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

Good evening, and welcome to True Analyst Conference for the Third Quarter Results of 2021. I'm Yupa Leewongcharoen, Group CFO. And with me today are our 3 Co-President, Khun Natwut, Dr. Teeradet and Khun Manat. Now let's start with a brief summary of our key results. The third quarter was challenging with the lifted COVID-19 restriction limiting business activity and prolonged economic pressure on our consumer spending. This softened our service revenue in the third quarter. Nevertheless, our cost control efforts continue to yield positive results, driving EBITDA and margin up during the quarter. We expect more contribution from both cost measure we already implement and new initiative lining up to improve productivity and profitability in the near future. TrueMove H 5G user continued strong growth pace and reached 1.5 million users or 14% of its postpaid base. TrueOnline once again record industry high net add and drove revenue up 9.5% year-on-year, 2% Q-on-Q with ongoing demand from work from home. True Digital Group gained higher scale and partnership driving double-digit revenue growth from the previous year, in both consumer and enterprise market. True Digital Media platform, TrueID, continue to grow revenue by leveraging over 26 million TrueID MAU and 3 million TrueID TV boxes. At the same time, True Digital Solution expand its client and partnership with more innovative solution for various industries, resulting in another quarter of solid revenue trend. Now moving on to the financial performance. Consolidated service revenue softened Q-over-Q and year-over-year to THB 26.2 billion, with effect from the economy and restriction measure as mentioned earlier. But we have seen gradual recovery following the country reopening with easing measures and resuming business activity in the fourth quarter. Expenses above EBITDA continued to decline, thanks to our cost restructuring efforts which we basically look into every cost categories with key item like channel and manpower optimization, outsourcing management, network and digital transformation, sales and marketing as well as content. As a result, EBITDA increased 8% year-on-year and 1% Q-on-Q excluding onetime regulatory benefit in Q2 to THB 14.4 billion, with EBITDA margin on service revenue of 55%. Although depreciation, amortization, interest [ still ] pressure bottom line performance in the third quarter. The peak recent cycle has passed. We are equipped with strong fundamental to capture growth, and we will continue to maintain financial discipline to improve profitability further. Next, our Presidents will go through performance of our key businesses, starting with Dr. Teeradet for the mobile business performance.

Thank you, Kap Khun Yupa. For the mobile segment, the tightened COVID-19 restrictions in the third quarter with temporary shop closure changed in prepaid usage pattern due to short-term relocation, lesser activities, and operating terms of outlets as well as weakened customer spending caused mobile revenue to soften by 2% Q-on-Q and flat year-on-year. The prepaid acquisition was limited as a result. We saw lower voice topping and shift toward low tier unlimited data plans in quarter 3. But while the topping is picking up currently along with easing measure, people moving back at more shop operating hours. We are confident that this positive trend will continue. Our postpaid still maintain healthy momentum with net adds contributing around 50% of the industry, mainly driven from 5G growth, which I will touch on in a moment. TrueMove H acquired 319,000 net adds, which expanded its total subscriber base to 32 million, of which 21.2 million were prepaid and 10.8 million were postpaid. We are now utilizing more data analytics capability and focusing on targeted campaign that boost quality subscriber growth. We believe this is the key to drive higher revenue and [ our mobile ] mitigation impact from any economic challenges in the future. On TrueMove H, continue to capture growth in the 5G market and enhance customers' experience and perception with the most 5G network coverage. That proven with various international recognitions. Our 5G footprint was extended across the country, particularly in targeted areas with a strong growth potential like BMA and EEC, which covering more than 98% as well as key cities area, which also helped to offload our 4G traffic. More affordable 5G devices will launch in the market during this third quarter with varieties of payment choices, including, of course, our partnership with Ascend Nano on device installment alone. As a result, our 5G users grew by -- grew more than 50% Q-on-Q to 1.5 million. We are also leading in adding benefits to customers, particularly via exclusive content across the True Group, for example, TrueID and TrueVisions, with popular sports content like EPL, VR and AR and other various entertainments and lifestyles. More form partners, which I will touch on in the moment. Well as well as creating convenience to more choice of payment, online sales and services and synergy channel with strategic partner with nationwide footprint and huge traffic like 7-Eleven, Lotus and Makro. We are confident that this will continue to strengthen our competitiveness and contribute more to accelerate our 5G user base. To add more value offering to customers to solidify our 5G ecosystem, further, we have expanded our partnership with various leading global alliance. In the third quarter, we partnered with TikTok to provide the new entertainment experiences with a virtual game show called True 5G presents TikTok Game Night. For the first time in Thailand, by leveraging strength of the TikTok top influencer and our advanced 5G XR studio, we work and watch the show on TikTok Live via TrueID and TrueVisions and of course, Facebook as well as enjoy more entertainment from TikTok Extra with exclusive popular clips from various TikTok content creator, virtual IDs applications and websites. Another latest collaboration is True 5G Innovative Cloud AR with Nonvoice Alive, which is the U.S.-based 5G applications and AR technology services provider. Our customers will especially -- will get special privilege to enjoy a full world-class AR application both for education and also entertainment for various lifestyles. For example, AR game is board competition as well as platform of digital collectible items. All this affirm our continued effort to always respond to customer preference and live stars. And we hope to be a #1 of choice for the customers in this 5G world.

