Earnings call transcript: Adtraction Group Q1 2025 sees net sales dip

Adtraction Group AB reported its Q1 2025 earnings, revealing a slight decline in net sales and gross profit year-over-year. Despite these challenges, the company maintained its EBITDA margin and showcased strong operating cash flow. Following the announcement, Adtraction’s stock price experienced a decrease of 4.92%, reflecting investor concerns over the company’s performance and future guidance. According to InvestingPro analysis, the company appears undervalued at its current market capitalization of 55.77M USD, with several positive indicators including a strong cash position relative to debt.

Key Takeaways

• Q1 net sales decreased by 3% year-over-year.
• Gross profit fell by 5% compared to the previous year.
• EBITDA margin remained steady at 3.7%.
• The company maintained a net cash position of 129 million SEK.
• Stock price dropped by 4.92% following the earnings release.

Company Performance

Adtraction Group’s Q1 2025 performance highlighted a challenging environment with net sales declining to 282 million SEK, a 3% drop from the previous year. The gross profit also saw a reduction of 5%, reaching 54 million SEK. However, the company managed to maintain its EBITDA margin at 3.7%, consistent with the previous year, indicating stable operational efficiency despite revenue pressures.

Financial Highlights

• Revenue: 282 million SEK, down 3% year-over-year
• Gross Profit: 54 million SEK, down 5% year-over-year
• EBITDA: 11 million SEK, with a 3.7% margin
• Operating Cash Flow: 25.7 million SEK
• Net Cash Position: 129 million SEK

Market Reaction

Following the earnings release, Adtraction’s stock price fell by 4.92%, closing at 32.5 SEK. This decline positions the stock closer to its 52-week low, with a notable -26.56% total return over the past year. Despite the challenging market performance, the company maintains a significant dividend yield of 6.15%, offering potential value for income-focused investors.

Outlook & Guidance

Looking ahead, Adtraction aims to return to growth in 2025, with a focus on stabilizing market conditions and potential growth through its existing customer base. Analysts on InvestingPro expect the company to return to profitability this year, with revenue growth forecast at 4%. However, the company acknowledged that its Q2 growth forecast is at risk, citing challenges in the finance market segments and regulatory changes impacting the consumer credit market. Get access to the comprehensive Pro Research Report for detailed analysis of Adtraction’s growth prospects and risk factors.

Executive Commentary

CEO Simon emphasized the company’s commitment to growth, stating, "Back to growth is the main goal for 2025." He also highlighted the structural growth trend in e-commerce and the company’s strategic focus on partner marketing as an alternative to Google’s dominant presence.

Risks and Challenges

• Regulatory changes in the consumer credit market may impact financial performance.
• Continued pressure on the finance segment could hinder growth.
• The competitive landscape, particularly Google’s influence, poses challenges.
• Market stabilization is uncertain, affecting short-term growth prospects.
• Potential integration challenges with AdRecord could affect operations.

Q&A

During the Q&A session, analysts probed the company’s performance in the finance segment, which showed weakness in April. Management expressed optimism about tracking improvements that could recover lost sales, while also acknowledging the positive trends in e-commerce and the regulatory uncertainties in the Swedish consumer credit market.

Full transcript - Adtraction Group AB (ADTR) Q1 2025:

Simon, CEO/Founder, Attraction: Hello, and welcome to the presentation of attraction first quarter results. If you have any questions, please post them online and you’ll get some answers after the presentation. So let us jump straight into the first quarter. The big story here is that ecommerce looks better. We’re showing growth that is support supported by ad records growth, but we’re also seeing organic growth.

The finance market has been challenging. We’ve seen negative growth rates throughout the quarter. Attraction remains profitable. This is a big focus of ours. We need to deliver profits every single month.

That’s how we run the company. We’re also delivering very strong cash flows. We’ve done a number of things to try to improve, the cash flow, throughout the year. The at record migration has been finalized from an organizational point of view. Everyone from At Record knows what they’re doing, what their goals are, and, we’re very happy with that process.

Chlorealon was divested March. And of course, that still impacts our growth rates. So we see an impact on the growth rates for q one because of Chlorealon. Our focus is to get back to growth. This is the number one goal for our entire company this year.

And speaking of growth, we said in the last quarterly report that we expected to return to growth in the second quarter. The reason we said this was because we saw a positive trend with good performance in e commerce, stable performance in fine months and actually positive growth rates in March. Then something happened in April. We saw a drop in performance for our finance campaigns, and we are no longer comfortable guiding towards growth in the second quarter. I will say that the April looks a little bit better than the April.

