IQD 1,470 versus U.S. dollar. Customer base increased 7% and reached 16.1 million customers in such a challenging environment, driven by the launch of 4G services. Overall revenue continued to be impacted on account of the extended lockdowns across the country as well as decreased economic activity, resulting in 10% year-over-year decrease. EBITDA for the quarter decreased to 16%. However, the net income for the quarter jumped 93%, mainly due to there was a one-time provision reversal which is no longer required. The operator invested USD 188 million during H1 2021, out of which USD 146 million relate to 4G license, which was commercially launched in late January 2021. Zain Jordan on Slide 25. Zain Jordan remains the market leader, serving 3.5 million customers. Revenue for the quarter grew 5% year-over-year, mainly due to increase in broadband and FTTH revenue on account of increased work-from-home requirements. EBITDA grew by 18% on account of the top line performance and improved collections, maintaining a remarkable margin of 15%. Notably, net income for the quarter increased by 24%, a very fantastic performance. CapEx in Jordan amounted to USD 195 million in H1 '21. CapEx was minimal spend on the -- mainly -- sorry, CapEx was mainly spent on the renewal of 900 megahertz technology neutral license, amounting to [ USD 214 million ], so gross amount. Zain Cash continues to maintain its position in the market as the largest mobile financial services provider in Jordan with plus 350,000 mobile wallet accounts. It has been rapidly expanding its portfolio to cover more services and verticals and managed to lead the processing of disbursement for the government's financial aid programs with the value exceeding JOD 100 million. Zain Cash recently obtained initial approval from the Central Bank of Jordan to issue credit cards, which will further enhance the products and services portfolio. Zain Sudan, which is on Slide 26. As mentioned earlier, on 21st of February, the Central Bank of Sudan revised its exchange rate policy from fixed rate to flexible managed floating rate. Accordingly, the SDG devalued from SDG 55 to SDG 375 per USD 1 in February 2021. Exchange rate currently stands at SDG 444 per USD 1. With a leading customer market share of 49%, Zain Sudan was able to further improve its market position by reporting a customer growth of 8% year-over-year to reach 17 million, representing 55%, the largest contributor of Zain Group's total customer base. Revenue for the quarter dropped by 23%, mainly due to the devaluation of the impact. EBITDA decreased 13% to USD 34 million while net income jumped to 109% to reach $23 million. The expansion of 4G combined with the data marketing initiatives saw data revenue grew by 4%, representing 28% of the total revenue during H1 2021. Zain Sudan invested USD 22 million in CapEx or 14% of its revenue during H1 2021. Finally, Zain Bahrain, which is on Page 27. For Q2 2021, Zain Bahrain generated revenue of USD 43 million, up 8% year-over-year. EBITDA for the period increased by 10% to USD 14 million, reflecting an EBITDA margin of 33%. Net income increased to 61% amounting to USD 3.3 million. Data revenue with a growth of 5% represent 45% of the total data revenue. Zain Bahrain is focused on the continued expansion of 4G and 5G infrastructure and became the first provider to enhance services in newly developed housing areas of the country, providing customers with much needed connectivity to support remote workings, education, et cetera. With that, I will hand over to Aram for Q&A.

All right. Thank you, Mohammad. With that, we will now move to the Q&A session, guys. [Operator Instructions] Please, Sunil, please check the questions for us.

Sure. Okay. We have a number of questions. Maybe if we can begin with can you talk through the EBITDA margin development in Kuwait? First half -- the first half results saw strong improvements year-on-year. How should we be thinking of the second half?

Okay. I take this question, Iyadh Borgi. And thank you for the question. Regarding Zain Kuwait, as you mentioned, there is a good improvement year-over-year on the EBITDA for the first 6 months, which improved from 35% to 38%. And this is mainly coming from a lower provision of doubtful debt. This lower -- this decrease in the provision is mainly due to great effort by improving the collection and also the acquisition of healthier customer and to reduce the high-risk customers. In addition, there was some cost initiatives effort that were implemented after the start of the pandemic in Q2 2020, which continue to generate savings and cost savings in H1 2021. Regarding your second part of the question, how we see H2 2021, we see that the momentum of H1 will continue. And we are very comfortable that we will deliver the same or even better than H1 2022. I hope I answered your question.

Sure. And there are a number of questions on the line. So I'm just picking it in the order they have come in. So how should we be thinking about the future growth prospects in the domestic market and other markets like Iraq?

