Q4 2020 Opera Ltd Earnings Call

Okay.

Ladies and gentlemen, this is the operator todays conference is scheduled to begin momentarily until that time your lines will again be placed on music hold thank you for your patience.

[music].

Welcome to Opera Ltd, fourth quarter, 'twenty and 'twenty earnings call. At this time, all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this period you will need to press star one on your telephone if you want to remove yourself from Q.

Please press the pound key.

Be advised that today's conference is being recorded if.

If you need operator assistance, Please press star zero.

I would now like to turn the call over to your speaker today, Derrick Neuman head of Investor Relations. Please begin.

And thanks to everyone for joining us today.

With me today on the call I have our Cote D O song Lin and our CFO Fredrik Jacobson and before I hand over the call to phone line I would like to remind everyone that and the conference call today, the company will be making statements about its future results and expectations, which constitute forward looking statements within the meaning of the private Securities Litigation reform.

Act.

Such statements are based on current expectations and how we perceive the current economic environment and are inherently subject to economic competitive and other uncertainties and contingencies beyond the control of management.

You should be cautioned that these statements are not guarantees of future performance you may refer to the safe Harbor statement and the company's earnings release for more detail.

Our commentary today will also include non ifr at financial measures, including adjusted EBITDA, which are different from our consolidated financial statements that are prepared and presented on ISR assets. We believe that the use of our non <unk> financial measures provides an additional tool for investors to a value.

And ongoing operating results and trends.

These measures should not be considered and isolation.

And what are they substitute for the financial information prepared in accordance with high aircraft.

We have also posted an audit and supplemental information on our Investor Relations website that includes historical financial results for opera, which reflects micro lending and retail as discontinued operation. We've also included pro forma results for nano bank, which we own 42% up with that let me turn over the call to our co CEO song.

Glenn.

And I will cover our operational highlights and strategy and then our CFO and proud of Jacobs and will finish up with financial and update on our investment and our expectations going forward with that let me turn it over to Stan.

Okay.

Sure. Thank you. Thank you Darrin. So like you know force just want to say that thank you everyone for joining us today and this is the only hill.

You know 'twenty and 'twenty has presented an expected challenges for many people and businesses alike.

And despite of that I'm pleased to report that despite those challenges the force called Palm oil and substantially exceeded all expectations for opera ladies.

And accelerating year over year revenue growth rates and strong margins and alcohol business and we are really excited as a company low ball the road ahead and heres why.

So number one our core business both the ultra also and Gopro Nils have demonstrated not adjusted residents box strengths.

This means we are now operating with small users and then some greater scale in all key markets seeing rental you don't engagement and that and crazy ability to monetize.

And this along with our recovery from COVID-19 impacts led to accelerating revenue growth and then even strong growth trajectory than we expected as opera and those two and didn't do one.

And the second the strength of our coal business Pizza Opera you in a position to not only benefit from our ability to create value through these co products, but to leverage that strength by investing well, we see clear opportunities for growth.

We have multiple growth initiatives.

And it's late expanding categories was high and.

Potential, including gaming payments and news and develop the market and each of which benefits from our existing market position and each of which represents significant upside.

So in combination the scale and performance of our core business combined with all new initiatives make this and exciting time for altra.

We believe definitely can and we will grow to be a much larger business as these growth you'd rather just play out over the next day with yes.

But before I talk about our future I also want to offer some highlights of our performance shell for the last deal. We have added 29 million most of the activity yourself and 12 days and from different.

Day.

We have also reached 709 million average monthly pizza yourself in the fourth quarter, it's up 17% year over year, which compelled to about 10% of growth and the salt score.

This was driven by our opera Gx browser, which exceeded 7 million and yourself into simple, it's up 350% year over year low and we continue to see elevated growth rates, thus far this year.

Opera News monetization has also reached an inflection point it has grown more than 150% year over year and 60% from pill lazy saltwater.

Our mobile users have also achieved record the revenue well and same time continuing the expansion of the user base is additionally for all most of the Banca Brussels multiple Android and also a patch that is up 18% and 51% respectively.

We also recently launched hi, it's and even but also messaging feature new ultra many and this is an example of T cells.

Our lunch in two fold and increase engagement and key African markets.

