Vodafone Qatar P.Q.S.C. (VFQS) Earnings Call Transcript & Summary

Good afternoon, everyone, and welcome to Vodafone Qatar Q2 2024 Financial Results Investor Call. My name is Pauline Abi Saab from the Investor Relations team. On this session, we have Sheikh Hamad Bin Abdulla Jassim Al-Thani, our Chief Executive Officer; and Masroor Anjum, our Chief Financial Officer. We'll start the call with a presentation from our CEO on the key financial and operational performance highlights, followed by an update on the financial performance for the period ended 30 June 2024 by our CFO. As usual, after the presentation, we'll have a Q&A session where you can ask your questions by raising hands. Today's presentation is available on this webinar and also on Vodafone Qatar website under the Investor Relations section. Please note, this session is being recorded and also note the disclaimer on Slide #2. To begin, I now hand over to Sheikh Hamad.

Thank you, Pauline. Good afternoon. We are very happy to meet again. Good afternoon, all and welcome to Vodafone Qatar Investor Call. We are very happy to meet again and share with you our company progress. Would you go to Page #4, please? From H1 performance perspective, we are very pleased with the progress we are making as a company. As you can see, our revenue grew by 2.2% on a year-to-year basis, while our net profit growth is maintained well above 12% on year-to-year basis, thanks to the market rationalization and removal of expired discounts. On revenue market share, we showed also growth by 2.6% year-on-year, reaching 30.5% based on Q1 TTM, while our mobile subscriber base grew to 43.6% in Q1, that is approximately 2.9% year-on-year. A lot of the results are due to the focus on increasing and improving our network coverage quality, also to the diversification beyond mobility, which reached approximately 29% from the total service revenue. Other points I would like to share with you. We are well aware that the telecom services are under pressure worldwide. Cost pressure, customers demanding more for less, OTT pressure, where the OTT players are targeting our -- the relation -- or to own the relationship with the customers directly, yet demanding much higher quality of service that is required to deliver such a service of them. Therefore, our focus for the last period has been always to stay relevant to the customers and maintaining the relationship. We can share more information perhaps during the year-end investor calls. Also to diversify horizontally, mainly in the ICT, managed services and digital offering. Also, we have been paying big attention to market stabilization and rationalization as we have been always mentioning. We have been seeing big progress in prepaid, yet it is way below similar market regional -- similar regional benchmarks. Good signs and fixed services when it comes to pricing, especially that the offering, the consumer one, I mean, here in Qatar -- in Qatari market is unmatched regionally from the value and the quality. We have also been seeing some progress when it comes to overlapping offers, acquisition offers in the postpaid, which have previously played big role in increasing rotational churn and bringing the value down of postpaid. Of course, this is over the last few years. However, when it comes to the enterprise, unfortunately, enterprise offering are not seeing as good sign of stabilization as this. In fact, if you can see big driver of our increase in profitability and margins is actually due to the removal of expired discounts, which is the right thing to do. Also, we are legally obliged to do it and the rational thing to do. You can see and if you turn to Page #5, this is very clear from the indexed cumulative EBITDA growth. You can see Vodafone performance -- market performance versus the overall market cumulative, where we grew since 2018 Q1 about 182% compared to the market, which grew only by 4%. Page #6. Another thing which is very interesting, this is a very clear indication that our industry is under pressure. This is very clear from the Consumer Price Index published by the Qatari Planning and Statistics Authority in May 2024, which shows that our industry are the most impacted from a price deflation perspective compared to the rest of the industries. In fact, the prices are showing decrease by 12.7% on a year-to-year basis. I recommend you, please, to refer to this report because it has a lot of good insights, especially for our industry. Last page, just to share with you as usual, our progress in our network. Overall, we have spent approximately, if I'm not mistaken, Masroor, about a $1 billion over the last -- since 2018, an investment to both network, IT and modernization of our capability. And when it comes to site expansion, I believe this is a very clear sign that we are more than 2x since 2018, which also help improving our quality and helping us to target the high-value customers, which we're significantly under indexed, which is an opportunity for us as we are going further with this big improvement in our network and offering. With that said, I would hand over to my colleague, Masroor Anjum, our CFO, to go over the financials. Masroor, please?