For Kuwait, I think the market, we see the market would recover in H2 with the reopening of the border hopefully by starting August 1, which will improve the roaming revenue and also stimulate the prepaid market. And also, we see usually in H2 in Q4, the launch of the iPhone. And as you all know, the Kuwait market is mainly iPhone-driven, which this will provide a postpaid boost to the postpaid segment. In addition, with more relaxed, I think, restriction by the government, it will -- and the removal of the full lockdown, it will trigger also the back of the government and the B2B segment. And we see that there will be some recovery in Kuwait. Regarding Iraq, as you mentioned, Iraq, as we know the current macro situation economic, is very difficult. The currency devaluation that happened last year -- end of last year is not helping. And also in Iraq, the continuation of the COVID and the restriction and the different lockdown during the weekend are not helping. So all these are headwinds for the Iraq market. And the market remains challenging. However, on the positive side, the team on the ground are implementing, as Mohammad mentioned in his opening remark, many uplift initiative that will help improving the revenue hopefully in H2, also the deployment of the 4G, which should also increase the revenue and the ARPU. And, of course, we are controlling all the costs across the operation that will help on the bottom line.

Sure. Okay. The next question is on the Saudi Arabian market. What will be the company's strategy in Saudi Arabia going forward? The EBITDA margins there appear to be under pressure. How is competition developing? And any thoughts on the 5G rollout?

Okay. Thank you for the question. Okay, I'll start with the strategy. You mentioned the Zain KSA strategy. Zain KSA is maintaining their strategy that they started in 2019, which like it's based on three main pillars, which are 5G, B2B and digital. All these segments are showing great growth and significant growth and are participating more and more on the revenue of Zain KSA. These three segments are compensating really on what's happening in the Zain -- in KSA market, which is the drop and the decline on the prepaid and the consumer segment, which really started when the pandemic started last year, and mainly also from the expats leaving the Kingdom, as well, the Hajj and Umrah did not happen last year and also this year, which impacted the revenue, the roaming inbound, outbound. So all this, these three main pillars on the strategy are helping to compensate this decline. You mentioned, I think, the second point is regarding the EBITDA margin, correct?

Correct.

Yes. Two, the EBITDA margin dropped versus last year. But as you know, last year, we had a CITC waiver that we used for H1, which was around SAR 368 million versus this year or H1 of 2021, we did not use any provision -- sorry, any waiver because it expired in -- end of 2020 based on the agreement. If you normalize the EBITDA, the EBITDA will be even. So this is on the EBITDA. Your third point, I think you mentioned regarding the competition and the rollout, correct?

Correct.

Okay. For -- I'll start with the 5G rollout. Zain KSA started the rollout 2 years ago and they concentrated the main big cities with the rollout of over 4,500 sites across the Kingdom. And in 2021, they have, especially in H2, an aggressive plan to roll out on Medina, Mecca and Jeddah to continue the coverage of the 5G. Regarding competition, as I mentioned earlier, the market remained challenging, especially on the consumer side. And this is across the market, not only Zain KSA.

Okay. Fair enough. So the next question is around the other income. Can you please provide the reasoning behind the increase in the other income?

Thank you for the question. The other income, the increase is mainly on account of the one-time provision reversal of approximately $18 million. This is maintained for legal disputes, which is no longer required.

Okay. And the next question is around the ECL reversals. And what is the cause for the very low ECL of the reversals in the quarter or the first half?

Yes. If you see our operations, if you can see that all of the operations, most of the operations are -- their revenue either in Kuwait or Jordan or any other country, Bahrain, everybody, except Iraq and Sudan, it's growing. You can see the growth as well as the collection improves a lot, collection improved -- increased a lot. The ECL decrease is because of the collection is increasing, definitely the ECL will go down because of the improved collection and all major [ causes ], as I said. Then health care customer acquisition, they were reducing the high-risk customers. This all leads lower provision. That's the reason that this is a reduction.

Sure. The next question is around the FX impact. During the quarter, there was the net monetary gains on the FX due to the FX impact. Can you comment about -- a bit about it?

Okay. If I understand the question correctly, net monetary gains are dependent on the respective economy in which IAS 29 is applied. And it has nothing to do with the FX impact. Moreover, the net monetary gain or loss, it depends upon the CPI, the Consumer Price Index. Hope this cleared the -- your question.

Sure. Next question again is around Iraq. Can you provide color on the weak margins in Iraq? And what is the strategy there? Is there any change in the strategy there going forward?

