Q1 2023 World Wrestling Entertainment Inc Earnings Call
Speaker 1: Can.
Speaker 2: Please stand by. We're about to begin.
Speaker 2: Hello and welcome to WWE's first quarter earnings conference call. If you're listening through a phone line, you may ask a question verbally by pressing star then one on your touch tone phone. If you wish to be removed from the queue, please press star 2. I will now turn the call over to Seth Zadlow, Senior Vice President and head of investor relations. Please go ahead Seth.
Speaker 2: Hello and welcome to WWE's first quarter earnings conference call. If you're listening through a phone line, you may ask a question verbally by pressing star then one on your touch tone phone. If you wish to be removed from the queue, please press star two. I will now turn the call over to Seth Zavlow, Senior Vice President and Head of Investor Relations. Please go ahead, Seth. Thank you and good morning everyone.
Speaker 3: Welcome to WWE's first quarter, 2023 Earnings Conference call. Joining us on today's call are Nick Khan, WWE's Chief Executive Officer, Hall of Act, our Chief Content Officer, and Frank Ridic, our President and Chief Financial Officer. Following our prepared remarks, we'll open the call for questions. We issued our Earnings release earlier this morning and have posted the release and other supporting material to our website. Today's discussion will include forward-looking statements.
Speaker 3: These statements reflect our current views are based on various assumptions and are therefore subject to risks and uncertainties. Please refer to our SEC filings for a discussion of the risks and uncertainties. Actual results may differ materially and undue reliance should not be placed on these statements. Additionally, we will be discussing certain non-GAAP financial measures on today's call. Reconciliation of non-GAAP to GAAP information are provided in our earnings release and other supporting materials.
Speaker 3: Lastly, today's call is being recorded and the replay will be available on our website.
Speaker 3: With that, I now like to turn the call over to Nick. Thanks, Seth. Good morning, and thank you, everyone, for joining us today. 2023 is off to a strong start. Our results in Q1 exceeded our guidance and our business is well positioned going forward.
Speaker 4: I, along with Frank, will touch on some financial and operational highlights from the quarter in more detail. But before we do, I want to take a moment to address a few other topics.
Speaker 4: As we announced in January , Vince McMahon and WWE initiated a process to review strategic alternatives with the goal of maximizing value for all shareholders. We conducted a full-sum process and the market response was astounding. After assessing all options, we announced an agreement on Monday, April 3rd.
Speaker 4: The combination of WWE and UFC creates a one-of-a-kind, highly complementary, pure-play, global sports, and entertainment business that will unlock vast revenue synergies and cost synergies. The transaction is subject to customer closing conditions, including the required regulatory approvals, but we are working intently to get that done. We expect that will happen in the second half of 2023. With the conclusion of the strategic review process, we're now heavily focused on the domestic media rights renewals for raw and Smackdown.
Speaker 4: and we are currently engaged with our and current partner with our incumbent partners, NBCU and Fox, both of whom have been terrific.
Speaker 4: With the ratings and viewership success we've been seeing for Ron Smackdown, we believe we are well positioned as we enter these conversations.
Speaker 4: Of course, we remain focused on the day-to-day operations of WWE in delivering growth.
Speaker 4: This was evidence four weeks ago at WrestleMania 39, which I mentioned earlier.
Speaker 4: WrestleMania 39 delivered the most watched and most profitable event in our company's history.
Speaker 4: Record attendance at WrestleMania with over 161,000 fans. Record gate revenue of over $21.5 million. Record domestic viewership with over 15 million hours consumed and a 31% viewership increase year over year. Record sponsorship sales with over $20 million in revenue, a year over year increase of over 100%. Record venue merchandise revenue of over $7 million, beating our previous record of $5.2 million, which we said at the year prior WrestleMania.
Speaker 4: We blew through records across our social platforms, generating over 500 million views and 11 million hours of video consumed over the two-day WrestleMania event, a 42% increase over the prior year.
Speaker 4: In February , we took our product to Canada where we held Elimination Chamber in Montreal. The event delivered a 54% year-over-year viewership increase, a 300% sponsorship sales increase, and generated more gate and merchandise revenue than any Elimination Chamber in WWE history. Strategically, we hosted this event in Canada, a key international market, and one where we will also be focused on our next media rights deal. For more information, visit www.wwe.com
Speaker 4: These metrics are a clear sign of our popularity in the region. As our premium live events see viewership increases, our flagship weekly TV properties are also seeing growth, bucking the trend across the rest of the landscape.
