Omani Qatari Telecommunications Company SAOG (ORDS) Earnings Call Transcript & Summary

All right. Okay. So hello, everyone. This is Ahmed, Ooredoo Oman, Investor Relations. Hello, and welcome. Thank you for joining us today to discuss Ooredoo Oman Half 1 2020 results. I hope you and your family, beloved one are well and safe during this tough time of coronavirus. And today course of discussion, I have with me Ian Dench, our CEO; Abdul Razzaq Al Balushi, our CFO. Before we start, I would like to explain some housekeeping formalities during the meeting. [Operator Instructions] We will start with an overview with our results, followed by Q&A session. [Operator Instructions] I will -- we are ready to start. But before we start, I would like to refer you -- I will share the screen now, I would like to refer you to slide #2 of our presentation, which is about disclaimer. In today course of discussion, we may discuss about some forward-looking statement. So in future, we are not committed to keep our view the same. If we change our view, we will notify -- we were not committed to notify you. We will refer you to our public filing. So now we will start. I will hand it to Ian. Ian, please.

Thank you, Ahmed. Okay, let's jump straight in. What we thought we would do is give you a flavor of the situation, COVID situation, and the challenges that, that's brought to the company and to give you a flavor of some of the challenges and maybe some of the opportunities as well. So I'll quickly run through that. So the COVID response, first and foremost, for us, it was a 4-pronged strategy, but first and foremost, was the health and safety of our employees. And within 4 days, we managed to move and still today, we are pretty much at 100% working from home [indiscernible] center. So that was quite a feat for the management of the company and all the employees and everyone adapted very, very quickly. Of course, we had a few teething problems in the first week or so, but we very quickly managed to move to fully working from home. Second part of our strategy was protecting our network. We saw significant growth in data traffic. And of course, as people move from Muscat back to their home governance, we saw changes in the pattern of consumption across the network. And fundamentally, we wanted to make sure that we kept the network up and running with good high-speed data for our customers. And we saw this significant growth, in particular, in home broadband, particularly driven by video and gaming. So some big shifts in the traffic and the traffic pattern. We also ran some -- or one particular off-peak data offer on mobile for those citizens that don't have home broadband. Of course, we went into a lockdown situation, so customers were very much at home. Not everyone has access to home broadband, so we ran a promotion for customers. But we did that specifically in the off-peak, because we didn't want to damage, in any way, the peak load on our network. Interestingly, as well, we launched -- I'm not sure if it's a first during the period, but we managed to launch 5G as well, the 5G home broadband service also. The third part of the strategy was a shift to digital. I think I haven't been on the last conference call, but I know that on these conference calls, we've spoken many times about our shift to a digital strategy, and we've really pushed that digital agenda. Can you go back, sorry? Ahmed, you jumped.

Okay, sorry.

