Avis Budget Group Inc (CAR) 2003 Q4 法說會逐字稿

Thank you for standing by. Welcome to the full year 2003 and Q4 results conference call. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. (OPERATOR INSTRUCTIONS). This conference is being recorded today, Monday the 22nd of March, 2004. I would now like to turn the conference over to your speaker for today, Oliver Strong, ebookers' Investor Relations Manager. Please go ahead, Mr. Strong.

Thank you and good day to everyone. Today ebookers plc reported its full year and quarter four financial results. By now you should have all received a copy of the press release issued this morning. If you have not then you can find it on the investor relations section of the ebookers web site, www.ebookers.com. On the call today are Dinesh Dhamija, Chief Executive Officer, and Nigel Addison Smith, Chief Financial Officer. As a reminder, some of the comments made during this call by management and responses to your questions may contain some forward-looking information.

These statements are subject to risks and uncertainties which may cause actual results to differ materially from those in such forward-looking statements. These and other risk factors are described in detail in the company's listing (indiscernible) dated 17 April, 2001, a supplement by the company's supplementary listings (indiscernible) dated 20th April, 2001, and the company's Annual Report on Form 20-F for the year ended the 31st of December, 2002. It was filed with the U.S. Securities and Exchange Commission on June 27, 2003.

Please note that all the figures referred to in the quarter are in U.S. dollars in accordance with U.S. Generally Accepted Accounting Principles. U.K. GAAP pound sterling figures are given in today's press release. Adjusted pro forma measures are used throughout this call and are defined in detail with reconciliations to U.S. GAAP figures in the press release. I will now turn the call over to Dinesh Dhamija, our CEO. Please go ahead Mr. Dhamija.

Thank you very much Oliver. Good morning to those participants in the U.S. and good afternoon to those participants from Europe. Before starting the call, I would like to bring to your attention to the fact that as well as announcing our results, ebookers has also announced today that it will be filing a shelf registration statement with the SEC to enable it to do future offerings of its shares up to $200 million. This is part of our company housekeeping as a NASDAQ company and the company is not presently doing such an offering. Legal restrictions mean that I cannot give any more detail on this until or if an offering is actually conducted over the next few years. However, I will of course, be happy to take questions at the end relating to any other part of the call. Without further adieu, I would like to hand the call over to Nigel Addison Smith, our Chief Financial Officer.

Thank you Dinesh and hello to everybody. 2003 was one of the toughest years in recent memory for the travel industry. The Iraq war, SARS and a hot European summer (technical difficulty) persuading potential customers to stay at home, all hits in key long-haul markets. Despite all of this, today we announced our first annual adjusted pretax profit. Sales growth was strong. Gross sales a non-GAAP measure, which looks at our total transaction value, were up 111 percent year on year to $928.5 million with organic growth of 29 percent, despite tough market conditions. For quarter four, gross sales increased 163 percent year on year from $101 million to $265 million.

The organic increase was 40 percent. Revenue for the year increased by 132 percent to $119 million with organic growth of 32 percent. For quarter four, revenue increased by 155 percent year on year to $32.6 million. The organic increase was 18 percent. Margin, which is turnover as a percentage to gross sales, a key strategic ratio for the group, improved from 11.6 percent in 2002 to 12.8 percent in 2003. This is a good result deriving from an improved product mix and showing progress towards our longer-term aim of 15 percent. Our quarter four margin was 12.3 percent compared to 12.7 percent in quarter four last year.

As well as driving strong growth, we continued to decrease our cost base. Net operating costs being sales and marketing technology and G&A, depreciation and net finance charges, increased to $119 million from $62.1 million in 2002 due to the acquisition of Travelbag. However as a percentage of gross sales, a key performance metric, our net operating cost ratio improved from 14.1 percent in 2002 to 12.8 percent in 2003, despite the impacts of Travelbag's higher cost base. This again is an encouraging result. Our target is to get this down to 8.5 percent, as Dinesh will elaborate in his part of the call.

Adjusted pretax profit, a non-GAAP term, is the group’s key strategic measure of underlying profitability, used by our analysts. It is profit before tax, exceptional and large one-off items, goodwill amortization and stock compensation costs. Adjusted pretax profit was $1 million for 2003 compared to a loss last year of $8.2 million, an important profitability breakthrough for the company. This profit comes despite the decisions taken by the company to invest significantly from the end of last year in senior levels of human resource now beginning to reap rewards with strong growth, as Dinesh will detail.

