Codere Online Luxembourg, S.A.

Good afternoon. My name is Rob and I will be your conference operator today. At this time, I'd like to welcome everyone to the Coderre Online first quarter 2022 financial results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, again press star one. Thank you. Guillermo Lancha, Director of Investor Relations. You may begin your conference. Guillermo Lancha, Director of Investor Relations. You may begin your conference.

Thanks, operator, and welcome everyone to Coderre Online's earnings call for the first quarter of 2022. As in our prior call, today you will hear from our CEO, Moshe Adre, and CFO, Oscar Iglesias. Before turning the call over to Oscar, I'd like to remind everyone that during this call, we will be referring to a presentation we uploaded to our website earlier today. We encourage everyone to read the disclaimer section, particularly the points around forward-looking statements, non-IFRS financial measures, and preliminary information. During today's call, we will be referring to non-GAAP financial metrics, such as net gain in revenue or adjusted BPA, for which you can find the conciliations in the appendix section of the presentation. Finally, please note that a replay and transcript of this call will be available later today on our website at goderionline.com and that if you haven't done so already, we encourage you to sign up to our investor email alerts. Oscar, over to you.

Thanks, Guillermo, and good afternoon to everyone joining the call. This is our first full quarter of operating results as a publicly traded company, and we look forward to giving you an update on business trends, to add to the information that we have provided in our first annual report, which was filed on Form 20F on April 29th, and which is available on our website. Before moving into details regarding the quarter, just wanted to remind you that Côte d'Ivoire Online is Luxembourg-based, and as a European company, our accounting information is prepared under IFRS accounting standards, and our functional currency is the Euro. As such, throughout this presentation, All monetary figures will be in Euro unless expressed otherwise. Also, based on the feedback that we have received from a number of you following our fourth quarter earnings call, in today's presentation, we are providing both consolidated income statements and country-level net gaming revenue and adjusted EBITDA on a quarterly basis throughout 2020 and 2021, in addition to, of course, first quarter 2022 figures. We hope that this will be helpful to those of you that have either built or are considering building a financial model, but also as further context for everyone that is tracking the performance of our business. Going forward, we will be moving this information to the Annex and focusing more on current quarter and year-to-date results in each case versus applicable prior year periods. With that, I will go ahead and pass the call on to Moshe. Moshe, you may be on mute. Hello? Yep, we hear you now. Thanks.

Sorry. Thanks, Oscar, and thanks, everyone, for joining the call. I'm sorry for the delay. For those of you who are new to the company, I would like to provide a quick overview of Cordero Online. I joined the company in late 2018 when it was a wholly-owned subsidiary of Cordero Group, which is a Madrid-based gaming operator with over 30 years of retail gaming operating experience in Spain, Italy, and Latin America. This past November 30th, we completed a merger with the NASDAQ listed spec, which resulted in not only Cordero Online being a U.S. listed business, but also in our raising over $100 million to finance the substantial opportunity we have ahead to grow the business, in particular throughout Latin America. Moving to the highlights, of our first quarter 2022, we delivered strong operating results in the period with net gaming revenue up 24% to nearly 26 million euros and 15% versus Q4 2021. This growth was driven by a significant increase in active customer and in Mexico with a monthly spend per active at above 100 euro. In terms of customer acquisitions, we continue to see strong volume Our first-time deposit increased almost 50% to €78,000 at an average cost of around €200. Considering that this is the first full quarter where we have had the benefits of a higher level of investment, we are pleased with the performance and confidence that we are on track to meet our full-year guidance as net gaming revenue growth accelerates. over the next few quarters. This year we also have a World Cup, which should provide an additional athlete for fourth quarter results. We are quite encouraged by the long-term growth prospects of our markets, not only based on what we see on the ground, but also based on other industry sources that we have received upwards the growth forecast for a certain market. For example, in Mexico and Argentina, we are now expecting the total addressable market size of 20-25% higher than our previous projections. and we believe that we are well positioned to capture our share of that growth. Finally, we have put in place a long-term incentive plan for key members of the team, which was approved by the shareholders on March 3rd. This is a five-year plan that includes restricted share, stock option, and deferred payment rights, which will not only further align senior management and director's interest for those with their own line and its shareholders, but also strengthen the retention and motivation of senior management and directors in the long-term. With that, I will turn it back to Oscar. Oscar?

