Q4 2019 Earnings Call

Allow me to remind you that certain statements made during the course of the discussion May constitute forward-looking statements, which are based on Management's expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ including factors. That may be beyond the company's control. Please refer to our filings with the Securities and Exchange Commission and our breakfast and then call is our finance team who will provide updates. Are you over the phone before and after you on our strategic priority, I wrestle of our CFO we afterwards discussed the importance financials an hour for the next and then after that we open the call to your question, please go ahead.

Thank you. Good morning everyone and thank you all for joining us on today's call first. I will describe the cost.

Close to South and nineteen after making significant progress on developing a strong competitive position second. I will update on progress on such initiative and how they are being reflected in our financial results following my comments. I will return the call over that though for a review of our financial and operational highlights of the quarter as well. As our outlook for the first quarter. Then I use quarter and full-year 2018 were both challenging and I am pleased with the progress. We made executing account off our strategy. Let me start by discussing how these actions ties to our competencies described during our investor day in, Georgia.

First value proposition for customers and partners in 2019, focus our efforts on developing a very valuable for our customers which entail multiple benefits we have developed a strong portfolio of negotiated rates. We have become a more customer-centric company. I'm not complaining the claim through every step of the travel journey and we have developed a process of payment Alternatives of the partners front. We are the perfect partner of choice one parent company you for a robust travel-related partner in religion examples are many we will go through some significant ones in the next few months.

Efficient customer appreciation of attention used to our continuous investment in branding we have had many achievements that have not only helped us off navigate the current industry challenges but also provide us with very margins as 69% of our traffic comes from State sources importantly is to for forty-two percent of hours and Saxons were done through our mobile plus which is more cost efficient way. I'm remote loyal be among our customers in class digital product to maintain our living wage, you know that the user experience has to be acceptable in this Regard in 2018. We deploy over 4,600 initiatives. Yep.

I will have to develop.

Chatting had a couple of meetings such as interfaces vulnerabilities and the offering or a different Shopper experience by signing off for Rapid as a patient local market allows us to read the first option when a customer is beginning Dodge Journey as we know and understand what they are looking for, hence. We can meet their expectations. We can do these sense to our strong law allow us to react to market dynamics quickly to the creation of other commercial events during 2018 to investigate in strengthening our teams in Brazil and Mexico our portfolio of banking relationships allowing this regard to maximize its local impact additionally dead.

the understanding of the local

Ardis Customs allows us to create a loyalty program that fits the aspirations of the Brazilian customer.

Allows us to streamline processes with banks and financial institution. I thought you said we can offer a wide variety of Payment Solutions to our customers additionally having such processes also translates into extreme low value for you. Right? So now our site and look for an Arrow's by way of example of what we have achieved on the payment front in the Andean region, 21% of sites are completely through alternative payment methods. Also, we are only platform that offers beliefs of powerful Arrow fueling online in Brazil song. She just strong financial position to lead industry consolidation Our Song balance sheet has provided us the flexibility to rapidly adjust to changing macrocosm.

As well as people.

You selectively acquisition targets and the price in the full belong some value you see for the contact.

Movie make like for 2018 and today in 2020. We have continued strengthening our competitive levels.

Most importantly expand our Geographic and close platform presence through the announce a decision of business days earlier this year. I will discuss this later in my presentation.

Also available a new white-label through a commercial agreement with agent.

In sales of higher-margin packages hotels and other products which account will for a greater percentage of our total sales tax 18% in practice transactions opportunistically increase our customer fees in the quarter helping to drive Revenue block internet gain market share in a free market.

Sorry.

You have also made on our strategy increasing 466 basis points our percentage of sale fax or mobile app for our phones on continuing to provide an excellent value proposition for our customers to log our loyalty program in Brazil during the fourth quarter and the sequel to quarter-end will launch our co-branded credit card with Banco Santander Bank and Visa overall. We are encouraged with the progress we have made in successfully executing on our key strategic initiatives even will take into account the whole of the macro environment. We have been operating in during the past two years.

moving next to the discussion of the sections and

We are smoking outside is 5.