Yes. I think as we mentioned before, I think the situation in Iraq and the macroeconomic situation and the devaluation of the money -- of the dollar -- of the currency, sorry, is impacting the whole market. And it remained very challenging. And as I mentioned, the team and also the group are working on many initiatives to bridge this gap and this drop in revenue with many price uplift, cost optimization, the 4G launch, new product in the market. So we see that we'll be able to reach around maybe 12 million to 14 million by year-end per month to reduce that gap. So I think we have to follow what's in the ground. And we are doing -- and the team in Iraq are doing their best to bridge that gap.

Sure. The next question is around Sudan. Are these strong net margins in Sudan sustainable or if there were any one-offs during the quarter?

Sunil, sorry, could you please repeat the question for us?

Sure. The next question is around Sudan. Are the strong net margins in Sudan sustainable? Or was there any one-off during the quarter?

Okay. Thank you for the question. Sudan will continue, even it will improve better. Because what happened in Sudan is immediately after the currency devaluation, the price across all segments is going as per the initial plan, when the devaluation started quarterly increase to reach now it is 300% by year-end. These uplift will reduce the impact of the devaluation. The adjustment in the prices will continue until SDG stabilizes. So it will be every quarter, there will be increases in the prices coming. So the margin, it will increase.

Sure. Okay. Going back to Iraq, there are a couple of questions again on Iraq. Firstly, can you take the money out of Iraq? Will this be done solely via our dividends paid by Zain Iraq? And the second question related to Iraq is do you get any management fees or technical service charges paid by Iraq?

Yes, this money taking out of from the Iraq, there is no issue. They pay dividend, we get dividend. They pay management fee, we get -- there's no issue at all.

Sure. Okay. And the next question is around Saudi Arabian operations again. Why isn't Zain KSA growing despite all the heavy CapEx?

Okay. So I think you're looking to the overall revenue not growing. But as you -- we mentioned before, the CapEx for the last couple of years, and it's continuing, is mainly towards the 5G, either to buy active equipment or also having investment on the spectrum related to the 5G, which both these investments and acquisitions are contributing positively to the 5G revenue. The 5G MBB, especially the MBB segment, is growing as per to the plan. And our ambition in Zain KSA is to continue this momentum moving in the upcoming years. So really, the decline, from where it's coming, it's coming, as I mentioned before, from the prepaid and the consumer segment, which the local team are working very hard to reverse this decline despite that there will be no Hajj this year and Umrah and no roaming revenue. So I think -- I hope this answer the question related to the CapEx and the link of not seeing this growth for Zain KSA.

Sure. I think there is a follow-up question on the CapEx. Can you comment a bit about what is the expected CapEx trajectory going forward in Saudi Arabia for that and maybe on a forward-looking 5-year basis?

Yes. I think we will continue after the last 2 years, where we have around 20% of CapEx to the revenue, mainly due to the acquisition of the spectrum. For 2021 and moving forward, we will be around 13%, which the regular trend and a healthy ratio that we -- in the telecom industry.

Sure. The next question is also around Saudi Arabian operations. Does Zain Group have a shareholder loan for Zain KSA that does not bear any interest or return? And yes, and what are the implications on the Zain Group shareholders if so?

There is no shareholder loan to Zain KSA now. Everything is settled.

Okay. And yes, again there's one more question on Saudi Arabia. With regarding to the two new MVNO licenses that were awarded in Saudi Arabia recently, is any of them being hosted by Zain KSA?

Okay. Regarding the MVNO for Zain KSA, Zain KSA is in very advanced discussion with both of them. And Zain KSA will provide some update after [ the Eid ]. But Zain KSA see a good opportunity on these two MVNOs announcement that happened early this week.

Okay. And the next question is around Sudan and Iraq. Is the management planning to take any price increases there to counter the FX impact? And how long will this continue? Any comments around that?

Yes. In Iraq, the setup is different as the price uplift are more challenging to implement its positive impact on the top line. It's not immediate. The plan is to cover 12 million per month by end of December. Currently, it is going 3 million to 4 million per month. In Sudan, the price uplift, as I mentioned previously, across all segment is going as per the initial plan, when the devaluation started, the quarterly increase to reach 300% by year-end. This uplift will reduce the impact of the devaluation. The adjustment in prices will continue until SDG stabilizes.

Sure. Okay. Can you throw some light on why subscribers are declining in Kuwait?