Thanks, Moshe. Turning to the financial results for the full year, we see that the 24% growth in consolidated net gaming revenue was driven primarily by an impressive 56% growth in Mexico, and that Spain has recovered to levels we had in the first quarter of 2021, prior to the regulatory restrictions that came into effect in May of last year. As you know, these restrictions impose significant limitations on advertising, sponsorships, and promotional activities. So these operating results are not only very encouraging, but the start of what we believe is a positive trend for our Spanish business. Colombia also performed well in the quarter, with an 80% increase in net gaming revenues, and our remaining markets also contributed to the positive results in the quarter. In regards to EBITDA performance by country, and as discussed in our prior earnings call, we had a significant uptick in negative EBITDA on the quarter, primarily due to higher levels of marketing investment in furtherance of our accelerated growth throughout this business. The exception was, as has been the case for some time, Spain, which generated 2.5 million euros of EBITDA on the period, a level that has sustained for the last few quarters despite the regulatory hurdles which prevented us from deploying our promotional tools in this market. We believe there may be a read across here for our Latin American operations where we would be seeking to replicate this path to profitability whereby promotional activity can eventually be curtailed once we have achieved meaningful scale and are otherwise positioned as one of the leading brands and operators in the markets in which we compete. The Spain example also highlights the importance of our omnichannel approach, as having a retail presence allows you to reach the customers in a way pure online players cannot, especially when marketing and promotional activity is restricted. Adjusted EBITDA in the first quarter decreased to negative 13 million, in line with our expectations, primarily due to this increased level of marketing investment and to a lesser extent, higher platform content, technology and personnel expenses incurred in the period. But we believe that these higher levels of marketing and operational investment are laying the foundation for the significant growth we are targeting over the coming years. We understand that the recent sell off in certain technology and other high growth stocks is partially driven by concerns about the path to profitability and cash burn. But please remember that a significant portion of our overall marketing spend is discretional or otherwise uncommitted. As such, we can increase, decrease, or if needed, discontinue marketing spend at any point in time based on what we're seeing across our markets. Also, the upfront investment we make to acquire customers in any given period, what we typically refer to as a cohort, is generally recovered and generates a return over the lifetime of those customers. Internally, we define lifetime as five years following acquisition and would be seeking a relationship between lifetime value to acquisition costs of about three to five times, depending, of course, where we are in the growth trajectory in any given market and the applicable unit economics within that market. Turning to the Spanish operating and financial metrics, we see the recovery in net gaming revenue in the first quarter of 2022 to about the same level we had in the prior year quarter, despite the lower level of active customers as a result of the promotional restrictions in place. On an LTM basis, we are flat in revenue levels, but with 6% more average monthly actives in the period due to the impact of COVID on sports activity in the prior LTM period. In Mexico, meanwhile, net gaming revenues reached 10 million euros in the quarter, an increase of 56% year-on-year and 27% sequentially. This strong performance is supported by our omnichannel approach, given the large retail presence GoVita Group has in the country, with nearly 90 gaming halls, and also by the fact that in Mexico, 100% of the retail activity is tracked as required by regulation, allowing for more effective promotions and overall customer management across channels. In Colombia, meanwhile, we have had strong growth in the quarter in terms of both net gaming revenue and actives. But while this continues to be a relatively small business, we are making a number of adjustments that we believe will allow us to continue growing the business and improving our return on marketing investment. Turning to the balance sheet, as of March 31st, we had over $100 million available for deployment. as the negative 13 million in EBITDA and adjusted EBITDA in the period was more than offset by a 12 million decrease in networking capital, that is a positive cash impact of 12 million, and a positive 1.4 million foreign exchange impact on the proceeds from the business combination, which we hold in dollars, as a result of the strengthening of the dollar throughout the quarter. Overall, the networking capital position of the business decreased to negative $28 million by quarter's end, primarily as a result of a $10 million increase in accounts payable, which was due to both the delay in the invoicing from certain of our Mexican media partners, but also delay in payment of certain services provided by Coletti Group. We expect to get caught up in these payments, which amount to about $9 million, throughout the second quarter, and that the networking capital position of the company will be back to a more normalized position by quarter's end. Pro forma for the payment of these $9 million, our cash position as of March 31st would have been around $90 million expressed in US dollar terms. On page 16, you have further details regarding the cash flow statement and the variation in networking capital in the quarter, both of which we were providing for the first time this quarter. That's all from my end. For those of you who might be interested, we'll be attending Stifel's investor conference in Boston. We'll be there on June 8th, and we'll also be available for meetings in New York the following day, June 9th. So feel free to reach out if you'd like to meet in person. I will now hand it back over to Moshe for closing remarks.