So yes, shifting our operations to the digital channel. So all the investments that we made in the past in our app, our e-shop, social media, WhatsApp, these communications channels really paid off, and we were able to re-orientate the business to those online channels very quickly. So working from home and then digital channels to serve our customers because, as I'll show on the next slide, even our shops were closed during the lockdown period. And of course, supporting the government and businesses. So a lot of businesses also went through this shift to home-working. So we were very responsive to our large enterprise customers. And of course, we supported the government in a number of initiatives, particularly the Ministry of Education, Ministry of Health. We did a number of things with some special offers for our customers. In particular, we launched a stay at home free local calls offer, which was launched as the lockdown opened, and that ran all the way through to the end of Ramadan. So that was for quite a reasonable amount of time. And we did various other things, helping support the government with test kits and we supported education as well. Next slide, please. Just to look back at H1. So what we realize is not only COVID, it's been a challenging year in Oman, which started in January and February with the passing of His Majesty early on in the year. So if you remember back in Q1, we had this period of mourning, which is 40 days, which spilled over February and through that period. And then, of course, March 23 was the lockdown period and all of our shops were closed, and we went to a very limited amount of business in the country. All of our shops closed. And as I mentioned, we managed to move and re-orientate our business to our e-shop, our app and shifted our resources to be able to do home delivery, for example. Of course, there's various other things that happened during this period as well with the oil price and the impact on the economy. There have been various budget cuts, as I mentioned, there, first, a 5% budget cut, another one mentioned later on. There have been a significant number of expatriate departures from the country, around 170,000 since the beginning of the year, which, of course, has an impact on our prepaid business in particular. We've seen some signs of issues with businesses, but nothing worrying at the moment but that's something, when it comes to bad debt provisions, that could impact us later on. We haven't seen anything too drastic just yet, but there are some companies, some particularly large enterprises that are having challenges of their own. If you think about the tourism businesses, hotels, airlines, et cetera, of course, they're in challenging times, and some of the small businesses have been closed for quite some period of time. So that will be a challenge, we think, going forward, but nothing as of yet we saw in this period. Next slide, please. So just to give you a flavor of the impact on the business. So yes, our prepaid business was impacted the heaviest with the non-mobility during the lockdown period, and we've had -- that was for a reasonable period of time. So people at home linked to home broadband rather than out and about using mobile. Of course, the shops being closed, there was a reduction in prepaid sales, which is a natural kind of sales business as people buy and replace prepaid lines. There's a kind of sort of sales impact in that prepaid business. Of course, the lack of availability of recharge, et cetera also impacted recharges. As I mentioned there, we ran a free-local-calls offer, which definitely had an impact on revenue. This was a -- something that we did to support the stay-at-home initiative in the country. Naturally, roaming revenue's impacted. Also, we had -- we offloaded, and you'll see this in the financials, it's hinted in there. We had -- we offloaded our device inventory with the shops' closed. We have a lot of devices, but we were -- managed to offload those to the -- that's -- at cost rather than at -- with a markup or margin that we would normally have. Bad debt provisions are up slightly, but nothing drastic during this period. On the flip side, we definitely saw a demand for home broadband with everyone at home working from home and looking for home entertainment. So good healthy [indiscernible]. We are seeing good growth in our postpaid as well in postpaid data traffic. As I mentioned, we ran an off-peak data offer, which was received very well and added to the business. And B2B revenues have been stable, and our digital channel adoption has increased absolutely significantly. Next slide, please. So if you're looking -- here's the headline numbers. So the revenue is slightly down year-on-year. As I mentioned, if I were to take into account the COVID impact, I can see that we would be, under normal circumstances, in line with previous years, but of course, with the COVID impact, we are down slightly on 4% year-on-year. EBITDA, down a little bit more. We are, of course, trying to manage and control cost. It's a big focus of the organization. And throughout the business, we're doing cost management and cost reduction. But there's a significant obvious impact on net profit, and that's partly impacted by the drop in EBITDA, but also with the increase in depreciation and amortization. For example, the license cost, the license renewal and some new assets coming online in depreciation, which has that impact on the net profit. Next. So just to give you a flavor on the stay-at-home, a big shift in focus from the business on digital, so our e-shop. So pretty much all of our services are now available through either the e-shop for sales or the app for care and support. We're also using social media, whether it's Facebook or Twitter to communicate with our customers. But interestingly and importantly, we've been using WhatsApp as a channel for customers to communicate with us to order services to look for support. We've launched in multiple languages for the expat community here. You can do recharge, bill