And finally, sexual and crazy and scale and engagement advertisers not only and it tends to opera.

Both have increased their spend with us so the combined sauce and advertising revenue growth accelerated to be 14% year over year from about 1% last fall. So looking ahead.

Perfect. That's all new initiatives, which are both complement and the benefits from our core processing business well country built significantly. So he was like engagement search and advertising growth and force revenue share.

Now, let's talk about those initiatives and also where we are.

I will start with our European payments and false wait and just announced the launch of the defy it's a nil and digital wallet and that will fully integrate into all but also so every day mid and low people shop online and make payments using ultra Brussels.

And the first use case for defy well focus on online shopping providing cash back benefits from more than 300 and merchants that are already part of our program.

This has a significant potential for opera so fast it will attract the men and yourself, where no new people and Belo Solti and shuttles ways integrated payments and the ability to discounts through getting cash back.

Second and more broadly this will further deepen our penetration of e-commerce, which we have done throughout 2020.

Oprah Cat and accelerating partnerships, what is that and crazy non balls, much and by offering and even more seamless transaction level into the browsing and scars and user defined as a tenant of choice.

The fact is now logging and spend and next steps and it won't be too quickly and two additional European assets and as at Yale Progressive launch additional payment solutions and this all this is such a vinyl tile and all further building out the ecosystem around our Russell and deeper wallet.

So it's very exciting and you know ganging will support bolt is another area, where we're very excited about the online gaming market itself is huge and growing sales.

And recent market research suggests that yeltsin different to the global games and market generated the revenue almost 10 times global box office revenue.

And our opera Gx, and Bausell easy walks and foster fault, but also built specifically for game ops and way out and courage by all honest with yourself.

So the opera Gx and user base has grown tremendously to be oval seven minutes and they use into simple and is meaningful and a country routine to our core business growth demonstrated by the fact that every minute and are you Ultra G X now believe us more than two.

And 5 million annual revenue already.

And we continue to invest and gaming show in January we acquired the Yoyo games, it's a long standing gaming engine, well liked by the gain and communities and independence and developers. So they believe the accommodation and foster Wheeler and gx cause lots and get them off and the well recognized Genesis.

Gaming engine ways and develop a focus well allow us to build out a comprehensive gaming ecosystem and the community accelerating our monetization potential.

You know, we would like to quite a game changer. So this is still fresh but expressed more details and the next few months.

And finally, and perhaps most important and comes on the revenue growth potential for this year, It's opera news.

So how do you all know that ultra mills hasn't been a huge success and your multi market and especially after costs.

Overall 200 million and he was also in Africa, and other emerging markets and the revenue is becoming substantial ways healthy gross margin as a direct result of all that investment.

And the market share so and at the end of the last deal weighted on efforts to replicate the success we've had in more developed markets.

Early results have been promising.

And as you know just to hold on and are you on a stand alone App and it's already the pulp and downloaded news app in several markets was very good and user engagement and.

Monetization, that's positioning us to scale phone, though so you know we are glad that our trial and substantial experiments around the AI around algorithm and data allow us to create a competitive edge.

Developed markets as well you know where do you people and all well positioned to scale well there will be meaningful I found and marketing cost and then I'll use acquisition.

And I'll build on our ecosystem in developed markets with a large and profitable content business and waves and major potential impact and all.

Revenue growth this year.

So allow me to wrap up.

Oh cool business, he's getting strong low wage accelerating revenue growth and increasing profitability.

We are using these strengths to build up beside ecosystem.

And I'll be also user base through e-commerce, and payments and building a gaming universe, and Rama projects and bringing deals to developed markets.

So we are a growing business and market no doubt himself growing leveraging the scale and since he is all about cold business weighted investments that would draw new geological opera Wild and crazy engaged and on the waste Cosmos, we've read a half Chris.

And it's meaningful upside for our company and hopefully I'll share holders.

Before I hand, the call I'll go through the I want to say that you know how excited we are about the deal and even more about the years ahead.

We've seen the potential to materially accelerate our growth rates and they see all which clearly implications for all value. So with that I'll turn I'll go to further our two continents.

Hi, Philip.

