True Corporation Public Company Limited (TRUE) Earnings Call Transcript & Summary

Good afternoon, and welcome to the True Analyst Conference for the First Quarter Result of 2021. I am Yupa Leewongcharoen, Group CFO. And with me today are our 3 Co-Presidents Khun Natwut Amornvivat, Dr. Teeradet Dumrongbhalasitr and Khun Manat Manavutiveth. Now let's start with the highlights. True Group posts consecutive EBITDA and margin growth as card optimization program continue to gain traction, while maintaining the top line. TrueMove has posted acquisition remains solid, outgrowing the industry with 450,000 net adds, which is 48% of the market, while 5G is on a consistent plan connecting to over 700,000 users. TrueOnline, again, took the lead in both revenue and subscription acquisition providing our new normal momentum we saw with broadband revenue delivering highest year-on-year growth in Q4 2018. TrueVision was still affected by the COVID-19 outbreak, but aim to resume growth with the introduction of TrueVisions NOW content streaming service that can be viewed 24/7 through multiplatform, including TrueID application and website as well as TrueID Box, TrueID TV. True Digital Group continue to expand user base and partnership with various vertical industries, capturing higher growth as consumer and business rapidly move towards digital and solution base this day. True Group's continued effort on enhancing end-to-end customer experience and response to their needs with its comprehensive ecosystem and platform of high-quality product and services as well as stronger collaboration with strategic and business partner will be key to accelerate our growth further. Now moving on to financial performance. Consolidated service revenue increased 1% year-on-year to THB 26.9 billion and flat Q-on-Q, including revenue from noncore content business in Q4. As core mobile and broadband revenue grew 2% and 1%, respectively, offsetting TrueVision revenue decline of 6%. Expense above EBITDA continue declining trend despite network and service expansion, resulting from our effort on improving cost structure in all categories from operating costs, content, sales and campaign-related spending, streamlining per sale and so on. This drove EBITDA up 15% year-on-year to THB 14.1 billion with margin on service revenue, increasing to 52.3%, while the 5G spectrum cost and a swing of foreign exchange grade pressure our bottom line performance in Q1. We are working more aggressively to enhance productivity and monetize our investment levi to the new cost structure and be more lean with utilization of the digitization and deepening analytic to drive growth and significantly improve our EBITDA margin and profitability further. Next, our President will touch on performance of our key business starting off with Dr. Teeradet for the mobile business performance.

Thank you, Yupa. For the mobile segment, TrueMove H core mobile revenue was relatively flat on the first quarter, roughly about 1% increase from quarter 4. Our postpaid base has been consistently strong, outgrowing the industry with 450,000 subscribers, about 48.3% of the market adds into the first quarter. This increased postpaid revenue and its contribution to 66% of the TrueMove H core mobile revenue compared to the approximately 56% of the industry. Prepaid base was affected by the COVID-19 impact with the price-sensitive segment, beIN cautious on their spending. Although the industry saw strong net adds, industry's prepaid revenue still declined. As we became more selective and focused on campaign that brought quality subscriber growth, our prepaid acquisition was limited during the quarter, but this pave the way for gaining recurring revenue with the growth potentials on upselling and cross-selling later. We expect higher contribution from this effort in the coming quarter. Now we are considering our tests. Let's take a look at the 5G leadership. We continue to improve our customer experience and network quality, utilizing advanced technologies, proving with various award winnings and also recognition from third-party surveys. The latest 1 is the mobile network experience reported this month from Open Signal showing TrueMove H as the clear winner in the -- in terms of download and also uploading speeds as well as video experiences. While survey from type 1 lab and also Marketbuzz on consumer perception, it has indicated that TrueMove H as the continued 5G leader. As for the 5G user base, we have seen continued progressions on its adoption. And on the 5G TrueMove H network already reached over 700,000. Please go to the next page. We have gained fair share on the 5G early adopter segment and we can see more than upcoming 5G handset model at affordable price in the market. This, together with increasing popularity of IoT devices, as you can see, there are various of the IoT device coming into the market. This should also help us to penetrate into untapped segment faster, reaching more coverage into the mass consumer segment and put our revenue growth further. I think in the next section, Khun Manat will also highlight the performance of the 5G and also partnership, including ecosystem.

