Q1 2021 Tim SA Earnings Call
Okay.
Considering these who are not altering much yearly any part of our strategic plan disclose to you in our theme Brazil day.
And then there's the project nor the targets are going to be changed we are confirming our entire guidance.
The first course, there was a marked by excellent execution, we accelerated our recovery started in the second God from the last year and book revenues and a biggie are growing more you know a recent results.
We close the quarter with service rather than growing more than three per cent ear over a year.
A b D. A can in very sorry.
Four five per cent best dyslexia.
Get some more than 2 billion re is representing imagine of almost 47 per cent.
And he probably so last night, we reach an agreement we'd a chest completing the deal for our fabric.
A great deal for both companies.
As I said, our customer blast from plan eastern moving forward and we are much closer to announce new partnership for these some slamming education and digital wallet.
On the technology from rich more than 4000 C. D 's covered with Fuji and more than 120 sites in the Sky coverage project.
Also sign the agreement with the vendors part our drove me to cloud project.
Do you get shipments show our commitment to improve the quality of our service.
Element more cost efficient solution Lhasa generate Sasha and then but I'll make a positive impact as really day like in our R. E. S. G plan.
Last but not least this course, there Tim alive was appointed as the best broadband service in Brazil.
He telling our revenue acceleration, which so positive contribution coming from Oberlin Pizza services, we don't lines, Boston better grades than the fourth quarter.
Well by service revenue accelerated to grow to the eight per cent, yeah linear with Bush b sentiment growth also spending up to each almost 4%.
Oh by service revenue is also receiving the contribution of customer blocks on projects.
Yeah.
In the second quarter, which back even more after the launch of Tim from under our part I should we play to be Tim used <unk> Idaho.
Talking about the future the customers brought from the roadmap eastward what's in the second quarter, we expect to send and then where you would any learning platform and that work day, just a wallet negotiation or spitting up so we expect news by the end of the quarter.
This time, we either managed to bring it affects close from border or we do we tell them.
We are starting with the first negotiation so it would be something for the third quarter.
Changing views and moving through the thick savages, it's not a surprise that in lives consistent performers combining arpin customer base growth produce Saudi resolved in the past few years.
Uhm, it's no different this quarter.
Be sure to meet whoever developing that connected us concept to bring more innovation to our clients and sell intelligent devices.
Regardless of the difficulty she posed by one year a pandemic, we managed to keep growing of our coverage Ricci treat dot 5 million ohms past with progress 40 per cent against last year.
These are a remarkable achievement, but we believe we can do more.
That is why team is partnering with a chest in the Firebird Coupe project.
We have been saying from the star These D as in industrial invitation different from others. These you can find in the market.
Summarizing the day the fabric up we received Tim lives lost My network net P T H and M. P D C.
And then we'd all 49 per cent of the capital of the New company.
Tim will drive the network, so loud, but the father will be open to other players too right.
The fabric book was valued at 21 times in terms of enterprise value on a b D. Multiple.
And team will receive one be you'll need to proceed from the transaction.
As a consequence of the deal with their consolidate a large portion of Tim lives topics and even east and your cost emerge from the last time I rent dot net.
That would generate a positive contribution to free cash flow.
Maintaining our discussion on infrastructure developments I'd like to remark that it was not totally Dubrovnik callers that grew soybeans. Despite the challenges of the moment.
Nobody coverage also expanded somebody.
17 that five per cent more cities colors with for G.
27 per cent morning tour book that G more than 450 per cent growth you see this covered by Saddam day, maggots and more than one on the 25 with the diskette corporate ex project to cover remote address.
But network development didn't stop there we.
We are preparing or metro four always ask that integration and planning the February rollout.
In this context Matson memorial loud sigh from a musician and the natural share Gardena Eagle play a crucial role in the next step of our infrastructure line.
Before moving to wait cable newsham I wanted to remark that despite G. D. S. S. B the February marketing he says it's it's important.
And we know how to play this game.
That is why we are ahead of the competition on this front is one.