And I think that this development may be due to temporary effects in April, but we’re not comfortable sticking to our growth forecast. So if we look at April, we’re seeing similar growth rates as in Q1. We think that we’re gonna do things differently in 2025 versus 2024. A big thing that’s happening is that we have a new offering. So we’re doing different service levels called basic growth and premium.

And if you’ve looked at our website, you’ve known that we’ve talked about those levels, for a while. But this year, we’re going to implement those, service levels both for existing and new customers. This is, of course, a big project. We have a lot of customers, but this is something that we will focus on implementing now that we’ve integrated a record. We have a new organization.

So last year, we made a lot of improvements on the tech team and on the commercial side. Attraction has local presence in 12 different markets. We have new country managers in five of those markets, and they are, of course, eager to implement their ideas and strategy and deliver great results. So I’m very confident in our current organization. Adrekord will be fully integrated in the second quarter.

There’s still traffic running on AdRecord’s platform that will be migrated to Attraction’s platform before the end of the quarter. As a matter of fact, that is expected to happen fairly soon. And once that has happened, Dreckers platform will be shut down. There’s no more Clot alone in the base numbers for Q2, so we will not talk about that starting from the next report. I will also like to say I would also like to say something about about tracking.

I think that we are working with a beautiful business model, a great business model. And the reason I say that is that brands pay based on the value that they receive and partners get paid based on the value that they deliver. Now this assumes that we have a functioning tracking and a good tracking. And we’ve had that since we started the company in 02/2009. We’ve continuously improved and updated our tracking model in response to regulatory and technical changes.

And I think that over the past eighteen months or so, we’ve seen a more challenging tracking environment. And this is mainly related to privacy things and cookie consent and some settings that certain brands do related to these things. The net effect is that we’re losing some sales, and this is not good. So we’re looking again at our trucking model, and we should expect an update of that fairly soon. And I think it’s important for all participants in the value chain that tracking is working correctly.

Needless to say, it is important for attraction because we want to sell. It’s very important for partners to be fairly compensated for their traffic. And actually, would argue that it’s important for brands also because if tracking is not working properly, then brands will not make correct budget allocation decisions. So just let me be clear here. Our tracking is working, but we are losing some sales.

And because of that, we will do some updates and that’s happening fairly soon. We’re also implementing a new CRM system. And the basic idea here is that we want to improve our account management, we want to improve our sales processes, and we want to improve cross border collaboration. And the reason that I mentioned this is that this is a big project. It’s a bit of investment also, not a huge investment, but it’s going to cost us something, and we expect great results from this effort.

So the new system CRM system will be in place towards the end of q two. Going into 2025, I think most people expected stronger markets and a stronger macro environment. I I would say that there’s more uncertainty about that now. There’s more uncertainty about that now, but I I think the general expectation is for markets in Europe to grow going forward. Attraction also has a new board of directors or at least half the board of directors is new.

So Max Hager has been on the board since 2021. He’s now stepping up as chairman of the board. He’s been a shareholder since 2018. Markus Bianval has been on the board since we started the company. Markus is one of the founders, and his current title is head of platform.

Arash Haikimi works for Nia Partners. Nia owns seven or 8% of attraction, and Arash also has a private holding of 50,000 shares. So Arash has been super helpful to us in helping us with investor relations, investor meetings, and investor presentations throughout the years, and we’re very happy to have him on board. Pele Petition is also joining attraction. He is an ecommerce expert.

He’s a digital marketing expert. He founded a company called OmniArk a couple of years ago, and he’s already proven to be a very useful and good speaking partner to us. So we would like to welcome Arash and Pele to our board of directors. I would also like to stop for a second and talk about, attraction’s management team. I will not go through this in detail.

I would just like to highlight basically two things. The first thing is that attraction’s management team has been on average thirteen years at attraction, which is a fairly long time. And even if you exclude, the founders from this group, Markus Bianwal, Christian Longbail, and myself, the management team has worked, around ten years for attraction on, average. So we have a very experienced team. We know what we’re talking about.

The second thing that I would like to highlight, and as you can see on this slide, is that the management team is very exposed to the success of attraction. We do own a lot of shares, we have a strong interest in the continued success of attraction. Continued success for attraction means growth, profitability and cash flows. So let us talk about those things. In Q1, we did not show growth.

