Q2 2021 NetEase Inc Earnings Call
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Good day and welcome to the and that you went to 21 second quarter earnings Conference call. Today's conference is being recorded at this time I would like to turn the conference over to Margaret <unk> IR director of <unk>. Please go ahead.
Thank you operator. Please note the discussion today will contain forward.
Relating to future performance of the company and are intended to qualify for the safe Harbor from liability as established by the U S. Private Securities Litigation Reform Act such statements are not guarantees of future performance and are subject to certain risks and uncertainties assumptions and other.
Because.
Some of this lifts are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and the discussion.
A general discussion of the risk factor that could affect <unk> business and financial results is included in certain filings of the company with the Securities Exchange Commission, including its annual report on form 20-F, and the announcements and filings on our website of Hong Kong stock exchange.
Company does not undertake any obligation to update these forward looking information except as required by law.
During today's call management will also discuss that.
Our non-GAAP financial measures for comparison purposes, only for a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results. Please see the 2000 <unk> second quarter earnings news release issued earlier today.
As a reminder, this conference is being recorded in addition, an investor presentation and a webcast replay of this conference call will be available on our corporate website at IR <unk> net E Dot com.
Joining us today on the call from <unk> Senior management team is Mr. William Dean, Our Chief Executive Officer, Mr. Charles Yang our Chief Financial Officer.
I'll now turn the call over to Charles who will read the prepared remarks on behalf for them.
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 calculated based on renminbi.
Our growth momentum continued in the second quarter with total net revenues of RMB 25 billion, representing an increase of 13% year over year.
Our online games in the second quarter total revenue was RMB 14, 5 billion up 5%.
Year over year, despite a high comparable base in 2020.
Our PC and mobile games remained our dual growth engine for online games.
On the PC side America place points, our next generation Battle Royale game.
One of the hottest game in the market.
First launched in China in July followed by the global launch on August 12.
Marketplace point quickly became the pack weekly seller on speed, we named the enthusiasm of Chinese and overseas player and marking a new breakthrough for us in the global market.
With captivating gameplay and state of the art graphics.
<unk> W was very well received among hardcore players in western markets.
We will continue this positive trend by introducing more content from different cultures around the world and start to work on other formats of the game, including console game and mobile version as we look to tap into these large market opportunities in China and abroad.
Our legacy flagship PC.
PC titles, particularly as WJ, new westward journey online.
John continue to show remarkable longevity with strong year over year growth to nearly two decades of operation.
We have created a strong and sophisticated social community within each game and we continue to keep our users engaged with regular introduction of high quality expansion packs.
This type of longevity has also been extended to the mobile side fantasy westward journey mobile game.
What journey online mobile game and Theyre seeing all continue to demonstrate strong performances during the second quarter.
Touching on some highlights from a few other mobile games this quarter.
<unk> remains an iconic title holding strong appeal with young users.
We introduced a major annual expansion pack the rather than in August offering players a new category of characters, new maps and more gameplay option.
These innovations allow our game is to explore the doomsday world is unprecedented and exciting way.
Grinning lie off to back to the top of China's iOS download chart.
<unk> Arena, our mobile game based on our proprietary <unk> IP has progressively build strong appeal among the young generation of players.
Leveraging our strengths in product design arm Yohji Arena has impressed users with its widely acclaimed and not a cost various fee.
Including Chinese traditional culture, cyber punk and Japanese anime.
Some of the scheme design has even become high trending topics, bringing us a continuous stream of new players.
<unk>. The original flagship game is another matter east game that continues to shine and frequently lead China's iOS top grossing chart.
During the second quarter, we rolled out a new version that's greatly in reached the <unk> World. The update features a fascinating new storyline and two popular new characters that thrilled our player community.
Again, fortifying <unk> spending as a cop agc's themes gaming China.
During the second quarter and more recently, we have also expanded our offerings a new genres as we continue to diversify our game portfolio with.
We launched Ace racer in Shanghai, our very first self developed racing game.
Leveraging our industry, leading <unk> and graphic capabilities Ace racer featured track design based on real urban landscapes of Chinese cities, such as Hangzhou and <unk> sure.
Shortly after its release eight <unk> topped the iOS download chart and reached the top 10 on China's iOS grossing chart.
Two weeks ago infinitely grunge our space themed S. Algae gain made a strong debuted in China climbing up into a top three third cop 30 title on the <unk> growth and shot in less than a week.
