Ooredoo Q.P.S.C. (ORDS) Earnings Call Transcript & Summary

Good afternoon, everybody, and welcome to Ooredoo Group's Quarter 3 financial results call for the period ended September 30, 2023. My name is Luelle Pillay, working with Andreas in the Investor Relations team. Today, I'm joined by Aziz Aluthman Fakhroo, CEO and Managing Director of the Ooredoo Group, who will kick off our presentation with an update of our strategy and take us through the consolidated results. He will be followed by Abdulla Al Zaman, our Group CFO, who will walk us through the operations performance. As always, we will keep the presentation brief to allow time for your questions. Please type your questions into the Q&A section of the Zoom webinar at any time. The presentation is available on the Ooredoo website at ooredoo.com as well as on this webcast. The recording and transcription of the session has started now. So by attending this session, you consent to be included. Please do note the usual disclaimer on Slide #2. And with that, I will hand over to Aziz.

Good afternoon, everyone. Welcome to our Q3 investor call. As usual, I'll start with our strategy update. Our strategy remains unchanged and fixed around the same five pillars: customer experience, our people and talent, smart telco evolving the core, strengthening the core and a value-focused portfolio. We're strongly moving ahead on all these programs. We're hosting a virtual Capital Markets Day on December 6, where we'll provide an update on how we have progressed against our strategy. I'm pleased to report that we maintained our positive momentum into the third quarter of 2023, with an improvement across all financial metrics. From an operating standpoint, the negotiation with Zain Group and TASC are progressing. This is a complex transaction, and we expect to sign by the end of this year. On the sale of Myanmar, where there's several required approvals, we're advancing and obtaining these and remain confident that we'll close the sales shortly. I would also like to highlight two new key appointments. In Myanmar, Chris Peirce was appointed as acting CEO. He was previously the Chief Legal and Regulatory Officer in Myanmar. In Algeria, Roni Tohme, previously holding the position of CFO, became the CEO in August. Turning to our key financial highlights for the 9 months of 2023. A 2% increase in revenue to QAR 17 billion. Reported EBITDA grew 4% and reported EBITDA margin improved by 1 percentage point to 43%. Free cash flow was up by 4% to QAR 5.8 billion. Reported net profit was up by 28%. And on a normalized basis, net profit was up by 19%. These are the key highlights for this quarter. So we'll go into more details in the slide to come. During the third quarter, we grew revenue by 1% to QAR 5.8 billion. Reported EBITDA increased by 12%. Reported EBITDA margin improved by 4 percentage points to 44%. Free cash flow increased 8% to QAR 1.9 billion. Reported net profit was up by 49%. On a normalized basis, net profit was up by 16%. Let's move on to Slide 10 for the revenue bridge. On a year-to-date basis, our revenues are up by 2%. On a quarterly basis, it's up by 1%, mainly driven by Iraq, which grew by 24%; Algeria, which grew by 11%; Kuwait, which grew by 4%; and Maldives, which grew by 11%. Qatar revenue in Q3 2023 declined by 11% on a reported basis. This decline is in large part structural. We have scaled down on low-margin wholesale business. In addition, Ooredoo Financial Services, also known as Ooredoo Money, was carved out from Ooredoo Qatar. On a normalized basis, revenue in Qatar were actually flat. Revenue in Myanmar and Palestine grew in local currency, but were impacted by a continued FX depreciation. The kyat dropped by 22% against the dollar, and the currency in Palestine slid by 9%. In the bridge, you see others line item. This consists mainly of fintech revenue from Qatar Ooredoo money effective January 2023, which is now reported separately from Ooredoo Qatar and Masarat, an Iraqi ISP, which we just acquired. On to the next slide for an overview of our EBITDA performance. EBITDA for the first 9 months of 2023 increased by 4% to QAR 7.4 billion, while margin improved by 1 full percentage point to 43%. On a quarterly basis, we have seen double-digit growth. Group EBITDA was up by 12%, thanks to higher revenue-generating customer base, and we are benefiting from changing cost control across the group. In Oman, profitability remains under pressure, and we continue to moderate its cost structure to improve efficiency. Lower revenues impacted EBITDA in Qatar in Q3 2023, as mentioned in the slide before. On a reported basis, net profit for the first 9 months of the year increased by 28% to QAR 2.7 billion. On a normalized basis, net profit for the first 9 months of the year increased by 19%. In the following slide, you can see the bridge between reported and normalized net profit. This chart is quite self-explanatory. The main adjustments are one-off gains. NMTC won its legal case in Q1 of this year that translated into a QAR 446 million one-off gain. Then we made QAR 139 million gains on the Meeza IPO in Qatar in the third quarter of this year. On a reported basis, Q3 net profit increased by 49% to QAR 869 million. On a normalized basis, Q3 net profit increased 16% to QAR 909 million. In the following slide, you can see the bridge between reported and normalized net profit. The main adjustment for Q3 was QAR 139 million gain on the Meeza IPO, as just mentioned in the third quarter. And we recognized additional goodwill impairment in Tunisia. Our CapEx spend for the first 9 months of this year is up by 2%. The CapEx spend is expected to increase in Q4, in line with the historic quarterly trends. In the Maldives, we continue to work on strategic projects, such as undersea cables. Spend in Tunisia and Iraq were driven by further network investment. In Kuwait and Qatar, CapEx spend declined, as most of the network upgrades and 5G upgrades were done in the previous years. In Myanmar, we continue to manage the operation on a minimal CapEx basis. As a result, free cash flow grew by 4% on a year-to-date basis on improved profitability. On a quarterly basis, free cash flow increased by 8%, again on higher EBITDA. On a consolidated basis, we added 2% more customers. Every international opco managed to grow their customer base. As previously reported, the definition for prepaid based in Qatar changed to 90 days active days instead of 365 days. This led to a decline in customers in Qatar. On a like-for-like basis, our customer base in Qatar remained unchanged. If we include Indonesia, we recorded more than 156 million customers across the group. I'm very pleased with our Q3 results. Thanks to our solid performance, we remain on track to meet our guidance. As I've already touched on, our revenue is slightly ahead by 2%. Our EBITDA margin has expanded by 1 percentage point to 43%. CapEx is up by 2% to QAR 1.6 billion. We're still on track to hit the QAR 3 billion mark by end of the year. To conclude my section, we continue to maintain a very solid balance sheet. I want to reiterate a few points. We have a net gearing of 0.9x net debt to EBITDA and a very strong investment-grade credit rating. Our debt profile has not changed since the previous quarter. We have ample liquidity to cover our various maturities. We have structurally hedged for interest rates as 95% of our debt is at fixed rate. And now I hand over to Abdulla for the operational review. Thank you.

