Q2 2023 News Corp Earnings Call
Currency adjust.
Speaker 1: Though most of that was due to foreign currency.
Speaker 2: Adjusted revenues were down only 3%. Profitability was $409 million compared to $586 million in the prior year, reflecting the challenges of interest rates and inflation noted earlier and the impact of fickle forricks movements, which have shown signs of abating in recent weeks.
Speaker 3: Even in the midst of the obvious global challenges I've described, Dow Jones had a solid quarter and the professional information business displayed particular promise, with revenues surging 45% year over year.
Speaker 4: The result highlights the value of our opportunistic acquisition of Opus and CMA, where we have recently launched products including carbon-credit indices and are working on more sophisticated analytics for our growing customer base.
Speaker 5: Risk and compliance again reported strong revenue growth, increasing 13% despite capricious currency trends, with the demand for know your customer tools expanding as governments globally continue to tighten regulations and wield sanctions.
Speaker 6: The imperative for an authoritative audit trial has expanded far beyond financial institutions and the credibility that Dow Jones brings is in itself an important factor for many companies. Is there anyone on this call who does not want to minimise risk and maximise compliance?
Speaker 7: Dow Jones has begun to roll out a new user interface for the Aladdin's cave of content, that is Factiva, which is an essential tool for serious businesses.
Speaker 8: The truth is that the interface was in need of simplifying and the Dajun's team have addressed that issue. The easier factive it is to use, the more it will be used.
Speaker 9: Overall, at Dow Jones, digital revenues now comprise 76% of total revenues, a 4% point rise over the past year. Some of that expansion is due to continuing strength in digital subscriptions. Digital only subscriptions increased 10% while total Dow Jones consumer subscriptions rose 5%.
Speaker 10: In fact, just in recent weeks, total Dow Jones subscription sold past the 5 million mark for the first time.
Speaker 11: Our Mulletour and the team are increasing the emphasis on upselling subscriptions with the bundling of market watch, the WSJ, IBD and Barons. The basic strategy is to provide an ever more premium service for our readers as we leverage valuable audiences across platforms.
Speaker 12: I am particularly proud to highlight the continuing revival of Foxdale's fortune.
Speaker 13: under the sage leadership of Patrick and Shavorn and the team. We have increased profitability and thus optionality. Reported segment revenues were down 7% while segment Ibitar rose a healthy 5%. Even more impressively adjusted revenues, which excludes the impact of Forex volatility rose 3%.
Speaker 14: while adjusted segment EBITDA Rosa handsome 16%
Speaker 15: Streaming continues to be a core strength of Foxteller, as we have added well over half a million paying OTT subscribers in the past year.
Speaker 16: Binge reached nearly 1.4 million paying subscribers in the quarter and will be launching an advertising tier later this fiscal year as we seek to maximise Foxtel's revenue potential. Total paying subscriptions at Foxtel were up 10% year-over-year and we also saw the benefits of modest price increases at Kayo and Binge.
Speaker 17: Our sports programming portfolio has been enhanced with the renewal of Australian cricket rights to 2031. We are now on the cusp of the peak selling season for Kao, as the Australian football and rugby league seasons will start imminently, and we solidified our entertainment offerings with an expanded multi-year content deal with NBCU.
Speaker 18: Overall, FoxTales' continuing success and positive trajectory have certainly increased our optionality for that business.
Speaker 19: Harper Collins experienced another difficult quarter, reflecting sluggish spending on books after the pandemic inspired surge. Difficult front-list comparisons as well as the continuing impact of Amazon's logistics issues.
Speaker 20: Under the prevailing circumstance, it is absolutely necessary to confront the cost base as we seek to bolster long-term profitability in the post-pandemic marketplace.
Speaker 21: Some of our key titles is quarter-include Fox News host Harris Faulkner's Faith Still Move Mountains and join again the stories we tell. While best-selling authors Colin Hoover and Taren Fischer's work never-never will be released later this month.
Speaker 22: The news media segment showed signs of real resilience in the midst of a volatile advertising market and Forex headwinds. The standout master was the son.com in the US, which reported a 127% year-over-year increase in quarterly page views. Meanwhile, the Times and Sunday Times reached nearly 490,000 digital subscriptions in the quarter of the project Cloud Drive screws, Pilates and applauds.