Okay. Thank you. Our solid 5G acquisition, as Dr. Teeradet mentioned earlier, was driven by our network strength and ongoing determination to improve its quality. In addition to our 5G footprint in key areas of 37 provinces, particularly high potential area like BMA, EEC with 98% and 95% population coverage, respectively. We have strengthened our 5G offerings for the enterprise market that better respond to their needs, such as providing high speed, lower latency and superior quality services. We have the 5G FWA technology, while extending partnership with various industry verticals to revolutionize 5G use case, including the health care segment, which we were selected by Siriraj Hospital to provide MEC cloud platform, offering fast, secured data, access and better response time. The platform also supports various applications such as telehealth as well as IoT and AI usages. At the same time, we work cohesively with leading and tech partners in developing a variety of 5G use cases to drive 5G community ecosystem and uses in the country. With this ambition, True 5G Worldtech X, an innovation hub was created and will be the major start of 5G community creation while providing 5G technology sandbox facility to nurture new generation of innovators and tech entrepreneurs. Okay. Next page, please. For the broadband Internet segment. TrueOnline maintained its leading position in the market and continued to record industry highest growth, both in terms of incremental revenue and net adds, while stabilizing ARPU despite industry's decline. It's broadband Internet revenue grow by roughly THB 700 million or 10% year-over-year to THB 7.2 billion in the first quarter of this year, with solid net adds of 1,000 -- sorry, 100,000, driving total subscriber base to 4.3 million. The broadband Internet market in Thailand has gone well, especially after COVID-19 situation with household penetration increasing to 53%. We're seeing more demand for broadband connectivity as people are moving back to work from home, live from home again and again and expecting the penetration to reach over 60% by the next year on the new normal lifestyle. TrueOnline superior fiber services combined with True Group fulfillment platform. We are positioned to capture significant growth from this positive and digitalization trend. Okay. Thank you. Let me hand over to Khun Natwut for the digital part.

Thank you, Khun Manat. So I would like to discuss on the digital business. Let me start specifically with the digital media businesses. So one of the main products of ours is TrueID. TrueID has continued to enhance user experiences and added more value-driven digital and exclusive contents as well as engaging benefits to its users. The content sales transactions on the platform grew by 52% year-on-year and 9% Q-on-Q to around 435,000 transactions, while reaching the average of 240 million video views per month in Q1. TrueID platform provides a variety of content categories, the top 2 are animation and drama, accounting for 63% of all content categories. We are monitoring content viewership on a daily basis and equip our portfolio with those that are relevant and respond to preference of our groups of customers. Next page, please. TrueID introduced a new section, we call it TrueID community, which will function as the user engagement platform where TrueID users can post, share, comment and engage with each other to help boost engagement and app stickiness. The commodity topics range from food, travel, entertainment, gaming to fandoms. TrueID TV also introduced a new gaming partner and stream to leverage and utilize the existing OTT platform. Let me remind you, TrueID TV is TrueID TV Box that we enter home, which is around 2.36 million boxes at the moment. With end stream, right, we're able to leverage and utilize existing OTT platform to capture growth in the gaming market, offering over 1,000 retro games and famous game franchise to its users. TrueID TV Box has gained scale, as I mentioned, up to 2.36 million boxes at customers' premises at the moment, which is almost 3x higher than Q1 last year. We see significant growth potential for the digital media and advertising market as its market size is expected to grow by 10% annually, and as opposed to a 17% decline in traditional media spending, excluding Internet in Thailand, with value of roughly THB 90 billion last year. Let me touch on enterprise segment as well. One example is our launch with Class cafe. Class cafe is our recent partner that offer True 5G AI smart cooler. The AI integrated system that allows contactless and cashless purchasing for cafes and shops. The smart AI also allows potential capabilities for data analytics, which can help entrepreneurs plan their marketing and retail strategy as well as improve customer experience. At the same time, True Digital Group expanded growth into health care segment. With an introduction of TrueHealth. A consumer-focused telemedicine platform and application. We have it in 2 forms. One is the online application called TrueHealth, another one is the physical booth where we install in retail space, right? This setup for private boot pilot at Lotus’s Ramindra and True shop at CentralWorld to support the hospitals capacity overloads during the pandemic, and we have plan to expand that further into other locations as well. True Digital Solutions continue to grow and connected over 406,000 IoT endpoints and devices by the end of the first quarter. The IoT market size in Thailand is expected to reach over THB 20 billion in the next 5 years, and we hope to take a significant share of this upward progression. This concludes today's presentation, and we will now open to the floor for questions. Thank you.

