Bezeq Israel Telcm Un/Adr

Welcome, everyone, and thank you for joining us on BEZEC's fourth quarter and full year 2025 earnings call. I am Yochai Benitez, CEO of the BEZEC Group. Joining me today are Mr. Tom El-Raved, BEZEC Executive Chairman, Mr. Nir David, CEO of BEZEC Fixed Line, and Mr. Ilan Sigal, CEO of Peloponnese. Before we begin, please review the Safe Harbor Statement on slide 2 of our presentation, which applies to any statement made during today's call. We will start with Tomer's opening remarks, then I will review the group's financial highlights, followed by Nir on Fixline and Ilan on Peloponnese. I will then cover Bevec International. Next, we will be presenting our business strategy update. Each one of us will walk you through the key initiatives and targets for the group. Following our prepared remarks, we will open the call for Q&A. With that, let me turn the call over to Tomer for his opening remarks.

Thank you, Yochai. I am glad to see all of you joining us today. Our excellent results demonstrate the strength and resiliency of our group and the remarkable execution of our strategy. We surpassed 1 million fiber customers in Bellvec Fixed Line, and we are leading the infrastructure market with fiber deployment. Pellephone delivered its strongest year in a decade, and yes, completed an impressive financial turnaround. These achievements enabled us to launch our first-ever share buyback program, in addition to our existing dividend policy of distributing 80% of net profit, totaling to 700 million shekels. This move reflects confidence in our ability to generate strong and going free cash flow in the years ahead. Once again, we demonstrated the critical importance of having a strong and reliable telecom infrastructure for the State of Israel, especially considering the current round of facilities with Iran, ensuring continuity while maintaining high service availability for the entire public and the economy. The financial and operational targets we'll publish for 2029 reflects the growing ROI due to focus on our core activity in recent years and the group strengths of the group infrastructure and growth engines. Let's now move to slide three, where we present the group's vision Through sustained investment in advanced national infrastructures, we enable smart connectivity for every home, business, and public institution across the country. With financial strengths, AI-driven tech leadership, operational excellence, and a forward-looking global strategic perspective, we lead market transformation, strengthen Israel's competitive position in the digital era, and deliver sustainable, long-term value to our customers, employees, partners, and shareholders. This vision is what makes our group best in class resilient and innovative telco versus any global benchmark. Our nationwide infrastructure in fiber and 5G combined with our strategy in regional subsea and terrestrial connectivity makes us well positioned to support the next decade of digital and AI revolution in Israel and in the Middle East. Slide 4 highlights the past year. Core revenues grew 3%, with strong subscriber momentum. Adjusted EBITDA grew almost 8%, and adjusted net profit grew by more than 30%. For better comparison purposes, EBITDA and net profit in the 2025 financial statement have been adjusted to use a comparable metric, or COMP, that eliminates the non-recurring impact of changes in valuation. COMP EBITDA grew 1.5%, and COMP net profit decreased by 2%. Fiber subs were up 23%, and 5G subs plants were up 11%. ARPO increased across broadband, TV, and mobile. We signed a multi-year collective agreement with the fixed line union and reached principal multi-year understanding at Pelafon. On the regulatory front, the Ministry of Communication published revised wholesale targets with no material impact on Beldeck, as we advanced in the process of removal of structural separation and merging yes into Beldeck fixed line. Turning to slide 5, we see the tech and business roadmap on track to deliver our 2029 KPIs from increased fiber deployment and take-up, expansion of 5G, and growth in the TVM fiber bundle, ETS. We are building for durable growth, superior customer experience, and operating efficiency. On slide 6, we summarize our key achievements for the year, both in top line as well as profitability metrics. As mentioned, core revenue grew 3% to almost $8 billion, now representing 92% of the group revenues. Free cash flow was up 11% to $1.1 billion, while adjusted EBITDA and adjusted net profit were up year-over-year 8% and 31%, respectively. Our comp EBITDA rose 1.5% to $3.74 billion in line with our targets, and comp net profit was down 2% due to higher depreciation and hedging expenses. On slide 7, we detailed the bridge to CompEvita and CompNetProfit, which excludes the impact of changes in valuation with respect to YES and BADEC International. Moving to slide 8, we highlight our key KPIs in each of the business broadband retail ARPU continue to grow year-over-year. In addition, we recorded increases in telephone ARPU as well as in ES ARPU year-over-year due to fiber growth. I will now hand it back to Yochai who will review our financials in more detail.

