Q3 2020 Startek Inc Earnings Call
[music]. Good afternoon, everyone. Thank you for participating in todays conference call to discuss Starteks financial results for the third quarter ended September 32.
Sounds like the blending.
Joining us today, I'm, sorry, chairman and CEO of single cells, and the company's C. F O hurt the mask some of the companies that's about the jeans a whole job so.
Following their remarks, we'll open the call for your questions.
Before we continue we would like to remind all participants that the discussion today may contain certain statements, which are forward looking in nature pursuant to the safe Harbor provisions of the Federal Securities Law.
These statements are based on information currently available to us.
Our subject.
I guess Rick.
Yes, I said uncertainties that could cause actual results could differ materially.
Startek advises all those listening to this call to review the leap us. Thank you and then Capel said on its website for its first summer, yes, those risks and uncertainties.
I think it does not undertake the responsibility to update any forward looking statements.
Furthermore, the discussion today may include some non drowsy E Messrs.
Well you answered regulation G. The company has reconciled these amounts back to the close of D.A.B. based measurement.
The reconciliations can be found in the earnings through the investors section on the website.
I would like to remind everyone that a webcast just wait to be after this call will be available via the investors section of the company's website at www <unk> sorry, the dotcom now.
Now I would like to turn the call over to Spartech Executive Chairman and global CEO. Upon the school. So sorry. Please proceed.
Well. Thank you rose dog food, often don't get one parent. Thank you all for joining.
During the third quarter, we continued to make progress in our recovery from the pandemic and further improve our operational efficiency.
We have driven sequential quarterly improvement across all key financial metrics.
We generated significant your what are your growth on the bottom line.
He has demonstrated great agility and dedication in navigating through this difficult period across geographies.
Extremely proud of their hard work.
Around the world octane, because all picking up New York food string we told wouldn't argue concerns over global workforce no active relative to Threeq <unk> levels.
Looking either remotely or home waterfront the liberty campuses.
Good hi, good remote model, it's not only for CBD.
Coke.
I'm 50, but ultimately growing the already high quality and efficiency of outperformance.
The month since we implemented this model ops and doesn't have decreased and our star cloud Omni channel platform has enabled us to facilitate seamless remote work for Ti.
You know, which led to customer experiences for applying big lots.
Rob you we'd be on later in the call well give you some more additional context on a digital optimize it shouldn't be shooting as well as our long term vision for a hybrid model.
These operational improvements have allowed us to expand the scoopable for work within our core verticals and launch new client programs.
And while carefully managing our costs, we don't start small technology. The digital solutions. We are using have become a key competitive advantage in how we go to market.
Well, that's what line programs, we currently have in bucket.
Rubens good month, with an ecommerce healthcare telecom and banking and financial services as well as Reits trading in food delivery services.
Prompter duct lines to more food and beverage evolving digital offerings.
We are focused on deepening our digital footprint within piece and all the cool what he goes and continuing to solve as an adaptive and highly technology in a box not walked logs and prospects.
The progress you're breed this walter getting strong financial and operational position to maintain our momentum.
Our business has proven resilient, even the most challenging in box all the pandemic and get the betting for the next stages off on long term growth strategy.
The foundation views blades will allow us to continue evolving our services.
Improving our position as a you know would be struck the ball to look like.
Before commenting four door I would now like to turn the call over to our CFO rubbish gone up to pick you switch topics financial results for the third quarter rubbish.
Thank you accrue.
Jumping right into our results.
Net revenue in quarter, three was 162.7 million up 14% from Quanta, who.
I'm slightly down from 164.6 for didn't go to where Youre.
The sequential increase reflects all of the comedy from my number grew due to drop downs in many other geographies in quadrant cool.
On a constant currency basis, net revenue increased <unk> percent compared to the prior year.
Gross profit for the quarter was screened for nine.
Which is a 45% increase from corn to cool.
And down from $28.5 million.
Gross margin was 14.1% compared to 11.1% in corporate <unk>.
And 17.3% in the Euro to go portal.