payments. And as I mentioned, we're doing delivery -- home delivery to anywhere in the south. And so we've made significant strides in that digital transformation in the last 3 or 4 months. And here's just an indication. So we've seen a fourfold increase in transactions on the e-shop app. You can see there, again, 40% growth. And the app bot interaction, so this is the automated chat service, which supports customers when they go through WhatsApp or into the app and want to talk to our agents. We have this artificial intelligence chatbot, which communicates with customers. And you can see the kind of growth that we've seen on the digital channels. What we're hoping, of course, is that after the -- as the lockdown is eased, and as people get back to work and back to normal business, that they -- we keep the digital channels as a preferred -- the preferred contact with our customers. Next slide, please. So as I mentioned, not much to update here other than that we launched 5G during this period. So it's a 5G home broadband service, super-fast home broadband service. We do see continued growth in the fixed business and the fixed home broadband business. And of course, with people particularly working from home or being more at home, we see increased demand for home broadband. So it's very important we launch 5G, and we've got an aggressive plan to roll out 5G in the coming year -- in the coming years, actually, the next couple of years as we move customers from the 4G home broadband to the much higher speed, 5G home broadband and fiber. Next. In terms of market share, we are holding steady. So if you look, yes, the market definitely is contracted a little bit during this period in terms of the total number of mobile customers in the market. However, we're holding our market share. Of course, the resellers here includes FRiENDi who are now on our network as well, if you remember. Next slide. This slide will show you the -- in particular, the -- I would like to highlight here the growth in postpaid. So you can see significant growth from last year to this year in postpaid. Prepaid, I've already mentioned, has been impacted. There's a slight change to the way that we account for customers. The prepaid base has dropped for sure, but there's a slight way that we changed the accounting of customers to be in line with the TRA. So a part of the difference between 2019 and '20 is that. But yes, the prepaid base is definitely impacted, not just by the lack of mobility, but by the expat population leaving the country. But also, of course, a number of customers are moving from prepaid to postpaid as well. The other thing that I would draw to your attention is the growth in the home broadband as well. So we're seeing good growth in the requirement for high-speed home broadband. Next. This is reflected in the revenue. So as you can see, growth in postpaid, growth in fixed and the decline there in prepaid, just reflecting what I've mentioned before. Next slide. Operating expenses, we are -- we have a number of programs to keep costs under control. What you'll see here in this Q2 2020 includes the handset cost as well. So taking that into consideration, our operating expenses are in line, if not slightly under, 2019. Next slide. And again here, as you can see, there's some -- we're making savings in our SG&A, particularly around staff costs. So with all of that in mind, this is the adjusted EBITDA. And as you can see, it's in line, let's say, with previous years. And I think given the COVID impact, we're reasonably happy with this performance. Here, looking at CapEx, that looks like a big number. This includes the license fee, the license renewal, which is the OMR 75 million. So if you take that into account, pretty much in line with previous years. Next slide. Again, with the license fee, borrowing's up to fund that. So that's up slightly in Q2 of this year. Next slide. Just a quick summary. So some highlights for the period. We did partner with the Ministry of Education on an e-learning platform. We do think that education and e-learning and learning from home is going to be an important factor as we go forward post COVID. So we were happy to work with the Ministry on that. We not only have our app for our consumers, but we've also significantly enhanced our B2B app for all of our businesses, particularly the SMEs. We are in the process of building our new data center, which is an important project going forward. We do see opportunities in B2B, managed services, et cetera. We were awarded and recognized for our digital transformation, as it says there. And we also won a Stevie for -- award -- or 2 awards here for our app and digital transformation. Next. So in summary, yes, our net profit decreased by 43%, primarily driven by the decrease in EBITDA, which is impacted by the COVID impact on revenues, which is, as I mentioned, primarily the mobility, prepaid mobility or lack thereof of prepaid mobility plus the free-local-calls offer. This was for quite a period of time. And of course, roaming revenues, so that's -- those -- that's the impact on the EBITDA and net profit. The net profit further impacted by amortization of the new license costs and the growth in depreciation. Some other highlights here in terms of -- data now represents 71% of overall revenues. As I've mentioned before, despite the challenges, we've made some fundamental changes to our business as we shifted to become a much more agile digital company, which has been something that we've been investing in, in the last couple of years, and that really paid off. We were able to transition very, very quickly, overnight almost, to be fully -- to serve our customers fully digitally. And we've -- as I mentioned, we've been very supportive and working hand-in-hand with various institutions in support of the pandemic. And we've done our bit in terms of providing free services and special services, particularly in Ministry of Education, Ministry of Health and such like. So thank you very much. I think now we'll open up, Ahmed, for questions.