Okay. The main decline that we see in Kuwait market is coming really from the prepaid market, MBB or the mobile. And this really started since the pandemic started last year with many different lockdown, between full lockdown to partial lockdown, and also all the travel restriction. In 2021, what we see is also the gross adds was impacted with the partial lockdown that happened between March and May. And also because of the expats leaving, which is a portion of our market share, leaving, that impacted also the reduction of the subscribers. But looking forward, I think with the opening of the border, I think we will see a good -- hopefully good gross adds and we'll be back to our regular customer base.

Sure. And the next question is around the tower assets. Can you comment a bit or give an update on the -- what is happening on that front, especially in Saudi Arabia in terms of tower monetization?

Sorry, what's the question?

The mobile tower deal, any update on that? And what is likely to happen in terms of the tower monetization?

Yes. On the towerco update, Mobily announced that the IHS offer is no longer a part of their strategy going forward. And hence, they exited the consortium, which as I said in my transcript. However, we are still working with most of the consortium members and are waiting for a new offer. Regardless of the Mobily decision that is respected, we strongly believe that our deal will be value-accretive to Zain.

So to add to what Shereef is saying, there is many local investors. And they have a very high appetite to join the consortium. Zain KSA team are evaluating these investors to see if they fit in our strategy, and we'll be hopefully announcing the result of this discussion and negotiation.

Sure. Next question is around the MVNOs in Kuwait. Any updates or anything that is particularly happening in the market around that?

For Kuwait, I think, as you all know, CITRA awarded the MVNO license for Virgin Mobile, which will be hosted by the STC network to make it as the fourth operator in the Kuwaiti market. However, no news on additional MVNO. And also, as of now, we don't see any impact in our revenue this year and moving forward.

Sure. The next question is more of a big-picture question. Any thoughts on the M&A plans going forward?

At Zain, we are continuously exploring expansion opportunities, which will -- that will fit for our 4Sight strategy that will maximize our shareholder value. We are always looking at it.

Right. Okay. Fair enough. And the next question is around the dividends. Until '20, you only declared one final dividend every year. And with these results, you also declared an interim dividend that has been added. I mean, does this mean we can expect 23 fils for second half?

Yes. I mean, the minimum commitment for 2021, as per our commitment for the 3-year, this one dividend policy, is 33 fils. Now this 10 fils as an interim dividend, we are giving now. And remaining 33 fils will be given for the remaining period. It will be in 2022, it will be in Q1 or approximately March, April.

Sure. And what is your view on the potential impact arising from expat exodus in Kuwait?

Can you repeat the question, please?

Yes. What is the impact in terms of the expats moving out in Kuwait?

I think we are not seeing -- our market and Zain, we don't see any major impact on the revenue. Our [indiscernible] is on the postpaid. I think maybe the other operator, they have a major impact, but we don't see it at Zain. And then H2, I think it will even improve by allowing the expat to come back to Kuwait.

Sure. We have a clarification question, asking for a little bit more light on the increase in the other income that was provided earlier.

Yes. What I said...

Sunil, you mean the other income, the question on the other income?

Correct.

Yes, the other income, which is -- which I mentioned earlier, is a one-time reversal, which has happened in this quarter, where there are some legal dispute was there, there was some provision, which is no longer required. That's the one we reversed.

Sure. The next question is around Zain Sudan. Zain Sudan margin is at 34% in second quarter, highest across operations and better than usually most profitable operation, Kuwait. So how high can it get from here?

You mean the net margin?

Yes.

Regarding the margin, we expect that it will stay the same, especially because of what -- all the price uplift that we are doing on a regular basis. Every quarter, as Shereef mentioned, is around 150% on the voice, April 1. We increased again in July 1 another 100%. And we are planning to increase another 100% on the voice by October 1. And the data is also increased 100% and 100%. So I think we'll keep seeing these high margin in a local currency, if that answered the question.

Sure. And next question is on the digital banking services in Kuwait. Is there an approximate time for launching the service?

Well, as of now, it's in early stage, very early stage. There is a discussion and the Central Bank need to provide different discussion with the bank, with the telecom operator. So it's still at very early stage to give any more detail. Hopefully, by maybe Q3, end of Q3 call, we may have more detail to provide you.

Sure. At this stage, I think we have no further questions. Maybe we'll give 1 minute or so if there are any further questions. And we are maybe 5 minutes away from closing the call. Aram, I will hand it over back to you as I don't see any further questions coming in.

All right. Sunil, thank you so much. Thank you, everybody, for joining the call. Please refer to the Investor Relations website for additional updates, and feel free to contact IR team for further information. We look forward to your future participation in our third quarter updates. Wishing you all a great day, and stay safe. Thank you for joining.

Thank you all.