As a new game of this genre with each reduced for the Chinese market. After embraceable, we hope infinitely ground will also earn the risk back from clean player and a good share of ex LG to market. It.
Content innovation.
Other new games that we recently launched in China include Paki, Mount packed Marvel Super War.
These gains further enrich our dynamic domestic game portfolio genre and many of them quickly reached the top of the iOS download chart following their releases.
Moving to overseas market, we are very excited to see our gains keep reaching new milestones outside of China.
Over three years ago knives out made its name in Japan.
And became one of the highest grossing games ever made by a Chinese game developer to go overseas.
<unk> has held its leading position and continues to take place in the upper echelons of China of Japan's iOS top grossing chart.
Particularly when following various collaboration with well known local Japanese IP, such as Eva and one punched.
Today <unk> has emerged as our next breakthrough on the international stage, which further boosts our global expansion efforts by opening the door to mainstream western market.
Steve Malone narrowed to Blake's point has achieved the milestone of 100000 peak concurrent users and the number will be even higher when we include players who play the game on our official channels.
As one of our global initiatives Merica Blake point startup with Chinese martial arts culture and then.
Essentially broadens its concept to eastern fantasy by introducing universal elements more familiar to western players such as new characters like Pershing Warriors, and new weapons, such as markets and kind of.
These elaborate design, which have greatly helped fuel strong mindshare amongst hardcore player community in the western market.
Furthermore, for Harry Potter Magic awakened one of the markets. Most anticipated title we closed the final round of beta testing in June with very encouraging user feedback. It is now set for launch on September nine across Chinese mainland Hong Kong.
Macau, and Taiwan and will be successfully launched to various other regions globally.
We look forward to seeing Eagle global player become Hopwood freshman meet diversified Wizard partners loan spell gain magic knowledge and experience the amazing life of wizardry.
A lot of the rooms right to walk is another exciting title coming soon pre registration for this game has been available since August 25th.
We are engaging and thought provoking game play as well as the strong appeal of the Lord of the rings IP, we see great potential for this relief and look forward to impressing players with the global launch, which is now confirmed to be on September the 23rd.
But diablo immortal in July we had our first beta testing in China, and we are very excited with the strong feedback from the user community, we will keep working to bring our worldwide player engaging game experiences.
The list goes on we have a handful of other exciting titles in our pipeline as well.
You either pre announced named include Nightmare breaker of PC game and Ghost World Chronicle.
Our mission to create World class Gainesville player has never wavered.
We are relentlessly scaling new heights in terms of game development technology. Our game engine is one of the key asset within our R&D infrastructure.
Recently, we've made a significant step forward with one of our flagship game engine Messiah in which we operate.
To have implemented the worlds first high quality real time global illumination algorithm.
Our devices.
This is a major breakthrough with our in house engine technology, helping us to greatly speed up the pace of our artistic development and bringing world class visual effects into our games.
Turning to <unk>, our net revenues in the second quarter were RMB, one 3 billion, representing a 108% growth year over year.
As an intelligent lending company Europe.
<unk> is and has always been committed to enhancing its competitiveness for the young generation through advanced technology.
In line with evolving national gas guideline, our aim is to explore new strategic opportunities.
In non academic businesses, such as steam cautious about learning and smart learning hardware devices.
In the second quarter, we further expanded our theme course offerings.
For example, mass revenues from Europe, our goal with our wage increase.
Increased by nearly 180% quarter over quarter, and we launched more advanced level courses to further meet our users growing lending needs.
Back in March with an eye towards the growth opportunities in adult education sector, we established a dedicated division.
Add on education are integrating our DAU premium courses for Apple.
China Universe can move and net east cloud classroom.
In terms of premium costs for adults its mass revenues accounted for around 22% of total net revenues in the second quarter means.
Meanwhile, we launched an upgraded version of our practical English call to provide adult users with more immersive and effective learning experiences.
In addition, 137 courses on the China Universe can move platform have been certified by the Ministry of Education as recommended causes for academic studies and continued career development.
Learning devices remained another major revenue source for Europe.
With a mission to improve learning efficiency.
This segment generated net revenues of RMB $206 million in the second quarter, increasing 139% year over year.
We also introduced a new version of our addiction to re Pan Europe.
