Q1 2021 NetEase Inc Earnings Call
The statements are not guarantees of future performance and the subject to sudden great certainty assumptions and other factors.
Some of these risks are beyond the company's as well.
<unk> actual results to differ materially from those mentioned in today's press release and the discussion.
Discussion of the.
Risk factors that could cause net each business and financial results is included in certain filings of the company with the Securities and Exchange Commission, including its annual report on form 20-F.
And the announcement of the filings our website of total stock exchange. The company does not undertake any obligation to update this forward looking information except as required by law.
During today's call management will also discuss certain non-GAAP financial measures the cause.
President of clubs, it's only for a definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results. Please see the dozens of what you want but for me.
The news release issued earlier today.
As a reminder, this conference is being recorded in addition.
The presentation and the webcast replay of this COVID-19 school will be available of the net you hope the web site at IR Dot net dot com.
Joining us today on the call for the net the senior management is Mr. William Ding, Our Chief Executive Officer, I missed the Charles Young our Chief Financial Officer, I will now turn the call over to the child, who will read the prepared remarks on the top of William.
Thank you Margaret and thank you everyone for participating in today's call before we begin I would like to remind everyone that all percentages are based on the renminbi.
We began the year.
The record quarter exceeding RMB $20 billion in revenue for the first time and net income attributable to the company's shareholders increased 25% year over year to RMB four 4 billion.
Our games business also reached a new record of RMB 15 billion net revenues up 11% year over year in the first quarter.
The high comparable base last year.
In Q1, our flagship high coast continues to demonstrate strong growth after nearly two decades of operation with revenues from fantasy westward journey online and the westward journey online mobile all growing at double digit range year over year.
Cash at three is that not the exemplary piece of it is one of the rare instances where of legacy PC MMO RPG game has regained growth after reaching maturity level.
Leveraging our growing knowledge of more recent successes in both MMO and non MMO genre is we added some casual flavors to the legacy MMO RPG, giving our players of fresh feel and creating new content for users to consume and enjoy.
We also crusted and in game events at the end of last year, which quickly generated strong interest and discussions in the play of circle, leading to a large inflow of returning users who rejoined the game.
Other gains in the spotlight during the first quarter included life after all of them EOG identity of five and Invincible.
Life. After has remained an iconic titles with strong appeal among young users the new collaboration with the movie Godzilla vs. Com in the first quarter was well received by players as they thought of Dooms day amongst us.
<unk> also showed remarkable longevity remaining at the forefront of China's iOS top grossing chart.
During the first quarter, we rolled out of the highly anticipated IP collaboration with the months lay up.
Classic Japanese enemy.
The strengthening <unk> position as the top ACG game in China.
Celebrating its third year of Anniversarying April identity fires continues to draw the attention of young players, bringing them as the reading competitive experience with the distinctive Gothic ox IL beats.
Between January to May we hosted our annual Global Championship tournament call of the Apis with the finale of being staffing Hangzhou, attracting close to $2 million game players globally to participate in this event.
It brings of all remained steady in the first quarter with strong user engagement.
Adding a wavering loyalty from its fan community.
Despite the numerous invisible light things popping up in the market and visible has proven to be of trend setting the pioneer in the game genre.
This also echo as well with our corporate DNA in product innovation.
In terms of new games, we have launched a few new ones since the beginning of this year.
We started with revelation mobile game in January.
As we discussed last quarter. This is our self developed the RPG game based on our flagship PC title.
Capturing both the returning fans and brand new MMO players. We then launched Alex the them of legends in March of self developed caught RPG game that brings together the legendary figure the Chinese history.
Shortly after these releases most games reached the top of the iOS download chart in China.
On the licensed from <unk> in January we introduced Yu-gi-oh jewelry, Inc. A comparative cop game based on the loss, how Jake IP that we licensed from <unk>.
And more recently in May we brought the highly anticipated casual game hockey mom class two of our domestic audience.
The featuring huge shape hockey mom the game invites players could be friends and create the hockey mom scheme to pack and backhaul through tumble cube of island sharply after its release hockey mom class quickly climbed to the top of the iOS downloads chart in China.
In the overseas market, we continued our assets to expand our offerings, while maintaining steady operation of our existing titles.
<unk> out for US again reached the number one spot on Japan's iOS top grossing chart a couple of times during the first quarter.