This was not without challenges including social and West which car traveled to and from that country and the owner was stationed in Argentine implementation by the government of a new 30% tax for international travel purchases also in positive thoughts in that country the impending start date of this tax in Argentina those customers to accelerate the travel purposes ahead of this tax implications driving strong in transactions in that country as we have been able to do successfully in the past. We were also able to walk you make adjustments to responses changing market conditions and opportunistically act on our business levels contributing to strong increase in Gross.

on revenues

Don't Saxons were up 7% in the quarter with such as packages hotels and travel products increasing 6% and 5% respectively here over a year.

The grill in North was driven by a 18% increase in stand-alone packages. Once again, our fastest-growing caller name is also benefiting from the acquisition. And once they they expect this to be an important contributor down 26% of an SX noodle basis as reporting 6%

These better than English performers is reflective of the success. We are having by staying focused on our key strategic initiatives even as we fail home challenging market conditions moving next to make things where I will discuss some of our recent business initiatives.

Event for us here in the first quarter was our first panelist investor day where we outline and a decision criteria and our key strategies see Wednesday. We have been very busy and the new year has only just begun of the next two slides. I am going to discuss a few of our recent events and how we start our brunch starting. This will be our second largest acquisition today. We have already held a conference call to discuss wage. It's action on this line. You can see the key points about they say today I will discuss how this fits into our overall strategy.

I would like to Mexico for us on the front. Wednesday is the second most recognized off-brand in Mexico after this so not only expand into an important Market, but we will also be acquiring a well-read further strengthening our leadership in terms of brand awareness. We will also gain approximately 190 kiosk may continue to build out our cross-platform. The company strategy is extremely high based business model is languages got this day is primarily an online company. We are approximately 70% of sales generated from this Channel and ninety-five per-cent of revenues is dead.

Hotel another travel products originally we are very excited about gaining expertise in in the financial services and ground transportation from Wednesday and Thursday actually rolling this out to other markets where we already are seeing high traffic growth.

What we we got a business overlap providing the opportunity for both companies to leverage each other's strengths the day off today a white level Services one platform for mayor travels lenders and an online aggregator servicing travel agencies worldwide with a unique core competence.

They account already strong presence. I'm offering and combining the expertise in in destination services and hold off for you. We actually enhancing our value proposition similarly as in Vestor day. We are just spoke about our competitive levels. Let me talk about how long we further strengthened our value proposition customers will be enhanced as we increase our inventory and new capabilities and product offering a single local market knowledge of the Mexican market particularly related to indignation services and best day will be from this big-ass low-cost delivery model. You just customized to meet the unique needs of the last time travel further leveraging the speakers operate this game.

We are extremely pleased with the service issue. Not only that complement our existing business in provides growth opportunities via new policy.

Additionally expect to achieve operational synergies. This is a significant milestone in our consolidation strategy and in our goal to continue expanding our operations in math.

Moving next to it's like seven where I will discuss provision commercial agreements Department of choice is something important for us. We have spent over two decades investing in building our brand and evolving into the living of these leadership position is not going unnoticed by other leading companies and we are Department of Charles when they are looking to finance to enhance their products or services for customers. It is the same to us off you can get full support there. We launched our loyalty program in Long Island loyalty program some of the Kia started advantages included belong to the fire and not to the passenger allowing for faster Point circulation. Yep.

single account

Can be converted into any product that is part of the extensive inventory solid dispel. There are no blackout dates, which of the Dead lawyer will benefit even further by partnering with Santander and Bishop. And the credit card and have even more benefits to our loyalty member using the program. This car can accumulate points with one person on the credit card and we took membership problem.

I recently utilizing our son ID capabilities we were able to make signing up for this new card as simple as one click on our website even before making this first travel purchase. Our loyalty program has been well received by customers. And today we have already accumulated more than four hundred thousand members will receive a given the success of the program which runs across our other key markets over time.

Income include a link in the power from space station is a short video showing how easy it is for customers to obtain. The current lease car with Samsung and be 16 our website.