Thanks, and then the fourth quarter was very strong exceeding our expectations and placing us on and elevated growth trajectory for 'twenty and 'twenty, one and beyond.

Let me cover some highlights of the quarter and then provide some details on our growth plans.

Revenue for the fourth quarter was $15 4 million. This compares to $42 4 million of revenue and the prior quarter or a sequential growth of 19%.

Specifically and the quarter search was $25 7 million up 13% year over year and 21% sequentially.

This was driven by our record desktop users and recovering monetization.

Advertising was $23 3 million.

16% year over year and 23% sequentially.

This was driven by accelerating monetization from a per news and by strong mobile browser monetization.

Finally tech and other revenue was $1 5 million.

Year over year. This revenue category has been reduced by $4 5 million, although with almost no impact to profit as the decline relates primarily to low margin professional services to obey.

Our operating expenses were $46 4 million up 19% sequentially.

Primarily explained by increased marketing spend and a write down of receivables related to power but.

Which was a small joint venture that we dissolved and Q4.

Adjusted EBITDA was $14 3 million and the quarter.

And this represented a 28% adjusted EBITDA margin highlighting the strong profitability of our core search and advertising business.

Other items of note include other income of 3.9 million related to a cash refund of V. A T that had been recognized as other expenses over the past years.

$5 2 million share of profit from National Bank.

And $8 million increase and the book value of our preference shares and star maker and opaque.

And five points 9 million realized and finance gains on public securities held as part of our Treasury function.

All items included net income was $25 4 million.

Our operating cash flow was positive at $17 5 million for the quarter were the biggest driver was our underlying profitability.

Net of other items, including $8 2 million of share buyback total cash and marketable securities ended the quarter at $134 2 million up $14 5 million from the prior quarter.

In terms of our share buyback program, we repurchased a total of five point $89 million a D axis and 2020 for a total spend of 49 million averaging 832 per ADR.

Then moving to our investments and.

As we've discussed our investments represent significant upside potential for opera shareholders and in Q4, we saw a continuation of the positive trends, we outlined last quarter.

As a reminder, opera holds 42% of Meadowbank 13, 1% of opaque and $19 35 per cent of star maker.

Beginning with N O bank. It continues to recover from COVID-19 impact, Indonesia, and Mexico are outperforming while other geographies have been slower to recover.

Further nano bankers and the process of launching and several new markets and will provide more details as those markets begin to scale.

For the quarter Nano bank posted revenue of $46 million up 32% compared to the third quarter and dispersed $3 2 million loans, representing 239 million and total value.

Adjusted EBITDA was $13 8 million, representing a 30% margin and post tax profits were $12 3 million.

We continue to believe that no bank will scale meaningfully in 'twenty and 'twenty, one assets markets fully recover and as launches and new geographies and add products.

We expect this to be more evident and towards the middle to later part of the year.

Our two other significant investments Opa and star maker continued to experience strong growth and the fourth quarter.

In December overpaid processed a graph transection and value of 2 billion U S dollars on its platform compared to $1 4 billion and October or a 43% increase in just over two months.

Further obeys a revenue is increasing quite rapidly while the company is able to achieve profit right around breakeven despite the growth.

We expect this growth to continue as opaque continues to scale and Nigeria and expense two and additional country in Africa.

Star maker continues to scale rapidly.

The company exited 2020 with an annual revenue run rates and excess of 130 million, which was more than three times the comparable exiting run rate of 2019.

Star Maker also achieved double digit net income margins for the year and daily active users more than doubled year over year.

Now moving to our forward looking commentary.

Repeating what sung Min said earlier, our core business exited 2020 with strong momentum.

This has made us more confident and near term growth and we expect our core business growth rates to increase in 'twenty and 'twenty, one compared to this past quarter.

This is being driven by a combination of strong PC user growth opera news and monetization, reaching an inflection point and strong mobile revenue trends.

We expect our core business to contribute significantly more and adjusted EBITDA in 2021 versus 2020 <unk>.

However, we plan to take all of our underlying adjusted EBITDA growth and reinvest it into our new initiatives that song Lin discussed.

To seize the opportunity to accelerate our long term trajectory.

We believe the ROI on those investments will enable us to achieve growth rates well in excess of a 20%, 30% level and accelerate our path towards becoming multiples of our current size.