Following our collaboration with well known Japanese IP the promised the Netherlands in February identity. Five was also crowned number two on Japan's iOS top grossing chart.
The success of these games has helped us for getting a much better understanding of Japanese users and their preferences are.
Allowing us to be more sophisticated in localization of accurate for.
For instance, we found that's Japanese you use is greatly value of the sense of occasion.
Users wants to feel the grandmothers and every molecule of appeal in each game event.
Take knives out as an example, knives out's day, the widely anticipated annual celebration officially recognized by the Japanese anniversary of Association finished 2019 marks the start of the games annual Carnival are made of steel, which you can close the biggest the esports.
Championship tournament in Japan, as well as other exciting activities.
We invited all of our users the rock millions of them on line on that day and the event has become one of the top trending topics on the praetor in Japan for the past two years.
We used a couple of titles gaining popularity and recognition of already in the overseas market. Today, we are hopeful that our upcoming releases will bring the next generation of games to the world stage and the further expand our footprint in more regions, particularly in the U S.
And your revenue.
In April we launched infinitely grunge in Europe.
Similar to Invincible, we expect infinitely grunge our first globally targeted S. L. G game to ramp up its revenue gradually and show a similar upward trend and longevity of always tie.
This game will be next available in the U S and other overseas markets over the coming months.
As our very first next Gen S. L. G. We have been on the development for a number of years. We hope that this title will extend our success in S. L G into overseas market.
The highly anticipated Harry Potter Magic awakened is also on track to meet eager audiences.
We are thrilled to bring this game to Wizards fan soon.
The players around the world on the magical adventure.
Earlier this month, we announced that we joined hands with our Polish part and the 11 Big studios to develop and publish the mobile version of the world renowned IP for Oc punk globally. Later this year players will be able to access this elaborately crafted.
Post of Copel lips for.
Social survival game on mobile platforms.
In addition, we have a handful of other exciting titles in our pipeline.
Adding to those we just mentioned our pipeline also includes the lot of the ratings rise the wall Nightmare of breaker Diablo immortal and the Ghost World Chronicle.
For more details on these titles. Please join our annual product launch event on May 20th two days later, which will be hosted on line. This year and will have a dedicated the English section for our global game players and business partners for the first time.
We are proud of our world class R&D infrastructure, which has been pivotal in maintaining our competitive edge in this market and delivering long term value the.
The most important element is our people.
With that in mind, we encourage our talents to share and exchange ideas with the industry veterans worldwide.
We just hosted the 2021 Matisse game developers summit in April.
With a three day foreign covering topics like the game design and.
The technology.
The event brought together, our internal developers as well as external industrial partners, including gurus in the western game industry and developers community to share there in that game development philosophies and experiences.
Parking wide attention from developers game players and many others in the industry.
Now turning to our education business.
Oh achieved strong and sustainable growth in the first quarter.
Total net revenues from the old all increased by 147% year over year to RMB, one 3 billion and overall gross margin significantly improved to 57%, reaching a new record since its IPO back in 2019.
Gross billings from you without K 12 segment was up 130% year over year. Despite the high base last year due to the outbreak of COVID-19.
K 12, PE student enrollment doubled year over year, two of 306 out of them.
In order to match the growing scale and ensure the optimum teaching quality, we continued to strengthen our servicing team, which comprises 197 instructors and over 4000, well between Q2 by the end of the first quarter.
Given the different philippa assists us in different parts of China, one of the most important agenda for us is to ensure localized content for classes. We also.
We took our junior high school Chinese as the pilot case.
During the past spring semester, we launched up two of 31 versions of Junior High School Chinese meeting the needs of students in 31 different provinces.
The localized cost of half $10 could be very effective and very well can I always students.
And that's revenue of your learning devices also continued our year over year growth of 280%.
March we introduced the dictionary pen three point of Zero Pro version further supporting bilingual translation of Chinese and Korean languages to meet the demand of a wider range of language learners.
Youll also further integrated the functions of our dictionary pen and the <unk> Dictionary Act, making the offline online transition, even more efficient and assets.
Looking ahead into 2021, we are confident that we will continue to grow its position as the leading provider of intelligent learning services and products and our diversified business models products and technologies will give us the upper hand in the evolving after school tutoring and as tax.
Market.
