Mac Schuessler: Vasu that’s an incredibly insightful question. So we are deliberately going through all of the repricing, and we’re looking at all of the contracts. I would say the combination. We have some immediate opportunities to reprice contracts, and we are — some of the repricing could be predicated on some improvements that we need to make in investments. So — but some of those investments we can make very, very quickly, and they’re already in the plan for 2024. I mean what we’re going to do around — that’s in the guide today is it impacts this year, but it will be both. This is something we can do immediately. Some will require investment. And some may require longer-term investments. So it’s going to be a blend.
But there is definitely an opportunity to increase the margins of the business and to do more with our customers as we make these investments. Technology spend in Brazil, I think was your second question. I mean, look, this is one of the most dynamic markets in the world as it relates to technology. I had met with the President of the Justice System. They’re actually using artificial intelligence now to make judicial decisions. I mean to make case decisions, but with judicial oversight. Then you’ve got techs and open AI and what’s going on in banking. So there’s so much change going on in financial services and such a need for financial institutions to keep up and with those changes, the technology providers like Sinqia are incredibly important to the market.
And that I feel that and I hear that from our customers. They want us to be able to help keep up with them as the market changes and as they are putting new products in the market. So I think it’s a great opportunity for EVERTEC and Sinqia.
Vasu Govil : A quick one for you, Joaquin. Just I got the number, 27% transaction increase in ATH Móvil. Any color on what drove that trend? And anything onetime in that? Or do you expect that type of strength to continue?
Joaquín Castrillo: No. I mean, look, it’s mostly ATH Móvil Business. What I would say is that, that actually has been consistent. I think what for us continues to be very positive, that’s coming off of strong growth historically, right? So we — this is on top of very good growth last year. Again, we did have some seasonality in the first quarter, because of the leap year and Easter kind of getting pushed into the first quarter. But the business continues to perform well, and it continues to drive some growth through the Payment Puerto Rico segment.
Operator: The next question comes from Jamie Friedman with Susquehanna.
Jamie Friedman : Congratulations on the results. Mac, I wanted to go back to some of your prepared comments about the macro environment, which is so helpful in Puerto Rico, in particular, you referenced here that unemployment had a very low 5.7%, the employment rate, the highest since 2009 and travels up. I’m just wondering, I know it’s hard to tell, but what’s your confidence level that we wind up staying here? And is that macro tailwind embedded in the guidance?
Mac Schuessler: So look, given your specific guidance, Joaquin, I’ll let you kind of talk about how you blend that in.
Joaquín Castrillo: Jamie, yes, I mean, look, we actually — this is consistent is what I would say to what we expected. And I think we’re reiterating the fact that the macreconomic environment in Puerto Rico is supportive of what we’re trying to accomplish from a growth perspective. If you look at the details that we actually provided last quarter where we even went further and put some incremental stats and graphs, I think that was the baseline, and we’re really reiterating that we believe that we have a good background to deliver on the numbers that we have just guided to.
Mac Schuessler: I mean the thing I would add is that there’s a lot of ambiguity about what’s going on with the economy today anyway, right? If you look at the current labor numbers in the U.S., what are people going to do with interest rates. It’s hard to predict what next year is going to look like at the next year, depending on who you talk to. Keep in mind, Puerto Rico is a little bit different. So a big part of our economy are still federal subsidies for people that are on welfare. We still have money to come in from the hurricane. So we do have an underlying sort of economic stimulus that’s a little bit more sheltered than you might find in the U.S. But it is — look, I mean we can’t predict the Puerto Rico economy into ’25 and ’26 any more than people can in the U.S., but you do have some stimulus here that is unique and helpful.
Jamie Friedman : And then for my follow-up, Mac, I’m just curious now that you’re 6 months in with Sinqia, and you’re spending so much time in Brazil. And I realize Brazil is one of the most dynamic markets you said it earlier. But at a very high level, how does it feel to be like instead of the big fish in a small pond, normal fish in a big ocean?
Mac Schuessler: It’s a great question. So I mean, I would say on a personal level, I mean, look, I ran the Global Payments International business. I did business in China, did business in Russia and India. So I mean that’s a dynamic that on a personal level, I’ve seen before and managed through. What I would tell you, though, and this is one of the reasons Sinqia was so attractive is it is one of the larger technology companies in Brazil. So Brazil is an incredibly exciting market. It’s an incredibly evolving market. But the reason Sinqia such a great asset is because it is one of the larger technology companies. And that’s why we had the confidence to move into Brazil with a specific purchase versus going in with a much smaller company that didn’t have the credibility, they didn’t have the leadership team and they didn’t have the track record and the industrial strength products already proven.
So it is similar to me in EVERTEC and that people in Puerto Rico wanted to do business with EVERTEC because of our — the products that we have, because of the presence we have, because of the commitment we have to the island. There’s a similar affinity for Sinqia as well in Brazil. It does remind me a little bit of EVERTEC and that we need to focus on operational excellence and delivery in Brazil with our — with Sinqia, but it is a very relevant player in the market. When I meet with executives and leaders and financial services, even bank, even CEOs of banks in other countries, they were aware who Sinqia is. They know the legacy and the history and they have an understanding of we’re capable of. So there are some similarities of the strength of EVERTEC in Puerto Rico with the strength of Sinqia in Brazil.