Dictionary pancakes III designs to be more friendly to elementary school and pre K K more affordable and supportive of learning.
Matti in addition to English and Chinese.
With that said, we expect Europe to be somewhat less affected by the recent regulation.
It has other high growth businesses. In addition to existing K 12 academic after school tutoring classes, whose revenues accounted for around 41% of total revenue in the second quarter.
Looking ahead.
We will continue to strictly comply with national guideline and we are confident in eurodollar future development as Dow has one of the most talented R&D and teaching skill sets in the industry.
Looking at our cloud music business, we have successfully maintained our user growth momentum over the past quarters.
By the industry wide slowdown.
While <unk> over Miu ratio remained above 30% in the second quarter.
Owning to our advanced social networking functions and promotion line 88, VIP program in the second quarter, our membership paying ratio almost doubled year over year.
In terms of margin, we continue to see improvement with our cloud music business as it increases its scale.
In the past quarter, Matt is cloud music achieved positive gross margin for the first time ever marking a new milestone with our music operations.
We believe that our ongoing top line growth in this segment will position us to continue driving margin expansion over time.
We keep our users engaged through constant innovation and product improvements.
Earlier this year, we gave our price winning function listen together, another new touch, allowing users to listen to music together not only vis frame, but also with other users providing additional social networking opportunities.
Furthermore, our newly launched function play list sharing concept has been very well received by our users, allowing multiple users to co create and manage platelet at the same time.
On the content side, we are pleased to see the changes that the music industry is currently undergoing which paved the way with strong and sustainable growth over the long term.
We hope to work together with other industrial players to ensure quality music is accessible to a wider audience at a more reasonable cost.
Which will ultimately benefit music lovers, and the industry as a whole.
Now turning to <unk> as our private label consumer brand, we continue to focus on building <unk> brand equity.
Primarily we are introducing highly popular product with proprietary award winning product designs and strictly controlled product quality.
In April the <unk> House Kelsey.
And one case gift box one the German design.
Design Award 2021.
Working with major channels, including Taobao, Tmall and JD, our recognition from the broader public is actively growing.
During the June 18 promotion period, <unk> Park, JV household daily sales related and our cat food category with causes the highest domestic cat food sales on both Tmall and JD for the first day of the June 18 promotion.
In June of this year, we published our 2020 ESG report.
Outlining our ESG policy achievements and improvements we made throughout the year, we started our ESG accurate as early as 2018 and issued our first ESG report last year.
As a company is deeply committed to social responsibility.
We will be keeping our accurate to being a responsible public company and we will continue to pursue the ESG initiatives and we will forge ahead with our strengths to create greater value for our stakeholders and the community at large.
Finally during the quarter, we celebrated our 24th anniversary as.
As we review our path and look towards our future. We know innovation is key.
Innovation has been at the heart of our journey and we will continue to be the driver for our future growth.
Empowers us to create amazing products and services that are adored by hundreds of millions of people.
As we move forward, we will be dedicating even more time and resources to identifying and training talent and fostering innovation that creates a more promising and exciting future in each of the third Kohl's we operate.
This concludes William's coming.
I will now provide a very brief review of our second quarter of 2021 financial results.
Given the limited time today's call I will be presenting some abbreviated financial highlights.
Encourage you to read through our press release issued earlier today for further details.
Total net revenues for the second quarter, while RMB, <unk> 5 billion or USD, three 2 billion, representing a 13% increase year over year.
Our net revenue from online game services were RMB 14, 5 billion up 5% year over year, despite of last year's high base benchmark.
<unk> increase was primarily due to newly launched change regulation mobile game and existing games, such as fantasy westward journey online.
<unk> revenues from our mobile games accounted for roughly 72% of total revenue and overseas revenue accounted for roughly 10% of total revenue in the second quarter.
<unk> net revenues reached RMB, one 3 billion up 108% year over year, driven by fast growth of both yoga online courses and the sale of intelligent learning devices.
Net revenues from innovative businesses and others, while RMB four 7 billion for the second quarter up 26% year over year, mainly due to the increased contribution from Matisse cloud music.
For cloud music, both membership and streaming revenues maintained solid growth momentum driven by robust paying user expansion.
Overall total gross profit margin was 54, 5% with a breakdown as follows.
Gross profit margin for game services was 66, 1%.