Two day, we have the broadest coverage and these technology with the main thing class settled see this and approximately when I'm going to keep the D. S. S station.
All of our customer access the fabric technology more frequently than our competitor clients.
And to complete the February topic.
And what was the first person yeah technical to test five do you spend alone with a commercially keep meant reaching speeds at Bo wandell take gigabit per second.
No on the I T from.
Like to remark piece prior to more with the support of Microsoft and Oracle to be the first operator, and one of the first company in Brazil to my Great 100 per cent of it that the center to the crowd.
We've already the day in the project during our wedding based sort of day, but they won't do as these as an accent part of the importance of having any integrated approach to E. G.
In this project, we combine innovation cash flow focus efficiency and bullshit environmental impact to take team to differ from our I T solution.
It is essential to alive. This is not unique simple.
When we analyze the outputs of our digital transformation, Gary Saturday shoes, and now the bullshit evening back and B S in different segment.
It is becoming clear that technology, we let it pass then with one of the most pressing challenges for a second bedroom.
Customer satisfaction.
One of the beauty so digital transformation S. It's doing that day at the same time, it's support customer experience back it also ex to control and reduce costs.
We are still in the middle of the process. So we have a long way to go about this but he has digitalization speed it up for sure one of the consequences of the pandemic.
Yearly charges E. B S E payment, he says and apathy zeeshan or presented double digit increases verses 2020.
On top of that peaks, which was launched six months ago or he has more than 2 million theme in Bush's speed.
In this context, our opex continues to be under control.
I see well below inflation.
It went up just one book seven per cent bachelor's doesn't 20.
But that continue to show starting to performers, but as we mention in the fourth quarter. The main structure changes what did that improvement would be more incremental then transformational and we need to come back with more than 60 per cent of our revenue Mashiko speed.
Clearly, there's a combination of revenue is growing up and costs under control is random.
It produced a big growth he never case, a solid for the five per cent euro area disease, the 19th cough, there with positive a biggie growth.
Additionally, it also generated margin expunged from to reach $46 six per cent.
Net income arrive almost 60 per cent.
As I mentioned earlier.
Preparing our network for always offset integration under assuming project initially scheduled for 2020, so our investment put alive, one dog treat being a rehash growing more that 40 per cent.
Before I conclude my presentation I'd like to alive that the mobile sector is be reshaped by U F. Maxixe on on one side and the spectrum auction on the other side.
Both are expected to occur at a certain point in the third quarter.
On the only mobile did it is worth pointing that day transsexual prove our process is going according to expectation.
From completed all the necessary steps with the cabinet and I'm open for book to conduct their analyses now we must wait.
As part of the auction, we continue to view it as having it was the same structure, which will prevail H investments to set a customer in the best manner.
As we stated before Tim spoke with would be the February frequencies.
We're waiting on tissues contribution to complete the details of our strategy reported the option.
Ending my comment.
I want to remark on the sound resolved without believing and made a very complex environment, which confirms the company positive momentum and solid fundamentals.
So what are we continue to work on mobile growth acceleration the expectation that vacillation per cent an upside.
Implementation of the deal with a a chest to go for the hour a P th business.
Continue developing our customer brought from strategy to increase each country bhushan.
Pardon me, our infrastructure I'm preparing the company for the future.
I lost.
Maintaining the focus on profitability and financial discipline.
Thank you.
No open the pro part questions police operator.
Thank you Mr. <unk> my will begin the queue and they session.
First we'll take questions from analyst for my General public both in English.
You sure at least swimming through webcast your questions can be sent by Chet.
We ask each participant to restrict himself to two questions at a time.
To ask a question please press star one.
And to remove the question from the list. Please press star.
Two.
Please hold while we bow for questions.
The first question comes from Matt Robillard with Barclays.
Please you May proceed.
Mister Matt you May proceed.
Please hold while we pull for questions.
The next question comes from Lunardi <unk> with you B S.
Hi, Good morning, everyone can you hear me well.
Yep.
Yes.