Thank you, Aziz. Good afternoon. As always, I will start our operational review. With our home market, Qatar revenue decline by 4%. The decline is mainly structured. We have scaled down on the low-margin wholesale business, and Ooredoo Financial Service was carved out from Ooredoo Qatar. On a normalized basis, the revenue was flat. EBITDA decline due to higher bad debt as a part of regular debt review. Our EBITDA margin remains solid at 49%. EBITDA has improved sequentially over quarter 2. Next is Kuwait. In Kuwait, we saw a solid commercial performance with customer and revenue both increasing. Happy to report double-digit EBITDA growth of 12%, while the margin expanded by 2 percentage points, thanks to strong service revenue performance. Turning to Oman. Competition remains intense with the third market entrant. Revenue declined 2%, mainly due to the performance of the mobile prepaid businesses. EBITDA dropped 11%, due to lower gross margin and a slight higher operational costs. To offset this impact, we are constantly reviewing additional cost efficiency measure. Customer numbers were up by 6% in Oman. Moving to Iraq. HSL was again our portfolio top performer, with a double-digit growth in revenue and EBITDA. Revenue increased by a solid 19% and EBITDA increased by 25% in Qatar area. Turning to Algeria. The customer base grew 2% to 13 million. We have a strong momentum in revenue, which increased by 9%, helped also by 5% appreciation of dinar. EBITDA grew by 17%, with a strong increase in EBITDA margin, which now stands at 41%. This good performance attests to enhance efficiency and driving profitability within the organization. Next Tunisia. Due to the challenging operating environment, Ooredoo Tunisia revenue dropped 1% in local currency. Revenue and EBITDA improved from quarter 2 to quarter 3 in 2023, supported by seasonality. Next, in Myanmar, the customer base has increased by 11% year-on-year to over 8 million customers due to active digitization effort and engagement with consumers. Revenue grew 3% in local currency due to customer growth and pricing optimization. EBITDA remained flat in local currency despite the impact of challenging external environment. In Maldives, we continue our infrastructure investment that helped us gain market share, growing revenue and improving profitability. Our customer base grew by 4%. Our revenue grew by 8%, while EBITDA expanded 10% and EBITDA margin expanded to 55%. This was achieved by our strategy of driving higher revenue and optimizing our operational expenses. Next, Palestine. Despite the difficult political and economic environment in Palestine, we have seen an encouraging increase in revenue year-on-year on a local currency basis. On a reported basis, revenue declined 4% due to the 9% depreciation of the local currency against the U.S. dollar, which is our reporting currency. Through strategic cost optimization efforts, we reported EBITDA growth of 5% and margin expansion. Our commitment to delivering superior customer experience and enhancing our offering is paying off. It resulted in a 3% year-on-year growth in our customer base, which now stands at 1.4 million. Next, IOH, Lastly, looking at our joint venture, IOH, which reported a solid result. IOH grew its customer base by 1% to reach almost 100 million customer. In local currency, IOH recorded a 9% growth in revenue. Normalized EBITDA increased by 22%, with a healthy EBITDA margin of 46%, up by almost 6 percentage points, which showcased the strong operating leverage. This concludes my operational review. Back to IR team. Thank you.

