Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q4 2024 Earnings Presentation
51 slides from Cyfrowy Polsat Sa's earnings presentation, Apr 10, 2025
Slide 1: Financial results Q4'24 / FY2024
Financial results Q4’24/ FY2024 10 April 2025
Slide 2: Speakers
Speakers MIROSŁAW BŁASZCZYK KATARZYNA OSTAP-TOMANN MACIEJ STEC PRESIDENT OF THE MANAGEMENT CFO, MEMBER OF THE MANAGEMENT VICE-PRESIDENT FOR STRATEGY BOARD BOARD FOR ESG 2
Slide 3: Agenda
Agenda 1. Key events in 2024 2. Operating results 3. Financial results 4. Summary of 2024 and objectives for 2025
Slide 4: Key events in 2024
Key events in 2024 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 5: Connectivity
Connectivity ● Consistent implementation of our strategy is reflected in growing ARPU per B2C customer by +4.8% and per B2B customer by +3.4% and falling churn to only 7% ● We are steadily expanding the 5G Plus network – already 26 million people, that is 70% of Poland's population, are within range
Slide 6: Media
Media ● Very good viewership results of our TV channels with a 22% market share ● Polsat-Interia Group was the leader among internet publishers in Poland in 2024 ● We have strengthened our programming offer in the key segment of sports rights with broadcasting rights of exceptional sports events: −
Slide 7: Green energy and hydrogen
Green energy and hydrogen ● We have launched 2 wind farms in Człuchów and Przyrów, boosting our installed capacity in wind power to 150 MW ● We are dynamically building the Drzeżewo wind farm with a capacity of 139 MW – 32 turbines have already been installed ● We have launched new H2 refueling stat
Slide 8: Finance
Finance ● We have achieved very good financial results in 2024: − Revenue growth of 4.7% to PLN 14.3 bn − Adjusted EBITDA growth of 9.6% to PLN 3.3 bn ● We effectively manage cash flows within our broad portfolio of strategic investments ● In Q1’25, we sold a 10% stake in Asseco Poland and used the
Slide 9: Operating results
Operating results
Slide 10: Media segment: TV and online
Media segment: TV and online Maciej Stec Vice-President for Strategy, Cyfrowy Polsat
Slide 11: Viewership and position in the advertising market in Q4'24
Viewership and position in the advertising market in Q4’24 Audience shares Market expenditures on TV advertising and sponsorship Main channels Thematic channels +2.8% 7.7% 15.2% 14.1% 1,468 1,509 7.5% (mPLN) Group share 4.7% 4.6% 6.8% 28.3% 28.0% Polsat TVN TVP1 TVP2 POLSAT 1) Warner TVP Q4'23 Q4'24
Slide 12: Viewership and position in the advertising market in 2024
Viewership and position in the advertising market in 2024 Audience shares Market expenditures on TV advertising and sponsorship Main channels Thematic channels +5.9% 7.1% 7.6% 15.4% 4,684 4,960 14.9% (mPLN) 5.2% 4.8% Group share 7.2% 28.4% 28.0% Polsat TVN TVP1 TVP2 POLSAT 1) Warner TVP 2023 2024 Br
Slide 13: We are effectively building our position in the online market
We are effectively building our position in the online market Average monthly number of users ● Polsat-Interia Group #1 on the internet market 20.8 20.8 21.1 20.3 21.2 20.7 in 2024 among publishers in Poland1) 18.9 (millions of RU) 16.6 17.0 15.4 ● In 2024, Polsat-Interia Group remains the leader in
Slide 14: We focus on producing attractive content and strengthening our sports offer
We focus on producing attractive content and strengthening the offer of our sports channel Attractive original content translates into very good Super strong sports offer for the coming years viewership results of our channels 14
Slide 15: B2C and B2B services segment
B2C and B2B services segment Maciej Stec Vice-President for Strategy, Cyfrowy Polsat
