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Good day, ladies and gentlemen, and welcome to the MFE-MediaForEurope 2022 First Quarter Results Web Phone Conference Call. For information, today's call is being recorded.
At this time, I will turn the call over to your host today, Ms. Sara Bersan. Please go ahead, ma'am.
Good morning, ladies and gentlemen, and welcome to the first quarter results of MediaForEurope. Let me introduce immediately the speakers of today. Today's presentation will be hosted by our group CFO, Marco Giordani; and by Matteo Cardani, Managing Director of Publitalia.
Now let me hand over immediately to Matteo for the advertising and audience outlook. Matteo, please go ahead.
Thank you, Sara. Good morning, everybody, and thank you for your attendance. Today, we comment Q1 '22 results with a quick outlook at -- of ongoing indicators for H1.
As a matter of introduction, I would like to share with you a few key elements against the economic and political background we all know to better understand the advertising dynamics. As you can see from Chart #3, despite the macro uncertainty, that has not been the sharp fall in economic indicators we saw 2 years ago with the pandemic outbreak. We can appreciate this pattern when looking at confidence index monthly evolution that is still positive during the initial month of '22. Of course, declining after were [indiscernible] in March, but still in the positive field, both consumers and business.
This evolution of confidence index is also reflected next chart, #4, in actual dynamics of goods and services consumption. That is positive for the whole 2021 and still positive in the initial months of 2022, with a significant different trend between services, plus 30%; and goods, plus 2.7%. Remarkably all indicators for April are still positive. That means that from an advertising perspective, this resilience is visible also on the advertising spending behavior of our clients. Despite the 3, which is scenario, the pandemic, the war and inflation, at this stage, we have not registered any postponement or cancellation of campaigns. Advertising budgets are fully committed in line with our expectations beginning of the year.
With regard to gross domestic product dynamics after a growth '21 above 6%, updated forecast for '22 are around plus 202.5%.
Moving forward from economic indicators to the advertising market in Chart #5, you can see that the advertising market is slowing down, but it's not falling. It's almost flat compared to Q1 '21, plus 0.3%.
And in Chart #6, you can appreciate the fact that MFE performance is plus 2% against a trend of plus 5.9% in Q1 '21. And this performance is definitely 1.7 points better than the market, turning into a further improvement in our market share, plus 20 basis points.
Last but not the least, in Chart #7, you can appreciate the fact that our track record is the seventh positive quarter in a row.
Now let's try to understand what are the main factors sustaining this positive trend. As I said at the beginning, there is a very, very rational behavior of companies and advertisers that even in the case of war outbreak, we did not react in a panic way but simply adopted their laid plans. And in the majority of cases, they confirmed their original plans. And in a few situations, they postponed part of their ad spending, but without changing the total amount.
Then we were helped by 2 main drivers. Sector dynamics, where the negative dynamics of some sectors as automotive has been more than compensated by the positive dynamics of other sectors as the telco and the long tail of minor sectors. And last but not the least, the ongoing positive momentum of our total audience. In terms of linear performance, in Q1, we had the best audience performance over the past 5 years. And on top of this, now we have a total audience data adding up a further increase on top of this positive decline trend.
Let's start with a look at volume performance. Here during the first month of 2022, the new total audience metrics has been introduced, enabling a more comprehensive view around the attention gathered by TV content, both linear and nonlinear.
If you can see in Chart #8, you see that linear TV audience performance registered another strong results, plus 4.9% versus Q1 2019. So we used the pre-pandemic year as the proper comparable basis. And on the solid ground on this linear baseline, we can now have the high-digit growth on digital screens. So connected televisions, mobile, desktop and so on. And this brings the total audience performance to a plus 6.5% growth rate.
I'd like to comment on Chart #9 because it's a new kind of chart and a new kind of matrix we can now appreciate, thanks to the total audience. On the left side of the chart, you see the additional audience we gained from digital screen from second screen. On average, the average gain is plus 1.6%. But luckily, this is unevenly distributed. There is a positive bias towards those targets that are defined as the so-called light TV viewers. So adults 15 to 34, first of all, but also a very important target for us is women, 25 to 54, adults 25 to 54.
And on the right-hand side of the chart, you see why this for us is absolutely precious and relevant for the market. Because here, you have the audience composition on linear television. Here, you have the age brackets of our commercial target, 15 to 64. And you can appreciate the fact that the second screen profile in terms of age group is absolutely complementary to the linear TV. So to some extent, rejuvenating the average profile of our total audience.