Yes. Thank you very much, Ian. And we are ready now to move to the Q&A session.

The first question is coming from the line of Sundar. Sundar, please go ahead.

We are in an unprecedented situation, I think the numbers reflect, I think telecom companies and most of the companies reflect. I have 3, 4 questions. What I'll do is I'll ask the couple of questions now and come back later. The key question is, I heard during the presentation, we saw a sharp decline in the prepaid, I think, which I think you mentioned that it is basically due to both expat reduction and also to -- due to the TRA accounting treatment. Can you let us know the breakup? Because it's around -- the prepaid has declined on a sequential basis, around 230,000 to 240,000 numbers. We just want to hear the breakup on that. And in terms of how the trend looking, is there any -- because businesses are slowly opening up, how do you see it in the last couple of months, whether the things are improving? Or how do you see the current moment? This is my first question. And my second question is on your -- the overall CapEx. I think you still continue to build your 5G CapEx. And we just want to understand how is your outlook on the CapEx side. Because the [indiscernible] as said, there has been a bit delayed at year-end on the 5G launches due to whatever. Launches, they are doing it. But in terms of the overall CapEx, it's coming down. I just want to understand what is your strategy on the CapEx side. And last thing, I think one last thing, one additional thing I will ask about this because [indiscernible] Omantel talking about this value unlocking opportunity in the tower business. What is your status upon Ooredoo's perspective? And we know -- I think their operator is coming. What are the level of understanding? What is your take on value unlocking opportunities in the tower business?

Okay. I'll try to answer all of those. I'll try and go in sequence actually. So on the prepaid, I don't have the breakdown with me, but I'm sure Ahmed can give you that. Definitely, there's an impact with the expat population shrinking. As I mentioned, the expat population shrunk by 170,000 from January to June. So that has an impact. There's another factor, actually, a positive factor, which as you'll see, that growth in postpaid. Most or a lot of that is customers moving from prepaid to postpaid. So that's also affecting the prepaid drops. So when people move from pre to post, generally, it's with a slightly higher ARPU. And of course, it's a monthly revenue that comes to us. So we're quite pleased with the trend in terms of migrating from pre to post. But yes, there is -- as you quite rightly mentioned, there's a -- partly, it's the accounting change. But definitely, there's a drop in the population, and that's impacting the whole market. So you can see that we're holding our market share, but the actual overall market has declined. But Ahmed can give you, I think, a breakdown, offline, of the -- maybe a waterfall on the changes in that. On the CapEx, yes, we have an obligation to launch 500 5G sites this year. However, with the COVID situation and bringing supplies into the country, et cetera, et cetera, we -- we're definitely behind that schedule. So you can expect, yes, we have an investment program for 5G, but our CapEx levels, I think, as we've mentioned in the past, should stay broadly in line with what they have been in the past. With 5G as well, there is other -- it's not just a case of the investment in the 5G radio network. There are various requirements to upgrade the backbone and fiber connections to sites and things like that. So those are things that we can do in the interim and then we'll accelerate our 5G investments as we go throughout the rest of this year. But I think our CapEx will be broadly in line with what it has been in the past as we invest in 5G and the requirement to invest in 4G and other technologies drops, let's say. Then you asked about the telco. Yes, there definitely is a potential opportunity to release some value in this area. This is something that we are sort of gearing ourselves up for. So it is something that we're conscious of and part of that will be just to understand the value of the infrastructure that we have. And then if and when the time is right, of course, then we would engage with -- in a conversation with the necessary parties, but it's definitely something that's on the radar. The tower company have floated the idea that they would be interested in acquiring the towers or sharing towers of the operators, so that's very much something that's on our agenda. But no specific news at the moment. The other opportunity there is that the third operator, you asked about the third operator. So what we're currently understanding is that the third operator is targeting to launch early next year. They -- that also brings some opportunities when it comes to, for example, co-location, site sharing, et cetera, et cetera. So there are also some opportunities there. Although, again, it's very early days in terms of any discussions or negotiations, but that is definitely something that could come into play in the latter part of this year.