We have confidence and this strategy from the consistent strength demonstrated by our core business and our demonstrated ability to scale new initiatives, such as opera news or the Fintech businesses that we've established as independent companies and.

And finally, we believe all of these initiatives have strong risk reward profiles and the ability to drive outsized long term profitable growth.

Now getting into our 2021 guidance.

We are taking a conservative approach not including anywhere near the full potential from new initiatives, while making sure potential investment is reflected.

We believe that this will provide us flexibility to execute on our growth plans and provide investors with baseline expectations that we will hopefully be able to outperform as the year progresses.

We expect 2021 revenue of $220 million to $240 million, representing 39% growth at the midpoint up from our former indication of 25% growth or $200 million.

And we expect adjusted EBITDA of $10 million to $30 million.

In Q1, we expect revenue of 47 to 48 million, representing 18% year over year growth at the midpoint roughly at 15 percentage points increase versus the growth rate of the fourth quarter.

This will be driven by search and advertising revenue growth combined exceeding 25%, partially offset by a $2 million to $3 million year over year decline in other non user driven revenue.

Adjusted EBITDA is expected to be around breakeven and this first quarter as we invest aggressively and our new initiatives.

To wrap up we are very excited about 'twenty and 'twenty, one and our ability to build something big.

We will be investing and our future and believe we've got a great set up ranging from a core business that is very profitable with solid growth today.

Two a set of strategic investments and businesses that offer multiple incremental revenue and cash flow opportunities.

We look forward to keeping you updated.

Thanks, and we'll now take questions.

Thank you as a reminder to ask a question. Please press star one on your telephone keypad.

Withdraw your question press the pound key we do ask that you. Please pick up your handset to allow optimal sound quality and we'll take our first question from Mark Argento with Lake.

Lake Street capital markets.

Okay.

Hey, good morning, guys and congrats on a strong quarter.

Got a handful and questions.

Particular and on the advertising side it looks like there's less.

And as Bob's back nicely, there and talk a little bit about what are some of the properties.

Monetize and the highest.

In terms of advertising and through the browser.

In particular or you know some of the newest products, maybe just touch on channel, where you're seeing that strength and advertising coming from sorry.

Channel.

Yeah, So yeah, Tony he'll still I I guess, maybe I'll just comment a bit on and the general one and then food and I can't probably comment had been on the numbers. So I mean, I think you know high level and the way. You also mentioned you know Q4 result that that you know obviously, we see a very strong growth.

And you know on the news.

And you know, which is highlighted by zone by zone.

That's it you know Niels and non rights and grows along distributors and yelled at Yale and the 60% to the Salt score and so you know obviously and that's that's very strong and a balls and.

Yeah, you know, even though above the average growth of the apps right. So so but on total debt would you also have quite strong growth on the bronco as well, but yes, I think Nielsen you wouldn't have to be instrumental and we see that trend will continue and then moving into the new year, So maybe food and I can't let the continent.

Yeah, I would say overall and we benefit from a a normalization in terms of demand post COVID-19 impacts earlier in the year, giving and giving and.

And return to a two year over year growth and now.

For the fourth quarter relative to the third quarter approximately half of our advertising growth was driven by the opera news App and the and the other half driven by the browser side.

And so pool and then in terms of.

In terms of the.

<unk>.

From mini browser I know that.

And this has picked up or that product is really.

Proliferated nicely.

Are you able to generate AD revenues out of the mini browser as well and what.

What is the.

And what's the <unk>.

The patient in terms of scale and that out to other markets.

Yeah, So maybe I'll just call them and to hill, So I'll say that and it's okay. So first clarifying that of course opera mini he's actually the major lines, but also sides generating good revenues and.

And it's it's still you know because all from many of the emerging market offering. So it is a you know in intrinsically.

Intrinsically quite a big and emerging markets like Africa. So so it is already very you know very emotional engagement and a big chunk of the ads revenue.

And you know if they set asides Nielsen and ultra many itself is actually easier yeah, well loved the major asset generation and opportunity. So I think the you know the next day actually opportunity is actually ultra fall enjoys a little bit more high and one which would also know havent been working really well in more developed markets like Europe and the U S.

