Bolsa Mexicana de Valores SAB de CV
BMV:BOLSAA
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Bolsa Mexicana de Valores SAB de CV
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Ladies and gentlemen, thank you for standing by, and welcome to the Bolsa Mexicana de Valores Third Quarter 2020 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]
I would now like to hand the conference to your speaker today, Ramón Güémez. Please go ahead, sir.
Thank you. Good morning, and welcome to Bolsa Mexicana de Valores Third Quarter 2020 Earnings Conference Call. Before proceeding, I'd like to provide a brief safe harbor statement.
This presentation contains forward-looking statements and information related to Bolsa that are based on the analysis and expectations of its management, as well as assumptions made and information currently available at Bolsa. Such statements reflect the current views of Bolsa related to future events and are subject to risks, uncertainties and assumptions.
Many factors could cause the current results, performance or achievements of Bolsa to be somewhat different from any of the future results, performance or achievements that may be expressed or implied by such forward-looking statements including, among others, changes in the general economic, political, governmental and business conditions both in a global scale and in the individual countries in which Bolsa does business, such as changes in monetary policies, in inflation rates, in prices, in business strategy and various other factors.
Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary considerably from those described herein as anticipated, believed, estimated, expected or targeted. Bolsa does not intend and does not assume any obligation to update these forward-looking statements.
I would also like to remind participants that today's call is being recorded and a replay of this call will be available online on October 15 at Bolsa's corporate website, www.bmv.com.mx. During this call, all figures are in Mexican pesos and compared to the third quarter of 2019, unless stated otherwise. This call is intended for the financial community only, and the floor will be open at the end to address any questions you may have.
Joining us for today's call are José- Oriol Bosch, our CEO; Catalina Clave, SVP, Clearing Houses; José Manuel Allende, SVP, Issuers & Information; Roberto Gonzalez, SVP, Central Securities Deposit; Claudio Vivian, our Chief Information Officer; Hugo Contreras, SVP, Compliance & Regulations; Gabriel Rodríguez, SIF ICAP CEO; and Alfredo Guillén, Chief Operating Officer; Jose Miguel de Dios, MexDer CEO; Rosa Crespo, HR Director; Luis René Ramón, IRO; and myself, Ramón Güémez.
I will now like to turn the call over to our CEO, Oriol Bosch.
Thank you, Ramón. Good morning, everyone, and thank you for joining for the third quarter 2020 earnings conference call. I hope that all of you and your families are safe and well.
And this quarter, we have delivered good numbers and continued our -- executing our midterm strategy. But first, I would like to share with you how Bolsa is leading by example in collaboration with our stakeholders to enhance performance on ESG issues and encourage sustainable investment.
BMV released, together with Standard & Poor's, a new and updated ESG index, which is called S&P/BMV Total Mexico Index, and we are collaborating with investors and companies to build a standard ESG reporting format. We also continue executing our BCP protocol and have taken further steps to make sure that none of our stakeholders are left behind in these times of uncertainty.
As of today, 95 -- and since March, 95% of our employees continue to work from home. And we continue to support our people. As an example, Bolsa gave over 20% of its employees up to 3-month salary advance, and we also offered flexible payment options for the SMEs. And additionally, we have enhanced toward a collaboration with issuers and clients. And through technology platforms, continue strengthening the financial awareness in Mexico.
To give you some examples, Bolsa released a podcast, which is ranked today in the top 10 financial podcast in Mexico, and has become more active in social media and continue offering finance courses online. Furthermore, we are collaborating with several issuers to promote sustainable financing and have taken a step to measure BMV carbon footprint and start reducing it. Every day, we continue building a stronger and sustainable Mexican Exchange, which is shown in our financial results.
On the next slide, on the key financial highlights. Can you change the slide? I mean I still see -- okay, maybe there is some delay. Okay. Perfect.
We had solid performance in the third quarter despite the challenging times. The revenue was MXN 962 million. That's up 3% compared to the third quarter of 2019 due to higher demand in the global market services in the SIC, settlement and custody as well as information services.
On expenses for the quarter were MXN 440 million. That's a 2% increment as a result of higher value of the assets under cost custody abroad for the SIC and personnel expenses. Regarding the operating income and EBITDA, increased 4% with the EBITDA margin of 60%, 6-0. Net income was down 6% as a result of negative comprehensive financial income.