[Operator Instructions] The next question is coming from the line of Hassan. Hassan, please?

I know that you've touched base on the prepaid. I just want to know what your expected level of prepaid revenue in Q3 or Q4. Or I mean, excluding the whole -- I mean post COVID, it's sort of to know how much of it is because of the population drop. The second question is in relation to the handsets. I think you said something about the handsets in the presentation, but I'm not sure that I got it. Can you repeat this, please?

Sure. So actually, in the previous question -- the previous question, asked something similar, I forgot to answer that. So without giving too much and without commenting too much about the future, what we are seeing though is that if you -- March was the beginning of the -- March 23 is when the lockdown started. April was definitely the low point, let's say, when it comes to the impact on the business with the full extent of lockdown with all of the shops closed with businesses very much restricted. Also when we give -- with the stay-at-home local calls offer, which ran partly in March, all the way through April and to the end of Ramadan, that had an impact as well. So what we've seen as the country's opening up, we are seeing a steady increase in performance, a steady and stable increase. So April, the low point, May better than April, June better than May and July better than June, for example. So given the current situation where things are slowly opening up, of course, travel is restricted. So I'm not sure when that will open up. We're already in August. So I think my general sort of outlook for the rest of the year would be that it would be steady and stable at the kind of levels that we're now at, depending on if the country opens up and if travel, in particular, starts, which it may do, let's -- we don't know, but it could do, let's say, in September, for example. The other point about devices that I mentioned was so in the cost -- in the costs for this period, with the shops closed, we have a significant amount of device inventory, which, of course, we can't sell in the retail outlets and the volumes through our e-shop was nowhere near what they would be through our retail outlets. So basically, what we were able to do, however, was to pass those on at cost to the wholesale market. So that is a cost that you will see in the operating cost numbers there. So it's the revenue and the cost, which pretty much match each other. It wasn't at any -- it was almost basically at cost slightly under. So that was the impact of the handsets that I mentioned. It was something that we hadn't anticipated, but suddenly when your shops are closed for many weeks, and normally have a regular sale of handsets. This was something that we had to find innovative solution for.

Okay. So do you report the handset sales, the devices and the prepaid? And is this another reason why prepaid is lower?

No. I think -- no, it would be just -- it's in the total revenue.

So the other segments? It's in the other segment?

I'm not sure, actually.

Yes, okay. It's fine.

Ahmed, can you help me out here?

Can you repeat your question?

Yes, I was asking where do you report the handset or device revenue.

Hello?

Postpaid probably.

This is Nasser Al-Yarubi. I can't hear you again. Hello?

Nasser, yes.

I can answer this question.

Yes, please.

We report -- this is actually in various segments, it depends on the channel. Okay? So it's reported between postpaid and others.

And prepaid too, right?

Yes, there's also elements that goes, too, under prepaid. If you want the breakup, we can provide.

Sure. Okay, yes, please. We'll send Ahmed. Thank you.

The second question is coming from the line of Siju Philip. Siju, please?

I just -- I was looking at your segment results. Okay. Of course, I could see your mobile segment is actually making losses where your fixed line is making profit. This is after depreciation and amortization, based on the notes. I could understand the rationale, which you have mentioned earlier. But how do you see -- how do you -- what are the measures you have taken to improve your bottom line for the mobile segment? This is one question. And my second question is on the 5G license, because I know you're paying currently for the mobile license renewal, but -- and I understand that 5G licenses are separate. Is there any payment have you done for it? Or if not, when you're going to look for it and how much is the amount? If you can give like some thoughts on that as well.