I need the commercial agreement. I want to talk about next agreement with the heater, which is a leading brand new credit card back and we'll provide white label Online Marketplace to sell our products. We gain access to birth five million potential new customers that were know our last customer base along with the potential new clients. We are expanding our business be across Channel platforms. I know turn the color of our financial results. Good morning everyone choice on a regional basis overall. We reported higher Global growth rates across our key markets both a supportive hand on an effort neutral basis.

I would like to Market in October transactions for taking into account that 7%

Change in the in the quarter and the results sheet in packages from International to domestic.

No reduction in International Air capacity in the fourth quarter transactions in this market, you are at 2% earlier with tax increases of 7% in Gross bookings and 5% in a FPS on and off reported cases of beans and peas with low single-digits reflecting the currency depreciation.

Argentina

while the country remains impacted by the overall recessionary environment customers in Argentina Advanced trouble purchases this quarter in anticipation of a new bulb 30% Duty on residents international travel spend that begin affected towards the end of December. This drive has 30% wage increase in transactions on FX user bases across buildings were up an impressive 81% year-on-year with increasing 61% off reflective of flexibility too rapidly increase on the positive market conditions.

Reporting plus 13% and 1% in part by a 37% vehicle depreciation.

Duty advanced purchases in Argentina the fourth quarter pulling size forward as a result expect to see some contractions in this country in the first quarter.

Finally the rest of Latin America reported on 80% increase in two factions with a snoozer across booties 12% and Rising 6% report a rose 1% in your ear while reported across buildings were up 9% in the.

I need the pharmacies Mexico father supported by currency appreciation. The region was partially offset by weaker growth and even the social unrest in the country that also Drew an eight percent currency depreciation.

No turning to the on flight line.

Thursday we're also solid have a 10% year-on-year.

The strong Advanced aging Argentina. This quarter was one of the drivers behind the robust Revenue performance during the.

Continue to drive higher margin ready mix with a shell packages hotels another travel products increasing a hundred basis points earlier to 63% off veterans and retire Revenue per transaction in ninety-one.

Let me also call the thirty basis points Improvement in Revenue. Margin. This quarter will reach 11.4% the highest level of the past 7 quarters. I was calling to drive in higher-margin stand-alone packages the possible impacts from the asps an hour and flexible approach to May contribute to this good performance.

Need more than compensated. The reductions is revenue margin resulting from

implementation of our loyalty program Universal Air Supply volume boxes

No.

Was up 14% earlier meeting slightly over ninety four million and was 34% on an fx New Jersey has no margin increased 222 basis points beyond your reach 64.7%

Why we selectively increase customer sees this quarter the benefits were partially offset by our initiatives increase customer financing and installment plans in Argentina 2011 in driving conversion, my contract financing cost-benefit somewhat from lower average interest rates in the country.

suppliers and ask for more attractive customer financing options

cost of revenue for the quarter includes a 1.9 million impact on the note that early February we Outsource a significant portion of our customer service activities. We expect this initiative and allow us to obtain provinces in our cost of revenues go forward moving on to our operating expenses to change the market dynamics in the near-term as we load the business. We are running expenses position for a simple, but at the same time we are streamlining auto parts of the business.

And what time these cost savings and she needs to become more accurate?

Selling and marketing expenses excluding the operation of the as well as a one-time charge half a million this quarter sales of margin expensive won't have increased 5% to forty five million. This increase was mainly used to the launch of our loyalty program in Brazil partially offset by efficiencies in direct marketing off on a first-come basis, excluding this one-time charge selling and marketing expenses increased nearly 7% year-on-year to 17.2 million month also percentage of 130 basis points to 34%

Yes.

Contribution margin expenses account to 1 million which includes the operational costs of its stores and telesales operations.

GNA expenses 14% Union

this number excludes are two million one time charge $700,000 charges in the quarter as well as three point two million in DNA expensive.

The hire-car reflects the export rice tax on Services now being introduced in January 2019 partially offset by lower personal expense just extraordinary charges and a percentage of revenues expenses was 269 basis points accounting for 60% of that technology development, excluding a one-time 1 million service charge and the office down 1% after eleven and excluding the one-time charge technology and products times is declined by 21 basis points in earlier to 12.1% reflecting higher cost solution in the quarter.