Okay. In response to growing demands from business for 5G enterprise solutions, we have collaborated and developed that use case with various leading partners which was proven successful and now being commercialized. Our 5G SA and NSA offer an optimum customer experience and can be adjusted according to users and devices. The 5G FWA provides high speed, low latency and superior quality of services to cater to demands in the specific area where wired network cannot be reached. Our 5G network slicing is tailored to specific needs of a customer while the 5G private network serve well, strengthened by partnership with Mitsubishi Electric and LertVilai on 5G smart factory with fully automation system. Our MEC cloud platform, boosts speed and reduces latency which can be used for various segments, such as telesurgery, e-sports in edition to unmanned automated car. We clearly provide services to Siriraj Hospital. We are more than ready to expand client base in various industry sectors with our indicated solution and complete digital ecosystem. For the broadband Internet segment, we continue to see positive growth momentum for the overall market with more installation demand to support work and learn from home regardless of easing restriction as this new normal trend remains prevalent. TrueOnline scaled its leadership and added 135,000 net adds in third quarter, driving this broadband subscriber base to 4.5 million and growing revenue to THB 7.5 billion, growing 9.5% year-over-year and 2.2% Q-o-Q. TrueOnline continues to place important and offering optimum online experience through high-quality fiber network, proactive maintenance and offers that meet customer needs. And so its [ level ] guarantee with fast installation and fix. These are achieved through our advanced analytics capability and organization restructuring to be more agile and adapt well to change. Our ability to bundle exclusive content and multiple products across True Group remains a key competitive strength that continue to boost customers' engagement and perception of TrueOnline as the #1 choice of family members. We expect this cater to customer needs and push our growth higher. Let me hand over this to Khun Natwut for the digital part.