And I think they'll hopefully within this yelp and isn't the one you won't be able to see a very strong asset monetization potential for opera for Android and and other touch.

And this year.

More developed markets.

And and Mark and this is Derrick and I would say going back to opera mini just as a reminder for everyone on the call and we have 100 million users and opera mini.

And our focus there is creating more and more features and functionality that drive more engagement.

And you know you've seen over the last 12 months, we dropped a bunch of new features there and.

And our focus there is going to be to try and make the browser better and better and obviously the same thing with opera for Android and opera touch It song Lin said.

Alright, and so forth.

And then in terms of the and thank you.

Guys are pushing and pushing all the chips back in terms of and reinvestment. This year what is the.

And I know, so and you talked through a few of the different areas, where you're going to spend but maybe you could highlight.

And the top one or two players that you're really focused on.

And getting it right and reinvesting that capital back down.

Yeah sure. So yeah, just to be at the high level right and then through the probably the better ones just in China and in numbers, but I would just say that you know in terms of the major growth area, which will have direct impact on and now most of them for this year and just under one.

That's a probe and the opera news and because that's a very material product and it's very good potential. So we'll see how he took a full knee and African markets and we have and as also mentioned that we have actually launched that's already and even some of the key you know Neil My Kids, which you can also see and it's come from you read it.

So who wants to be honest is almost a very simple decision that that if you have the pro that's what it's about how you like engagements and very how're, you doing and attention you know very good market and.

And then of course, there's no reason why we should not plan to you know invest to make sure and to grow propylene at too low too low to be a very.

Yes, I put out with scale. So I would say that's probably constitute the best time majority although.

And I've been talking about money, while the other two theyre actually and why its gaming itself is that already very profitable and also define more like aiming at.

A bigger scale, but slightly long term.

Got it.

And.

Okay.

A brief note that the and of course very pleased that we're able to guide about 40 percentage revenue growth at the midpoint and vast majority of that growth is coming from our core businesses and as long and explains without for news and the potential that we see to scale there, but also the browser business is doing.

And doing really well.

And I would say that the amount of investment.

It really depends on how successful we are and and the better we do the more we will invest to seize that opportunity and and that this what we have provided for and and our ranges today.

And then just the last one from me.

It looks like some of your minority investments.

And that'll bank are really performing at a high level is there any and.

He talk or thoughts.

Yeah.

And for all of course and for any of those assets either and.

The IPO or an outright sales of states just wanted to better understand your long term thinking around.

Non majority assets.

Sure I mean, we are we are very rational when it comes to that and and are focusing on how we maximize the value for for opera and and our shareholder so, but we don't have anything specific to announce for now.

Pleased that all of these businesses are performing really well.

And Mark and Jeff, Eric I would add that Mark and I went out on our investment you know obviously, we're not running those businesses, but the individual management teams of each business are really excited entering 2021, and they think they can generate strong growth rate. So.

That's a good thing as far as we're concerned in terms of our Optionality.

One just one follow up there if any of those three assets taken and any GAAP or has there been any valuation marks on any of those recently.

No not externally.

Obviously, we took a gain on those investments from fair value this quarter.

Great. Thanks, guys. Congrats again on a good quarter.

<unk>.

Our next question comes from the line of Vicky Wei with Citi.

From the mom and Mannesmann and.

Thanks for taking my questions and congratulation on the strong results. This is Vicky Wei on behalf of Alicia. So my first question is about opera gaming. So I wanted to ask what is just share did you talk and for a break day may in 'twenty and 'twenty, one and what management and comment on the competition landscape their online games.

Fitness regions. Thank you.

Okay.

Yeah. So it's the only hill and maybe I'll, just just commenting a bit so just Goldman Battle of course, it is still quite new for us as we just announced the acquisition and <unk>.

January.

High level I would say that you know what have already demonstrated.

And the strength of ultra and gaming buys and gx and the.

Alfred Gx, which oh.

Yeah, and Guinea, Walt if you have 7 million monthly active users and just a little bit more than one deal you have to build 300% year over.

Yeah, that's all sports treatment and those and as also quoted that this is already becoming quite profitable.

And so as a highlight right. So you know.