The first question is on fixed broadband. Your FDD ARPU was quite stable over the past 3 to 4 quarters, does it indicate better competitive situation in fixed broadband space. Was it your successful strategy to deal with low NII and FUB segment? May I ask Khun Manat to address this question.

Okay. Thank you for the question. Competition in the broadband market is relatively stable. Our broadband Internet performed well, both acquisition and stabilized ARPU, driving continued solid revenue growth. This was driven by our superior offering and continue to focus on enhancing customer internet experience with our Gigatex Fiber and improve service quality, which helped increase our customer stickiness. For our high-end segment, we have done well in terms of upselling our Mesh WiFi, which increased ARPU by THB 100 per point of their Mesh WiFi as well as improving experience for both new and existing consumer through speed upgrade, Gigatex Fiber bundle with TV and other such as the True Card, Black Card, TrueSphere across our True Group. For the low end market, it was still attracted by the price. Added benefit there, you'll be -- we'll get that -- the price point is in line with the industry. The acquisition price plan for the low impact is THB 399. And we have pushed acquisition for both stand-alone and with value benefit were SIM and other content bundle. Given rising demand for the broadband connectivity, new normal and another wave of COVID-19 causing people to move back to work from home, live from home, I believe that the overall market value should continue to increase with this situation and continue to lead the market.

The second question is on TrueMove H. What were reason your IR revenue lower year-on-year and Q-on-Q to THB 991 million. What about the trend going forward? Can Dr. Teeradet answer this question?

Sure. I'll take this one. The IR revenue decline clearly was driven by COVID 19 impact, and we believe that it has already bottomed out the impact. On the future trend, I would address that it really depends on the vaccines and new wave situation. So that's the answer to this question.

Next question, please. What reason your regulatory fee lower year-on-year and Q-on-Q to THB 541 million? What about the trend going forward? I would say that the decline in regulatory cost in Q1 was driven by the cleaning of the over accrue regulatory fee in prior years. Actually, the regulatory cost is vary according to the revenue. And we believe that a 50 prepaid of regulatory card is quite stable at around 3% of revenue that we are subject to pay regulatory costs, that is the trend. So in short, it's according to the revenue growth rate and the percentage of regulatory cost is around 3% of revenue. And I would also highlight that because of our regulatory cost here in Thailand, we believe that our regulatory cost is still high as compared to other country where the government really support telecom infrastructure operator, which is the basic infrastructure to drive growth of the country. And we believe that the regulatory body will consider this regulatory cost redeem in Thailand, and we are looking forward to hearing a good deal from regulatory body about the regulatory cost. So let's move on to the next question. Next one is on the car service excluding IC and depreciation and amortization came down year-on-year and Q-on-Q to TWD 10 billion. What were reason and what about the trend going forward? I would say that actually, the current providing service is quite varying according to revenue and also related events, for example, cause you letting to events is supposed to vary according to the event revenue. So what drive the decline in car finding service is from one time event revenue as we compare year-on-year. But the ongoing cost observing, we are pretty much in control, and it will vary according to the growth rate of revenue. However, the DNA, as you may aware that our DNA right now, this quarter -- this is primarily because of we had -- but when we call you've seen the objective, the useful -- the objective of utilization of certain assets, certain network asset, which normally the same asset category depreciation should be the same. But in the past, what we have done is that certain asset, which is actually the same category, but some of them, we depreciate or amortize it over the useful life -- economic useful life of those assets instead of the useful life of the asset itself. And in this year, upon the introduction of the wireless broadband, we'd be able to amortize the same asset category with the same useful life that is a certain impact in the first quarter as well. And this has fully disclosed in our financial statement, in an auto financial statements. So if you would like to see the real impact or quantify the impact, you may look at our note to financial statement for the DNA. So next question. With new 700 megahertz, 26 gigahertz and 4G, 5G asset amortization. What about the reason your DNA expand lower Q-on-Q to THB 10.8 billion, what about the trend going forward? So this, I believe that I already addressed, including in my answer to the previous questions that we share the useful life of certain multimedia asset to be in line with the same asset in our network instead of amortized according to the economy useful life, but we amortize according to the useful life of that asset. Next one is assuming no appreciation of RoU, how much correlated to TFRS 16 will come down this year? Will it be the same every year going forward? So my understanding from this question is that you would like to know the impact of TFRS and what would be the impact going forward when it will be -- have less impact. Because normally, TFRS will be -- the impact of TFRS would be fund in low-teen because of the interest part, would be more happy in the beginning of the contract. So for us because of the TFRS impact is not much significant, but it will definitely decline over year. And we believe that during the next couple of years, the impact will be neutralized. And then later on, it will decline, if we compare before TFRS and after TFRS. Next question is that, is it fair to say that True has been squeezing cost so much, which will affect your ability to achieve your revenue growth target of 3 -- sorry, 4% to 6% this year? I will say that we really have put a lot of effort on optimizing our cost structure and also puts toward quality acquisition and mean to significantly improve our margin and bottom line profitability. We are not just looking at revenue line, but we look at -- we also looking at margin and profitability. We will definitely not cut costs that will affect our revenue generation ability that definitely we will not do. However, as you may compare our cost structure of EBITDA, you may see that our cost structure is still higher than peer, which means we still have a lot of room for our improvement in this front, and we will continue to improve the margin without impacting the revenue generation ability. Next question. As you report, net loss of THB 581 million, how can you achieve your positive bottom line this year? Very good question. Turning bottom line positive, we have to deal with both revenue and cost. So I will address the cost side first, and then I will ask our co-President to elaborate more on the revenue side. On cost side, I think I already touched earlier that we believe we are on right track as proven with the continued declining trend of our expense and EBITDA margin improve. We expect that those not relating to revenue will continue to come down in the coming quarters, and we have already invested in our network and platform over the past several years. And we are now -- these are now our key strengths. And as communicated earlier, we already passed the investment peak and we will be more prudent in terms of new investment. We will invest in the area that generate good returns. So we believe that we have everything in press, and now we are in our harvesting times. So let me hand over to Khun Natwut to help on the revenue part.

