Viva Leisure Limited (VVA) Earnings Call Transcript & Summary

Good day, and thank you for standing by. Welcome to the HY '22 Results Investor Briefing Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Harry Konstantinou. Thank you. Please go ahead.

Good morning, ladies and gentlemen, and thank you for joining us on the conference call today for Viva Leisure's financial results for the half year ended 30th of December 2021. I'm joined today by our CFO, Kym Gallagher. This morning, various documents, including an investor presentation, were uploaded to the ASX, and we will be referring to these during our presentation today. In addition, our regular bi-monthly report covering the period November and December 2021 was also uploaded to the ASX announcements platform this morning. The bi-monthly report, together with the investor presentation, will provide a clear guide on how the business has tracked over the first half of FY '22 and into January and February 2022. I look forward to taking you on the Viva journey during this period, which has, again, unfortunately, been affected by COVID. Whilst the traditional January bump of memberships did not occur as expected due to our hesitancy in the community because of the COVID isolation rules in place at the time, the February period has outperformed management expectations. More details on this later in the presentation. This is Viva Leisure's third set of half year results since listing on the ASX in June 2019. From a personal perspective, the most frustrating thing since listing is that the business has not been given an opportunity to shine as we have not had a clear 6 months of trade without COVID interruption. Our first half year results presentation in December 2019 was only 6 months after we listed the business, and while it was still settling in as listed [ live ]. Shortly after this, the first COVID wave hit and the results were impacted. The next half year results in December 2020 were also impacted by COVID lockdowns as well as the most recent half year results for December 2021. However, we see -- we now see clear sky ahead and are confident that lockdowns are behind us and that the following 12 months will allow Viva to benefit from the extensive foundations we have built during Viva's first 2.5 years as a listed entity. The agenda for today's presentation. I will provide a quick rundown on the operational progress we have made as part of our return to growth, followed by some details on our expanded footprint, which forms the basis of our previously announced target to achieve 400 corporate-owned locations by the end of calendar year 2025. I will then pass on to Kym, who will run you through our financial results, after which I will provide an update on our brands and how they are performing. And finally, we will provide some guidance for our investors to understand our current trading and anticipated trajectory. We will then open up to Q&A. At the back of the investor presentation on Page 32 is a reconciliation of the statutory profit and loss to the traditional ex AASB 16 numbers. We will not be going through this today. However, if you have any questions, please contact us directly or feel free to ask a question at the end of the presentation. Moving to Slide 4. In terms of financial performance, noting that these figures are excluding AASB 16, revenue for the first half was $34 million, down 5.4% from the previous corresponding period. This is an excellent result, considering the business was unable to trade for a large portion of the half year. More details on this in the COVID section of the presentation. EBITDA for the period was disappointing at a loss of $3.8 million for the half year. Again, Kym will touch on more details on this. However, we have included a slide in this presentation on revenue versus rent and wages. So investors can understand that the catalyst of this result was purely the inability to generate sufficient revenue due to the mandated lockdowns. On a more positive note, corporate-owned members were up 132,190 from 102,908 in the previous corresponding period. Network members, which comprises both Viva corporate-owned members and Plus Fitness franchise members, was 297,201 for the period, up nearly 22,000 since the previous corresponding period. Corporate-owned locations were 132, an increase of 37 from the previous corresponding period. Since the end of the reporting period, a further 5 locations have been added, bringing the total corporate-owned locations to 137 as at today's date. Total network locations were 325 at the end of the reporting period, up from 293. All of the growth during the first half was attributed to corporate-owned locations However, we will start to see an increase in the Plus Fitness network shortly, with a new location opened up this week already. Moving to Slide 5. You will note that from the end of FY '21, our network of fitness centers has grown 5% to 325 locations. This now sits at 329 locations or 330 with the opening of a club a few days ago within the Plus Fitness network. This slide also shows the significant growth in locations outside the key market of the ACT, with New South Wales now up to 41 locations and Queensland and Victoria are more than doubling their locations to 24 and 19 locations, respectively, over the previous corresponding period being December 2020. I would now like to pass on to our CFO, Mr. Kym Gallagher, to run you through the financial results starting at Slide 7.

