Southern Cross Media Group Limited (SXL) Earnings Call Transcript & Summary

Good day, and thank you for standing by. Welcome to the Southern Cross Austereo's First Half Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, John Kelly. Please go ahead.

Good morning, and welcome to Southern Cross Austereo's results presentation for the 6 months ended 31 December 2023. I'm John Kelly. I'm joined today by our Chief Financial Officer, Tim Young. We will hear from Tim shortly for a detailed overview of our financial performance. At the end of our presentation, Tim and I, as always, will be happy to answer your questions. I'll first give you an overview of our results and achievements for the half year. In doing so, I draw your attention to the usual disclaimer at the end of the presentation. As you all know, on 18 October last year, we received an unsolicited nonbinding indicative proposal from ARN Media and Anchorage Capital Partners to acquire 100% of SCA via a scheme of arrangement. This followed ARN's acquisition of an interest of 14.8% of our shares last June. Under the terms of the proposal, SCA shareholders will receive 0.753 shares in a restructured ARN and $0.296 in cash. Since receiving the proposal, together with our advisers, we have engaged constructively and collaboratively with the consortium and its advisers to assess whether the proposal is in the interest of SCA shareholders. As outlined on Slide 3, implementation of the proposal would require separation of highly integrated radio and other assets of both SCA and ARN and reallocation of those assets to members of the consortium and to a new digital joint venture. This process would involve significant structural challenges, additional costs and operational, financial and tax complexities. Our assessment of the proposal has focused on 2 key matters. Would the proposal provide value for SCA shareholders? Would our shareholders be better off holding shares in a restructured ARN Newco? And secondly, how efficiently and effectively could the proposal be implemented to enable our shareholders to realize any such value? We have not yet received sufficient information to reach a conclusion on either of these matters, and there is no certainty that a transaction will eventuate. Our discussions with the consortium are ongoing, and we will, of course, continue to update shareholders as required by our continuous disclosure obligations. Slide 4 sets out the key highlights of today's results. You'll see our first half revenue was $252.6 million. EBITDA, excluding significant and nonrecurring items, was $31.1 million. CapEx was $11.7 million, and the Board declared a fully franked interim dividend of $0.01. However, I would like to draw your attention to the significant improvements we have made in operational performance during the first half and the resulting positive momentum into the second half. We have been working very hard on improving the efficiency of our operating model since I took over as CEO on 1 July. We committed at that time to deliver annualized cost savings up to $15 million in FY '24. In anticipation of the ongoing challenging economic headwinds, we have actioned a further series of cost-out initiatives that will now deliver $30 million in annualized cost savings. We will realize the full benefit of these savings next financial year. Pleasingly, we'll see the benefit of $20 million of these savings in the current financial year, mostly in the second half. It is important to reiterate that these are not planned cost savings but identified and in the main, implemented sustainable cost savings that will improve our ongoing earnings and operating cash flows. Secondly, I want to highlight that our LiSTNR digital audio ecosystem remains on target to reach a breakeven EBITDA run rate in the fourth quarter of this financial year and to contribute positively to EBITDA in the next financial year. We've significantly reduced ongoing CapEx requirements. LiSTNR is also expected to become cash flow positive in 2025. If we adjust our first half year results to recognize the above cost savings and remove the first half digital loss of $8.6 million, SCA would have delivered pro forma EBITDA of $49.9 million in the first half. Slide 5 shows the 3 strategic pillars that will now drive improved financial performance and shareholder value. Advertising revenue markets continue to be challenging, and we expect that will continue in the second half of this financial year. However, SCA has built large and growing monetizable audiences for our core audio products, both broadcast radio and digital audio. Our Proudly National, Fiercely Local strategy provides valuable geographic diversity, mitigating the impact of lower industry-wide national advertising expenditure. Driven by resilient performance from local advertisers, our regional radio revenues grew by 2%. Our growth engine continues to be digital audio revenue, which grew by 27% for the half. Our digital audio revenues for the last 12 months were $28 million. And with pacing up 50% year-on-year for Q3, we are confident that this revenue stream will become a material segment of our earnings in the year ahead. At the same time, as I've already mentioned, we have taken $30 million out of our cost base and have completed the targeted CapEx cycle to digitize our business. And having now rolled out major improvements to the ad tech capability and user experience on LiSTNR early this month, we expect CapEx to be $15 million for the full year. This is 22% lower than the 2023 financial year, and we expect further reduction to around $12 million in FY '25 and beyond. After just 3 years since launch, LiSTNR is on track to reach 2 million signed up users by 30 June, and we expect the improved user experience to keep more of our users on the platform for longer, providing richer data to target advertising at a level equivalent to global digital advertisers. This positions us well to capitalize