Okay. On the revenue side, I believe growth will come from 4 areas, right? One is 5G; secondly, broadband; third, digital; and fourth, data. So for 5G, our 5G leading position, both in terms of high-quality network and brand awareness, give us a competitive edge, particularly gaining in those -- from those without the real 5G. A period of 5G phone and nonphone devices all across market segments as well as 5G use cases that we collaborate with various partners will contribute and help monetize our investment in a more significant manner. The new normal lifestyle as well as working and learning from home that will continue to drive a solid broadband growth, as we have illustrated, we are in the best position to reap on this benefit as our broadband propositions, ranging from Gigatex, Mesh WiFi, Google Nest, content and privileged bundled comprehensive and cater to our market segments. On digital platform and solutions, we have gained more scale and will be the key driver for accelerating digital content subscription and advertising revenues as proven with this track record of double-digit growth. It will also help drive growth at TrueVisions as we just launched TrueVision Now, which is the digital side of TrueVision to capture growth in the OTT market. The enterprise digital solution is another key area that we expect to generate significant revenue stream across vertical industry. In addition to the above readiness, if we talk about data, we will utilize more in-depth analysis and strengthening channel strategy and create synergy with strategic partners, such as 7-Eleven, Makro, Lotus's as well as strong partners like Com7 and other business partners, which we will create into a big and beneficial ecosystem, to accelerate our revenue growth.

Next question. Please update development of your digital business, which are the key growth areas and what are your strategies?

Okay. On digital business, as mentioned earlier, our digital business has continued to gain scale and expand partnership, which are key elements to push growth. We expect significant growth from both consumer and enterprise segments in digital businesses. The digital platform such as TrueID and TrueID Plus. We have been doing analysis and lay out key content propositions to differentiate TrueID and make it better match tie consumers. The digital content advertising market is also appealing with value in the THB 20 billion range, which is the key areas TrueID TV is pushing. In enterprise market, we continue to see good progress with various vertical partners in the pipeline. IoT and digital solutions have been expanded from smart transportation and logistics, such as the connected solution for fleet management, transportations, insurance, so we can capture the benefit of the logistic expansion trend. Another one that we're looking at is smart living and property. The example of our solutions are QR code solutions, the tablet device in home as well as the -- which we install in the condo such as LPN and other real estate projects. Another one is AgTech, or agricultural technology, where we do a livestock monitoring, CCTV at farms, and we work together with a lot of our partners and customers, ranging from a large corporation like CPF and also SMEs like the owners of daily farms. Retail, we also do smart coolers, as mentioned earlier, and also Health Tech, health care technology, as we mentioned about TrueHealth that we launched. So digitalization and digital ecosystem and platform will be the key to attract customers and enhance their stickiness. We have all comprehensive offerings that are better than others. And key for us right now is effective marketing to the right target.