Thank you very much, Hamad, and good afternoon, everyone. It's my pleasure today to welcome you all to the quarterly analyst call. Today, I'm pleased to share with you the progress that we have made during this quarter, first quarter -- second quarter of 2024, which also represents the H1 for the 2024 fiscal year, marked by continued growth in both in our top line and profitability despite challenging market conditions. As we begin our financial review, please turn your attention to Slide #9, where we will highlight some key aspects of our performance during this period. Our commitment to customer experience and value drove a strong financial performance with service revenue growing by 2.8%. Importantly, we registered growth across all our service revenue segments, including mobility, fixed and managed services. Our unwavering focus on cost optimization has been instrumental in driving our success. This strategic approach has allowed us to invest in our network, systems and capabilities, all while maintaining efficient expense management. As a result, we are pleased to report a record low OpEx intensity of 23.9% for the first half of 2024. This represents a remarkable 0.6 percentage point improvement versus last year. Our commitment to efficiency has translated into exceptional profitability growth. We achieved an EBITDA of QAR 672 million, representing a growth of 5.9% year-on-year. Additionally, our EBITDA margin reached 42.4%, reflecting a notable expansion of 1.5 percentage points. Our net profit for the period stands at QAR 293 million, representing yet another double-digit growth of 12.8%. And lastly, our strong financial position remains evident through our robust liquidity. Operating cash flow reached QAR 336 million in the first half, representing a significant 42.5% growth on an underlying basis. This accomplishment is a direct result of our effective collection strategies and successful working capital optimization initiatives. Let's turn our attention to Slide #10. This slide showcases our key financial performance metrics for the first half of 2024 compared to the similar period last year. Total revenue grew by QAR 34 million, representing 2.2% growth year-on-year. This growth was primarily driven by 2.8% increase in service revenue. All our service revenue segments have registered positive growth year-on-year and we will see the details in the following slides. Equipment revenue, however, is lower, mainly due to timing of projects revenue. On cost side, despite higher revenue and ongoing network expansion, expenses have remained stable, demonstrating continued success of our cost optimization program. With increased service revenue and optimized cost, our EBITDA has grew by an impressive 5.9% year-on-year, translating to a margin expansion of 1.5 percentage points to 42.4%. This strong performance translated into a very healthy net profit growth of 12.8%, reaching QAR 293 million. Now, taking a closer look at service revenue on Slide #11. As I mentioned before, all our service revenue segments have registered positive growth year-on-year. In postpaid segment, as mentioned by Hamad earlier, our efforts have been centered on upgrading our customer base and minimizing discounted offerings to existing customers. This strategy has led to a notable 1.8% improvement in our postpaid ARPU and an enhanced margin. However, this effort has led to consolidation and post to pre-movement, resulting in slight reduction in our postpaid base. This, along with the fact that in Q1 last year, we still had the impact of World Cup-related contracts, resulted in largely stable postpaid revenue performance year-on-year in H1 2024. Talking about prepaid revenue. Prepaid revenue has recorded a growth of 1.2% year-on-year after declining by close to 10% last year. We have been highlighting that mobility segment has been impacted by lower level of economic activity post World Cup, particularly the slowdown in the construction sector. In addition to that, aggressive market pricing across mobility segments impacted ARPUs as well. However, starting Q4 2023, we have seen noticeable reduction in market pricing aggression, particularly in the prepaid segment, whereby customers have been able to receive good value but at a reasonable price. As a result, prepaid ARPU has recorded a very impressive growth of 3% year-on-year. However, this shift has also led to market consolidation and the attrition of ultra-low value subscribers and overall reduction in duality of the prepaid market or mobility market. Overall, prepaid revenue has not only stabilized but has started to grow. Lastly, managed services, wholesale and fixed revenues are the primary service revenue growth drivers, registering an increase of 7.6% year-on-year. Wholesale business, including inbound roaming visitors revenue, recorded impressive growth, reflecting increase in the number of visitors and our commitment to expand our fixed network is paying off. We are adding new customers nationwide, which has led to a steady increase in our revenue. It's worth highlighting that consumer fixed broadband market has also seen a reduction in the intensity of discounted offerings at starting price points towards the end of Q2. This is expected to positively impact fixed ARPU and overall margins in the market. Overall, total service revenue increased 2.8% year-on-year. Now, turning our attention to Slide #12 and diving deeper into operational efficiency. The first graph showcases OpEx intensity, a key metric that tracks operating expenses as a percentage of total revenue. Even with significant growth in both our mobile and fixed network, we have made impressive strides, achieving a further reduction of 0.2 percentage points in OpEx intensity versus FY '23. This accomplishment highlights our unwavering commitment to doing more with less and our laser focus on cost optimization. The middle graph shows the EBITDA margin. Growth in service revenue, coupled with focus on cost optimization continue to drive margin expansion. We achieved a reported EBITDA margin of 42.4%, registering 1.1 