on the growing interest of listeners and the growing investment advertisers in digital audio. Slide 6 provides a few data points to confirm SCA's leadership for Australian broadcast radio and digital audio audiences. Importantly, our national leadership in the core buying demographics of women, men and all people aged 25 to 54 provides our sales teams with a compelling platform for growth in the second half and beyond. Turning to Slide 7. You'll see that our regional radio business is weighted to local advertisers. In the first half, local advertising revenue grew by 8.9%, as local advertisers increased their average spend on our radio stations. This growth more than offset the decline in national advertising on regional radio. Turning to Slide 8, and as I touched on earlier, I'm pleased to show you the earnings impact of the acceleration of our $30 million cost out program. Excluding implementation costs, we realized $4.6 million of savings in the first half and expect to realize a further $14.9 million in the second half of this financial year. The remaining $9 million of permanent cost savings will be realized in FY '25 and embedded for future years. Slide 9 sets out our pro forma EBITDA of $49.9 million for the first half. This represents an improvement of $18.8 million or 60% compared to our EBITDA of $31.1 million. This assumes that LiSTNR has reached breakeven and that this year's permanent cost savings had been fully realized in the first half. Moving to Slide 10. This slide shows how meaningful our audiences are, both on broadcast radio and digital audio. Almost 3/4 of Australians aged 12+ listen to online audio every week, up from 2/3 in 2021. This number is on course in coming years to match and overtake the 79% of people who listen to radio every week. You can see from the data that broadcast radio listening remains strong and that many people listen to both broadcast radio and digital audio. Slide 11 provides a snapshot of the opportunities in digital audio, along with the challenge to educate advertisers about the benefits of allocating a higher proportion of the investment to digital audio. Audio is already a large market and is forecast by PwC to grow to over $1.2 billion by 2026. However, despite digital media audiences spending 37% of their time with audio, advertisers are currently allocating just 6% of their investment to audio. The investment made by SCA in building LiSTNR's data and ad tech capabilities will be one of the keys to opening the door to accelerate advertising interest and investment. Increasingly, we will be able to connect advertisers to addressable audiences at scale. Moving to Slide 12. SCA maintained and expanded monetizable audiences to record levels during the period. 9 million Australians tune into our Hit and Triple M radio stations each and every week around Australia, while more than 8 million Australians listen each month to our live radio and music streams or on our LiSTNR podcast audience network. The chart on Slide 13 shows the consistent impressive growth trajectory of SCA's digital audio revenue since launch of LiSTNR only 3 years ago in February 2019. We split digital audio revenue between podcasts and InStream, which refers to our linear radio shows and music streams. Both enjoyed robust growth, but InStream advertising was a standout. Supported by growth of 17% in stream starts and 7% in time spent listening, InStream revenue showed year-on-year growth of more than 50%. Our newly completed ad tech investment is now reaping dividends, empowering our sales teams to generate improved returns from programmatic advertising as we are better able to target advertising to relevant audiences on LiSTNR and other platforms. Slide 14 is an important slide. Over the last 4 years, we have committed to an extensive CapEx program to digitize the business. This program has included building the flexibility and resilience of our networks, enabling us to broadcast our radio content from any of our locations to any of our other locations and to distribute our Triple M and Hit network shows to our regional stations and partners. Our CapEx program has also included launch and continuous improvement of the user experience and advertiser benefits on LiSTNR. This major CapEx cycle is now complete with the result that CapEx for the full year is forecast to be $15 million or 22% lower than in the 2023 financial year, with a further 20% reduction in FY '25 to $12 million. Lower CapEx in future years will yield ongoing cash flow benefits as we reap the benefits of the investments made to date. Slide 15 outlines some of the key enhancements that went live on LiSTNR early this month. These enhancements are laser focused on our 2 key stakeholder groups. For our users, we want to simplify and personalize their experience, encouraging them to sign up, return more often and to spend more time on LiSTNR. This helps us to learn more about them and to further their experience on LiSTNR. For our advertisers, we want to drive their return on investment. Knowing more about our users' interest and preferences and integrating LiSTNR with our customer data platform and data analytics allows us to deliver highly effective targeted advertising campaigns. Advertisers will pay a premium for the improved ROI delivered by these campaigns. Slide 16 sets out how our ad tech customer data platform and data analytics allows us to deliver highly effective targeted campaigns for advertisers. The slide also illustrates that LiSTNR is the only local platform that has the same sophistication and capability as the global players. Slide 17 shows how LiSTNR has matured and is now heading towards an EBITDA breakeven run rate in the fourth quarter of this financial year and is set to contribute positively and sustainably to EBITDA in future periods with a cash flow positive expectation in FY '25. I'll now hand over to Tim Young to take you through our financial results for the first half.