And on the next slide, we'll see the key financial highlights for the first 9 months of the year. So the revenue was close to MXN 3 billion in the first 3 quarters. It increased 11% compared to the same month of 2020 (sic) [ 2019 ] due to trading-related businesses in the first half of the year and continued strong demand for global market services and analytics.
In the last 2 weeks, equity trading activity has been strengthening by the recent market volatility, increment in market caps and the positive performance of the Mexican market. Expenses were MXN 1.3 billion up. That's 4% also as a result of a dollar-denominated concept, mainly in technology and subcustody. Both operating income and net income increased 17% and 14%, respectively. EBITDA reached MXN 1.8 billion, up 16% and with an EBITDA margin of 61% for the first 9 months of the year.
On the next slide is the revenue by business line in this first 3 quarters of the year. The revenue was up 11%. Equity trading and clearing was 7% up. Derivatives trading and clearing 6% up. OTC trading, 18% up. Our CSD, our Central Securities Depository, was 22% up. Information services, 6% up. And capital formation was 5% down.
Regarding the operating expenses for the first 3 quarters, the operating expenses were up 4% compared to the first 3 quarters of 2019. Personnel was up MXN 22 million as a result of variable compensation in our broker in SIF ICAP and annual salary increments. Technology was up MXN 12 million, explained by new software in projects, increment of central bandwidth and purchase of data for the global market or SIC-related services.
Depreciation increased MXN 10 million due to the acquisition of hardware, mainly for the flexible DRP, as well as the amortization of projects finished in 2019. Consulting fees were up MXN 1 million, MXN 10 million for strategic consulting and legal advice in 2020, and minus MXN 9 million due to nonrecurring expenses for the sale of the OpenFinance system in the third quarter of 2019.
Subcustody was up MXN 11 million due to dollar-denominated concepts and a larger number of assets under custody abroad. This line is directly linked to the revenues in Indeval.
The next slide will go business line by business line, so starting with equity trading and clearing. Cash equities trading revenue was 8% lower than the third quarter of 2019, explained by the trading fees that were modified in November 1, 2019. The average daily traded volume for the third quarter was MXN 14.3 billion. That's up 2%.
The domestic market decreased 18% and represented 46% of the total ADTV, and the global market increased 31% and amounted to 54% of total ADTV. As for our CCV, the central counterparty, revenues increased 2% as a result of higher operating volumes.
On the next slide, operational highlights. In the third quarter, the average daily trading value stabilized around MXN 14 billion daily. As you all know, the ADTV in March is mainly explained by the uncertainty and volatility in the local and global financial markets due to the COVID-19 pandemic.
Furthermore, as I mentioned before, in the last 2 weeks, equity trading activity and market caps have been strengthening, and the market could experience volatility as a result of the U.S. elections.
On the next slide, talking about derivatives, trading and clearing. Revenue in MexDer decreased 26%; while in Asigna, it increased 11%. In TIIE swaps, there was lower volume, minus 62%, with a notional value of MXN 129 billion. Today, in Mexico, there are a few institutional clients, and we are working with pension and mutual funds to help them in the process to get authorized to trade derivatives.
In U.S. dollar futures, rollovers reported high trading levels in the third quarter 2020. That was 42% up. The average margin deposits were MXN 42.4 billion in the third quarter and MXN 40.2 billion in the months up to September. This is up 28% and 25%, respectively, compared to the previous year. And we believe we will be able to lift the overnight TIIE futures in 2020 and the electricity futures until the beginning of 2021.
On the next slide, on the OTC trading. SIF ICAP revenue was down MXN 13 million or 8%. SIF ICAP Mexico was down MXN 8 million or minus 13% and SIF ICAP Chile decreased MXN 5 million or minus 5%. This behavior in both is explained mainly by lower traded volumes of government bonds and interest rate swaps as well as the appreciation of the Chilean peso in comparison to the Mexican peso.
SIF ICAP Chile tax benefits from operations with foreign counterparties, where the company was subject to a 19% VAT tax, amounted to MXN 8 million in the quarter.
On next slide about the capital formation. The capital formation or listing and maintenance dropped MXN 10 million or 6% compared to the third quarter 2019. Listings revenue was down MXN 10 million, explained by lower number of listings and lower amount placed in the short- and long-term debt markets.
