Multitude AG (0R4W) Earnings Call Transcript

Good morning. On behalf of [indiscernible], welcome to the Multitude's preliminary results 2021 earnings call. Today, we will hear presentation regarding the preliminary and audited full year results by the CEO, Jorma Jokela; and the CFO, Bernd Egger. [Operator Instructions] I now hand over to you, Jorma.

Hello, good morning everybody. And nice to see so many people participation in Multitude's preliminary results 2021. My name is Jorma Jokela; I'm CEO and Founder of the Multitude Group. Good. Let's start to look what good news we have for you. So let -- first one, few words about Multitude. Multitude is a fully regulated growth platform for financial technology. Its ambition is to become the most-valued financial ecosystem. This vision is backed up by over 15 years of the solid track record in building and scaling financial technology. Through its fully European banking license, profound know-how in technology, regulation, cross-selling and funding, Multitude enables a range of sustainable banking and financial services to grow and scale. The tribe or this metaphor planet, how we call that here, currently there is 3 independent business units in this growth platform. Ferratum as consumer lender, CapitalBox as a business lender, and SweepBank as shopping and financing app. And on the next slide you can see that all of this 3 tribe to they have own independent customer segment, what they serving -- serving from their own products. They have own management team, they have own resource there. What is similarity behind there that all the 3 planets or the tribes, they all offer the customer simple, pure digital financial solution, easy and simple to use and real-time. And of course they all using our Multitude as like a banking platform. And additional, there is like different trends, what is the supporting for all of them to -- what is supporting all of them to growing and doing their business. The post-COVID boost is one element, financial inclusion, online shopping, and customer experience over the products. But let's go to today topic, to look at our preliminary numbers from 2021. Full year sales, EUR 213.7 million. Earnings before interest rate and tax EUR 23.9 million, well in guidance what we published already earlier, lending portfolio or net AR growing over 20% and ending in the EUR 443.9 million. If you look to all this 3 tribe, what we have it here, revenue -- 85.5% of revenue comes from the Ferratum, 10.3% comes from the CapitalBox, and 4.2% of revenue comes from the SweepBank. On the lower picture here you can see our quarter sales from this year. And I have to say that this is quite amazing because you can see that we -- you can see that we have delivered the growth. And in the same time, we have managed to keep our cost per quarter under very well under the control. The full year highlights. I think the asset quality have improved all our 3 tribes. And we have managed, very successful implementation, our new strategy, new branding and new management model, the Agile model. But each of the 3 tribe they have of course their own highlights. But the SweepBank, I have to raise that we launched our payment app and financing app, and we are currently moving in the monetization phase. Ferratum, we delivered really strong profitability. And CapitalBox, we are back to growth. About the future. We are looking at Multitude Group level to continue the profitability growth with the high automatization, exploring the new opportunities, countries, product partnership, and of course the acquisition opportunities as well. We confirm our guidance. We launching the guidance in the -- earlier in the last year. And we confirmed that one. And we bring the ESG the middle of everything what we do. But let's start to look at the SweepBank. Let's jump to next slide. So SweepBank revenue grew in the 248%, ending at EUR 9 million. This is amazing. This is really, really amazing. Of course, earnings before interest rate and tax, it was minus EUR 20.6 million. And it's important to understand that this is the -- this business unit, this tribe is a fast-growing investment case, is a growth investment case. And I think that one of the good evidence for that one is lower picture on the right-hand you can see the lending portfolio net AR what is looking like hockey stick picture and growing really fast and ending at EUR 85.8 million. During 2021 we launched the new shopping segment payment and banking app with new branding, the SweepBank brand. And very quickly this brand is coming on those 2 markets where they operate today. It's coming on the one of the top ranking app on both Google Play and Apple Store. During the Q4, we launched Prime Loan in Demark, and Credit Card in Finland. And we're running the marketing campaign with MasterCard. Today, SweepBank is operating in 5 markets, Finland, Sweden, Denmark, Latvia and German, with 3 different products where the mobile banking is one, our consumer loan Prime Loan is second. And then it's the nearest product, the