Global Blue Group Q2 2024 Earnings Call Transcript

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Provided by Quartr
November 28, 2023

Key Takeaways

  • Global Blue reported a 38% year-on-year increase in Q2 revenue to €113 million and lifted adjusted EBITDA to €47.2 million (versus €25.8 million last year), while H1 revenue jumped over 50% to €208 million with adjusted EBITDA of €75 million.
  • The group secured a €100 million equity investment from Tencent for a 7.6% stake, underscoring confidence in the ongoing travel recovery and providing proceeds to accelerate deleveraging.
  • All existing debt was refinanced into a €610 million term loan B and a €97.5 million revolving credit facility, extending maturities to 2030 and achieving B1/B+ credit ratings from Moody’s and S&P.
  • Management reiterated full-year fiscal 2023/24 adjusted EBITDA guidance of €145–165 million and affirmed a target of over €200 million for fiscal 2024/25, driven by strong recovery in Chinese and other key markets.
  • Operationally, Tax-Free Shopping revenues grew 38%, with Mainland Chinese shopper spend at 109% of 2019 levels, while digital adoption and client retention remained robust (99.4% TFS retention, 98.2% EVPS retention).
AI Generated. May Contain Errors.
Earnings Conference Call
Global Blue Group Q2 2024
00:00 / 00:00

There are 2 speakers on the call.

Operator

Good morning. Good afternoon. I am Jacques Stern, CEO of Global Blue and I'm with Roxanne Dufeau, the CFO of the group. And we will comment today the Q2 figures for the financial year 2023 2024. Before letting the floor to giving the floor to Oksan, let me give you an overview of this presentation.

Operator

First of all, you will see that Q2 and H1 financial result have shown a significant increase, both in terms of growth and profitability. And this is driving a continuous improvement of the annualized quarterly adjustment EBITDA to €142,000,000 Roxanne will come back in detail on that. 2nd, in November, Global Blue has concluded 2 important capital structure transaction. The first one, whereby Tencent have agreed to invest EUR 100,000,000 in Global Blue, consisting in 50% primary and 50% secondary for a total stake of 7.6%. This is significant because, 1, it validate our leadership second, it reflect the confidence in the ongoing travel recovery, in particular from Chinese and finally, it support the delivery the deleveraging of the company.

Operator

2nd transaction is the refinancing of all of our debt, which end up with a new facility of €610,000,000 qualified term loan B and a new FCF of €97,500,000 And there also it's significant because it extend the maturity of our debt to 2,030. Last but not least, following the reporting of Q2, we are pleased to reiterate our financial guidance of the adjusted EBITDA for the fiscal year 2023 2024 to 145,000,000 to 165,000,000. So with this overview in mind, I now give the floor to Roxanne for a detailed presentation of the Q2 financial year.

Speaker 1

Thank you, Jacques. I'm Roxanne Dufour, the CFO of Global Blue and I will take you through the group's financial performance for the second quarter and half year period ended on the 30th September 2023. Again, as a reminder, our financial year runs from April to March. Hence, this is our Q2 and H1 results announcement. Our reconciliation to the nearest IFRS metrics are included into the appendix.

Speaker 1

Let's move to slide 8 for the adjusted P and L related to our Q2. We are pleased here to report a solid start to the year with significant progress against all of our key metrics. TFS and AVPS reported sales in stores increased by €2,000,000,000 an increase of 42% versus Q2 last year. Group revenue increased by 38% to €113,000,000 versus the same period last year. Turning to adjusted EBITDA.

Speaker 1

We have delivered a significant improvement to €47,200,000 versus €25,800,000 in the same period last year. Finally, we recorded an adjusted net income for the group of €14,000,000 again, a significant improvement versus negative of €2,100,000 in Q2 last year. Let's turn now to slide 9 to go into the revenue performance. Here you can see that we have a solid start to the year with strong growth across the business. We delivered a 38.2% increase in revenue versus last year.

Speaker 1

I will go into the detail per division on the following slides, but you can see here for TFS, AVTS and RTS that they have contributed to a further €31,000,000 in revenue in the period with a further €1,700,000 scope effect from TFS new countries and cheaper acquisitions reported under RTS. We then have €1,700,000 impact related to the FX, which gets us at the end to €113,200,000 of revenue in Q2 this year versus €82,000,000 in the same period last year. Turning now to the revenue performance per division. Starting with TFS, accounting for 76% of group revenue in Q2 this year. TFS delivered a strong performance with an increase in revenue of 38% on a reported basis to €86,200,000 On a like for like basis, revenue in Continental Europe increased by 28.5 percent to €75,000,000 while revenue in Asia Pacific increased by 155 percent to €11,200,000 This strong performance reflect the ongoing recovery across all origin nationalities with the reopening of Chinese border in January 2023 being the key driver of the revenue improvement, especially in Asia where sales in store of shoppers from Mainland China has already recovered to 109% versus 2019.