And you probably know that was adding old Z and DNS and gave me and gene and it'll be the first time and that's the way of handling community wage.

Both have the Glendale gamers and faster growing channel.

And especially because the Elba.

Ill ways, and also Guinea engine, and that's well linking.

You gave a like the game and make all coming on at this like as the People's Lottery and gaming so linking both the playoff and to go.

Great and and get them to get it all and I would almost say that and it comes off and that's it's probably easier to compare that with the likes of you know maybe some b mall roadblocks and the only difference of pointed out the way out and talking to you at a slightly niche segments, which is you know independent game and develop bowl and also a particular niche over the market.

So, yes, so I would say, but the high level and they'll all other potentials and how do we feel that combining them to get all building up on military and all the oldest boy the one stop shop could be very relevant.

But yeah. So so we're very excited about it and.

Hi, Bob and just to pull them down and so because this is just a cloud and January is way too fresh that we will probably just announced and you'll see new products coming out and also for new press release that they weren't going to happen, but high level. We are very excited about the opportunity.

Thank you and.

For the competition please.

Yeah.

Yes, so as I said right that briefly mentioned that I would say you know if you are if you look at this level globally has the strength of both the playoffs and the gaming.

Then you really look at the likes of scheme of course is the biggest one and.

And the guy the lifestyle, and roblox, which has decided to go and communicate well both playoffs and create us and I think those two and probably more similar as what do I have even remember, though that while more and more desktop than low.

P C that demo, but also I would say those two are probably more similarity and that of course will not hold very huge companies. So I think it's more like how we can grow.

And you know make our stepping into the game.

I see thank you very much.

Let me tell you.

Your next question is from Sarah Simon with Bear and Berg.

Yes, good morning, I apologize it seems and stupid questions, but it's the first time I've listened to and not cool.

But I've got three so the first one is.

With regard to monetizing the browser do you think that you will benefit from the removal of cookies by all the browsers will net to be Craig and I'll, just see next year and and whether you've seen that already with with other browsers and stopping the cookie thing and.

Related to that do you feel any pressure from me.

And support for third party cookies yourself.

And then the other question would be and you pay did I hear you say that you did purchase $2 billion.

Payments and I I think that was just in a month right. So.

And who your main competitors full pay and am I right and thinking it would just really Nigeria with assets.

Thanks.

And yeah, I think it's somebody else and essentially the question and it's very very.

Thank you Christy and actually.

And so maybe I'll just starting by balancing okay. Because that's that's that's I remember last so so yeah. So I'll tell you I would like just to clarify was quoted out its invested companies. So they will pull some of their own business better enough, but ethylene vessels, maybe the pole mounted would just be that yes. You are right that they are making to bid and transaction volume as amongst the very huge.

And yes, you are also right that for now they are primarily the operating in Nigeria, and Thats, where they have their license.

They do have plans to expand into other regions, he and I forgot, but they just spend all for them to announce that's yeah. That's a bad day for now and at least will take hold and Q4 last deal and the oldest transaction volume as I recall it in Nigeria.

Yeah, so like again to our best knowledge the item number one.

And the market in Townsville payments in Nigeria weighted.

That volume and to have a major size of the market share.

Yeah.

And so so so thats equivalents.

Okay, and you have that you're catching a ball cookies and also removing and somehow the cookie I guess my.

A high level commentary that as you know, we work very close and asked from Google and and and.

And some of the major playoffs and you all day.

Yes.

And so I would almost say that wakes and meeting with them to sinking up so yeah. So I think the high level and then it would just be that well that flows and monitoring this way I, probably all the major practice.

System and what it used to be part of that same ecosystem.

Moving to full up and I guess, that's the best answer and I'll, probably from a and Sarah I mean, just at a high level comment you know, we are and Norwegian browser company.

And our comp and say I would make is Norway has very strict data loss.

So you know a lot and the privacy stuff within our browser, we've been practicing for a long time and when it comes to our browser revenue.

Really search revenue.

And its advertising revenue, but it's gone through you know affiliate deals. So for example, if we have or can you.

You book and travel and bookings.

Obviously.

We are less impacted because of that versus other folks I mean, obviously, there's still a lot to be seen and.

