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Everything to Play For
Everything to Play For Devin Wenig A presentation to Lehman Media Conference 13 June 2006 First, let me welcome you and thank you for coming. I want to thank Colin who has been a close follower of Reuters for many years, and as I have said publicly, is someone who has really understood Reuters and some of the more important things that have happened to our company over the last couple of years as well as or better than anybody else. Colin, thank you. Hopefully this year I can make your surf outing – I certainly hope so! Thank you all for the opportunity. This has always been a very good conference for us. Something that I have noticed in the last couple of years is that I know you saw our friends at Bloomberg yesterday – at least some of you did. You spoke to Peter Grauer. I don’t know if you saw Thomson this year. All that is very positive, but my sense is that there has been a little bit of ‘he said/she said’, and it all gets very tactical. I thought that given the state of our markets, given the state of our growth strategy, it might be time to take a bit of a step back and take a more strategic look at Reuters. That is what we are going to try to do this afternoon. We live in turbulent times – and I am not just referring to the state of our markets today. In our financial and our media markets, we are experiencing a moment of acute structural change. This change is significant in scope and frankly, I believe, it will set the stages for changes that will live for at least the next decade. This is one of those moments, when technology and new business models really make us rethink what is normal and what is possible. I have worked for Reuters for over a decade and I can tell you I have never seen anything quite like this. As Fast Forward drew to a close in the middle of last year, our management team and our Board were faced with an interesting choice. Our first option was to keep running our core business, for top line growth at about average market rates, say, 2-4%, margins in the 17-20% range, and cash conversion of say 100%. I get my gas electricity from companies that have profiles like that. When we looked at our markets and talked to our customers, however, we saw a far bigger market opportunity. The essence of what we set out to do with what became known internally as Core Plus was to break our reliance on simple headcount growth in financial 1 services and instead tap into areas of outstanding growth. Growth in headcount and numbers of terminals is yesterday’s story. Trading volumes are going to be a much bigger part of the growth story going forward for all the companies in our industry. By reducing our dependence on headcount, we will accentuate the resilience of our business and protect ourselves from the next financial services downturn, whenever it comes. How we at Reuters are responding, what we see as our role in this new world, and where we believe the growth opportunities lie, is what I and my colleagues are going to cover this afternoon. As you will hear, our goal is to be the undisputed leader of the industries that we serve. There is everything to play for, and at the new Reuters, it is all about winning. Agenda On to my agenda. First, I want to go back to first principles. I want to give you a sense of the assets and capabilities that are at our disposal. We have an extraordinary set of physical assets, skills, market knowledge, relationships. I would hypothesise that if Reuters were a ‘new’ story, say an IPO coming to the market today, people would be stunned by the scope and the breadth of this business. The second thing I want to cover is exactly what is happening in the markets, because you cannot unlock value unless you have market foresight. Then I will talk about our strategic response and why I have confidence, and more importantly, you should have confidence, in our ability to deliver. In addition to my presentation, you will get a granular, more detailed look at some key areas from my colleagues. I can see Mike Stepanovich in the back, Chris Ahearn who runs our Media Businesses in the back, and Jon Robson, and I will make proper introductions when we come to them. Let us start at the top and plunge right in. Reuters is a Media Company What is Reuters? Broadly speaking, Reuters is a Media company. After all, we own and manage content and we serve it to communities. We have a financial services community, a media corporate community and a growing consumer community. We believe that there is huge value in that content and in the communities that we serve. I want to start by looking more discriminately at our content. Content We deal really in four different types of content. 2 1. Content we create The first thing that comes to mind is our news operation, which happens to be the biggest multi-media news operation in the world. Our reputation is based on speed and accuracy, something that we measure relentlessly. We have 2,300 journalists, compared to AFP’s 1,250, and Bloomberg’s 1,700. Our journalists produce eight million words a day in 18 languages, and again for comparison, AFP produces about half a million. Reuters has beaten the competition on nearly 600 beats per month over the past 12 months. Just last month, for example, we broke news about important aspects of the Bank of China IPO, one day ahead of our competition. We are also the source of news that our competitors rely on most. Bloomberg sourced Reuters for over 300 commodities and energy news stories over the last 12 months. However, it is not just news that we create. We create financial information as well, indices, benchmarks, evaluated prices on fixed income securities, normalised accounting data, and polls, just to give you an example. If I look specifically at one, benchmarks for instance, it is often a first step to establishing ourselves in emerging markets. In China, we have established a benchmark bonds yield curve, which is available only on our screens. With the acquisition of Telerate, we acquired some key fixed income benchmarks, like PAGE 500 for Treasuries and PAGE 1099 for swaps and derivatives. Creating our own valuable content is key to making our products sticky. 