Credit Card. Today we have 48,000 customers. About the future and the SweepBank. We're looking forward to accelerate our app monetization through the credit card sales and exploring the risk-free revenues. We're look to app launch in Germany and continue to grow the lending portfolio, all our markets. On the next slide I think you can see the amazing picture for the growth behind the SweepBank. And if you looked at through the COVID time last 2 years, we have built something really unique. Both customer pays and lending portfolio have increased the multiple times. But that's about SweepBank. Let's go to look next Ferratum, our oldest business unit. So Ferratum revenue was ending in the EUR 182.7 million, what's really good result. And earnings before interest and tax EUR 42.6 million. That's really, really great. This is amazing result. It's driving the EBIT margin as 23.3%, lending portfolio growth and ending in EUR 282.6 million. And on the full year, we continue the quarter-on-quarter revenue growth and improve asset quality through the portfolio sales. Payment behavior stays really strong. And we managed to improve the customer experience through the self-service tools and increase the automatization at same time. And of course, we are scaling credit limit on the new markets as well, and last one, decrease the cost per new customer, acquisition cost. On the Q4 with successful launch on the Slovenian market, totally new country for us; with successful upgrade from the Microloan customer base to Credit Limit in Romanian market, what's resulted that doubled our lending portfolio. And we exit from the U.K. market. Today, the Ferratum operate in the 14 markets with the 3 different product, Microloan, the small consumer loan; PlusLoan, installment loan; and Credit Limit. And on the future on the Ferratum, we will focus the credit limit product rollout, exploring the new products, exploring the new country opening and accelerate organic profitability growth. That's where we are really good. And I think the next slide you can see -- next slide, you can see the very good evidence for that one as well and the track record. So during the last 10 years, from 2011-2021, the combined average growth ratio is over 27%. That's a really, really strong track record. And even now, the post-COVID, we are back to growth on 2021. But let's go to look next one, CapitalBox. So CapitalBox ending revenue EUR 22 million. Earnings before interest and tax EUR 1.8 million, and lending portfolio back to growth as well, EUR 75.4 million. During 2021 we launched 2 new products, Credit Line and Purchase Finance. We successfully shifted portfolio, more non-COVID affected with the strong portfolio quality. We reduced the funding cost by integration of the portfolios in the securitization structure and focused on the prime billing activities. Through the Q4, in December, we are doing the best sales month from post-COVID. We launched in Sweden the Credit Line product, and we launched the new product, [ Purchasing Finance ] in Finland. We successfully automated customer onboarding and risk-based pricing in Finland and Sweden. On the way that today CapitalBox is operating in the 5 markets, Finland, Sweden, Demark, Lithuania and Netherland, with 3 different products, installment loans, Credit Line and Purchasing Finance. And on the future trend, we will focus to accelerate organic profitability growth, explore the new country and product and scale the credit line product on the new countries. On the next slide you can see the CapitalBox, how amazing track record, they have growth as well. This unit is -- tribe is around 6 years old. And we have a computing average growth rate, so from lending portfolio is over 80%. And again, back to growth post-COVID. And it's profitability growth. Good. But that's more or less from the overview on the business side. And surely want to leave a few key takeaway for you and we as Multitude, we managed to implement this new strategy, new branding and Agile method and model and really successful during 2021. It's helped us to scaling our business on the future and increase our scalability. We remain in the really strong asset quality, and that we see in the future as well. We are back to profitability growth in all 3 business units the post COVID. And what is very important to understand now as to like a Multitude new strategy and new structure here that we have very well-diversified investment case portfolio. When you look at the Ferratum business, we have a very strong profitability behind there. CapitalBox is ready to profitably growth. It's ready to go into next phase. And SweepBank is really strong growth rate and very strong growth path but still in the investment and not profitability yet. And these 3 business units together is made as Multitude, who we are today. And thanks to our team and our whole team, the support, they will be growing on the next phase on the future. But I think it's time to moving on the financial part and I want to handover for Bernd Egger, our CFO.