For our cloud music business, we have come a long way celebrating its <unk> anniversary last month, we are proud to say that we have sought and created new possibilities for music in the digital era.
Our platform, which features of Vos and highly interactive content community has become a widely recognized household name that is seen as a cultural ambulant amongst particularly the post nineties are younger generation.
With the large base of young music lovers on our platform, we are more willing to explore and discover music we have been the creative outlet and the natural stage for independent musicians to shine.
We strongly believe independent artists.
Crucial driving force for the music industry, and our platform uniquely positions us to nurture them in the modern era.
In April we held our annual signature event the indie music artists ceremony for the third time salad for 18 of past year of their music and encouraging independent musicians to continue creating the remarkable work.
In addition to our original music, we wants to continue bringing together a library of new unique and influential music pieces from around the world and providing music fans with the ultimate audio experience, we have just announced.
The Iraq digital distribution partnership with Sony Music Entertainment.
One of the world's three largest recording companies.
Following U M. G. This is the second directly led licensing arrangements, we have signed with the big three labels and we are proud to see these positive changes happening in the music industry in China.
Moving onto the N shine.
As of private label consumer brand, we further strengthened our brand appeal among the young middle class developing products that revolve the wrong still need send.
Centered around this notion and along with the insurance Yeah anniversary, we developed a new value proposition leaves the way you like through of promotion intended to express the boys of the new Middle class.
This campaign resonated strongly with its intended audience.
Awesome lively discussion.
During the last year, we rolled out of range of highly popular young from products, which have sold well since their introduction.
Our strategy to incubate more hit products.
Last piece of smooth path for us to strengthen your insurance product portfolio with.
We recently introduced the number of new style of products, such as our proprietary laundry pods wireless ear buds.
Room fragrance, which quickly became a top selling product of multiple platforms and some of the most recognized products in those emerging categories.
We see potential in many of our proprietary products and we are working to introduce a greater number of signature product this year.
Additionally, we continue to optimize our operating efficiency in the first quarter.
During the quarter, both our inventory panel the days and the fulfillment efficiency we're improving.
In summary, we are off to a strong start in 2021, our game portfolio is getting ready for exciting new titles for both domestic and global players, while our existing games continue to hold strong.
The online education music and e-commerce businesses that each on solid footing as well.
Premium and diverse content creation across our businesses continue to be our primary objective as we move forward.
Entering a new phase of growth and generating additional value for all of our users and stakeholders.
This concludes William's comments.
I will now provide a very brief overview of our first quarter of 2021 financial results.
Given the limited time on today's call I will be presenting some abbreviated financial highlights.
We encourage you to read through our press release issued earlier today for further details.
Total net revenues for the first quarter was RMB 25 billion or U S. Dollar of $3 1 billion, representing a 20 per cent increase year over year.
Our net revenues from online game services were renminbi 15 billion of 11% year over year.
This year over year increase was primarily due to increase the revenue contribution from newly launched revelation mobile game fantasy westward journey H five as well as PC games, such as fantasy westward journey online net.
Net revenues from our mobile games accounted for approximately 73% of net revenues from online game services in the first quarter.
The old Dallas net revenues reached RMB, one 3 billion up 148% year over year, driven by fast growth of both its online courses and sales of intelligent learning devices.
Net revenues from innovative businesses and others were RMB four 2 billion for the first quarter up 40% year over year, mainly due to increased contribution from that he's cloud music as well as Yan Chen and Cc live streaming.
Our total gross profit margin was 53, 9% in the first quarter with the breakdown as follows G.
GP margin for our online game services was 64, 6% as a reminder, this number is generally stable with some narrow fluctuation based on the revenue mix of mobile and PC titles as well as self developed and licensed games.
Gross margin for Utah was 57, 3% compared with $43 five per sand in the same period of last year.
The significant growth was primarily attributable to the improved gross margin from learning services due to the economies of scale and the continuous optimization accurate of its cost structure.
It is also due to the substantial sales growth of the smart learning hardware such as the old Dow Dictionary pen, which carries a higher gross margin than other hardware product lines.
GP margin for innovative businesses and others was $14 four per cent compared with 15, 8%.
First quarter of last year, while the margins for Netease Cloud music Convention has improved year over year significantly the impact was partially offset by the decrease in GP margin from the rest of the business segments in this line.
For the first quarter total operating expenses, while renminbi six 8 billion.