Speaker 23: And at Newscore Australia, total digital subs exceeded 1 million, representing an 11% rise year over year. Wireless had a solid quarter in connected listening, which was assisted by interest in the World Cup on TalkSport, while TalkTV revitalised its lineup. And the New York Post.
Speaker 24: remains on target for another profitable year despite the ad market. As for digital real estate services, the patent complexities of the current housing market in both the US and Australia are well known and have had an effect on REA and move. The property market inevitably has interest rate related cycles.
Speaker 25: But with rates nearing a peak in both the US and Australia, we believe the next phase of the cycle is not far away.
Speaker 26: We have this week launched a new campaign to use our media inventory to drive traffic at realtor.com and the positive effects should be seen in coming months.
Speaker 27: REA continued to maintain its number one market share in Australia this quarter with over 3.3 times the audience of its nearest competitor. And our business in India, now the market leader in audience, is showing much potential.
Speaker 28: While Leeds were down at Realtor.com in the quarter, the business saw year over year improvement in revenue per lead as the team is focused on pricing, sell through and close and the business saw year improvement in revenue per lead as the team is focused on pricing, sell through and close
Speaker 29: We now are increasing our emphasis on the monetization of cell side listings, as Inventory Time on Market has increased significantly in recent months, and we will be able to provide realtors and vendors with improved service.
Speaker 30: In closing, while we expect the MAC Road friends to have a continuing effect on our businesses and are committed to a 5% reduction in our workforce, we are confident that the combination of prudent cost management, sound capital stewardship, commitment to digital expansion and simplification should provide a firm foundation for future growth.
Speaker 31: and we will remain acutely focused on the creation of value for our shareholders as the possible sale of move eloquently testifies.
Speaker 32: We also remain firmly committed to our billion dollar share by-back and dividend program.
And now, from all granular account of our second quarter, I give you over to Susan Peniccio.
Thanks Robert. Before I discuss the quarterly results I want to expand on Robert's opening comments. As we noted in our recent SEC filing, we have been engaged in discussions with CoStar about a potential sale of Move. Any potential transaction would need to not only maximise shareholder value but also strengthen Realtor.com's competitive position.
We do not plan on making additional comments on this call regarding the potential transaction and will update the market when appropriate.
Turning to our fiscal 2023 second quarter results, the macro environment weighed heavily on the financial results and conditions worsened as the quarter progressed, most notably in December .
Second quarter total revenues were over $2.5 billion down 7% year over year, which included a $171 million or 6% negative impact from foreign currency headwinds. Excluding the impact of foreign currency fluctuations, acquisitions and divestitures, second quarter adjusted revenues fell 3% compared to the prior year.
The revenue decline was primarily driven by the book publishing and digital real estate services segments.
On a constant currency basis we saw continued growth in circulation and subscription revenues, which was partially offset by a modest decline in advertising revenues.
Total segment EBDI was $409 million, 30% lower compared to the prior year's record profits.
The results included $6 million of one-time costs incurred by the Special Committee and the company regarding the proposal from the Murdoch Family Trust, which has now been withdrawn and the Special Committee has been dissolved.
Adjust a total segment EBITDA decline 28% versus the prior year period.
For the quarter, we reported earnings per share of 12 cents compared to 40 cents in the prior year due to lower total segment EBITDA and higher losses from equity affiliates. Adjusted earnings per share were 14 cents in the quarter compared to 44 cents in the prior year.
Moving on to the results for the individual reporting segments, starting with digital real estate services.
The results include a negative impact of $26 million or 5% from foreign currency fluctuations. On an adjusted basis, segment revenues decreased 10%. Segment EBITDA declined 28% to $128 million impacted by lower revenues and a negative impact related to currency headwinds, partially offset by lower broker commissions at REA. Adjusted segment EBITDA declined 22%. REA revenues were $240 million down 16% on a reported basis, including a 9% negative impact from foreign exchange.
Revenues were impacted by the weakness in financial services due to fewer settlements than the rising interest rates and a decline in residential revenues driven by lower new by listings. In the quarter, Australia National Residential by listings were down 21%, with Sydney and Melbourne down 34% and 31% respectively.
Those declines were partially off set by price increases in the residential and commercial businesses, higher contribution from Premier Plus and favourable debt penetration, as well as continued momentum at RIA India, which is scaling in both traffic and revenues.
Please refer to ARIO's earning release and their conference call following this call for more details.