On a positive note, Fibra SITES issued Fibra for MXN 12 billion, and we also had 2 CKDs/CERPIs, Arago Gestión for MXN 677 million and Valores Basel for MXN 375 million. Maintenance were in line with the third quarter 2019 due to the early debt amortization as well as Discount Plan for government securities and warrants. As we have mentioned in the previous quarter, the Discount Plans had an annual impact of MXN 8 million.
On -- regarding the Central Securities Depository, Indeval's revenue was up 16% compared to the third quarter of 2019, and its growth is mainly explained by the services related to the global market, what we call the SIC settlement and average value of assets under custody. And the main driver of growth in Indeval has been the global market.
As you may recall, in July 2017, we implemented a new business model, which reduced around 50%, 5-0, the cost for intermediaries, and consequently foreign assets doubled within 3 years. So it was a great strategy. And the global market services include cross-border settlement, corporate actions and tax services. The average value of the assets under custody was up 4% and 26% in the local and global market, respectively.
On the next slide, regarding Information Services. Information Services was up MXN 16 million or 12% compared to the third quarter 2019. And Market Data revenue was up 30% as a result of sales, mostly in dollars of data feeds, indices and benchmarks and regularization of customer.
Valmer revenue decreased 18% due to nonrecurring revenue from the sale of licenses and implementation of OpenFinance portfolio management system in the third quarter 2019. Excluding this concept, Valmer presented a behavior similar to that observed in the third quarter of 2019. Regarding LED, LED started operations with MXN 2 million in revenue for the quarter.
On the next slide, regarding BMV's strategy. We continue delivering a strong result despite challenging environment. BMV has a well-diversified business model. All in all, a strong result in the Central Securities Depository and Information Services.
Operating income increased 4%, but net income was impacted because of a stronger peso and BMV's long dollar position as well as lower interest gains from investment in short-term government securities. Additionally, it is important to point out that were it not for the measures taken to delay the spread of COVID-19 or under normal circumstances, we estimate total expenses would have had an additional growth of MXN 6 million in the third quarter of 2020.
We are committed to continue executing our strategy to have a stronger Mexican Exchange, which consists of further development of post-trade and market data businesses will -- which I will touch on the next slide; strengthening traditional businesses by building new added value services; working closer with clients and regulators; analysis and development of BMV's technological evolution strategy, about which I will talk about later in the presentation as well.
On the next slide, the growth project in post-trade and information services. Regarding the direct custody, which will enable access for foreign financial institution to the local CSD market infrastructure, and the bond clearing house where we are implementing risk model for on-the-run M bonds, we continue working with the authorities to get authorization and doing trials with some participants.
Unfortunately, COVID-19 has delayed us against said milestones, but we expect to start operations in the first half of 2021. On a positive note, LED, L-E-D, is delivering master data files, closing prices and corporate events from the main Latin American financial markets, and registered MXN 2 million in the third quarter 2020. It is a first step into the U.S. market, and we are currently building business -- some business relationships.
As for Valrisk 2.0, we are adapting our financial risk management from a software as a service on the [ 2 ] on-premise. With this initiative, we are -- we intend to comply with regulations and work closer with buy-side clients.
On the next one, regarding the technological evolution. And now I would like to talk about BMV's journey to the cloud. We are building a road map to move from the physical server infrastructure to a hybrid model. This will allow Bolsa to have a scalable, secure and resilient environment with optimal cost and time. Additionally, as you know, we have been talking with global market infrastructure providers and evaluating their data platforms versus developing in-house.
Our platforms are fully functional, but we are planning for the future. We have been building several scenarios, but we have not reached a conclusion yet. Bolsa main goals are: keep an evergreen technology by enforcing an integrated architecture and fostering IT capabilities; second, agility to develop and provide the market with new value-added services; and third, acquire third-party solutions where there is a financial and competitive edge, the reuse before buy, buy before build strategy.
On the next one, the progress of 2020 financial guidance. We have an annual guidance on the EBITDA margin between 58% and 61%, and a net income range of MXN 1.4 billion to MXN 1.6 billion. As of the end of the third quarter, as you did see, we are okay with both. Actually, we are on the upper side of the range for both estimates. The 9-month and 3 quarters EBITDA margin is 61%, and the first three quarters' net income is MXN 1.2 billion.