This has been the story for a while here. We saw sales drop by around 3%, and we saw gross profit drop by 5%. Obviously, some of this is related to Lund. And I promise you, we’ll soon stop talking about Kerala Lund because that will no longer be on our books starting next quarter. Profitability in Q1 was around SEK 11,000,000 EBITDA.

That’s the same as last year and exactly the same margin as last year. Cash flow from operations were very good. We actually saw a growth of more than 1000%. Of course, we cannot continue deliver operational cash flow that’s stronger than our EBITA. That’s simply impossible to do over time.

But what’s happening now is that we are implementing processes to improve our cash flow and to make sure that partners can be paid quicker. And as a result of that, we’re moving cash flows between quarters. Andreas will talk more to this in his section of the presentation. If we zoom out, I think we can see a couple of things in the sales graph. The first one is that we grew for many years.

The second one is that there was a significant drop in 2024. And now you could possibly argue that things have stabilized. I think we can see the same picture if we look at gross profit growth, drop, stabilization. We are focused on growing our business going forward, and then there’s there’s a couple of reasons why we think that this is possible. I think the main reason is that only 10 to 15% of total commerce Europe happens online.

So there’s actually still a migration going on from from offline to online, and there’s a structural growth happening for ecommerce. Our customers are exposed to the structural trend, which means that attraction is exposed to this structural trend. And it’s not difficult to find forecasts for the European market indicating that we saw a drop in 2022, ’20 ’20 ’3, and then that growth is expected going forward. If you listen to attractions presentations before, you will know that we like to talk about Google, and we think that it’s a risky proposition for ecommerce companies to spend too much of their budget on Google. This is risky because Google is a monopolist that behaves like a monopolist.

Google can change prices at their will. They can shut down traffic at their will, and they can close down accounts at their will. There’s no doubt that Google is a great service, but it is indeed a risky proposition to put all of your eggs in one basket here. So we are suggesting to work more with partner marketing. So I am not the only person in the world who’s saying that Google is a monopolist that behaves like a monopolist.

A judge in The US found that, Google is running a search engine monopoly. Another judge found that Google is running an ad tech monopoly. The latter here is fairly fairly new. You can read about that, but it’s pretty clear that, Google is doing some pretty bad stuff. Europe European Commission agrees.

The European European Commission says that, Google is running a monopoly for a Google Play Store, and Google is running a monopoly when it comes to search. So we think it’s a bad idea to put all of your eggs in one basket, especially if that basket is an illegal monopoly, which is the case with Google. So the question is how will we grow? How will we grow that attraction? So before we talked a lot about m and a, we talked about opening up new markets and we talked about organic growth.

These things are still relevant. As you know, we do a little bit of M and A here and there. We did acquire ad record last year. We acquired ad service in 2023. Obviously, we have been hoping to do more than this, but the market simply has not been there.

It’s also been a while since we opened up a new market. The last market that we opened up was Italy in 2022. And we still want to open up new markets, but we want to do that when the timing is right. And as you know, we’ve been not showing organic growth in 2024. We still think that there’s a lot of stuff to do and growth can be viewed through a different lens and described in a different way.

So let us talk about that a little bit. The main case for growth is to grow with our existing base. This is actually what you’re seeing for e commerce in the first quarter. We’re growing organically for our existing base. We’re finding new partnerships to our existing customers.

We’re adding new partners constantly, and this results in growth in a good market. We also want to increase market shares, of course. That means that we need to win accounts from competition. But above all, it means that we need to add more companies into the wonderful world of partner marketing. So we’re constantly working.

We’re trying to win new business. We want to grab that Google budget for the reason that I just explained. So it’s not wise to spend 60% of your budget on Google, move some of that to attraction or some other part marketing company that is a safer choice, I would argue. And, of course, we’re still interested in in m and a when opportunities arise. So this was just a different way of illustrating what it is that we’re doing.

We are not sitting idly by waiting for opportunities. We are working hard to achieve growth. So in my opinion, it’s a no brainer to engage in park partner marketing. The main thing here is that brands only pay for actual results or actual value is perhaps a better way of putting it. And brands also reach partners that they couldn’t reach without us and therefore reach consumers that they couldn’t reach without us.

So the strong the case for partner marketing is strong. And if I were contemplating running a partner marketing campaign for my ecommerce company or my finance company, I would look for three things. I would look for optimization. That is how can I make sure that I get the right volume at the right price? How can I make sure that the quality I get is the right one?