Speaker 4: led by higher attendance and smarter ticket pricing. WWU is consistently generating the highest ticket grosses in the history of many markets as we continue to tour weekly. Everywhere from Los Angeles and Chicago to Toledo and Little Rock, we are not seeing any signs of a slowdown. This upcoming Saturday, August 5th, is summer slam at Ford Field in Detroit, another stadium event. Tickets went on sale last month, and we saw a record first day sales for the event. More tickets were sold at on sale for this upcoming summer slam than any other domestic WWE show in our company's history outside of the world.
Speaker 4: sales. This new partnership with Fanatics should supercharge those sales.
Speaker 4: Looking ahead, becoming months are an exciting moment for our company as we embark on our biggest run of international shows in WWE history.
Speaker 4: This coming Saturday, backlash will emanate from San Juan, Puerto Rico, where Bad Bunny will compete in-ring against Damian Priest in what will be a completely sold-out arena. We also received a seven-figure subsidy for this event.
Speaker 4: We are in a dialogue with a number of different local governments, tours and groups, and event organizations about the economic impact of WWE when our events come to town. Look for more updates on this in the future as these conversations progress.
Speaker 4: On May 27th, the Saturday of Memorial Day weekend, we returned to the Jeddah Superdome for one of our biannual shows in the region, Night of Champions. We close out our international run on Saturday, July 1st, which is the Saturday of the July 4th weekend, with Money in the Bank at the O2 Arena in London, our first premium live event in London in over two decades.
Speaker 4: We will also have Friday night Smackdown the night before also at the O2 arena Both money in the bank and Smackdown will air live at 8 p.m. local UK prime time as our United Kingdom media rights Conversations continue we expect that both of these events in London will be sold out shows As with all of our events we expect all of the premium live events to deliver year over year growth
Speaker 4: in the UFC. Until then we are focused on closing that deal while continuing to execute on our strategy and grow our business. It's an amazing time for WWE and we remain extremely excited about our long-term future. With that I'll now turn the call over to Frank. Thank you Nick. Before I review our financial performance and business outlook.
Speaker 4: I want to briefly discuss the transaction we announced last month with Endeavor.
Speaker 3: As Nick highlighted, we're very excited about the agreement we've reached with Endeavor to combine the WWE and UFC businesses.
Speaker 3: The financial profile of the company is quite attractive with strong revenue growth, adjusted to lived margins and free cash flow characteristics. We believe there will be significant opportunities to increase the organic growth profile of the combined entity through various revenue and cost synergies. The transaction values the WWE business at an estimated $9.3 billion. Transaction represents a contribution price of WWE of approximately $106 per share. According to the transaction agreement, at closing, WWE will distribute its excess cash to the new public company. Following the closing, the new public company may determine its dividends, such excess cash to its shareholders.
Speaker 3: We're working as quickly as we can to close the transaction, which is expected to occur in the second half of 2023.
Speaker 3: Our performance in the quarter places is firmly on track to meet our full year outlook. I'll touch on the outlook for the second quarter and full year and more detail later in my remarks. On slide six of our presentation, we detailed our performance business performance in the quarter, which shows revenue, operating income, and adjust the width of contribution by segment as compared to the prior quarter. The results in the quarter reflected the shift in the timing of the staging of a large scale international event, which occurred in the first quarter of 2022, but is expected to occur second quarter of 2023. Looking at our media segment on slide seven, adjust the width of the decrease three.
Speaker 3: primarily related to the decrease in the production costs related to the timing of our premium live events. Now let's turn to our live event business as shown on slide 8 of our presentation. Adjusted OIBA from our live events improved $4.2 million based on a $9.5 million increase in revenue. Res<|te|> by gas assistance improvements and refundsó policy happenings increase by 7. Simone
Speaker 3: During the first quarter we experienced strong demand for our live events. We held 50 events in North America with average attendance of 37 percent as compared to the prior year period.
Speaker 3: In our consumer product segment is shown on slide 9 adjusted to web that was 22 million on revenue of 39 million.