And the last one, our summary. We continued the execution of our strategy. We have had positive results due to a strong demand for the global market and the services to support it and information services. Regarding Bolsa's technology, our focus is on the journey to the cloud and continue evaluating options for the evolution of Bolsa's platform.
On the financial results, we had strong financial results, good progress in delivering 2020 guidance and cash flow generation. And we have a well diversified and position to drive further growth, solid revenues across Bolsa businesses and multiple growth opportunities. However, it is taking us longer than we might have expected to start operations of some new projects due to the COVID-19.
And with that, I will end the presentation, and our colleagues and myself, we are open for any questions you may have. Thank you.
[Operator Instructions] And our first question will come from Ernesto Gabilondo from Bank of America.
I have 3 questions from my side. The first one is related to the suspension of the exchange last Friday. Can you elaborate on what was the problem behind the suspension?
And what can we expect about your technological platform? You have said in the past that you are exploring the possibility to go for an external technological platform or to acquire third-party solutions, and that any of them will have to be approved by the Board of Directors. So can we have an update on this technological process and if there is a time line on when to expect the final decision? So that is my first question.
My second question is on your operating trends. So we saw a slowdown in the cash equities activity during the quarter. However, how should we think for the rest of the year? Do you think that lower rates, the recent rebound in the Mexican market and [ lightly ] volatility due to the U.S. election should help to see, again, better volumes? And what other trends are you seeing for the rest of your revenues? And how should we think about your operating expenses, is there still room to maintain the cost control discipline?
And then on my last question is on competition. We saw BIVA improve the market share close to 14% last month. And I believe BIVA's volumes have been driven by block trades. So what do you think that investors are preferring to do those block trades through BIVA instead of Bolsa? And I remember that you were comfortable with BIVA having 10% of the market share, however, if it goes above that, what would be the strategy to contain the market share of the competition?
Ernesto, thank you very much. Regarding the trading call we had on Friday, it was caused by a hardware issue in one of our provider's facility. It has nothing to do with the cyber attack. We were not hacked. It was a human mistake regarding hardware in one of our provider's facilities. That's why I can say it was not a malfunction of our software.
It is however our responsibility. Wherever it happens or whatever the cost, it is our responsibility. And we are taking steps to make sure that events like this do not happen again.
Regarding the -- our technological upgrade or our program, I'll let our new CIO (sic) [ CTO ], Claudio Vivian, elaborate a little more on that. If you could, Claudio?
Yes. Thank you, Ramón, and good morning, everyone. Yes, we are at the final stage of developing the long-term technology platform, and the intention regarding the time line of the authorization or the proposal to the Board in order to get the authorization of the plant, we are right in the last mile. This is going to happen towards the end of this year. And there, then we will have the time line execution.
We are looking for a gradual evolutionary implementation of whatever we decide. We are evaluating both, upgrading our platforms and comparing with the benefits of an external platform. So we will take the right decision into an integrated architectural solution in order to support the growth of the business and the delivery of services and products to the [ network ].
Thank you, Claudio. On the other question on -- let me take the -- what to expect on expenses first. Ernesto, I think our expenses for the year are relatively stable. For the end of the year, we are not expecting any major surprises or events, so it should be within the range that we've seen since Q4 of last year. Whatever volatility may come in the markets should not have a large impact on our expenses, only if it were related to a very sharp movement in the FX, which some expenses are related to. But we are expecting it in the same range.
On the other 2 questions, what to expect on market volatility and on trading trends going forward and competition. Oriol, I think you could help us with that answer.
Okay, Ramón. And thank you, Ernesto, for your question. And regarding competition, every time I talk about BIVA, I get in trouble. So I will just give you some hard data and tell you that we are doing our best and hoping to compete in a [ further ] field by our service quality.
But regarding the numbers and -- one second, let me give you as of year-to-date, and for you and for the rest of the people to have the same numbers. Year-to-date, our market share in the local market side is even 97% compared to 3% in BIVA.
On the SIC, we have 80% -- those numbers as of the end of the third quarter, 80% Bolsa, 20% BIVA. And the consolidated market, which, by the way, we did see that the number as of the third quarter, the SIC is for the first time higher than the local market, 54% on the SIC and the remaining balance, 46% on the local market. But the consolidated is 87% Bolsa and 13% BIVA.
