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spk02: Good evening, everyone. Thank you for waiting and welcome to Viltroo's first quarter 2023 Earnings Conference Call. We advise you that this video conference is being recorded and will be available on Viltroo's IR website, where the complete material of our Earnings Call can be found. You can also download the presentation from the chat icon. During the company's presentation, all participants will have their microphone disabled. Then we will start the Q&A session. And at this point, you'll be able to use your microphone. To ask questions, click on the cue on the icon at the bottom of your screen to join the cue. If you prefer to write your question, please follow the same steps and you'll be joining the cue as well. When your name is announced, a request to activate your microphone will appear on the screen, and then you must activate your microphone to ask questions. It is recommended that you do all the questions at once. We emphasize that the information contained in this presentation and any statements that may be made during during a clause regarding business prospects, projections and operational financial goals constitute the beliefs and assumptions of the company's management, as well as information currently available. Forward considerations are not performance guarantees. They involve risks, uncertainties and assumptions, and they refer to future events and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions, market conditions and other operating factors may affect. Viltroo's future performance and lead to results that differ materially from those expressed in such forward-looking statements. Today, we have the presence of the company's executives, Pedro Garza, William Matos, Viltroo's co-CEOs, Carlos Freitas, Viltroo's CFO and IRO, and Maria Carolina, Investor Relations. We will give the floor to Mr. Carlos Freitas. You may begin.
spk05: Thank you, Pereira. And good evening, everyone. Thanks for joining us again. It's a real pleasure to be here with you all again for the release of our first quarter 2023 numbers. Here with me, I have Pedro Graça and William Matos, our two co-CEOs, Maria Carolina Gonçalves, the head of our IR department, and Raquel Sousaki, Daniel de Souza, and Luis Felipe da Silva from our IR department. A slide presentation will be part of today's webcast. which is also available in our website at investors.visru.com.br before we begin as usual i'd like to highlight and make note that as detailed on slide two of the presentation safe harbor is in effect for this call so now i invite you all to go to page four which is here on the screen so Here we have some important highlights for this last month, including some news regarding our leadership. The first one is that we are launching the transition period for our co-CEO structure, in which Pedro Graça, in up to six months from now, will leave his position as CEO or co-CEO of Vitru, and will take a seat at the board of directors. And at that time, William Matos, who will take over the sole CEO position of the company. As you remember, in August of 21, when we announced the agreement for the business combination with Unites Amar, we mentioned at that time that Vitru would have this two CEO structure once we close the transaction, which took place in May of last year. At that moment, the company started to be led not only by Pedro, but also by William. Pedro was the CEO of UniaSelve, had been since 2016, the CEO of UniaSelve in vitro, and William was at the time the head of the digital location business of Unicezumar, which was created by him and his team back there in 2006. So this co-CEO structure accelerated this integration process, which has advanced quite well, as you know, and already produced some nice numbers, nice synergies and margin gains, as you all saw when we announced the results of last year, in March of this year. With that in mind, we are confident to take one step further and move to the next phase. So we are now starting this position, this transition position, that I just announced. So this process was structured, was designed in a way to ensure continuity, a very smooth transition period, and to maintain the core values and the competitive advantages of both brands. At the end, I will ask Pedro and Willian to have some words here with you. Here on a different note, The board approved today a share buyback program for up to 500,000 shares to be potentially acquired over a period of up to 12 months. At the current share price, it makes total sense to launch such program, which confirms our confidence in the business model of the company and the prospects of the company. It is important to highlight that these 500,000 shares represent today around 6.4 percent of our floating and at the current share price and the current FX ratio uh the total amount of the program would amount to roughly 37 million reais uh so which is around 18 only of the adjusted net income of last year on the right part of the slides uh another important highlight we reached 886,000 students as of March of this year, an increase of 128% versus what UniaSELV had one year before. And nearly 97% of them in digital education, mostly the digital education undergraduate business, which is our core business, which had as of March 800,000 students. which makes us the largest player in Brazil. And finally, from a liability measurement perspective, we announced last week the execution of the indenture for our second debenture sessions for an amount of 190 million reais at an interest rate of CDI plus 2.6, so the local interest rate in Brazil, plus 2.6 for a five-year maturity, which is a quite comparative
spk07: interest rate given the current contest.