Next question. When will you be considering another round of asset sale and leaseback with DIF? Will this kind of funding no longer be justified under the new TFRS 16? I would say that we currently don't have any plan to sales more assets to DIF. As you may aware that in terms of the sort of fund. Currently, the low com bond market is really liquid, and the interest rate or the coupon is very favorable as well. So if you compare the bond -- floating of bond to the local one Thai market and monitoring of asset to DIF, the debt instrument. I mean, the bond issuance is a lot more card effective than selling of asset to the DIF. And there's a second question, regarding the impact of the TFRS on the sale of DIF? Yes, definitely. Because of the TFRS 16, the long-term lease will be treated as asset and liabilities. So it doesn't matter, say asset to the DIF or not. The way we book the asset is pretty much the same according to TFRS. Next question is on, what can be possible revenue impact from the third outbreak you have seen so far in May? In form of prepaid revenue per day comparing with your postpaid -- sorry, prepaid revenue per day in Q1, '21 in April. Can Dr. Teeradet help?

Sure. Let me address this. I think we might not be able to give you a real specific deadline on that. But let me put this into a different perspective that we have not seen any big impact just yet from this new wave. And we believe that this year impact is going to be quite limited and controllable. I think people are now kind of aware of the situations and also not really panic as before. So our prepay acquisition has been fairly improved from the first hiccup in quarter 1. And I just hope that this positive trend will continue. And through this dynamic remains competitive but not competing heads on in terms of pricings of -- as our operators share is in the same view. That or should be better off. And if the market grows without aggressive discount and subsidization.

Next question. Advanced has great the year-end target of user in 5G target from 1 million to 2.5 million to 3 million. What about your new 5G user target in 2021? How much ARPU uplift have you experienced from your 5G customer? And what are different usage pattern between 4G and 5G customer in your network? Can Dr. Teeradet help on this question again.

Sure. Let me address this, Yupa. I think we have learned, and also we have seen some good progress on 5G progressions. And we can see that more and more 5G devices, especially mid to mass are coming into the market like in the quarter to come, and we can clearly see that the adoption rate is growing progressively. And I believe that more than 2 million users are achievable. And then as a consequence, ARPU uplift is expected as well. As communicated earlier, it's more about 10% ARPU uplift and if the usage pattern is not significantly higher than 4G currently.

Next question. What will be happening if your wholesale resale agreement with CAT is ending 2025 in both terms of revenue and cost. The wholesale resale agreement with CAT is the associate to the 3G 550 megahertz spectrum that we use for 3G service that we serve. Certain customer with only 3G in mobile device right now. As you may aware that we are now moving towards 4G and 5G era. So the handset with only 3G capability will continue to decline, and we expect that we will accelerate the declining like will be accelerate to what -- I mean before the end of the wholesale retail agreement in 2025. So we don't anticipate any impact in terms of revenue if those contact in, and we have to stop using the 50 megahertz for 3G. Because we need to migrate those customers to 4G and 5G, and this is natural. And the migration rate would be very rapid from now on. Because, as I mentioned earlier, we are now moving towards 5G already. So the 5G-enabled handset with a very favorable price point, will be introduced more and more to the market. And when people change the handset, it will be 5G-enabled handset, which means the 3G handset will reduce significantly. So no impact to the revenue. So in terms of the cost side, because we pay a significant amount of -- I mean in terms of the bandwidth for the 560 megahertz, so a quite a huge amount of cost to CAT. As such, you can imagine if we end the contract, meaning that those card will disappear from our financial statement driveway. So you can anticipate those positive impact in terms of the cost side once we end the wholesale resale agreement in August 2025. Next question, please. Do you still maintain core revenue growth guidance at 4% to 6% year-on-year, earning turnaround in 2021 and cash network CapEx of TWD 40 billion. May I ask Khun Manat to help on this question.