Speaker 1

Jacques will cover this into more detail later. Turning now to EVPS. EVPS accounted for 18% of group revenue in Q2 this year. This division also delivered a strong performance with an increase in revenue of 32% on a reported basis to €20,200,000 reflecting a strong performance across both business segments. On a like for like basis, revenue in FX solution increased by 39% to €10,400,000 while revenue in the acquiring business increased by 42% to €10,000,000 As with TFS, EVPS is also benefiting from the ongoing recovery in the travel industry.

Speaker 1

Turning now to RTS. RTS accounted for 6% of group revenue in Q2 this year. As a reminder, TFS reflect the acquisition of Zig Zag in March 2021, consolidation of Yogoda in 7, 2021 and the acquisition of Shipup in November 2022. Here you can see RTS revenue increasing by 65% on a reported basis to €6,700,000 in Q2 this year. There was a strong organic growth of 39% from Zig Zag and Yokuda and an additional €1,100,000 from the acquisition of Ship Up.

Speaker 1

Turning now to Slide 13 for the bridge from issued Sys to revenue. This is here the bridge detailing a number of items to consider between the issued Sys to the reported revenue. Here we are showing the comparison versus calendar year 2019. We are at 124% recovery for issued sales in store in TFS and AVTS. The issued SIS is presented on a like for like basis, meaning at constant parameters.

Speaker 1

Then we consider the scope effect, one for the UK related to the abolition of the tax rate shipping scheme in January 2021. And as a reminder, prior to the abolition of the scheme, the UK accounted for 14% of group TFS reported fees, which is no longer the case here. The impact from the UK abolishment is 18 points, then you have a further impact of 5 points due to the FX translation and one point related to the discontinuation of our TFS business in Russia, which give us at the end 100% recovery in issued fees in TFS and ABPS reported 1 with CFS at 94% and ABPS at 130%. We then have the refund ratio. As a reminder, once the transaction is issued, the traveler has to validate the TRACS reform and get the refund.

Speaker 1

At this point in time, the transaction is part of the reported fees, which triggers the revenue. Today, the actual refund ratio is slightly lower than 2019, but it's mainly due to the nationality mix effect. Then there are transactions completed of period. This is where transactions are issued in a quarter but validated and refunded in the following quarter. This gets us to a 102% recovery for completed SIS in CFS and AVTS.

Speaker 1

Then we have some leakage from this completed SIS to the reported revenue. 1st for TFS, we have a merchant mix effect where there has been an increased level of business with larger merchants who get a higher rate of commission. We then have an increase in average spend, which means a higher rate of VAT that is refunded and therefore a lower take up rate for Global Blue. 2nd, we have the AVPS mix effect where the AVPS business, which is a lower margin, is growing faster than TFS. This give us 87% reported revenue recovery for AVPS and TFS.

Speaker 1

Finally, we have 5% contribution for RTS, which give us 92% revenue recovery for the group. Turning now to slide 14 for detail on adjusted EBITDA. The significant improvement in revenue together with the ongoing focus on the cost base led to an 83% increase in adjusted EBITDA in Q2 this year. We have a revenue drop through at 68% and I will take you through the detail here. We begin with our adjusted EBITDA, which was €25,800,000 in Q2 last year.

Speaker 1

And then if you look at the additional contribution of each business, contribution being the marginal revenue minus the marginal direct variable cost, we have a further €25,000,000 in Q2 this year. Then considering €2,500,000 of fixed cost, €500,000 of scope effect and €400,000 of foreign exchange impact, the group delivered an adjusted EBITDA of €47,200,000 with an increase in adjusted EBITDA margin of 10 points to 42%. Turning now to slide 15 for further detail on adjusted EBITDA. Here we are showing the annualized adjusted EBITDA based on the quarterly recovery. Just to note, the yearly extrapolation include TFS, ABPS and RTS performance in the various quarter applied to the year.