Fourth-quarter nineteen result do not reflect the expected synergies from the decision as integration process expected to be completed during the month of 2020 so far, we finalize the technological integration of the platform or both if they are and there is nothing there for 100% off hotels inventory is available from these platform while also introducing new features. This development will allow us to better serve your needs.

How do we find the light indication we will be better position to achieve operating Leverage?

Moving on to the challenging environment adjusted ebitda was 12.5 million in fourth quarter, ninety down 10% in the margin of 8.6% Almost two hundred basis points lower than the same period of the prior year.

Taking into account two point two million seven charges across the business from the streamlining of operating structure to drive future cost savings and two million non-recurring package is late as reported adjusted TV down decline 40% in the period to slightly over eight million.

As a reminder, you'll respect or lack of exposure back in the second quarter of 1950 and recovery of the current amount.

Well, no near-term challenges having Financial results. We continue to execute on our strategic priorities developers and the company for the long term. That is my comments about our fourth quarter sales and then performance now, let me change subjects and maybe just a few agents about our balance sheet and cash flow, please move to slide floor of 2018 was in excellent shape. No long-term debt and our Capital base is strong and roll.

additionally

We generated a significant amount of cash flow and we employed a discipline return Centric approach to deploy our cash.

Operation on the software and platform development and we continue to review on prioritize our Capital means we remain committed to making their client investments in our company too long enough for our long-term success.

2019 opportunity to purchase 3 and 1/2 million shares for a total of 42.2 million and live in approximately six and a half million available under the current a hundred million authorization buyback program.

In some are strong as a solid foundation for future growth in addition to providing value to our shareholders through share repurchase programs.

I was still in cash flow from operations to allow us to continue to invest in our infrastructure and maintain flexibility to take advantage of opportunities as they may arise home and also continue to be very disciplined and expense management and maintaining a healthy balance in a self-funded growth and free cash flow generation.

So during the fourth quarter as shown on this slide off of 26% of revenues up 34%

What remains committed to enhancing customer satisfaction NPS declined fifty basis points on here in the court will be several contingencies in the air segment in our portfolio?

Include a wide range of events including the cessation of operation of a level in pool several flight cancellations and incidents that led to higher than average rescheduling of Life across the region increase the volume functions as an important for us and this quarter we delivered strong growth mobile transactions have a 470 basis-point Co near Mobile accounting for 41% of construction support our competitive position on the strength of our allow us to take actions to gain share.

which resulted in a

20 basis points increase in error market share in the quarter

we continue to get in shape even in periods of Contracting industry demand in some we are beasts that we have been able to drive solid Financial results in a challenging environment question investing in growth opportunities and also returning value to our shareholders. We are share repurchases throughout the past years have not been without some macro and Industry volatility.

Despite this we have been able to react to changing market conditions and are pleased with the results. We delivered during the past two quarters.

At the same time we are committed to execute it on our five year growth strategy.

In the near term, we expect q1 2020 to be challenging contributing factors have driven mainly by coronavirus and its related effects month including its impact on emerging-market currencies and capacity contraction and specific Argentina's these conditions have an unexpected impact q1.

although

We do not provide guidance given the current market discontinuity.

You got it goin of ours, we would like to share that we inspect the cigars to experience a low teens contraction engrossed booking in dollar terms in these coming to one thousand and twenty border.

Importantly, we will continue to focus on executing against our strategy driver our Innovation program and transforming how we engage with consumers in the digital Arena.

We'll also continue to have activity and drive cost-saving to support our investment and robot.

I will find you a gold remains intact.

2019 Second Cup results support such as

sustainable 20% local currency gross book is closed. We take great in the eleven and a half plus area and even levels above 20% off that were investigating.

Always we will continue to focus on creating long-term shareholder value.

This concludes our prepared remarks. We will now take your questions operator. Please open the line for them. Thanks.