2. Content we aggregate In the financial markets, unlike in other sectors, content aggregation still holds considerable value. If you are equities focussed only, sometimes it is easy to overlook that, but any professional carrying foreign exchange exposure, risks getting badly rolled over if they do not have access to Reuters. We are, after all, the very best source of current market prices. We have made considerable investment over the years in aggregating information from over-the-counter markets, and we currently draw on over 5,000 contributors. Here, the power lies in our community. It is not easy to replicate, and as new information becomes available, say, data exhaust from transactions systems, we make that available, and therefore improve market transparency. Reuters is instrumental in improving market efficiency and market transparency. Another area where we aggregate content to create competitive advantage is fundamental data and estimates. Here we are reaping the benefits of our new centre in Bangalore. We have access to over two million commerce graduates per annum, and 3 because of that, we have been able to start from scratch and introduce best practice database structures and quality insurance. Our data in this area is simply the broadest, the deepest and the most accurate. 3. Content we source, exclusively You might say that this is just the contract, so why can’t somebody replicate that? Think about that for a moment. Let us take a look at Mastercard for example. We are showing Spending Pulse data outside. Why is it that Mastercard sourced their data exclusively to Reuters? It was because of the distribution power of our franchise. It has everything to do with reputation and scale. It is that that makes us a preferred partner. We currently have a number of exclusive data distribution agreements, including treasury prices from ICAP as an example, NTC’s purchasing managers index, all of which are very challenging to replicate. 4. Content we distribute Finally, here the value we bring resides in the common data model we use on our feeds, which makes our data easy for our customers to find and easy for them to use. Our customers have written over 50,000 applications on Reuters data, and they have invested significant time and money in doing so. Our raw data processing capability processes data from over 300 exchanges at up to 120,000 messages per second, and we do over 300 changes to feed specs per year. This is a high scale game, and it is not easy to replicate. Have others tried to replicate our datafeed business? Sure. Will others try going forward? Of course. But we have outstanding products, 25 years of history and experience, and an unrivalled data distribution franchise. If others come into this game, I assure you they will face a formidable challenge, because we are the main data artery into the wholesale financial services market. Communities Having discussed four content assets, I now want to move on to the second major category which is our community. Again, I would like to start with some facts. Our media business has almost 100% penetration of newspapers and broadcasters, and our news reaches over one billion people today. That is the basis for growing a valuable direct community franchise, we think, with influential consumers. We believe our financial service community is the most valuable in the world. We have over 350,000 users in our financial service community. True communities like the ones we have built in trading, research, all types of collaboration, create economies of scale and 4 scope, low turnover, and they justify higher prices than a simple publisher/subscriber relationship. Reuters Brand The final major asset I would like to talk about is our brand. We have been in business for over 150 years, and our brand remains a stellar asset. The Reuters name is among the 100 most valuable in the world as measured by Interbrand. As we look to establish a consumer presence, that brand is becoming ever more important. It is our brand attributes of immediacy, integrity, insight and inspiration that is helping drive both our professional and our consumer propositions forward. I would like to take a moment, because brand is often something you experience more than you talk about. I would like to show you a very short video which is our latest promotional video and it represents our brand values very well. [Video shown] That is just a taste, and there is a lot more of that coming, much of it led by our media business which you will see more about from Chris. It is those attributes, inspiration, integrity, speed, accuracy that underlies everything that we do. I want to close off on our assets and move on, because I think you will agree that we have a formidable, amazing, unreplicable set of assets at our disposal. Let us now turn to our markets, because it is not good enough to know about our arsenal unless you understand where the playing field is. Market Foresight What exactly is it in our markets that make me think we have exciting opportunities? Let me start with financial services, then I will move on to media and consumer Seismic shifts Financial services is an industry where the rate of change is faster than almost any other. You have to enjoy and thrive on the challenge of change to survive. Change is not mandatory, but again, neither is survival. Right now, however, there is something unique going on, the type of rapid and deep change that is going to shape this industry for the next several decades. What is happening? Look at the shift in