Good morning, everybody, and thank you very much for your interest in our preliminary 2021 results presentation. I will guide you through the financials, preliminary financials for 2021 and would like to jump to the P&L key messages right away. The key messages on P&L performance are as follows: revenue, EUR 213.7 million. That is a slight reduction of a little bit more than 7% compared to last year. The key driver for the revenue reduction is actually that during 2020 we still had a revenue-generating portfolios on the books from markets in which we have not continued lending. That accounts for 70% -- more than 70% of the revenue reduction. We'll go to more detail when we talk about the tribes. What is important to note from my perspective at least, is that from Q2 onwards we see quarter-on-quarter revenue increase. That means that Q2 outperformed Q1, and Q3 was above the level of Q2, and Q4 above the level of Q3 in terms of revenue generated. From an operational profitability perspective, let me briefly jump to the cost side. Impairment costs down significantly, minus 21% compared to 2020. That is an equivalent of minus EUR 19 million revenue in impairment losses. Marketing and sales expenses up by EUR 3.8 million. This is in line with the fact that our lending activities, our marketing initiatives were increased significantly during the year. As Jorma pointed out, we have a broader brand universe now with the ambition of accelerating growth in all 3 that naturally results in a slight increase in marketing and sales expenses. So this is something that we've done deliberately. Personnel expenses remained exactly flat compared to last year. This is essentially the result of continued efforts to implement and to maintain a lean organizational structure. This more lean type of organizational structure is also reflected in the fact that general and administrative expenses also remained flat compared to last year. What that means is that we have managed to implement an organization that is leaner and more efficient and does not grow as it did in the past with increasing loan volumes from a cost perspective. Depreciation and amortization, slightly up with increased capitalization, but also we have made a little bit of an adjustment in goodwill in the amount of round about EUR 700,000 to EUR 800,000 this year. All in all, from a profit perspective, operating profit, earnings before interest and tax from continuing operations, EUR 23.9 million. I'll come to discontinued operations in a minute. Finance costs essentially stable despite the fact that the portfolio is substantially bigger than last year. We have reduced foreign exchange costs quite significantly compared to 2020. We have a lower debt capital market basis. We have, as you know, reduced the outstanding debt capital market instruments by EUR 35 million. Interest on the perpetual bond is not reflected in finance costs. But even if we add those costs that would be reflected in equity directly we still would see stable finance costs compared to last year. Overall, pretax profitability from continuing operations positive at EUR 3.6 million and net profit from continuing operations positive at EUR 1.2 million. We need to take into consideration a EUR 3.8 million loss from discontinued operation. What's the rationale, what's the logic behind that. This relates to the final exit and also the disposal of the loss-making legal entity we had in the U.K. Taking into account the positive result from continuing operations and the onetime hit from discontinued operations, U.K. results in a net loss of EUR 2.6 million. Rationale behind this transaction is fairly simple from an economic perspective. We have accepted the one-off impact on the profitability in 2021 in order to avoid costs going forward. So the positive impact of this discontinued operations impact on the 2021 results means that there will be no impact whatsoever from the U.K. business on the P&L going forward. On the next slide we see the structurally important aspects of the balance sheet. Those can be summarized as follows. Quite obvious based on what Jorma has highlighted already, we see quite significant increase in loans to customers, the loan book increased from EUR 361 million to EUR 444 million, which is an increase of 23%. I will talk in a minute about what the key drivers are and how this can be broken