percentage points improvement versus FY '23. Notably, the EBITDA margin, excluding the equipment business, shows a significant increase of 1.3 percentage points to reach 46.4% for the H1 of 2024. This positive shift, in addition to cost optimization, is also attributed to changes in our revenue mix, particularly stronger performance in the managed services, wholesale and fixed segments. The final graph showcases a stellar performance in our net profit margin. It has climbed another 1.1 percentage points versus 2023, reaching a new high of 18.5%. Now, let's turn to Slide #13. This slide talks about our financial performance metrics for Q2 only in comparison to the same period last year. Growth momentum that we saw during Q1 has continued in Q2 as well. Our service revenues increased by 3.2%, driven by growth across all our service revenue segments. Importantly, prepaid revenue has increased by 3.2% year-on-year during quarter 2, the dynamics of which we have already explained in the previous slide. While managed services, wholesale and fixed segment continued to drive primarily the growth in service revenue during Q2 as well. However, handsets and equipment revenue, which are lower margin segments, declined by QAR 18 million due to one-off nature of this business. We have few promising projects in the pipeline to catch up on this in the coming quarters. Expenses are lower by 3.5%, and this is mainly because of lower equipment costs corresponding to lower equipment revenue. In addition to that, our OpEx remains stable year-on-year, actually slightly declined and that is mainly because of our continuous focus on cost optimization program. Our OpEx intensity for the Q2 as well has declined by another 0.5 percentage point. With increased service revenue and optimized costs, our EBITDA grew by an impressive 6.4% in Q2, translating to the margin expansion of 2.4 percentage points to 42.9%, and this strong performance translated to robust net profit growth. We recorded a very healthy 13.1% growth in our net profit to reach QAR 143 million for the quarter. Turning our attention to Slide #14, and let's take a closer look at the CapEx and return on capital employed. Our CapEx for the period stands at QAR 98 million, representing an intensity of 6.2%. We maintain a steadfast commitment to expanding our fixed and mobile networks. This ongoing pursuit aims to deliver comprehensive coverage and leverage cutting-edge digital capabilities, ultimately resulting in superior customer experience. Our relentless focus on growth and profitability has yielded impressive results as evidenced by significant improvement in our return on capital employed. Compared to FY '23, our return on capital employed has increased by 0.7 percentage points on an annualized basis. This translates to a remarkable growth in returns over the past 4 years to 5 years. Coming to cash flow and net debt on Slide #15. As mentioned in the previous quarters, working capital management has been a major area of focus for us and this is due to a number of factors, including continued higher borrowing cost, the fact that we entered the year with higher CapEx payables and the increase in our dividend payout to 11% for the last year. The first chart represents operating cash flow, a key metric representing cash generated from operations after accounting for capital expenditure, taxes and lease payments. It reflects true amount of cash available for dividend, debt repayments and strategic investments. Our operating cash flow has experienced impressive growth of 42.5% on an underlying basis, excluding the impact of last year's World Cup and one-off collections. This achievement is testament to our company-wide initiatives focused on optimizing cash flows and working capital management. As a result, our net debt has reduced year-on-year by 28.6%, even with an increase in dividend payouts this year. And net debt-to-EBITDA ratio has improved from 0.49x to 0.34x, well below the financing covenant of 2.5x. Turning to statutory income statement. We have already covered the major year-on-year movements. Both consumer and enterprise and other revenue increased year-on-year. Decrease in financing costs reflects the impact of optimized borrowing that we have done during the year despite higher interest rates. And lastly, earnings per share has also increased in line with the net profit growth. So to sum up my presentation today on H1 financial results on Slide #17, let's look at the 5 years trend view of our key financial performance indicators. I'm not going to take a lot of time here. But just to summarize, our top line growth continues during H1 2024 despite market slowdown and pricing aggression we talked about earlier. Over the last 5 years, our top line has registered a very impressive compound annual growth rate of 9% in service revenue and 10.3% in total revenue, underscoring our ability to navigate challenges and sustain robust growth in our revenue. Importantly, while expenses have increased, they have consistently remained lower than the growth in our top line. This strategic balance has resulted in substantial profitability growth. EBITDA has seen an impressive CAGR of 14.6%, and net profit has soared with an extraordinary CAGR of 37.9%. These results underscore our strategic focus on sustainable growth, operational efficiency and prudent financial management. As we continue to navigate challenges and capitalize on opportunities, we remain committed to delivering value to our shareholders. Lastly, on full-year guidance on Slide #18. There are no changes to what we discussed in Q1. We are tracking well to deliver on our guidance. To summarize this, management expects top line to continue with impressive margin expansion of up to 1 percentage point, resulting in yet another strong EPS growth of 8% to 12%. At the same time, CapEx intensity is expected to reduce and remain between 12% to 14% for the year 2024. That's all from my side. As usual the balance sheet, income statement, subscribers and ARPU details are in the appendix. This concludes my review. And now back to Pauline.