Thank you, Harry, and good morning all. I'm on Slide 7. Firstly, the half year results presented throughout this presentation are predominantly based on an ex AASB 16 basis, as Harry mentioned, which is also consistent with the prior period. Looking at the profit and loss. During the half year, it was really a tale of 2 parts: so the imposition of mandated lockdowns on our clubs and members heavily impacting the July to October period, and this has again hampered the group's overall results; the continual intermittent and, at times, unexpected shutdowns had the following impacts on the group, which slowed the rollout strategy to almost a standstill, with only 3 new sites opening during the half, with 2 of those sites opening in early July and 1 in late December, meaning there was very little rollout activity in the middle months. In addition, the FY '21 rollouts that were coming into profitability at the end of that year were again slowed down as the new member take-up momentum was continually interrupted and suppressed. There was little in the way of rental savings. And there was no government-mandated assistance that Viva was eligible for, so despite standing down staff during the lockdown period where it still had a considerable fixed cost base. What this meant is that the group sustained significant losses for the first quarter at nearly $5.8 million based on management numbers, but only November and December contributing any significant profits for the half to offset that loss. Despite these headwinds, we increased the total portfolio of clubs by 17 over the half, including the 3 rollouts mentioned earlier and 14 acquired clubs. In total, we have 37 additional Viva sites since December 2020. And accordingly, revenue roughly held the line against last year, but operating costs increased largely due to the fixed cost component of the additional sites. For example, rent costs alone are up by approximately $6 million for the half. This unfortunately led to a loss on the EBITDA line for the half year. In summary, though, the good news is, during the period July to December 2021, we've opened or acquired 17 clubs, including the Rebalance master franchise with 8 corporate-owned locations, 4 Plus Fitness sites and 2 independent sites. In other words, now that we are returning to normal, we have a very robust foundation to build on. I'm on Slide 8. There was a slight overall decline in member numbers across the half year stemming from the franchise business. Viva club members grew by 6,200 over this period. Coming into the new year with the effects of Omicron waning, restrictions lifting and people [ painted ] to get out and about, we've seen a 4% increase in our member base since 31st of December. What is also interesting on this page is the continuation of the derisking strategy of the Viva owned locations and member base from being a predominantly ACT-based group. Total members in the ACT as a percentage of the group is now reduced to only 38%, which is down from around 77% when we last -- when we listed in 2019. hiit republic network continues to grow, now at 23 sites and nearly 7,000 members. I'm on Slide 9. This chart shows the bridge of Viva-owned club members between June to December 2021 and then follows on to the current member numbers as of earlier this week, being the 21st of February. You'll note that there was a decline in the pre-2022 club members of just over 3,000. When the second set of lockdowns hit and with no firm end in sight, we saw a lot of membership fatigue. Many of our long-standing members simply quit rather than suspending their memberships. In fact, at our low point in September, we were down by nearly 8,000 organic members. So these recovered by around 5,000 members across the second quarter. Even more importantly, you'll note that of the 3,017 drop-off in the first half, 3,062 new members have joined since December, effectively wiping out the deficit. We noted that even as recent as late January, our suspension levels remained high as there was still a fear that a positive test meant self-isolation. But these now dropped by around 30% or 2,000 members -- suspended members returning. The announcement of the lifting of mask mandates was almost like a green light. So the coming months look positive from a revenue perspective as we not only now have a much larger member base, but suspension levels are also continuing to decline. I'm on Slide 10. Strong opening cash balance and a successful $11.7 million cap raise in August during the uncertain COVID lockdown period provided us with the safety net, if necessary, if not, the opportunity to continue to pursue rollouts and acquisitions. Once we had a bit more certainty around reopening, we completed several acquisitions in the second quarter, the main one being the Rebalance acquisition of the master franchise and 8 company-owned clubs. It has remained under control with a total of $14.6 million in senior debt, leaving approximately $10 million in available funding for further acquisitions. I'm on Slide 11. Similar comments to the balance sheet regarding the deployment of the opening cash balance and the inflows from the capital raise undertaken in August 21. In particular, nearly $10 million was invested in the 14 acquired clubs. And it's worth noting also that $3.7 million was invested in plant and equipment. Much of this was spent in the last quarter towards 7 new greenfield sites that were in various stages of completion at balance date. This will now start to open and contribute across the next 2 to 3 months. The lease payments line is simply the principal reduction of our lease liabilities, so that includes both equipment leases and rental leases. Moving on to Slide 13 for the COVID restrictions. As I mentioned on the opening P&L slide, the business suffered significant disruption in the first 4 months. As you can see from the chart, on a day count by club basis, 52% of the Viva business was closed across the first 4 months, including nearly 80% in September. This equates to approximately 35% across the entire half on an average basis where the business was not committed to trade. For the Plus Fitness franchise business, revenues also dropped as franchise fees weren't charged or were discounted during this period. We saw the return of all clubs opening in early November. And as you saw on the previous members slide, as restrictions gradually lifted and including more recently the mask mandates, members have started to return. This has been most noticeable for us from late January. Moving on to Slide 14. From the previous slide, we noted that over the first 4 months, we had 52% of Viva clubs closed, which severely impacted revenues. The orange line in this chart shows the revenue trend over the first 6 months, which, as you can see, in September, dropped to well below $1 million. The light blue column shows rent costs, noting that we weren't entitled to any mandated assistance, so we had to rely on negotiating with landlords for any incentives. The darker blue column shows the wage costs across the period. We unfortunately had to stand down many staff during the closure period, so we're able to save on wages. But it's clear, given the fixed cost nature of our business, with wages and rent being nearly 3/4 of our expense base, that this was always going to be difficult to make a profit over this period. Thank you. I'll now hand back to Harry.