Thank you, Tomer. Moving to slide 9 for the group's full year highlights. For the full year 2025, core revenues were approximately 8 billion shekels, up 3% year-over-year. Comp EBITDA increased by 1.5% to 3.74 billion shekels, while comp net profit was 1.1 billion shekels, down 2.2 due to higher depreciation and financing expenses. Free cash flow for 2025 was 1.1 billion shekels, impacted by tax assessment paid in 2025 versus the tax refund in 2024. CapEx was down 3.7% in 2025 as we begin the slowdown in fiber deployment as projected. Turning to Q4 on slide 10, Q4 results shows improvement in all financial metrics and we are posed for continued growth as projected. Core revenues grew across all key segments. Comp EBITDA was 963 million shekels and comp net profit was 311 million shekels due to lower financing expenses. Free cash flow, in the quarter benefited from lower capex and working capital timing. Moving to the next slide, we show our operating expenses. Salary expenses decreased 2.7% due to the sale of PESEC online and its deconsolidation as of the second quarter of 2025. We recorded decreases in operating expenses and depreciation expenses, mainly due to the change in yes valuation during Q2 and Q3. Other expenses were impacted by employee retirement at BASIC fixed line and higher provision for legal claims. On slides 12 and 13, we show our annual and quarterly operational metrics. We recorded growth in ARPU in all segments. Broadband retail ARPU continued to grow. We recorded increases in telephone ARPU and also in YES ARPU due to fiber growth. On slide 14, slide 14 highlights our balanced capital structure. We ended the year with net debt of 5 billion shekels and a net debt to adjusted EBITDA ratio of 1.4, maintaining AA category local credit rating with a stable outlook. Turning to shareholder remuneration on slide 15, Our board recommended a total distribution of 700 million shekels, consisting of a cash dividend of almost 550 million shekels, or almost 20 agorot per share, and for the first time, a share buyback of 150 million shekels in 2026. Looking ahead on slide 16, we share our 2026 outlook of Comp EBITDA of 3.7 to 3.8 billion shekels, Comp Net Profit of 1 to 1.1 billion shekels, and CapEx of 1.6 billion shekels. Turning to slide 17, we present our 2029 financial targets. We are targeting core revenues range of 8.7 to 8.9 billion shekels, comp EBITDA range of 4.2 to 4.4 billion shekels, and gross capex range of 1.5 to 1.6 billion shekels. That implies EBITDA minus capex roughly of 2.65 to 2.85 billion shekels and free cash flow growth above 10% CAGR through 2029. COMP's net profit is expected to grow at over 8% CAGR. We will continue to focus on maintaining our AA-level rating and strive to increase shareholder remuneration. Turning to slide 18, we highlight our 2029 operational targets. We plan to extend fiber coverage to 3.5 million homes with a take-up of 43%, lift retail broadband output to around 150 shekels, and have roughly half of fiber subscribers on speeds above 1 giga. In mobile, our target is 85% of post-paid subscribers on 5G plans with ARPU around 50 shekels and approximately 450,000 5G max subscribers. 5G sites are expected to represent 90% of the total network. For yes, we are targeting output of 250 shekels and 50% of TV customers in a TV plus fiber bundle. Operationally, the group is targeting a 40% reduction in FTEs, leading to stable salary expenses by 2029. I will now hand the call to Neil for fixed line results.

Thank you, Yochai. Slide 19 summarized the fixed line achievement in 2025. Core revenues increased 3.7% with retail fiber subscribers at 637,000 today and retail broadband ARPU at 138 shekels in the fourth quarter of 2025. Fireware deployment reached 2.95 million homespots, with total fiber subscribers of 1.02 million, about 69% of total broadband subscribers, and take-up rate of 34%. These metrics set a strong base heading into 2026 and support our 2029 ambitions. Moving to slide 24, For 2025, BESEC fixed-line core revenue grew 3.7% to approximately 4 billion shekels, driven by an increase in all core revenue segments. Adjusted EBITDA increased, while adjusted net profit declined 4.6% to 951 million shekels on higher depreciation and financing expenses. On a quarterly basis, results of BEZEC fixed line record similar trends to that on the annual basis. In Q4, broadband and cloud and digital growth, while transmission and data was lowered due to a one-time reclassification to other revenue. We will continue focus on increasing take-up, speed upgrade, and value-added service for homes and businesses while leveraging AI to enhance service quality and streamline operations. I will now hand the call to Ilan to address Pellephone NDS results.