Oh, Okay. Thank you sorry about that well I have two two quick questions. The first one about the the fiber could say too I H S.
<unk> first of all congratulations wants to know if you could share with us the they'd be <unk> that these operation was generated so we can understand a bit about the multiple and if there are N E O N E long-term claws Z E D D O stitches or no. Thank you.
Okay.
<unk> of it in here.
You know that it's not easy to disclose those kind of information to them. So maybe D D a but I think that.
Mmm.
Since beautiful mentioned day multiple did we arrive with the with the enterprise value that the real considering you can do the math and it's it's almost B D. C. And then I need <unk> Yeah, Yeah, We'll we'll get you mentioned the Vietnamese from that.
21 times.
<unk> value over over the 2020 pro for maybe today so.
V. Here is is that's the 2020, maybe T D. A at them. So performer clearly would we had is a very.
Challenging business plan, but is D E N it'll be suspended we had even before the transaction what I'm trying to say is.
Probably in the future we can do more what'd rebooting the businessmen because at the end. That's the goal of closing these D and especially with with IHS being them in an industrial partner in this case because remember.
We always said this for US was not a financial view, it's more an industrial D. Due to the fact that we wanted to be in the business of fixed with <unk>.
<unk> the the market will have in terms of new connection of 250 P. H in the next three years up to 11 millions of new connections.
You're going to send that there is a lot of space for many players and we want to catch a portion of that opportunity. So.
Internally with the actual situations could have been a little bit difficult because.
This will mean additional capex being depicts would from <unk>. Most most much more capital-intensive been demobilized.
So that's the the the the the first goal of the physical project that then yes of course.
We can also mentioned the more financial side of the transaction and then you arrived bill to the to the multiple of 21 time, so it'd be D day, but it's not something that for US is Vicky Vicky for US of this project is industrial then of course this.
The secondary that we medicine will help us in order to finance the deal with Oh, Yes of course bed be sure that the first rule for US for this project was industrial.
I think that you had a second question in Idaho was yes, thanks for visiting yeah, and thanks for the the answer the second question is related to the agreement you made with Telecom Italia understand that you your desk seven other companies to provide the differing does this summary.
Able to foreign inclination I just wanted to this day before this deal.
Which which company what are you using what were you doing before that to get access to 240 Internet from Brazil.
I don't know if I got.
<unk> Your question and then I always regarding are gone for good resend with sparkle.
Yes, yes. That's it my question is you sign the contract Sparkles right for 2021 until twenty-three. My question is before day, which company. What are you using what would take a bus how much what are your bank.
And the Saint speaking so this information was disclosed yesterday in communication all the information available about this contract with a sparkle as it's our <unk>.
<unk> body is public Oh past the floor to to me. So master. So he can explain they use it since this is under a wholesale department. Please you Samantha E. S. Hi zone out of the it's it's a quite a standard piece of business meeting that on it.
Really busy so we reviewed the terms of conditions of our theory Internet traffic and so we sound day market that and we check out the the best deal in terms of volume versus surprises and so this these procedures.
<unk> was discussed yesterday and yes. It has been awarded to Sparkle, because you provided to us the best technical scoring and the lowest price and then it makes sense. So for the 12 months renewable.
Yeah, Okay, just I I'm not sure I got my question in 2020, who was day Sparkle, who was providing you capacity.
Sparkles.
Alright, Thank you very much.
The next question comes from W. Forget it.
With J P. Morgan.
[noise] lowered Rhonda hear me well.
Yeah sure.
Okay. Thank you for the call I have two questions on mobile if I may I. Please.
The first one too.
Remain strong during the day speech these mood for volume two value and indeed, we can see that.
Send that out from king of the software and good.
Smouse burst on the other end you've been able to inquiries our crews and increased revenue those kind of trying to understand the drivers behind are you beneficiary from price increases or our customers Margaret for iron packages such as from.
Australia.
Austin.
Yeah, and the second question.
Oh. The second question is still a mobile if you could give us a call or uncle <unk>. We we saw boy launching unlimited products hours see just the strength right now thank you.