Speaker 3: Licensing revenue reflected higher collectibles revenue and relatively flat video gaming revenue. During the quarter we recorded six million in revenue as a result of the early termination of an agreement for our licensed collectibles. As previously discussed the change in e-commerce revenue reflected the transition of our digital retail platform to fanatics. Now let's turn to WWE's capital structures shown on slide 10 of the presentation. In the first quarter we used 21 million in free cash flow as compared to generating 70 million in the prior year period. The decrease was primarily due to the timing of working capital most notably the timing of collections associated with our large-scale international events.
Speaker 5: on the credit.
Speaker 3: Looking ahead, we're not changing our outlook for the full year adjusted to web debt this time.
Speaker 3: We continue to target a range of $395 to $410 million, which would be an all-time record for the company. As we discussed on our last earnings call, we're targeting record revenue in 2023 and relatively flat operating expenses.
Speaker 3: which represents an increase of approximately 37 to 48% from the prior year quarter.
Speaker 3: The estimate reflects revenue growth related to the favorable impact of the shift to the timing of the large scale international event and the contractual escalation of domestic media rights fees for our flagship programs and premium events.
Speaker 3: We also anticipate that second quarter results will reflect an increase in operating expenses. In conclusion, WWE generated strong first quarter results that reflected continued robust demand for our events and increased consumption of programming across platforms.
Speaker 3: We continue to believe our long-term outlook is supported by the rising value of live sports content and increasing demand for media companies that deliver reach and fan engagement both domestically and around the globe. Looking ahead, we remain focused on our day-to-day operations while working to close the transaction with endeavor as quickly as possible.
Speaker 3: We believe that WWE remains well positioned to take advantage of significant growth opportunities across all of our lines of business. We look forward to updating you on the progress of these initiatives in the coming quarters. That concludes our remarks and I'll now turn it back to Seth.
Speaker 6: Thanks, Frank. Operator, we're ready for Q&A. Please open the line.
Speaker 2: Thank you. If you'd like to ask a question, please sign up by pressing star 1 on your telephone keypad. If you are using this speaker phone, please make sure your mute function is turned off to a liar signal tree chart equipment. Again, press star 1 to ask a question. We'll pass it just a moment to allow everyone an opportunity to signal for questions. We'll go first to Curry Baker with Guggenheim.
Speaker 7: Hey, thanks for the question. I've got one for Frank and one for Nick, maybe the first one for Frank. In the commentary around the second quarter guidance you mentioned an increase in operating costs related to content creation. Can you maybe provide a little more color on what these costs are, the magnitude in the second quarter, and how to think about...
Speaker 3: any incremental content investment in the back half of the year? So primarily the increase in production costs primarily related to the staging of the events that move from the first quarter to the second. So it's really variable costs. There's some other cost increase that we've incurred related to inflationary impact on staging of shows.
Speaker 3: the cost of doing that. We think we've adequately built those into our guidance. Looking ahead to the rest of the year, we don't see substantial changes in the trends of creating the content. Should we expect margins to be in line with what we've guided to?
Speaker 7: This cycle, if you're able to provide any incremental color, that would be great. From a timing perspective, is your base case expectation or rules are completed this year?
Speaker 4: A couple things, we've had productive conversations with both Fox and NBCU. I believe that they're both seeing the product, the growth of the product, the impact of the product in the right way. So we're optimistic about all of that. In terms of the timing on getting a deal done, one thing I've experienced is that during the process of these things,
Speaker 4: You can control a lot of it. You can never control when it closes or when you get to an agreement. So can estimate that yet, but we remain bullish on raw and smackdown.
Speaker 2: Thanks for the questions guys. We'll go next to Brandon Ross with Flight Shed Partners.
Speaker 4: Thanks, guys. Good morning. Maybe I'll start off with a couple of follow-up questions to Curry's last question there. During the exclusive period, first of all, are you able to get IOIs from outside parties during that time? Is there any way to know?
Speaker 4: what your negotiating position is as you embark on these negotiations with Fox and NBCU, then I guess both of those parties have other sports rights that they're thinking about negotiating on their CNBA and NASCAR as you understand it how intertwined are those negotiates.
Speaker 4: What happens with the peacock situation, as I think everyone knows, that's not up for a couple of years in terms of other sports rights that are up and around the same period of time. We're certainly aware of them. We have our own analysis of what the priority is to each and every buyer out there, including buyers above and beyond Fox and NBCU.