For the quarter, adjusted loss was 200,000 compared to $9.9 million last year. We are clearly disappointed with this and it arises from two UK/U.S. accounting differences. The first is our airline deals where we have not been able to put profit of $1 million, which we will now add to quarter one 2004 profit, the second is from upfront cash fees from GDS contracts where a similar delay has occurred but will not flow through into profits until later in 2004 and into 2005.

Net loss was $12.4 million compared to 13.5 -- 30.5 million in 2003. The decrease was primarily due to increased stock compensation expenses in 2002. Our cash balance also continues to improve. On the 31st December, 2003, it was $88.6 million compared to $29.4 million at the end of December 2002. At the end of quarter three, this September, it was $108 million. The seasonal decrease is due to bank suppliers prior to Christmas departures. That concludes my financial summary for the year.

As you can see, despite the unprecedented trading conditions, all measures improved. We reduced our cost base, grew revenues and finished the year with our first annual adjusted profit. I will be delighted to take any detail questions on the financials at the end of the call. I would now like to hand over to Dinesh Dhamija, our CEO, to review operational progress and then give a statement of trading and outlook.

Thank you very much, Nigel. I would like to divide my call, my part of the call, into three sections. First of all, I want to take a look at operational performance in 2003, and current trading. Secondly, I want to look at the cost reduction and reorganization program outlined today. Thirdly and finally, I want to finish with an overview of the market and ebookers' targets. I will begin with operational performance.

With tough market conditions, I am pleased with our organic revenue growth performance of 32 percent as a whole in 2003. The fact that we could do this in a bad year indicates both the resilience and the potential of our business model. Industry sources suggest that the market as a whole was off some 10 percent. Given our focus on integrating Travelbag in the UK and successfully converting it to online sales, organic growth was concentrated in our non-UK subsidiaries. Many of these subsidiaries started as small off-line acquisitions which we bought for their product relationships, local knowledge, management and licenses.

They are now converted to online businesses and they are delivering encouraging performances. As a whole, our non-UK business delivered revenue growth of 63 percent. The four Nordic countries Denmark, Sweden, Norway and Finland were particularly good performers. As a whole, they were up some 82 percent in revenue. We sell in 12 European countries, in addition to the UK. The Internet growth rates in much of mainland Europe are very high, as they are playing catch up to the lead UK markets. We are well-positioned to capture this growth. Revenue growth is not just about the switch of consumers to the Internet, it is also about selling higher margin products.

This is another area where we have done very well in 2003 and where I see huge potential going forward. There are two key positive trends here. Firstly, we have sold more non-air products. In 2002 non-air accounted for 25 percent of revenues. In 2003 we have increased its proportion to 33 percent. We're making good progress in reaching our longer-term target of 50 percent as soon as possible. Secondly, we are delivering revenue growth through better product buying. The experienced new product management is really reaping rewards here, helping take out overall revenue margins on gross sales from 11.6 percent in 2002 to 12.8 percent in 2003.

For example, we have also taken our hotel margin from 20 percent to 29 percent, our car margin from 18 percent to 23 percent, and our insurance margin from 38 percent to 52 percent. Air margins have remained strong on 10 percent year after year. This factor always astonishes our U.S. investors. Many ask, how is it that U.S. margins are down to zero and ebookers has still got 10 percent? There are two key reasons. One, we are different to many U.S. online agencies on the ground but most of our airfares are not subject to commission (indiscernible). Actually, 18 (ph) percent of our flights are merchant fares for which we set our own mark-up. Two, 80 percent of our business also is to long and mid-haul destinations.

These are more than five hours of flying. The wide body aircrafts used on these routes have much higher fixed costs and therefore much deeper merchant fares. We get these fares up to one year in advance of departure. 2003 was a tough year but the ability of our business to now deliver strong revenue growth is showing through. As was outlined in today's earnings statement, gross sales and revenue growth for the business as a whole in quarter one is strong. In quarter one to date, we have seen tremendous growth in Internet passenger bookings. These are up 69 percent from January the 1st to March the 18th compared to last year.