Then and I come to the conclusion. We offer you a deeper look at sector dynamics because we do believe that this will be crucial for the remaining part of the year. And I have first chart -- the first chart is #10. Here, you see the retail sales trend by sector. So these are value sales. This is not our revenues, just to make it clear. But this is the trend in value sales in the market. And you can appreciate the fact that as we have seen from the macroeconomic scenario, there is a diverging trend between services and goods. The graph shows that service-based sectors look to be less impacted by energy cost inflation and raw materials shortage. It is maintaining a better performance year-on-year. On the contrary, goods-based sector ranging from food, beverage to automotive are more impacted. Luckily, the second evidence emerging from this guide is that the sector registering a positive trend account for almost 70% of our business.
And this leads to the following chart, #11, where you can see the weighted contribution to growth sector by sector. And you can see the fact that portfolio is well balanced between sectors with a negative impact on our revenues and sector with a positive contribution. So generally speaking, we all know that automotive sector is the most impacted, but you can appreciate the fact that telco and other important sectors, those restarting sectors like travel, leisure, durables, clothing are more than compensating the sector dynamics. So the total average weight result is plus 2%.
Last but not the least, and this is my last chart, #12. Here, you have another representation of our sector dynamics. Of course, we cannot control the general market trend. We can manage the MFE relative performance. As you can see, we are outstanding in almost all key sectors. And our main objective in 2022 is to outperform the market wherever the market trend will be.
And that comes to my conclusion before handing over to Marco to wrap up. So the year-on-year trend for advertising connection was up plus 2@ in Q1 '22 and remained positive over the first 4 months of the year at the end of April, supported by the excellent performance of the overall audience for the period and a strong value proposition on the different proprietary means of the group.
Despite the 3, which is scenario, the pandemic, the war and inflation, at this stage, we have not registered any postponement or cancellation of campaigns. Advertising budgets are fully committed, and we are in line with our expectations at the beginning of the year. Sectors are performing in line with Q1 trend. Automotive is expected to benefit, thanks to the public's incentive that will stimulate advertising campaigns. And in addition to that, we should also remember that in Q2 and Q3, we should benefit from the absent of sport events, Euro Cup and Olympics in '21, and so we do expect to increase our market share. Generally speaking, we are working to achieve a positive performance year-on-year in H1. And so far, we are on track.
Having said that, I thank you, and I hand over to Marco. Please, Marco.
Thank you, Matteo, and good morning to everybody also on my side. It's not a long time we have spoken. But today, I'm briefly going to comment our first quarter result and confirming our full year guidance.
Generally speaking, I can briefly summarize that the group results are in line with our expectation and budget. And the Italian performance is ahead on certain metrics, mainly regarding costs as far as what we have forecasted at the beginning of the year. We will then see line by line, but generally speaking, we are confirming the guidance that we gave some weeks ago. And the solid editorial position and the solid editorial performance that Matteo just commented are clearly, let's say, giving us a little bit of more opportunity going forward, without forgetting, let's say, the very sad performance of the soccer Italian team that [ 4 million ] set from MFE will be in any case, another opportunity comparing with what we forecasted at the beginning of the year.
In any case, we closed the first quarter with a consolidated revenue number of EUR 654 million, with a positive EBIT and also with a positive net profit. Just to remind, last year, we had accounted an extraordinary net profit in the financial line of EUR 20 million. That was the result of some, let's say, cash-in of derivative instrument on ProSieben.
Lastly, as far as Chart #14, the net financial position at the quarter end was negative for a little more than EUR 700 million, with a great improvement with respect to 12 months ago.
Stepping in, in the Italian business, Matteo has just explained everything about advertising performance. The total revenue are EUR 466 million, plus 3.6% compared to last year.
Then moving to the other revenue lines, the EUR 73 million in performance of the first quarter is a plus 16.8% compared to first quarter 2021. Clearly, in this line, there are many noncomparable numbers, but we confirm the guidance for the full year of other revenue lines for EUR 300 million, EUR 310 million. This difference will be mainly related to the performance of the theater, the movies on the theater. Clearly now, Medusa has just relaunched the new release, but clearly, we don't know and the uncertainty about how autumn will face there. So confirming the guidance for the full year, EUR 300 million, EUR 310 million.