Speaker 4: In our opinion, we're high on a really, really high on a lot of folks' lists. In terms of getting other offers or any intention of an offer, no. Exclusive means exclusive. We want to keep it clean and we want to show all the respect that Fox and NBCU have earned to them. So, let's see how the next period of time shakes out. And then just looking ahead from the domestic deals to international.
Speaker 4: It's always seen like India was the biggest possible opportunity for you guys outside the U.S. As you analyze the right skills, you know, happening maybe simultaneously or just after the domestic ones, what do you see as the biggest international opportunity?
Speaker 4: there. Those have been unpaused. Sony, India, as you know, is going through a merger with Z. They're waiting on regulatory approval for that. That deal is not up until later in 2024 if I'm remembering correctly off the top of my head. So what our plan is is hyper-focused on the US media rights, then shift to India post approval of the Z Sony.
Speaker 4: Look, even on the cricket rights that were up three to six months ago, you saw how that one ended up. You saw the increases. You see that the reliance via COM.
Speaker 4: James Murdoch, you know, group is doing it for free, there, which we thought was a smart idea. And we'll see how that all shakes out. But yeah, we're paying quite close attention to all things going on in India. Oh, that was a total of, I think, 17 questions from you. So, sorry. No, no. No more. No more. No more. No, I got to save some.
Speaker 8: prepared for life inside of a larger company. I mean, this has been, I wouldn't say a family-run company, but certainly a specific structure for decades. It's a pretty big change to how the business is gonna be run. I'd love your thoughts on sort of how you think that, how the business is prepared for that, and how your confidence level on sort of management transition, given the importance of a lot of the, particularly on the creative side, keeping the business fresh and sustaining the kind of ratings trends that you guys highlighted in this.
Speaker 4: you know, emphatically to you on the creative, that there's no one at Endeavor or the UFC that has any interest in trying to interfere with that in any way whatsoever. I think Dana White would also represent to you that never or almost never, I don't know the specifics, but never would be my guess.
Speaker 4: has the endeavor folks told him, no, you should do this match or you should do it this way. That's not what they do. That's not what they say they do. And that's not what they're going to do. All of the other things that we talked about in terms of revenue and continuing to build a business internationally and domestically, we think they're experts at. And we're looking forward to getting into all of that and more.
Speaker 4: once the deal is approved. That's helpful, Nick. And maybe just one more. Oh, go ahead, sir. So this is Paul. And I can just reiterate that I think that the excitement level here is really high. You know, creatively, we look forward to continuing to do what we do and the momentum that it has.
And on top of that, I mean, speak for myself. I'm incredibly excited about what it ever brings to the table and how we can utilize them to expand our efforts and really hyper focus on them internationally and growing what we do across the globe. I think they'll be incredibly helpful there.
That's great, Paul. Thank you. And I just want to ask you guys about the fanatics deal. I think Nick, you made the comment. It should supercharge sales around your consumer products. Just talk a little bit more about what they're bringing. Obviously you had to probably give up some economics, but clearly the business is surging right now.
based on the results this morning. So just tell us a little bit more about how that deal is going to help in your ambitions in CP over time.
Hey, bed, it's Frank Ridic. So, with respect to what it brings to the table, the supercharges of growth. Obviously, they're sourcing in their ability to create products with us and execute given their scale as they've done in our e-commerce business.
We believe they'll contribute significantly to the venue business. With respect to the economics, we think it will be very positive for us. The structure of the deal is similar to the e-commerce deal in that it's a minimum guarantee which was negotiated and very favorable for us.
and eventually they'll be upside in the deal if they continue to outperform as we grow the business. So we're very bullish. It also improves the contractual nature of our business. It's now a contract and the real business for us. So we're very bullish on what it's going to bring to the table. So we're going to be very bullish on what it's going to bring to the table.
they'll be upside in the deal if they continue to outperform as we grow the business. So we're very bullish. It also improves the contractual nature of our business. It's now a contract and de-risked the business for us. So we're very bullish on what it's going to bring to the table. Thanks everybody.
Thank you. Well, the next two, Stephen, K-Hill with Wells Fargo. Thanks. Frank, I was wondering if you could unpack WWE's corporate expense a little bit. I think that some looking at the dealer optimistic there could be some upside to the cost synergies, and I won't ask you to opine on that, but...
