Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q2 2023 Earnings Presentation
42 slides from Cyfrowy Polsat Sa's earnings presentation, Aug 17, 2023
Slide 1: Financial results Q2'23
Financial results Q2’23 17 August 2023
Slide 2: 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 3: Speakers
Speakers MIROSŁAW BŁASZCZYK MACIEJ STEC KATARZYNA OSTAP-TOMANN STANISŁAW JANOWSKI PRESIDENT OF THE MGMT BOARD VICE-PRESIDENT FOR STRATEGY CFO PRESIDENT, TELEWIZJA POLSAT 3
Slide 4: Agenda
Agenda 1. Key events in Q2’23 2. Operating results 3. Financial results 4. Summary and Q&A
Slide 5: Key events in Q2'23
Key events in Q2’23 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 6: Key events in Q2'23
Key events in Q2’23 ● Despite the difficult market situation, we posted growing ARPU in all customer segments: B2C, B2B and prepaid, and churn remains at a low level ● We are building our position in the media segment through the acquisition of naEKRANIE.pl and 3 4FUN TV channels ● We acquired a con
Slide 7: Operating results
Operating results
Slide 8: Media segment: TV and online
Media segment: TV and online Stanisław Janowski President of the Management Board, Telewizja Polsat
Slide 9: We are effectively building our position in the market of Internet portals
We are effectively building our position in the market of Internet portals ● We are a leading Internet publisher in Average monthly number of users Poland thanks to the acquisition of 20.8 21.0 21.8 22.8 21.7 21.5 17.9 19.4 17.7 17.4 (millions of RU) Interia.pl ● Our leading position in the online m
Slide 10: Viewership of our channels in Q2'23
Viewership of our channels in Q2’23 ● Good viewership results of TV Polsat Group Audience shares channels in Q2'23 despite the negative Main channels Thematic channels impact of refarming to the DVB-T2 standard 7.8% 7.9% 5.6% 14.2% 15.6% 5.4% 8.9% ● We are expanding our portfolio to 42 channels – in
Slide 11: Position in the advertising market in Q2'23
Position in the advertising market in Q2’23 Market expenditures on TV advertising ● Dynamics of advertising and sponsorship and sponsorship revenues of TV Polsat Group in line with the +4.3% market trend 1.153 1.202 (mPLN) ● As a result, our share in the TV advertising and sponsorship market amounte
Slide 12: Viewership of our channels in 1H'23
Viewership of our channels in 1H’23 ● Good viewership results of TV Polsat Group Audience shares channels in 1H'23 despite the negative Main channels Thematic channels 8.2% 15.1% impact of refarming to the DVB-T2 standard 7.9% 5.9% 5.6% 14.0% 8.7% Polsat TVN TVP2 TVP1 POLSAT (2) Warner TVP Bros.Disc
Slide 13: Position in the advertising market in 1H'23
Position in the advertising market in 1H’23 Market expenditures on TV advertising ● Dynamics of advertising and sponsorship and sponsorship revenues of TV Polsat Group in line with the +4.1% 2.211 market trend 2.123 (mPLN) ● As a result, our share in the TV advertising and sponsorship market amounte
Slide 14: B2C and B2B services segment
B2C and B2B services segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 15: We maintain a high base of multiplay customers
We maintain a high base of multiplay customers ● High base of multiplay customers despite Number of multiplay customers1 challenging market conditions (thous. customers) 3000 65% 2,460 2,462 2,450 60% ● 2500 As a result of the consistent implementation 2000 42% 55% 50% 41% 42% of the multiplay strat
Slide 16: We provide 13.1m services to contract B2C customers
We provide 13.1m services to contract B2C customers ● We maintain a high, stable number of Number of RGUs in the B2C contract segment mobile telephony and Internet access -2% services 13.35m 13.16m 13.08m 2.0m 2.0m 2.0m ● At the same time – in line with our earlier statements – the number of provide
Slide 17: 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 74 +2.3% 3 ● 2.3% YoY increase in ARPU results from 71.4 71.8 72 3 the consistent building of the value of the 70.2 70 existing customer base despite unfavorable 2 68 market conditio
Slide 18: High base and growing ARPU of prepaid services
High base and growing ARPU of prepaid services ● Stable base of prepaid services Prepaid RGU 2.77m 2.69m 2.66m ● The YoY decrease in the number of provided prepaid mobile telephony services is related to a high reference point due to the support provided to refugees from Ukraine in 1H’23 in Q2'22 Q1
Slide 19: Stable base and growing ARPU of B2B customers
Stable base and growing ARPU of B2B customers ● We serve 69 thous. B2B customers, Number of B2B customers successfully maintaining the scale of this 68.8k 69.3k 69.0k base ● Successively expanded offer of communication and ICT services enables us Q2'22 Q1'23 Q2'23 to increase ARPU from our B2B custo
Slide 20: Clean energy segment
Clean energy segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 21: We want to become a leading producer of clean, green energy and green hydrogen
We want to become a leading producer of clean, green energy and green hydrogen Goal #1: Goal #2: We want to become a leading We want to become a leading producer of clean, green energy producer of green hydrogen 21
Slide 22: We are dynamically implementing strategic initiatives related to clean energy