Thank you very much, Aziz and Abdulla. Before we go into the Q&A session, I'd like to highlight a few events on the slides that are tentatively on the calendar. We are attending the Bank of America MENA Conference in Dubai on the 9th of November. The morning is fully booked. And we have a few slots open in the afternoon. Please contact Bank of America or the Ooredoo IR team if you would like to meet our CEO in Dubai. We are hosting our virtual Capital Markets Day on the 6th of December. The details will be announced shortly. And now we come to the Q&A part of our session. [Operator Instructions] I'm delighted to have the whole team here with me. So we are joined by our Aziz, our group CEO. We also have Deputy CEO, Sheikh Mohammed with us ; Group CFO, Abdulla; Deputy CFO, Eyas; and Head of Strategy, Rene.

So with that, we will start the Q&A session, and I will open the line for our first question from Nishit who will ask.

I have couple of questions. First, on the Qatar operations. I know there, you mentioned it was flat if you remove the fintech component of the operations. But I just wanted to know what is happening in terms of the population within the country? Because if I look at the official stats it shows that there are more people now in Qatar than they are on a year-on-year basis. And even if I remove the distortion of the 2 months of FIFA. So is the population actually higher in Qatar? So why the subscribers falling? That's my question. Second, on the competition, it seems that you are losing market share to our competitors. So how do you see that? And also how much was the bad debts in Qatar that -- for this quarter? And why that is the case? So that's on Qatar. And if you can just add a bit more on the outlook going forward in your home operations, that would be helpful. So that's my first question. Second, on the TowerCo deal. By when do you expect the team to -- so you -- I mean you have mentioned it's going to be before end of the year, but any color on how much you are expecting that you'll get some cash out of this deal, right? So any color on that. Because you'll be contributing towers -- more towers to the JV. So you'll expect some cash from the deal. So anything on that? And what do you plan to do with that cash?