Thank you, John, and good morning, everyone. The next few slides set out our results for the half, excluding significant and other nonrecurring items. We provided a reconciliation of the reported results in an appendix to today's presentation. If you have any questions about those items, I'll be pleased to deal with those at the end. Let's now move to Slide 19. Group revenues declined by 2.9% on the prior period. Growth of 27% in digital audio partially mitigated falls of 2.2% in broadcast radio and 11.1% in TV. Despite inflationary pressures, strong cost disciplines limited the increase in total expenses to 2.5% and in non-revenue-related costs to 4.5%. EBITDA of $31.1 million and net profit after tax of $4.4 million were both down on the corresponding period last year. But as John noted, those results don't reflect the benefit of the cost savings and the digital audio performance that have kicked in during the second half of this financial year. Looking at our segment results, let's first turn to Radio on Slide 20. Radio revenues declined by 2.2%. The primary driver of this decline was an industry-wide downturn in broadcast advertising revenues, particularly exacerbated by a reduction in government spend. The impact on SCA was reduced by the resilience of regional radio and local advertisers in particular. Regional radio revenues actually expanded by 2%. Total cost growth was contained to 3.5%, resulting in EBITDA of $42.8 million and a margin of 23.3% for the broadcast radio unit. Moving now to digital on Slide 21. LiSTNR continued its strong momentum in all revenue lines. Digital revenue of $15.6 million was up 27% on the prior corresponding period. Total expense growth of 6.1% was due mostly to costs related to higher revenues. The EBITDA loss narrowed by 18.4% to $8.6 million. As John has already mentioned, we expect LiSTNR to reach a breakeven run rate during the final quarter of this financial year and then begin to repay the targeted investments we've made in recent years. The results of our television business are outlined on Slide 22. Regional television revenues continued to contract, driven especially by weakness in the national advertising market. Our TV sales teams performed well in these difficult conditions. The growing collaboration between SCA's and Ten's national sales teams has seen our power ratio return to above 100% in the 4 East Coast aggregated markets. At the same time, tight cost controls led to total costs being reduced by 4.8% and non-revenue-related costs increasing by just 2.6%. Our TV EBITDA margin fell to 18.5% during the first half, but we expect this margin to recover in future periods under our renewed affiliation arrangements with Network Ten. We'll now move to SCA's cash flow on Slide 23. Operating cash conversion was stable at 70.4%, and free cash conversion was also steady at 76.4%. This is despite net cash from operations declining by $9.9 million to $20.5 million. Net CapEx was $1.7 million higher due principally to elevated investments in the LiSTNR upgrades released earlier this month. As we've touched on, CapEx will reduce in the second half and in coming years. Net debt of $106.6 million was broadly in line with the same time last year, although net financing costs increased by $2 million in a higher interest rate environment. Our leverage ratio of 1.87x on 31st of December was well within debt covenants and is forecast to be substantially lower at year-end. SCA will pay an interim dividend of $0.01 per share fully franked. The payment date is the 12th of April. This lower interim dividend reflects the ongoing difficult trading conditions and excludes the benefit of the majority of the permanent cost savings that will be reflected in the second half. I'll now hand back to John, and look forward to your questions after he's wrapped up our presentation.