Okay <unk> first of all thank you.
You catch the right pulling that is ready to our strategy. Let me declare C. A couple of years to move from volume two value.
As your obscene, we posted a group <unk>.
<unk> first quarter million the speed net and the growth is related also to the fact that that we had.
<unk> net that's increased but in the meantime, we were able to continue to increase the level of consumption in our package by our customer.
What they mean that day I work package differently from what's happened for example, some count relax, Italy or U S.
Do not bad for a new job amount of gear.
During the pandemic customer food or increase their name and date of consumption and it will allow us to.
<unk> two package to iron amount of <unk> what.
What is important to allow it is that in this number is Nokia to include the day.
<unk> that would be the in the month of March the impact of the ARPA increase coming from the price soccer will be more I appreciate that it would be appreciated in the second quarter. What is important these that our price that is not the real price increase.
<unk> with our more for more strategy, what we do we.
We add more guida for the customer.
Exchanges.
To our strategy that we define from volume today is composed by package that <unk> that progressively time by time.
Increase in terms of amount of Gieger in front of a price increase.
These will follow the data consumption increased from our customer net in 2020 was driven by the increase of consumption due to the pandemic.
But it it is in nature on <unk> net down to like Brazil.
Do sustain the strategy with to further improve our quality of service. This time of day to you. We were able to also to reduce the level of churn as a nation during my speech.
Is it for their element that confirm that we are on the right path. So when we would discuss the result of the second quarter. We we sure if food or increase in the revenue simple speed E. R. O V E. R. D steimer they will be much more.
<unk> bye, you're not brinkley's, unless driven by a customer base increased.
Coming back to the second question that is related to the competition.
It's time by time, if you remember it up and also we'd next day Lee 2019.
There are some operator that day.
Are perceived in the market with the <unk> lower level network quality did try they try to gain speed Sir.
Releasing on tomorrow in the market that offer with now your volume the guida.
To the good part of the market and of the customers at all these offer an obese overeaters. What's happened is that they do not bad impact in terms of.
From the increase of customer base of change of the operator, So we do not foresee. These offer is an issue that can change it.
So again.
I don't know if you were able to catch on my answer because you understood that there were some technical issue Garbin I was able to get a.
Your.
Cause sometimes but I got D V D. S. For thank you very much for your for therapy, Okay, I apologize for the issue, but if you want I can remember.
Oh that sounds good thank you.
The next question comes from.
Christian funnier with the desk will be behind.
Hi, good money, everyone I have two questions regarding D E E. Farley Coke deal. So the first one I'd like to understand.
Ex maiden both in terms of.
Homestead.
<unk> D D. Smith growth now we didn't have so much difference regarding the expected carpets deployment, but we'd like to understand how much did the company cannot chief themes off homestead Indeed.
Future now with the the new investment in Bosnia <unk> previously.
<unk> said from my other point is that if the the primary offer that the company received each enough to fool findings did the growth expect in terms of.
Okay Christian I think that first of all it's important to remember that when we presented the new plan during the day.
Clearly state it to market that.
The <unk> Roger.
So once we close the deal with H E. H S. The free snack of our <unk>.
<unk>. So you use a chess to fulfill what was included in that work plan in time. So <unk>. So in this in this first phase we are not that.
And the food their own best.
Back through the vehicle of I. Your chest, we are going to deliver what was already included in the plan is clear back then what we have in mind.
I'll take the question from here because we have in some some issues with the connection but <unk> I think that you had with would be able to was mentioning.
We reached this agreement with IHS for for the five uncle based on our actual plan full deployment of <unk> of F. T. T. H N, obviously operating and maintaining so the actual networks.
Clearly E in order to reach the agreed disagreement we need to to base. It on what we already have and wheat, what you're ready projecting.
As I was mentioning that it was amazing.
The first question here. The goal obviously is to accelerate as as you know the opportunities that will have the the next day is a big.
We want to catch a big portion of those those who put you needed. So yes, obviously the intention is.