Similar to our top line the gross profit and margin increased from quarter to reflect our continued recovery from pandemic.
The Yodle your decline you said, it's not the outsourcing.
Correct and communication expenses, partially offset by lower traveling in the Q1 call technology driven productivity improvement.
Selling general and administrative expenses.
For the quarter were 14.9 compared to $14.6 million for gold and 22.9 million into Europe.
Portal.
As a percentage of revenue, it's windy grew to 9.1% compared to 10.3% last quarter.
13.9% in the auto book work there.
Reflecting the sustained benefits of cost reductions, we have implemented or the last one month.
Net income attributable to start picture orders for the quarter increased coupon.
Or one cents per share compared to a net loss of 5.2 million on a low end centsper share last quarter and a loss of 2.8 million.
All seven cents push it into your <unk>.
Adjusted EBITDA for the quarter was 15.6 billion up nearly 80% from water cool.
17% in the you had a good quarter.
As a percentage of revenue.
Adjusted EBITDA.
9.6%.
Compared to 6.2% last quarter.
8.1% in the Euro.
The increase was primarily driven by the aforementioned recovery from the low so that'd be last quarter as well as cost reduction and prudent expense management order last year.
From a balance sheet perspective, I took the number could be oh gosh unrestricted cash.
Pretty slightly to 6.6 billion compared to foreign corporate debt at June 30th went deeper in.
The increase in our cash balances was primarily driven by continued to control costs.
I'm working capital improvements and before that we will be agreements.
2 billion of which will not repeat in November.
The total debt at the end of the quarter decreased to 136 million as compared to 149.9 million.
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But I'm really due to lower drawdown.
The warm and working capital facilities.
Hi, This is Doug.
<unk> did accept from what could be a different view was that they've used to 79.4 million compared to 93.5 minutes I do go different different.
We remain comfortable liquidity position as it stands today and we will continue to carefully manage non interest expenses and other costs.
Preserved the optimum efficiency off on operations as.
As we want to go to improving trends in our business and that you want when conditions are not so different than me.
We aim to begin reinvesting in both IP and on I T capital expenditures over the coming quarters.
These at least than it was.
With support for those technological enhancements and he's built up on sales and marketing.
We will have more concern on these initiatives on future calls.
We look forward complementing the operational groups, we have already made and further positioning our business for future growth.
This concludes my prepared remarks, and I'm not going to go under water budget that you own.
Thank you rubbish.
As approved discussed earlier, we have made significant progress optimizing both our digital service offerings.
And the flexibility of our overarching operation structure.
I'd now like to provide some additional detail on these initiatives and the key goals gig blade and stylistic long term growth strategy.
In Europe, our revamped digital services.
Star Cloud technology.
He has been a crucial part of our continued response to the Bang to me and enhancement of the services, we provide to our clients.
Star cloud exotic skin house unified.
Oh that enables our customer engagement specialists, who walks and walk you from any device.
That's my computer foam or Catholic.
Yes, the floodgates a campus in the cloud that connects talk team members across multiple geographies.
Florida.
Black foams, IAI capability, including Thunder occasionally check ball.
Well, how does love the quality of our global services by monitoring employee productivity and generating walking matrix default at the end of each one.
As I mentioned, we're already seeing increased attendance in productivity amongst our work force since implementing stockpiled.
For our clients.
The stock cloud platform integrates a variety of automation and omni channel options.
Correct sensitive data and deliver seamless customer excuse me.
Our security solutions on E Bay neighborhood, and the CIA and HIPAA compliant.
Featuring into anything that encryption facial recognition systems, one of them box and centralized conduct monitoring.
And show that won't breach is out there you're not customer interaction.
Start club also includes E learning tools that allow clients to expedite getting done on employee onboarding processes and receive additional support plug and walked walk infrastructures.
Taking together these.
These capabilities are readily inefficiently addressing our clients' evolving business process management.
Stock levels should alleviate self service offerings beyond a commodity based services, they're not typically available.
From RBC.