We will now begin the question-and-answer session to ask a question. You may press * then 1 on your touchtone phone. If you're using a speaker phone, please pick up your handset before pressing the keys to bring all your question, please press * then two as a reminder. We ask that you limit yourself to one question and one follow-up. If you have additional questions, you may re-enter the question queue off at this time. We will pause momentarily to assemble the roster.

The first question today comes from Edward your mama keybanc Capital markets, please. Go ahead.

Hey, good morning. And thanks for taking my question first. Thank you for the color on on coronavirus. I don't know if you're willing to comment at this stage. But you know, are you starting to see an impact for our route bookings? I know that you obviously have a higher, you know, Leisure and package business. Do you think at this stage is it is impossible for the balance of the year is my first question and then second. I know you've taken a number of charges for streamlining at this point. Do you think that that's all the charges you'll need for all the streamlining you have plan for the balance of the Year. Thank you.

Good morning, Alberto speaking here. How you doing?

And so I dressed in your your question and maybe start with with with the one on charges. Okay. Do you know during 2020 we will continue with implementation of of the integration of the a cappella. Okay, and also we expect to have by faith the closing of the second of the first half 2020 the incorporation of birthday into the disregard group know so from that perspective. We are actually on Thursday. We're Advanced integration plans a portion of the restructuring charges that we see over there that we have announced this quarter related to that because we are looking at all these operations of all the different subsidiaries in a seamless manner. So as such we have made some good adjustments and we expect that the results of of such measures dead.

We start pouring.

Through all financial statements in this paragraph Is 2020. But secondly we will be also we already looking into the integration plan for a day and there will be many opportunities for us to capture both on the top line. But particularly on the on the bottom line level and as such we will need to we accommodate the structure, but in any case they will be all good news to to to the world story of the cigar. So for now we are on a particular let's say you want you to believe that will be a very few of those and maybe more more to come in the second quarter, but all in all respect that if there any charges were to be taken that would be a positive to to to the story now.

And then would you please remind me of the first question, please? Yeah, the the first question is on the coronavirus and are you gave color as to the bookings for the first quarter given that you have a high, you know biased or Leisure packages. Is it your expectation that it should are you starting to see an impact for bookings that are in you know, kind of two four Q. I'm not sure let's I think when you when you look at Corona and Corona virus related factors, okay. Let me start with the second one down to look at what happened to currencies to a particular emerging-market currencies since the break-in is a very good of Corona in China by the end of January. They clearly wage did affect if the currencies in the region. Okay, such you see today the real trade in close to 460. Okay, $4. You actually see a device off?

And chili again.

We are less over at cetera. So that is certainly what we certainly trading levels for those currencies that are way away from a consensus. Okay consensus at the beginning of the year what we're looking we are looking at the picture that was completely different to the one we're seeing today. So we also tend to believe that that is dead. Certainly something that will correct as the coronavirus effect in the world Capital markets and it comes down secondly with regards to the business impact home. Okay our participation if you look at all the different regions, as you know, when we have discussed with the Chinese community in the past today, our business is approximately two-thirds Latin America. Okay and 1/3 approximately that's a travel outside the region with China and on South

Keisha a very small but then as

You go into southern Europe Europe and southern Europe and the US the the percentage starts increasing so clearly what we have seen is the brakes off Rona in Europe. Okay. We have seen that our clients started passing to a certain extent on on the travel plans. And that is what I tried to reflect on the guidance. Let's say one-time guy. That will provide it for for q1 and that is our best estimate or what will be the performance for 4:31. Then we regards to how the rest of the year will shape up at this time. We are very positive very positive on the area that that that they were looking ahead with this with the interim period of of coronavirus, we're looking at continue implementing our strategy we excited with the stay excited with the results were already obtaining wage.

Yeah program housing.

App is working our ability to manage margins that has worked particularly. Well over the last two quarters and last we are finishing nineteen with two quarters in a row off ahead overall plan and we're particularly excited about what we're seeing clearly he one is affected not only to disregard but also to each other either competitors or peers of us in other regions of the world and I think we need to just go through and we are very confident that we will emerge quite strong and strong competitors given that our competitive position.