Thanks, Kym. I'd now like to run you through a quick update on our brands and segments. We find this extremely important to go through as Viva is a diversified business servicing all segments of the health and fitness market, and it is important to understand the potential and targets of each segment or brand. We often talk about the brands and segments offered by Viva as multidimensional versus other players in the market that are one dimensional and have a narrow target and segment of the market they wish to service. Moving to Slide 16. This is the first time we have provided this matrix of brands, which shows the expanding portfolio. Each of the brands we operate service is a different market segment as there is no magic solution to everyone's fitness needs. And the only way to access all opportunities in the market is by offering appropriate products and services. And the first 3 brands, being Club Lime, hiit republic and Plus Fitness, are our key primary brands. The rest of the brands are part of our growing portfolio that will over time move into the primary brands bracket. We expect this to occur for our GroundUp and Rebalance brands over the next 12 to 18 months. Moving to Slide 17. The Club Lime brand is poised to become the largest non-franchised brand of health clubs in Australia shortly, with the rebranding of some recent acquisitions currently underway and the opening of several new locations scheduled for March and April 2022. This is a significant achievement, considering 2.5 years ago, the business operated primarily in the ACT. Becoming the largest non-franchised brand of health clubs in Australia opens up more opportunities and awareness of the brand in new and emerging markets. Our aim is not just to become the largest but to become the most recognized health club brand in the high-quality, mid-price point market, but also to be the most frequented facilities. In other words, we want our members to actually use our facilities, feel good about it and achieve great results. Our data shows us this builds the best form of customer loyalty we can ask for. Moving to Slide 18. GroundUp has continued to exceed all expectations in its first studio. Membership is now over 438 members, paying an average of just under $50 per week. The second GroundUp studio is scheduled to open in late March 2022, and we will have the third studio already secured and in planning. Viva sees the wellness market being targeted by GroundUp and our new Rebalance brand as a key driver over the next few years. The increase of boutique fitness options is expected to continue to grow and be the largest part of the industry moving forward. In essence, members want choice. And before the unique GroundUp membership was available, which allows you to add a health club or hiit studio into 1 membership, members who wanted to access all of these services had to have 2 or 3 different memberships with different brands, including paying multiple joining fees, for example, and direct debit each fortnight. The alternative was to hold a big box membership, but that doesn't provide the same level of boutique feel and uniqueness about it. In addition, the big box offering means members have to share a studio with thousands of other members instead of a boutique offering such as GroundUp, where there are 400-or-so like-minded members. Moving to Slide 19. Viva acquired the franchising -- franchise Rebalance Pilates & Yoga group mid-December last year. We acquired 8 studios at the time as well as the master franchise rights and intellectual property. Since then, Viva has converted the studio by Club Lime concept which was located in the ACT to a Rebalance studio, and that will become Studio #9. And that location is scheduled to open in March. We are preparing the business to start franchising Rebalance shortly, but we'll, at the same time, continue to open corporate-owned locations. At this stage, we expect to be in a position to have all the systems, processes, documentation and training in place to be able to offer territories for sale by the end of calendar year of 2022. The Rebalance concept does not offer the joint Health Club and hiit republic membership option that GroundUp does, and this allows it to be franchised more easily. In saying this, we are working on a site project we refer to as Viva Pass, which will allow members to gain access across all our brands and potentially other brands, with a special access pass and app. Stay tuned for details on this in the next few months. Moving to Slide 20. hiit republic team metrics continue to improve after slowing down during the last series of lockdowns when class numbers were restricted and members were reluctant to participate in closed group contact fitness activities. Total membership for the brand is just under 7,000. We now classify members as direct or indirect members. Direct members are those who sign up directly with a hiit republic location and may or may not add a Health Club option. In comparison, indirect members are those who sign up for our existing Health Club and GroundUp members who purchased the hiit republic add-on membership. These members remain primary -- primarily a member of their Health Club or GroundUp, but are now also included, but not double counted, as a hiit republic member. Moving to Slide 21. This will likely be the last update regarding FitnFast and Pinnacle as the brands are essentially fully upgraded and converted to Club Lime. I won't go into the detail of the 19 locations across both brands. we are now down to 2 locations requiring conversion and one of those location commences upgrade works in the next few weeks. Moving to Slide 22, Plus Fitness. We are extremely excited about the upcoming opportunities we have laid the foundations for in the Plus Fitness network. Whilst the network has not achieved any growth in the past 12 months, management has concentrated on building for the future. We have achieved this by remapping all of the Australian territories to identify gaps in new territories available for sale. Back-of-house operational changes with the original founders no longer working in the business and a new team taking day-to-day control under the