Make more of what we were projecting what we have now and the base of this agreement is the actual plan that we have so that's why you see the figures of reaching almost nine millions of of home best in in four years or what we're doing in terms of.
For the next two years.
The other part of your questions is regarding D component of the primary that IHS will be we'll be paying if it is enough you know to finance, yes, it's enough to finance the first years of the operation Remembering Oh is that the.
The good thing of these five uncle is that is born with an uncle customer Betty steam so the fiber cool, we'll have and there'll be D. D. A since since the beginning.
Probably something different in in other cases, <unk> again would try to focus on on on our project. So.
Of course with the M. A D D E and the cabin injection coming from H S that there will be enough cash flow noted finance to finance the the additional deployment.
Obviously every come Bunny couldn't can you can be much more efficient through leverage and we will be <unk> could consider this alternative but again, we're we're very Gulf War double with <unk> with this level of primary at least to find out the first.
Three four years of the of the of.
If I were.
I'm already do your new out.
Yes.
<unk>.
Yep.
You heard me right now.
Yeah faith at all.
Okay, sorry, I apologize.
Just to complement with that and was standing there I was standing before that that it is important to remember that but when we percentage during the hour.
Tim Depression Asian, our Triage plan. We didn't include in our numbers the fiber co operation.
<unk> <unk>.
So in this first please what is happening is that we are replicating with practical the.
Target of them passed that there were no what plan now what a kitchen plan.
It's clear that you have the flexibility to for the accelerator.
Because our goal is to use this vehicle to have an acceleration in terms of coverage.
The way in which these bill was built give us the flexibility to do that day.
Is that and we'll explain also from the financial point of view there are all the hallerman that can allowed to have their food, they're actually from what we'll do is that once you put everything in.
In place from your point of view the next step will be to evaluate the right speed that that you can add this vehicle.
And again as I'm, saying also to the first question on day to receive their own Tribeca at three in part I'm not to discuss about which is the level of it'd be D O describe Michael.
From our point of view disease, Eileen basket operation and this is not the F. B nine shrunk operations, because if we would like to add a few national operations backpack.
It was quite easy to quit D 11, a M. B D O B company, increasing the transfer price so the cost of the local loop.
We cat.
Be glad on my pillow.
The low rate because D Z as a vehicle that quinella washed through for their activity our growth.
<unk>, so again I'd like to stress disappointed because this is not.
<unk> <unk>. It is also in part anti nausea component, but at the end of the day is is any part on industrial deal Aquila y.
Put that accelerate our ultra Broadmead development.
Perfect. Thanks a D.
Is your issue.
Love Me do it to make it.
And.
Oh Oh.
If you're gonna be moving in terms of a teen brandy so yeah.
Mmm.
Ooh Ooh.
Tim doesn't homeschooling, all day will be available to all the infrastructure to other places.
Kris them, we lost you for part of your of your wondering what if we can get you in the face.
<unk>.
Perfect perfect <unk> I <unk> I, just want to understand E D D.
You did the growth in terms of homes connected.
It'll be exclusive you use the gene brain, so oh or are they did the fiber call. When you will be able to offer you.
The homes S, Georgia to other related as well okay.
Okay, Yeah understood as we mentioned in the material fact that we you should yesterday there will be forever for every new deployment appeared of exclusivity for team of six months.
After that yes, obviously, a favorite cool could start to offer the infrastructure two other players. That's the main difference when we talk about neutral or open vehicles. In this case, it's not a neutral because the vehicle will have the uncle customer that esteem and we'll have an an ex received.
<unk> on every new deployment that day, then yes. These networks will be open to to third parties, that's probably what's interesting in in these in these deal and and.
And if we think that it's reflected in the in the value of the company. So again remembering always that we will keep all the management off the customers will will keep even the management of the of the home devices. So the modems because we think that this is.
An extremely important <unk> with our customers. So again, the what we're putting here in this five what would be a dropping down is from D. O L. T from the cabinet and to add to the customer to the customer.