But if we go back and we look at the numbers as of -- since July 2018 when BIVA started operations, so from July 2018 to the end of September 2020, the local market in Bolsa is 97%, BIVA is 3%, so almost the same. And the SIC moved from 80-20 to 83-17. So yes, they have been gaining a bit this year. And the consolidated is 90%-10%, and now it's 87-13.
So yes, so it is likely lower our market share or higher BIVA's market share, but I think that it's not still too high. So -- and it is in line with what even external analysts and ourself were expecting. So we'll see what happens. But as mentioned, we'll continue to do our best by our service quality and competing the best we can. Thank you, Ernesto.
Our next question will come from the line of Claudia Benavente from Santander.
I just have one question. I was wondering if you could provide more color on the pension reform. What would be -- if you have any forecast of what would be the impact from an expense -- on the expense side, if you will be paying more contributions for your employees. But I do see that you will have an important compensation, because AUMs are expected to increase importantly. So that's it. I just wanted to know if you can provide more color there.
Claudia, sorry, I couldn't understand the beginning of the question.
No, only if you could provide some color on the expected impact of the pension reform. It is highly likely that it gets approved, so I was wondering if you can give some, I don't know, forecast of what would be the impact from a net income perspective, as you will be paying more contributions for your employees. But I do see an important compensation from the custody side. So I don't know if you have any guidance there.
José Manuel, I don't know if you have something to comment on the pension reform. On the expense side, we do not think it should be a significant issue, Claudia. On the -- sorry, go ahead.
So from what I read is that it is expected that the companies and employers will be paying, let's say, 1% increasing each year for the next maybe 6 years. So as a company, my guess is that it will be costing 1% additional of the payroll as a company.
From the other side, if this amount of money, it comes into the pension funds, the amount of AUM will be getting bigger, and I think those resources will have to be invested in the market. So I think we will maybe benefit because of higher trading and volumes on the exchange and on the different products. But we haven't get into detail on how much to expect -- how much will trading will be increasing. It's still the project.
Our next question will come from the line of Carlos Gomez from HSBC.
Two questions for me. The first one refers to the foreign market. As you said, for the first time, we are seeing that foreign shares being larger than the local shares. How do you see this going forward? Is this a permanent phenomenon? And second, can you remind us the economics of local share trading versus foreign share trading? What are the margins like in each segment?
And second, can you give us a bit of direction as to what we should expect in terms of ForEx? I mean we saw a decline in comprehensive financial income this quarter because of the peso appreciation. I know there are several elements there, but do you have any rule of thumb of what the impact would be of every, let's say, 5% appreciation or depreciation of the peso?
Carlos, regarding your second question, we currently have a long position, we've reduced our long position. Our U.S. dollar long position, it's about -- currently about $15 million, that's 1-5. So any movement we have on the exchange rate will affect us in that -- will affect that long position. We will maintain a long but position not much longer than that.
Regarding your first question, as far as the economics of local versus global markets, the economics are exactly the same. Our trading effort is the same as the trading fee. We only have one scheduled regardless of whether it's local or not, so it's the same.
Regarding the last one on the trend, Oriol, what do you think we could expect? Or I guess would this be a permanent trend going forward that the global share's larger than the -- or more trading in global market?
Thank, you, Carlos. Okay. Yes, I did mention the traded volume is split today between 54% and 46%, 54% on the global market, 46% on the local market. And this is not what we want because we have seen the increase in the global market and a very stable local market in terms of securities. And let me give you some numbers, some estimate.
But today, we have around 2,500 values listed in the global market. 5 years ago, we had around 1,000. So -- and the breakdown of this 2,500 is 50-50 between ETFs and stocks. And we continue to list new ETFs and foreign stocks every day. And so I think that this is -- has been very successful. And I -- as also was mentioned, we have been reducing the cost for the Casas de Bolsa for the broker-dealers by 50% since 2017, and this has been part of the success of the global market.
In terms of traded volume, the average for the first 9 months in the local market is MXN 7.8 billion. 5 years ago, it was MXN 10 billion -- actually, MXN 10.3 billion in 2016. And I think that this is also explained because the number of listed securities in the global market has not been growing. It was growing, and in 2017 we still had 4 IPOs. We had Cuervo, Traxión, Bajío and Grupo Mexico Transportes, I think that was the last one.