[Operator Instructions] The first question is from Lee Beswick.

Can you hear me?

Yes. Please proceed.

Okay. So I hope you can hear me. Two questions. One just on the service revenue. Can you just tell us how much of the service revenue is roaming? What percentage of that is roaming? And the second question is just on the dividends. Given your cash flow is up, has been greater than your earnings for many years now, do you think your payout ratio is still too low where it is today at 80%, 90%? Can't you just raise it straight to 100%?

Okay. First of all, regarding your second question. So, dividend payout ratio is around 85%, 86% as you rightly mentioned. And this is mainly because there are some mandatory capital allocations that we have to do from the net profit towards legal reserves, and there is another reserve that is social and sports fund that we have to do. If we take out that impact, I think it's more than 95% or close to 100%, I would say. We can share the exact calculation. Regarding your question number one, it's very difficult to chalk -- to take out the roaming revenue entirely because a lot of our roaming propositions are part of the postpaid bundles that we do. So, there would be a subjective allocation if you want to do a perfect carve out of the roaming revenue. What I can say is that over the last couple of years specifically, we have seen good improvement in our roaming revenue, both across the visitor roaming revenue as well as the roaming revenue that we are generating from our own customers, that outbound roaming revenue.

And is it possible to say which is bigger, the inbound or the outbound roaming revenue?

So, I would say, definitely outbound roaming revenue is higher.

Second question from Nishit Lakhotia.

I have a couple of questions. First, on the overall macro environment, given that you mentioned that there has been some low level of economic activity and construction, so how do you see the population dynamics? Are you seeing less population than what it was before, or the growth has stagnated? Any color on that front in terms of your subscriber numbers? How is it moving? So if you can just share something on that. And if I can understand properly, it seems like the competition is now less than what it was maybe in December. So, competition is abating. So, that is helping you. So that's the first question. Second, on the further headroom for cost optimization, because that has been one of the key drivers in a market where the revenue growth is not very great, how much more do you see -- there is a headroom for cost optimization from levels that you've already achieved? And third, the biggest driver for the revenue is the segment; managed services, wholesale and fixed. Would you be open to breaking it down because you club it all together? So how do we dissect on which segment has done how in between these 3 factors, given that this is one of your key narratives in terms of the growth in revenues?

Thank you for your questions. We believe that from a population perspective, from what we see with people coming into the country for many of the projects, we believe that the population will stay similar to this year or to the last year, which I believe it's healthy for the size of the company, perhaps with a slight increase as the other -- many projects, government-led project has been already kicked off. Some example that mainly driven by the oil and gas, also some hospitality and/entertainment project has been kicked off, such as the one that has been announced just a few weeks ago, which is Simaisma project. We believe those projects will energize the economy, will retrigger construction, will bring more, let's say, service companies to start working again with a decent level of activities. And this definitely will drive the number of subscriptions and mainly the enterprise business, which we believe is going to be best benefiting from this. As you know that many projects actually was put on -- especially construction was put on hold just 6 months or 7 months before the World Cup because they don't want many constructions to be around the country. Now they just kicked it off. And I believe we start seeing a lot of new cities or developments is being completed as the time passes. You mentioned something about the cost optimization. This program has been now running for almost 7 years, and it's in our DNA. It's not about cutting the cost. It's about optimizing the cost. We are using smart CapEx when it comes to CapEx, which is definitely impacting our depreciation. And we are using a lot of models that we have been automating it to help us to find the right, let's say, economic unit of each of the products, not only optimizing the suppliers' cost that we are receiving. Also, we are employing automation and started employing -- really employing artificial intelligence into the business. I believe now it's becoming part of our DNA. There is an annual target that we review it on a monthly basis, especially that our market share has grown. This give us more, let's say, leverage to go and negotiate a bigger and better deals for us. The recent one, for example, when it comes to roaming, we have bigger scale now. We have bigger demands for roaming. So this help us to manage our cost down when it comes to roaming. Yes, this is just one example. So, we are also focusing on power and sustainability. So, we have big projects to move a lot of our sites to either the grid or actually to solar power. And we have a target -- annual target that we are following, which definitely results into reduction of our cost. The last thing you mentioned is about giving more insights. Yes, we hear you. We have received the same information from a lot of the investors and shareholders. We are planning to review what we need to disclose in a meaningful way to the investors and we are working on it. It's a work in progress. And hopefully in the next, let's say -- I wouldn't say in the next investor calls, but hopefully by the beginning of next year, we'll be able to show you more details when it comes to the breakdown of the other revenues.