Thank you, Kap Khun Manat. We have strengthened our core telecommunication networks, digital infrastructure and services, as mentioned earlier, and are more than ready to push growth through digital media, IoT and solution-based offerings. Our flagship digital media platform, TrueID, provides a complete range of entertainment and exclusive content, lifestyles and privileges to customers. The redesigned version recently launched fits daily lifestyles with better user friendliness like call, gamification and music and customized profile features as a part of social community in the app. Users will be able to enjoy more than 120,000 articles of user-generated content on TrueID in trend as well as extra privileges across True Group and CPE Group and ecosystems. TrueID is now a leading video content platform with over 26 million MAUs as of Q3 and 417 million monthly video views on average, while TrueID TV and dry box expand further with 3 million boxes at customers' premises. This drove TrueID's revenue up 35% year-on-year and 5% Q-on-Q in the third quarter. For the Enterprise segment, True Digital Solutions keep expanding and developing a complete portfolio of innovative services and solutions to various industries. Its revenues continued to grow in the third quarter, increasing by 33% year-on-year and 8% Q-on-Q. For example, in the agricultural sector, new service like smart irrigation system or True Grow was launched in Q3, allowing farmers to automate their irrigation processes and using weather and soil data to find an optimum level to help reduce water use and improve production efficiency. In the retail sector, True Smart Energy Management Solution has been applied in Lotus with 24/7 energy monitoring and alerts, helping clients manage energy consumption efficiently and reduce spending. Additionally, in the property sector, we partnered with KE Group to enhance its property management by using True Digital Property integration system with analytics and dashboard at KE Group's 11 shopping centers and office building, such as CCTV, smart security, smart parking and smart meeting room. This -- the collaboration will be further expanded in other areas in the next phase. True Digital Group prides on significant growth potential of digital health technology via True Health, providing alternative health care with online consultation with doctors, insurance cashless claim as well as delivery of food and medicine to Thai people in response to the COVID-19 pandemic. True Health continued to expand the services through strategic partners, including National Health Security Office, Social Security Office, Thai General Insurance Association and third-party administration by Thai Re Services Company. In addition, it partnered with various insurance companies like AIA, Alliance UTR and Cigna, adding new feature called Tele Mediclaim Plus to easily claim expense via True Health application without advancing the money -- without the need for a customer to advance the money. The telemedicine platform for hospitals called True HEALTH Teleclinic, was also launched to assist hospitals in digital health transformation via telecare platform online, using live official account had been offered for small hospitals or clinic with growing user base. As global transformation enabler, True Group utilized innovation to consistently develop various digital services and solutions to connect all digital journeys of customers and assist businesses to create more opportunities. Our services comprise of digital media and OTT platforms with exclusive entertainment and lifestyle content, influencer businesses and privileges to be utilized across True Group and CPE Group ecosystem. Corporate and cloud solutions with analytics, IoT and digital solutions for various vertical industries, such as smart living, property and energy, transportation, retail, agriculture, health care and hospitality. Cybersecurity is another service that we see strong demand in today's cyber world. While our cloud-based platform through virtual world and True Health [ well-served ties ] in this digital era. These complete services and ecosystem make True Group step ahead in enjoying exponential growth in the foreseeable future as the digital world is scaling up at a rapid pace, along with progressive digital adoption for both consumers and enterprises. In addition to the mentioned revenue growth potential, digitalization will improve efficiency with end-to-end processes and create cost savings in a significant manner, whether they be cost related to personnel, physical outlets, office building, sales and marketing, as well as billing and payment. This concludes today's presentation, and we will now open the floor for questions.

Let's start with the first question for Dr. Teeradet, "please recap the competitive environment in mobile and fixed broadband market in Q3 this year."

Sure. Let me give a bit of background in this third quarter. Both markets remain competitive, but we have been stable from the prior quarters. For the mobile market, postpaid was quite healthy and stable. And of course, 5G is the key push. Prepaid, however, is very dynamic, and we got affected by economy, which lower consumer spending and competition around the low-price unlimited prepaid plans to attract value seekers. The pricing offer are not deviate from the nationwide, but in certain areas also have their own proposition, which can be changed on daily or weekly basis, depending on the market situation. The broadband market still grow well with the continued positive momentum of work and learn from home, although ARPU remained under pressure and certainly discounts demand is much more, and we believe that the overall market will continue to grow.

Next is also, I believe, for Dr. Teeradet as well. "How about the consumption recovery trend you have experienced since the economic reopening in September, October? Will the economic recovery improve the competitive intensity in Q4 in your view?"

Well, I have seen and we have seen the early positive trend following the reopens and operating hour pretty much return back to normal. In quarter 3, we got tipped by some of the new locations and change in consumer behavior, which is temporarily hiccups. And of course, the people use user -- the prepaid user move from city to the up countries area, which, of course, they will return back soon and we can see some signs of the usage kick back in. Economy recovery definitely helps. Various efforts have been made to uplift the price point from time to time. But prepaid competition is pretty dynamic. So we have to monitor this day by day and to the levels of the competition varies area by area.

Next, "How about your 5G population coverage this year end? What will be your coverage target for next year, Khun Manat?"

Okay. Thank you, Khun Yupa. Our initial 5G coverage target is in the 70% to 80% range to make sure our 5G customers experience superior services which is different than 4G and 3G. In order to attract them to move to 5G, and coverage is a key, they need to be able to use 5G when they travel to nearby strategic areas. We already completed our initial 5G rollout plan over 50% coverage and believe we are serving customers with superior 5G experience at this current level. Also, our 5G [indiscernible] for offloading our 4G capacity with lower cost per megabyte but better experience. The exact timeline to reach the coverage target depend on customers' usage and network traffic trend.

Next, "What will be your target for 5G subscriber of 5G adoption rate next year?" Kap Khun Manat?

Me again, okay. We're aiming to more than double our 5G user base.