management of our highly experienced Head of Franchising, Gordon Martin. Our Viva Labs team has made significant progress in preparing the moving of the Plus Fitness membership and direct debit systems over to the Viva systems on or before the contract expiry date later this calendar year. In addition, we have started to implement the new corporate branding and brand position. The first location with the new branding and club design opened this week in Carramar, New South Wales. And finally, I'm encouraged to report that engagement with our franchisee network has never been more positive, and the company has not received any formal proceedings following on from the franchisee dispute matters raised -- notified to the market last year. Slides 23 and 24 have some further details on the initiatives on the Plus Fitness side of the business that I won't go through today and are essentially self-explanatory. Moving to Slide 26, which is the trading update and outlook. As mentioned earlier in the presentation, Viva has built a strong pipeline, which now underpins the ongoing growth of the business. We have achieved this in the most difficult of times, growing by over 100 additional locations in the past 2.5 years. Corporate-owned operating locations as of today are 137 and are located in 4 key states. We expect, as highlighted in our bi-monthly report, to enter the West Australian market in the next 60 days by way of a series of acquisitions of existing Plus Fitness franchise locations. This will expand the corporate-owned locations into 5 states and territories within Australia. We have, in addition to 137 locations currently operating, a further 20 locations secured, of which 7 are currently in fit-out and are expected to open in March and April 2022. We expect to exceed 150 corporate-owned operating locations before the end of the current financial year, on our way to our target of 400 locations, as previously advised to the market. It is important to highlight that corporate-owned locations and corporate members return a higher revenue and yield to the business over our franchise members, where the majority of the membership fee goes to the franchisee. Therefore, whilst we have a strong focus on growing our Plus Fitness franchise network, the real growth in the business comes from corporate-owned locations and members. In addition, as we grow the franchise network, revenue generation will start to diversify. For example, we will see our Viva Labs team start to generate revenue as part of licensing our membership, access control, direct debit and other technologies to the Plus Fitness network. This is something that we have not seen as yet, but is a key driver of the business moving forward as its technology and systems we have developed and use every day are the best in the industry. Our join online, download our app and access our facilities technology with automatic identification verification and approval is unmatched anywhere in the world and will provide a significant advantage and differentiation to our Plus Fitness network, which targets the low-cost, low service segment of the market. Turning to Slide 27. Viva corporate-owned membership now sits at over 143,000 members. Noting that the 31 December 2021 membership has been reported at 132,000 members, this represents substantial growth over the first 7 weeks of this year. What is even more significant about this achievement is that the industry as a whole, including our counterparts in overseas markets, experienced a softer January, which is traditionally the New Year's resolution period. All we have seen is that the softer January has now pushed into February, with demand growing significantly in the current month, essentially bumping the demand from January to February. For the first time ever, we are reporting over 300,000 network members, in fact, over 310,000 network members, which is an outstanding achievement. Moving to Slide 28, which provides a picture of what we are looking at for the remainder of this financial year and for the next financial year. Half 2 FY '22 revenue is expected to be in the range of $54 million to $56 million, noting that half 1 revenue was $34 million. As mentioned in our announcement, this revenue range for 1 -- for 1/2 of the financial year exceeds the total revenue the business achieved in all of FY '20, and we're only just getting started. In terms of EBITDA margin, we are seeing an increase in the margin, brought back slightly from our preferred minimum of 20% due to the opening of a significant amount of locations in a short period of time, being 7 locations in the next 8 weeks. The EBITDA margin range for half 2 is expected between 15% and 17%. From a management perspective, our focus is on our exit run rate coming out of FY '22 and into FY '23. In that regard, we expect revenue to exceed $10 million for the month of June and EBITDA margin exceeding 20% for the month. This lays a very strong foundation for FY '23 even before taking into consideration delayed maturity of our FY '21 locations, which had opening momentum disrupted multiple times due to COVID and are now only starting to come into maturity. In addition, locations, which opened in half 2 FY '22, and not expected to start contributing EBITDA until FY '23. This ends our presentation. I'd like to reiterate my comments in the announcement that fitness and physical activity is now even more at the front of mind after sustained periods of lockdowns and isolation over the past 2 years for the community. The fitness sector now faces the challenge of reaching and engaging these new audiences that understand the importance of health and fitness, especially those who have been living an inactive lifestyle. The opportunities that this opens, especially for an operator such as Viva, which targets all segments of the market and various price points and services is significant. I've never been more confident in our strong product and service offering, our first member advantage as well as currently being the only consolidator in a highly fragmented health club market. We will continue to capitalize on these strengths moving forward. We would now like to open up for any questions.