The UK is up 40 percent and the rest of Europe is up 107 (ph) percent. These kinds of growth rates are highly encouraging. With 2003 behind us, we're seeing a lot of pent up demand for long and mid-haul travel, our specialty, and the conversion of European consumers to the Internet continues a pace, as we catch up with the U.S. Now that Travelbag is fully integrated, in addition to this organic growth, we will also be considering further acquisitions this year in accordance with our stated acquisition strategy.

In the context of all this growth for the second part of my call, I want to look at the other side of the coin, our cost base and what we're doing to bring this down. As Nigel was saying, our adjusted net operating cost in 2002 last year was 14.1 percent of our gross sales. In 2003, we had reduced this to 12.8 percent. This is in the right direction but obviously not as fast as we would want. This was due to two factors. Firstly, we bought Travelbag, an off-line travel company with an off-line cost base.

Of course, our technology and integration has now changed this. Secondly, the decision to invest in new people to ensure that our product would come through. (indiscernible) is now being validated by the strong growth we're now seeing. That is the background of costs in 2003 and for the first part of 2004. Looking forward, everything is now in place to significantly reduce our cost base in 2004. We have been working with change management experts to look at our business. From this study, there were two developments announced today. The first of these is our structure. You cannot take out costs in an international business without the business organized in a way that allows you to do this.

We're now organizing our business on a pan-European function-based basis. This will remove any tendency for people to work in separate silos and ensure groupwide efficiencies and synergies, for example with technology and buying. To do this, we are realigning the group into two divisions. The first division is responsible for consumers and supply relationships, and the second on operations and technology. This will create a simpler organization structure that is focused on delivering the best possible customer service, combined with right first time operational and delivery systems.

Paying (ph) off the first division will be Peter Liney, who joined ebookers in February 2003 as UK Managing Director and was formerly Managing Director of Travelbag and head of leisure sales at British Airways. He is now being given the enhanced role of Group Commercial Director responsible for all countries. He will work in partnership with Dhruv Shringi heading up operations and technology, who joined the company in November 2003, has been appointed Group Operations Director, currently a non-board position, again for all countries. Dhruv Shringi, an Insead MBA graduate, came from Andersen and more recently Ford's business turnaround team. Peter Liney and Dhruv Shringi's roles were (indiscernible) Tani Dhamija, formerly our interim Group Managing Director.

With the announcement of our first annual adjusted pretax profit and having made a major contribution for the successful integration of our UK business, Tani has chosen this as an appropriate moment to step down as an Executive Director to pursue her personal interests. I would like to thank her for her valuable contribution to the group in an executive capacity and in particular, with the integration of Flightbookers, Travelbag, and the establishment of our Indian BPO. Tani will step down from her role on the 31st of March and will then continue as a non-Executive Director. Her decision to step down also indicates a vote of confidence in both Peter and Dhruv in taking the business forward.

As disclosed in our press release, our results -- and as a result of this change in role, Tani has informed the Board of ebookers that she would like to waive her right to the bonus payment of $1.8 million including employees' National Insurance awarded to her but not paid in November 2003. Following this pan-European restructure, the business is now aligned to implement our cost reduction program. This process has been announced to staff today and will be initiated with immediate effect. This will focus on several areas. Firstly, the new structure means that we can delayer our management, remove duplications and also accelerate standardization of branding and websites.

Secondly, as our Internet growth gross -- shows, we have made excellent progress in converting outside (ph) acquisitions to the Internet. For example, with our biggest acquisition Travelbag. This means that we can dispose of many retail assets in the UK and Europe and concentrate on cost-efficient Internet growth. Thirdly, we can accelerate our process of systems and standardization. The cost reduction and reorganization program will involve some headcount reduction. The process of consulting with our staff on this has now started and until this has progressed, we are not able to give more details on the program.

However, we will update investors further, when we announce our first quarter results on the 10th of May. As many of you will know, it is our group target to get operating costs to 8.5 percent of sales in the longer-term. That is over a full four percent in the longer term -- full four percent down in the longer-term. We expect that the cost reduction program announced today will have some impact on our business. Additionally, the temporarily higher costs of Q4 with new management will carry through into quarter one. But barring international incident, with strong Internet growth and the effect of reducing costs in the second half of the year, we look forward to further progression of growth of our 8.5 percent target.