You bet. It goes we have developed an innovative scheme liberal ang visibility platform that can evolve we dark line.
As well as the changing operational needs of our global team.
Since introducing stop cloudy water do you.
It hasn't been at the Florida up how we have supported our clients throughout the bank.
It has also become one off our defining dedicated bought into June and visit being at the forefront of our sales and marketing strategy going forward.
Far though.
These digital offerings are enhancing our margin profile would each incremental lead battery side do.
Yeah. It allows us to drive sales and improve the stickiness of our flights relationships, while providing us the last the city the take on higher so this won't even without a proportional increase in S. unit costs.
Eating a very attractive logging for our business, which all operating leverage.
As we think about the logo on the evolution of our work environment.
Even boast family.
We believe the hybrid work the more what structure. We currently have in place if you have to see.
Accordingly, we have recently introduced our physical capacity by nearly 10%.
I'll stop cloud capability now allow us to develop business continuity without meeting all of our team members will be based on a physical campuses.
We will continue to evaluate the proper mix all on campus versus remote work and adjust our physical footprint accordingly.
This transition to greater reliance on the campus in the cloud.
As long as a part of our long term road map.
Implementation.
Was accelerated by the bank.
With the operational improvements we have made over the past few months, we have the agility.
Ricky adapt to any changes in lockdown status August so Jason COVID-19 cases occur.
All the geographies that you are not presently.
Our recent operational shift in Malaysia is a prime example of how nimble our organization has become.
Well go with Jason's began to spike.
In the following number region, we successfully pivot gigawatt total Malaysian look foolish was 70% work from home and 30% on campus model within 48 hours of color on boards reinstating locked down although that was announced.
Prior to the announcement, 70% of our team had been on campus, we don't get 30% working from home.
Ali Baba Lucky to slip our operations so quickly without sacrificing sell the service quality is a testament to our team's dedication and the regimen so far strategy.
Hopefully it is clear that we have made phenomenal progress in improving the quality and efficiency of our services.
And we now look forward to unfold and executing on these initiatives in the quarters ahead.
With that said.
I'd now like to Boston College basketball.
For his closing remarks.
Nope.
[noise] approval.
Hi, Thanks Rajiv.
As we continue to navigate this evolving market environment through the fourth quarter and 2021.
We are confident in the strong organizational foundation, we have established.
The health and safety of our global team remains a top priority and we will continue to closely monitor the status of markdowns and will be 19 cases across our geography.
While we cannot predict how the market conditions may change in the months ahead.
The flexibility we have built into our operating model keeps us well prepared for any message for the organization be but that's there.
We came in 2020 with a strong global footprint dedicated team and strong operational efficiency on our progress throughout the year. It has both started these fundamentals and created even greater long term growth potential for our business.
As we make additional investments in our technology sales and marketing, we can expand the depth and breadth of our innovative digital solutions to further differentiate stopping as a value added and innovations like Parker.
Across their organizations, we will maintain our financial and operational discipline and focus on supporting our clients evolving digitally.
We are proud of the momentum we are generating and grateful for the support of our team and our shareholders have before to transform our business.
Roads, though we will now open the call for questions.
Yes, Sir at this time I would like to ask.
At this time, if anyone would like.
Asked a question you May press Star one and then the number one thing that telephone keypad again, Thats star one of them the number one on the telephone keypad.
Anyone need assistance at any time, Please press star zero and an operator will come back online to assist you.
Oh for just a moment to compile documenting roster.
Our first question comes from the line. This is Dave Koning from Baird.
Your line yeah.
Hey, guys congrats on a on a nice quarter.
[laughter]. Thank you.
Yeah, Yeah, and I guess, you know first I had a few questions. My first one is just on verticals the telecom vertical.
Vertical opt for the first time in a while was up nicely sequentially and then E. Com was down about 15% year over year, maybe just talk about those couple of verticals and kind of what what you're seeing there.
Rather you really take that question.
Sure up or.
Hi, So yes, you know amongst the verticals telecom was Ah Ah.