We'll see how it rolls out and see where the impacts happen or don't happen, but I think given where today. The majority of our revenue is coming from.

I think we feel pretty confident and we're in a good place.

Okay and can I, just don't see it okay.

How do you distribute it so.

Hum.

It's your marketing strategy, how come it same thing who your distribution partners.

Yeah. So yeah, it's only hill and and again like it's almost you'd be also about I will tell you guys and the loss of the since I wasn't that Jerry and all the time and I've told him and he would just be that Oh P is absolutely. It's been I think he was actually a bit different than than you know what I believe.

And in developed markets, So high and walk through that is actually our model well.

And that general situations and that it doesn't and that's one of our infrastructure and it doesn't always know banks no branches and.

And this is so actually OPEC walks by.

Creating a huge and network distributed 300000 of them.

And there might be well actually and that's all my fault I remember and they have another 300000 distributors and you know.

And you know view them as a separate bank branch almost across Nigeria. So well you know why low people want and do some transaction.

And they just go to those agents and then and you can do all things you like and like getting money already getting money and sensible and I mean by you know paint actually it's a day pay you know pretty well level.

And so so I think that's actually the starting point that they actually sold the major issue all the infrastructure that.

Facilitating the transaction.

Cash into you know and actually get money and antibodies to be signed and also you don't and money transfer amount and this is so so I think that that's what they're doing and on pulp that'd be cool to have that huge infrastructural and they provide the old Dow those obviously, it's like that and you can of course naturally pay the extra day.

My name is the same way I'd love to do and all.

And what you want it so so yes, but I think why that's so big and it actually be call ups and infrastructure now providing sales, which is huge and not only just stay equal Myles allsop models, which have been on the books.

Yeah, and just to clarify so theres the online wallet users, which generate a certain transaction volume and then they.

They generate transaction volume to your point of sale.

Through the songs and that doesn't always work.

Yes, so the strength and managing from bulge and the offline to online.

The other thing I'll say is I think I think in the near term and they'll probably be a little more public with some of the things they are doing and in and talk a little more so we'll let them do that.

But we're really pleased with what they're doing and and our growth has been phenomenal.

Yeah, Okay. That's super helpful. Thank you very much.

And again, if you would like to ask a question. Please press Star then the number one on your telephone keypad that star one.

Our next question comes from Ziad, and Zhang with C. ICC.

Okay. Thanks management for taking my question and Kansas and shutdowns from TICC research and congratulations on the strong fourth quarter results and my first question and answer regarding our full year 'twenty and 'twenty, one guidance and I just wonder if it has and incorporate that revenue contribution from our new initiatives that's right.

And you know we acquired a gaming company and my second question is regarding our and air to me turn business strategy. So I, just wonder and going forward, what will be the primary focus syndrome and alike.

And building the ecosystem are doing investments and the next few years. Thanks.

I am from Tahira, maybe I can begin flow so relative to our growth and 2021 and this and then discuss this is predominantly driven by our existing products, our existing core opera news and most important.

Frankly, and and geographic expansion and monetization.

The efforts that we are doing around off from news and and our browsers.

And have been very cautious to build and much upside from new initiatives, such as S gaming and European Fintech and 2021. We include all the costs that we expect to have but those two I would say financially speaking I would expect it to be more material.

Next year, rather than this year.

And so in terms of near term strategy comment from me is really.

And the set these new businesses up for success and and for ramp.

And then operational focus around our core and and how we can expand that.

I don't know what songs do you have anything to add.

Yeah, no. It just exactly as as I'll, just say I'm sure that that yeah, I think and just wish you a great opportunity to grow well and alcohol business and also the also and of the news well in Cuba, and and gaming and Kentucky initiatives.

Okay. Thank you.

Alright.

At this time, there and no additional questions I would like to hand, the call back over to song Lin for additional closing remarks.

Yeah sure. So like you know alright.

That's all for today.

And it went to 20 really strongly and and turned it into one is really off to a good start.

And you know our core business continues to do really well and as discussed all new opportunities have come from us.

So we look forward to keeping you updated along the way and you know again, thanks for all the support and it hasn't been given in the past the deals and have a good rest of the day everyone.

Thank you. This concludes today's conference you may now disconnect.