spk05: On page five, we have the main financial indicators for this quarter, very solid numbers. And by the way, as you will see throughout this presentation, we are now showing most of the numbers only on a consolidated basis. I mean, given that the integration is well advanced, it doesn't make sense anymore to show organic or inorganic numbers. Now we are on all vitro. So these lines of costs and expenses separately, we're not going to show only now, given that the integration is quite advanced and several areas are already working and serving both brands from a single unit, for example. So here, the highlights in terms of net revenue in the digital education undergraduate business, 105% up. this quarter 150 percent the total revenue uh growth on a fully consolidated basis especially because of the medicine business of only one uh the adjusted BDA increased by 255 percent this quarter uh while the margin increased 11 points reaching 38 percent uh this quarter so an important increase in margins coming from several sites, several sites. You'll see later on this presentation that we advanced in basically every line in our P&L. The just-to-cash flow for operations increased 173% as well, very solid growth with a solid cash conversion of around 80%. And the net income, adjusted net income was up 206% the score reaching 81 million reais in three months. So on page six, a quick reminder of what we promised that we were going to do and what we did. I won't spend much time on this slide, but here is important just to quickly refresh everybody that we said that we are going to increase the penetration, the ramp up of hubs, the entrance into the southeast, the opening of several hubs, and all of that is being delivered according to the plan that we disclosed back there in the IPO. Which includes, on page seven, the ramp-up of our hubs. So basically, as you know, we have most of our hubs still ramping up. The old hubs, the base hubs, as we call them, are more or less stable, but all the other groups of hubs are advancing quite well from the 17 cohorts up to the recent cohorts. And this is an important growth driver with quite lower risk of execution.
spk07: So this translates in page eight in a very
spk05: uh strong presence throughout Brazil uh so when we compare our overall student base as of March of last year compared to March this year we increase as you can see here around 100 on average uh in all areas of Brazil but in the southeast we increased by 340 percent it's coming from only a selfie onto the Mar this is clearly our new uh growth Frontier our growth avenue is a Southeast. So we have today the second largest region for our citizen-based perspective is the Southeast. It is the region in which we have the biggest chunk of our hubs. And in a few quarters, we will be our most important region. And why is this important? Here, a quick snapshot on the Southeast of page nine. As you know, 53% of the Brazilian GDP, 46% of the total enrollment in the market, 42% of the population. So this is where we are growing the most. We grew 210% the number of hubs between December 21 and March 23, and 420% in terms of student base. So an outstanding growth in a region in which we were not as present uh in in the recent years as we are throughout brazil on page 10 the the the complementarity of our hubs footprint throughout the country for unia selby for example as you know as you probably remember uh in the last year in the third and fourth quarters of last year we had around 25 of the hubs of unia selby in the southeast Now it's already 30% and around 40% in the case of ONCES Amar. So that's why we are growing the most there. And still with a lot of potential to expand a second brand in a lot of cities in which we have only one of our both brands. Because just as a reminder, we have two different profiles of clients, of students. because we do deliver two types of products uh it is not the same this learning product only yourself has a hybrid fully hybrid and only hybrid model with a local tutor uh has a fully online model hub based but fully on online model with the highest standards of quality and finally before we jump into the financial numbers another important slide on page 11 the the rates that we have they are still the best in in the industry uh in cinema with 4.8 just as a confirmation as a public knowledge information credible piece of information regarding the the quality and technology that we dedicate to our product So now, as I said, on page 12, we have some important indicators regarding student-based for our core business, especially. 