Thank you. Next question, please. "Given the chipset shortage, the lack of affordable 5G device may be a problem of 5G penetration. What is your view on this for next year?" This is for Khun Manat again.

Chipset issue is a key overhang for affordable 5G modules currently. But we expect situation will be better, probably in the Q2 next year. The entry-level inter-brand with price point below THB 6,000 is not in the market yet. However, premium and mid-tier 5G devices are already in there. We continue to see positive acquisitions. So no issue this segment.

Next, "What is the percentage of the revenue coming from B2B? What will be your target next year? What will be your strategy to achieve it? Will the B2B EBITDA margin be higher or lower than the B2C EBITDA margin in what extent and why?" Khun Natwut, please?

Thank you, Kap Khun Yupa. Okay. Revenue from B2B is in the low teen currently. We aim to more than double its contribution in a few years. As we have seen in the presentation, we have various kinds of B2B services and the margin is deviated a lot, depends on each service -- which service we're talking about due to a different nature. So comparing the two figures might be misleading because we also share resources, SG&A, et cetera. And if looking at only the gross margin without taking into account SG&A, B2B definitely give much more higher margin, can be in the 70%-plus range. In terms of strategy, we believe we have superior offerings and are now expanding more partnership to approach a wide range of customers, connecting with partners of customers as well as leveraging both ours and CPG ecosystem. For example, for IoT and digital solutions, we are expanding with new categories of sensors, installed base to drive IoT fundamental. We are scaling in major vertical industries with solid solution and connections, including: one, agriculture, smart farm automation; two, property like digital building management; three, retail, digital store solution; four, industrial and robotics, factory integration; and five, consumer, such as smart living solution. For cybersecurity. Cybersecurity is another service that we see strong demand. As already touched on earlier, cybersecurity have a market size of over THB 30 billion per year. Health is also ramping up because also -- partly because of COVID-19 situation. We are expanding partnership and our key initial focus is in the insurance market with market size in mid to high THB 100 million range. For example, starting off with AIA, Alliance and Cigna with more to come.

Next question is on the NBTC. "Please update about, one, the NBTC plan to lower user fee; two, the negotiation with NT on 700 megahertz; and three, the negotiation with NT on 850 megahertz wholesale fee reduction." Well, we might not be able to share with you much at this point since this relates to various parties. However, I would like to comment about the user fee first. For user fee, we believe that as an infrastructure provider, we have been rolling out network and spending quite a lot on both network expansion and spectrum license in order to provide superior network quality to our customer and also help tie with the advanced technologies. So in our view, we believe those are already listed as user fee and operators shouldn't be liable for that. But again, this is just our voice. The decision will have to be from NBTC. And I believe that the more clearly picture should be seen towards the end of this year once we have the new NBTC board in place. And on #2, the negotiation with NT on 700 megahertz. The deal has not yet been finalized and also subject to the new NT board. So unfortunately, we cannot update you much at this moment. On #3, the negotiation with NT on 850 megahertz wholesales fee reduction. We have been in talk with NT regarding the agreement. We still cannot disclose the detail to the public at this point as it is under negotiation. We will surely share you if it has been finalized. However, regardless of the negotiation, our wholesale fee agreement will expire in 2025. And if there is still extension, it means that we don't have to pay the mid teen billion baht per year afterwards. This is the impact. Yes. I think, I completed all the answer. Yes. Next one. This is for me again, "With your profit [ turnouts ] still underway. What will be the dominating factor to achieve it, either revenue increase or cost reduction?" I would say that as the management, it is our priority to deliver profit and retain -- return to stakeholders in a sustainable manner. We are working in every way to make sure we reach that aspiration. It is unfortunate that the economy and COVID-19 affect consumer spending, activities and various industry sector including us in the first 9 months. With the government put on various measures, including the country reopening, easing restrictions, et cetera, we expect better performance and early sign of recovery for mobile as well as continued growth momentum for broadband and digital arms. We are confident that we will resume the growth mode. We are working more with our strategic partner in pretty much every aspect to expand revenue and ecosystem. For example, Lotus is an addition to our channel synergy and competitiveness. Regardless of revenue, we believe that our cost restructuring efforts will be more contribution in the coming quarters. And on the previous question on cost relating to regulatory and state enterprise, this is one of the items we hope to see it coming. Digital transformation will also bring in another significant saving. We are also reallocating our resources or revisiting the area that we should continue to do in-house or outsourcing to expertise so as to drive for more efficiency or cost reduction. Next, "the market has started to talk about your merger deal with DTAC. Your foreign variable room also dropped significantly from 4.7% to 0.01% last Friday. Can you share who is the buyer and whether it will lead to the deal?" Actually, my answer is very short. We cannot comment on any rumor or speculation in the market. Next, please. "Your mobile revenue was weak and lost market share, i.e., to AIS. Your ARPU also contract more than peer. What caused this? And how will you reverse the trend?"