Thank you, Nir. Turning to slide 25, at Pellephone, 2025 marked the highest service revenues in a decade. supported by growth in 5G full-space subscribers, reaching 1.4 million today, 5G max adoption and strong roaming. Adjusted EBITDA grew almost 3% to 782 million shekels, and adjusted net profit rose almost 6% to 163 million shekels. In Q4, ARPU was 47 shekels, up 4.4% year-over-year. Turning to slide 26 and 27, in the quarter, equipment revenues increased with a successful iPhone 17 launch and adjusted EBITDA grew on higher revenues. Adjusted net profit increased due to an agreement with the tax authorities and free cash flow benefited from stronger profitability and federal working capital timing. Slide 28 shows continued multi-year service revenues rose alongside rising 5G adoption today of 60%. of phosphate subscribers are on 5G plans, with approximately 170,000 5G mass subscribers. On slide 29, our point Q4 was 47 shekels, up 4.4% year over year. We continue to grow phosphate subscribers with an increasing 5G mix. Moving to Yes on slide 30, Yes revenues in Q4 grew 7.3% year-over-year to 340 million shekels, the highest quarterly revenue since Q4 2019. ARPA reached a record of 200 shekels, driven by TV and fiber bundling and competition from the partner deal. For the year, adjusted EBITDA and adjusted net profit greatly improved on higher revenues, cost streamlining, and valuation impacts. TV subscribers totaled 565,000, IP subscribers reached almost 500,000, and Fiverr subscribers nearly 130,000 today. Slide 3132 highlights the full year and Q4 results. Revenue growth and cost streamlining supported higher adjusted EBITDA and adjusted net profit. Free cash flow greatly improved to improved profits and working capital timing. Finally, slide 33 shows KPIs. Q4 ARPU increased by 14 shekels year-over-year to 200 shekels. IP penetration rose to almost 90% and Fiber subscribers reached 118,000. I will now hand the call to Yechai for BASIC International results.

Thank you. Ilan, finally turning to BASIC International on slide 34. We are progressing in our transition from consumerized fee to an ICT-focused business spanning communication, data centers, integration, public cloud, and cybers. Revenues from business customers increased 2% in 2025 to 957 million shekels. Headcount decreased by 10% under the retirement program. In Q4, adjusted EBITDA was 37 million shekels and adjusted net profit was stable as lower depreciation offset software revenues. This concludes our earnings presentation. I will now hand the call back to Tomer.