Slide 16: Over 2.5 million customers use our multiplay offering
Over 2.5 million customers use our multiplay offering Number of multiplay customers ● High and stable base of multiplay customers +2.4% despite challenging market conditions 3000 65% (thous. customers) 2,456 2,494 2,516 60% ● 2500 Increase in the multiplay customer base by 2000 42% 43% 44% 55% 50% 6
Slide 17: We provide over 13m contract services
We provide over 13m contract services Number of RGUs in the B2C contract segment ● Very good sales of mobile telephony services, +191k YoY +1.0% ● Increase in mobile and fixed internet 13.08m 13.13m 13.21m services provided by 95k YoY 2.0m 2.1m 2.1m ● Pressure on the pay TV service base partially mi
Slide 18: ARPU growth in B2C thanks to multiplay strategy and 5G tariffs
ARPU growth in B2C thanks to the consistent implementation of our multiplay strategy and popularization of 5G tariffs +5.2% ● 5.2% YoY rise in ARPU is driven by strong 77.2 77.4 73.6 3 sales of mobile voice and internet services 70 3 to both new and existing customers 60 2 ● Effective upselling of p
Slide 19: High base and stable ARPU of prepaid services
High base and stable ARPU of prepaid services ● We maintain a high base of prepaid services Prepaid RGU1 at the level of 2.5 million despite strong 2.65m 2.57m 2.47m market competition ● High, stable ARPU at the level of PLN 17.3 Q4'23 Q3'24 Q4'24 Mobile telephony Internet Pay TV ARPU1) -0.6% 17.4 1
Slide 20: High base and growing ARPU of B2B customers
High base and growing ARPU of B2B customers ● We provide services to 68 thousand B2B Number of B2B customers customers, successfully maintaining the scale 68.8k 68.3k 68.2k of this base ● ARPU per B2B customer increased by 4.6% YoY, reaching PLN 1,530 monthly in a highly Q4'23 Q3'24 Q4'24 competitiv
Slide 21: Green energy segment
Green energy segment Maciej Stec Vice-President for Strategy, Cyfrowy Polsat
Slide 22: Goal #1: Achieved We are a leading producer of clean, green energy
Goal #1: Achieved We are a leading producer of clean, green energy biomass solar wind on-shore Completed Completed Completed 105 MW 82 MW 297 MW (incl. 139 MW by the end of 2025) Within just 5 years, we will reach over 1,700 GWh of clean, green energy production capacity by investing PLN 3.9 bn (PLN
Slide 23: Goal #2: Achieved We have built a complete green hydrogen value chain
Goal #2: Achieved We have built a complete green hydrogen value chain production of storage and distribution of green energy end-user products green hydrogen transportation green hydrogen Solar energy Completed Completed Completed Completed Completed Wind energy 2.5 MW electrolyser with a 10 hydroge
Slide 24: Dynamic growth of energy production by c.64%
Dynamic growth of energy production by c.64% due to expanding capacity for wind energy generation Renewable energy production ● Green energy production increased by 64% +64% YoY to 295 GWh in Q4’24 following the 295 [GWh] commissioning of 123 MW at the Człuchów 116 150 169 179 and Przyrów wind farms
Slide 25: Already PLN 282m of EBITDA of the green energy segment in 24
Already PLN 282m of EBITDA of the green energy segment in 2024 EBITDA ● Higher EBITDA in Q4’24 is due to the expansion of capacity to 338 MW (from (mPLN) 215 MW at the end of 2023), favourable 79 biomass supply conditions, and a stable regulatory environment -1 Q4'23 Q4'24 ● Increase in EBITDA of th
Slide 26: We maintain our goal of PLN 500m EBITDA in 2026
We maintain our goal of PLN 500m EBITDA in 2026 with significantly lower expenditures by PLN 1.1bn Strategy 2023+ Implementation Outlook 2026 2024 EBITDA PLN 500-600m PLN 282m c. PLN 500m In 48 % line with annually from 2026 in 2024 in 2026 strategy Energy 2 TWh 1 TWh 1.7 TWh production annually in