down on tribe level. Cash and cash equivalents, similar increase, in line with business growth. Currently cash and cash equivalents, slightly above EUR 300 million to support growth also during 2020. On the liability side, this is reflected in an increase in deposits to round about EUR 480 million. You will also notice that there is a shift from noncurrent to current liabilities. That relates to the 2018 to 2022 bonds maturing in May this year. Equity, quite significant increase, up by 36% to EUR 170 million at year-end '21. Consequently, net debt equity increased -- sorry, net debt equity improved and dropped essentially to very solid 2.05, which is substantially below the level of end of 2020 and also below the level of end of 2019, quite significantly below [indiscernible]. On the next page, we can have a look at the composition of the revenues between the 3 types and also the loan book, the composition of the loan book. From a revenue perspective, it is worth highlighting that we had a very strong increase in the SweepBank revenue, both in absolute and in relative terms. In absolute terms, SweepBank revenue has increased from EUR 3.6 million to EUR 9 million. This now represents a proportion of 4.2% of total revenues. Sweep and CapitalBox together account for close to 15% in revenue of 2021. From a loan portfolio perspective, all 3 businesses increased the loan books during 2021. You can see that in the pie chart. On the left-hand side, 2021; on the right-hand side, 2020. Ferratum increased by around about EUR 18 million; CapitalBox by EUR 12.5 million, SweepBank, I think you can see that easily on the chart, increased by EUR 52 million. So that altogether accounts for an increase in loan book of EUR 82 million during 2021. And I would like to reiterate, while SweepBank is the key driver, all 3 tribes are back to growth mode from a portfolio size perspective. On the next slide we can go into a little bit more detail on the tribe performance, the segment view. I would like to start with Ferratum as it is still the largest tribe. Portfolio is growing. We have spoken about that. Revenue is below 2020 level, but I've highlighted that initially this is largely due to the fact that in 2020 substantial revenues were still generated from old, so-to-speak, markets in which we are no longer active as we have discontinued lending since we were not fully satisfied with the profitability in those markets. These markets account for more than 70% of the revenue delta in the Ferratum business. At the same time, there are several markets with significant double-digit revenue growth, 2021 compared to 2020 in the Ferratum business. So we are moving forward with the strategy of focusing on profitable core markets. On the Ferratum tribe, I would also like to highlight that the impairments have improved significantly during the year 2021, and that in turn translates into a very strong profit performance with an EBIT of more than EUR 42 million. SweepBank revenue increased, as highlighted, by a factor of 2.5, now at EUR 9 million, quite a significant increase. We've invested quite significantly in product development, in sales, in marketing. This is an investment into future growth. That is also why we have accepted operational loss of around about EUR 21 million. So we look at that from the perspective of investment in future growth. Finally, last not least, CapitalBox. Also CapitalBox has shown an increase in the loan portfolio. I would like to highlight that especially during the second half of Q4 we've seen a strong increase in loan disbursements in the CapitalBox tribe. Revenue in '21, a little bit EUR 4 million below the 2020 level. EBIT slightly positive at EUR 1.8 million. We have seen quite a number of promising new product initiatives launched in 2021. That is -- these are the key messages on CapitalBox. Two statements that hold true for all 3 trials. Firstly, marketing and sales expenses were stable or slightly increased. Again, this was an active decision to support future growth. And secondly, a very solid underwriting performance in all 3 tribes. Talking about underwriting performance. I would like to move on, on the next slide, and give a little bit of an update on payment behavior. You might be familiar with this chart. So we've started presenting payment behavior, customer's payment behavior 2 years ago and as a