800,000 students, as I said, 19% of the total student-based in digital education, growing a lot throughout the last years, especially now with the transaction with SEDOMAR. And now in this slide, this is a new slide that we produced just to have a deeper discussion about intake and average tickets for each of the brands in the digital location on the web segment. So this is the exception to the rule that I mentioned before. We are still informing the average ticket, the intake, student base of UNIASELV and UNTESAMOR in a separate way. because of the different Dynamics of these two brands so in the case of intake uh as we said already in March when we disclosed the numbers of last year we grew around 18 percent in total the intake in the first quarter of this year being around 21 percent uh only a seven around 14 percent in the case of onto the more uh and these despite the very high comparable basis of last year and despite the current crisis uh and the fact that this is really the first year after the pandemic i mean 2023 uh 2022 sorry we still had omicron so it's no surprise that the digital education sector increased a lot in 2020 21 22 and in our case we grew even further than the market so gained market share in this growing segment. And this intake growth was particularly strong last year. Just as a reminder, the total intake of Unicef last year was 26% compared to 2021. And in the case of Unicef-Domar, the total intake of last year was 54% higher than the intake of 2021. So even in this very, very high comparable basis, we are still growing a lot. The intake are 18% and with rising tickets, which is here on the bottom part of the slide. So in the case of only ourselves, every ticket growing more or less in line with inflation, as we have been doing in the last years. So this is mostly due to our pricing discipline, our marketing approach. and the tools and procedures that we have here for pricing that we have been applying for now for some years and discussing with you and showing to you since the IPO in 2020. In the case of UNICEF, the ticket was up 2.4%. So we are seeing here in this first quarter, the first signs of the new pricing approach that started to be implemented in the current cycle. As you remember, the average ticket of the digital education undergraduate business of SESOMAR decreased throughout last year. And the most important reason for that was this higher weight of new students, of freshmen in the overall student base at the lower tickets, which contributed to this increase of intake of 54% last year. It was a very, very strong growth, but at lower tickets, so this is a clear example of the synergies that we promise it to you from a commercial perspective arising from this exchange of best practice between the two the two companies in the case of the more going forward the average ticket. show increase even further going forward for two reasons first. uh because the the average intake ticket of the tomorrow is growing uh slightly in line with inflation as well or even slightly more inflation more or less versus the safety of last year uh and because today we have another important effect which is the carrying effect of this huge amount of new students that started with us last year at lower tickets and now they are carried to 2023 at lower tickets so this is also an important effect so going forward as this effect is diluted and as we have as well uh uh time passing by we shall have uh over time over time uh a more similar pattern of tickets between the two brands on page 14 the the main financial numbers that's revenue again 150 percent gross profit also uh increasing a lot and especially a bda with 255 percent growth as i said before so deep dive about net revenue uh we have the composition of net revenue here on the left part of the slides uh with the with most important part impact being the digital education undergraduate segment, but also, as I said, the on-campus business of special medicine. And here on the right, we can see clearly in the breakdown, especially on the right part of the slides, the right picture, that we have 77% of our business coming from digital education segments being undergraduate or continuing education which is basically our graduate business a digital graduate business which represents in total 77 of revenues plus 13 of medical education so the uh so which are the two say most uh uh uh segments that with the the best prospects in brazil uh digital location and medicine. So today we have 90% of our revenues in these two segments.
spk08: Sorry.