Thanks, Tim. Slide 25 sets out our expectations for the remainder of this financial year. Advertising markets remain challenging. Despite this, our broadcast radio revenues are tracking ahead of the radio market, and we are dedicated to translating this growth in our audiences to a larger revenue share and improve returns to shareholders. We are now reaping the benefits of our investment in the LiSTNR ecosystem with our digital audio revenues for Q3 pacing up 50% year-on-year. Coupled with the implementation of our cost-out program, this revenue trajectory will see LiSTNR reach EBITDA breakeven in the June quarter this year. With reduced CapEx requirements, LiSTNR is now forecast to become cash flow positive during 2025. Our $30 million cost-out program, which represents about 10% of our non-revenue-related costs, will benefit our second half results by $15 million with a further $9 million benefit to FY '25 and beyond. Furthermore, we have now activated an optimization program with targeted initiatives to deliver additional revenue and further cost-out opportunities. We expect non-revenue-related costs for the full year to be less than $310 million. Despite inflationary pressures, this is a forecast increase of only 2.5% on FY '23. Our major CapEx program is complete, and we expect full year CapEx to be $15 million and for CapEx to reduce further to $12 million from the FY '25 onwards. In summary, the team at SCA is focused on accelerating shareholder value through harvesting the benefits of our digitized audio strategy and by delivering operational efficiency through meaningful and permanent cost reductions. That concludes our presentation. As Tim mentioned earlier, the presentation includes an appendix with additional details for you to consider. Tim and I will be happy to now take any questions you have. I'll hand back to our operator to facilitate the Q&A. Thank you.

[Operator Instructions] Our first question comes from the line of Brian Han with Morningstar.

The $30 million cost out that you've identified, how much of it do you think is within your control? Or is there a risk that external events could prevent much of these savings from being realized?

Thanks, Brian. Yes. Look, relating to the $30 million, I think probably unlike some of our peers in the media sector, 90% of that has been actioned and delivered already within the current financial year. So there's only about 10% or $10 million to go in terms of actioning. So no, there will be no events that occur that prevent that from happening. I think we've made that quite clear in the results. And as you know, we're saying 4.8 has been factored into the first half. Another $15 million will be factored in the second half, and the remaining $9 million to $10 million will benefit FY '25 and beyond. But no, fair to say, actioned, happening, done and good to go.

Okay. Great. And John, just out of interest, what are you seeing the seasonal earnings split is now for radio and TV in a normal year between first half and second?

I think it's very difficult to talk normal years with the current sort of ups and downs we're seeing and the challenging market conditions. I could have given you a very clear answer a couple of years ago, but I think I'd rather take that off-line with you, have a chat to you about that in terms of what it's been this year and what we expect. But as you would appreciate, the market, as our peers have said, is incredibly short at the moment, sort of 4 to 6 weeks in visibility. So I'd rather not supply that commentary because I'll be guiding as to what we expect the second half to be and [ I doubt that we know ] the situation at this point in time.

Oh, no, no, I wasn't expecting you to guide us. I was just wondering what the traditional earnings split is, but that's okay. My third question is can you talk a little more about the 4.5% increase in non-revenue-related costs in the first half. I mean you took out $4.6 million of costs in that half, correct?

Yes, that's correct. Yes. Look, I think...

And yet it still increased 4.5%. Is that right?

Yes. I mean, clearly, with the wage, 7.2% increase, that impacted all our weight in salary bills. And just generally, cost inflationary factors have impacted that cost base. And the super increase also was factored into that uplift. As we've made the point, the vast majority of the cost out will benefit $15 million in the second half, and we've guided to overall non-revenue-related costs being $310 million, which is a circa 2%, 2.5% increase year-on-year. So you will see a significant acceleration in the benefits being factored in the second half.

Our next question comes from the line of Darren Leung with Macquarie.

Congratulations on the good results. I just had 3 as well, please. Just the first one, you've obviously called out good trading in digital radio. Any color you can provide on how linear has traded in the third quarter, please?

Linear in terms of broadcast radio, you referring to?

Yes.

Yes. Look, I think we're seeing modest declines in the market. We're seeing share growing. I think we're hopeful that, that modest decline will improve in the remaining months. But early days in the second half but very modest declines, so early single digits.

That's clear. And just on the pace of the cost out, you've mentioned FY '25 for the remaining $10 million. Can you give us a feel as to whether that's early in 2025? Or is it more backdated? And if it's not that, then maybe there's some context as to what those actual costs that you're taking out are, please.