Good to see a spike in demand and we did see a sell off our other verticals like healthcare.
Yes, I am.
And ride hailing services agile soul food delivery.
Hawk E. Commerce has also now stocking data showing up a major picked up and we expect this pick up the country you have actually moved forward because that.
As he candace brick and mortar retailer takes longer and longer to actually gets back on its two feet, we expect or the subjects in one new the thought of being almost where it goes.
Okay great in.
I guess my second question revenues were up 14% sequentially, but operating expenses were hardly even up I mean, it's a tremendous amount of leverage you're getting right now how should we think of that going forward like are you pretty well maximize right now that if if revenue goes up from here, we'd start to see expenses.
Look somewhat too.
Yeah, I won't say far should be I mean that is how the invention was ended when we embarked on this sees himself operational optimization. The idea is to bring the company to 11, which is very efficient and then after what happens is that the more growth do you have a the incremental margins that you get is.
Higher and therefore at a much better SGN expenses you.
You delivered more cash and more profit so that is fundamentally the pieces. So it should be worked on and it took a while almost oh your to get us to this level and if you see a the yellow book water or even $2019. Its unit costs were at about 22.9, So that's come down to about 14.9.
The advantage.
He has been many fold and specially specifically this quarter as Rajiv mentioned, he's like be out is that.
We had some advantages off of having a pretty broad absenteeism and the productivity was higher or doing the work from home Bob.
Activities that people are performing so overall I think it's a fair assumption that going forward as growth comes I mean, we will see different acai, they wouldn't be an expansion and overall profitability for the company, but at the same time, we will continue to invest a four hour growth. So therefore, even hire more people in sales to me one thing.
Besting some technologies so.
It does not necessarily have to hunting fishing in backed off those into profit, but yes, I mean, it's a very good guidance to have that additional revenue growth will significantly improve our margins and talk profits.
Okay, great. Thanks, and then just one quick one the Noncontrolling line was actually quite big and I assume that's because there was probably a big profit pools somewhere, but how should we expect that to fluctuate or what what's like driving that up and down.
I just didn't understand the last part of your question can you repeat that.
Oh, yes, sure so the non controlling.
Income you agree with that.
Uh huh.
JV in Saudi and lead to more along with the profit streaming then heard a good quarter on school and that his wife, a figure that is higher than Bowman.
Barker normally back we're going to be too much.
Okay. Okay. That's helpful. Thank you guys good job.
Thanks.
Okay.
Your next question comes from the line of Soc that come in from B. Riley security.
Hi, Good afternoon, guys said that yeah. Congrats again on the really strong quarter here. So I guess just starting up for me I mean can you talk about some of the expansion wins or are some of the new client wins that you've had over the recent months I know you can't talk to specific clients, but can you talk to maybe some of the verticals, where you're seeing some strength in and what's really driving.
Your your success there on both fronts.
Let's see I can only tell you that the <unk> one one big competitive advantage through we had was a hows that is extremely efficient and resilient and Rajiv mentioned about that so that has basically spreading the word or two.
Who are blind people systems that they feel pretty proud of us and that will be gone could adopt a sign that for not.
Not only are we going to potentially get up some more existing volumes so from an existing customer, but our sales team led by Rick Freddie has been able to drum up Ah.
Some very interesting be bike line off which we closed about though two programs you want is for the U.S. government work and other is for a healthcare customers and a few other health care clients were getting active consideration and you had been down selected in some RFP.
So overall, we are clearly seeing that health care is going to be very clear focus area for us and Rick is driving that just to give a little bit of background a rig that he comes with a significant bump a pretty early experience and he is he has a very deep understanding of this sector.
And if you look at these spots to track record of the companies that had built health care was one of the key verticals that he has very deep knowledge. So.
So clearly seen a momentum on that front. So yes. Overall, we have closed two deals signed a really good ones teaches off having dialogues with some more healthcare providers. So that momentum has started to.
Oh.
We have also seen a very interesting growth are coming from.