spk05: So now on page 17, just as a refresh, we have the medical business of Unicef do Mar. as the fifth best medical school in Brazil, very high quality institution with high scale. Maringá, the Maringá campus being the largest medical campus in the south of Brazil, which brings higher margins. So net revenue of our medical business reached 57 million reais this quarter. Tickets today are at around 11,000 reais per month, increasing above inflation. and the seats are still maturing. So we expect promising results from our medical business this year. On page 18, the on-campus business X Medical, a very important growth here, basically coming from the contribution of UniSezumar to our consolidated numbers, given the resilience and the high quality of the health-related on-campus courses of Sezumar. By the way, just as a reminder, the health-related courses, which are obviously more resilient than the others, the health course of SESOMAR, other than medicine, represent today more than half, around 60% of the on-campus revenues of SESOMAR. And by the way, on that front, just like to highlight as well that in the current intake cycle, we are seeing an increase in intake of slightly more than 20% in the on-campus business of SESMAR with higher tickets. On the right part of the slide, the continued location segment, here is a very important segment from a complementary offering perspective. So this is probably our next wave of M&A and further growth going forward. It's no surprise that we intend to grow with other complementary products, such as technical courses, courses as a preparation for the first job, et cetera. And of course, more in the graduate segment. So this is a segment that have a lot of potential going forward in this lifelong journey approach. On page 19, the composition of BDA, I'm going to go through this on next slides. So page 20, the cost of service. Today, 29% of net revenue, slightly higher in fact than the number of last year, basically because of the higher weight of the on-campus business of SESMAR, which is a business with lower margins. On the right parts, of the light the dna keeps going down which is a confirmation of our lean structure approach and the advancements in the integration so the dna in the first quarter of this year was only 6.6 percent of our net revenue following slide page 21 selling expenses an important decrease of 9.7 points year on year for two reasons. First one was, of course, this lower intake increase, because most of the selling expenses is aimed at attracting new students. But also, and even more importantly, the contribution of SESAMAR. SESAMAR approach to intake is much more lean, much more supported by the hub partners than in the case of UniaSELVI. So the hub partners, they have a slightly higher share in the tuition. So the revenue share with them is slightly higher than the case of UniaSELVI. And as a consequence, they are in charge of a higher stake in the cost and expenses to attract new students. an important reduction here in expenses going forward and for pda on the right part also an important reduction going down from 14.5 to around 10.7 percent lower than what we had in the fourth quarter of last year more as in line with what we had in the third quarter of last year already with the mod which i think is a quite important achievement as well this quarter and of course the most important contribution here was SESOMAR, not only because of the intrinsic lower PDA levels, for example, with medicine, but also because of superior retention and onboarding practice at SESOMAR that are now starting to be implemented at UNIASELV and that will be an important source of synergies in the medium term. To finish on page 22, adjusted net income and cash flow from operations. So net income going up 200%. So margin going up, even knowing that we have a higher leverage, a much higher leverage this quarter. So 81%, 81 million reais, sorry, of adjusted net income and an important cash flow from operations of 128 million reais, 80% cash conversion, And also this important to highlight that this cash flow from operations is before CAPEX. So, and our CAPEX is also going down. Our CAPEX in this quarter amounted to only 4.5% of net revenue down from 5.7 in the first quarter of last year.
spk08: That was it for now. So now I'd like to open for questions.
spk02: We will now begin the Q&A session. Remember that to ask questions, you must click on the Q&A icon at the bottom of the screen to join the queue. If you prefer to write your question, please follow the same steps and you will be joining the queue as well. Upon being announced, a request to activate your microphone will appear on the screen and then you must activate your microphone to ask questions. We kindly request that all questions be asked at once. Let's now go to the first question. First question today comes from Luca Marchesini, a sales site analyst, IBBA. We will open your audio so you can ask your question. Please proceed.
spk09: Good evening, everyone, and thank you for taking our question. So this was the first time that we saw an increase in the average ticket for Unisys OMAD after a few quarters of a decrease as the company has mentioned that uh you were implementing a new strategy of pricing in the company so now that we've seen an increase in the number does this mean that uh the implementation is over or should we continue to see initiatives to improve on season models tickets thank you thank you luca uh no it's not over uh yet uh this is the first
spk05: intake cycle this year cycle that we are implementing this new approach this new pricing procedures for which means a more granular approach which means a discussion about which correct price in each correct city for example this is starting we're seeing here here the first numbers uh going forward uh we have more some more ideas to be implemented that will take more time uh so but here i think the importance is that we can already see uh the first signals uh the first signs of uh of change we always said that we we would try to take the best of each company uh preserving what must be separated and using the best practice of what could be used as cross-information, cross-knowledge, and et cetera. So this is having some effect now in our average tickets. Very happy to see this taking place, and especially knowing, as I said, that a lot of new students were enrolled last year at lower tickets, and they carry this effect the first quarter of this year. If it were not for that, the ticket of Sysamore would be increasing probably roughly in line with the one of Unesco.