consequence of the pandemic to familiarize with the evolution of our asset quality and payment behavior. The key message on this slide -- and by the way, on the right-hand side, the 3 graphs display the percentage of invoices paid within 7, 14 and 30 days, respectively. The key messages here are that the payment behavior as there is an upward trend in 2021, were consistently on a higher level than in 2020. I should add or I could add that this positive trend also continues during early 2022. The key drivers are progress that we have made, the risk management team has made in underwriting strong collection performance. And as pointed out earlier, a focus -- the strategy focusing on profitable core markets. With that, I would like to continue and also show you a slide on the next page that I've presented in the past in a similar form and would like to briefly focus on asset quality. So the improved payment behavior translates into higher asset quality. Here we are measuring, on this chart we are measuring asset quality as impairment over net accounts receivables. Two key messages, over the last years, especially during 2019 or from the period from 2019 to 2021, we have seen a significant rise in asset quality. We've not seen it obviously, but that's the impact of really strong performance by the risk and underwriting and collection team, but also business team, of course, and marketing. The key drivers here are, as I said, enhanced scoring, enhanced underwriting and focus on better asset classes in all tribes. So this is not only something that is typical for SweepBank tribe, but this is something where we applied a consistent approach over all 3 tribes. As a result, the impairments for credit losses of net accounts receivables went down from around about 25% to a little less than 17% for 2021. On the next slide, please focus briefly on cash development. We have a quite strong liquidity base. We are talking about, around about a little bit more than EUR 300 million cash and cash equivalents on our balance sheet. During 2021 we have increased, improved the utilization of deposit funding even further. That is important for 2 reasons: one, to bring down funding costs, but secondly, also to maintain a very well-diversified mix in terms of funding. I'll come to that in a minute. The cash position is fairly high. And this is set to enable us to continue with our growth ambitions during 2021. It is important to note that we have strong cash balances in all businesses, mainly in all relevant legal entities. On my final slide, I would go into a little bit more detail on the funding update. What are the key messages on this slide. On the pie chart in the middle you can see 3 differences between, 2021 reflected on the right-hand side and 2020 reflected on the left-hand side. Firstly, as just pointed out, the deposit base and utilization of deposits is increasing quite significantly. That's the black area. Secondly, capital market debt was reduced during 2021, around about EUR 35 million. And thirdly, you see a new segment in this pie chart that's the EUR 50 million equity instrument that we issued during 2021 that qualifies as equity on the IFRS regulation. Cost of debt capital slightly decreasing, in line with what we have presented in the past, also factoring in. So would be at the interest on the equity instrument, then we would still have a very successful development in cost of funding. Let me briefly finally talk about the upcoming bond transaction. So we are in the process of preparing a capital markets transaction in order to refinance the 2018 to 2022 bond. We have mandated 2 investment banks, Pareto and Jefferies in our case, to work with us on the preparation of a new bond transaction. Preparation will be finalized, I would say, within the next 10 days or so, so then we would be ready to go to market. The plan is to issue a product in the range of EUR 60 million to EUR 80 million. Obviously, we will have to factor in the geopolitical situation as this might impact the timing of the transaction. So the ambition is to start as early as possible over the next week or 2, but we will need to be a little bit flexible and observe the geopolitical situation. And as I've pointed out already, it is important to note that we currently hold a strong cash position. With that, I would like to thank you very much for your interest.