Yes. Just one thing on the competitive environment, given that you let go of certain discounts and so the competition is now much lesser than what it was, say, 6 months back. So is that correct to understand the dynamics?

See, I would say, just 1 year or 4 years ago, we started seeing too much acquisition cost -- acquisition offers, and an acquisition offer that overlaps. So, this encouraged the customers to start jumping from an offer to another offer while maintaining either the same benefit or an extra benefit. And this actually, basically, we believe it's created the habit of jumping between operators to maintain the same discounts or offers, which sometimes not more discount, it's more value. So, this increased the rotational churn. And with the rotational churns, come the acquisition cost, generous offers that is being offered at a very much less price. And I believe if someone goes and do analysis when it comes to the mobile offering -- mobility offering in Qatar, including the value that you are giving, it's way more generous comparing to any market in the region. So it's very, very generous. We would like to keep it generous. We would like to lead the region and even perhaps lead the world. But definitely, we would like to have the right cost structure. We are trying to optimize the cost, but definitely getting away from the healthy -- getting into a healthy, let's say, acquisition offers will definitely help. The other thing, which you mentioned is that by -- we lost maybe some of our customers during the H1 because we removed people from the discount that we have been doing this practice for some time. But the benefits that we got into our financials is way more than the revenue, that small revenue that we have lost. We are trying to move from price and value to quality and customer satisfaction. I believe this is the focus that we are trying to move in. Customers moving between or jumping between operators, especially the mid and low value, it's not a sustainable business. It's increasing our call center, or our care or contact center calls. It has put more pressure on our retail for onboarding or porting out customers. I believe, as we are going toward more digital acquisition or more toward the digital sales, I believe we need to focus more on the customer satisfaction rather than just -- and customer loyalty, more than just targeting the offers and starting a price -- unnecessarily price war.

We'll take another question from [ Fahad Al-Hammadi ]

Firstly, congratulations on the results. I just have one question. I just would like to know what is the latest update in regard to the anticipated 15% corporate tax rate? That's it from my side.

You are talking about the global minimum tax, yes?

Yes.

As of today, we are not impacted as we don't have any presence outside. This is what I can share with you. However, we have already crossed the -- you are right, we have crossed the [ QAR 3 billion ], which is approximately [ EUR 750 million ], which means that if we open anything outside, it will be -- we will be impacted. However, we are working very closely with the authority to find the right, let's say, resolution for this. But as of today, we are not impacted.

The other question will be from [ Ashish Agarwal ].

Am I audible?

Ashish, yes, we can hear you. Please go ahead.

Okay. All right. And I only have two questions from my side because the presentation was really good and it answered all my questions. Do you have any update on your interim dividend policy? Are you going to give an interim dividend? That's my first question. And my second question is, I see that your sale of equipment and related revenues has declined and you mentioned that it is because of the timing of projects. So, I mean, is it possible for you to offer us a run rate in terms of what should we look for the full year? That's my two questions.

When it comes to the interim dividend, we have it already in our articles. However, it's under the power of the Board of Directors. And once the Board of Directors take a decision, we will definitely come back and inform you through the right channels. For the second question, I refer to you, Masroor, please?