Representing 33 per cent of the total net revenues, our selling and marketing expenses as a percentage of net revenue was $13 five percentage in the quarter.
If excluding the odell, our selling and marketing expenses as a percentage of net revenue.
We're below 10% lower than the previous quarters.
As a reminder, fluctuation in selling and marketing at the percentage of revenue largely depends on the number of new game launches in a particular parts of it.
The genre is the right, Inc, and the most suitable marketing plans adopted for each new game launches.
R&D expenses for Renminbi, $3 1 billion largely stable from the previous quarter we.
We remain committed to investing in content creation and product development, which is core to our revenue growth.
As a percentage of mass revenue R&D expenses were 14, 9% compared with $15, 3% glass of water.
The effective tax rate in this quarter was 22% the effective tax rate represents certain estimates by the company regarding the tax obligations and benefits applicable to it in each quarter.
Non-GAAP net income attributable to our shareholders for the first quarter totaled RMB, five 1 billion or U S. Dollar of $776 million, our non-GAAP basic earnings per Avs, where renminbi 758 or U S dollars 1.16.
Our cash position remains strong.
It's all of the quarter and our total cash and cash equivalents current and non current time deposits and short term investment balance totaled RMB 106 day.
Compared with 100 billion as of at year end of last year.
In accordance with our dividend policy, we are very pleased to recall that our board of the directive has approved a dividend of U S. Dollars 0.06 per share all U S dollars year old plane three per avs.
Lastly, under the share repurchase program approved by our board of approximately 3 million 80, yes had been repurchased in the first quarter for a total cost of approximately USD $330 million.
Thank you for your attention we would like now to open the call to your questions.
Operator, Please go ahead for Q&A.
Thank you Sir if you would like to ask a question. Please stigma of by pressing star one on your telephone keypad.
If you're using a speaker phone. Please make sure that the assumption is stern of to allow you of cigna the reset equipment.
For the benefit of all participants on today's call. If you wish to ask a question to the management in Mandarin. Please immediately repeat your question in English.
Please ask one question per time, Inc.
He would like to ask for questions. Please join the queue by pressing star one again.
Well pause for just a moment to allow everyone an opportunity the signal for questions.
We'll take our first question from Alex Poon with Morgan Stanley.
Okay.
Especially I guess all of the tier one.
What kind of when you talk line you.
The way light.
You'll see some of the scan for them yet.
The press release kind of dial in the months yet.
The weighted FICO, yes, a few.
So you're quite time peeing don't play too.
So we thought it had been for quite some of them. So you saw one of you got U T that you share.
To keep the Harry Potter a lot of the range. The Diablo of 50 quite Youll see the you said.
He said city of di South as of January of Hologic of soft with the Sox.
Testing.
On the Ccs.
My question is regarding the press release, we have mentioned.
These are big titles, Harry Potter of lot of the rings of Diablo immortal will be coming in the next few months.
In the coming months.
So what I'd like to understand about the launch schedule and details around these three big titles. Thank you very much.
Yeah.
Thank you Alex I'll answer your question directly in English, we do have very very strong visibility and confidence of for a rich pipeline.
Including highly anticipated games like Harry Potter, our Lord of the rings, Diablo immortal and I and a few others that I mentioned, just now and many of these games have already obtained the license approvals already from the regulators.
Most of these games will be launched in the second half of this year. In fact, two days later on our annual Gala game day of May 20th of event Ah, we will be disclosing more details.
Existing games as well as some of the exciting new titles I would encourage you and the investor community to to join our event on line to get more details just in two days' time, so a little bit more patients sleep.
They got to die of warning.
Yeah.
Thank you we'll take our next question.
From the allo sheet with Nomura.
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Good evening management, Thanks for taking my questions I was.
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The you'll see the Anthony so one of your thoughts on somebody else true in doing so he can share a kinder did share a pick of you'll see upon day to go tell debt. What did you find the job. So I will translate my questions. In recent years, there have been some independent game studios, which we're able to launch the very successful.
Self developed titles are just like net is these new game studios also publish the our games on their own instead of going through a third party publishers. So my question is do you think in China's mobile gaming space. The competition is becoming more intense and if that is the case how does the east.
To cope with the cope with the challenges from the small but high competitive game studios.
Oh.
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Okay.
<unk>.