[Operator Instructions] Your first question comes from Jack Lynch from Ord Minnett.

Just on the uptake in the hiit republic members. I've got about 35% here of the Club Lime coming to hiit republic. How should we be thinking about this over the next 12 to 18 months and the impact to that consolidated ARPU level?

Yes. So the -- we had a shift, and this is why we reported it separately now as direct and indirect members. It was more a management requiring the shift in terms of our Health Club staff were better to promote the upgrade, but they didn't want to promote the upgrade there probably because then they would lose a member at their club. So we changed the option to provide us as an add-on, and that's what we call indirect members. So at the moment, we're not really splitting the revenue. So if the revenue -- if the member joins a Health Club with a hiit republic add-on, that whole revenue sits at the Health Club side. But we're reporting the memberships separately, but not double counting them just for reference. So we're hoping to probably, as we move into more bi-monthly reports and stuff, show that as a better split, but it's a difficult one to sort of split because of the fixed price of the membership.

Okay. And maybe a second one just on the employee expenses. Obviously, they were fixed and a little bit higher on the half at about 37% of revenue. How should we think about this in the second half and moving forward on past that?

Yes. I think, Jack, the reason they're higher as a percentage of revenue is simply because revenue was down. And obviously, we made some cost savings through the 6 months on employee expenses when we're able to, unfortunately, have to stand down staff. But the revenue declines were more significant than the wage savings, and that's why you would see there's a higher percentage of revenue. What we see is a normalization of that coming across the next 6 months, such that, that percentage actually gets lower across revenue. And we'll probably see that from -- if you were to graph it, it would certainly go from the top left to bottom right on a chart. So yes, 37% is not indicative of the business for the first half.

Your next question comes from Nick McGarrigle from Barrenjoey.

Can you talk through the acquisition pipeline? You made some comments about Western Australia. Just really interested to know what you've got planned for the June run rate number.

We've got a few acquisitions lined up, but minimal in that June run rate number, basically, the WA location. So as we're entering the new territory in WA, we've got a, obviously, established infrastructure. So our aim was to secure somewhere between 5 and 10 locations. We believe we've secured approximately 7 locations, which will be Plus Fitness corporatizations, where we'll buy them out. We're hoping that all 7 of those we will acquire between now and end of the financial year. So that is included. Both sites range from anything from $300,000 EBITDA up to $500,000 EBITDA per site. So you can make your numbers based on that. But there's no other acquisitions other than those WA ones currently scheduled to be locked in.