spk09: That's very clear, Carlos. Thank you very much.
spk06: Thank you.
spk02: The next question comes from Mirela Oliveira, sell-side analyst, Bank of America. We will open your audio so that you can ask your question. So please proceed.
spk03: Hi, Carlos. Good evening, everyone. Thank you for the opportunity to ask questions. There will be two on my side. The first one on PDA. What should we expect for 2023? I mean, these levels that you reported this quarter, should it remain the normalized levels now? Should it be the normalized levels? And the second one, if you could give us some update on the hubs expansion. Have you seen any change on the profile of the students
spk05: on these news hubs and and how is it going thank you thank you mariela regarding pda pda i mean for this year uh as as we said uh in in march uh what we expect is that pda for this year show more or less have the same uh number of what we had last year so which was which around 13, 14% of net revenue. So 10.7 is lower than what we expect for the full year. I will not assume 10.7 for the full year. I think it's too ambitious. But it can be. It can be, depending on the evolution of macro. But seeing what we see today with the current macro environment, I don't think so. So we stick to what we said in March, that the PDA of this year shall be similar, maybe slightly better, but more or less similar to what we had last year at the whole. So around 13, 14% of net revenue. For the hub expansion and the profile of students, I mean, there is no single answer to that because it's very diverse. We have for example regions or cities in which we were not present in with and which are smaller cities with less scale for example but also we have in the in Sao Paulo for example a lot of new hubs that we are opening mostly with the brand of itself in this case which are quite large cities with with quite I'd say important scale. And when you see the profile of students, it's also diverse. In some areas, we have to be more aggressive in pricing because that's the local reality. In some areas, we can be less aggressive in price. So there's no real change in function of the expansion. There are some changes as a whole. in some trends as a whole in the sector. For example, we see a slightly but continuous decrease in the average age of our students. In the past, distance learning was for people with more than 30 years, 35, 40 years. Now we have a lot of people coming from 25 years or less. Today, in fact, in our student base, we have around 40% already of people with 25 years or less, which is remarkable because that was not the reality of distance learning five years ago. Another important trend throughout the country and throughout the hubs, the increase in health related courses. Those are courses that are newer, not only from us, but from the market. And all these courses are hybrid with one, in some cases, two meetings per week, and they are newer. So this is also an important support going forward for every ticket and increases the market to be addressed. But quite frankly, when you see the profile of the new hubs or expansion hubs versus the old ones, there's not a big change.
spk08: Perfect. Thank you, Carlos. Thank you, Mirela.
spk06: The next question now comes from Pedro Caravina, Sales Site Analyst, Credit Suisse.
spk02: We will open your audio so that you can ask your question.
spk08: Please proceed. Hi, Carlos.
spk11: Thanks for the space for the questions. So first of all, congratulations on the results. I haven't had a chance to give a proper look, but it's clear that it was good. So one of your peers also reported strong intake growth with tickets adjusting nominally in line or slightly below inflation. Can you clarify to us, please, where this growth is coming from? Is it a market share gain? The market is expanding. The reason I'm asking is because macroeconomics does not seem to be well in other sectors. So what helps to explain the higher intake levels in education if tickets are not being reduced? Also, can you please comment on the evasion level in the beginning of this second quarter? Should we expect any increase in evasion levels going forward in the year, given the strong intakes?