At move revenues were $146 million down 14% compared to the prior year. With real estate revenues down 17% driven by lower lead and transaction volumes, reflective of the broader housing market challenges.
Unique lead volumes felt 37% while Realtors average monthly unique users were 66 million in the second quarter based on internal metrics.
Turning to the subscription video services segment, revenues for the quarter were $462 million down 7% compared to the prior year on a reported basis due to foreign currency headwinds. On a constant currency basis, revenues rose 3% versus the prior year. The fourth consecutive quarter of growth in constant currency, underscoring the improved stability of the
benefited this quarter from growth in commercial revenues as the prior year results were impacted by the pandemic-related lockdown.
Total closing paid subscribers across the FoxTel group reached over 4.3 million a quarter end, up 10% year over year.
Total paid streaming subscribers were approximately 2.7 million, increasing 25% versus the prior year, and represented 62% of Foxtel's total paid subscriber base.
KO Paying subscribers reached over 1.1 million, up 11% year over year, but the client sequentially from the first quarter, as it exhibited typical seasonal patterns with the end of the AFL and NRL seasons in September . Given its enhanced expanded content offerings, FoxTell has rolled out a price rise to its KO customers' effective this month on its basic two-stream tier.
Binge pain subscribers grew a robust 48% year over year to almost 1.4 million subscribers, benefiting from a strong release slate which included the second season of white lotuses and carry over demand from the house of the dragon.
As Robert mentioned, we are looking forward to the introduction of advertising within Binge later this fiscal year and have begun selling launch packages.
Foxtel entered the quarter with 1.4 million residential broadcast subscribers, down 10% year over year. Broadcast churn improved sequentially and year over year to 12.9%, despite the migration of cable subscribers to streaming or satellite.
At quarter end, less than 80,000 subscribers remained on cable as Foxell continues to migrate subscribers from cable by his school year end.
Bordcraft RP rose 2% to 83 Australian dollars.
Segment EBIDA in the quarter of $90 million was 5% higher versus the prior year, which reflects an 11% negative impact from foreign exchange. Adjusted Segment EBIDA increased 16% despite higher sports and entertainment costs.
Moving on to Dow Jones, Dow Jones posted a strong top-line performance in the second quarter with revenues of $563 million up 11% compared to the prior year.
Digital revenues accounted for 76% of total revenues this quarter, up 4 percentage points from last year.
On an adjusted basis, revenues rose 1% impacted by a weaker advertising marketplace compared to the prior year.
Seculation revenues grew 3% driven by strong year-over-year volume gains, including bundled offerings with total Dow Jones digital-only subscriptions up approximately 10% to over 4.1 million.
We are particularly pleased with the performance at our professional information business, which saw revenue growth accelerate from the prior quarter to 45%. PIP revenues accounted for 33% of segment revenues.
The integration of OPPERS and CMA are progressing in line with our expectations as the businesses benefit from the strong demand across numerous industries including metals, carbon, plastics, sustainability, biofuels and renewables, while yields continue to rise and retention remain strong.
Risk and compliance revenue growth accelerated from a prior quarter, up 13% despite a 7%-point negative impact from foreign currency. We saw improved growth in all regions underpinned by a helping new business pipeline, most notably in Amir, led by demands of screening and monitoring and financial crime search products. Retention remains strong at above 90%.
Advertising revenues declined 7% to $131 million with digital advertising revenues down 3% in the quarter and print down 13%, which was mostly due to weakness in December , with October and November reasonably stable versus the prior year.
Digital advertising accounted for 59% of total advertising revenues, which improved 3 percentage points from last year.
The technology and financial categories, which are typically our two largest advertising categories, were both impacted by the macro conditions. We saw digital advertising growth at the Wall Street Journal.com, underscoring its premium audience. However, this was more than offset by the declines at MarketWatch, which face more headwinds as its audience and advertising demand tend to be more stock market sensitive.
Dow Jones segment EBIDAR for the quarter declined 3% to $139 million, reflecting a higher spending rate compared to both the prior year and the first quarter, driven by costs related to the OPs and CMA acquisitions, higher compensation costs and phasing of marketing expenses.
adjusted segment either down for the quarter was down 16%. We expect cost growth to moderate in the second half and I will provide more detail on this later in my commentary about the outlook for the upcoming quarter.