Let me take this one. Well, we got an impact in the prepaid market where we see lower spending on mobile topping moving towards the low tier unlimited data plan following the prolonged economic impact. We also believe that this is really a temporary relocation from people in the city or urban areas causing our drops as well. However, we see an early signs of people moving back to the cities and also resume their using of our service, which is very good news. As mentioned earlier, we see early signs of this prepaid recovery and the easing of the COVID-19 restrictions with our outlets resuming now into a normal operating hour, especially our partner 7-Eleven make us confident that the reversing of the [indiscernible] would be much better. We'll also try to push ARPU up by utilizing our analytics capability for promoting the right -- and have a price plan in certain geographical areas while monitoring the success and our competitiveness on the daily basis. Our postpaid have been growing well, and most of the pricings are pretty much in line with industry. But we try to add on more value-added offerings like content bundling with other products of True Group. And privileges to our customers, then our postpaid ARPU was also affected by our effort on pre-to-post migration. Despite ARPU decline we still managed to grow postpaid revenue and with Q4 campaign, especially iPhone 13 and other 5G and 4G devices, that upward trend should continue.

Thank you. Next, "Please update on the future spectrum of [ general ] timeline, i.e., 3500 megahertz." First, I would like to update regarding the NBTC's board first. Right now, the 7 candidate of NBTC board member has been proposed and are now under the [ senator ] consideration. This should have more clarity toward the end of this year. The spectrum auction definitely cannot happen before that. Regardless of the auction timeline, we are confident that the spectrum holding we have right now is sufficient to provide high-quality service to our customer at least for the next few years. And we believe that the #1 player also share the same view. This is what we can share right now. Next, "Please give a background on how is gaming driving usage of data package? And what is the average data package for True? And how much it has growth year-on-year and Q-on-Q? What are your top games? Can you tell us a bit about the commercial arrangement with the game owners?" Dr. Teeradet, can you help this question? Thank you.

Sure, Kap. Our average data usage has been around 20 to 22 gigabyte per month or around 50% year-on-year growth. And the gamer normally use about 10 to 20 gigabyte on top of that. And just to highlight on other collaborations of the gaming businesses. True regularly work with many game publishers, local and global, such as Garena, of course, they are the #1 in Southeast Asia; and Netmarble, which is the #1 in Korea, to optimize our networks and the game to ensure best gaming experiences to True customers. On top of that, True also work with game publisher to provide exclusive privileges to True users, through TruePoint campaigns. Moreover, we take a role of game aggregator with potential game partner such as like EnStream, Arcade, AirConsole and also Gameloft. And of course, True also have Online Station, the biggest game media with more than 1,000 game influencer through Facebook and YouTube platform.

Next question is, "How many are the 5G subscriber at the end of September? And what is the target by year-end '21 and '22?" Kap Khun Manat?

Okay. For this year, our target is to reach 2 million and more than double it next year as already addressed before. Kap?

Thank you. Next, this is a long question. "Please tell us something more about this JV and in what way can this contribute to True? True subsidiary, True Digital Group, has invested 70% or THB 162 million in Zap Group in Philippines which engage in privilege and online to off-line platform. This is to strengthen through digital offering and to gain potential future return on investment." Can Khun Natwut help in this question?

Yes, I will take on this one. Zap Group is what we call a privilege-as-a-service provider, right? It's one of the largest in the Philippines. It's offerings are product like, for example, retail loyalty program for brick-and-mortar stores, catalog reward program like loyalty program for corporate clients with brands and also they operate e-store, which is an online ordering site for merchants. Basically, TBD, right? We are running many business units across the regions. And in the Philippines, we have TrueID Philippines. The collaboration in the Philippines will include bringing merchant in the ZAP Group system to be featured on TrueID Philippines and also to do advertising and issue True Points for consumers to consume on TrueID in the Philippines as well. Kap?