Thank you, Nishit. We'll start with the macro question, Sheikh Mohammed.

So basically it does not matter. We know that the macro economy is still is as unexpected last year. Regarding the population, we see there's a pickup in the population post summer. However, if we link to it your question, you raised that question to our customer base, there has been a clean of our base, and that's where you see some decline. Regarding the competition acquired in terms and competitive market to Qatar, we see how we are responding to more value to our customers. And from a financial perspective, yes, it's very obvious, we have some of the vision that we have done, and that's reflected also in our numbers.

And next one was on bad debt in Qatar. Abdulla?

I can answer the other question. This is sort of I would say regular routine now that we do every quarter, we will review our bad debts wherever there is a genuine case we usually provision for it.

Aziz, can you now take the tower deal case?

And so in the tower deals, we've signed the exclusivity and intense final levels, probably, we're in the final model of negotiations. As you can anticipate, we're talking of long-term agreements, multiple agreements, shareholder agreements, share purchase agreements, MLAs in every single countries. And usual -- in certain countries, there's two sets of MLAs, ours and Zain's. It's quite a complex deal. It's progressing extremely well. We're optimistic that we will close -- not close, signing very soon. The angle is before the end of the year, we are more than a half left. So we're talking about weeks. Hopefully, we'll come up with an announcement very soon. When it comes to the cash proceeds, we've already said it's a share and cash deal, Unfortunately, at this time, we can't disclose the final number. We're looking forward to give you more light on this transaction as soon as we've inked the deal, and then we can share much more details. And I'm confident you'll find it extremely value accretive.

Open the next question from [indiscernible].

Just to follow up on the tower JV since we're on the topic. I'm just trying to understand, when you talk about the synergies that this tower collaboration is meant to bring to shareholders and the company, is it synergies amongst the participants of this deal? So Zain, Ooredoo? Or do you plan on using these towers to serve other tenants outside of the original Zain umbrella?

So when we talk about towers synergies and the synergies to this transaction, again, I'll try to stay quite high level. There's two sets of synergies. There are underground synergies for our existing OpCos. As you can imagine, these are infrastructures, which were mainly dedicated to one operator, they are non-yielding assets. A lot of the operating costs are the same, whether there is one operator or multiple tenants. So the goal for these TowerCo as tenant increases, of course, this TowerCo is meant to serve all operators in each countries we operate in. On the other side, from the TowerCo side, where we'll remain a very high shareholder, we also extract synergies because we have overlapping footprint with Zain. And therefore, there is probably, over time, a portfolio rationalization of the towers. As you know, one of the biggest cost items for the TowerCo are in the land leases. So as you can rationalize the tower portfolio, you then increase the yield per tower.

Excellent. Okay. And -- on capital allocation, I think in previous calls, the management talked about an M&A kind of forward-looking M&A strategy. And I'm just trying to understand what kind of businesses are you looking to acquire, if any? And what kind of strategy is there for the M&A of the business? Which markets, which industries and all of that?

So again that this is where I'll reiterate. We're looking at inorganic growth or M&A on a very disciplined and more opportunistic manner. It has to be value accretive for our shareholders and for us. We've learned over time that usually out of footprint of transaction generates limited synergies in terms of operation because each operation needs to have their own framework, infrastructure, et cetera. We'll have our Capital Markets Day. We'll dwell much further into this. We remain extremely disciplined. We keep reviewing opportunity and our overall opportunity. What we've seen in the past, probably 24 months, as asset prices were still quite high, and the value point of entry was not that attractive. Going forward, we're hoping as markets -- we have the impact of interest rates on asset prices where we're hoping to see maybe more attractive opportunities, but our #1 driver is that it is value-accretive for our shareholders.

And just the last question from my side, and I'll jump back in the queue. I just wanted to discuss data centers. I think one of the -- in the previous call, you were discussing carving them out. And when you say carve them out, does that mean a spin-off or a financial carve-out in terms of reporting?