Then we move down to costs. If you remember what we said 3 weeks ago, the budget of 2002 (sic) [ 2022 ] was composed by 2 main trends. The first one was a saving performance of almost EUR 60 million in costs that are the result of some restructuring and some changes of organization and processes more than compensated by higher nonorganic costs largely related to sports rights that was in the range of EUR 70 million. That's the reason for which we gave a guidance and that we are confirming of EUR 1.8 billion for the full year.
The impact of the sports right in the first quarter was around EUR 50 million. And that, as I said, was clearly forecasted already in our budget. Excluding these costs, the first quarter cost base is in line with the first quarter 2021. And if you compare that cost base to the 2019, so the pre-COVID, let's say, level, it's less than 10%. So it's lower 10% than the pre-COVID level. I mean we are pretty relaxed in that because we have been able to maintain the cost base under control, reducing the underlying cost base, as I said before, ahead of our budget. And so we can confirm our EUR 1.8 billion for the full year. And that number is based on the consensus assumption of an advertising revenue growth of 1%.
Clearly, we are living in an uncertain period, and so we have clearly put all our effort to maintain flexibility in the cost base going forward because we don't know what is going to happen clearly. And we can tell you that in a scenario of a weaker-than-expected net revenue trends, we would, in any case, have additional room for further cost cutting with respect to the EUR 1.8 billion I was mentioning before. And thanks to this additional efficiency, we would take a further reduction of the cost base up to 3%. So we have headroom, I believe, to face the future uncertainty, even if, as Matteo was saying, we don't see for the time being any concrete element of it.
Moving down to the P&L and going below the EBIT line. The financial charges are negative for EUR 3.4 million in the first quarter. Regarding the associate on the other hand, the line is positive for EUR 3.4 million.
In terms of guidance for the full year, we confirm what we have said. Financial income will be around EUR 10 million -- positive EUR 10 million. So this is clearly affected also by the proceeds and dividends payment that we received some weeks ago. And on the associates line, the guidance is confirmed, around EUR 15 million, 1-5.
Moving to investments, no major, let's say, news on that. The number is more or less aligned with last year performance. That's clearly a remarkable performance also because clearly Medusa has started again their business in the cinema activity. But as for the other guidance, we are confirming the total CapEx flat on the full year 2021. So 2022, in line with year 2021.
Moving to the cash, last chart on Page 18. As far as the cash flow, the company registered a strong improvement around EUR 50 million more than compared to 2021. That's again an outstanding performance that confirms our cost discipline, let's say, attention. And then the first quarter free cash flow was around EUR 142 million. Net financial position at the quarter end in Italy was almost EUR 1.030 billion, improved from the last year one by almost EUR 40 million.
As far as the full year net debt. Clearly, we have something, let's say, nonrecurring that will happen in the next month, certainly the dividend distribution, and also the effect on our financial position of the voluntary tender offer on Mediaset España minorities that would require up to EUR 258 million. In any case, also including this figure, we can confirm that our net debt-to-EBITDA ratio will remain around 1x.
That's all on our side. So Sara, we can open the Q&A session. Thank you all.
[Operator Instructions] Today's first question is coming from Fabio Pavan of Mediobanca.
Yes. The first one is related to the advertising outlook. I was wondering if you can provide some more color on April 10 and, eventually, if you have some visibility for May.
On top of this, my second question is related to your outperformance, which has been pretty strong versus the reference market in the first quarter. I was wondering if you can share some more qualitative update with us eventually on the support, which is coming from addressable TV rather than radio or digital asset.
Matteo, you can.
Yes, sir, I'm unmuting my mic. So with regard to the advertising outlook, I can restate again what I have said during my presentation. So we had this positive 3-month trend, and the trend has stayed positive also for the fourth month. And we expect to be in the positive territory at the end of H1. So we don't comment, as you know, each single month. So I don't comment May because it's still a month to be closed. But I repeat, we expect to be in a positive territory at the end of H1 because we don't see any major challenges on that side for the time being.
And with regard to the contribution, we don't comment on each single media performance because, as we shared the last call, our proposition is actually total media, total video, total audio. So this is the win proposition with clients and agencies. I simply had, let's say, one color on this. Coming back to Chart #9 with regard to audience profile, you can get from this chart that the audience profile of our, let's say, nonlinear digital audience profile is definitely younger, upscale, more affluent, and that commands a higher, let's say, premium price, higher average revenue per hour of video consumption compared to the linear business. Notwithstanding this [ spec ], the linear business is doing quite well, so keeping the baseline. So this is, let's say, the positive sum in the, let's say, the business question that it's working up to now. So I have to -- I hope to have answered. Thank you.