I want to wrap up this call with a look at the market. 2002 and 2003 were both highly unusual in favoring short-haul trips in Europe, rather than long-haul. With Iraq War over and SARS and the Asian Bird Flu under control, I'm currently optimistic that this year should be a good one for long and mid-haul travel. The Madrid bombing had no effect on our business, as 80 percent of our business is long and mid-haul. I believe that short-haul routes are less profitable and at risk from intense competition from airlines such as EasyJet and Ryanair, following the fly for less, low cost model in the U.S. These airlines can only fly short-haul because of the type of aircraft they operate.

Thus, we have positioned ebookers so that over 80 percent of our revenue is now derived from travel to long and mid-haul destinations. This means that again barring further major international incidents, we are well set to benefit from a rebound in mid and long-haul travel in 2004. Taking a longer-term view of the market, it can be said with some confidence that here in Europe we are barely scratching the surface of the potential of Internet travel at the moment.

Currently, research suggests that the European Internet travel market is around $24 billion. That is -- 8 percent of all travel is booked online. In 2012, some research forecasters project that it will be worth $225 billion booked online. The agency part of this market is currently about half of the total. In the United States, over 80 percent of the agency sector of the online travel market is controlled by just three main players. These players are now among the biggest companies in the total U.S. travel market.

If this consolidation is mirrored in Europe and I have no reason to believe why it won't be, then in the future the largest travel companies in Europe could be Internet travel companies and the three largest could dwarf the current off-line giants. Consolidation is already well underway and there are now just five European agencies, Expedia, lastminute, Opodo, Travelocity and ebookers. I am to position ebookers as one of these long-term dominant players. On that note, I would like to wrap up this part of the call with five summary points. One, we have made our first adjusted annual profit despite difficult market conditions and the decision to increase investments in senior level human capital from Q4.

The bet we took on costs is now paying off with good Q1 growth. That we achieved this adjusted profit in one of the most difficult years on record in our long and mid-haul sector is testament to the potential of our business model in the future. Two, after a tough year of growth, growth started coming through in quarter four and quarter one is looking good. Gross sales and revenue growth for the whole business is strong and we made good progress with non-air. Internet bookings are booming with 69 percent organic growth and mainland Europe is really coming-of-age with 104 percent growth in Internet bookings this year. Our outlook for growth for the year is positive.

Three, we also have a new organization structure to enable us to reduce significant costs in line with group's cost reduction target and we will give further details on the 10th of May, after staff consultation. Cost will continue to be temporarily higher in Q1, however, I look to deliver the benefits of the cost reduction program as soon as possible. We expect some short-term impact on the program, however, we will be taking measures to limit these as much as we can. Four, I announced today four longer-term targets for the group. These are targets and not forecasts and our strengthened management and new structure is aligned towards them.

They are a cross-base of 8.5 percent from today's level of 12.8 percent, revenue of 50 percent non-air from today's figure of 33 percent, a repeat customer rate of 40 percent up from 20 percent today, and gross sales of 4 billion pounds or $7 billion, at today's exchange rate compared to today's figure of $900 million. With the huge opportunity presented to us in Europe and the measures announced today, I look forward to updating investors on progress against these targets. Ladies and gentlemen, thank you for listening. The question-and-answer session will be conducted by our operator who will remind you of the technical procedure for asking questions. Operator?

(OPERATOR INSTRUCTIONS). Ashish Thadhani.

Good afternoon. I have a few actually. Start with the first one. Gentlemen, there was no preannouncement, even though costs were running significantly higher and we are some two or three months into the new year. Could you just explain what actually happened and when you got to know that costs were actually running higher and the revenue was not there to make it up?

The preparation of the U.S. figures actually only started a few weeks ago, having sort of worked on the UK figures first. So it's only relatively recently that it became apparent that we have these U.S. GAAP differences.

But also, Ashish, this is Dinesh. Our accounts were just signed off on Friday. So, we could not tell you before hand as to what was going on, numbers were moving.

Obviously, we're reassessing the process that we go through, but basically our sales and our auditors do the UK work first and then do the U.S. work afterwards, and (indiscernible) will need to look at whether that is (indiscernible).

Interesting. Okay. Second, on the airline incentive, and the GDS payments, did the revenue recognition guidelines change or was the company following incorrect guidelines to start with?

The revenue recognition guidelines are exactly the same. However, it only arose within Q4, the situation on the airline incentive deals. It's because of the structure of the target on the airline deals, and clearly as I have said on the call, that million dollars of profit now lands within quarter one because most of these contracts actually got a March year that they run through, the 31st of March. On the GDS contract, I think there was sort of a small difference in respect to prior quarters but I mean it is probably not more than $100,000, so it is not that material.