The you made the companies that you mentioned have had a great set of reasons recently is it means that the overall environment of creativity, especially the game and it is that of goods in China. Net is are we have been of business for over 20 years.
We'll continue to innovate to thrive and we are happy.
With the for the success out of the smaller gaming companies have achieved and the we will and the way.
We'll continue to fight and a and Z. Thank you.
Thank you.
Thank you for taking the next question from for.
The Ms Cheng with Jefferies.
Uh huh.
Yes.
Okay.
Hi management, Thanks, Oh, taking my questions.
Can you comment about our online news of dust strategies.
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Oh hi.
Yeah.
Yeah.
Okay.
Yeah, how much do you want to translate the question in English.
Okay.
Thomas I will answer the question directly in the.
English, yes, they're off as we've been mentioning in the past couple of quarters here. There are plenty of possibilities in terms of product innovation in terms of our monetization streams that centered around this.
And the music first call and we are very encouraged to see strong continued and robust growth in.
In both subscription live streaming advertising and new possibilities as we continue to.
In the Bay and try out so right now that he's called music. Despite the fact that it's been eight years old now it is still in its relatively early nascent stage. So lots of possibilities a revenue growth in the mouse a multiple format that you mentioned.
Have all been very strong.
And specifically you asked about long format.
Ordeal, that's a very important for it to call. In fact, we are far from the end of a pioneer in this in this particular long format ordeal, a majority of our live streaming revenues actually come from La format audio and there are more players.
Is that's been all in two of them coming into this these vertical it has just proven one more time that hall that the.
Potential upside of this vertical and I think Matt He's called music just like many other product lines other than that is brand umbrella. We focus on the unique product features powered by product innovations target specifically to this vibrant young.
Generation of music and she was debt with that we are actually very confident on multiple fronts. Both.
Both in terms of product features as well as monetization potential.
Thomas.
Yeah.
Okay.
Okay.
Operator next question please.
Thank you ma'am as a reminder, please press star one to ask a question we'll take our next question from Eddie Leung with Bank of America.
Yeah.
Why is that all of them.
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And so my question is actually I get the falloff on the gaming industry.
So number one congratulations on the continuous success of our fantasy westward journey and the westward journey series.
It seems to be interesting to observe that.
Globally, no matter, where the ease of a successful PC mobile console game developers.
It seems to be relying on them to some extent of new versions of the old games on some of the Ips are fairly well.
Why is that true some of the new companies.
The boats to come up with a fake I call them. The Ips. So just wondering as a leading global game Comedy's. Neil how are you thinking about these kind of like E. Two and is there any indication of when we developed a lot of games strategy I think of.
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Yep Yep.
We do know entirely agree with the upcoming we think obviously simple.
The important for new companies to create new IP for new titles.
But more importantly, it's a long time long term operation of of good.
It's actually titles.
That's from net.
The effective well, we'll continue to do what we are doing over the past year, we've launched a number of very great you know of.
Innovative industry, leading titles, including the EOG adjusted and net of a cup of they point to name a few.
And I said it was the lately so do we think I mean.
We will continue to do what we're doing and out of two to create a new games as well as maintaining our long term stability of our existing titles.
Thank you and I think just to add one more point as you can witness in the past.
A couple of quarters.
When there are.
Few a new game launch in a particular quarter you ought to know these financial performance has been steady. It is again something we talked earlier in the past.
Net.
<unk> is the very very unique combination of of continuous innovation.
To come up with new titles as well as the operational know how to extend the the longevity and effective monetization of the old titles. It is because of this combination that we are able to deliver very steady and gradually improving financial profile for all.
The two decades.
Yeah, that's very true Susan Thank you.
Thank you as a reminder, please press star one to ask a question.
We'll take the next question from Alicia Yap with Citi.
Hi.
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What's the if I E. Yeah. Thank you for taking my questions. My questions is related to the cloud Newsday. So with net east are now currently signing directly with all the three major music label would that change the overall attractiveness of the content selection for user and.
Also with the help on driving the music subscription growth.
Any material change on the gross margin impact and the.
So can management.
Elaborate the music strategy into the Iot partnership any interest that you are or of spending at the partnership waste all of the Oems. Thank you.
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Oh, Hi, Lisa just I I hope you found the at the Wassa, She's who has a total jobs through the.
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For the Utah inverter for household you Patricia.
I see the the streaming platform of social community for the music enthusiasts net.