Slide 27: Financial results
Financial results Katarzyna Ostap-Tomann CFO, Member of the Management Board for ESG, Cyfrowy Polsat
Slide 28: Financial results of the Group
Financial results of the Group Revenue EBITDA Net profit +4.0% 3,827 +15.3% +28.7% 3,682 781 168 677 -41 -0.4 130 +9.3% (mPLN) (mPLN) (mPLN) 677 740 Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Adjustment of profit from Impairment on inventories of the sale of Asseco shares photovoltaic modules +4.7% 13,626
Slide 29: FCF and net debt/EBITDA in 2024
FCF and net debt/EBITDA in 2024 LTM FCF1) Net debt/EBITDA LTM (excl. project financing) +290% 1,303 3.51x 3.59x 334 2023 2024 2023 2024 Note: (1) FCF adjusted for capex in the green energy segment 29
Slide 30: Revenue and EBITDA – change drivers in Q4'24
Revenue and EBITDA – change drivers in Q4’24 Revenue EBITDA +15.3% | +104m 781 +4.0% | +146m 740 3,827 +2 3,682 677 677 -41 +17 -6 +8 +87 +39 +73 +0.4 -9 -43 +81 (mPLN) (mPLN) 20% 18% 18% 19% EBITDA margin Revenue Przychody B2C and Media Green energy Real Consolidation Revenue Przychody EBITDA E
Slide 31: Revenue and EBITDA – change drivers in 2024
Revenue and EBITDA – change drivers in 2024 Revenue EBITDA +4.7% | +640m 14,266 +9.6% | +288m 3,438 13,626 3,300 +1 3,231 +76 +677 3,012 +10 -136 +22 +72 +5 +128 -220 -61 +14 +258 (mPLN) (mPLN) 24% 24% 22% 23% EBITDA margin Przychody Revenue B2C and Media Green energy Real Consolidation Przy
Slide 32: FCF in 2024 impacted by higher EBITDA and interest costs
FCF in 2024 impacted by higher EBITDA with continued pressure from high interest costs 127 Inlcl. 361 NWC change -2 174 3 300 (mPLN) 926 1 303 -1 422 209 -212 550 378 0 -169 EBITDA Change in Cash used in Interests, FCF LTM Telco Acquisitions2) Proceeds Adjusted Green Adjusted FCF NWC, tax investing
Slide 33: Capex under control: capex/revenue in TMT only 6%
Capex "under control": capex/revenue in TMT only 6%, high investments in profitable green energy segment Capex by segment in Q4’24 ● In the TMT1) area, capex/revenue ratio Development Development capex capex remains at 6% 6% 409 394 (mPLN) ● Development capex in the green energy 185 202 segment at P
Slide 34: The Group's debt
The Group’s debt Debt structure Balance value as at (excl. project financing) mPLN as at 31.12.2024 EUR 31 December 2024 Bonds 17% 30% Loans and borrowings, including: 10,458 Bank loans 70% PLN loans and borrowings liabilities excl. project financing1) 9,037 83% project financing liabilities 1,421 B
Slide 35: Summary of 2024 and objectives for 2025
Summary of 2024 and objectives for 2025 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 36: Summary of 2024
Summary of 2024 B2C and B2B services segment ● Consistent implementation of the multiplay strategy focused on building customer value and loyalty – growing ARPU in key customer groups and churn decreasing to 7% ● 26 million residents of Poland – that is 70% – within the range of Plus 5G network ● 11
Slide 37: Goals for 2025
Goals for 2025 o Building ARPU and maintaining a low churn rate based on the multiplay strategy: Telecom and media content, mobile and fibre internet, telephone o Expansion of Plus 5G network based on the 3.6 GHz and 700 MHz bands o Maintaining a very good position in the TV advertising market and h
Slide 38: We consistently implement our long-term multiplay strategy
We consistently implement our long-term multiplay strategy and monetize our investments in green energy Connectivity Content Energy Investments will translate into Business growth driven organically, generating c. PLN 500 million of strong recurring cash flows incremental recurring EBITDA in 2026 Ma