So the answer to your question is yes, the networks will be open after a period of ex receive it.
If mad because perhaps also do a comparison can help kristin to catch difference between odd they're more of the L. L. Bean <unk> is that or would he was explaining.
In the Brezina market, you will see that you like.
Some cases in which the infra cost model will be completely.
Neil from what it means that from the zero.
The day, where debate infrastructure the last mile.
Gotcha can be both by Amy operator, there would be no a screw C V T. All the time for one operator to buy from these neutral <unk>.
This is Mauro last set the model of the O E <unk>.
Okay.
The piece I bought a modem that is pure all tailor that Deborah some pros and some calls related to the fact that you don't pay and encore okay asthma.
Our model as either or both explained was explaining is open what it means one set we would will be bill.
Fiber infrastructure for a certain period of time.
<unk>.
<unk> <unk> <unk> <unk> by that <unk> will.
Would be.
October day period of time, it could be open also <unk>.
Oh period.
So these are two more of a completely different because in the second one one day was to send my team is clear day too. Thank you.
<unk> <unk> <unk>.
Indication, Indiana must be developed and contact you to be <unk> with the bill payment.
<unk>. This is the reason for week I stress.
Fresh another time, it's more and industrial.
Taylor been Etsy National Bank.
Okay. Thanks.
Seven.
The next question comes from Cardinal Cicada with BTG part two O.
Hi, <unk>. Good morning, how are Ya. Thanks for taking my question my questions Uhm I I will Shaw six should the transaction then some fiber company I think by now I I got it but it just took off from the change that bone and not included in the <expletive> instead of being transferred righteous to the <unk>.
<unk> they will remain.
Controlled by by T is that right.
You thought that you were at the you told the cabinets backbone is it dry.
Yeah back hauling backbone yeah.
They would stay with him.
Okay. So you know and it any decision by the February <unk>.
Yeah, It's sorry, seven day here Yep Mmm Espies. It was mentioning <unk>, we always says said since the beginning that would we were interested in.
No that to find a partner was on the last mile and why this was the design because remember that our backbone and obviously or by calling are mainly for the mobile business yet considering what do we have of course.
L E. As we sang in the beginning June from Rodman is so waste leveraging on this mobile infrastructure that he have so for us. It was mmm extremely key to maintain what we have in terms of book bag. When I'm by Coney household that's why the only thing that will dropping down is the sex.
<unk> network it's.
A D N S. We mention this isn't just really and it's probably more.
<unk> and the strategy is to maintain the backbone and the by calling in House then.
<unk> could be a decent subsides in the in the deal in these five good deal because fiber could could be in the future yes.
ZIP line infrastructure not only on the F. T D H, but also on on what we call F. T decides because it could be all sufficient but what we're dropping down to the company is limited to the secondary network.
Oh, it's it's clear and I think this is important to be clear to everybody because we ourselves when we were gonna, Indiana and you mention and a V per homes pass it and compare you should use the Jews completely.
Completely different red because we're the does include it back home backbone. It's gonna include me it's.
It's impossible to really compare the gencon transactions from the calibration standpoint right.
Yeah, you're right also because some of the transaction desktop and I've also customer included in such a case, where only including the last mile.
The the fiber did go from let me say D O L T.
To the customer house.
No perfect and and a different question I mean, you know the 10th the expansion punished pretty pretty aggressive right. My question is <unk> <unk> <unk> <unk> <unk> <unk>.
You know the phone company will be it. Thank you is there any specific target you're looking for is it just.
You know a type of market value, where we're going troops retarded within your company.
Carlos it's clear back that.
If we were just two in front of a coffee all day or a glass of wine.
I can give you a lot of the day Sir.
That now could be disclosure of our strategy what day.
It's clear that you're correct some try to understand deep there at the risk of some all day or not we got with the other activity guitar quite simple that we.
We took a lot of pay insurance, our Joe market more than three part way to evaluate exactly where to go in that work plan there would be for sure it'd be something that you can disclose.