That that means the quality of partners and the quality of traffic that they send. And how can I make sure that I work with the right partners in terms of distribution? How can I make sure that I reach the right consumers? Of course, attraction has some answers to all of this. We work with active partnership management.

That means that we identify the right partners, we set the right volume expectations, and we help find the right pricing. We work with quality partners. So if you look at our partner base and compare that to basically any other network, you will find that we have a much smaller number of partners. But you will also find that the average quality of our partners is much higher. The reason is that we continuously scrutinize our partner portfolio and reject partners that do not live up to our quality criteria.

Smaller network, but much better. Finally, we are all about local presence in our European reach. Because we are locally present in our key market, we can work with the right partners. So this is the reason that brands should choose attraction. You also know that I like to talk about, the number of employees.

In in in some way, this is a reflection of the on underlying dynamics in the business. And what’s happened here, you know, just looking back a little bit, here, what what has happened is that we have, grown for a long time. Then in in q one twenty three, we, acquired ad service. As a result of that combination, some people chose to leave our group. And then, in 2024, we did some restructuring, and the number of employees was further reduced.

Then in q four last year, we acquired a record, and, of course, the number of employees increased slightly. In q one, we have hired a few people primarily in Europe. The cost base is stable, and it has been stable for a while. And with that, I will let Andreas talk for a little bit.

Andreas, CFO, Attraction: Alright. Thank you. And then we start looking at the numbers for the first quarter, starting with the net sales. It’s at 282,000,000, and that is a negative growth of 3%. Looking at gross profit, it’s 54,000,000, and that is a negative growth

If we here exclude the vertical other and only look at the core business, we’re at par with last year. You can also see that we haven’t disclosed the acquired versus organic growth, and this is due to the migration of the customer base from the ad record platform to ad traction, which makes it hard. But as a proxy, we did say in the fourth quarter that KlaraLoan and ad record is roughly the same size when it comes to gross profit, and you can use that to make some assumptions. When it comes to EBITDA, it’s 10,600,000.0. It’s the same as last year and an EBITDA margin of 3.7%.

Like Simon said, we have a stable cost base. And looking forward, that is also what we expect with a slight decrease in the second and third quarter due to some seasonality effects with Vacation Pay. When it comes to the adjusted net result per share, it’s at 0.49 Swedish kronor, and that also is at par with last year. Looking at the verticals, starting with ecommerce, we can see that we’re definitely moving in the right direction here. It’s 32,600,000.0 in gross profit, and that gives us a 10% growth.

We’re also growing on seven out of our 12 markets. Looking at finance, it’s a 20,900,000.0. That is 14% decrease. We can see more general negative growth across markets here. And, of course, we are working really hard to turn this around.

And in the other vertical, we can see the effects of the divestment of Klara Loan. We have 400,000.0 in gross profit left here. In The Nordics, 40 Million in gross profit, that is a 5% decrease. And also here, if we exclude Kralon and other, we can see a growth of 2%. And we’re growing on two out of four markets, those being the bigger ones in Nordic, Sweden and Norway.

And in Europe, we have 13,500,000.0 in gross profit, that’s 7% negative growth. And we paint two different pictures here. We can see growth on most of European markets within e commerce, and the opposite is true for the finance vertical. Then looking at the cash flow from a longer perspective, we can see that we have had really good results in the operating cash flow in the last three quarters. We’re working very hard, continuous improvement of the working capital.

And effectively, we have also shortened the cash conversion cycle, which then means that partners also will be able to get paid faster, being able to reinvest in our platform. We expect the partner payments to be bigger in the second quarter due to this and thereafter moving towards more normal seasonality patterns, so to say, from a historical perspective. Looking at the different parts of the cash flow and starting with the operating cash flow, we have 25,700,000.0 in operating cash flow. Of course, a very strong quarter. We don’t have any investing activities in the quarter and the financing activities.

We made a small dividend payment to a minority holder, and that gives us a total cash flow of 25,300,000.0 in the quarter and a very strong net cash position of SEK 129,000,000 ending the quarter. Then I give the mic back to you.

Simon, CEO/Founder, Attraction: Thank you very much. So in the last quarter, we talked about some new regulation for the Swedish consumer credit market, and I’d just like to comment a little bit on that and what has happened from our point of view. So one law said that interest cost would no longer be tax deductible for certain loans, and the right to do so is being gradually phased out. We did not see a big impact because of that. And in March 2025, an interest rate cap of 20% was introduced and also a cost cap.