Thank you. "Please tell us True regional initiative. And what are the expectation there with regard to contribution to growth in the next 3 to 5 years?" Khun Natwut, would you?

Basically, we are leveraging our various expertise that we are having in Thailand to the region. And it's our aspiration to be a major player in regional -- in the region. So for example, in B2B, we have IoT that we have done and we have learned in Thailand. We can leverage technology partner relation and expertise we already built here to be deployed internationally. We can also leverage CPE Group ecosystem and especially in China, which is a very big market with huge growth opportunity, we will leverage our business relationship and network to expand our business there. And on the other side, on B2C, we have TrueID, right? And TrueID, we have a platform that can be leveraged. We have content relationship and we have license. We will leverage TrueID and its scalability to accelerate growth as core investments have already been made. And we can add on customization, localization to our content to match local users. Kap?

Thank you. Next is, "About 1.56 billion shares of variable in foreign remit was taken on the 12th of November. Who is the buyer? And what this mean to True shareholding structure?" Well, as you may aware that we close the book annually. So the movement between that is up to the shareholder or the trader. What we can tell right now is that our foreign strategic shareholder like China Mobile still maintain their shareholding portion. And if there is any significant event from the company standpoint, we will surely announce that to the market. Next question. "What is your view about the selection of new NBTC and the auction of 3.5 gigahertz spectrum next year in terms of visibility and time frame of board? Also, what will be your take on the 3.5 gigahertz spectrum auction?" I believe I already answered these questions. And however, regarding the new NBTC, we don't have any comment. Next question, please. "I understand that True has been setting up a CapEx budget for original content production. Please explain more about your original content strategy in the future and your monetization plan going forward. How much CapEx budget do we expected to have next year?" Let me address this question first. And if Khun Natwut would have anything to add, please feel free. For the content production budget, we actually don't have any concrete budget. It's not like the network investment or other CapEx investment. What we will do for the content is that we actually have content investment committees to consider content by content. And we will only invest in the content with ROI, meaning that, that content needs to have the return on investment, either in terms of increasing the MAU through our digital platform, getting the revenue from third parties or the revenue from the viewership or the transaction -- the viewing on a transaction base. Those are the main criteria that we consider when we want to invest in any content. So in short is that we will invest in the content with ROI, yes.

Okay. Let me add to Khun Yupa in terms of content strategy. We view original content as very critical to our strategy. We strongly believe that original content and exclusive content is the key to our success in, for example, in TrueID and actually in any other media business. We believe that True process a strong assets and ability to create a good original content. It has been proven with many original content that we have produced. I think Thai content consumption is very unique. We believe that we have done a quite successful track record on that. We believe that if we have a strong original content, we will show our uniqueness to our consumer base, and we will pull them into -- to view us as a unique place that they can consume original content. And this original content can also be leveraged in the region as well. So I think original content is super key to our future success.

Right, exactly, yes. Thank you. This one already addressed. Next one, please. Next. Next one. "Please explain about your latest investment in Zap Group. How about this [ exceeding ] financial performance, i.e., profit or loss at what magnitude? What will be the endgame for this investment in both synergy and financial contribution to the group?"

I think we did explain it, yes.

"Without Chinese tourists from quite some time next year, will True competitiveness be disadvantaged over your competitors starting in last October [ resulted ] revenue market share?"

Let me take this one. We -- not just in China, we also have our competitiveness in other countries as well. Of course, after reopening, we saw top tourists coming from U.S.A., UAE, Germany, U.K., [indiscernible] Japan. We also have various partnerships with our global operators. Just for example, in U.S., we have partnered with AT&T, Verizon and also T-Mobile, For UAE, we have partnered with DU. In Germany, of course, we have partnered with both Vodafone and [indiscernible] T-Mobile. In U.K., we have Vodafone and [indiscernible] EE. In Japan, we have NTT DOCOMO as part of [ Nexus ] and also partner with KDDI and SoftBank. With that, we are confident to capture this growth, with all of these stories coming in, we will be able to capture those market share because we have such a strong partnership across the majorities of the tourists coming from many countries.

I guess there is no further question from the webcast at this moment. Okay. So if there is no further question, then we would like to thank you very much for your participation in this analyst conference. And we are looking forward to seeing you in the next quarters. Thank you.

Thank you very much.

Thank you very much.