As a reminder, this number is generally stable with some narrow fluctuation based on the revenue mix of PC versus mobile game as well as self developed and licensed games.
Gross margin for Europe, with 52, 3% compared with 45, 2% in the same period of last year.
The significant year over year growth was mainly attributable to the improved learning services gross margin, which was due to improved economies of scale and continuous optimization of its faculty compensation structure.
Substantial sales growth of smart learning hardware, such as Europe Dictionary Pen three zero also contributed to these gains active line carries a higher GP margin than other product lines.
Gross profit margin for innovative businesses and others was 19, 3% compared with 18, 5% last year. The improvement was mostly driven by Matisse cloud music as a gross margin turned positive for the first time during the pocket.
For the second quarter total operating expenses were RMB seven 4 billion.
36% of our total net revenue, our selling and marketing expenses as a percentage of net revenue was 14, 7%.
If we exclude the hotel, our selling and marketing expenses as a percentage of net revenue were 10, 6%.
<unk> was 10, 7% in the second quarter of last year.
R&D expenses were RMB, three 4 billion largely stable from the previous quarter.
We remain committed to investing in content creation and product development, which.
Which is core to our revenue growth.
As a percentage of net revenue R&D expenses accounted for 16, 6% compared with 14, 9% in the previous quarter.
The effective tax rate was 24, 3% for the second quarter as a reminder, the effective tax rate is presented.
Overall basis and the tax credits differ from each of our entities at different time periods, depending on applicable policies and our operation.
Non-GAAP net income attributable to our shareholders for the second quarter totaled RMB, four 2 billion or <unk> dollars $655 million.
Our non-GAAP basic earnings per ADR.
089.
<unk>.
020 per share.
Our cash position remains strong as of June 30th our total cash and cash equivalents.
Current and non current time deposits and short term investment balance totaled RMB, one 8 billion compared with RMB $100 billion as of the end of last year.
In accordance with our dividend policy. We are very pleased to report that our board of directors has approved a dividend of <unk> 0.048 per share all U S. Dollar 0.24 per Aes <unk>.
Lastly, under the share repurchase program approved by our board on February 25th approximately $10.0 million has been repurchased as of June.
June 3rd tier for a total cost of approximately 0.5 billion U S dollars.
Today, Our board announced the approval of the amendment to further increase the total authorized repurchase amount from a previously approved U S dollars 2 billion to a new caf amount of $3 billion U S College.
Additionally, our board has also approved a share purchase program of up to USD 50 million of outstanding.
For a period not to exceed 36 months beginning on the second of September.
Thank you for your attention we would like now to open the call to your question.
Peter Please go to Q&A.
Thank you, ladies and gentlemen, if you would like to ask a question. Please signal by pressing star one on your telephone keypad, if you're using a speaker phone. Please make sure. Your mute function is turned off to allow us signal to reach our equipment.
Again, Chris THAAD, one to ask a question.
For the benefit all participants on today's call.
Wish to ask a question to management in Chinese please can you.
I'll repeat your question in English please.
Please limit your questions to one at a time if you wish to have follow up questions. Please rejoin the queue.
And we will now take the first question from Alex Yao from Jpmorgan. Please go ahead.
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Thank you management for taking my question I have a question.
Teenager in game indulgence, and the new policy introduction.
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How should we think about the financial and operational impacts into your gaming business. Thank you.
Paul.
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So the only three hours a week has allowed us to play a game one of the largest gaming companies in China.
The support of the of this decision.
Over the past year as we have noted that certain games around industry has had.
A negative impact on our chosen.
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We think that the new requirements, the new regulations will keep teenagers away from <unk>.
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Keep a PMA just away from gangs for as far as possible.
So we want companies in this industry together to support.
To support this regulation and requirements and <unk>.
Financially, we would like to share with you that less than 1% of our revenues actually come from under aged children.
Alex just to clarify when we say less than 1%.
We are defining minus at age 18.
Different companies might have disclosed different data, but according to the China law minus wage in Yesterdays definition is for people below the age of 18 for that category of population.
It accounts for less than 1% of our total gains.
Gross billing financial implications.
Thank you Ed.
And we will now take our next question from Kenneth.
Credit Suisse. Please go ahead.
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Limits.
<unk> for the under age.
Why would those short term financial impact will be limited how should we think about.
Clear cultivation going forwards.
What's the longer term or medium term potential for growth.