spk05: Thank you, Pedro, for this question. So first, regarding the market and intake and ticket prices, I mean, there are a number of things to comment here. First is that not only now, but starting mid of last year, more or less, what we saw and we are seeing now is a more rational market with a more normal competition level, which is good for everybody. So this is not only now, but starting in the second semester of last year. The market is increasing. uh because the the new students the ones that are now deciding which course to take they are preferring to take a digital education course um that's that's the beauty of of of of it that we are focused on the segment that is growing which is digital location and this education was growing in the past grew a lot a lot during the pandemic now is still growing uh less than the pandemic uh but but it's still growing and will keep growing for a lot of years because that's the trend uh more and more people uh are uh taking as base case as as their first choice a digital education course uh today as as you saw as you know sorry uh around two-thirds of the newcomers in the last census uh two-thirds of people enrolling in new courses chose digital education courses and this is with all the student-based uh potential if we take out the courses that are not allowed in digital education such as law for example such as medicine around 80 percent eight zero eighty percent of the new students chose this learning in the sense of 2021 so so this is a business that is growing because uh there's a lot of of of uh of uh interest uh it also increases penetration throughout the the country so more and more as more and more people uh choose distant learning we increase the market to be tapped the the addressable market So it is true that we are in a scenario with a tough macroeconomic environment. That's true. But it seems that in the case of education, we are, I guess, already slightly ahead of the curve versus other sectors of the economy. And regarding the dropout rates that you mentioned, As we saw already in the third quarter of last year, the dropouts rates of the model are slightly higher than what they were one year before because of, as you said correctly, the huge increase of intakes. So it is always the case when you grow a lot the intake, usually there is a decline in ticket, usually there is a increase in PDA and usually in the following semester you have an increase in dropout because most of the dropout is concentrated around newcomers from the first or second semester so uh so the retention rates of only a selfie are more or less the same slightly lower this this year because of the macro scenario They are lower in the case of their rates are low in the case of the more because of this huge huge increase of 54% in intake last year compared to 2021. But it is part of the game that's part of the package what's important is that we have a growing and resilient student base over time. And a resilience and health tickets.
spk11: Thanks, Carlos. Very clear. Just a follow up. So when you look at the normalized rate, like the percentage of students that are evading compared to what were the intake levels, should we expect a worsening in this number or is it in line with historical figures?
spk05: I guess that what we have today in the fourth quarter was affected by the current scenario, macro scenario, and by the, in the case of Unicef do Mar, by the out of normality, I would say, increase growth of, increase intake, sorry, of last year. So going forward, going forward, we shall have a improvement in this retention rates, especially with this best practice between Unicef and Unicef do Mar, this onboarding practice that I mentioned, that we started now to be implemented in UniaSELV.
spk08: Okay, very clear. Thank you. Thank you.
spk02: The next question is from Lucas Nagano, sales side analyst for Morgan Stanley. We will open your auto so that you can ask your question. Please proceed.
spk00: Hey, good evening. Thanks for taking our questions. We have two questions. The first one is on debt, the debt issues you announced. Just to understand more on the rationale, do you plan to prepay some of the current debt? Could you give some color in this? And the second question is if you could comment more about the other initiatives on commercial synergies. You already commented about the price increase at Unisysmire, but how's the progress going regarding the expansion of courses and brands? Thanks.
spk07: Thank you, Lucas.