Thanks, Oscar. I just want to highlight that the first quarter results were in line with our expectations. a trend that continued throughout the month of April, and we believe that we are on track to meet our commitment to the investor for the year. We continue to believe that the opportunity we have in the front of us is amazing, and we are more focused than ever on executing our plan. We look forward to speak with you again in late August when we will publish a second quarter result and would like to wish everyone a safe, healthy, and happy summer. With that said, I will return back to the operator to open up the call for Q&A. Thank you, everybody.

At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. Your first question comes from the line of Jeff Stanchel from Stiefel. Your line is open.

Hi, good morning, Moshe Oscar. Thanks for taking the questions. First off, I wanted to drill into the returns on your ongoing marketing plan. It looks like CPAs were up about 30% quarter-on-quarter, now trending about 200 per customer. Is this kind of the right level in the near term? Should we expect it to keep climbing a bit as you get on your marketing plan? And then what are you seeing with respect to the LTV on this CAC? I think when you first went public, you talked to a four-times target. Is that consistent with what you're seeing? Excellent.

Hi, Jeff. Oscar, I will take it. So yeah, you're right, Jeff. I mean, we see an increase in the CPA, but that was expected. I mean, as you increase the marketing spend and you acquire more customers, the blended costs of the customer, the cost per customer, uh is increased but at the same time we are modifying and we optimizing our crm activity so i think that overall what we are doing we are stabilizing the formula between the amount of customers that we need to acquire in order to uh to accommodate the growth uh the same time uh to uh to optimize The bonuses, the VAT level, so we receive the same return that we expected in the business plan. So all in all, we think that we're in the right shape here. So we see that the value is growth and the CPA is growth. And if we see that there's some decrease in the lifetime value, we will adjust it on the CPA level as well. So we're not flying on the fly. That's what we're doing.

Okay, helpful. Thank you. And then on this note, I think in the deck you reiterated your goal to be EBITDA positive by 2024. I'm just curious, how should we think about the timing for peak EBITDA losses, given your plan? I'm assuming sometime in 2022, but just kind of what quarter or how should we think about the cadence there?

Yeah, it's a good question, Jeff. I think that this is a steady build. I think the peak EBITDA loss will be something you see in the current year period, so in 2022, and then the business will start tracking as we start having the cumulative effects. of that marketing investment from all the incremental cohorts that are coming into the mix here. You'll start seeing that moving in the direction of a 2024, both EBITDA positive and cash flow positive. So 2022 would be from a full year standpoint, the trough year in terms of the low point on EBITDA.

Understood. Thanks, Oscar. And then just in Spain, it looks like you're adapting really well to the regulatory restrictions that were put in place. Can you just talk about some of the things in more detail that you're doing to navigate these headwinds? And I would assume take market share. It sounds like you're leaning even further into the omni-channel advantage or just anything else that you're kind of executing just to adapt to some of these changes around marketing. Thanks.

Yeah, again, so, Oscar, I will take it. Yeah, it's challenging. I mean, in markets like Spain and Italy, when we're facing like a full ban of advertising, obviously our ability to acquire players is quite limited in terms of the advertising spend. But I think saying that, it's a matter of branding. And Cordero is very well positioned as a brand in Spain, both because of the retail presence We have hundreds of shops, which out of them are at least, I think, and Oscar can correct me, around 60 or more are branded as Coderas-owned shops. So that is an omni-channel strategy. It's a very strong position. At the same time, we see some reduction in marketing spend from our competitors. So just by that, we are gaining some market share. And at the same time as any other markets, we invest quite heavily on the product side, to add more content to add more sports event to optimize the funnel of the player experience and that by itself it increase the player value as well so i think that if you combine everything together by having a strong branding position on the back of the real Madrid sponsorship that we had for years The retail, the omni-channel strategy, the product, the CRM, and the long-term engagement with the players, I think that we'll see increase. And anyhow, the expectation or target in Spain is to increase on a single digit year by year, so I think that we align with that plan.