the sources of profit. Trading now accounts for upwards of two-thirds of banking revenues. Hedge funds are growing at 25% a year. You cannot treat asset classes as islands any more. Structured products have been on the 5 rise, and traditional asset classes like equities are now break-even or loss-leading for all but a very few banks. Secondly, the way we trade is changing dramatically from physical bodies to machines. We are experiencing the industrialisation of the trading floor. It is something similar to the kind of revolution that changed the face of the automotive industry decades ago, more efficient but hugely more complicated. Efficient end-to-end trading and processing have become huge differentiators in attracting client business and executing it profitably. Thirdly, regulatory changes. We all know about research, sure, but what about MiFID and Reg NMS? Have we thought through that, and how it may create market fragmentation on the way to creating market transparency? Fourth, the nature of the clients themselves. The big are getting bigger, and the small are going niche. The shape of our industry is changing before our eyes. This is the equivalent of the internet showing up in 1995, which created big online media giants and thousands of niche firms, niche players. We are at the front of an enormous secular move in financial services. Fifth and finally, market structure. This sounds like a very esoteric concept. However, it is the essence of how financial services clients interact and make money. Market structure evolution is a lot like Darwinian evolution. It is quirky, it does not make perfect sense, and nothing happens for a long period of time. Then, you get enormous breakthroughs. We are now at that point of enormous breakthrough, and like Darwinian evolution has its unfailable rules, like only the strong survive, so too does market structure evolution. In this case, all markets will move over time to transparent central marketplaces with liquidity concentrated in a few places. We will come back to this. These are the key drivers that we see in financial services. It is a pretty amazing time. The pace and the depth of the change is unprecedented. Media Markets Explosion Let me turn to media where, arguably, if you are blown away by the changes that I have talked about in financial services, the changes in the global media industry make those seem tame. The earthquake of the internet that was unleashed on the global media industry a decade ago is now finally showing its full direction and full impact. We are moving to a world of a million multi-media channels, of a total breakdown between distribution channels and between the devices connected to them. We are even seeing the breakdown of the 6 traditional divide between publishers, broadcasters and consumers, as blogging, citizen journalism and social networks turn consumers into publishers, and vice versa. What does all that mean? It means in part that the friction to distribution is coming out which is a great thing for content companies. Distribution was always an enormous barrier to reaching a mass audience, but now the pipe is being blown up. That is the good news. The bad news is that in this frictionless world we are moving to, people are overloaded by choices, it is difficult to know who to trust, and the challenge shifts from physically connecting with an audience to mentally and emotionally connecting with them through your brand. This is a sea-change in the way that media companies must think about their role in the world. Our Strategic Response I have talked a bit about change in our industries, and there is a lot of it, as I hope you appreciate, but how are we at Reuters going to respond? I want to draw together the market opportunity, the relevance of our assets, our brand and our capabilities and the strength of our record of execution, to show you how we intend to change the world. Sales & Trading Led by our Sales & Trading Division, Reuters will play a pivotal role in defining market structure across asset classes, and we will place ourselves at the centre of trading. The combination of two-thirds of banks’ revenues coming from trading, the rise of machines to industrialise trading, and regulation-driven demand for transparency are all great opportunities for us. We are an ideal, neutral distribution partner for tradeable prices and applications. Our plan, therefore, is to create the world’s largest cross-asset trading platform, differentiate by breadth of coverage and at a competitive advantage by being able to deploy a broad range of revenue models, subscription, usage, transaction base, and even post- trade processing payment. We are measuring the success of this through a series of milestones. Step 1 is linked to launching Reuters trading across asset classes, and signing up a critical mass of market participants – that is what we are doing this year. Step 2 is to build volume, and Step 3 is to generate revenues such that by 2008, we are expecting trading to be contributing about a third of the £150 million of additional revenue we are expecting from Core Plus initiatives. 