spk05: For the debt, the idea to raise debt was indeed to extend the average maturity of our debt. The first debenture that we issued last year, the first maturity is for 100 million reais in November of this year. and 100 million reais in May of next year. So basically, the venture is to extend the maturity of this debt. We have not yet decided whether to prepay or not the first series of the first debentures. We may prepay. This was not yet done. So we will take a decision in the next months. But anyway, the use of proceeds from the second debenture is indeed to to pay and to extend the maturity. So it's a liability management transaction to exchange a one year debt to a five year debt at a lower cost, by the way. Sorry, the second question about the commercial synergies. We have, I mean, there are three pillars from a commercial synergies perspective. The first one is the new pricing approach at Unicef do Mar, which we have already some numbers to show. The second is the increase in the portfolio of courses of both brands. We launched already last year some new courses at Unicef do Mar. taking profit of the material that we had and that had to be adept. So it was much faster to launch this type of courses, which was, by the way, the reason for the commercial seniors that we had last year. And so this second pillar is also quite implemented. There are, of course, some more courses that will be launched, but this is also advancing well. The third pillar is, I'm going to put here on the screen, third pillar is the faster expansion throughout brazil uh and the complementary of the hub profile uh this will this is advancing as well so we are opening uh hubs with with uh with a partner of the other brand etc uh we won't see this year many numbers about it uh basically because the net revenue of a hub that was just open is small uh so in the first year we have a lower or limited number of students we have only freshmen with lower tickets we have a high uh uh high rebate high share of revenue in the case of near service higher in the first years so this all contributes to quite low uh net revenue uh once you open new hub so this Lukas Ferreira- synergy pillar is more for the medium and long term this year, what we will see for commercial synergies is the first two pillars, the new commercial approach of. Lukas Ferreira- And the higher a portfolio, a larger portfolio of quarters in the two brands.
spk08: Carlos Bernal- that's very helpful Carlos thanks. Lukas Ferreira- Thank you guys.
spk02: Moving on to the next question will come from Márcio Osakas, outside analyst at Bradesco. We will open your audio so that you can ask your question. Please proceed.
spk01: Hi, good morning. I have three quick questions. The first one, what was the price increase for new students only at UNICEF and UNICEF? So only for freshmen. The second question is why the dropout rates at UNICEF increased more than at UNICEF? And it wasn't very clear because the intake growth at Sesumar was lower. So the share of new students at Sesumar was lower than at UNICEF and still, you know, dropout increase was higher than UNICEF. And the last question related to dropout, how do you see the return of these students that left? Do these students, they return in the future? Do you know how much of them they return? I don't know, in one or two years. I don't know. Any comment on this, please. Thank you.
spk07: Thank you, Marcel. So let's start with the first one.
spk05: the the average intake uh price or tickets this uh as i said in the case of only this is increasing more or less in in line with inflation even more and slightly more than than that so what we're seeing is an increase a real increase in real terms of the the average intake uh ticket for which is a very positive signal as i said before of the trend for the future. So the overall ticket, the overall ticket was, let me put here on the screen, 2.4% increase. That's the average ticket for all the student base. The average ticket for the new students, it's more than that, it's more or less in line with inflation, such more inflation this year. In the case of UNIASELVI, It's slightly lower because of the higher comparison basis, but it's more or less similar to the one of UNICEF, slightly lower. So going forward, that's why I said that we have very important prospects for a ticket of UNICEF as we dilute the effect of the students of last year. The second question about the dropout of UNICEF, I mean, the dropout effect is felt after you have to renew the enrollment. So that's why the fact that last year, 2022, Universidade do Mar grew a lot the intake. So it was a growth of 54% increase throughout last year compared to the intake of 2021. So, and so, and the fact that we see is now once they renew their enrollment in the beginning of the year, there is a higher dropout rate of because of that, because as of December of last year, we had a higher weight of freshmen in our student base. So it's not because of the intake of this current cycle, 2023. It's because of the higher growth of the intake cycle last year. That's why it was, by the way, it was already the case in the third quarter of last year. If you see our supporting spreadsheet, you can see that there was an increase in the dropout of SEDOMAR in the third quarter of last year compared to the third quarter of 2021 because, again, of the very high intake in the first semester of last year. That's normal. That's part of the business. What is more important is that we are growing a lot the net revenue, tickets, and student base. And finally, the return of the ones that leave, it depends from course to course, from brand to brand, but we do have an active approach for that that we call the win-back. So the twin back the students in which we have special prices, special conditions, and when they decide to come back, it is not a very sizable percentage of our overall student base, but it represents an important contribution when you see the dropout rates. We do not, account this win back students as intake they are accounted as a reduction in the dropout because they they dropped out now they return so but but it depends from from time to time today it is it can give you a number it shall be around 10 uh eight to ten percent of our intake uh uh would be in back they are not accounted as intake they are counted as a reduction in dropout.