We'll now go to Julien Roch coming from Barclays.
My first question is coming back on advertising. When you say 4 months positive, do you mean the whole 4 months? Or is April positive as well? Because April could be negative for you to stay positive for the first 4 months. So I wanted to know whether April was up as well on negative in Italy. Then you gave us some color on Q2 saying you still will be positive for the first half in Italy, but can you give us some color on Spain, either May or Q2? So two questions on advertising.
Then coming back on Page 8, when do we get the new measurement from Nielsen that measure more than linear? So we can know what your total viewing in minutes is across all devices with a split between linear and on-demand. That's my second question.
And then the last one for Marco. Update on timing of tender start for MFE. I think the CNMV has had the prospectus for a couple of weeks now. So I was wondering whether you had a better idea whether they would approve the tender in a week or in a month. Any color on timing would be great.
Maybe I'll start from the latter. As you said, we have completed all we could. So actually, we are frankly happy on how the process has been carried out in the last 2 months. As you know, there are no specific obligation in timetable for the cinema, movie. So I mean, we don't have anything else than just perception. And we are pretty, let's say, ahead of the schedule we forecasted at the beginning. But we don't know. I mean, we think that can be sooner than later, let's say that. But I repeat, it is not in our end and see where we decide independently the timetable.
As far as Spain performance before leaving to Matteo to the other question. Clearly, we don't want to comment what is on Mediaset España. Partly, obviously, we can say that April has been pretty negative, double-digit negative for the market, for the TV market. It is what we said. So as far as April, frankly, a worse performance in the Italian market from our window, let's say, but I mean, I don't want to comment May and June because I will leave it to our colleague in Spain to do it. Matteo, you can answer the remaining parts.
Thank you, Marco. I'll try to answer the two -- three questions. I start from audience. So total audience [indiscernible], not [indiscernible]. And for the sake of clarity, we will amend our presentation because there is a little not precise data. On the services side, these are [indiscernible] data.
And on top of our linear performance that is around 3.5 million, 3.6 million on average minute rating, we have this additional contribution of 16% in terms of digital screen. But as I say, that is absolutely relevant because it is -- let's say, it contributes with 80 million additional gross contract each day. And these gross contracts have a very [ thin ] profile, the one that we show in Chart #9, a profile that is -- that clients and agencies are looking to move forward, and they are available to pay premium prices for this. And therefore, as I said before, the contribution of this part is more than proportional compared to the linear advertising.
With regard to our Q2 progression, as you know, we do not comment on each single month. We are very satisfied with April because we are absolutely confident we are doing much better than the market. And this, let's say, the positive momentum also to look to May and mostly June also because, June last year, we were comparing ourselves against the euro football championship while, this year, we don't have this, let's say, negative factor. And that is why we could say that for the time being, we expect to be in a positive territory at the end of H1.
So that's our view on the market. So the remaining part of the year, honestly, we don't have any visibility. We are waiting for forecasts from official sources. But it's quite interesting that all the analysts and operators are quite cautious, and they are not releasing any new forecast for the second part of the year. The interesting thing is that there has been a client meeting hosted by Nielsen last week, and all the participants are very, very important advertiser, declared to the audience in a public way that their plan for this year remain unchanged. So that gives evidence to our expectation that no major, let's say, changes or disruptions should be expected for present here. So that's it. I hope I have answered.
Yes. Matteo, but the line cut at the moment you are giving numbers. So you said linear, you get 3.5 million to 3.6 million minutes rating. And then you gave how much was nonlinear, but it cut at that time. How much is nonlinear?
The same that we showed last -- during the last call. So on average, we have a gross number. So 3.5 million, the average minute rating -- the linear average rating. On top of that, you could add each minute, 50,000, 60,000 average minutes rating that could represent, let's say, Italian addiction from a certain perspective. But as I said, they are a positive addiction each minute of the day that comes to these 80 million additional gross contracts each day. And that 80 million of additional gross contracts are absolutely variable because they are 60% represented by people under 44 years old. And they add additional reach to our linear reach, and that is what advertisers are looking for.