Yes. Look, it's just -- it's -- obviously, all the costs are being -- will be taken out by 30 June. So it's just the annualization effectively of those costs into the next year because obviously they haven't all been factored in. Only 4.8 was stacked into the first half, and the remaining, just the timing issues in relation to those, are being realized, we'll say, $9 million to $10 million in FY '25. I just want to make it very clear, though, that the action that implemented $30 million cost out, we did highlight in our release and particularly in relation to -- in our final slide that we also have an optimization [ schema ], which identified other opportunities, both the revenue and cost out, so we expect further cost out to evolve in '25 and beyond. And that's not factored into the $30 million we identified today, which, as I say, will be fully actioned and implemented by 30 June, 90% of which has already been actioned, hence, why we got the pacing that we have in relation to the cost release.

Understand. And then the final one was just on the weightings, and you obviously called out some market share gains in the first half for radio. And I know 2 or 3 surveys don't make a trend. But were there any specifics in the market that resulted in a bit of market share benefit for you? Or was there a structural shift that sort of sees you at this elevated level going forward?

Look, we had a really good 2023 for our metro radio markets. We've ended up with 3 out of the top -- 3 #1s out of 5 markets, which is the first time we've had that for 10 years. We had 11% growth in share across the 2023 period in terms of 10 plus. I think the reality is, at this point in time, we're not getting our relevant share of years in relation to revenue, and we're fully aware of that. Seb Rennie and his -- and the sales team are fully focused on trying to better monetize the audiences we have. We talk about monetizable audience growing. We need to monetize that more effectively, and that's both a challenge but most importantly, an opportunity for SCA in '24 and beyond. So we're quite excited about what that can deliver us in terms of share gains moving forward.

Our next question comes from the line of [ Roger Colman ].

I just want to narrow down the '24 outlook. The broadcast revenues, is that your broadcast revenues are tracking ahead of the market? Or could you just provide some timing on that?

We're basically saying we're gaining modest share. I think I've just called out that we're experiencing the market being down early single digits in terms of broadcast radio, albeit we're growing 50% plus in relation to digital audio so [indiscernible] we're ahead of the game. Yes.

Yes. Okay. Just getting back to the problems of the radio market, obviously, we can't chase cost minus all the way down to 0 profitability. The industry at $690 million has gotten, on my figures, your figures, higher reach than SCA TV. And what's the problem in terms of selling to the advertisers? The reach advantages of radio belongs up there and a much higher figure than us getting at the moment. And I'll draw your attention to the fact that New Zealand, they had The Radio Bureau, which was a central advertising tool, which made it easy for them to get 11% share of media revenues in the old days. So could you just come back on what efforts are being made to try and make it easier to get a relevant return to that, bring it back up to $870 million like it used to be?

[ Roger ], I think you make a very good point. And I think Kieran, his results are in. Our results, we've highlighted that we're not getting a relevant share of audience in terms of -- and you're making the point. In terms of our reach, we don't have a consumption problem unlike other media. In fact, our reach and our TSL, time spent listening is increasing year-on-year in broadcast radio. But broadcast radio is incredibly small. So we're with you, and I think CRA is working as a body to try and emphasize that the importance of advertisers and our business partners increasing radio as part of their advertising spend and being effectively a wonderful counterpart and partner to -- in other advertising [ parts ] no matter what the media. I've got to say it's an incredibly [indiscernible] industry on CRA, and I think we all believe in the power of audio. And audio is on the rise, and we expect...

But in New Zealand -- sorry, John. In New Zealand, you can book through The Radio Bureau. You can't book through CRA.

No, you can't. That's correct.

That's -- to me, that just seems to be a simple step to provide a single window.

We'll take that on notice and certainly raise that with the Board and the rest of the CRA Board. But all I can say is we're fully conversant that, yes, we should be getting a much larger share of the revenue buyers in the industry, and we've been working hard to increase our CPMs and increase appetite with [ buyers ] as partner for agencies.

Right. I've got a second question relating to, last night, Newshub shutdown in New Zealand. That's the only private sector 1, 300 staff. The possibility is that Ten Network vacates linear TV in Australia. I'm just wondering, in your closedown situation, have you scaled, how many employees you got there and what's the scale, significant cost if you had to shut it down?

We have approximately 1,550 employees. Obviously, we invest -- we have a motto and a mantra, which is Proudly National, Fiercely Local. And I think you've heard about -- me talk about before that we believe the power of audio is to be...

No, I'm just talking about your TV arm. I'm just talking about your TV arm. If you had to shut that down, how many employees you got there and...