Okay. I would say, definitely, yes. Our guidance is always challenging, but I will say, we work very hard. Everyone here is working very hard to achieve to target. Our key forecast is still on achieving the profit, which has to be driven by both revenue and cost. We see a good progress on both items. As we mentioned earlier, our key drivers would be the 5G with more device in this year and adoption on broadband Internet writing on our new normal. We have -- momentum should be carrying good momentum here as well as the new digital media and IoT, which continue to gain traction and has strengthened the True Group's ecosystem in more meaningful manner. For the network CapEx in Q1, we are still on track of the THB 9.4 billion. And we -- mentioning the full year guidance of lower than 2020 level of THB 20 billion range.

Thank you, Khun Manat. Next question is on our TrueMobile business. How do you plan to accelerate mobile revenue growth during the rest of the year?

Let me take it. Well, as I mentioned earlier, allow me to put this into the real perspective. I think 5G is very similar to 4Gs and 3G adoption, but advanced technology. Mainly we would capture high-value customers or the early adopter kind of markets. And of course, we -- the winner through that adoptions and also through the high-value customers, we also have an acceleration plan, of course, to drive our mobile revenue growth, but yet to really controls on the quality subscribers. And as I mentioned earlier, the mass market mobile is coming along the year. I think we'll have the new mass market mobile coming into this month and also this month continue to have to as well. So that's mean, we would be able to capture more mass market, mass penetration. So that's mean will also help our customers providing an affordable handset and we also get them to experience the 5G network coverage that we have in almost 98% coverage in Bangkok and also in city area. So I think that will be a key strategy. We will want to do and continue to drive this throughout the year. So that's the plan for us to grow for the mobile acceleration plans. And we just hope that this plan will also help us to grow the revenue throughout this 2021.

Okay. The next one is, through Q-on-Q growth is 0.1% in mobile revenues. What are the key reasons and outlook?

Well, let me take this one as well, Yupa. I think let me put this into another viewer's perspective. Our focus is really on quality subscriber. And as you can see from our reported revenue, we have quite an interesting ratios of postpaid user. It's approximately 66% in comparison with 34% of the prepay, which, of course, outgrowing to the other operators. And with that, meaning we kind of secure our postpaid revenue, and that also helped us to make sure that we qualify our subscriber, and we know that postpaid will also help us to drive a long-term engagement with our customers. So we just believe that with that ratio, we will probably need to focus more on the prepaid, which really impact by the COVID situation. But it for us to make sure that in the quarter to come and to the rest of this year, prepaid will also be our key strategies and also helping customers to a plan that, but correctly. Using postpaid will also be something for us to optimize that ratio and there are outs between the 2. So that's the main reason why.

Okay. Next question, please. Your postpaid ARPU decline, is that more due to pre to post-conversion or due to fixed speed unlimited competitions? I would say that majority is due to the pre to post migrations. The next question. If you were to incur loss in Q2, would you report positive on negative tech revenue? So let me clarify my understanding. Your question would be, if you incur loss in Q2, whether the tech line will be cap expense or tech revenue? Let me clarify this way. Because of -- even though in the True Group overall, sometime we post lost. However, we have several entities in the groups that we make certain profit, which means for those entities that we have profit, we need to pay tax, and that is the tech expense inter. For those entity that we incur loss, basically, we should have what you call the -- either positive or 0 is depend on the deferred tech treatment and the deferred asset and liability when we book in our balance sheet. So we cannot guarantee, it's dependent on the performance of a separate entity under 2 groups. And I believe that in the Q1, our tech expense is we show as tech expense. Next question, please. The green camp report a record-high prepaid net-net. They said that government's stimulus was partly responsible that True will not benefit as much. And if we see more similarity in Q -- second half '21, should we expect True prepaid subscriber market share to continue to refi further? Or will you try to retain #1 spot in terms of prepaid stuff? I would say that definitely, for True, we will not start any price -- price cutting or price war, but we will definitely be competitive in the market. So I don't believe that we will continue the declining trend for the prepaid segment as we will stay competitive. If Khun Manat or Dr. Teeradet would like to add anything on these questions.

No. I think that's very much.

Is there any further question? I think there's no further question from the web. So I would like to thank you very much for joining the call today and looking forward to seeing you in the next quarter. Thank you very much.