At Book Publishing, while we saw some impacts from the logistic constraints at Amazon, the results were mostly hampered by significant softness in consumer demand across the industry, notably North America.
On the cost side, lower costs due to volume declines were partially off-set by ongoing supply chain inventory and inflation repressures further contracting margins.
For the quarter, revenues declined 14% to $531 million and Segment Ibadah declined 52% to $51 million.
The backlist represented 57% of revenues up slightly from last year, partly driven by weaker frontlist performance, with the mix being more weighted towards physical copies rather than digital, which had an adverse impact on margins.
Digital sales declined 7% this quarter and accounted for 19% of consumer sales.
On an adjusted basis, revenues fell 11% and segment EBITDA declined 51%.
To mitigate the recent challenges, HarperCollins has already implemented price increases and has been actively reviewing its cost structure, including the recently announced 5% company wide headcount reduction.
Turning to news media, revenues were $579 million, down 9%, which included a $65 million or 10% negative impact on revenues from foreign currency. Adjusted revenues rose 1%.
Circulation and subscription revenues declined 7%, but were up 4% in constant currency.
Growth on a constant currency basis was driven by cover price increases in the UK and Australia and double digits subscriber growth across user's Australia and the times in the Sunday times.
We saw advertising conditions worsened from the prior quarter, albeit with variance across our markets. Advertising revenues were down 13%, but down 3% in constant currency.
Advertising at News UK was down modestly in constant currency as lower print advertising revenues were partially offset by strong growth in digital advertising at the sum, which has seen very strong momentum in both page views and yields from its US site.
Advertising trends were notably weaker in Australia and at the New York Post.
During the quarter we saw that December was the weakest month for both the UK and the New York Post, while in Australia November was the most challenging with December showing modest improvements month over month.
Segment EBIDAR of $59 million declined 47%, which was driven by approximately 22 million of higher costs related to the TORP-TV initiative in the UK and other digital investments notably in Australia, as well as nearly $21 million negative impact from higher newsprint pricing.
New York Post remained a positive contributor to Segment E. Bada. Adjusted Segment E. Bada fell 43%.
Free cash flow for the six months ending December 31 was lower than the prior year due to lower total segment EBITDA as well as the timing of working capital payments which included the payment for sports rights in the second quarter. We remain focused on driving strong and positive free cash flow generation for the year.
Turning to the outlook, we continue to expect higher costs due to supply chain and inflation repressures. Advertising conditions remain challenging and visibility is limited. We expect ongoing foreign exchange headwinds albeit at a more modest impact given recent spot rates.
We remain committed to reducing costs where we can, driven by headcount reductions across our business units, prioritise marketing spending and lower discretionary costs while balancing investment spend.
Looking at each of our segments, a digital real estate services, Australian residential nearby listings for January decline 9%. Please refer to REA for more specific outlook commentary.
At Move, we expect lead volumes to remain challenged in the near term due to macro-conditions, albeit moderating mortgage rates have led to early signs of improving trends in the housing market.
In subscription video services, we remain pleased with the performance of the streaming products and the ongoing focus on broadcast ARPU and Shown as we continue to migrate customers off cable. We are very encouraged by the year-to-date performance and continue to expect the Fox Delg Group's profitability in local currency for the full year to be relatively stable.
Profitability will be skewed to the fourth quarter as we expect third quarter costs to be higher in local currency compared to the prior year given the contractual escalators and expanded content from the AFL and NREL.
At Dow Jones, we remain focused on the integration of OPUS and CMA. January advertising trends were similar to December , with revenues down versus the prior year, and we expect trends to remain challenged, especially given the ongoing pressures within the technology category, noting that visibility is limited as usual.
As I mentioned earlier, we expect the rate of investment spending growth in the second half to be more modest than the first half rate, which should aid profitability.
In book publishing we are optimistic about our new release slate which should help with the performance in the second half, although near term industry trading conditions have remained
At News Media, similar to the second quarter, we expect ongoing inflationary cost pressures, especially on newsprint prices, which will be balanced by targeted cost initiatives.
We will continue to see incremental costs in relation to product investments, albeit at a lower rate than the second quarter.
And finally, in relation to the potential fail of move and the special committee's work on the now withdrawn proposal, we expect to see some additional one-time transaction costs in the third quarter. With that, let me hand it over to the operator for Q&A.