India and some of the geography is where he took over where people they're using more off the in house centers now they're open to outsourcing and Bendini has talked to people a lot of things. So one is if you are not ready to do it all by yourself. It is good to use a partner and hot at the Liberty to transition clients to a start up.
Back from that Roger mentioned has given us added confidence to people, who like he dako thinking that they even do it themselves and now looking at AOS and relying upon us that people do like glad somebody to this very interesting question and the momentum that you're seeing in the marketplace.
I hope I think you've covered most affect us, but yes. The you know we acquired a dual renewables.
During the quarter and and added a line of course you know.
Got it goes to Rick for having a broken those out those liberals, but I think oh.
A lot of credit goes to our operating teams on across the globe that I've made by our chief of Dolby Chief operating officer of money you have to do.
And ER and how he has managed to help us navigate through to the last quarter. So Ah. So yes, I think we are very bullish about what the future has to offer but ER approved nothing more to guide I think you've covered most of it.
Yeah, Thanks, and I think that's a really good addition, Rajiv you mentioned that Oh in this business a existing client and a existing business and new business is one of the fundamental.
Lever for growth and Marty you on teams globally led back then that was a very good uptick that we've seen.
Understood and it sounds like a under leadership of rig very our sales team has really got some nice success. It sounds like you're planning to make some investments in that area. I mean can you comment on your current sales capacity right now and how you feel about the ability to serve the demand that's out there.
Yeah, I think see sales leaves something or is not necessarily a signs I mean, it's it's a combination of the amount of leadership that you get and also the quality of leadership that do get bad sales Ah mainly team people think it's all about numbers, but I strongly believe that you feel.
If you have the right quality of people with the right understanding.
With the right going back on the right up I would say a relationship I think one sees it resides so early on how it worked out just wanted to caution that sales are in this industry has a long sales cycle because that is a long process that goes through evaluating a beep your vendor unlike a golfer.
I think on a self sourcing because this is the single most outsourcing which means a customer he's hanging over his most precious line saw at the hands off hours and therefore, there is a lot of diligence that goes through the whole process. So why because as long as we have decided that we wouldnt hire the right people and Rick.
It's driving that we are going to invest in hiring more salespeople, who are qualified who have been and does that at.
And also get clearly seen that though with our footprint today, we have the ability to all four are the same.
See wide range of services, either you want to do your onshore work you want to go off shore you want to go near shore or do you want to do cross short, but we are seeing in Malaysia, very interesting I'm, having people from other parts of the Asian region gotten got aggregating and militia supporting multiple languages. So these us all the capabilities that.
Do we have put together and end of the day I mean, why the salesman tries home business up the business thrives and grows because all phenomena leadership by the operating team.
So I don't just look at sales independently I look at a combination of sales and the operating capacity and operating and then the D for starting up supply and then doing a stellar job. So the customer gets confidence and gives you more so that's that says how does investigators involved a and I.
I think that we have to believe in one single team, while we have hung doors and salespeople, who will get new logos to the door.
It is also important for farmers, who already have existing signs and ensure that they have drawn. So we are having this combination of hunters and farmers and having a razor sharp focus on each one of them and I always still the story that do you need to have a great store front. In addition to having a good bakery so.
So so we make good cakes, but we didn't need to have a storefront to take it down sales guys are not counting on it shows our parts sales team our business development team. They all take it out to the marketplace.
Understood I appreciate the additional color and just a final question for me geared toward Rajiv I mean with the launch of your start pod platform and all the capabilities that you can right now can.
Can you comment a in terms of the changes in the mix of volumes that youve seen coming into.
Yes, your agents versus kind of the prior voice volume versus the pandemic I guess prior to the pandemic excuse me. So I am just kind of curious so the amount of digital channels that are being utilized to serve customer needs now.
Sure run he really great, especially for that.
So to me that's a little.
Ah So that you know it's still a work in progress a large amount of this and obviously a beef.
[noise], which did you can is being adopted is changing.
Good almost by the week.
Locked up but if I was to give you a brief coal were divorced from where we are today approximately between an optical.