Speaker 1

Previously, we had excluded RTS from this calculation, now it's included. You can see here a steady and consistent improvement in the annualized quarterly adjusted EBITDA. Now based on the Q2 recovery, the annualized quarterly adjusted EBITDA is at €142,000,000 This has led to a significant improvement in margin from 27% in Q2 last year to 34.8% in Q2 this year. Now I will take you through the financial detail for the first half of the year. Slide 17.

Speaker 1

We are showing the adjusted P and L for the first half of the year and again we see the same positive trends as with the Q2. TFS and EVPS reported sales in store increased by €4,500,000,000 an increase of 55 percent versus H1 last year. Group revenue increased by more than 50% to €208,000,000 versus €138,000,000 last year. Turning now to adjusted EBITDA, we have delivered a significant improvement to €75,000,000 versus €32,600,000 in the same period last year. Finally, we reported an adjusted net income for the group of 16 €1,000,000 a significant improvement versus negative €13,700,000 in H1 last year.

Speaker 1

Turning now to Slide 18. Here, similar to Q2, we are showing the detail for H1 where we achieved 130% increase in adjusted EBITDA in H1 this year with a 61% revenue drop through in adjusted EBITDA versus the same period last year. Starting with our adjusted EBITDA at €32,600,000 last year. If we look at the additional contribution of each business, we have a further €54,000,000 in H1 this year. And then considering €8,900,000 of fixed costs, €1,600,000 of scope effect and almost €1,000,000 of foreign exchange impact, the group delivered an adjusted EBITDA of €75,000,000 with an increase in adjusted EBITDA margin of 12 points to 36%.

Speaker 1

Now moving to slide 19 for the D and A net finance cost. There has been a slight increase in adjusted EBITDA to €17,900,000 in the period. On an annual basis, this gives us a D and A of €36,000,000 which is in line with our current level of CapEx. Then to the net finance cost, cost increased by €800,000 to €24,600,000 and this was mainly due to an increase in interest cost of €12,000,000 versus last year due to an increase in interest rates from 2.81 percent to 6.05 percent associated with the senior debt and revolving credit facility. This was largely offset by the other finance costs decreasing by €11,000,000 and as a reminder in H1 last year, we've been impacted by the foreign exchange losses related to Serta has not head equity transactions and the supplemental shareholder facility that were denominated in USD while Global Group report in euro.

Speaker 1

Now let's move to slide 20 for an analysis of our cash flow statement. After an adjusted EBITDA of €75,000,000 and a level of CapEx at about €80,000,000 in the period, this is the CapEx are essentially related to technology development. Turning now to working capital. Being in the peak period of CFS activity in the first half of the year, we usually see an increase in our working capital during this period. And as a reminder, the travelers, they get refunds upfront and about 2 months later, we collect the VAT from the merchant or the authorities.

Speaker 1

Here you can see that we have an outflow of €39,200,000 for the period, but there will be a tailwind during the Q3 of our fiscal year. The interest related to our senior debt for the last 6 months paid in May 2023 has also impacted the cash flow by €19,600,000 And finally, our net financial debt increased by €18,700,000 versus March 2023. Turning now to slide 21 for the debt position. As of end of September 2023, our net financial debt amounted to €568,500,000 including cash and cash equivalents of almost €222,000,000 Nevertheless, knowing the recent events, I propose to jump directly on the next slide. As mentioned by Jacques in the introduction, we recently completed a $100,000,000 strategic investment from Tencent, a world leading Internet and technology company.

Speaker 1

Tencent agreed to invest CAD100 1,000,000 in global global common equity at a price of CAD5.5 per share, generally in line with the volume weighted average price over the previous 3 months. The common shares will consist of 50% primary common share to be issued by Blue by Blue, the proceeds of which will be used to deleverage the company and 50% secondary common shares to be sold by affiliates of Silver Lake and Partner Group and certain member of Global Blue Board and Management. This represents 18,200,000 common shares, implying an ownership in Global Group that will be approximately 7.6 percent of the total issued share capital on a fully diluted basis upon completion of the transaction. This agreement reflects confidence in the ongoing travel recovery and support the long term leverage target of below 2.5 times net debt over adjusted EBITDA. Turning now to slide 23 for detail on the refinancing.