And we did some see some effect of that. What we what we said in the call was that we expected a decrease in attraction’s total gross profit of a couple of percentage points. This is what happened. I think that the general performance of the finance sector has been more important than this regulatory change, actually. Then there’s some other stuff going on.

We already talked about this a little bit in the last call, but I will mention it again. So what is being proposed here is that starting in July 2025, everyone needs to be back. They don’t need a license by then, but that’s when the law is supposed to to be in effect. Parliament will vote about this by the May. The person who’s driving this process is Niklas Wieckmann, his minister for financial markets.

And what’s going on here is actually a little bit strange. Mister Wieckmann is disregarding the opinion of the council on on legislation, which is Law Groddet. And and what is doing is essentially saying if if a proposed law is good in relation to other laws and, you know, if in general, it’s a it’s a good law. And what’s what’s happening here is that Law Grodder is saying that it seems a little bit weird that brokers need a banking license. And we couldn’t agree more.

That is indeed a strange proposal. And I think what’s extra strange here is that it’s not exactly clear what the broker is. Well, for sure, the brokers who are brokers probably are brokers, so to say. But but then there’s some other types of sites, for example, white label sites who collect leads for banks. Are they now required to have a banking license?

To me to us, that is a little bit unclear, and I think it’s unfortunate that the Swedish parliament seems to be passing poor legislation like this. But it is what it is. I think in summary, attraction has a role to fill no matter what happens because there’s gonna be a demand for credits, and there’s gonna be supply of credits. And we have a role to fill when it comes to matching consumers with the right loan providers. So we’re not worried about this.

We are, however, a little bit surprised about how laws are being made and completely unreasonable things are are are becoming law all of a sudden. So finally, I would like to talk a little bit about our expectations going forward. The first thing that will happen is that the track sorry. At record will be fully integrated in attraction as of q two twenty twenty five, and the At record platform could be closed down fairly soon. We are working with a broader advertiser portfolio and a broader service offering, the one that I talked about initially.

Back to growth is the main goal for 2025. And like I said before, the q two growth is at risk for the reason I mentioned. And there’s I already know that there’s some questions about this, so we’ll get back to this topic. So let us see what questions there are. And there’s actually quite a few questions here, and we’ll just get started here and see where it takes us.

So here’s a question. In the finance segments, have you seen the same effect on all markets at the same time at the March, and how was the finance segment in those markets before until the last weekend in March? So what what’s going on here is that we have a couple of very important finance markets in in attraction, and those are mainly The Nordics, Spain, and to some extent, Germany. And we’ve seen poor performance across all of those markets. And that was at the the performance in q one was fairly stable, and then we saw a decrease in April.

We saw a decrease in April, and that is perhaps to some extent related to to to one off effects. There’s a lot of things happening at the same time, and perhaps there’s a there is a possibility to to recover. But because we don’t know that, we’re not comfortable sticking to a growth target in q two. Here’s another question. You’re increasing headcount with five people this quarter, and you have several positions open in April.

What’s your view on continuing increasing headcount before a clear market turn? Well, I I’d say that these recruitments primarily are related to ecommerce, and we’re see we’re seeing a stronger development in ecommerce. So to some extent, we are acting because we see a stronger market. Here’s a very specific question. What’s your view on activity in in the m and a market?

Any interesting bankruptcies to look at after after the tough market? And I think that the the person who’s asking this question is well aware that there are things happening in in in the market. There is a German company called Bell Boon, which is under under insolvency process. And what’s going on there in in my opinion, at least what what I’ve read, is that Balboon itself was performing and delivering profitability. But Balboon was owned by a private equity owned holding company that was unable to service its debt when it comes to amortization interest rates.

And and because the holding company was in trouble, that put Balboon in a difficult position. And I probably do not expect attraction to have play an active role in in in that process. Then which month did you start start to see weaker performance in the finance segment? Well, I think that, you know, you see the performance in the finance segment in in in in in in q one as we have reported, and our assumption was that this this would continue. It turned out that performance was a little bit worse in April.

And, again, the April was worse than the end of of April. Is the weak performance in the finance segment a consequence of lower demand for loans from consumers or approval rates from lenders? Well, I would say neither. There’s the demand. There’s a there’s a nice approval rate going on from lenders, but what we have seen is a shift of products.

