Good morning, ladies and gentlemen, and welcome to the Eletromidia conference call to discuss the results of the third quarter of 2024. We would like to share some instructions with you before we start. Should you need simultaneous interpretation, please click the globe icon at the bottom of the screen and choose Portuguese or English. The Slide deck of this video conference is available on our IR website, ri.eletromidia.com.br, and on the CVM website. The video will be made available later on. Please note that all participants are in a listen-only mode during the video conference. After that, we will open the call to questions, and further instructions will be given. We'd like to inform you that forward-looking statements are subject to risks and uncertainties, which may cause these expectations not to occur or to be materially different from our expectations. These forward-looking statements are based on the beliefs and assumptions of the company on the date they are made and do not need to be updated. With us today, we have Alexandre Guerrero, our CEO, and Ricardo Winandy, our CFO and IRO. Now, I'd like to turn the call over to Mr. Alexandre Guerrero, who will start the presentation. Mr. Guerrero, please. Good morning, everyone. Thank you very much for joining our earnings call to discuss the third quarter 2024. 2024 was an important year, especially for the sporting events, or rather for the event sector, and Eletromidia has been a key player in this transformation, bringing innovation to the out-of-home sector. We have been present in the major festivals in Brazil, making sure they have a full experience in their journeys, and speaking about live experience, 2024 reinforced the pursuit for interaction in the real world with technology ever more integrated to our everyday lives. The last year consolidated Brazil as the main destination for major events in South America, with music festivals, trade fairs, and sporting events taking place here, such as the Olympics. We continue to carry on our thesis with a lot of financial and operating discipline, and our main investments in technology and the expansion of street furniture have been the main focuses of the third quarter. These investments show our long-term view for the future of our business. Year to date, our revenue totaled BRL 908 million, a 36% increase year on year. That shows the positive impact of our expansion strategy in many fronts. This is a substantial increase that can be seen quarter after quarter. Year to date, our EBITDA is BRL 272 billion, pardon me, with a 51% increase compared to the same quarter last year. The increase in revenue and results has been boosted by the expansion in new assets and the maturation of the investments we'd already made, also stemming from improvements in operating leverage and a better sales mix. This growth bears witness to our ability to innovate and shows that the advertising market, our clients and agencies, have been investing more in a more efficient fashion in our sector. In this period, we have increased our presence in events. We increased our presence in major events. We have made history celebrating the 40-year anniversary of Rock in Rio. We had our presence creating a lot of engagement and impact in the audience. We have innovated out of home, and the Street Furniture Plus have again innovated where people could interact with the screens and be seen on the major screens on the stage. I will show you a video to illustrate what we did this year in Rock in Rio. We have also forged a partnership for our project, Sports Heroes, with the media partners of the official Olympic committees in Brazil and also the Paralympics committee. We have content that is inspiring and that really connected Brazilians to their sports heroes. So the screens showed every medal won by Brazilian athletes. Expanding our core, we won or we were awarded the concession for 100% of the bus shelters and street clocks in Rio de Janeiro for 20 years. This is a project that is a milestone as we join the Rio de Janeiro street furniture. And a good example of that is our guarded bus stop. We have a bid for over 800 guarded bus stops for people to wait for buses alone, especially women, to have a security support. We also have the concession for the clocks, allowing for a very thorough experience for the consumer journey. We have a 20-year concession that starts January 2027. The main challenge in this agreement and this contract is that in 2024, we're going to be paying 50% of the concession fee amounting to about BRL 440 million. But the execution starts a positive impact only in 2027. We understand that this project will increase our leverage in the short term, but it's very important when we think about the long term of our business. Thinking about 2025 and looking forward, in October, we had Tomorrow, our sales upfront event. In it, we discussed our strategy for 2025, and in this month, we talked to our main clients and spoke about our main initiatives for 2025, and we have some of the novelties here: the Summer and Carnival Project, TikTok Out of Home, the Football or Soccer Project, and others. Recently, we announced our acquisition of 4YouSee, the main players in the electronics company in Brazil. We have three main objectives with this acquisition. The first is to strengthen our SaaS solutions, software as a service. We want to develop this market, and we want to expand our agenda and data and metrics. 