Thanks, Yochai. Before we move to Q&A, I'm excited and proud to share with you our strategic update. As we have completed and fully executed our business plan announced back in 2021, I would like to walk you through BEDEC's roadmap based on sustained growth, expanded margin, and increased returns through 2029. Despite the recent geopolitical and economic challenges, BEDEC has strengthened its balance sheet, consistently increased shareholders' return, and advanced Israel's digital infrastructure at a scale that will drive our financial targets and KPIs going forward. On slide three, we present the four strategic pillars of our business strategy. Leading digital infrastructure, growth drivers, operational excellence powered by AI, and a robust financial position, all of which are drivers and levers for current and future value creation. During the presentation, we will cover the 2029 targets, the levers behind revenue and EBITDA growth, efficiency initiatives, and our capacity to invest while returning capital. Bottom line, Barricade acting for a position of strength, where scale, premium brands, and the most advanced network will further allow us to unlock additional shareholder value. On slide 4, you can see the key strategic highlights within our pillars. We have a leading digital infrastructure with nationwide fiber and 5G, strategic connectivity hub positioning, and a future ready network. Our growth drivers are divided into output growth, faster broadband, 5G monetization, and around 50% bundling in the S. The operational excellence in AI are centered on more efficiency than improved productivity, as we come to the end of the capex cycle with a headcount reduction and lower satellite and legacy costs. Lastly, our robust financial position will allow us to further strengthen our balance sheet, continuing growing FCF, and create additional capacity for increased shareholders' return. On slide five, we share our 2029 targets. As previously presented by Yochai in the financial presentation, our ability to generate top line following end of capex cycle translate into average annual double digit growth in free cash flow with supporting take up in our pool and penetration across all our business units. On slide six, We illustrate our track record and how our performance underpins our targets. As seen in the graphs, since 2021, we have grown core revenue and EBITDA, expanded fiber take-up, and scaled 5G and ES bundling. These strong results support our confidence in our 2029 goals. It is great to see the correlation between the strong execution and the attractive financial results that follow. Slide 7 shows Bedek's group market share snapshot. Today, Bedek is the leader in the broadband and TV markets, and number two in mobile, with market shares of 53% in broadband, 33% in TV, and 23% in mobile. On slide 9 to 11, we show Israel's overview from a macro perspective. Israel's macro trends support every possible tailwind that an incumbent telco needs. We have the most rapid population growth in the OECD, with growing GDP per capita, which supports willingness to pay and demand for connectivity in a relatively low ARPU environment. The high R&D intensity on the next slide and the population density all leading the global charts underpin the demand for advanced connectivity and the lower CAPEX needed to support that. BEDEC is already shaping Israel's future as it is best positioned to power national connectivity as density and digital needs rise. As we move to slide 12, let me now dive into each of the pillars described before. Our strategy is centered on accelerating growth via leading infrastructure and operational excellence. Slide 13 shows how BEDEC Infra is a powerhouse today and where we seek to be in 2029. With 100,000 kilometers of fiber, we aim to have 3.5 million homes passed by 2029, but a take-up rise from 34% to 43%. In terms of 5G sites, we aim to increase from 50% to 90% of our deployment plan. Lastly, and importantly, our subsea and data center connectivity will enhance Israel's role as regional and global connectivity hub. Slide 14 shows the ongoing ARPU growth drivers. By 2029, broadband ARPU is expected to reach 150 shekels, while mobile ARPU increased to 50 shekels, and ES ARPU reaches 215, all driven by speed upgrades, 5G, content, and bundling. Slide 15 addresses quality. premium brands, and infrastructures. By following our premium positioning plus network leadership, we support superior service and the highest output in the market. Light 16 and 17 detail our focus on our operational excellence and AI pillar. By deploying AI for network operation service, and productivity, we are targeting 14% full-time equivalent reduction by 2029, with stable salary expenses. As mentioned, we have already reached new collective agreements and understandings to enable efficiencies and margin expansion. Slide 18 shows our balance sheet resilience, despite all the black swans you see on this page globally and locally in the last few years, such as COVID-19, the Russian-Ukraine war, and the regional conflicts BEDEC has remained an island of stability. Our leverage has improved from 2.4 to 1.4 today, despite macro shocks, which is supporting investment and returns. On slide 19 and 20, we address our shareholder remuneration and financial approach. As you know, our dividend policy has disciplined 80% payout, and today we actually announced our first incremental buyback program. Free cash flow growth of over 10% supports growing and sustainable capital return to our shareholders. Our current leverage in the AA category local ratings provides flexibility for growth, investment, and returns. On slide 21 and 22, we address potential areas not considered in our financial targets for 2029. Slide 21 shows Israel at the center of strategic connectivity. Israel's location positions Bezek as a bridge for hyperscalers between Europe and Asia. We are in active negotiations with various companies to provide routes that extend beyond the Suez Canal and position Israel as the corridor to connect the two continents, the IMEC corridor. On slide 22, as you know, we are expecting to learn soon about the removal of structural separation and our ability to merge BEZEC and YES. We are glad that the regulator is finally formally addressing these unnecessary limitations, better late than never. Once approved, it will allow BEZEC and YES to combine unlocking top-line synergies, operational efficiencies, and a 1.2 billion shekel tax asset. Slide 23 is just a recap of the building blocks of our strategy. These pillars flow from the group level to each one of our subsidiaries and connect directly to our vision. I will now turn the floor to Nir to walk through the strategic initiatives at our fixed line business.

Thank you, Tomer. On slide 24 to 31, we show BASIC fixed line snapshots and how the plan will be implemented. Turning to slide 35 and 26, With 2.9 million home space and 34% take-up and output of 136 shekels, we will focus on premium internet, value-added service and AI-driven efficiency. On slide 27, we show how our brand leadership supports our pricing power and on slide 28, we expected a take-up rate of 43% with 30% of subscribers having more than one gig by 2029. Moving to slide 29, we already have the highest output among competitors and we are targeting an ARPU of 150 shekels on 2029. Turning to slide 13, by implementing AI solution, we will enrich our customers' experience and contribute to streamlining internal processes. Our goal is to contribute to higher ARPU and to retention. Cost reduction, better performance. Finally, moving to slide 31, in terms of our enterprise businesses, growth will be tied to SD-WAN, security, cloud, GPU, AI as a service. In addition, the integration of AI will lift growth and reduce costs. I will now ask Ilan to cover Peloton, and yes.