So people are introducing other products. They are pausing campaigns because they want to change something in their offering. There’s a lot of stuff like that happening in in April. So, actually, I wouldn’t say that the the demand is lower or that the approval rate is lower. I would say that the from a macro point of view, there is, of course, more uncertainty in the economy.

11 price gross profit with an income seems solid even if that record is is helping there. Is this mainly due to lower figures, or are you seeing an increased customer activity? Well, I would say both. You know? So the base numbers are is is better, but we’re also seeing an increased activity.

I think we have done that for a while, but it takes a little bit of time to pick up pace. So ecommerce growth is both organic and helped by by a record. And then we have a question about, can you put some color on the split for growth within ecommerce between existing customers and new customers. And, clearly, you know, the growth that we’re seeing is from existing customers. So we’re constantly trying to win a new account, but attraction is a fairly big company.

So we need to win a lot of accounts before we see a significant change in our sales and gross profit. Of course, over time, this will happen, and it does happen because we’re continuously saying, but the effect that we see right now is has more to do with the existing base. How high visibility do you have into the advertisers marketing budgets and that they’re planning to spend on on attractions platform? Well, that’s gonna vary from from customer to customer, of course. And what we see is that, as far as we know, they continue to to spend on on our platform.

And if anything, like I said before, we see increased activity. And now there’s a question for Andrea, so you won’t won’t have to listen to me for him. And the question is about currency.

Andreas, CFO, Attraction: Right. Can you say something about how much currency fluctuations affect you in the quarter? And then surprisingly, from a growth perspective, it hasn’t affected as much because the Swedish krona was relatively strong throughout the full quarter of the first quarter twenty four. So from growth perspective, marginally, we expect that to be more relevant in the second quarter as the Swedish krona was weak ’24 versus probably strong in the second quarter this year if nothing extraordinary happens again. Yeah.

Simon, CEO/Founder, Attraction: Alright. Thank you, Andreas. How how much do you expect to increase the number of conversions as the direct consequence of your tracking initiatives? 1%, five %, ten %. Well, we’re we’re not stating a number at this stage.

What I will say is this. It’s not gonna be more than 10% because there’s there’s sort of that’s not much how much we’re we’re currently losing. We’re not gonna give a guidance on this. I think we’ll get back to this once we have presented and implemented the solution. But, clearly, there is there is some sales to fetch here.

Alright. So we have some more questions from the feed, so let us get into that. Did I understand correctly that finance showed similar growth rates in April as in q one? No. So finance was worse in in April than in q one.

That was the surprising things. We we expected sort of the same development as in March, but then it turned out to be a little bit worse in April, and that was the surprise to us. Then we have the same question of Jen. How how much of your lost sales do we expect to to recoup from your updated tracking? We’re not gonna state a number here.

At some point, we probably will. At some point, we probably will, but we need in in order to to to answer that question in a good way, we need to monitor what happens. Will the updates on your tracking have a positive net effect on your net sales, or is it more on an issue to take you back to normal? Well, that’s sort of the same thing, isn’t it? So I think the net effect is that we’re hoping to increase sales a little bit as a result of this.

But this is in a in a way, this is more of a doing what’s right and doing what’s fair. Could you explain what you hope to achieve with your new CRM compared to before. Well, you know, of course, attraction had a CRM system before, and we’ve worked with that system for many years. What we’re doing now is a tighter integration with our platform. So we will collect data from our platform, put that into the CRM system, and then, we will base our actions in the CRM system on what’s in our platform.

That means that we’re gonna have certain service levels, so depending on the performance of partners and and customers. We will be happy to talk more about this once it’s been implemented. The reason that I mentioned this now is that that it’s a big project. It’s it’s gonna cost something, and it’s going to require some resources from attraction.

What is the margin difference between ecommerce and finance? Well, in general, we’re so so here’s the thing. We don’t disclose that. We only disclose gross margin at the at the group level. What I can say is that in general, ecommerce margins are slightly better, and that’s because we have a long tail there where we operate with slightly higher margins.

We have more ecommerce customers that operate with a high margins. So I think here’s here’s one more question. How much week weaker was April compared to the first quarter was a single digit decline. So, you know, April April was in line with q one totally. That’s what we can say now.

Or or or it seems like that when we’re looking at numbers. And, course, we have we do have a lot of data, so that’s what it currently looks like. So April was in line with q one from a growth perspective. I think that’s it. Let me update again.

Thank you everyone for your interest and and all the questions, and see you next time.

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