We are dynamically implementing strategic initiatives related to the production of clean energy ENERGY FROM BIOMASS SOLAR ENERGY ON-SHORE WIND ENERGY 100 MW 280 MW >296 MW ENERGY FROM WASTE PROCESSING Block #1 Brudzew Miłosław Rybnik Installed capacity: 55 MW Installed capacity: 70 MWp Insta
Slide 23: We are building the full value chain of an economy based on green hydrogen
We are building the full value chain of an economy based on green hydrogen GREEN HYDROGEN STORAGE AND TRANSPORT GREEN HYDROGEN PRODUCTS FOR END-USERS PRODUCTION DISTRIBUTION First 2.5 MW electrolyzer Hydrogen trailer with H2 refueling station in We won the tender for 150 H2 cars are in use
Slide 24: Executing Strategy 2023+ in green energy and green hydrogen
We are dynamically executing our Strategy 2023+ in the green energy and green hydrogen segment Production of the first NesoBuses for Rybnik H2 compressor | Electrolyser
Slide 25: Executing Strategy 2023+ in green energy and green hydrogen
We are dynamically executing our Strategy 2023+ in the green energy and green hydrogen segment Prototype of our Polish electrolyser
Slide 26: Financial results
Financial results Katarzyna Ostap-Tomann CFO, Cyfrowy Polsat
Slide 27: Results of the Group in Q2'23
Results of the Group in Q2’23 Revenue EBITDA Net profit +1.9% 3,290 -10.6% -97.1% 893 283 799 3,228 (mPLN) (mPLN) (mPLN) 8 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 LTM FCF Net debt/EBITDA LTM -24.6% 768 3.26x 579 2.86x (mPLN) 2022 LTM 6M'23 Q4'22 Q2'23 Source: Consolidated financial statements for the 6-
Slide 28: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers Revenue EBITDA -11% | -95m +2% | +62m 893 3,290 3,228 799 +29 +32 -5 +6 -114 +14 +2 +4 (mPLN) (mPLN) 28% 24% EBITDA margin Revenue B2C and Media Real Consolidation Revenue EBITDA B2C and Media Real Consolidation EBITDA Q2'22 B2B segment: estate adjustments Q2'23 Q
Slide 29: We generated a solid stream of FCF despite pressure from high interest rates and inflation
We generated a solid stream of FCF despite pressure from high interest rates and inflation mPLN Q2’23 6M’23 Adjusted FCF after interest Net cash from operating activities 940 1,240 • Inflationary • UMTS fee • Increase in • Increase in • Inflationary pressure on (EUR 31m) installment interest pressur
Slide 30: Debt refinancing ensures high cash levels
Debt refinancing ensures high cash levels -853.8 1,088.03 3,478.5 -209.7 -9.8 FCF 6M’23: PLN 344m 2,395.2 -418.4 1,239.7 CAPEX1 /revenue: 7.9% -570.5 817.8 (mPLN) - TMT segment: 7.8% - Real estate segment: 15.7% Cash and cash Net cash Net cash used Payment of Net loans and Bonds issue Concessions Ne
Slide 31: The Group's debt
The Group’s debt Debt structure as at 30 June 2023 Carrying amount by instrument type by currency mPLN as at EUR Bonds 30 June 2023 25% 18%1 SFA (PLN and EUR Tranche) 9,446 Banking debt1 Revolving Credit Facility (RCF) 1,004 75% PLN Bonds (Series B, C and D) 3,284 82% Leasing and other 517 Gross deb
Slide 32: Summary & Q&A
Summary & Q&A Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 33: Summary
Summary ● We are consistently implementing our multiplay strategy, which is reflected in growing ARPU and low churn ● We recorded excellent financial results in the media segment – revenue grew by 5% and EBITDA grew by 10% ● We successfully refinanced the Group's debt in a difficult debt market and
Slide 34: Polsat Q&A
Polsat Q&A
Slide 35: Additional information
Additional information
Slide 36: Results of the segment of B2C and B2B services
Results of the segment of B2C and B2B services mPLN Q2’23 YoY change ● Increase in revenue supported by very strong Revenue 2,700 1% sales of equipment and revenue generated from activities on the photovoltaics market Operating costs(1) 2,048 6% ● Inflationary pressure and increase in electricity co
Slide 37: Results of the media segment
Results of the media segment mPLN Q2’23 YoY change ● Revenue under the positive impact of growing Revenue 639 5% revenue from advertising and from cable/satellite operators Operating costs(1) 483 4% ● Content production is our competitive edge therefore we continue to invest in attractive EBITDA 157
Slide 38: Results of the real estate segment
Results of the real estate segment mPLN Q2’23 YoY change ● The real estate segment mainly focuses on Revenue 39 -12% construction projects but it also includes sale, rental and management of own and leased property Operating costs(1) 35 -19% ● The sale of apartments in a new investment stage in Port
Slide 39: Revenue structure
Revenue structure mPLN 1,735 ● Lower wholesale revenue results from the decrease in Retail revenue 1,726 1% interconnection revenue, due to the gradual regulatory reduction of MTR rates, which was compensated to a significant extent by higher advertising and sponsorship 859 Wholesale revenue reven
Slide 40: Operating costs structure
Operating costs structure mPLN Technical costs and cost of settlements 824 ● Increase in technical costs and cost of settlements with with telecommunication operators 808 2% telecommunication operators caused mainly by higher Depreciation, amortization, impairment 469 and liquidation 468 0% networ
Slide 41: 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 42: Investor Relations
Investor Relations Cyfrowy Polsat S.A. Konstruktorska 4 02-673 Warsaw Email: ir@cyfrowypolsat.pl https://grupapolsatplus.pl