Virgilio Gibbon: Hi Marcelo, I got your first question about the idea of the revenues coming around 10%, 10% was mentioned it was regarding more volume than top-line. So when you take a look on our Table number 2 on our release, you can see that medical school Undergrad is moved around 15.5% and around 9% is volume and 6% coming from tuition. And the good news is that in terms of net revenue, we are also seeing organic growth coming from the health science and also for other programs that used to have always a decreasing revenues on this side. So it’s not more hurting the top-line growth as we had in the past because of the restructuring, we are sharing our programs. Now we are more organic. So it’s expected to be — it’s not seasonal as we have a very strong intake not only for medical feeling all the 100% of our seats.
And we have a strong intake for health programs and ex-health during the first quarter. With respect to keeping a very good trend in the first half of 2024 around 13%, 15% coming from the Undergrad segment, okay? Luis will take the second question.
Luis Andre Blanco: Yes. And just to add, Marcelo, to the first one, despite what will have this performance of the first quarter, our expectations regarding the net revenues for 2024 remains the same that we provided in the guidance that can go for R$3.150 billion at the bottom to R$3.250 billion at the top part of the guidance regarding the net revenue. So when we did this color about how would performs per each segment, we just give a color of how in the big numbers, how we would perform between our three segments. So — but our guidance is regarding always the consolidated figures that come from R$3.150 billion to R$3.250 billion for 2024. Having said that, coming to your second question regarding B2B, yes, we have some postponement on recognitions on the medical practice tools. And if we put that on this way, we would be around 20% to 30% growth regarding the same period of the prior year, okay?
Virgilio Gibbon: Just to add here, Marcelo, so in terms of guidance, seeing the overall results from top and bottom line in the first quarter. Of course, there is a positive bias when you compare to the one-year guidance that we released last quarter, but still show in the process. We have the second quarter intake, everything there is still uncertainty. So it’s still soon to admit that we are going to change or not our guidance for 2024, okay?
Marcelo Santos: Perfect. Very clear. And so 20% to 30%, the minus 6% would become 20% to 30%. That’s it Luis?
Luis Andre Blanco: Yes.
Renata Couto: Yes.
Marcelo Santos: Perfect. Very clear. Thank you very much.
Renata Couto: Thank you, Marcelo. [Operator Instructions]. The next question comes from Lucas Nagano from Morgan Stanley. Lucas, you may now go.
Lucas Nagano: Thank you and good evening to participate here. We have some questions related to the Unido acquisition, three to be precise. The first is how you’re planning to fund the acquisition. Second is what is the expected impact on margin once you consolidate when you don’t? I think also you mentioned that you expect this to close on July, right? And the third is, in practical terms, what is the likelihood that those incremental 175 seats are canceled? If you could comment a bit on the stage of this should this process? Thank you.
Luis Andre Blanco: Thanks. Hi Lucas, thank you for your three questions. I will take the three questions. Regarding the funds, we ended the first quarter with more than R$600 million in cash. So we have the funds to pay the down payments related to the acquisitions because we have the cash and we have the cash generation of the second quarter. If we find an opportunity that we find attractive, we would hire additional funding for that. Regarding margins, they — we can expect a little bit of dilution on that. They don’t operate margins that we can operate our Undergrad segment. So we can have these dilutions that will come in this year, but we can expect increasing margins from 2025 ahead, we’re going to work to have a, very quick integrations on Unidompedro to have the integrated as fast as possible to our ecosystem.
And regarding to the 175 seats, they are operating since the beginning 2021 since the first intake. So we have a very positive view regarding the continuation of the seats to be approval. And we put the payment schedule to be 10 years to protect us in a remote possibility to have these seats not being operating. So our view in the base case the seats we’re going to keep operating.
Virgilio Gibbon: Just look to add here, Lucas, first on the second question about the margin impact and how we want to leverage operationally the new campus. Remember that it’s our largest medical program, campus, 300 seats concentrated in one large city with a very high level of tuition. So the capacity that we’ll have to fulfill all the seats available, the vacancy that we are seeing there in a very fast track, as soon as we get the operation closed and improved margins, I think taking what we had as an experience in Uni going to view and also UNIMA that we could leverage 30 percentage points in almost one year. I think we will do something very close to that and reach the same level what we are operating now in the Undergrad business in 2025.
And the 175 seats, I think it’s important to mention here that not we are operating the seats since the beginning. We have the approval, not only in the just but also for the Ministry of Education that recognize it. And all the trends that we are seeing from the Supreme Court is that everything that was approved, considering the current regulation, the Ministry of Education, it’s not canceling, not only for this case here, but all the precedents that we are seeing in the market, it’s quite positive on the direct. So it’s very rare. It’s completely remote, the chance that to be canceled. Even in a worst-case scenario that has happened, we have all the framework that we are paying the installments, protect ourselves in 10 years. And also, we will cancel all the payments at the right moment.
So, that’s the way that we construct the deal, okay?
Renata Couto: Yes. Just a reminder, the first one that they required for those seats was before my medical law. So it was before 2020. And the second reminder that in this worst-case scenario that Virgilio told to stop paying, we still have the positive effect of the students that are already enrolled for the next six years. So we also have the economic benefit without having to pay and increasing our IR.
Luis Andre Blanco:
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Lucas Nagano: Thank you. And also a quick follow-up on the Supreme Court debate. When do you expect them to resume the voting process?
Virgilio Gibbon: It’s expected to happen now in May. Actually, the due date is tomorrow, but we don’t know, they will release or not the voting by tomorrow.