<unk> the change of the F. T C N F T th.
What we called Brown shrimp, the truth of the remaining Garia will be done base on.
Our idea about the move and the strategy.
Player in Pam So Joe marketing.
An analysis about what piece the potentiality.
Oh each day.
Area.
And it's clear to consider that a different factory that you have to keep it in mind.
Also the strategy of the other players so.
Someone that day evaluate.
Evaluate be able to show.
Okay cable technology Eve and hour at which cost cable technologies able to scale.
<unk> per second.
<unk> <unk> <unk>.
Two five back from some other player.
There are some smaller but that that fiber optic sir.
Network Battery day 11 over all overbooking that do not allow any T way too <unk> and that's great. The network at ice level of speed net.
So these are all the different element that day, we are a value.
To the crime exactly artwork.
Joe marketing approach in a different area what is clear that we will try to avoid all their laughter and we will never tried to be the day. After four player to go to build a private optics Mac book because makes no sense from the desktop point of view, but in some way.
Thanks to the side of.
<unk> B.
Market each day.
Huge so I'd gone for see in the next three five years.
Huge issue in time, so all of our laughter.
Oh, that's clear thanks, Deirdre Thanks Edwin.
Ramos, it's clear that you have to keep in mind that disease something that is.
A check gig cause you have to consider also what will be.
As I mentioned.
The strategy of the other player that day.
To keep in mind that differently from fever, they have some legacy.
So the strategies the from the legacy <unk>.
Great the legacy.
<unk> four untapped market.
Difficult part.
Them.
All day.
And we we must be clever Eddie no legacy.
To try to feel.
Let me say get in their strategy.
That will be left on the market due to the fact that day. So speed is that is that fact.
We are already moving to offer for our poor rabbit Oh five.
Megabits per second.
And you can imagine that that there are some day call you that can that much more difficulties.
<unk> kind of strategy.
Yes, no doubt.
Thank you Petra.
Very welcome.
HM.
The next question.
Comes from Alejandro <unk> with BBVA.
Hi, good morning Pietro.
Thank you very much for taking my questions.
The first time, the first one and trying to better understand the strategy of the U.
Uhm the purpose of D C.
Oh.
Oh, you're home spot S. P. P. G four years, and having nothing really says T. T. C. So that doesn't mean that you plan to upgrade your kind of an S. T. D. C network too S. T. P. H and then C. D. S. T. P. H 220 in order to reach D 9 million S. T T H a.
You see that's correct, we're talking about $90 each plus people.
<unk>.
And then.
What will be the interest touch with your appointment.
That's my my first question.
And then the second question is regarding Dia personnel expenses.
You have been using.
The number of employees faster pace interest in corners. What are these trends continue as part of a D. D decision process or E S accelerating because you're permanently closing stores.
How much.
I know how much reduction divorced force should we expect.
And in addition related to these questions.
You mentioned specialties that employees will be transferred to the new fiber call. So would it be possible to measure the number of simple use that you will be transferring to a new entity wanted you guys actually materializes. Thank you.
Okay.
I think it was a few questions before two lib arguments with your modem.
<unk> my previous.
Speech wasn't clear.
We are not stopping to say sofa.
P. T C train you definitely can.
<unk> changing everything for a T T H E.
<unk> E R plan.
<unk> <unk> with passion substitute semi area S. T D C. S. P T H.
We don't have to the Doctor in one sense.
So at the end of the three we will continue to add a P. P C customer bathroom with me great part.
Of them not all the customer threat to teach.
Okay. So if no I don't remember, but today, we are more than 200000, if <unk>, if I'm not wrong I want number.
At the end of 2023 would be to reduce MTBC customer from 20000 to 200000 cast and I'm about that damn can correct me if I'm wrong.
Related to the personal expenses keep in mind that but first of all.
<unk> Mmm employee reduction, we don't force cheap.
Employees reduction also because we had to wait any company red more or less 9005 on this employee if I remember well in 2015, we were at 10500, Okay. So we already did that.