The second question is with no more exclusivity for the music copyright how should we think about our direction.
So I think investment in the music copyright and content going forward. Thank you.
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So first question, we think that the healthy wholesale growth of our children.
It's a tough comp for us in the nation for the government and as a company we need to think about our sales responsibility, we need to think about think of lung cancer and the product great. The greatness of the society.
We are interesting.
In making cost is high quality games that appeal to.
Two two adolescent appeal to audiences around the globe.
Well, we are not interested in making profit.
As a reminder.
And to answer your second question and as you have.
You might have just noted that CME has just that now.
Yeah.
I've made the announcement about relinquishing there is good activity and we certainly hope that is that that is 18 seer announcements from CME.
They're not going to be say one thing until another.
Here, we wanted to we wanted to appeal to the opportunity to appeal to.
The label companies in every stakeholder and partners in industry to co create a wholesale balanced.
New industry.
19th with ultimate facility and sufficient funding, we want to work together with Apple Lumpiness and just industry chatter.
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I would also like to add that we are very thankful for the REIT.
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Great trade partners have made.
Relating to the antitrust.
Regulation and policy.
State that the antitrust policy sent a very clear on the cost savings that exciting signal to the entire industry, which is a widely anticipated and warmly welcomed by music.
Okay.
Thank you Kevin next question.
We will now take the next question from Alex Poon from Morgan Stanley. Please go ahead.
So Charles Margaret.
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Save myself my question is related to.
The strong game pipeline in the second half, including a lot of the rain Snow play point Harry Potter.
Breaker et cetera.
All of these games are very strong titles.
How should we think about the game revenue growth.
Contribution from these games, especially starting in fourth quarter.
Very much.
Thank you Alex I'll answer your question directly in English.
As you May know America Blake claimed was already launched in the summer and we have made another major breakthrough on steam platform.
Again this is not only a new genre game, but also a new achievement I think very excited to witness.
The next month is going to be busy Harry Potter Lord of the rings.
And a few other gains are all set to launch in September we saw a few others.
The later half of this year.
The one thing, though I want to reiterate is that Matt is here at night is we always emphasize on the quality of the games the longevity of the games and the us.
Appreciation and receptivity of these games, we are not so much interested in the financial ups and downs in one particular quarter or two but rather we are very confident that our relentless asset in launching these new games will continue to diversify.
<unk> gaming genre offerings continue to.
Advanced our global expansion initiatives as well as gaining more market share.
Across different categories of the games.
And to Apple what William commented earlier.
We really think the open secret of winning the hearts of the gamers is to grow the quality.
And the content rather than any other tricks on measures so Alex hopefully that answers your question.
Thank you.
And we will now take the next question.
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Hi sung international please go ahead.
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Global corporate banking.
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That's helpful.
Well, it's a little thing.
Thanks, Nick.
Charles and Michael for taking my questions and congratulations on another solid quarter.
Question regarding the gaming millicom.
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Just to stay with either you can pretty well.
Thank you and thank you Natalie they also come from Japan, and so the game right now we've got a mix of cookie based.
And also in game purchases.
As of today.
The in game items Creek, we created have been very attractive to our players which has caused a very.
Encouraging.
On.
Encouraging sell options the in game items, so today I'll, England in game purchases actually contribute more than and the coffee bakery sales.
Going forward, we will continue to create more engaged.
I tend to think about that appeals to our worldwide uses in terms of longevity, we have long term plans for this game.
Today, we actually host and we have we have range a number of very exciting esports campaigns in China and abroad, and we will continue to introduce new characters new gameplay to keep the content interesting to our users. So we're very confident with the longevity of the game.
In terms of.
The strategy going onto different formats of entertainment well, we are we actually going to launch.
Statements game consoles around Christmas time, and we're also we also have a team working on the mobile version of this game.
And same time, we have we host.
The email campaigns around the world to keep creating.
Vital to keep keep taking to a high amount of games and that will keep creating baidu discussions up to date.
So we have a very holistic plan for.
For NASA breakpoint.
Okay.
And naturally to Europe to your last part of the question, whether we whether there is any inspiration for our overall game strategy I think with the breakthrough achieved by America <unk> point. It gives us extra confidence in terms of diversification not only in gaming genres, but also in.
Different distribution platforms for instance, narrowed to <unk> point is a very successful.