Okay. So the license renewal is OMR 75 million, and we paid OMR 35 million this year. And another OMR 35 million is due next year.

No, I was asking for the 5G license. Does it include the license renewal as well? Or is it separate?

Oh, 5G.

It's separate. It's separate. Yes, actually, that's why we expect [indiscernible] in the last year, actually. But the license gives the permission to -- so it has the coverage, but the spectrum payment was made last year.

Last year, yes.

It was allocated last year, the spectrum. But it is part of the license obligation.

Fair enough. My first question was on...

Yes, your other question was on cost containment, and so...

No, no. My -- not my question. I'm looking at the segment. Your mobile profits are negative for the first -- second quarter and the first quarter as well, I'm saying. So while your fixed line is what is contributing to your bottom line. So I could know your -- actually, what you have mentioned earlier because of the expat exodus, because of free calls, I could understand it. But what are the measures that you're planning to offset it in the second half? Any measures have you taken in place to improve your mobile segment bottom line? That's what I wanted to understand.

Sure, sure. So yes, across the board, actually. So I mean, just generally, cost management, cost containment is something that we're heavily focused on, whether it's our operating expenses for IT or networks. So the team are looking at, on a continuous basis, every contract that we have, all the support agreements that we have. On the other side, with our distribution and commissions, for example, the team have been revisiting those. What we hope as well is that with the shift to -- the adoption in the digital channels, there are definitely some cost advantages to that digital transformation in the form of reduced commissions and reduced fees, for example. And we are -- we have an ongoing plan now to try and keep as many customers as we can using these digital channels, even as things start to open up. So it's a big focus for the business because clearly, if you look at the outlook, the economic outlook is fairly flat, let's say. So absolutely, we have to look at every area for tightening our belt across the business to improve performance. It's a big focus for the organization right now.

Fair enough. My other question is that since you mentioned that Oman Tower is interested to do a leaseback, but I -- I just want to add to that is that are you looking at other regional players as well? I'm saying, in future, of course, you guys haven't said, but -- or you're just looking at Oman Tower or like how Omantel is looking at it. They are also looking at the regional towers as well as, interesting. Are you looking at same -- are you looking at a couple of options as well on that tower sale as well? I'm saying, not just one partner..

Yes, clearly, it makes sense for us to do that rather than just looking at one potential partner. Just purely from a -- looking for the best value that would make sense. So absolutely, we would be looking at a number of options, not just one option for sure.

Okay. And my last question is that I just wanted -- since you mentioned on the third telecom operator will be in next half for us, by next year. They'll be launching, but you also mentioned some -- on the networking sites, which -- whether they'll be using. I just want to understand, is it only 1 telecom operator they can use it or is it -- you can -- it's an option of whether it's going to be Omantel as well or Ooredoo, they have that option? Is there anything specific on that or when it comes out or like they can only use one operator to share your -- the network site, I'm saying? For the telecom operator. Is there anything like that?

Yes, I don't think there's anything to stop them using more than one. But I think -- we don't know actually is the answer. So there are definitely discussions taking place because in the early days, they'll definitely require national roaming. And that's, of course, something that we would -- we're engaged in a conversation in. But how that will pan out, we don't know. I mean, that would be sort of a question to ask the third operator. But certainly, we're in discussion. We're open to cooperation. If we all come, a suitable commercial arrangement would be reached, for example.

[Operator Instructions], please go ahead.

I just have a question with regards to the royalties. With the trends that Oman is facing, is there a risk of having royalties on the fixed increase again to let's -- from 7% to 12%? And also what about the mobile segment? Is this part of the license renewal? Has it been agreed upon? Or also it can change at any time?