7 How does this play into the market structure issues? Technology and regulation are two key drivers of the changes to market structure that I spoke about that are occurring right now. Let’s take FX Marketspace as an example. This is a big bold move for Reuters, and one that you will hear about in more detail later. On the top line, this is not just a front-footed move to bolster our FX business. This is also the first time that anyone, ever, has attempted to take a major over-the-counter asset class – in this case, it just happens to be the world’s biggest – and move it into a central, order-driven exchange-type market. If it works, in addition to it being a mammoth opportunity in its own right, it raises all kinds of questions about the market structure of other liquid over-the-counter instruments. Take liquid fixed income, liquid bonds, as an example. As I say, I am going to park this for now, and turn it over to Mark Robson and his CME colleagues who will take you through FX Marketspace in one of the breakouts. Research & Asset Management Second, led by the our Research & Asset Management Division, Reuters will pioneer the primary research revolution and become critical to the investment process everywhere. What do I mean by that? In a world where the shape of financial services is skewing and so much power is in the hands of smaller firms, when regulation challenges the bundling of research with execution and when large assets like equities are zero premium and full commoditised, there is a real need for us to step into this, use our assets and fill the void. John Hervey, who joined us a year ago after being President of Soundview Research, is going to take you through this opportunity in much greater detail. Enterprise Third, in our Enterprise division, Reuters will move to be the single solution that financial firms look to to solve their data consumption and data management issues. The new masters of the universe are machines, and it is about feeding them the data that they want, in the form they can consume it. Here, our assets are literally peerless. We pioneered machine readable data and market data systems, and we developed an industry standard data model. As we strengthen our relationships with our most influential customers – Jon Robson will take you through that in much greater detail – we are uncovering all kinds of opportunities to use our assets in this space. 8 Enterprise projects are the second largest contributor to our growth targets. They are extremely important for driving our firm forward in the future and under our Core Plus programme. Media Finally, our Media Division. Here, I want Reuters to become the world’s most trusted media brand, and to build a large global consumer audience of influentials. This is down to my colleague, Chris Ahearn, who is tasked with doubling the size of our media business – no small challenge! He will draw on our content assets and on our brand, as well as the simple fact that we do not have a legacy consumer business, and because of that, we can and will be the most aggressive in deploying and using technology and challenging existing business models. Colin and a few others know that I am a very keen surfer. Here in our media business, I feel we have the biggest board on the beach, and we are waiting for our set to come in. Chris will take you through Media in more detail after the breakout. Execution Challenge As you have gathered by now, I am excited by our prospects, but can we execute? The answer undoubtedly is yes, and I would like to close by telling you a little bit about the culture of execution and how we are going about managing risk. You know that in the 1990s we became complacent. We lost touch with our customers, we under-invested in our products and our management information systems, and we let our cost base balloon. Something had to give. Jack Welch once said that when the world outside is changing faster than the world inside, the end is near, and that is exactly where we were. We had to take dramatic and remedial action. The hard work that was Fast Forward has made Reuters competitive again, and critically, it has made us simpler to run. But most importantly, we have built a more sustainable management culture – market savvy, service obsessed, performance focused. We are not there yet. I can tell you, we are far from perfect, but let me be clear, that the legacy of Fast Forward was not just about cost savings, nor was it saving Reuters in 2003. The legacy is a culture built on execution and on winning. We are leading again, and we intend to keep it that way, whatever it takes. Execution Culture In the case of the specific initiatives that I have mentioned, we are monitoring each of them against a defined series of milestones, and we are keeping their budgets separate so that if it does not work out, we can pull them at any time. Their adjacency to our core does 9 sometimes make this a bit complicated, but it is in that adjacency that also lies their strength because we are getting leverage from our core business. I monitor performance on each of these initiatives monthly, each has clear and accountable owners, and it is in the strength of the portfolio, not any individual project, that our success lies. My confidence lies in the fact that it is exactly this operating philosophy that allowed our management team to establish what I believe to be on the best execution track records around over the last several years. Everything I am seeing at the moment leads me to believe that we are well on track. We are rightly proud. I hope you can see now that we have re-invented ourselves at Reuters. We have taken the best of our business and moved it to the next level of thinking and of operating. We are extremely well-positioned for managing the new world of super hot technology-led change and complexity, we have people and ideas, relationships and scale. We are constantly asking ourselves whether we are adding enough value to our client base. We are constantly asking ourselves what comes next, where is the next opportunity. It is never enough, but there really is an awesome opportunity for all of us at Reuters, and I intend we will lead every step of the way. There truly is everything to play for. With that, I am going to stop the formal remarks, and turn it over to questions. I am very cognisant that in the past, we have done very specific and very tactical updates about specific things, and as you can tell, I did not want to do that. I wanted to have a strategic dialogue today, but if there are any specific questions, I am happy to take them now. Question & Answer Session Question: Please can you