Thank you. We will now start the Q&A session. Please limit your questions to one per participant. If you have joined via the Zoom application, please use the raise hand functionality to ask a question. If you have joined via the audio line, please press star 9. Questions will be answered in the order they are received.
We will now pause a moment to assemble the queue. Our first question comes from Tain Hanan from Goldman Sachs. Tainer line is open. The queue is open until 3pm.
Morning guys, just two quick ones. One, just that 5% head count reduction you're talking about. I mean, we saw the 5% reduction for books. Do we think that's broadly consistent across the newscorp group or could it be more skewed to Dow Jones or NIS or something than the other segments?
And then I'll try my luck. You know, obviously seeing the move and I'll take your comments, Susan. But I suppose, how do I think about the importance of REA in the broader portfolio, if we assume that the move side was complete? I suppose some of the synergies of owning, you know, REA would diminish without the move asset in the portfolio. So just interested in any comments you can make there. Thank you.
First of all, the 5% reproduction will be across all businesses and it will be conducted in coming months with a view to concluding this calendar year. We expect savings of the order of at least $130 million annualised.
As for REA, what I can say is that REA is a core part of our portfolio. It's a different company to move. You can do the math for what REA is worth to us in terms of market cap, which is around $16.6 billion Australian dollars and our share is around $61.
to 38 million uniques. And we've transferred the oversight of the India business to the RIA team, where the expertise is evidence and cannibly the time zones more sympathetic. So not only do we have the most successful property site in Australia, we have the largest visual property site in India. So.
tell me what that's worth now and what that will be worth in a decade from now.
Thank you, Kane. Laila, we'll take our next question, please.
Our next question comes from David Karnofsky from JP Morgan David your line is open. Feel free to unmute
Oh, hi, thank you. With book publishing, wondering if you could quantify the Amazon impact in the quarter or maybe relative to last quarter, and then you noted a slowing consumer demand generally. Is that a function of post-pandemic behavior, the economy or just the titles that are in the market?
And Susan, any update on when you might expect some easing on the inflationary pressures there? Thanks. Well, first of all, it's difficult to specifically identify or quantify the Amazon effect, other than to say that it's real. And you can see from the facts that there was a certain 14% decline in revenues and, well, the segment fell 52%.
the mix of titles, you probably heard that physical was around 81% of the business in the most recent quarter. In the past years, digital has been as much as 24 or 25%. So the physical is obviously more.
impacted by inflationary pressures given the paper printing and distribution. Susan? David, just in relation to Amazon, just to add a couple of points on that. One, we did see a slightly lower impact in Q2 than what we did in Q1. And actually, in January , we have seen Amazon sort of spending patterns return to relatively normal levels, albeit that is predicated on...
Our next question comes from Craig Hubert from Hubert Research. Craig is afraid to unmute by dialing star 9.
Craig.
Greg? Greg, I see a giant elephant. You may unmute by dialing star 9.
Yeah, hi. Two questions I could real quick. If you can hear me, in your equity investment line you had like a $29 million loss there. Can you explain that if you would please? Is that sort of recurring here for the next few quarters? And separate from that, I wanted to ask you, CMA and the Opus acquisitions, what was the organic revenue growth there?
up losses in relation to that venture. I think importantly, we don't expect that equity loss reflected in due to be the run rate going forward. And then just in relation to open-sense CMA, we don't break out the run rate for that going forward. But you can see from the adjusted revenues, DJ revenue is up 1%, and you can see the impact of what the report is.
Just one very quick clarification around the 5% headcount reduction and I appreciate that must be a difficult decision. Presumably that only applies to the wholly owned assets and not REA. And then just secondly I appreciate you not talking about the
So moved specifically, but assuming it was to go ahead, how do you think about the use of the proceeds, given that could be reasonably material, are you thinking about reinvestment or are you thinking about whether the returns to shareholders?
And sure, obviously REA is a separate listed company, but I think I can assure you that they are very much focused on cost reduction in the present climate and you'll be able to hear more from the REA team a little later. Look, I can only speak generally about capital allocation. They're constantly reviewing our capital allocation.
But we'll also be opportunistic on investment as opus and CMA have providentially proved and we'll seek to share those profits, that providence will share others.
Thank you, Ancho. Lila, we'll take our next question, please.
Our next question comes from Alan Gold from Loop Capital. Alan, please go ahead.
from Loop Capital. So, Helen, please go ahead.