spk08: Okay. Thank you, Carlos.
spk07: Thank you, Martin.
spk02: We remind you that to ask questions, you must click on the Q&A icon at the bottom of the screen and write your question to join the queue.
spk05: All right, if there are no further questions, so I'd like to excuse myself, I'm going to turn to Portuguese now. I'm going to speak in Portuguese now, because I wanted to invite Pedro and William, who are here next to me, to say a few words as well. Pedro, as I said, was the CEO of UniaSelv, and now he is the co-CEO of Vitro. since 2016, you know Pedro, now you also know William. So please, Pedro and William. Thank you, Carlos. It's really a new stage.
spk04: a special moment and also very emotional for me. I will start by thanking everyone for having participated and accompanied the construction and evolution of Vitro in recent years. Thank you very much. It has been a privilege to participate in the construction of this institution over the last seven years. So many achievements, so many landmarks, so many memories. how many celebrations. We had a really spectacular evolution over these years, provided by a team very proud of our purpose, with a dedication and a different delivery. A team that I am very proud to be part of and I can only thank. Our expansion, our IPO, our combination of business with Cezumar. The combination that took us to a new level. The results show that. Add up the experience of these two institutions that were pioneers in digital teaching. both with a differentiated quality, and to make this integration of these two brands without imposing a form, without imposing a culture, disposing of the vices and really adding the experiences of these two companies to be able to bring something even better to our students. This was only possible and it was only possible due to the structure of the co-sciences that William and I were willing to do. We've been planning together for six months, and this last year we've been working side by side to achieve this integration, to achieve this dream. Now entering a new stage, we started the transition process that will take up to six months and after that I will be part of the council and of course continue now in a different format, supporting and following Vitro. I can only wish all the success to William. I couldn't be happier for him to be ahead of Vítor, a professional that I admired before. We followed all the achievements ahead of Onísio Zumar. and that in this year and a half by my side it became clear that all these achievements did not come by chance, an extremely competent professional and with deep knowledge of the market and that today, more than a colleague, a friend for life.
spk10: Thank you Pedro, hello Carlos and everyone who is participating today in this call. As many Already well planned by Carlos and Pedro, we started today an important process of transition of co-CEOs within our company. This transition is based on the success of our business combination and without a doubt brought speed in integration and synergy that we proposed and that we managed to deliver after, effectively, a year that we are walking together as Unicesumar, UniaSELF. I want to take this moment to emphasize again that Pedro does not leave us, but starts a movement that will take us to the Council, where the Council will continue to play a fundamental role in the construction of our history. The transition proposed and carried out from now on in this way, with continuity, the numbers presented in this quarter, is proof that Vitrio Educação is a different company from the market. And here I want to make clear the commitment during the transition and after it, of the continuity to which we will continue to lead our company. sempre muito atenta e preocupada com todos os nossos stakeholders envolvidos nossos investidores nossos acionistas nossos alunos nossos parceiros e os nossos colaboradores continuamos firmes no propósito que nos trouxe até aqui uma empresa ágil attentive to market needs, with consistent and responsible delivery, with coherent strategies of profitability, growth and, above all, sustainability. Between the constant change that the market demands and the continuity of important processes, we will continue to lead the digital education segment. And I want to end here again by thanking the partnership that was built with the great professional and friend Pedro Grass. but in different positions at the end of this transition, we will continue to build a better future for our students and Brazilian education. Thank you very much.
spk05: Well, just to come back to English with that we close our presentation, thank you all for for your trust, thank you for for the questions and in case of any further doubt we are available here as virtual Thank you and good night.
spk06: The video conference of results referring to Vietor's first quarter 2023 is closed.
spk02: The Investors Relations Department is available to answer other questions and concerns. Thanks so much to the participants and have a good evening.
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