comment on the changing revenue mix and the shift away from headcount dependence. Devin Wenig: What is happening is that our business model which has been so heavily tied to subscription recurring revenues is now beginning to become diversified. We see things like transaction revenue growing, we see things like advertising revenue growing in our media business. Jon is going to take you through more detail about how Enterprise deals are structured, so I will leave it to him. Absolutely, we see the mix of our business changing over the next three years. That is a good thing. If you look at the last major financial downturn in financial services, things like headcount, things like terminal size shrunk, but all through that downturn, market volumes, investment in trading, investment in advertising were growing. I think that the 10 essence of what we are trying to do is to build a more diversified business and also prepare ourselves and not be fully tied to a front-office, financial service, trading type business. That does not mean it is not important, but it means in relevant terms it becomes less important as our growth plans take us forward. Question: Does this mean lower margins for some time? Devin Wenig: Absolutely, and we are accepting those lower margins in particular this year, because we are in an investment phase this year. We have consciously suppressed our margin. What we have said is that we were in that 17-20% range, and this year we have invested or are investing roughly five basis points to grow and diversify that business, but when we come out of this investment phase, I fully expect we will be back into that core target margin range. All of the initiatives we are pursuing are either margin neutral to that target goal range, or they are margin-enhancing to it. Question: This CME joint venture is pretty transformational in market structure, and you say that execution will be a greater proportion of your revenues going forward and you also want to be across all asset classes. Is this just the first step, getting into FX, and then may be you will have more transactional venues for say equities, options or derivative stuff like that? Devin Wenig: The short answer to your question is yes. But I would not expect that we are going to change the world’s market structure in every single asset class. We are looking across all of the markets. In some, we are mirroring market structure, but taking markets on line, so our fixed income strategy today in something like US treasuries or bonds is that we are mirroring an inter-dealer market and a downstairs market, but we are helping take a voice-based market online through Reuters Trading for fixed income. In other markets where we feel that the time is right, we are going to try and blow up the existing model. I don’t want to steal these guys’ thunder, but there will be other markets where we believe we can change the essence, the DNA of the market structure. I have to tell you that the feedback we have had from our clients has been exceptionally positive. It gives us confidence that we can do this in other areas. I absolutely agree with you that this is a big transformational move. It is a big moment not just for Reuters, it is a big moment for the markets. If this happens, it will be the first time that it has ever happened. Again, I could go on and on about this, but I am not going to because those guys won’t have to sing for their supper and we wouldn’t want that to happen. 11 Question: We were talking about desktops. You pointed out that headcount is not the major driver any more on desk top products. It may not be the main driver, but in terms of its importance for driving those other things, how significant is it when you are looking at investment into other products? Devin Wenig: It is still significant. What I want to do is strongly point to the fact that our growth is not a headcount only story. I understand that Bloomberg gave you their model fixed story, and that’s fine, they are good at it. But that is not where we are going. Our story is not that we are going to take back blank points of market share. We are level with them in market share, I am convinced, and we will take a bit of market share, but the engine of growth is not winning more desktops. Are desktops important to Transactions? Yes, they are. Are desktops important to other things like penetrating the buy side and penetrating the primary research community? Absolutely. Let’s not let the sound bite be ‘desktops don’t matter any more’, but I really want to strongly signal that we are moving our company in a different direction. This is not trench warfare with Bloomberg. I see all kinds of new competitors as we diversify our business. Chris is going to talk to you about his competitors which have nothing to do with Bloomberg. He has all kinds of new and emerging competitors, so too in Trading, so too in Enterprise. It is a change in the business model, but let’s be clear that today, still, over 90% of our revenue comes from subscription-recurring revenues, and we have 350,000 desktops, and we have just crossed 100,000 with 3000 Xtra, so it is not an unimportant part of our mission. Question: How much of your growth going forward is driven by account growth on the hedge fund side versus further investments on the investment bank side? Wenig Devin: It is a good question. It is changing right now and one of the fastest-growing segments of our business is in the hedge fund market, largely through desktops, but datafeeds and market data systems also. A lot of hedge funds to us are looking like integrated sell-side banks. If you go to Citadel, that is not my vision of a ‘mom and pop’ asset management firm. They seem to be market-making, they seem to be doing advisory services, they are doing all kinds of things. It is a general proposition, but right now, our hedge fund business is growing fast, and it doesn’t show signs of cooling down. Question: Do you have a strategy to get into the database integration? 