So on the license renewal, I -- as we mentioned, we've gone through that process. I don't envisage any changes, let's say. I think that was a process that we just went through. We renewed the license, and I don't think there's any changes there. On the royalty, on the fixed royalty, if I'm not mistaken, maybe someone can step in here. I think it's due to go up slightly in 2020. Can someone help me out here?

2021.

I think 2021, the fixed royalty goes up slightly, right?

Yes.

So it becomes 12%, again? Back at 12% from 7% of fixed revenues to 12%?

Sorry, this is Nasser Al-Yarubi again here. Yes. The royalty is expected to go up in 2022 from 7% to 10%.

2022 or 2021?

2022.

2022. Yes, I thought it was 2021.

From 7% to 10%. From 7% to 10%.

To 10%? Okay, perfect. And also, we're going to have the ITA next year, right, in Oman?

That is the plan. Although, given that it's August, it's going to be quite challenging. But I think that the target is for some time next year, yes.

And just one last question though. With regards to the profitability of the business. I mean the first half net profits are down 43% year-on-year. I'm just wondering with regards to the dividend, the dividend policy, I know the dividend is decided by the Board, basically by Ooredoo Group. But you, as a management, what could you potentially propose because the free cash flow is very healthy for Ooredoo Oman. The drop, as you rightfully mentioned, is from higher amortization, depreciation or noncash charges, but adjusted free cash flow remains very healthy. So what's your view on dividends?

I'll leave that question for the CFO.

Sorry, can you repeat again your question?

On the dividend.

Yes, dividend outlook. What would -- what's management perspective with regards to the dividend? Because the free cash flow remains very healthy, even though there is a material drop in profitability. And typically, in telecommunications sector, they give guidance based on a payout, which is tied to the earnings. So I'm just wondering what your...

Normally, we don't give future outlook on the dividend, but we will ensure that you will get a reasonable and fair dividend coming year.

Yes. I think if you look to the past, you'll have an indication of what the future might look like.

Yes, because it will depend on -- also on the end results as well so...

There is a follow-up question from the line of Sundar. Sundar, please.

I have a couple of questions. I think in terms of -- you discussed about the cost control. I just want to understand any number you want to give us as guidance for the next year, early 2020, '21. I think you -- you mentioned that digital channels and other efforts have been taken because first half, we couldn't do because of this handset part. We couldn't see the real difference. And in your presentation, you mentioned about some SGA cost, which has come down. We just wanted to understand what are the cost containment measures in the current period. That's my one question. And the second question is on the receivables and your collections. And there is a collection issue across the market. I just want to understand how this is panning out in the current context and where are we standing at the current moment, how the situation has improved from April to now on in terms of purely on the collection side.

Yes. On the cost containment, I think we have already continue, actually, very sharp focus actually. So we keep on actually working. I don't have the clear numbers on the cost saving. I can -- maybe off line I can provide you. But we are continuously making significant efforts to ensure and discussing with the relevant vendors and also the suppliers to ensure and trying to control our own cost internally actually and very strategically to ensure that we are containing the cost in a level acceptable, and it does not impact the bottom line. In terms of receivables and collection, again, we established also a small committee as well, actually to ensure daily focus, actually. So we'd have a continuous daily focus on the collections as well on the receivables. We have not seen, so far, tough challenges, but we did receive a couple of requests from some industries such as hospital and aviation, where they have requested to basically to give them easy installments and something like that. But so far, we are managing that, and we are also controlling and keeping regular follow up actually on the collections. So I think so far, we have not seen any challenges and the proof of that, that we have also, in between, repaid our facility as well. We dropped it down by OMR 15 million roughly.

Thank you. It seems that we don't have any more questions. So I would like to thank you all for joining us today to discuss our results for the last 6 months. Actually, as you know, this is like, in Zoom, we don't have a recording. We will try to put the presentation on the website, and we'll try to have a transcript as well. Thank you again for joining us, and I wish you a good day. Thank you.

Thank you, Ahmed. Thank you, everyone.

Thank you.

Thank you.