Let's talk about Cody. Thank you now India adoption off a different Oh, Gee I lose that comprise our digital strategy.
You know a big show, which now Ah that now our agents are a enjoying so upsell if I was to hazard, a guess agreeing to 30% range.
Understood. That's helpful. Thanks, again for taking my questions and congrats again on the strong quarter.
Thanks, Thanks Jack.
Our last question comes from the line of Omar I somehow that's <unk>.
It's a <unk> private investor Your line is open.
Hello, guys how are you.
Hey, Mark how are you doing.
Good good impressive quarter nice to see that that EBITDA margin.
Bumping into the 10% threshold very very impressive.
My first question. It's a you know regarding your I read into India, and the Q that that 50% of your workforce is now work from home around 40% of your facilities and I did notice that the Canadian facility did not renew.
On the lease so is that something that we should be expecting going forward.
You know I guess, you know facilities not renewing as the leaves come to expire.
You know what the best person Dawn, so I'm off to mind on this sativa [laughter] approved why is it that I have to answer on the tough questions [laughter] Oh, Okay. Let me, let me give it doesn't let me give you.
A little bit of that often and I feel what that someone in time I leave I am Lucky that there is not a problem no, yes, but he's glad he's right [noise].
Donald I was saying that the Omar.
Oh, sorry.
[noise] Oh, please go I didn't glut.
No doubt about it but.
Okay.
So oh my we've like like I mentioned, you know, we've given up up almost 10% of our double capacity.
And and we firmly believe that that the hybrid model is here to stay and I think we discussed this on the last earnings call also in our opinion considered opinion, we feel that number would be roughly about 25 to 30, but famed work at home.
And in about 70, 70 type the same brick and mortar or obviously the numbers could change.
In the event you don't.
Dave there's another wave of the fact that they've got to come can strike stuff like Oh did slow we feel that the 20 hydrocarbons the thing because they're going to stick number.
Accordingly, what we've done is we've we've read drawn out capacity map and we figured out there that are that he could give up some selfless capacity as it keeps coming up.
So so obviously its contingent upon on it but if you do get all of those contracts, which basically means.
The news is not coming to work for them and a and Canada like you rightly pointed out we've we've just given it up and then we moved 100% of the work force to work at home solution do.
The weeks that.
To give up more in times to come absolutely, yes backed up it's difficult.
Right now to give up a a number I'll put a finger on the positive number backed up but even if you look at leasing do rationalize capacity, thereby also rationalizing costs. So that actually that can continue to shop independent food into fourq as well.
Very good very good and you know that that also brings another question because obviously you know the company throughout the history of the company is always tried to focus on higher margin business, but you know when you have a situation where your cost structure could actually shift.
Nowhere as these changes happen.
Does business that that otherwise you would decline due to being on the lower side of the margin will now become maybe more attractive to bring on given the structural changes.
Well I'll take that question. Let me first tell you that up that has been done I think you have heard about this company about we'd be tight grading and therefore high margin business and to go grading.
I strongly do not believe that there's something called as high grade and low grade I mean, we work with some of the customers and the outstanding customers. The idea is how do you become extremely operationally efficient as an organization.
The end of the day price at some point in time is determined by the market forces. So it is important for organizations to have what I call. This cost leadership. So at the one hand do you need to have cost you to shoot and on the other hand do you need to have phenomenal ability to innovate and come up its service offerings.
Today, I think as a management team and I'm very proud off the entire management team that has led to these pieces that every customer that can swing door is a precious customer. He has the ability to grow and he will be with us if we do a good job so.
So therefore, all of U.S.P.M. and he will become more profitable ones you look at Youre operating capacity and so on so forth yeah.
Just to give you. An example, I mean headed up Philippines infrastructure all for one large building that was vacant for a long long period of time some action when it should have been taken so what they've done is they've looked at capacity with a magnifying glass and I said the Rajiv is a must have mine largely because all staring at each other we had any way they can get.