12 Devin Wenig: Database integration? It depends on what you mean by that. [Inaudible comment] It is interesting, we do do that. In essence, if you are a subscriber to a Reuters product, you are getting a lot of Reuters content, but equally you are getting a lot of third party content. I think we could probably show that to you in the back. Where we are moving that will get more like Factset is that if you look at a product called Reuters Knowledge, it is in essence our buy-side product. It is very deep on estimates and fundamental data, analysis of companies and industries, less so about execution. Where we are moving in that space is that we will be adding portfolio capability, modelling capability, some of the things that Factset does, although much more of it will come directly from our data because we are a content company and Factset is not. Factset takes data from other places. Partially yes. Question: Just on the Sales & Marketing side, Jon is going to talk about the focus clients, but for all of those smaller clients, and given all these different things you are getting into, is the Sales & Marketing organisation configured correctly now or is that something you are going to have change? Devin Wenig: It is changing, and it is changing because what we are seeing is we need a more efficient, more marketing and less high touch model to get to the bulge and the emerging smaller clients. I know Jon is talking about the big clients, but I think he can spend a moment and talk about the sales model generally. I am going to park that and let him talk to it, but there is no doubt that the shape of our frontline has to change to mirror the changes that I have spoken about here. It is happening very fast and in real time. Question: What sort of timeframe are you putting on the transformation? …. Secondly, do you see primarily organic or acquisitive growth? Devin Wenig: In some ways I think ‘transformation’ is an over-used word, and I doubt it ever ends. If you are not transforming, you are dying. I think this is a process that goes on for a long period of time. However, we have set very clear external benchmarks on guide posts that you can monitor, such as £150 million of additional revenue from Core Plus within three years, additional savings from transformation in cost saving initiatives. In three years, this firm will look and feel a lot different. That does not mean that the transformation is over, but I am signalling that three years from now, the shape of this firm will be different. It will be enough down the mission that you will really be able to see how we have changed the firm. 13 In terms of acquisitions, we have never been a ‘go-out-and-buy-the-world’ type of company, but we have bolt-ons, we announced one yesterday, a company called Application Networks, which fits neatly into our Enterprise story. It is a great London and Palo Alto- based risk management company, $41 million. I personally believe that where you create great value is in bolt-ons, where you can attach them, really get the scale benefits of Reuters, the benefits of Reuters data, things like that. We have never been a company that feels we have to go out and do mammoth acquisitions, because, as I said here, I think we have a lot to work within our data assets and what we have here, and ultimately over the long run, value is created through executing organically. That doesn’t mean there won’t be deals. If there is a great deal we will do it, but the story is not that we are going to go out and buy everybody; the story is an organic execution story. Question: How far do you think Reuters is along the line – you mentioned that execution is very important, you offer a lot of stuff. Apparently Reuters still comes into Lehman Bros on five different platforms. I know from my limited equity experience with Reuters that anything you ask us - like a programme is going to do this in 2007. What do you think you need to do on the technology competencies of Reuters to really manage the vision that you laid out with actual capabilities? Devin Wenig: There are a number of things. Part of it, as I said, is that three years from now you will be able to see the transformation. We are making some pretty big investments this year and next year to work some of that spaghetti out. We still have multiple platforms, some of which came to us through acquisitions. For example, in the US we acquired Bridge, Bridge is on a separate platform. We are working to move them together, and actually, we don’t want it to happen too fast because we think it will be very disruptive. There is a very clear managed plan to get our platforms together to make the company simpler. We have a big development transformation programme underway. We run 31 different development centres, we are getting down to five. All of that is underway. We are concentrating all our core development activities in a few limited centres, and leveraging our Bangkok facility where we now have over 1000 people. Reuters, as I said, is still not perfect. There is work that needs to be done. In general, our technology is good, but it is not unified and it is not simple enough. Some of the issues that you mention are second level effects of complexity. It has been hard to develop things because of multiple platforms, but if you look in the last 18 months – and we measure the stuff pretty carefully – our speed of product release, our quality of product release, our 14 efficiency per our developers has gone up dramatically as we have shrunk the number of centres, and as we have shrunk the number of platforms. We are on the way, but it is going to take more time. I am going to end there, and I hope you can stay on and we can answer some of your questions. Thank you very much. 15
"Everything to Play For"