Jeff, I would also add that just on the Real Madrid front, that the sponsorship is still in effect, and even though we can't utilize it the same way we could previously, pre-marketing and promotional restrictions, that we still can leverage that sponsorship for hospitality and other things that are useful to us in furtherance of our business, especially with some of our higher-end customers. So that's another point that's a little bit differential, I think.

Okay, interesting. That's helpful. Thank you. And then, you know, just on Brazil, we have heard some news flow since the last time we spoke at Q4 earnings. Can you just talk about what you're hearing here, you know, in terms of timing and, you know, any details on structure? And then just how should we handicap the odds that, you know, you think this could get passed?

Yeah. Well, Shane, do you want me to start? And then you can jump in in terms of assessing kind of the... Okay. So, Jeff, as everyone knows, there's been some recent legislative developments, specifically on the sports betting front in Brazil. We had understood that this legislation was going to be taken to the president of Brazil for his signature on May 10th, but are not aware that this has actually taken place. We understand that this contemplates an unlimited number of licenses, but it would be a single license for sports betting in both the retail and online channels. Five-year term, the upfront license acquisition cost of a little in Euro terms, it's 4 million euros. I think it's like 22 million Brazilian reais. The gaming tax rate, It seemingly will be based on similar to most other regulated markets based on when and not as initially contemplated amounts wagered, which is good news. And also they're contemplating a window for existing unregulated operators to begin complying within the new regulatory framework. There's also some other things here about a possible – I think some people have referred to it as a sandbox or a pilot program where they may be selecting certain operators to – to get started with, to start establishing what I imagine is the detailed regulatory framework that will apply going forward to all license holders. In terms of what we're doing, we're obviously evaluating options, including, you know, one or more local partnerships, or obviously, if GoDaddy Group, our controlling majority-owned shareholder, moves forward with retail sports betting, obviously, we would be interested in a coordinated omnichannel approach. um a go-it-alone strategy i think we would have to get a hard think on that it's not not something that's off the table uh but maybe moshe can can can chime in with with his view and what his expectations are for the market yeah so obviously brazil it's um it's one of the biggest marketing regulate will become one of the biggest uh regulated market in the world and um uh the third in in latin america maybe the biggest one in latin america

So we will need to be there in a certain point. I mean, as being like Latin American operators and our aim to become the biggest one overall on the continent. The way to do it, it's very careful. I mean, we have to do it very carefully because the size of the market and the fact that it's a different language than the Spanish that we're using in any other jurisdiction has to be well modified, both in terms of the product, but both in terms of the approach to the market. I would say that it's most likely that during 2022, We will not start any actual operational activity in Brazil. We are more aiming to 2023. We will start, obviously, by preparing the operational activity and the product itself. And then, as Oscar mentioned, our preferable route is to go through a partnership, local partnership. There are several options that we are checking right now, which I think that it's too early to decide.

Understood. That was a lot of detail. Thank you for that. Oh, sorry. You broke up a little bit. Feel free. Can you hear me?

Yes, you can.

Sorry. So I think that at the beginning of next year, we'll start with a slow marketing, with a slow marketing spend. As I said, it's a big market, expensive market. We'll do it very carefully. And we are very committed to our shareholder and to our business plan to to stick to the six core market that we're operating now. So we are focusing on that. We will look on the side what's happening in Brazil. From my experience, the same we've seen in other big markets like North American in the past. Those that rushed to the market and stopped spending millions on marketing didn't have a lot of chance to succeed. So we started very carefully, preferable to a local partner with a good product, with a good operational team on ground, and then we'll take it from there.

Perfect. That's super helpful. One last housekeeping one from me. You know, you reiterated your three-year net gaining revenue targets. Just, you know, a reminder there, do you need any new markets to open up to hit those targets or are those predicated on?

No, it's a market plan only, Jeff. It's just the existing markets that we're in.

Perfect. That's all for me. Thank you all for all the colors.

Great. Thanks for the questions, Jeff.

And your next question comes from the line of Michael Kuczynski from Noble Capital Markets. Your line is open.

Yes. I was wondering if – thanks for the additional financial metrics, by the way. I was wondering, can you talk a little bit about your cash burn and what your outlook is just for the upcoming quarter? And I have several other questions here.