Cloud music is actively has always been actively seeking partnerships with content providers the label Company Inc.
What's the help them promote their music in China and.
After the split the question and in terms of Iot all of finishing all of home furnishing and again. This is another important growth area for all of the top music.
Music.
Okay.
Thank you.
Thank you we'll take our next question from SC tank.
With Goldman Sachs.
Yeah.
And the diesel on the telephone Margaret.
Now what did you include all of that Glenn Tiki the highest.
She joined the Fontana.
For the talent.
And until the exciting titles I don't want to be you won't tell each day.
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The things you're doing that.
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All of the EG.
Looking ahead of launch.
And then the Jennie O.
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Oh, okay.
Sure.
What's your it'd be the Gaba.
Good evening.
Uh huh.
Don't mind Margaret and my first question is all of international games.
We noticed that there are a lot of titles for the theory that it seems.
For the different international markets, whereas they have different genres.
That's the first off then keep want to touch base with the audiences over there. So just wanted to follow up a little bit more here that what we're thinking about different international markets to actually have the sort of differentiation differentiated competitive strategy and then you know.
For any Oh, my God detailed color on how we're positioning ourselves that will be great and then the second question is on the innovative businesses and we noticed the seasonal.
Fluctuation in contribution to revenue of the businesses and the fourth quarter could be the good yeah, sorry of the corner right.
You know maybe comment more of them.
So I just wanted to understand a bit more so you know of any types of the quote kind of off the two major lines. One is the economy I just wanted if the company owes it how would you describe the growth curve and what the or commentary on that growth path for this.
True.
In the long term do you have any targets for them to sort of.
Potentially become another major growth driver for the company. Thank you.
Okay.
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All of this I mean, if I shouldn't that kind of talk what are you sort of how the horses zone.
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Hi, all of which of them, even so oh of Shaoxing, Oh switching the other.
Yeah.
Yeah, Yeah. So dollar of what you saw.
The whole team just to go without a lumpiness to the.
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So because of a myriad of other sit on the law.
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The cause.
So for some of them yeah, what assumptions all of them. So she wants you to the press.
It includes all of our Inc.
It was for the juice the farmer.
Okay.
Yeah. We do have we have noticed that you know there are because of the different culture and different devices used by using it in different parts of the world, we need a very different product.
Probably the two particular regions of countries that resonate with the use of SAP.
We are confident we will figure this out for example in Japan, We haven't we've we already have a number of assets that's the.
The titles, including lifestyle ended the five life. After recently, we have launched a new a new PC game play point all of team and that has seen and so for me that has resonated very well with the other way with where they use of doing the testing on the face is a.
Now they come back type of thing based on all of the until the Chinese martial art and I know we already supply. We are pleased to see that he has he has responded well by a variety of global users. Thank you.
And I'll see if playoffs second question I'll answer that directly in English I wasn't new newer businesses, whether it's online education online music. None of these young share I'll, let them in relative younger phase.
Having two of our game businesses, so by and large we think these younger business purge of Kohl's has very promising growth trajectory are they should grow faster than my game. The U in general when you look at each part of her rab of different Bu.
Use my the experience different seasonality for instance, Q1 is the traditional peak season for game.
Performance, specifically because of the Chinese new year, whereas at the relatively low season for instance for E Commerce.
Likewise education also witness the strong seasonality in the different the masked the causes throughout the calendar year. So all in all of our don't be overly concerned about a quarterly fluctuation, but generally speaking when you look at on the annual.
Trans basis for ring things my innovative businesses and other line as well as my role at all in 2020. Both line has been growing very strong and much faster than my online games services, what we wants to achieve down the road eventually is that all of our.
Deeply are incubated and I'm cultivated verticals will have a very robust and sustainable growth and and as they continue to grow in the image of what we want to appeal to the users is what now the holding common.
The premium product and services offerings, we elevated user experience that is the corporate DNA and common across the board.
Okay. Operator next question please.
Thank you Sir once again, if you would like to ask a question. Please press star one.
It appears there are no further questions at this time I'd like to turn the call back to the management for closing remarks.
Yeah.
Thank you once again for joining us today, if you have any further questions. Please feel free to contact us directly or TPG ratio.
The rest of where they should have a great day.
Yeah.
This concludes today's call. Thank you for your participation you may now disconnect.