So WA is at terms just waiting to be executed, but there's no other sort of unannounced or undefined acquisitions in that run rate. So if you can execute on things between now and then, that potentially improves that.

Correct.

And just in terms of funding between now and future acquisitions, obviously, a bit further cash burn in the last half year than you would have liked because of the ongoing challenges with membership, but how do you think about funding, particularly on the debt side? I presume you're not going to raise equity at these levels to fund future acquisitions.

Well, Nick, it's Kym here. As Harry just mentioned, the only acquisitions we've got on the radar at the moment are 7 sites in WA. We're comfortable that we can fund that out of existing debt facilities and cash that we've got on the balance sheet at the moment. And that includes, obviously, rolling out. I think -- I think we've got about 10 more to go. This half for this financial year. So that's all covered with existing cash balance and debt facilities.

Okay. And then maybe just a final one around the new franchising opportunities. I mean where do you see that proposition sitting against the GroundUp concept and other owned concepts? And when do you expect to launch franchise territory sales?

So we've engaged a dedicated franchise territory salesperson on the Plus side. That will also be responsible for the hiit republic and the Rebalance once they're ready to go. We want to get the concept right. So we bought Rebalance that was already in a franchise setup. However, the documentation, training manuals and things like that, went up to scratch. So we decided to sort of hold that back. We'll redevelop all the manuals and everything based on our experiences as owners and then start to sell territory. So the resources have already been engaged internally with new headcount to start preparing those businesses for franchise sales. And we've put in the presentation that we expect to start selling territories by the end of the calendar year, but we're hoping it's more likely in the first quarter of next financial year that we'll start to sell those territories.

Cool. And then just -- sorry, one last one because of [ ambiguity ]. 8,000 members added since December '21 up until today or yesterday. How many of those were acquired members? And how many organic?

It was actually 11,000 that we've added since then, Nick, and of that, about 7,700 were acquired. So just over 3,000 were organic growth.

Okay. So that comment in the presentation of greater than 8,000 since December, that's a bit outdated?

Yes, that's right. That's right.

So I guess, 11,000 is better than 8,000?

Yes. Usually. Yes. So we started at 132,000 at December, and we're currently sitting around about 143,000, so about 11,000 growth.

Your next question comes from Daniel Ireland from Petra Capital.

I'm just wondering on the new members that you've received, some of that's coming through from promotional activity. Are you seeing there a real uptick in members coming through that promotional activity? Or is that just natural members coming on to the [ cohort ] gyms?

Yes, we are seeing a significant uptake in the promotional activity, and that's why we've continued it. So in February, we've run 2 strong promotions, a 3-day sale, which was extended for 5 days. That saw over those 3,000 members sign up. And for the -- just closing off the month, we're running a 5-day sale. So for the last 5 days of the month, and that's seen significant sales, over 1,000 new sign-ups over the first 2 days of that promotion. So we are seeing come down. The promotion itself is 50% off your membership fees for the first -- the current promotion. 50% off your membership fees for the first 4 weeks. So they're still paying for their membership, as such, but just getting a discount and then moving to full membership rate. So we think that's a good promotion for us, helps to build the foundation, as I said, in my presentation that we're focusing on the run rate out of June, and this will assist with that.

And do you think that, moving forward, that you're going to continue with these kinds of promotions? Or are you sort of happy after February that you'll just charge the full application fees or membership fees?

We're actually going to be shifting our marketing to what we call internally the Netflix approach. So the Netflix approach is join online 14 days free. And that's essentially the only promotion we'd be running all-year round. So you can join directly or you can join via the 14-day trial. Maybe directly, you might get a cheaper rate. Otherwise, we're shifting to that just to limit the amount of promotions because the network is large enough now that we can just promote locations and brands. So that's the approach we're looking at. When we looked at different industries, we saw the Netflix approach on 100 million members across the world as a good option and no other operators doing that. So we're just shifting the back-end systems to manage that approach and move away from promotions. But we will still have flash sales, which worked really well for us, 3-day sales, long weekend, that sort of thing.

[Operator Instructions] There are no further questions at this time. Please continue, presenters.

Okay. Thank you, everyone, for dialing in and watching our webcast for our half year FY '22 results. Again, in our -- if you would like to have a one-on-one meeting, please reach out to Market Eye, and we can schedule that if you haven't already scheduled one, and thank you for your continued support.

This concludes today's conference call. Thank you for participating. You may now disconnect.