One of the key proposition in our connected TV proposal is the fact that we are able to prove clients that any single euro spent on connected TV, on digital screens is adding incremental reach to their plans. And we are also offering some planning tactics in order to do what we call the negative targeting. What I mean is that we are able to address advertising contracts to households that we know that was not covered, not reached by the linear campaign. And so the combination of technology plus the last audience profile helped us in delivering the addressable advertising proposition. And we are absolutely satisfied because it's keeping a very high digit momentum month-by-month, notwithstanding the general macroeconomic situation. So that is all I share with you today. I hope to have answered.
We have one other question now coming in from [ Mr. Harry Head ], calling in from Goldman Sachs.
Just one for me. Looking at the Q1 advertising trends by sector, obviously, automotive is the key laggard there. Just wondering if you had any color or data on a month -- year-on-year monthly improvements, whether that automotive spend is sequentially getting better from January up to April or whether it's been flat year-on-year. But any color there would be great.
Okay. I thank you for the question. Okay. Advertising -- sorry, automotive sector is definitely important for all of us. But take into account that it represents no more than 8% to -- 8% of our total advertising revenue, as you can see in Chart 12. And in Chart 12, you see that the trend year-on-year is minus 30%. But for us, the relevant thing is that the automotive, let's say, downturn has been going on for 9 months, if I remember well, since midyear '21, but we fully compensated with all other sectors. Even the plus 14% performance last year was achieved with a negative contribution of automotive sector. We are very well, let's say, rooted in all strategic segments of the economy. So standard, let's say, brick-and-mortar retail operators, but also direct to commerce and e-commerce operators.
And luckily, the incentives on electric cars, hybrid cars and low-emission cars decided by the government during the last weeks is already giving, let's say, new positive momentum to automotive advertising spend. So we do expect an improvement. I don't know, I cannot, let's say, figure out the exact percentage. But we have indicated we have demand. I mean, campaign, we are handling campaigns -- sorry, we are handling in April, May and June from the automotive sector are quite, let's say, reassuring. And of course, on top of this, we are also helped by our football proposition because having the [indiscernible] championship, the champion league final this week, the start of the championship and [indiscernible] in August will for sure help us in the recovery of the automotive sector. I hope to have answered, and thank you.
We will now go to Fabio Pavan calling from Mediobanca.
Yes, a quick follow-up from my side. Recently, we heard about ProSieben saying that it's hard to identify synergies opportunity when looking at the cross-border deals. It would be interesting to hear your comment on that.
Thank you. Thank you, Fabio. I mean, very frankly, I don't want to food controversy because clearly it is something that we frequently read on the newspaper. It's very trend topics on that side.
As far as ProSieben is concerned, we have already stated, I mean, they have a plan. They have a plan based on independency, and they have set their targets. And we are the largest shareholders, and we are happy if they deliver their plan. And I think that everything else is not really something it's today on the table. So it's completely a theoretic discussion. I repeat, they have a plan, and I believe that they should deliver.
Moving to the general topic and so not regarding ProSieben. I believe that, generally speaking, the consolidation, let's say, story has been taken by several parts and everyone is really looking at it in a different way. Clearly, the RTL way, so the in-country consolidation, it's a consolidation based on cost cutting. And that's clearly to everybody. The French example, it's a clear example.
Frankly, on our side, we don't think that the problem of the TV sector and the broadcasting sector is a cost problem. We believe that the broadcasting sector issue is mainly related to revenue. And so it is to revenue that the answer has to be given, not to cost. Because as we all know, the cost synergies are a one-off, let's say, advantage. But if you are in a mature market, your main issue is how to revamp revenue and how to build an alternative, let's say, to the digital proposition that the global Internet players are offering. So that's, let's say, our view.
But I repeat it, it's not time to talk about that, about ProSieben because ProSieben has a plan, and we will certainly look at the performance of the company in relation to the target and not certainly on our -- on other table. I don't know, Fabio, if I answered you.
Okay. We have a question coming in from Mr. Stefano Gamberini of Equita.
Just going ahead on this topic of ProSieben. Could you just help us understand why are the synergies from an aggregation with ProSieben by far larger than with Mediaset España that you already quantified.
The second question regarding the dividend. You said a dividend of EUR 0.05 in 2021. Can we consider this as a floor in the coming years, considering also that the leverage of the combined entity could be below 1x EBITDA, my estimates. And so if this could be also a commitment of the management in the long run.