I was wondering if you could just maybe take WWE's $130 million in corporate overhead and just help us think about what the major buckets are in there between things like staff, offices, public filing costs, sort of some of those things. Then I have a quick follow up. Yeah. I think this is, you know, the corporate expense. Okay. Awesome.
WWE's 130 million in corporate overhead and just help us think about what the major buckets are in there between things like staff, offices, public filing costs, sort of some of those things. And I have a quick follow up. Yeah, so the corporate expense is the unallocated.
overhead, we have other expenses that we consider corporate that are allocated to the business segments obviously. But it's primarily the cost of the finance, the technology, the data analytics, marketing and international groups as well as you know typical corporate, the executive office. So that's the primary costs that are in the corporate buckets.
If you look at it, the main expense we have is, that shows up in corporate is people, and the cost, the compensation cost for people. The cost of running the public company, are not the biggest part of that.
expense bucket there are costs like do you know insurance and the cost of the board and the cost of doing SEC filings and things like that but where there is opportunity and with respect to the potential for cost synergies you know we've independently not with Endeavor but ourselves looked at the
our costs in the buckets and where there might be opportunities and we were very comfortable with the $5,200 million range that's been articulated and are starting to think about how to organize to go get those costs once the deal closes.
Thanks. And then Paul and Nick, I think the ratings performance this quarter is the best we've seen, you know, going back, at least in my bottle, about as far as I can find. And Paul, I know you've done a lot in terms of investing in the content, but can you just help us think through exactly what some of the changes you've made are, you know, what you've done to kind of deliberately drive the viewership higher?
that was different from how it was being done before. Thank you.
Thank you, this is Paul. Thanks for the question. So yeah, we're extremely excited about the performance as Nick mentioned, most successful WrestleMania in history, rumble highest viewership in history. The Raw and SmackDown ratings up across the board. Number one show on cable on the night and on. The Raw and SmackDown.
broadcast on the night. So incredibly exciting. I think that really comes down to us just having assembled the right team. You know, across the board we have world-class superstars and that continues to grow every day through our developmental systems, through our NIL, through international recruiting.
nothing like it in the world. The ability for anybody that saw WrestleMania or what we do on a regular basis, there's nothing in the world out there, my opinion, like what we do and the product that they put out and the look and the feel of it and everything else. It engages our fans like nothing else in the world. So as far as what we're focused on, we're focused on character development. You know what I think you see that across storylines.
where our fans are super engaged in the talent. Let's take Sami Zayn and Bloodline over the last, you know, couple of years really, but especially in the last six, eight months where that story and the character development has reached a whole new level.
I think it's got our fans invested and excited in the content like they haven't been in a long time. And for us extending the planning of the event horizon, so looking out year over year, where we want to be next year, and then backtracking from there. So that we're always ahead of the curve and always thinking ahead and allows us to have better planning.
And then it's just trying to do things and getting outside of a box of what we do and seeing what works and what doesn't. I don't consider something not working a failure. I consider it a learning. So really, really excited about the future and where we can take all of this.
And then it's just trying new things and getting outside of a box of what we do and seeing what works and what doesn't. I don't consider something not working a failure. I consider it a learning. So really, really excited about the future and where we can take all of this. Thank you.
Yes, good morning. Thanks for the question. First question, I guess to Nick, how long does the exclusive window for USA and Fox go for?
about a month each.
Okay, great. And secondly, can you talk a little bit about the advertising and sponsorships business that you're seeing? Obviously, really good growth for WrestleMania, but in terms just more broadly speaking, can you talk maybe about, are people looking to do just event by event? Are you looking for sort
for.
A couple of things that thanks Eric. First of all, we think we have the right leadership in place on the sales and sponsorship side. That matters a lot. The simple shift has been.
Let the deals be more robust and let's sign them into longer term deals. So rather than a series of one-offs, let's get out of that business and go into longer-term partnerships. We believe that is all been effective as is reflective. In the numbers, in terms of the UFC sponsors, we're not doing any gun jumping. We're waiting until this deal is closed closed.
And once that happens, we think it's going to ignite our sales and sponsorship business even further. Thank you. We'll go next to Peter Cepino with Wolf Research..
Good morning, thanks. Following up on the discussion of ratings, once you have higher revenue from renewed TV rights, I wondered what are you most excited about investing in? And related to that, I wondered if you would update us on your interest in potential acquisitions outside of the United States.