But the guidelines changed, is what you're saying, right?

The accounting standards are the same. Quite a lot of the GDS difference actually arose out of some renegotiations of the contracts, but we didn't -- we obviously looked at it primarily from a UK accounting perspective rather than a U.S. and we found that it actually had an adverse effect on the U.S. accounting.

Okay. Finally, on the cost reduction program, you have indicated obviously that you don't want to get into any details, but without actually getting into details, should we assume this will be moderate or aggressive? By when do you think we should expect completion of the entire exercise?

We will obviously be making an announcement, Ashish, on the 10th of May. The law in Europe states, especially in the UK as well, states that you have to have a consultative process for a month with your staff. I know that is not the law in the U.S., but we have to adhere to it here. That is the reason -- the 10th of May is about six weeks away, six or so weeks away, and then we can be absolutely clear-cut with our announcements on what we're doing. One of the things that, obviously, we will do is we will be closing some bricks and mortar shops because for example, we have four or five in London, well they can be consolidated into two and stuff like that. That I can tell you now. But, it is better to discuss it with our staff before we make the announcement to you.

Understood. Good luck. Thank you.

Michael Novak.

Yes, sort of a follow-up to the recognition that you had a cost problem. Can you go through with me your systems and how you monitor your costs and they were materially higher than what many people were apparently expecting, as the stock is down over 20 percent. For it to be that materially higher, I can’t believe that you just got to the end of the quarter and discovered it. So first-off, your systems, and then secondly were these decisions that you consciously made to invest in the business, and if so, some more specifics on what you expect to get from those in the future, please?

In terms of the costs, we were aware that costs were running higher than prior quarters. However, we were actually expecting, from the significant increase in gross sales that we experienced, we were actually expecting better margin to come through. Obviously, by the time you then add on top of that the airline incentives and the GDS contract income, that is actually how the shortfall arose. It is actually a shortfall on revenue rather than on the cost side, that actually drove the situation.

So were gross revenues in line with expectations?

No, we were expecting significantly higher revenue.

Michael, this is Dinesh. Our gross revenues beat expectations, but the point here is we did employ senior management, etc. It's very difficult with a ninety day period to be able to take that cost, as well as provide for what all of them will payoff. We thought that some of them would and some wouldn't. As Nigel pointed out, that didn't happen, and it is coming through now. You can see the sales going up quite a lot, organically. But there was also the problem of airline incentives and GDS recognition.

Okay. Just to clarify, the gross bookings of about 265 million U.S., that was in line with your expectations?

No, because it was well ahead.

Let's go to the net revenue line. Gross margins decreased sequentially from 12.7 to 12.3. They were also 12.7 last year. Now, what -- to include all of these reclassifications and everything else, if you can break out the factors that impacted that, that would be helpful, please.

Right. Okay. Obviously, those two items constitute 1.6 (ph), in terms of margin. So the million dollars airline incentives and the 600,000 on GDS, that is $1.6 million. If you compare that to the gross sales for the quarter of 265 million, that is 1.6 (ph) percent in margin so we actually would have come in at 12.9 instead of 12.3. Then on top of that, because we obviously had much higher sales than we had been expecting, we were expecting the underlying margin to come in better than it actually did. But, we didn't know that we had actually increased the costs but we assumed that the net effect on the bottom-line would actually leave us in a good position vis-à-vis the market.

Okay. Now, as we look forward to the first quarter when those $1 million that were taken out of the fourth quarter rolls in, what should we expect for the gross margin numbers? Should it be close to that 12.9, 13 percent?

In terms of gross margins in Q1, the significant Internet growth that we referred to, the 69 (ph) increase in passenger numbers, that has primarily been flight sales. Therefore, in terms of the margins, clearly if margins on flight sales are 10 percent, that clearly leads to a slight dilution and obviously, the opportunity with those flight sales is having recently implemented our new CRM system. The departures are actually not for some months. It is actually now cross-selling hotel and car hire to those customers that we have attracted.

Okay. Now, you saw good growth in hotel and cars in '03, but it sounds like that growth rate is abating relative to air travel?

Current hotels are still growing but where we have seen, there has been a significant pickup in growth in flight sales in quarter one.

But I don't think that as a percentage, they are increasing in revenue terms?

