Operator: We will now take the next question. It comes from the line of David Wright from Bank of America.
David Wright: Hello, guys, can you hear me okay?
Jose MarÃa Alvarez-Pallete: Yes, we can hear you, David.
David Wright: Sorry, apologies with my mute function. Two very quick questions. The first is perhaps just for Laura. Just if you could give us a little guidance on where you expect cash tax and working capital to trend through 2023, please? And then secondly, my question is a little bit more strategic, perhaps for Lutz and maybe also for José MarÃa and Angel. But on VMO2, it seems quite an aggressive recapitalization that seems more predicated on the synergies. The actual revenue growth of VMO2, I think, is — continues to labor, and there doesn’t seem to be any monetization of the price rises in the U.K. And it also seems like you are very, very behind the curve on your 2028 rollout ambitions. So I think even with the Q4 run rate, you would only manage about 750,000 lighting lines, and you obviously need a run rate of €3 million a year to make that target.
So is there not a likelihood of an increased CapEx? And therefore, I come back to my original question, why would you relever so aggressively when the fundamentals remain a little bit more unproven and there is a CapEx hike ahead? And of course, that higher leverage doors come into the group leverage from the agency. So it just seems a little back to front to me. So if you could explain that thinking.
Laura Abasolo: Thank you, David. Taking the first question on tax — cash tax and working capital. I used to say that cash tax was more predictable. But these days, with a super positive tax refunds and payments in advance we have to do in Spain is less, is less so. But looking at ’23, ’24, we see that our tax cash rate could be along 23% more or less. Obviously, then we may have some one-offs but that should be the structural cash tax payment. In working capital, we continue doing our usual activities. I mean working capital sometimes is affected by the spectrum because we do not pay all of it and it continues flowing through working capital. In the past, we also have a positive impact from the UDCL review in Brazil. But excluding that, we — it’s just CapEx seasonality and deferred payments.
We are not doing any supply financing. We have some handset financing, but very, very low numbers. So — and I would tell, we still expect working capital to contribute positively to the free cash flow, but not in huge amounts, and we are not seeing worsening conditions in the actions along working capital. So I would say quite business as usual and similar trends what you’ve seen, excluding spectrum and the Brazilian tax recovery in 2022 and 2021.
Lutz Schüler: Should I answer the Virgin Media O2 question? Okay, David. So first of all, on the revenue side, although it’s flat for the year, the underlying service revenue is actually growing, and therefore, the underlying gross margin is growing. So it’s not really flat. And as you can see from our guidance, we are more positive for ’23. So we are — from a flat year in overall revenue, we are guiding revenue growth into ’23. From your CapEx investment assumption, I’m not so sure if I can follow that because we have actually disclosed lighting numbers for fiber rollout but we are not behind because we have not disclosed so far the cable fiber upgrade numbers. So we have upgraded to fiber more than 1 million homes this year, and we will upgrade to fiber, including network expansion next year, 1.5 million homes.