Our city at the same time with pandemic people working from home we looked at each other what should they do so we took all that let's go back to a more delayed weekend being optimization not only in the capacity of her organization, but also the manner in which the operations are done under enrich efficiencies are.
Unfolded using technology by looking at the finals, so footprint off our ratios all fingers and abandoned monitoring, which we checked quality the mining, which you manage hiding brought this odd to ensure that you are trying to be like first time, all the time. So if once you do those I mean, you eliminate waste.
Stitches. So it's not that you entered into sitting on a logical structure you can actually bring a lot of efficiency. So once you do that we believe that will be the kind of flying provides we have each one of them are precious to us and there's nothing like a high grading or how much you know little much in customer by and large in this business customers pay you a.
Feed which is off a certain threshold that the abilities to manage it well.
So therefore, we are revising we had pretty happy with our existing set of slides. We have also seen clearly momentum off some of that lines that we are pursuing.
Having the ability to pay us more because of who we are and the kind of stuff that we're doing so.
So I would pick up a bit.
Digital offering as a competitive advantage and get that budget pricepoints style and knocked by going after the flying to give us more I mean, we should be able to come onto more because of what we do and that's the strategy. So it said he bought it inside out as well as an outsider.
Very good clear very clear okay.
Obviously, you guys are showing growing EBITDA margins are much much improved <unk> ratio I think wed probably around one and a half times leverage ratio is.
It seems to me like a perfect recipe for a successful refinancing at some point, it's not stealing your and your target and maybe you can share any status on that.
Ah, yes, I'm actually it onto this question, but I can only say Omar it's a very good top but beyond that I don't have any.
Any comments to make 'em, that's what I'm actually wanted to give some idea to Omar.
And for <unk>, how are you.
I'm going to talk like correct.
Your parts on absolutely right. It's just dr. broke that out for bid.
No bankers have been asking for it so we're going to talk to them and see if they create the theme I viewed or just all [laughter] definitely something we are thinking about it but we.
We were waiting for the results to come out and calling for bankers.
Very good fair enough fair enough, Okay, and I also noticed a.
Very impressive revenue increase in your middle east sector quarter over quarter around 21% I was wondering if you could comment on that you know what drove that.
See I can I can give you some idea on what's happening on the lease side or do they could look at Saudi Arabia. It is.
Surgeons into a.
30 different economy, and ER, we are pretty proud that that had a lot of women who work in Saudi Arabia, we have been one of them Flyers off a very large number of them in Saudi Arabia.
And today and consumer experience is also becoming a key competitive advantage. If you look at Saudi Arabia market. It solves itself, but now it could be become an epicenter for kind of Arabic support for the middle East and vision.
Because of the stability and a very high quality infrastructure and the high quality talent that exists there and.
And you'd be very surprised that there also multi beam going possibilities are that can be possible out of Saudi Arabia. For example, one very large retail blanketing and start their operations in a center.
So clearly while STC is up a one of the principal blind in the joint venture, yes, seeing momentum off other companies, who have been zoo more service and other back office related services that can be decoupled from the internal expensive cost structure to more efficient service provider.
So you should see our joint venture is a ti and leasing a lot of momentum in the marketplace. So a we will continue to do that and I see that the refocus and the idea was to make this as an epicenter for a middle eastern that'll be support and multi lingual Arabic support so.
So now that are led by month through them being bid and so they're already working on that hopefully we will be able to Indiana momentum but of course. He has this sudden such that you have seen is because we had the onboarded a blind and that was the reason by improved Oh, we will see how it goes but yes, we are.
Are you optimistic on here very hopeful of some other possibilities in that region.
Well were very good very good. Thank you guys for taking my questions and congratulations on a great great quarter.
Thanks, Thanks, Omar Thank you Omar.
At this time. This concludes our question and answer session I would now like to turn the call back over to Mr. single that Sir. Please proceed.
Thank you rose and thank you all for joining US this afternoon and for your continued support of stopping.
I look forward to speaking with you next when we report our fourth quarter and full year results.
Thank you.
Thank you ladies and gentlemen, you may now disconnect.
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[music].