The last question regarding EI Towers. Do you have an update on potential consolidation in the broadcasting towers? Some step ahead had been made by the government. If I'm not wrong, something could happen. And in this case, is there some interest for your stake in a towers from institutional investor funds or not? And what is your strategy? You always said that this is available for sales stake, but it should be interesting if something is happening also on EI towers to finance your aggregation project.
Thank you, Stefano. Let's say, regarding synergies. If you remember, in 2019, the project of integration, Mediaset Italia, Mediaset España was already on the table. And at that time, synergies between the 2 entities were set at EUR 100 million, and now clearly are lower just because, in 2 years, some activity has been carried out and some of what could have been set as synergies at that date now are already in the process to be taken and clearly cannot be counted again. So that's the reason for which you see now something that cannot be compared with the integration of a further country because, as you can imagine, the consolidation, whatever country you have, gives more value, more country you are aggregating because some of the costs are clearly cannot be -- or you can avoid to duplicate.
But as I said, I believe that the main advantage also for the integration with Spain is on opportunity rather than on cost synergies because I tried to explain before to Fabio, I mean, let's say, the revenue proposition we would like to offer for the future, mainly to digital, let's say, contracts and attention is a proposition that can be, I wouldn't say a competitive alternative, but at least an alternative to the digital proposition that the U.S. -- mainly U.S. global players are offering. And in that respect, the larger you are, it's clear to everybody, the more relevant you can be. So it's where we are trying to build the future in the revenue opportunity rather than building structure that can cut costs once and then maybe will remain in a mature revenue perspective and also attractive for our shareholders, but also for our advertising investor. So that's the main reason. So we look at revenue more than cost. Cost synergies will be there, but they are not the reason for -- the main reason for the deal.
As far as the second part of the question, yes, you're right. Clearly, full alignment of interest among shareholders is our first objective. Putting all the shareholders at the same level, meaning at the same level of our controlling shareholder, it's one of the objective of the voluntary tender offer we have launched in March. All the shareholders will be seat at the same table as Fininvest, and the remuneration to our shareholders is one of our key objectives.
Clearly, we look at the balance sheet solidity. But as you said, if we are staying around 1x EBITDA, clearly, there will be room for distributing dividends not only this year, as I already declared, but also in the future year. That's clearly all related to the top line performance. But I agree with you that in terms of balance sheet, there will be room for further distribution of dividend also in the future. Again, I repeat, it's in full alignment of interest among all the shareholders. That's a clear statement I would like to underline again.
As far as EI Towers is concerned, I mean, we have no news. I mean you know everything about [ DCPM ] approved. It's not something that will change from day 1, the possibility to do anything in terms of consolidation of the sector. There should be other, let's say, intervention by the public authority. As you know, we are minority shareholders. We are not actually active in dealing or seeing about that. So I cannot answer precisely. The only thing we can say, as far as our stake is concerned, that for the time being, it's a pretty ratable stake because we are getting, in any case, on our P&L between EUR 20 million and EUR 25 million, let's say, contribution to the profit this year. So we are not really in our way to dispose it. But we will look for the best moment to take advantage of the value of the possible space. So if any kind of deal will be proposed to us, we will value in that respect as both in terms of consolidation, but also in terms of pure sales. So that's our attitude. There are no news on that side, but it's the way we are looking at it.
The only thing maybe that I can say is that in the prospectus that will be approved, hopefully, shortly. By the [indiscernible], there will be, in any case, a new dividend policy for MFE shareholders that would clear out, I believe, a little bit more what I tried to say. I don't know if I answered all your questions, Stefano.
Yes. Just regarding if you have seen some interest on the stake or it's too early clearly because nothing is there about stake in EI Towers.
Yes. I mean the problem is that, as you can imagine, all the new investors are looking for value, that's clear, and the big value will come from consolidation. And as the regulatory framework for the time being is not so clear in that respect, we don't think it's the right moment today to sell it because the price will be discounted by the uncertainty of the regulatory framework. So contracts are pretty frequent, but after the first meeting, clearly, the uncertainty is generating a too large gap between as can be.
We are running out of time. And thank you, Matteo. Thank you, Marco. And thank you, guys, for all the questions and for your time for this conference call today. We will be available for any questions or information you would like to ask. Have a good day. Bye.