Hi, Michael Kuczynski. Yeah. Hi, Mike. We've given full year guidance on the net gaming revenue standpoint. We're not yet in a position to give quarterly expectations either on net gaming revenue or EBITDA. But let us give a think if in subsequent quarters that is something that we want to incorporate and then potentially include in our Q2 call. But right now we're not giving any quarterly guidance in terms of EBITDA or cash burn.

Yeah, it just kind of goes to the question about the cadence of the cash burn in upcoming quarters. I appreciate that. And then the other question is, can you talk a little bit about the competition for customer acquisition? At least, you know, here in the States, the companies are obviously spending significantly. You mentioned this, Moshe, about, you know, how the spend has been. And at least in the States, there's been a shakeout among some of the players that have exited online sports betting or at least significantly cut back on marketing spend because, as you mentioned, capital markets have kind of closed for some of the smaller players. Can you talk about the trend line in terms of cost of acquisition and your thoughts about the trajectory of those costs, of the increase to a point in some cases where you would necessarily want to cut back on marketing spend just because of the return that is expected? And have you seen competitors exiting any of your markets or coming back on marketing?

Hi, Mike. So, yes. So, it depends, obviously, on the market. So, in Spain, we're quite consistent with our CPA level. And we see some growth from big international non-local brands operators, like William Hill, for instance, that we know that decreased a bit around spending in Spain and other big operators, a bit of Bet365. um so in spain we're quite aligned with our uh with our spend uh we see that uh we we keep as i as i mentioned in the in the previous discussion that we see that return on the investment and um the ratio is study and we don't see any big turbulence in terms of uh new uh new competitors entering to the market in mexico and colombia it's a bit different and then i will touch a bit about panama and argentina that was the market that we are operating In Mexico, we adjusted, as you saw in the presentation, we adjusted the time for Mexico, and now we understand that the market, based on the last publication of our competitors, and mainly Playtech and Bet365, that the market is bigger than we envisioned. And so we see that and we feel quite comfortable with our expectation, with our plan. There's a lot, a lot of room to grow. Although there are some small and mid-sized competitors entering to the market, we don't foresee any real competition for us. It's a very complicated market. It's both in terms of the regulatory, both in terms of the processing, the payment, cash in, cash out for the players, AML, KYC. So we feel quite comfortable that us as local operators with a very strong omni-channel approach we can deliver our plan. We don't see any, I would say, disturbance from the competition side in Mexico. On the opposite, we're quite surprised that we managed to not just acquire the amount of players that we had in the plan, but also we can grow with the same amount of CPA and with the same ratio of lifetime value and to increase quite dramatically the spend in Mexico on the marketing side. That's not the case in Colombia. In Colombia, the market is much more challenging We see that the return on the investment and the clear value is not built up. It's something that all the sector is suffering from, not just us, not just Cordera. And there what we're doing, we're adjusting both our marketing spend, but also some modification in the product side that will allow us to monitor more closely some of the fraudulent account activity that are in the market that we know that everybody is suffering from. uh and we see that uh um our uh voice of share in uh in colombia is getting a bit higher because we give the same amount of uh of activity while the competitors were growing from this market so um we we expect think that uh that would be the trend continuing colombia because it's uh it's the first i would say It's the second year after the COVID that there's a lot of competitors that are trying to go for this market, including Rushbet, the North African operator that entered the market. And everybody now is trying to see how we can build the player value. In the city of Buenos Aires, when we just started, We believe that, again, based on our local omni-channel and the retail experience, that we'll not suffer from any competition in the city of Buenos Aires, or at least the competition that we'll have with those that obtain the license will not disturb our growth as planned, and the same is in Panama. So just to sum it up, in Mexico, we feel very comfortable about our ability to grow without any disturbance from any competition. And if there is competition and there's a new comer to the market, we don't see that that will anyhow can prevent us from growing in the way that we want to. Colombia is challenging, and we're doing some re-evaluation to the market. In Argentina and Panama, we feel quite comfortable, the same as in Spain.