Speaker 1

Our senior debt and revolving credit facility at the maturity date of August 2025, earlier this month, we took the opportunity to renegotiate our senior debt to strengthen Global Blue balance sheet. The new agreement, which was signed on the 21st November, is comprised of a term loan of €610,000,000 and a revolving credit facility of €97,500,000 with maturity extended to 2,030. The term loan has a variable rate equal to a rebar for the period, plus a spread of 500 basis points per annum, while the revolving credit facility has a variable interest rate equal to a rebar plus a spread of 4.50 basis points per annum. In that context, 2 public rating have been issued to Global Blues with Moody's and S and P attributing B1 and B plus respectively. Turning now to slide 24, we show the pro form a net debt.

Speaker 1

So this is here the net debt position for H1 as if the financing was in place With the RCF undrawn and the supplemental shareholder facility fully repaid, that leaves us with a gross financial debt of €610,000,000 on a pro form a basis. Then we have €48,000,000 of cash and cash equivalent, which leave us at the end with a pro form a debt of €562,000,000 Turning now to slide 25 for the key takeaways. First, we are pleased to report a solid recovery with a significant increase in H1 revenue of more than 50% to €208,000,000 2nd, thanks to the strong revenue growth and ongoing management of the cost base, we are pleased to report a strong improvement in H1 adjusted EBITDA to €75,000,000 with an increase of 130% of that reported last year and with a revenue drop through of 61% in adjusted EBITDA. On that basis, if we annualized the adjusted EBITDA based on the quarterly performance of our business, there is an acceleration in H1 at €142,000,000 We then have the €100,000,000 equity investment from Tencent, which validates confidence in the ongoing travel recovery and support our delivery regime target. Finally, to further strengthen the balance sheet, the group refinanced its total indebtedness with a senior debt of €610,000,000 and a revolving credit facility of €97,500,000 in place until 2030.

Speaker 1

So this concludes the financial section and I will now hand over to Jacques to present the latest trends and the long term growth driver for Global Group.

Operator

Thank you, Roxanne. So let's start by the latest trends, and namely October for the tax free shopping business. So you see that October 2023 is broadly in line with Q2 with a like for like performance of 123%, which reflect one side a slight decrease of the recovery in Europe at 115%, and on the other hand, a strong momentum in APAC at 147% versus 134% in Q2. If we go to the detail analysis of Europe, Continental Europe, you can see that the performance of October reflect a recovery of 91% of international shoppers, but an increase of the spend of 26%, which end up with this 115% recovery in terms of spent. If we go to the detail per nationality coming as a destination in Continental Europe, You see that if we exclude Mainline China, which is on the course of recovery in Russia for the reason that we know, the subtotal of all the other nationality is broadly in line in October versus Q2 at 154%.

Operator

And I will have a detailed slide on the U. S. In the coming second. But important to note that we have the bond backs of the Gulf countries at 241 percent and the rest of the nationality are broadly in line with Q2. If we look to China and I will have there also a slide in the coming minutes, we see a slight acceleration at 52% in October versus 45% in Q2.

Operator

Couple of slide in order to understand the U. S. Shopper recovery and assess the status, you see that October show basically a very stable situation at 2 60% recovery versus 258% recovery in Q2, which translate one side an increase of 162 percent of recovery for the number of traveler, but also an increase of the spend of 60%, which end up to this 2 60% recovery in terms of spend. When we try to detail per consumer type performance of 2 60%, you can see in this slide where we have basically compare the consumer who are shopping in each of these periods. So H1 'twenty two, H2 'twenty two, H1 'twenty 23 and Q3 'twenty three with the amount that the same person with the same passport number was spending in 2019.

Operator

You can see that basically the more affluent or wealthy you are, the more you tend to increase your spend. So I give you an example. If we take Q3 2023, you see that for consumer spending more than €20,000 with Global Blue, the increase of the spend is a multiplier of 3 times versus 2019, where if we look to the segment below affluent, which are spending more than 3,000 less than 20,000, you see that the multiplier is 1.9 and the rest, I. E. Below 3,000, the multiplier there is below 2019, 0.6.

Operator

So in average, 60% increase with a multiplier of 1.6. But I think what is important to see here is that the trend has been very, very consistent, including in the last quarter as you see that the main figures are really stable. So in summary, the U. S, we are seeing no change and in particular for the more VIC or high networks individual where the spend is still very strong. If we turn now to the Chinese, as the nationality of origin coming to Europe, Continental Europe as a destination, we are seeing that in October, a slight increase to 52% level of recovery versus 45% in Q2.