4YouSee will continue to operate independently, contributing to the growth of our industry in the coming years. Still talking about technology, SMB, our second main initiative, an initiative that connects to small and medium businesses. Oh, and let me share some of the data around this journey with you. Our year-to-date revenue is 11 million BRL, a 284% increase year on year. We also have Eletromidia Aqui, Eletromidia here. It's a transformation in our sales platform. There is a three- to six-month promotion period. This is a substantial upgrade or increase in comparison to the previous period, which was only 28 days. Now we're starting a new phase in automation, now with WhatsApp creating a 100% automated channel between buyer and vendor. On the 4th of November, there was a communication about the purchase and sales of the control of H.I.G. by Globo. The details of this transaction can be seen on our IR website. At the end of the presentation, myself and Ricardo are going to be available to answer any questions you may have about this H.I.G. acquisition. Ricardo will now talk about the indicators. Thank you, Guerrero. Good morning, everyone. Thank you for joining our video conference to discuss the third quarter 2024. We continue with a positive pace, and the third quarter shows progress in all of our indicators. Our gross revenue was BRL 244 million, amounting to BRL 908 million year to date. That is a 36% increase year on year. This result was boosted by growth in all of our verticals. Our EBITDA was BRL 113 million, a 37% margin. That is a 42% increase year on year. We had a 2.2 percentage points increase in our margin and BRL 272 million in our year-to-date EBITDA. That's a 51% increase. We also had adjusted net profit of BRL 49 million in the quarter, 71% higher year on year, with an increase of BRL 20 million reais and a net margin of 16%, BRL 106 million year to date. BRL 139 million was what we had in operating cash before tax and interest rates, and that is an EBITDA conversion and to cash flow of 124%. We had BRL 207 million year to date with a conversion rate of 113%. Analyzing the expansion of assets, we have 68,000 screens at the end of the quarter, 50,000 of which are digital. That's a 125% increase in the number of assets. As for sales, we had an increase in revenue amounting to BRL 344 million in the quarter. That is a 33% increase year on year. Year to date, BRL 908 million was our revenue with a 36% increase. These results show that the sector is stronger and that our strategies are working, as well as that we have good results from our investments. Streets grew 37% year on year, and we're growing into new areas with new concessions, and we're also investing in going digital. Year to date, we had a 46% increase year to year, pardon me, year on year. In transports, we had a 41% increase in the quarter and 46% increase year to date. When we look at rail transportation as well as airports, we'd like to mention them as highlights, considering the sponsors that we have for the Rock in Rio Festival in September. In buildings, there was a 9% increase in the quarter and 19% increase year to date. This is mainly due to the increase in residential buildings as well as the scheduled sales and the improvement of our platform to service small and medium businesses. In shopping malls, we had a 27% increase in the quarter, 18% increase year to date. That is due to the increase in our assets occupation, or rather occupancy, as well as the strengthening of our strategic partnerships. Looking at our sales performance and our cost and expense management, we have an EBITDA that, or rather a consolidated adjusted EBITDA that is BRL 113 million in the quarter with a 37% margin, a 42% growth year on year with a 2.2 percentage points margin. Year to date, our EBITDA was BRL 172 million with a 51% increase year on year, a 4.3 percentage points margin. Our net profit in the quarter was BRL 49 million with a margin of 16%, 71% increase year on year. Year to date, net profit was BRL 106 million with a 13% margin, a 62% increase year on year. Our cash flow year to date we had 113% of our EBITDA converted into the generation of operating cash before tax and interest rates amounting to BRL 307 million. And after these payments, the operating cash generation was BRL 212 million. In the quarter, the operating cash generation was BRL 139 million with a 124% conversion. This was impacted mainly to the performance that improved also in our working capital and the payables that were paid forward by customers and clients. In this quarter, we have focus on bus shelters, panels, and also new installations. Year to date, our investments amount to BRL 82 million. We have the advancement of the ventures and loans and financing in the second quarter in 2024, and they were replaced with long-term debts. And we conclude the period with BRL 443 million in our cash position and a net debt of BRL 136 million, which is equivalent to one multiple of our EBITDA in the last 12 months. That is 1.9 times what we had last year and 1.3 times what we had in the previous quarter. This quarter also bears witness to the consistency of our performance and our strategies to strengthen the company's position and to strengthen and sustain our growth journey. Guerrero, your final remarks, please. We had another significant quarter with a 36% growth in revenue year on year. Our EBITDA was very efficient. Our pricing policy was very good. We have sales on our platform. We had good expense management, and we've seen our EBITDA 51% increase compared to last year. So another positive quarter showing the growth of our company. The street furniture concession in Rio de Janeiro poses an important challenge, especially in the short term when it comes to our leverage. But we believe that this project will, as of 2027, contribute to our commercial strategy. The 4YouSee acquisition is an important step for Eletromidia as a technology provider. It allows us to manage different pieces of software and manage digital content as well as different types of digital advertising campaigns. I'd like to thank you all for joining us on this conference call. We're very happy to achieve everything we have achieved. We'd like to say a big thanks to our team who has been working harder and harder every quarter to achieve better results. We'd also like to thank our shareholders and our board of administration who always support us and motivate us to find new business opportunities and to continue to grow in the market. Myself and Ricardo are available to answer any questions that we have in the Q&A session. Thank you. We'll now start the Q&A session for investors and analysts. You may send your questions in writing using the Q&A button, or you can click the button Raise Hand to unmute and ask your question. We'll then call out your name, and you'll be able to unmute your mic and ask your question. If you wish to send your question in writing, our operator can read your question. When your name is called out, a pop-up will allow you to unmute. First question is from Thiago Kapulskis from Itaú BBA. Thiago, please, you may begin. Thank you very much for taking my question. Congratulations, Guerrero and