Game that has packed into the global particularly the Western Gamer community via <unk> platform I think that gives us more experience and know hows of developing and publishing future.
Future gains, especially towards the global market.
Yeah.
Okay. Operator next question please.
Sure.
Thank you we will now take our next question from Thomas Chong from Jefferies. Please go ahead.
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You sound like.
Thanks management for taking my questions. My first question is about a quarter.
Gaming is going to be launch worldwide.
Want to get a sense about our expectation for this game in the domestic market versus the overseas market.
Any.
Color about marketing strategies the way.
Eight that we attract users.
Our strategy.
And B shares would be great and then my second question is about the reasons are rental the HB and model it given the comp in August having a stringent measure.
How 'bout defend them culture in China, and more regulation on the live streaming.
These days just wanted to get a sense about the friend or foe.
Our codeshare with upfront our music business and also our live streaming outlook. Thank you.
Yeah.
Yes.
Okay. Thank you Thomas I'll answer your first question on Harry Potter directly in English and William will comment on your second question for Harry Potter. It is set to launch in greater China area.
On the 19th of September which is about 90 days from now highly anticipated.
Given the strong popularity and global appealing mix of the Harry Potter IP, we are very confident that this high quality game will be.
Huge success, both domestically and in the international market with this game launch we are hopeful that it can further reinforce the net east game brand image amongst the global gaming community.
The answer to your first question.
Great.
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We are actually in support of the visa regulations on the entertainment industry four.
And that discount music that we think the impact for us is somewhat minimal because for us the priority. The strategic goal is about creating original music. So our focus is about helping independent musicians to create music and as our talented individuals in China.
Okay.
Okay, Operator, Mexico simply thank you Thomas.
Thank you we will now take the next question from Eddie Leung from Bank of America Merrill Lynch. Please go ahead.
Neil Glen you talked about.
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Yeah.
We have two questions. The first one is on the tax rate, we understand that certain internet companies.
Get the approval for <unk>.
To enjoy a preferential tax rate of key software subsidiary recently, so just wonder if that he's would see any impact to the tax rate and then secondly regarding the overseas game market. So we expect that net used to set up more overseas studios.
And if so any more color on the Yahoo, Japan. Thank you.
Okay. Thank you Abbie while in the interest of time, let me answer your two questions directly in English.
Firstly on the tax rate.
This is in fact, not a new.
Development in our.
Plenty as issued earlier this year, we have already disclosed that there will be certain tax policy changes.
As announced by the tax Bureau earlier this year.
Litton industries, including e-commerce gains et cetera are no longer eligible for the key software.
Qualification as a result, we can no longer enjoy the 10% preferential tax rate.
However.
For specifically cannot ease for game a bit.
<unk>, we're still entitled to the high Tag qualification, which ground tests at 15%.
Preferential tax rate net net we believe this tax rate change it will have a roughly speaking about 3%.
3%.
Implication to us so 2020, our overall effective tax rate is around 19%.
I think this year.
For 2021 full year.
<unk>.
Full year level, our tax rate will.
Be somewhere in the low <unk> neighborhood.
Secondly for our overseas game expansion, we've previously announced our ambition to achieve at least a 30% of.
Of our game gross billing contributed from the overseas market in three to five Years' time, we are very well on track to achieve that.
Eric Blake claimed as another big exciting achievements that we have.
We have achieved this year.
For the overseas.
Market, we are now very proactively setting up overseas studios in Canada in Japan and in Europe.
The format of our collaboration or rather the format our strategies for us for packing to the international market can be very diversified doesn't necessarily require us to set up our own Standalone Studios. We are also very active in collaborating with the <unk>.
Road costs.
Around the world.
Supplementing each other strengths in some cases jointly develop or co develop hit.
Hip gains that's targeting for the global gaming community. So.
I think Matt is remains very open minded driving practical and very very active in this regard.
Okay.
Thank you operator.
Thank you Eddie operator in the interest of time, let us conclude.
The call today.
Thank you all very much.
Yes.
Okay. Thank you well thank you once again.
Yes, maybe I'll just finish with concluding Marc Thank you once again for joining us today.
Questions. Please feel free to contact us directly or TPG Investor relations have a great day. Thank you. Thank.
Thank you.
And ladies and gentlemen. This concludes today's call. Thank you for your participation you may now disconnect.