Slide 39: Polsat Q&A
Polsat Q&A
Slide 40: Additional information
Additional information
Slide 41: Results of the B2C and B2B services segment
Results of the B2C and B2B services segment mPLN Q4’24 YoY change ● Increase in retail revenue partly offset by lower Revenue 2,710 1% wholesale revenue from the final regulatory reduction of MTR rates and lower revenue from Operating costs1) 2,183 2% equipment sales ● Operating costs under control
Slide 42: Results of the media segment: television and online
Results of the media segment: television and online mPLN Q4’24 YoY change ● Higher advertising revenue offset by a Revenue 698 -1% decrease in revenue from cable and satellite operators and from the sale of licenses and sublicenses Operating costs1) 587 7% ● Increase in operating costs due to higher
Slide 43: Results of the green energy segment
Results of the green energy segment mPLN Q4’24 YoY change ● The increase in revenue from the sale of Revenue, incl.: 403 2% generated electricity, resulting from the Revenue from sale of generated 157 26% successive expansion of installed capacity in electricity2) wind farms, was partially offset by
Slide 44: Results of the real estate segment
Results of the real estate segment mPLN Q4’24 YoY change ● Increase in revenue and EBITDA as a result of Revenue 145 149% the completion of the residential project in Port Praski at 1-3 Sierakowska St. and transfer of ownership of apartments to customers Operating costs1) 84 42% EBITDA 78 >100% EBIT
Slide 45: Revenue structure
Revenue structure mPLN ● Higher retail revenue mainly due to the effective up-selling of products and 1,810 Retail revenue services to our customer base and an increase in ARPU per B2C contract 1,764 3% customer and B2B customer; ● Lower wholesale revenue mainly due to the recognition of lower 899
Slide 46: Operating costs structure
Operating costs structure mPLN Technical costs and cost of settlements 872 ● Lower depreciation, amortization, impairment and liquidation costs, with telecommunication operators 862 1% primarily as a result of the completion of the amortization of Polkomtel‘s Depreciation, amortization, impairment
Slide 47: Investments in renewable energy sources
Investments in renewable energy sources Kazimierz Biskupi 17.5 MW Drzeżewo 138.6 MW • Production capacity: 60 GWh • Production capacity: 410 GWh • Launched (Q3’23) • Planned launch: Q4’25 Miłosław 9.6 MW Człuchów 72.6 MW • Production capacity: 38 GWh • Production capacity: 230 GWh • Launched (Q3’23)
Slide 48: We have built a complete value chain for green hydrogen
We have built a complete value chain for green hydrogen Electrolyser development NESO H2 refuelling station • Exion Hydrogen Polskie • Gdańsk: operational Elektrolizery • Prototype of a 0.5 MW alkaline • Gdynia: operational electrolyser 2.5 MW PEM Electrolysis plant NESO H2 refuelling station • Prod
Slide 49: Glossary
Glossary RGU (Revenue Single, active and retail revenue generating service of pay TV provided in all types of access technologies, mobile Generating Unit) or fixed-line Internet access, or mobile telephony provided in the contract or prepaid model. A natural person, legal entity or an organizational
Slide 50: Disclaimer
Disclaimer This presentation may include forward-looking statements, understood as all statements (other than statements of historical facts) regarding our financial results, business strategy, plans and objectives pertaining to our future operations (including development plans related to our produ
Slide 51: Investor Relations
Investor Relations Cyfrowy Polsat S.A. Konstruktorska 4 02-673 Warsaw Email: ir@cyfrowypolsat.pl https://grupapolsatplus.pl