Great. Thank you very much.

The next question today comes from Eric Sheridan of UBS, please go ahead.

Thanks for taking the question topic that came up during the analyst day and and good progress in this quarter and take rates. Can you a little bit better sense of how you're seeing take rates involved in real time how important it is to make investments on the inventory of the supply-side to continue to allow for an upward pressure in take rates over a multi-year time frame them so much.

a k i d

Who's that man? Thanks for your question mean in terms of taking their rate Evolution as we always say in the short-term. We manage our pricing strategy very dynamically place to market conditions. And I think that the evolution of technology in Q4 is a reflection of how we can rapidly take advantage of market conditions to in this case increase the date range as we been saying and we stress or didn't invest Saturday. We see a long-term positive trend in terms of our Tech great, but that doesn't mean that it's a short-term issue with the objective of gaining market share. We will be more aggressive on that site. So in in in market conditions, like we said we're facing in q1 at the moment we do is very large you guys that will be much more aggressive with our Tech right in terms of other strategic initiatives and inventory wage.

That's a reflection of that based days an example of how our inorganic growth strategy.

And help us again on that as you know, not only based they have a significant proportion of non are sales that will increase our poor taste in power. But also has some interesting initiatives going on and has a hotel with that something that will certainly leverage our ability wage increase our sourcing capabilities. So we are after The Best Day transaction even more positive about the long-term trend of our day great.

Thanks good.

Again, if you have a question, please press * then 1 the next question comes from Rodriguez of please go ahead. I'm well. My question is regarding the competitive environment both in Brazil and from Global Oda. How how it behaves during the fourth quarter? And what are you seeing in the office in the start of the Year? Thank you.

Well the open morning Alberto speaking here. We are clearly we are in a in an industry as we have always discussed that is true that is very open to International competition with all Global players and Regional players being present in all the the in most of the countries in Latin America off and have been pressing have been pressing for for a long way. Okay numerous years in every case. So we we look into into our market share. Okay. We are going to say that we we are improving margins while also gaining market share as we look into the dynamic between Regional players wage and Global players. Okay there we see that in an industry in the online space that continues to grow, you know, the English that has a secular positive wage.

We are seeing that we are we are certainly gaining market share.

We we monitor performance of of our key competitors and and and the information we get and the analysis we perform is is is is is pretty encouraging but again, it is an industry long as you said open to every player and as such we we also need to have our our guard down and continued like developing all the niches that we have been developing for us the status quo in our business is continue developing new features. That's why we have the success on the app improving customer performance. Okay particular in that area is actually look at it despite the fact I'm going coming down this quarter. If you look at like all the different websites for for for claims or customer claims that they are has continued to improve its current position it position over the past quarters and and Ed.

particularly this quarter on the site would not show very importantly as looking to

How appears and how we're faring this have you our competitors? We are doing well. We also like to see a great success on the Loyalty program and believed that loyalty program today. As you know, we are we are in a period of investment because at the beginning you start like giving out the points. Okay, so you have hired if you're driving and that's a marginal impact your take great. But again that would be but we are seeing 13 to see good results from the Loyalty program on on how our our customers are engaging and and what they're dealt of their behavior want to engage in the program. We have the performance package at our platform before joining the program. So again, we gain marketshare we feel very we have a solid operation. But again, it's it's a tough competitive environment in which we feel very well so far north and you would like to view summarizes.

Thank you.

And one the next question today comes from Brian Nowak of Morgan Stanley, please go ahead.

Hi, this is Alex Wong on for a Brian. Thanks for taking the question just to First. Can you just give an update on on the Loyalty program that you seeing strong growth there? But any sort of consumer Behavior findings picture around spend per customer or frequency for a loyalty members versus non members and any implications for sort of long-term marketing spend life. You might see a better Roi leaning more heavily into your loyalty program, but that's part one and the second question. If you can just provide us an update on our Capital allocation given the strong. Thank you.