It starts first with a financial carve out. That's the first which we're doing internally. So an asset -- fully asset carve out again. On Capital Markets Day, we'll dwell on that. The whole idea is the data center going to be a stand-alone balance sheet for capital efficiencies. It's a different business. It's an annuity business than a general telco business. But also, it has to be a carrier-neutral business for it to serve fully the range of clients and especially the hyperscalers. So the short-term goal is for it to be a stand-alone fully fledged business as any of our telco opco. The only difference, it will be across country opco.

Okay. Great. And when you discuss these plans for data centers, I think most of the emphasis was on Oman in terms of growth. I'm just trying to understand why did you choose Oman and not Qatar? Is there something special about Oman? Or is there more demand there? I mean just kind of understand why did you discuss Oman as the kind of center of growth?

So again for data centers, I highly invite you to attend our Capital Markets Day. We'll dwell in much more depth into it. I think we're seeing strong growth across the whole footprint. The six countries we are in, something that portfolio is, Oman is one of the initial fast-growing market. I think predominantly due to its geographic positioning and the entry of the Gulf and a lot of the high connectivity points in the region. But if you join us for Capital Markets Day, you will see that Oman is one of the fast-growing markets in all the fast-growing markets.

Our next question comes from Omar.

Just a few questions from my end. Firstly, on the operating performance for Iraq and Algeria. Specifically, those two markets have done rather well in the last 2 quarters specifically. So I just wanted to have like perhaps a bit of a deeper dive on what went on, on the ground from a competition perspective? Whether there's been any regulatory changes that we missed maybe or anything? Because the performance has been rather exceptional compared to the starting trends in the last 2 quarters specifically. I'm wondering if this is something that's driven by any change that you've done in the business in terms of maybe pricing or the commercial structure of your -- the proposition to your customers? So that's one. The second one is on the -- perhaps the post transaction future of the TowerCo. So once you're done with this transaction, what you have envisaged for the TowerCo later on? Is it going to be something that you could potentially expand into maybe like neighboring markets? I guess, the natural extension for this part of the world is in the African market. So is this perhaps a geography that you could look at in the future? And then lastly, I just wanted -- maybe Aziz if you could expand a little bit on what you meant by the data center business being an annuity business.

Given the last question, I'll answer two of your questions at the same time. I'll pass over then for Algeria and Iraq to my colleagues. In general, if you look at our forward-looking structure, probably you're looking at around 18 months from now, you will have a group which will consist of our existing footprint of opco's, which I'd like to refer as our telecom business or core connectivity business. You'll then have TowerCo data center and a mobile financial service co. These four businesses were all only one incepted from the same part, which is our TowerCo business. Over time, each one will have a life of their own, and we'll be able to expand in markets, which might not overlap. Ideally, if we can find opportunities, going back to the M&A question, which overlaps with telco, TowerCo, data center co or TowerCo data center co, this will be ideal. But each vertical will be -- will have its life of its own, a strategy of its own and its growth, and this is one way of chasing the organic growth outside of our existing footprint independently of our telco footprint. When I'm talking about data centers more as an annuity business, if you compare it to a telco, I won't explain the telco business, that annuity are usually you're selling capacity on near term to long-term contract to this lever. And therefore, it's more of, I would say, a very high tech real estate play than a typical core operational play data center business is we have to identify land, anchor-tenants, build, and then lease and operate. Does that answer your question?

It does.

For Iraq, you guys want to take it?

So obviously, very strong performance. We have witnessed few factors for the strong performance, and one of them is the VAT removal in the country, which really helped our operation in Iraq and as well as strong effective implementation by our team there, also the exchange rate that has impacted the ARPU. So there are many factors, hence that strong performance. We see also from the question I think raised for Algeria as well. There has been a quite good proposition by our team in Algeria for their, let's say, prepaid segment, which played a very big role in higher ARPU and better, I would say, revenue as well as a better efficiency on the scheme of the commissioning. That's really helped the strong performance in Algeria as well.