Ricardo, on these excellent results, and congratulations on this deal with Globo. My main question has to do with that. I think this will be the main driver everyone is focusing on. Can you talk a little bit more about your expectations around this deal? What do you expect to see in the future once the company is incorporated? I'd like to hear your expectations, especially when it comes to synergies, and also how you see the out-of-home industry in the future with the biggest television broadcasting company in Brazil with 100% of the company. Hi, Thiago. Thank you for your question. The details of this deal are or were published in the Material Fact. We talked about the new or the coming special shareholders meeting to vote. We're also having our organizations with the antitrust authority in Brazil, and we believe that this deal should move on fast as per our lawyers' instructions. We will go private as that happens. This process should be finalized in the first half of next year. We can't say exactly what the date is going to be because it will depend on the stages. As for this transaction, I think that we're all very excited in Eletromidia. In the past 18 months, we have been working with the main global executives. We have had very valuable interaction. It's great to see how they look at their challenges and see how they deal with the digital transformation and consumer journey and with this whole process that Global has and understanding our business. The main step in this process is the antitrust authority approval. The operations will continue to go on independently. Eletromidia will continue to be Eletromidia. Global will continue to be Global, and in the future, we want to look at synergies in our agendas to work for the group, so it's hard to say exactly what is in store for us in the future, but we are sure that this is an opportunity for the advertising market and for our company. It is an opportunity to be close to a company that really understands the media industry in Brazil and who will be helping us develop our business in the future. I think that's all we have to say right now. And after the antitrust authority approval, we'll be able to look into the future a bit better and understand our opportunities better. But we're very excited. We have a very solid thesis at Eletromidia, and we have been very disciplined in our thesis from day one after the IPO. And we'll continue to keep our eyes on the ball. And there are two very important months for us to get to the end of this year on a high note. And we hope that the fourth quarter will be as the third quarter in line with our expectations that we can deliver great results to our shareholders. V ery clear. That's all very clear. Thank you very much for your answers, and I'd like to thank you for all the time we have worked together, and congratulations on your achievements. Thank you, Thiago. You have always been very excited about our business. You have kept a close eye on our business. We still have a couple of conference calls to come. We'll have some interactions in the medium term, and we'll be together, so thank you very much. Thank you, everyone. Our next question comes from Ramon Fonseca from UBS. Mr. Fonseca, please. You may speak. You can unmute yourself. Thank you very much for taking my questions, everyone. Alexandre, Ricardo, congratulations on the results. They are very significant this quarter, and I've got two questions. They're not even about the acquisition. They're about the actual results. I'd like to hear from you what you have to say about the increase in revenue through panels. What was the main driver in the panel growth and deleveraging? Right. We have seen deleveraging the past quarters, the net debt over EBITDA. And what are your expectations in leverage in the coming years? Should the concession increase? What are your expectations? Thank you for taking my question. Thank you for your questions, Ramon. As for the average revenue per panel, year on year, considering seasonality, we see some distortions. I mean, compared to year on year, it is mainly due to the maturation of the new investments we have made. There's always a seasonality between different quarters. But in the period we have invested in new concessions, we have tapped into new markets such as Recife and Salvador. We have the Tembici partnership in other cities and towns as well. We expect these investments to mature over the year with the average revenue per panel in the coming quarters to be closer to the historical margins. This explains the difference we had in this quarter. As for the leveraging, we're now at a net debt and EBITDA indicator that is a multiple of one multiple. Pardon me. We have the BRL 443 million real to be paid in the Rio de Janeiro concession when we signed the contract. That is certainly going to impact our leveraging. That's going to increase our net debt twofold. This greater leveraging level will be seen mainly as of 2027. It's going to be impacted as of then because we're going to have the cash generation. We do expect the leverage to grow in the very short term. Thank you very much. And good luck in this new phase in your story. Thank you, Ramon. You may send questions in writing using the Q&A tool, or you may raise your hand. Both buttons can be found at the bottom of the screen. Please bear with us as we collect more questions. Should you wish to ask questions in writing, you just need to click on the Q&A icon at the bottom of the screen. But you may also use your microphone by clicking on "Raise Hand." If you don't want to read your own question, you can have your question read by our operator. Please bear with us as we collect further questions. As there are no further questions, this is the end of the Q&A session. We'll now turn the call over to Alexandre Guerrero for his final remarks. Thank you very much for joining. We're available should you have any questions. All of the information we share with you today is available on our website. We'll meet March next year. So we wish you all a great end of year, and we talk to you next year. See you soon. Bye-bye. This is the end of the Eletromidia third quarter video conference call. Should you have any questions, you can send them to our IR team with the email ir@eletromidia.com.br. Have a great day. Bye-bye.
Loading workspace