And by this time, the Mexican Bolsa in 2017, the Mexican Bolsa Index, the IPC, was close to 52,000 points. Today, the Bolsa is at around 38,000. So in terms of pesos, it is like 30% lower and a bit more in terms of dollars. So we do not have the best environment for new IPOs in Mexico, unfortunately. I think that the valuations are pretty low and this is not helping.
So currently, I think that the number of IPOs with these valuations is not going to be as we were seeing before and as of 2017 that -- by the way, if we take 2008 to 2017, the number of IPOs on those years on average was around 4 IPOs per year, which was still low. But today, it looks very high. And hopefully, with better valuations, will continue.
We're working on that. We have been working with some companies that are interested but not at this level. So -- but on the contrary, on the global market, I think that it's very good that today all the Mexicans -- and we have seen an outperformance on the -- on some places, in particular in the U.S. And we have seen the NASDAQ having a great rally this year, technological companies, et cetera. And it is good that all Mexicans, all millennials that are interested in investing in technological companies, they can do it through the Mexican Exchange.
And some broker-dealers have been doing a great effort in opening new accounts with Mexican investors. The number has been increasing with low size of new accounts, but we are starting to see good -- at least more participants from Mexico in some technological companies that are listed not just in the U.S., mainly in the U.S., but in U.S., in Europe, in Asia as well and in other places. So -- and that's it.
That's very clear. If I can follow up on the economics again. It is true that trading is the same and the value is the same. What about the custody and post-trading revenues? Do the foreign securities generate the same as the local securities?
Well, the difference is that we have to pay a subcustody fee for the global securities.
[ Globally ]?
Yes. Well, in this case, we certainly pay the subcustody fees, but we -- the amount for the fee that we charge for the subcustody of foreign securities is substantially larger than what we charge for local security.
[Operator Instructions] Our next question will come from the line of Eduardo Miller from Miranda Global.
I would like to know how do you foresee or anticipate LIBOR transition for Mexican instruments.
Sorry, could you repeat the question, please, Eduardo.
Yes, there was some noise. I couldn't hear well. Can you repeat it, Eduardo?
Yes, sure thing. I would like to know how do you foresee or anticipate the LIBOR transition for Mexican instruments.
Which transition, sorry?
LIBOR.
Oriol?
[Foreign Language]
Yes.
I think it's SOFR. [ I think ] SOFR.
I'm not understanding which transition you refer to. Catalina?
Well, I do -- sorry, I just want to understand, if you are talking about the transition of SOFR and LIBOR?
Yes, that's correct.
[ And it's not with transactions ]?
Yes. Correct.
Okay. I don't know if [indiscernible] is on the line. But I -- maybe I can answer that.
I'm on the line.
[ Maybe, Oriol, I can take that ]. I think that the -- as far as we understand, the transition will start first with a -- first with [ global ] currencies. And the next week, CME is going to change the LIBOR on the -- with other expense -- I mean currencies, not for Mexican peso yet. The Mexican peso will -- we don't have a base yet. But what we are planning to do is we are going to do the [ so-called ] transition. At the same time as CME, [ NPH will do transition to SOFR on the top ] [indiscernible].
We don't see an impact on the other side. On the other hand, we have -- as Oriol mentioned, we are planning to leave on the [indiscernible] side a future for [indiscernible] that is kind of a [ SOFR ] substitution for our [ SIF ]. Instead of [ product ] 28 days [ SIF ], we have [ SIF ] for 1 day. And with that future, we expect to gather or, I don't know, to have a more market share with a [ SIF ] product. I don't know if I answered your question or if you mean that -- do you expect that to [indiscernible] or if you are saying [indiscernible]?
Yes, you answered it.
[Operator Instructions] And I'm not showing any further questions on my end.
Okay. Well, thank you very much for participating. Oriol, any last words?
No. Thanks, Ramón. Basically, it's the same. Thanks to all of you for participating once again in this -- in our quarter conference call. So thanks a lot for participating and for all your questions. And if there's something else we can help you with, you have our contact information. So please feel free to give us a call. Thank you very much.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.