Okay. I'll make 2 observations. One, I don't subscribe to the view that Ten and Paramount are about to close down their Ten operation. In fact, I [indiscernible] last week and they remain confident in their operations. So I just want to put that on the record. In relation to our TV arm, we have probably about 200, 220 people in our TV business, majority of which are sales and marketing people and technology people. So look, it's making money for us. That's the level. It's making money for us. We're trying to improve our results with both Ten and Seven, our key primary partners there. And it remains profitable.

Right. Okay. And the last quick one, final. In your negotiations with ARN, obviously, the idea is good. We do 52%, 55% share of DAB and 5 [ PC 2 pairs ] FMs compared with theirs. We've got a good stack of cards, but obviously, if you join, you might end up with 50% of the revenues in the market and the power factor in radio. Another question is just asking the other team to give you like a better deal on the 0.753.

[ Roger ], that's your comments. I guess you're making an observation. Clearly, I can't go into the specifics of the deal. What I would say is they have reaffirmed the deal and reaffirmed the offer, which clearly means [ it's bent on ] increasing the offer. And I think what we've hopefully demonstrated today is that really since that offer was made on the end of October, we think we've created substantial value in our business, both of the cost out and the acceleration in relation to our digital strategy, reduction of CapEx, LiSTNR breaking even in a quicker time period in terms of Q4. So we think the value of SCA has gone up significantly since the end into October. That's my observation. I'm focused on our business, and we're focused on our business, improving our results for all our shareholders, all right? So that's our focus, and we'll continue to deal and we -- it's a collaborative and open discussion with the consortium and the advisers, and we'll continue to do that in order to assess that offer and to see whether it's value for our shareholders or not or whether we're better staying with an SCA-only offering. So that's what we'll look into at the moment.

[Operator Instructions] We have a follow-up question from the line of Brian with Morningstar.

Can I please ask the revenue-related cost line, that's sales commissions and what else?

Depends which line you're -- it depends on which segment you're talking about there, Brian, because we've talked about TV...

I'm just looking at your slide at the group level.

Well, it will include a number of things. It will include sales commissions. It will include TV affiliation fees. In the digital space, it will include partner revenue share fees with people like Wondery, et cetera, through our LiSTNR brand. So it is a myriad of different revenue-related costs that are associated with a direct consequence of revenue going up or down. But it -- in summary, it would be those 3 things, not just sales commissions but also to say, affiliation fees and revenue share fees, particularly in the digital space.

We have a follow-up from the line of [ Roger ].

John, I'm just wondering on the negotiations with the opposition. How do you price the value with Kyle & Jackie O and Christian O'Connell in evaluation of their company? It's -- well, they eliminated that by having revenue related -- not ratings, revenue related income for these guys to make it easier for you.

Look, clearly, we value our own business, and we've got a very firm hand on what we think the value of SCA is. The value of ARN Newco, which we're getting 0.753 per share in theory, obviously, the whole myriad of cash flows and earnings, it'll involve Kyle & Jackie O. It will involve Christian O'Connell. It will involve all the talent across KIIS. And also, it will involve all the Triple M network, which we clearly own currently. So it's a mixing pot of all that coming together. And obviously, we're looking at it at a holistic level, but we're also looking at it candidly in relation to understanding the deltas of Kyle & Jackie O going to Melbourne and Christian O'Connell, et cetera, et cetera. So all those factors come into play. You're right.

Yes. Yes. I mean, we floated Austereo with [indiscernible] the analyst there. But I might just make the observation that Kyle Sandilands will be 62 in 2034. And all the previous winners, [ Murray, Hammer ] and Denton, retired before they're 42. I guess another red flag but he'll be so far removed from the median age of the Australian radio listeners. You wouldn't want to pay for that 10-year run.

Thank you for your observation. [ Roger ], I've got nothing more to say about that. That's obviously your observation.

Yes. Yes. Okay. It's got to be difficult for you guys. I sympathize and all the best for the future.

Thanks, [ Roger ].

I'm showing no further questions in the queue. I would now like to turn the call back over to John Kelly for closing remarks.

Thank you very much for attending today's call. Hopefully, that's assisted in understanding our results and more importantly, the value accretion we expect to come to our shareholders in the years ahead. I look forward to speaking to many of you during the day. Thank you. Bye-bye.

Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.