And just if I may, the VAT in Iraq that you're talking about, this is the same 20% VAT that was implemented some 6, 7 years ago, correct?

Yes, it was removed December 2022. So this is the same. Yes.

Our next question comes from [indiscernible].

Just a couple of questions from my side. The first question is on the dividends. So if I remember correctly, the normalized net income, which you report, is not really the basis for calculating the dividends. You will actually subtract the FX from that to reach the actual net income for the distribution of dividends. So if you could give that number as well? I mean I can calculate that. It is about 24% higher than last year. So am I doing the calculations right for the first 9 months? So that's the first question. And the second question is on operational -- sorry, the separation of fintech business in Qatar. So just wondering what is the rationale behind it? I mean is it like part of a bigger overall fintech separation? And this is like the first operation to do that? Or is there something else going on here? And was that the big contributor to EBITDA loss in Qatar? Like in what they're making a big EBITDA loss, which has resulted in a much higher EBITDA margin for Qatar during the quarter? So if you could give some color around what impact that separation actually had in Qatar also would be helpful.

I'll take the first question, and then I'll let others to take the other questions. When it comes to the MFS and if you recall, last year Capital Markets Day, we're building and my comment before, we are really building four verticals across the group. One is the core telco business, TowerCo, data center co and MFS. If you recall, Ooredoo MFS businesses independently, they were all incented. Each telco has a small MFS business, Qatar being one of the biggest one. Last year, I think totaled about $6.4 billion of total transaction value. We believe creating a unified platform, which will serve all six countries, of course, with optimization for each country due to regulatory environment. We're able to create a very strong value proposition in terms of MFS, but also we'll be able to optimize the development as by doing a centralized development app and a centralized managed function, we get more synergies than each opco developing their independent MFS proposition. When it comes to the impact on total margin, due a couple of things, if you look at the margin of Qatar versus last quarter. Last quarter, we had a bad debt provision. I think that's the general improvement to the margin. I'll let my colleagues expand. But if you look quarter-to-quarter in the last 12 months, you also see a margin expansion. And that, in general, comes from better cost oversight, better operational efficiencies, but also a focus on higher margin products and the reduction of lower -- very low margin products, a bit reduction in wholesale, for instance. So I'll let my colleagues take...

Yes, Aziz, the EBITDA actually has remained solid at 49% versus quarter 2 of this year also has improved. And to the questions of the dividend also, I think this question was raised in calculating the dividend last quarter, and we have surely confirmed it also offline. I'm more than happy to share sort of the calculations with you. So we will take it as offline.

His calculation about 24% for the cycle.

We have a few questions in the Q&A chat. So from Subhash, Regarding your Kuwait operation, what are the other revenue sources apart from your mobile and broadband because your customer base and postpaid ARPUs both showed an increasing trend in the third quarter of '23, but overall revenues were down.

I can. Yes, this is coming from the outbound roaming, I would say, and seasonally during the summer.

Our next question is from an anonymous attendee. Can you describe the situation in Palestine? How much of your network was damaged? Any insurance there, do you see any sizable write-off risks in Q4? And why is the network connectivity cut often in Gaza?

I'll start this question first by expressing, I would say, more than our full support, our full admiration from our teams on the ground in Palestine, which are serving day in and day out to risk their life to maintain a basic kind of communication, which you can expect within these circumstances, being able to reach your closed ones, being able to pass on an alert, to be able to pass information is something extremely important and vital and our teams despite all these risks are working day in and day out in conditions we cannot even start to imagine. So I want to send, from all of us here, our sincere admiration, thanks, respect. I don't know which word to qualify to our teams in Palestine. Now with regard to our Palestinian operation, you have to remember that we have two operations as the West Bank and Gaza. Of course, the Gaza operation has been severely impacted. Cuts are beyond our control, as you may imagine, as well as when they are obstructed our teams again, once again despite all the risk, do all their possible to be able to put back a network online. When it comes to any write-off impact, we call it as asset as of today, it would need on the ground assessment of our operation in Gaza and as of today, we have incapacity of doing this. But in general, any write-offs out of Gaza would be immaterial towards the whole -- the totality of the group.