Okay. Regarding the equipment revenue, as I've mentioned during the call as well, it has reduced year-on-year, mainly because of the timing impact. So we need to understand, there are two major parts of this revenue. One is the handsets revenue, which is primarily the iPhones and varies in line with the launch period of iPhone, and it goes down towards the launch of the next version of the iPhone. So as you can understand, we are getting towards the next cycle of the launch of iPhone. So the revenue goes down in this quarter. And the second major impact is the equipment revenue that we get from our projects, the managed services projects, large projects that we do. And that as well is something, which is not a recurring revenue. As we have mentioned previously in many calls as part of our diversification agenda, we're getting into this segment more and more and we are getting new customers. We were not able to recognize revenue related to those projects in this quarter, mainly because they were not meeting the revenue recognition criteria. But as we mentioned, we expect there are some good projects in the pipeline. We expect this reduction in the revenue to be cashed up in the remaining part of the year. It's very difficult to give a clear run rate on this. But from guidance perspective, we have mentioned that overall we expect the revenue to grow year-on-year for the full year.

Another question from [ Mohit Choudhary ].

I hope I'm audible.

Yes. We can hear you well. Please proceed.

I just have one question. You mentioned that the focus has shifted to more of quality customers. So in the mobility, we see the subscribers are down 2% sequentially this quarter. So, do you see any further sort of -- do you see any scope for any reduction in the subscriber base as the focus is now shifting to more of quality and...

Mohit, we couldn't hear you well. We couldn't hear you well. Please, can you repeat slowly and please higher your voice little bit. Sorry.

Okay. Sure. I'll go again. You mentioned that the focus has now shifted to the quality customers and we see a 2% sequential reduction in the total mobility subscribers. So, is there any further scope of reduction here? Or how do you see the subscriber base going forward?

Would you please clarify? You mentioned the focus shift to experience or -- but you mentioned something else, I cannot get.

I think you had mentioned previously in one of the questions that you're focusing more on the value and quality customers. So, I'm just curious about that part, that the subscriber base has gone down 2% this quarter versus the previous quarter.

Okay. I got it. Sorry, maybe it wasn't as clear. Today, as the aggressive offers in the market and there was always an overlapping offer, so customers used to jump between offers, even within the operator itself or between operators. This has driven the market to be more of value seekers because they will always think that there is a better offer. Even if they have, like, let's say, an example, 30% discount with double the allowances on a mobile offer, they know that once it's expired in 3 months and instead of going back to the rack rate, they can find another offer within the same operator or from a different operator. And this encouraged the rotational churn between operators. We believe that this is not the right or the healthy, let's say, approach for the industry for many reasons. We would like to continue focus on giving the country the best and ultimate experience and be leading when it comes to the technologies, as we have been during the last decade or so. So, we would like to keep this. And if this behavior continues, we will never be able to continue with bringing the best of the quality and maintaining that level of quality and experience. So as the offers in the market has been rationalizing more and more, we don't see as many overlapping offers. Whenever customers have reached the end of the offer, they usually go to the rack rate. Some customers might continue and will continue with the rack rate, which is with a higher ARPU or someone will decide to leave. So, some people have decided to leave and they are small compared to what we have. Let me check if I have the percentage. One minute. So I believe the number, the percentage is less than 10% who decided to leave out of those guys. But the outcome or the value of the -- or the ARPU has increased significantly. So, less than 10% has decided to leave, even much lower, but we don't have the exact number with us now. I was going to say 7% or 6%, but let's stick with 10%, less than 10%. So, they left us, yes, but the ARPU that we have lost has been compensated significantly by higher revenue from other, let's say, customers. And we have been doing this now for the last, let's say, 9 months or 7 months in a very strict way. And I believe this is the right thing to do for the industry, especially after I have highlighted in Page 6. I think if you refer to the statistics, we are the most impacted or deflated industry in the country. I hope this answered. Yes. And instead of focusing on the pricing, we started to focus on giving more a better experience or a different value that will change the discussion from quality, from an experience rather than just jumping between operators looking after whoever offer best price.

Yes. Just one more on it. So it will be safe to assume that the competition has gone down a bit. So the offers has also lessened. So the subscriber base that we see right now for Q2, is it like a good base to assume or is there any further scope for any reduction there?

I believe the number is very, very less because I'm not talking about the entire base, which has actually happened. Usually, it's a small base, that is, as they approach the expiry of the acquisition offer, then later only for this specific base, I'm talking about, less than 10%. We're not talking about the entire base. No, no, no. I'm talking about something very, very small. But it's a good behavior for the business. Would you repeat that?

Thank you, Mohit. [Operator Instructions] As there are no further questions, I would like to thank you all for joining today's call. We'll keep you updated on all our upcoming investors call. Please feel free to contact the Investor Relations team if you need any further information or visit our IR section on Vodafone Qatar website. Thank you.