Yeah, thank you for taking the question. I've got two, please. Robert, we're seeing the US streaming companies sort of get religion and now looking for profits as opposed to just growth. How does that impact Fox tell? I know Fox tell have gotten a lot of its content from HBO and some of the other.
U.S. companies. So, does it now appear that that content will stay on FoxTel as opposed to those companies starting their own streaming areas? And secondly, you talked about one of your policies being simplification. Obviously selling move would help for simplification, but are there any other simplification moves we're seeing?
Well first of all I think we've spoken on past calls about the prospect of Imperial overstretch among some of the US entertainment companies. I think that prognostication is indeed coming to pass and it also shows you the value of the Foxtel platform.
of itself clearly a success story, not only for our company or for Australia but globally. They've got the streaming mix right, they've secured the sports right, long term, truly better to viewers and not only one sport in one region but across sports and regions. And looking here from New York Fox, tell us.
genuinely been transformed by much toil and sustained suggestive. It has evolved from what you call euphemistically a complicated situation to a genuine opportunity and we will be opportunistic with that opportunity.
And there's a question on simplification. And as for simplification, look, simplification and transparency are obviously important, as you can see by how the company's involved in recent years. We've broken out the data Jones numbers, which shed sunlight, not only on its potential and potency but on the situation of and revival of news media.
given the changes in that sector, the peripheral is simply not the integral. But simplification does not mean reductio ad absurdism and it does mean focusing on core growth engines, which is why we've invested in the professional information business at our Jones and the fruits of that investment are already obvious, even in difficult trading conditions overall.
Thank you, Alan. Layla, we'll take our next question, please.
And our next question comes from Brian Hahn from Warning Star. Brian's a free to unmute.
Oh, hi, Robert. You mentioned making price adjustments where necessary. Where do you see the priority divisions for such price adjustments from this point onwards?
Maybe I can take that right. I mean, look, I think we've got opportunities in each of our segments. We take cover price increases as it pertains to the mass tips across the media, the journal. You know, we're constantly having it look at our year, we're trying as the time thing to see what we can do to maximize those.
As I mentioned in my commentary, we've just recently announced a price rise at KO and that goes to the strength of the product down there. We had a price rise on binge, you know, not so long ago. And we've also been having a look at price rise as a cross-half a column. So actually we have a lot of pricing power and we think about our different segments.
And we really just assess the market conditions as we work our way through what's appropriate. Thank you, Brian . Leila, we'll take our next question, please. Our next question comes from Johnny Huynh from Evans & Partners.
Hey, I just wanted to ask on the interest in the advertising tier and binge so far, like, I know Netflix had some issues launching in Australia with too high a demand but not enough audience. So I just wanted to see your thoughts on any strategies around this as well.
Look, I think we're just doing a soft launch in relation to the ad tier down in Foxtail. It hasn't yet launched, so we haven't got any learnings from that, and we just expect a modest uptick in the current financial year as a consequence of that launching later in the fiscal year. So we'll have more learnings from that once we've got it out in the marketplace.
Thank you, Johnny. Leila, we'll take our next question, please. Our next question comes from Darren Lung from Macquarie.
Hi guys, thanks for the opportunity. I just wanted to ask quickly in the release, it indicates some emulation to a RELTOR move that, you know, as part of the transaction is to create a shelter value in Trincton RELTOR's competitive position. So appreciate that I'm not talking about the transaction.
Can you give us an idea of what strength and competitive position looks like, please? Sorry, don't be so cherished or so circumspaned. Circumspaned, but we really can't say any more about the discussion, so you'll have to stay tuned. You can presume that we are very much focused on, shareholder value, and
in a very competitive digital real estate market here and frankly how we could partner with them.
And look, I think I'd also add that it is important for us if and when we complete any sale, that it actually goes to an owner where we believe we'll continue to invest and grow that business going forward. And I think that's important for any asset that we look to sell.
Thank you, Darren. Leila, we'll take our next question, please.
At this time we have no further questions so I'll hand back to Michael Florence for closing remarks. Great, well thank you, Layla, and thank you all for participating. We look forward to talking to you soon. Have a wonderful day. We'll talk to you soon. Bye.
And we have no further questions. So I'll hand back to Michael Florin for closing remarks. Great. Well, thank you, Layla. And thank you all for participating. We look forward to talking to you soon. Have a wonderful day. We'll talk to you soon. Bye.