Alex hi, this is Damien in terms of loyalty programme as we mentioned during the the the call. We launched the program in October 2018 in Brazil. And at the moment we have approximately four hundred thousand active members the performance of the practice of membership the credit card since we launched the current credit card in February like three weeks ago points accumulated points, but it's better than our original expectations of our business plan having said that word of caution because obviously the early adopters of these programs are often more and more fervent other friends and supporters of the cigar. So we are looking at very positive numbers that with caution and the second part of your initial question about how long

As a reminder. If you have the question, please press star.

Like how this will affect.

The marketing spends and obviously as we been explaining since we introduced the the program the overall objective of the program is not allowed to build a new profit center around our new business around the Loyalty program, but rather to intensify our relationship with our consumers and in that way to reduce our acquisition cost and our marketing spend, so we are extremely optimistic and internet help. We are on track to achieving a benefit through a lower marketing spending in the long-term as per your second question on Capital allocation. Remember that along 2019 particularly on the South Quarter. We made some Chevy Chevrolet parties and we always wage

that that was

An opportunistic action that the company took given how they share we're in our perspective under value in comparison to a long-term value of the company and off obviously, we make those decisions in consideration of all other Capital allocation Alternatives given where we are now in terms of the public views and the conversations. We are having with other potential targets. We haven't done any of the share buyback activities using Chrome you for and that's the perspective we have for the I would say next couple of quarters.

10 to to complement. I think that we as we know we we invest in the business through the p&l through actually capturing less of a margin that we could okay in order to ensure that the company continues growing and continues gaining much. Can you share and and and and share repurchases between the the the the trade-off between these last two we believe that at the levels that we at the valuation levels that we have been able to to to get into details. Okay, we believe that it's just returned a profile getting into a name given all the positive synergies. How how how come how can we better serve our customers. And how much more efficient we can be with our expanded expenditures Etc. So you will see the company under similar circumstances leaning more given all the seniors that you can log.

Sure, a leaning more towards him.

Rather than share BuyBacks. Okay as a matter of principle.

Great. Thank you.

Again, if you have a question, please press * then 1 the next question comes from Kevin, please go ahead. Hi. Good morning. This is Emily Lebanon for Kevin. Thank you for taking my question. I just wanted to ask about how your the next shift in your business between international travel and domestic travel has been trending since the coronavirus news and and also since the new tax and Argentina on International purchases was implemented. Thanks.

Hi, Emily, good morning speaking again. As you know, the both of them was related defects. Okay, first start with related ones effects. Okay, and an effects clearly the wheel lock keys on a per-country basis because not all countries have the same as you know, breakdown between International domestic traveling what you see is domestic goes up sometimes in which month and the effects of each respective. Well that's respected country comes down and as you might imagine okay over the past weeks. Okay, as you look into all the time all the different travel destinations. Okay as the there are news on southern Europe. Okay, the the bookings on that one week week basis.

on a day-to-day

Since you have to receive booking for certain destinations coming down. Okay, so overall yes. Okay, what what feeds into the one-time guy. What can I do for this quarter and is actually what we are seeing on the trade. Okay. Well we're seeing on the trade is since January already with currencies devalue on all correlating the news and you actually see in lower relative growth be excluding the coron effects okay of the of international share and and particularly the the demand. Coming down is very much in line with where the the news work up a southern Europe Asia et cetera. And so certainly you will see in the upcoming q1 2020. Okay, you will see that the share of the wage.

Travel will actually increasing the good news for us to a certain extent.

Okay, just to to be able to a certain extent to cope with international travel that has no is more profitable for for us is that the network of the inventory that we have for domestic travel across the region is particularly strong and we're certainly benefiting from all the good work that our teams are doing on the source inside. Okay. Matic domestic destinations as well. So all-in-all. I provided some color, but your assessment is correct.

This concludes our question-and-answer session. I would like to turn the conference back over to me on for any closing remarks. Thank you operator and thanks everyone for joining the call today as usual. If you have any further questions, please do not hesitate to reach to us. We'll be happy to follow up. Thank you very much. I'm looking forward to seeing you all in our next call. Take care.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.