Thank you, Mir. Turning to slide 32 to 37, we show Pelephone's snapshot and plan with 2.68 million subscribers, an ARPU of 46 shekels, and almost 1.4 million 5G users. We are already leaders in 5G. We expect our 5G penetration to jump to 85% of full-scale customers in 2029, with 90% of 5G sites deployed. At the end of 2025, Elephone already had the highest ARPU in Israel. We expect to expand 5G Max subscriber plans from 140,000 to 450,000. We believe that digitization and AI will enhance services and increase efficiency. Slides 38 and 43 show a yes snapshot. and plan for the coming years with 565,000 subscribers and annual output of 192 shekels that reached 200 shekels in Q4 and almost 120,000 fiber subscribers. We have brand leadership and premium content to foster additional growth. We aim to reduce satellite costs substantially and increase efficiencies with digital and AI. Yes already stands out as Israel's most popular TV provider. We aim to expand our TV plus fiber bundling to 50% by 2029, scale TV ads and partnership to deliver an ARPU of 215 shekels in 2029. I will now ask Yohai to cover BASIC International.

Thank you, Ilan. On slide 44 to 46, we highlight BASIC International's snapshot. and strategic plan. And with 1.1 billion shekels in revenue and 20,000 plus more customers, we are focused on delivering end-to-end cloud, cyber integration, telecom data centers, and IT solutions. Patek International is partnering with leading companies to enable secure connectivity, AI-ready cloud, and managed services to enterprises. These last two slides on the presentation focused on ESG. ESG is integrated across our operations. Energy efficiency, recycling, net zero 2050 pathway, as well as diversity goals and strong ratings. Digital inclusions via fiber and 5G, resilient networks during crisis, and robust compliance and supplier standards are all part of our commitments. Today, Patek enters its next phase with strong momentum and a clear strategic path. We will monetize nationwide fiber 5G and grow ARPU via premium and bundle offering and leverage AI and automation to improve experience and reduce costs. We will maintain a robust balance sheet that supports sustainable returns and future investments. We believe this combination creates a compelling long-term value proposition for shareholders. Thank you. We are happy to take Your questions now. Next question is from Chris.

Hi, thanks for taking my questions. Could you tell us where things stand with regards to structural separation?

Sure. Hey, Chris, Homer, Vicki. So, look, the MOC, the Ministry of Communication, basically announced an RFI a couple of months ago, basically leaning towards a formal decision on that front, which was supposed to happen by end of year. You know how things are on the regulatory front. We expect to hear a decision or a formal hearing in the coming weeks.

Coming weeks. Great. And also, how should we be looking at CapEx specifically at yes, considering the year-on-year decrease and the fact that you're going to continue the services in satellite until 2028?

So, as we said earlier this week, once YES found a solution, a satellite solution, we see CAPEX going down. We saw that in 2025, and I think it's reasonable to assume that the current CAPEX level that you see will be what we will see in the next years. We don't anticipate any increase in YES CAPEX.

Excellent. Great. Thanks. That's it for me.

Okay, thank you. Our next question is from David Kaplan from Sagot.

Hi, everyone. Good afternoon. So Chris asked the first question. I guess we all really had one structural separation there. Can you talk a little bit about your plans that you had had when you were reaching out or trying to purchase Hotmobile? What was the strategy there and having not succeeded in that purchase, What's your strategy going forward with Peloton?

I mentioned it was just high level and then let Elon answer for Hotmobile. But generally speaking, as you know, we have low leverage and a lot of financial flexibility. And in terms of our capital allocation, which we just outlined, we are looking at M&As and shareholder returns as a balance. When we have excess cash, as you saw in this quarter, we announced a buyback plan on top of our dividend. And you will continue to see us doing smart and sophisticated capital allocation, leveraging the low leverage we have. including talking M&As or more significant one given the flexibility we have, including very strategic ones related to our core. And you saw us looking at a couple of assets this year. Specifically on Hotmobile, I'll let Elon expand.