Our next question is also from anonymous. Can you quantify the size of the ISP acquisition in Iraq? How much revenue contribution to the Iraq revenue, [indiscernible] goes in quarter?

Masarat is not a part of HSL. That is a separate entity owned directly by Ooredoo. And the revenue in the first 9 months is only QAR 32 million.

Thank you, Eyas. I don't see any more questions. [indiscernible]. Please go ahead.

Yes, just a quick question on the returns on cash. So I realized that your debt is fixed at around 4%, and that's great. And I'm just wondering why is your return on cash low? Is that linked to the debt in one way or another? Are you doing a deal with the bank where you take cheap debt, but keep the cash in Qatar? Because the cash -- the return on cash is around 2% at the moment. So I'm just trying to understand why is it that much lower than yields in the market?

I'll take the first part, and then I'll ask my finance team, yes, most of our debt, I think, actually, more than 90% or close to 90% of our debt is fixed. We have taken a very early call in 2021 to refinance most of our debt because we anticipated increase of rates, and that was a very savvy call at that time. As you noted, most of our fixed debt cost is below 4%. One of the big issue on the return on invested equity is, on the flip side of that, we're actually very low -- we have a very low gearing ratio with barely 0.9x net debt to EBITDA. So that usually inhibits higher returns on the equity side. Then for the exact return on cash, I don't know if Abdulla or Eyas you want to comment...

On the return of cash, actually, we are trying to -- we are continually trying to get a very attractive rate in the market. And I will double-check on your comments and come back to you. But usually, whatever is offered at a very competitive rate in the market we are taking advantage of it.

Okay. And one last question on the dividend payout ratio. So I mean the business at this point in time is generating a lot of cash, and the CapEx requirements are relatively low. Sorry, am I asking too any questions?

No, no, I was surprised that until now we didn't get the dividend question. I was telling myself, it's finally here, before you finish, I'll tell you, our current guidance is 60% of normalized net profit. As you may appreciate, the management expresses a recommendation to the Board. And then it's a Board decision. We still haven't come towards the end of the year. We do the recommendation towards the end of the year. And at this stage, today, we cannot comment on the dividend, apart from our existing policy.

One last question from the chat. Will you revise your target capital structure? If not, can we expect better dividends, so another dividend one.

So I'll ignore the dividend question. When we look at our capital structure, apart from enhancing our portfolio, crystallizing value to the transaction and turning idle assets into yielding assets with TowerCo, data center, crystallizing value and creating new entity of business, part of that exercise is also to readdress our capital structure and to seek more efficient leverage in areas which can sustain better than average with lower FX volatility and typically a TowerCo or a data center. So as mentioned previously, they're annuity business. They're more correlated to the real estate than a typical operational business like our core telco business, which is subject to quite a bit of volatility in terms of FX, operational performance, et cetera, et cetera. So part of that restructuring, moving these vertical, and again, we'll touch on this in Capital Markets Day, is to enhance the capital efficiency of the group.

One last question coming through. What is causing constant impairment in Tunisia? And do you see any improvements going into quarter 4?

Well, we've been really proactive and transparent in terms of going forward with the planning and the book value of Ooredoo Tunisia. Constantly, we are doing that impairment. If we see the number is going up or down in terms of the planning, being proactive on it.

Thank you very much. I don't see any more questions. So thank you to our panel and thank you to everyone for attending. I'd like to say that we're going to meet again online for our Capital Markets Day in the 6th of December. And if you have any further comments, feedback or questions, feel free to reach out to the Investor Relations team at any time. This video recording and transcript will be available on our website later today.