What it is meaning is the mix is not improving quite the same way, so hence why margin improvements for Q1 are not quite as high as one would have expected.

So, you're saying that airlines are growing faster than hotels and cars?

They are growing at similar rates as opposed to their being a net increase in non-air products.

Okay. What are specifically, other than the ECRM software, are you doing to increase the (multiple speakers)?

We launched carbookers in February, and on the back of that we have obtained some quite significant car contracts that give us very competitive pricing, but obviously because we only launched it in February, the benefit of that, in terms of revenue, will flow through into the Q2 onwards.

Our Dynamic Packaging is working quite well. It started going up quite a lot. I think we're -- Michael, we might be prejudging Q1, before we get all the figures.

From a conservative standpoint?

Yes.

Okay. As you look at your sales and marketing expense and G&A expense, are those -- those are the two line items I assume where the cost reduction program will hit?

More G&A, sales and marketing I think less.

Okay. So 11 million on the G&A line in the fourth quarter. On sort of a quarterly rate, how much in dollar terms, do you think you'll be able to take out?

We would rather -- we have just announced it today to our staff. We would rather go through it and give you very good type numbers on May the 10th, rather than today. We think that we should move way towards the 8.5 percent mark. I know that we have not given you a timeframe on that, but we will -- let's give you two previous experiences. When we had 911, we had to lay off 20 percent of our staff which is 140 people out of 700. When we had -- when we took over Travelbag last year, we laid off 150 people. This is the next stage of laying off the bricks and mortar people.

Okay. So, in the full year 2004, would you expect G&A to be less than the $44 million level if I annualized the fourth quarter?

Clearly, quarter one and quarter two of 2004 will broadly continue at the same level. The cost reduction program will only kick in at some point in May and really the first month that we'll benefit is June. So I mean clearly, that is the opportunity as you have alluded to it.

Okay. And some details, I guess you said you couldn't give details, but on the shelf filing, this is for acquisitions?

We cannot say. Our lawyers have told us we cannot say anything about that. It is actually, as you -- well there is no financial institution at the moment sponsoring it, but this is a housekeeping, good housekeeping, getting something on the shelf in the states and I think every institution based on the NASDAQ who has said that they will raise money for various purposes should do this.

Okay. Thanks.

Noah Echols (ph).

I had two questions. One, can you update us on what percentage of your business is off-line versus online? Question two would be, you talked about your bookings growth rate year-over-year online. I was wondering if you could give us that number for off-line? That is it, thanks.

Right. In terms of quarter one, the online gross bookings constitute approximately 34 percent of our gross bookings. We then got a further, I think it is around sort of 35 percent is Web originated phone calls. That is people phoning us using the phone number we advertise on the Web site. We use a different phone number for each distribution media so we can monitor that. The remainder is the off-line side of the business, which constitutes call center activity where people phone using phone numbers advertised in places like newspapers and then also, the shops which only constitute about 5 percent of sales, if that.

That gives you an idea of how the business is split up. Of this, Travelbag is just -- we have only converted slightly over 50 percent of Travelbag online. That conversion is still going, so that is bringing our averages down. The other point is that the average transaction value that we have is around 800 pounds or say $1,400 or $1,500. When people -- because it is long and mid-haul. When people want to book a $1,500 transaction with you, sometimes they do want to ring up and ask questions. We saw this about two or three years ago in the states when we asked Travelocity and Expedia at that time, that is what was happening. We see the off-line coming off, we see differential pricing coming in which we haven't got at the moment, which will accelerate the online booking process in the next few weeks. I don't know if that answers your whole question?

In just trying to figure out -- we know what the Internet bookings growth rate is for the quarter. I'm just trying to sort of back into or figure out what the overall bookings growth rate is for what you have experienced so far quarter to date quarter.

I think it is 50 percent.

I think from a statutory accounting perspective, it is probably somewhat just below 50 percent.

Great. Thanks.

For the total business.

There are no further questions at this time sir. Please continue.

Thank you for your questions and for joining in the call. If after this call, you have any further questions for me or my colleagues, please contact us via Investor Relations Manager, Oliver Strong, on +44 for the UK, 207-489-2239, or email Oliver.Strong@ebookers.com and we will get back to you as soon as we can. Thank you for your time and may I wish you all a good day.

That does conclude our conference for today. Thanks for participating. You may now disconnect.