[Operator Instructions]

Good. Thanks, Bernd. And we have received several questions here. Bernd, maybe we can start to answer. Maybe I can take -- maybe you can read the questions now after your presentation, and I can take here some easier answers. So there is a question from Hauck & Aufhäuser, Frederik Jarchow. What is the reason behind the discontinue of U.K. business? And that's a really good question. In U.K. business, we practically suspend lending already above the 1 year back. So we didn't issue new loans. We of course have the lending portfolio there. And then we decided that we want to -- we want to look in carefully what's happened in the Brexit case, how this COVID impact in the U.K. market. And based in that one, we just come to conclusion and seeing that currently in the U.K. market after the Brexit is not so attractive. But it's not mean that we don't never going back in the U.K. market. But just currently when we want to keep the focus on the midterm in the profitability, customer base as well and the business unit. That's the reason why we decide that we want to exit from the U.K. market. Good. I don't know, Bernd, do you want to add any comments related to U.K. more.

No. I think that is the key message, that's really, I agree.

Yes. Then there is Philipp Häßler from Pareto. Philipp has many questions here actually. There is 6 questions. But maybe we can take a little bit, not right order here, and I can answer the few of questions and then maybe Bernd, you can take remaining question there. One of the question from Philipp, have -- do you have a plan to sell any other country operation? And I think the short answer is that the -- just today and currently, we don't have like a plan. But of course, we want to keep our country portfolio in all the time as a clean that the countries where we are in, we are in there because we believe that we can do in the profitability growth. And if we feel that we cannot do the profitability growth or we cannot do in a growth and profit, then we have to rethinking on did we want to be in this country, what is the reason behind? And if the reason is behind there is coming from the more the local market conditions, then I think the situation is that we start to consider in the exit from those markets. What is the exit strategy there? Is that we're just like a selling to entity or how we do in that one, those are of course the case by case. But of course, the critical countries, the biggest countries where we operate today, naturally we are -- don't currently see it because they develop in really, really well. Of course, we have some smaller countries, what might one day to come out of the solution that we want to sell in those as well. But not today, it's not the plan today. Good. Then Philipp have other question as well. What is the impact from the Ukrainian -- what's the impact from the war in the Ukraine sanctioned against Russian on your business, direct or indirect? This is naturally the big topic there as well. And we don't have a business lending activity in the Russian. We have had it, that one, but we closed this 2 years back. And more or less the same reason than what we see in the U.K. that we didn't see the future on the lending portfolio behind the rental market conditions there. And that's the reason why we exit from the Russian market. We don't have -- we don't have any activity there. We don't currently see that there is any direct impact for us. Of course, the market conditions in the general, that's more or less they might affect for all of us in the somehow. But we don't have a business activity in Russian or we don't have like any like a funding source or the banking relations, if they're -- even our bank entity, we don't have any correspond banking partner in the Russian side. So there is 0 impact from that point of view. But what is the indirect impact, that's the always question, Bernd. That's a question maybe more than how long this or will be remaining and how direct the impact is coming to us. Bernd, do you want to take a comment on the Ukrainian-Russian war?

Yes. Well, we have no exposure. Naturally, we are not happy with the situation and with the uncertainty that comes with it, but we don't have a direct financial impact at all, no exposures, no meaningful partnerships and no partnerships. So from that perspective, we are pretty much unaffected.

Yes. Good. Good. I think then, Bernd, maybe you can take Philipp, the rest of the question here is.

Yes. Good. '21 EBIT target of EUR 30 million does not sound very ambitious. I assume this relates to '22 target, which is our EBIT guidance for '22. "Can you please explain why you are so cautious? Well, that's an excellent question. I mean when we have published the guidance for the years '22 to '24, I received quite a number of questions why we are planning to be so aggressive in terms of our profit development and guide on the expectation of 50% profitability increase for 3 years in a row. So there's an element of truth in both in that, I guess, I think that the EUR 30 million is a realistic plan. And I would like to add that -- and don't get me wrong on that, I'm obviously very much interested in '22 results. But I think it's, even more important is that we establish a sustainable track record of profitable growth for the next couple of years. So -- and for that, I think the EUR 30 million guidance is a good indicator, what extent, EUR 29 million, EUR 32 million, let's see, we need to factor in the current development. But I think it's very reasonable. I agree, not overly aggressive target, but also not too cautious. We need to take into consideration that we are investing quite a lot in the SweepBank offering. We want to accelerate growth in CapitalBox. We have -- CapitalBox for instance has implemented a number of new products, bringing products to life and also not only technically but also to push them in the market comes with a cost. So there's a lot of market-related cost initiatives that we need to factor in. So from that perspective, we think that EUR 30 million is a very reasonable guidance for this year.

Exactly. And maybe, Bernd, if I just want to support your answer there that, I mean it's always the balance between the marketing investments and this -- the credit loss reservation part because every time when we are growing at a fast-growing phase, when we get, on-boarded the new customers, there is a front load, it's upfront loaded, the cost, from the marketing and the credit loss and underwriting cost. And that's the -- you can see the SweepBank case now that there is a really nice growth behind. But, of course, there is a cost of that when the marketing cost is 4x higher or 3x higher than last year, the credit loss cost is increased to significant. And it's not because the business is bad. The business is profitable. In the unit level, it's we just have to upfront load those costs, and we have to scale in this certain size that we can cover the fixed cost behind there as well. And that's the little bit like a balance what we are looking from here as like a guidance as well.