Europe , Latin America, Asia? Yeah, this is Nick. Thanks, Peter. Couple things. In terms of future acquisitions, the focus right now is...
you know, sort of threefold continuing to build the existing business at hand through the product and otherwise Closing the deal with Endeavor and our US media rights. So in terms of future acquisitions Those aren't conversations that we're having at this moment But once things are settled in we'll see what everyone wants to do and we're excited about that as well
look, we'll see from your mouth to God's ears on the, you know, new potential deals. Once the money comes in, we obviously want to be judicious with it. So it's always about growing the business and investing in the business in the right way while being financially responsible and making sure that our shareholders are taking care of. So there's nothing specifically I could articulate as to, well, if we get...
the increases that we think we're going to get, we're going to spend it on X. We don't want to jump the gun on that either. We're optimistic about it all and let's see how it shakes out. Thank you. Thank you.
We'll go next to David Karnofsky with JP Morgan. Alright, thank you. Nick, any update you can provide on the WWE Network internationally, including the UK, are you still engaged in a process there to sell or license out that content or will that be more tied up with the core content rights sales for that market?
We're having conversations about both the core content rights and WWE Network now with the buyers in the UK. Part of the reason for the Money in the Bank event July 1 at the O2 Arena in London is so the buyers can see our product live, the ones who haven't seen it yet. It's a heck of a lot easier for all of us once people have.
for them to understand exactly what sports entertainment is, compared to us simply articulating to them what we believe it is. So the Los Angeles, SoFi, WrestleMania going into the US media rights negotiation was intentional, and obviously the London UK show is as well. But we are open to business in terms of the network, and of course the core content rights.
And then just on live events, strong quarter both for pricing and attendance. Obviously, the product doing well helps, but wanted to see if you could speak to some of the specific actions you've taken on pricing or marketing that are kind of helping drive this. So meaning on support, not your own tasks, just your thing.
You looked at WrestleMania, which we talked about, you know, record ticket revenue. Our top ticket, our premium ticket was 2X from the WrestleMania the year prior. Yet the Get in the Building lowest price ticket was, I believe, exactly the same at $25.
So for us, it's making sure that we never exclude our fans. We're a family friendly product and we want to make sure that everyone from different socioeconomic
Socioeconomic paths can attend our events, especially our biggest events. At the same time, for example, the good folks like you on this call, if you're willing to spend on an event, we're willing to take all that you're willing to spend. So we think we've been smarter in pricing. We think even in terms of geographic locations.
It's making sure that we're not in market with other big events at the same period of time unless those events can be supplemental to our events. So it's just a lot of time and energy put in by a lot of good folks here to make sure that we're routing it a specific way that's cost-efficient and profit-efficient also. Thank you. Thank you.
We'll go next to Alan Gold with Loop Capital. Thanks for taking the questions. Two, please. First, Nick, the writer's strike. I'm assuming the writers at WWE are not part of the guild. Does this maybe impact your other programming, the type you have on A&E?
And secondly, your comments about government subsidies in Puerto Rico, is that something new? It sounds quite interesting. Thanks. Thank you. In terms of the guild, no, we're not, our writers are not members of the guild, so there's no effect on us whatsoever. Of course, we're supportive of the writers who are members of the guild in their efforts, and we're hopeful that a deal can be reached between them and the other side in short order.
In terms of Puerto Rico and the subsidies, yes. I think we kicked it off with our show last Labor Day weekend in obviously Wales where there was what we believe to be a significant government subsidy for that event. We hit all the markers on it and we've now started to replicate that both domestically and continue to do so internationally.
So Puerto Rico, we're having conversations with a number of different cities in the United States and abroad in terms of what we can do. And just one specific thing back to the Writers Guild question, no impact on the A&E product either.
Thank you, Nick. Thank you. Operator, why don't we take one last question, please?
Thank you. We'll go next to Jason Vazinet with Citi. Jason, are you there?
Oh, sorry, can you hear me? We can hear you now, but maybe if you could just start from the beginning again. We didn't hear you initially. Okay, great. As it relates to the special dividend, should investors be including the short-term investments as they think about the potential size of that dividend or just the cash as you defined it on the balance sheet? Thanks. The payment, any potential dividend will be based on cash and cash.
This does conclude today's conference. Thank you for your participation.
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