Moshe, if I could just add, in Spain specifically, we have, based on the latest regulatory data that we have, which is from Q4, there is signs that we're picking up meaningful share, particularly on the sports betting side, but also on the casino side of the business. We're waiting to see the first quarter data to see if that is a trend that consolidates here in the first and then hopefully into the second quarter. But But we are starting to see some of that improvement and the benefits from the strategy that we have in Spain, which obviously is our home market and the market where we've been operating for quite some time. So there are some positive things happening there. We want to see how the Q1 numbers come out from the regulator to see if that solidifies, but a positive trend taking hold in Spain.

Great. Thanks for all the color. I'll let others ask questions. Thank you.

Great. Thanks, Nick.

And there are no further questions at this time. Mr. Guillermo Lancha, I turn the call back over to you for some final comments.

Okay. Before we do have some questions coming in from the webcast, so I will just read them and Moshe and Oscar can answer. The first one is around the long-term incentive plan that we just passed, and we are being asked if we can briefly describe the triggers for the LTIP. So, I don't know, Oscar, or Moshe, if you want to take this one.

Yeah, I can jump in. Yeah, as we mentioned earlier in the presentation, The program is a five-year program and has really three baskets, three types of awards, the first being restricted stock units. These are upfront grants that vest pretty much linearly over the course of the five-year period, about 20%, so 20% per year. Those are fairly straightforward. The next basket is stock options, and I think the key there is that they're struck at $10 per stock option, obviously the $10 being the price of which are The private investors invested in our transaction and our business combination through the pipe last November 30th. And the last piece is the deferred payment right, and this is effectively a deferred cash payment at the end of the five-year plan. It's based on value creation. It's the only component of the plan that's not linked directly to the evolution of the share price, and it's based on as similar to the variable compensation bonuses that that we have on an annual basis is based on the year five performance and the value creation, the equity value creation of the business versus the baseline as established in the business combination itself. I think the target to achieve 100% payment under the deferred payment rights is $300 million of equity value creation, effectively a doubling of the equity value of the business. So I think that's kind of a high level in terms of just investors having a view of how directors and managers will be aligned with shareholders.

And again, if you would like to ask a question over the phone, please press star 1 on your telephone keypad.

Okay, we have another question on the webcast. The target addressable market increase in Mexico and Argentina, does this refer to H2GC estimates or also to Coderre Online in-house estimates for these markets? I'm sorry, go ahead Guillermo. I was going to address it to you, Oscar.

Yeah, I think Mexico is, our TAM, we have a, it's a combination. It's the updated, I believe these are less than a month old, H2GC forecast through 2026. And then we take an estimate, we try to anchor around 2027 as the target year from a TAM standpoint. But largely the evolution and the upward revision is H2GC. In the case of Argentina, it's a number of different sources, but I think generically would be more accurate to say that it's an internal estimate that we formulate as it relates to expectations. And obviously that's going to be evolving over time as we and other operators in the city and the province and elsewhere start learning a little bit more about the Argentine customer and the potential for growth in the market.

Okay, so we don't have any more questions on the webcast. I don't know, operator, if we have anyone else through the line.

There are no further questions on the phone line. The floor is yours, Mr. Lancha.

Okay, so if there are no further questions, we will leave it here for now. Thanks again, everyone, for connecting. And, of course, feel free to reach out to myself or Oscar. Hold on. We have a last-minute question that just came in through the webcast. Let's do it. While you obviously need to preserve most of your cash for growth, even a small stock repurchases at current prices will be very accretive over the long term. Any thoughts?

Yeah, I can take this one. I mean, we had this question on our prior earnings call, and I think it's a very valid question and something that we always will have to have on our minds, especially given current levels of where this stock is trading. But it's not something that today we have contemplated. The business is performing. It's performing in line with our expectations. I think our expectations, as you've seen with our three-year guidance in terms of revenue growth is ambitious. The focus continues to be on those core markets. The focus continues to be preserving that cash to invest in the business, so long as those dynamics, so long as the unit economics continue to hold, and so long as the opportunity continues to be there. So I don't think there's any change in terms of what we would be recommending from a management standpoint or what our majority shareholder may be thinking as it relates to utilization of that cash.

Okay. Thanks, Oscar. So, yeah, no more questions on the webcast either. So, thanks again, everyone, for connecting today. And feel free to reach out to myself or Oscar if you'd like to discuss anything further. Otherwise, we will speak again at the end of August for our Q2 2022 results. Thanks, everyone, and hope you have a nice summer.

Thank you. This concludes today's conference call. Thank you for your participation. Everyone may now disconnect.