M huge job in time, so that you saw the external forces outsourcing part of the activity. So we don't foresee these activity what we locked in that day digitalization process that we put in place.
He is allowing gas.
To reduce costs that we have ex family for some kind of activity that are more you Monday.
Then out of my thighs.
Then your relation to the comparison ear of area. If you look at the reality uhm.
Uhm.
Labor costs.
<unk> if you look at yoga at all cause it's increased it from you cannot from eight per cent yelled area.
But they're really kresa on what these exactly labor costs that it was only three per cent that is more or less in line with the the equation. The remaining poppy three is related to some contingencies, but the day.
Then please if you want to integrate or correct something that at all.
Oh, you said and you said correctly beautiful on on the first one the first part of the best in terms of what we would have four years from now in terms of in terms of home best clearly, we want to reach nine maintenance of home bust an S. T D H.
But they will remain still some mothers on F. T D C what because.
We will be overlaying from from situ age where we need to.
And as always we need to be extremely efficient no to maximize the return. So is not that will be overlaying all D. F. D D C in four years.
On the second play of your.
Your question regarding the employees that will be going to be five ago.
Remember that's this is a very limit limited number of employees. So we're not talking about something significant any way we didn't have.
Any movement in her numbers of of employees in the past, we think that we we.
We're very comfortable with the ex has to a situation and we don't have it glance in order to reduce HM.
Okay. Thank you very much.
Kind of yeah Alejandro <unk>.
<unk> your question allow me to do.
Two four the give another detail about their wives practical.
Next D R. A.
Reality, the truth is that already this year.
We will have a big challenge that would be the integration.
That should.
Oh D O R sector.
So one of the reason to create the fiber cool was also to create let me see an ex <unk> a center of excellence in time, so thick operations for the last nine.
<unk>.
Until you discuss about backbone.
Carly Transport network.
There are a lot of synergy managing a unique network thick and bye bye.
When you talk about the last mile. It's something that is completely different from let me see the last mile of mobile.
Mobile is a delivery <unk> and everything works.
Build a last smile, it's a complete different jump.
So the creation of a <unk> we.
Will allow us to have a team that will be completely focused in this.
Stop job that.
And we are sure that will benefit the mall salsa from your personal point of view.
Separate company completely focused on this activity.
I'd be walking on the fixed for a lot of years in Italy, and I can assure you that that I don't want to say that there is one.
Simple less than the other part for sure too activity complete and different and it is difficult to let them come back. So vacation on this company will allow the wawa internal theme.
The 100 per cent focus on the integration Oh boy and discussing about the operation activity.
And <unk> another thing that will be and then you call in the <unk> that will be completely focus to build that day and lost my natural then I'll bet 20 theme would be focused to Sam fixed and mobile because at the same level nothing changed and will continue to manage the customer.
Homestead, Okay very good thank you very much.
<unk>.
Ladies and gentlemen, as a reminder, if you'd like to make a question. Please press star.
Oh one.
Ladies and gentlemen, without any more questions I'm returning to Mister <unk> for his final remarks, please Mister <unk>.
You May proceed.
I've been saying this for the past two quarters.
We don't use shortcuts.
We will maintain our Fox on the sustainability of the day, that's with a restaurant approach and started execution.
Antifraud drive fast of the company is stolen challenges into opportunities trebled folder.
So we will continue to use our nobody's approach and that you needed to make the right decision and be ready to take full advantage of the recovery of the economy.
I want to thank the dedication and commitment of our team.
Continue to overcome many challenges to deliver outstandingly shops.
Once again together, we can anymore.
R. As we've seen Germany, she won't us almost mice.
Thank you once again for participating in our conference call.
Stay safe on that day I hope, we can be trailing it's showing the <unk> Vance that we'll be doing waiting for nausea community.
If I failed to meet you in person as soon as possible.
So as we conclude the first quarter of 2021 conference call of Timothy for further information and details of the company. Please access our website, Tim Dot com, but b R. Slash I R.
Or you can you can connect from my one thank you once again.
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