I will add also that in 5G perspective, we will deploy 5G assets to 2029 for 90%. So we'll continue to go on 5G and grow the ARPU there. Also with the new plans, the 5G Max that have more ARPU. So this is the telephone way. And from Hotmobile perspective, it's not over until it's over. It's not signed yet on the other front. And if it will be a sign that it's not continuing there, we are ready to go in again.

Great. And then I guess one quick question on your guidance. Can you walk us through why you decided at this point in the year to adjust for the valuations of YES that happened in Q2 and 3, and you didn't do it earlier in the year? What changed from your perspective that now is the right time to do that?

Sure. And it's good that you bring it up. YES, this quarter in Q4, basically completed its write-ups, basically recovered all the write-downs we had over the past few years. So the final adjustment and write-up at YES basically was completed in 2020, in Q4 2025. So going forward, there will not be any more write-up on the yes asset. And as a result, we thought it's will be very clear to the market, given that we completed, this was the last quarter of write-ups or write-downs. Yes, you will have an applet to applet comparison going forward, you know, because you saw the 4 billion number for 2025, that was the last quarter in Q4 where you have that write-up. So it was very helpful for the market and we received very good feedback from investors of providing this transparency, very consistent with other companies who had this like one-off impact to EBITDA.

And we also gave this on Q3 when we highlighted what are the adjusted results excluding the yes evaluation impact. So it's the second quarter.

Okay, great. Thanks very much.

Thanks, David. Thank you. Next question is from Sihi from Citi. Hi, Sihi.

Hello. Hi. Good afternoon. Thank you for taking my questions. I have two, please. The first one is really wondering if you can talk about the energy costs as a percentage of your OPEX and what kind of hedging positions that you have in place for this year and maybe for coming two years. And my second question is just help us to think about shareholder returns. Obviously, you have a payout ratio and this year's net profit is benefited from this revaluation of the yes assets. And I'm just wondering, looking out for next year and onwards, how should we think about it in terms of the shareholder remuneration in absolute terms? Do you think that you're still comfortable that 2025 still could be a baseline? for you to grow shareholder returns from here onwards? Thank you.

Sure. So I'll take both briefly. The first question, C, we actually have very low energy costs in the group, and we have a long-term contract for power from the group perspective. There's no real hedging necessary because the amount of energy cost is very little in a group comparison. And the oil prices and changes that happened in the past few days Similar thing happened in 2022, didn't impact our results at all. You will not see it in the results. Even if there's additional supply chain issues, we are ready for that. We experienced that before and we know how to handle that. So we did not see really impact on the results. Sometimes they are working capital shifts, but nothing dramatic. So that's on the first question. On the second question, we continue to focus on growing our DPS and growing our distribution to shareholders. You may see it through our 80% going up or through additional buyback, but the idea is to continue and grow. You'll see it through the projection for 8% growing CAGR and net income going forward for the next three, four years, as well as the 10% free cash flow. Both give us a lot of flexibility to continue to see this growth. It doesn't mean it grow from, you know, H1 from H2, but on an average annual basis, you will continue to see the DPS growth like we outlined in the past four years. Thank you, Sihi.

Thank you, Sihi. Next question is from Sabina, from Lida. Hi, Sabina.

Hi, good afternoon. I have one question. Lately, the Ministry of Communications, they published, I think, a positive decision regarding the wholesale tariffs. and I was wondering if it's included in your guidance because you provided your 2029 guidance before, sorry for my child coming in, but you provided the 2029, sorry, the situation here, no kindergarten and no school. So you provided the guidance for 2029 before the positive outcome from the Ministry of Communication regarding the tariffs. So I was wondering if there could be a potential upside for the numbers.

First, the kids, feel free to join us. But given your level of knowledge, there's no need. To your question, we did not include the wholesale rates in our guidance. We do not see significant impact, as we mentioned before, to the wholesale rates on the basic, given the lift of supervision going forward, and given the fact that most of our wholesale customers are on IRU for the next 20 or 25 years. So we do not see a significant impact. We're glad that finally the MOC is adopting the global standards and removing the whole set of regulation going forward over a gradual two, three years process. But this should not have a significant impact to us. And we mentioned it before, even the reduction, potential reduction from 72 to 50 or from 50 to 58 where the hearing ended up, it's not a significant impact to our results.

Okay, thank you, Serena. Do we have more? We don't have any further questions. So at this time, I would like to thank you all for taking the time to join us today. Should you have any follow-up questions, please feel free to contact our Investors Relations Department. We look forward to speaking to you on the first quarter of 2026. Thank you all.