Good. And maybe continue with 1 or 2 more questions raised by Mr. Häßler, if I may, and I'll be brief. And I can combine it actually with 1 or 2 other questions, Mr. Hess raised a question on development of stage 3 loans in Q4. There was another question on expected credit loss or impairment levels in Q4. In general, I would like to make 2 statements on that. One is we have seen or we actually decided to increase credit loss impairments in Q4 compared to Q2 and Q3. We have done some cleaning actions. In a way we have sold portfolios. We have, as you know, exited U.K. We have accelerated impairments or write-offs of some portfolios in order to have a clean sheet for 2022. This is why we basically tend to look at credit loss performance more on an annual basis because there's always some fluctuations from quarter-on-quarter basis. There is another question by -- raised by Mr. Häßler. Cash level, EUR 300 million appears to be high, what development do you expect for the current year? Yes, we are, in that respect, in the process and have established a fairly conservative approach. So it's important for us to make sure that that when we established a growth plan that we have the means and resources to implement the plan for '22. We can only meet the guidance if we speed up growth, and that requires some cash. So from that perspective, we are currently in an excellent position in terms of liquidity. And -- but we would aim at maintaining a fairly high cash basis also going forward.

And Philipp have a question about the revenue development in Q1 so far. And I think that Q1, it looks good in general. Of course we have to remember that Q1 is to be a little bit shorter period than it's done in the example in Q4 because February is a shorter month. In the Ferratum part, if you compare the quarter 1 2022 versus quarter 1 2021, I think as we see the good things in the -- and actually we see all of those tribe in the compares of Q1 and Q1. Compared of Q4 and Q1, there is a positive trend as well. I think it looks good. Bernd, do you want to support it? Support your co-man.

Yes, absolutely…

I hope I didn't say too much.

No, I think that is okay. I mean I've also given some indication on '22 already in terms of payment behavior, which supports the trend of the last 2 years. And yes, I agree to the statements that you just made.

Good. Good. Okay, then back to [ after ] questions. I think there is – [ Johannes Wilt ] have a question. Why was Q4 result on a similar basis negative even for continued operation? Do you want to take that one?

Yes. Yes. Yes. Basically, from a net profit perspective, there are 3 reasons: one, and that is -- the main reason is the exit both from the British market, but also the exit, which means the sale of the legal entity that we had. So that's factor number one. Factor number two is that we have increased for the recent explained credit loss impairment compared to the previous years. But still, I would like to highlight that this is related to create -- accelerating write-offs that is a planned initiative. We do not see a deterioration of payment behavior. So that is factor #2. And from a net perspective, the third factor, which is not the most decisive one but still for the sake of completeness, it should be raised. We have also accelerated write-off of deferred tax assets, EBIT, which is the impact of 700,000, 800,000 on net profit. What that means in financial terms is we are now at a deferred tax asset level EUR 7 million at the end of this year, which is much more conservative than the, yes, double-digit levels that we had in the past. So those are the 3 aspects that result in the Q4 performance. Most of them, as I said, are of onetime nature.

Okay. And then there is a next question. Then there is a next question. Little bit combined question Johan has built the second question. How will you improve the result at SweepBank? And it's a little bit combined with the question from Frederik Jarchow from Hauck & Aufhäuser, that what is the fair assumption customer acquisition, of course, is somewhere EUR 110 million between EUR 150 as the SweepBank segment. I think we won't comment currently on the like exactly the customer acquisition cost. However, when we look -- and this is for the completion reason as well, I think what is important for us as SweepBank, we are at a unit level profitability today. So we do the profit. There is few elements how we improve that even further. There is a first one. We are exploring the, like a risk-free revenue options inside our app as well. And we have a customer who have asked to start the service. And we feel that there is a demand there. So that's one additional element there. The second one is credit card. So we have just now in the -- just Q4, the launch in our first credit card offering in our payment app. And this combined and rolling this into new countries and then rolling this for all our customers, it's really important elements behind there. So those 2 things the top of the accelerate the customer base there, it's actually 3 things that we can cover the fixed cost there and get like a size, the bigger there. Those are the way how we're scaling that sweep on the more profitability phase. Good. Bernd, any comments from your side that one?