Operator

And you can see on the right that this is translated into a recovery of 39% in terms of shoppers with an increased spend of 33% ending up to 52% tax free spent recovered. Worth to mention that linked to the lead time required for VJ issuance, but also the absence of group travel. Until now, we have seen that the international shopper recovery is below the air capacity. But those 2 roadblocks should unwind, I would say, in the coming months, in particular, the group travel, which are expecting to return by the end of this calendar year or the beginning of next year. When we look to the same chart that I've shown to the U.

Operator

S. For Chinese coming in Europe, you see that we are seeing the same element. So I remind you, same people with the same number of passport who have shopped during the period shown here versus 2019. And there also we are seeing like American that the more wealthy, either one spending more than 20,000 are at the multiplier of spend versus 2019, which is the highest 2.5x in Q3. And there also, we see a very strong consistency in the data in the next in the last 18 months.

Operator

Turning now to APAC as a destination. We see that October have shown a continuous increase of the recovery that 147% versus 2019 versus 134% in Q2. And there also, we are seeing a very strong increase of the spend with 34%. But we see there that the level of international shopper recovery have now reached the level of 2019 with even an increase of 110% versus 2019 in terms of number of shoppers. If we look to the detail per nationality and they're also excluding China as an origin country, you see that we see an acceleration in October at 189%, driven by citizen from Hong Kong, Taiwan, but also followed by Japan and Korea, so Northeast Asia, with 2 very strong set of results, well above 250% for those 2 nationality.

Operator

And if we look to Mainland China, we used to represent 56% of the sales in SO in 2019, We see a slight increase in October at 109% recovery versus 105% in Q2. Then also, if we go a little bit more in detail, we see that the level of recovery in terms of number of shopper is 47%, whereby where the increase in average spend is 132%, translated into this 109% in terms of tax free spent recoveries. So in summary, if we exclude Mainland China and Russia, we can see that the recovery in Continental Europe is well above 150% and almost at 190% now in APAC. And obviously, we still have China, which needs to continue to recover, which has started in APAC, where we reached 109%, but still around 50% in October. Why this is important, this recovery of the Chinese?

Operator

Obviously, because this drive further improvement of profitability for Global Group. You know this chart, just to remind you a few things. So as mentioned by Roxanne, our quarterly annualized EBITDA is now after Q2 reaching 142 percent EUR 42,000,000, which implied recovery in terms of China revenue of 40%. And this is to be compared to our top profitability on the calendar year 2019, where we reached €187,000,000 of EBITDA. And on the right, so on the green part of this chart, you can see the simulation of the Chinese recovery.

Operator

And if I take, for example, 125% recovery for the Chinese in the coming quarters Based on the more capacity of airline and also this fading of the roadblocks that I was mentioning in Europe with Travel Group and Visa, you can see that the group could reach more than €200,000,000 EBITDA, which I remind you is our guidance for our 2024, 2025 fiscal year, so over €200,000,000 So this would imply 105 percent recovery of the Chinese revenue. So let's turn now for few side on the recent achievement. Few things there to mention. 1st on the commercial front for tax reshopping, we are continuing to improve our market share. You see on the right couple of very significant names, which have gained in H1 'twenty three, 'twenty four, Bottega Veneta, Audemars Piguet, Lacoste, but also other brands.

Operator

And worse to mention that this strong gain, but also a very strong growth retention rate of 99.4% and up to a net retention for the last 4 years, including this H1 reset of result of 103%. So a gain versus loss, which is positive by 3% per year. So reinforcement of market share in tax free shopping, but also in tax free shopping, the continuing level of increase of digitalization, which you know is very beneficial in terms of increased penetration, which increase at the end the volume, but also in terms of cost. As you know, more digitalization in terms of refund out of the airport means also reduction of the cost. You can see here that the progress is in all fronts issuing.

Operator

We are almost now at 100% of digital issuing validation. H1 translate more or less the same level than last year. We have not shift any new country in terms of export digital validation, but few are on the pipeline. In terms of consumer engagement through our mobile customer care, you see that we continue to increase the coverage at 66% versus 62% last year. And digital refund out of the airport, you see also there an improvement in H1.

Operator

So continuous improvement in terms of digitalization. I will come back talking about the long term target in couple of minutes. And this is one of the key elements of our volume growth. Turning now to EVPS, so added value payment solution. There are also some very nice gain in terms of FX solution during H1, Poste Italiana for the ATM DCC management, but also PPEH in Japan, Scotiabank in Canada, BC, CPay in Italy and Worldpay in the UK.

Operator

They also, to mention, a very strong growth retention rate for the last 3 years in line with H1 at 98.2%, which translate into a net retention rate. So net gain and loss of 104.7%. Last but not least, to mention and to report the successful launch of the Global Blue Hospitality and Retail Gateway. In the last quarters, more than about 280 hotel, which has been rolled out with this new gateway. And during the last quarter, we have been able to sign 7 new acquirer adopting our gateway solution in terms of technology with names like Nexi, but also MondereBank, but also INZ and Nets and for which in the coming months, we will roll out this technology with new hotel to be signed.

Operator

It's already the case for Nexi and for GCC and Mondheri. It will be the case for Vesca, Maybank, Nets and ANZ in the coming months. On top of that, very pleased to report that we have on top of those 7 acquired signed, 16 acquirers, which are in the pipeline. So a very strong and successful launch of our Global Blues Hospitality and Retail Gateway, which are complementary to the DCCFX solution that we are setting to acquire. Let's turn now on the long term guidance and target.

Operator

So you know that we have released in September 2023 a set of guidance and long term target. I give you the highlight of that. 1st, and we reconfirm this guidance following Q2 reporting for the financial year 2023, 2024 and EBITDA guidance between €145,000,000 €165,000,000 In terms of next fiscal year, 2024, 2025,000,000 target of more than €200,000,000 EBITDA. And for the period post full, I would say, normalization and objective long term of revenue of 8% to 12% for the group with revenue to EBITDA drop through above 50% and CapEx, which for all the period are set to be between €40,000,000 45,000,000 of which 80% of capitalized software. Beside those P and L long term target, 3 other targets, which has been revealed in September.

Operator

First, that we confirm that in terms of net working capital, this should be neutral in the future, post 2025, 2026. In terms of effective staff trade, a rate of 24% to 26%. And as mentioned by Roxanne in Q2 presentation, an objective in terms of net debt to EBITDA below 2.5 percent, I. E. A priority on debt pay down in terms of usage of cash flow.

Operator

Few slides in order to give you a little bit more detail, especially on the long term target, I. E. Post 2024, 2025, which will still be a year of recovery with Chinese coming back in Europe and in APAC. So post this period, so starting in 2025, 2020 6, as mentioned, we have a target of growth of 10% to 14% in terms of sales in store for tax free shopping, broadly in line with the last 10 years figures just before COVID. And in particular, with strong objective beside market growth, 6% to 8% of contribution of new country between 1.5% and 2% contribution.

Operator

Digitalization, so more penetration of our solution, thanks to digitalization, 2% to 2.5% growth and finally, a net retention of between 0.5% and 1 point 5% contribution coming from net gain from clients in TFS. And this should translate into revenue growth in terms of tax free shopping between 7% 11% as shown on the right of the graph, very consistent there also with the 10 years performance before COVID. If I turn now to FX Solution, so there also an expectation of growth in terms of volume between 9% 13%, very much in line there also with the long term trend pre COVID, which has reached around 10% 13.5%, including the acquisition of Currency Select, which would translate there also with revenue growth between 9% 13%, very much in line there also with the performance pre COVID of the FX Solution division. Last but not least, just to remind you that Global Blue is well ahead once again the inflation. And you had in this chart reminding that if the luxury brand have increased their price of 27% in average versus 2019, the inflation has been bracket only 20%, which means that we had a positive impact in terms of P and L.

Operator

And probably more importantly today to remind you that given the positioning of Global Blue in Luxury, but more importantly in selling luxury goods to high network individual and more wealthy people. 10% of our consumer base represent almost 50% of our sales in stores or volume. Given this particularity of positioning, Blood Bowl Blue in the last recession have been able to push basically flat figures versus the luxury market down by 8% and travel down by 16%. So in summary, we are hedged again a recession, but also inflation, which is in this uncertain time important to have in mind. So with that in mind and for concluding this presentation, just to re mention that Q2 have shown, I would say, strong set of results, which are basically following also a very strong Q1 that during the last weeks, we have announced 2 important capital structure transaction, one which is this investment of $0.10 of $100,000,000 and secondly, the fact that we have fully refinanced our debt with now a new package of debt with a maturity extended to 2,030.

Operator

And last but not least, that with the Q2 reporting, we are pleased to reiterate our financial guidance for the year and in particular, the adjusted EBITDA between €145,000,000 and €165,000,000 Thank you very much. And with Roxanne, we give you another rendezvous for Q3. Thank you very much and bye.

Speaker 1

Bye bye.

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