Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q1 2022 Earnings Presentation
35 slides from Cyfrowy Polsat Sa's earnings presentation, May 12, 2022
Slide 1: Financial results Q1'22
Financial results Q1’22 12 May 2022
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 MEMBER OF THE MGMT BOARD, CFO PRESIDENT, TELEWIZJA POLSAT 3
Slide 4: Agenda
Agenda 1. Key events in Q1’22 2. Operating results 3. Financial results 4. Summary and Q&A
Slide 5: Key events in Q1'22
Key events in Q1’22 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 6: Key events in Q1'22
Key events in Q1’22 ● Q1’22 was a time of significant geopolitical and macroeconomic changes (galloping inflation, growing interest rates, disrupted supply chains) ● We were effectively implementing our multiplay strategy and building customer value while consistently keeping churn at a low level ●
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: The number of users of our Internet portals increased to over 21 million
The number of users of our Internet portals increased to over 21 million ● We are a leading Internet publisher in Poland Average monthly number of users thanks to the acquisition of Interia.pl 20.2 21.2 21.7 22.1 21.6 22.5 17.1 17.6 17.6 18.5 (millions of RU) ● Our leading position in the online med
Slide 10: Viewership of our channels in Q1'22
Viewership of our channels in Q1’22 ● Our main channel is the viewership leader in Audience shares the commercial group (16-59 age group) Main channels Thematic channels 8.3% 7.9% 16.9% 14.9% 5.8% 5.5% 9.6% Polsat TVN TVP1 TVP2 POLSAT (2) Discovery TVP Dynamics of audience share results 24.4% 23.2%
Slide 11: Position on the advertising market in Q1'22
Position on the advertising market in Q1’22 Market expenditures on TV advertising ● The dynamics of advertising and sponsorship and sponsorship revenues of TV Polsat Group in line with the +0.5% 956 960 market trend (mPLN) ● As a result, our share in the TV advertising and sponsorship market amounte
Slide 12: B2C and B2B services segment
B2C and B2B services segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 13: Almost 2.5 million customers of the multiplay offer
Almost 2.5 million customers of the multiplay offer ● Consistent implementation of our multiplay Number of multiplay customers1 strategy results in a stable increase in the +3% (thous. customers) 3000 2,462 65% 2,389 2,457 number of customers with bundled services 2500 60% 55% 2000 by 73K YoY 1500 4
Slide 14: Our B2C customers use an increasing number of contract services
Our B2C customers use an increasing number of contract services ● Increase in the number of contract services Number of RGUs in the B2C contract segment by 207K YoY +2% 13.17m 13.47m 13.38m ● Dynamic growth of mobile services driven 2.0m 2.0m 2.0m by the successful implementation of our strategy of
Slide 15: ARPU growth in B2C thanks to the consistent implementation of our multiplay strategy
ARPU growth in B2C thanks to the consistent implementation of our multiplay strategy and popularization of 5G tariffs 74 3 72 3 ● 3.9% YoY increase in ARPU resulting from +3.9% 69.8 the consistent building of the value of the 70 69.1 2 existing customer base 68 67.2 2 ● 66 Effective upselling of pro
Slide 16: Growing base and ARPU of prepaid services
Growing base and ARPU of prepaid services ● Rapid acceleration in the number of provided Prepaid RGU prepaid mobile telephony services is related 2.74m 2.67m 2.83m to the support action in the form of distribution of free starters enabling free communication for the newly arrived refugees from Ukrai
Slide 17: High base and stable ARPU of B2B customers
High base and stable ARPU of B2B customers ● Polsat Plus Group serves 68.9 thous. B2B Number of B2B customers customers, successfully maintaining the size 68.8k 68.9k 68.9k of this base ● Successively expanded offer of communication and ICT services enables us Q1'21 Q4'21 Q1'22 to maintain ARPU from
Slide 18: Clean energy segment
Clean energy segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 19: Fast growth of the clean energy segment has gained a totally new dimension
Fast growth of the clean energy segment has gained a totally new dimension in the face of geopolitical challenges faced by Europe Goal #1: We want – jointly with ZE PAK – to become a leading producer of clean, green energy biomass solar wind on-shore thermal waste treatment wind off-shore SMR Goal:
Slide 20: We dynamically implement activities aimed at developing our new business segment – Clean Energy
We dynamically implement activities aimed v2 at developing our new business segment – Clean Energy ● We have obtained access to cable pooling for PV and gas installations in Przykona ● We have received confirmation from contractors building our on-shore wind power plants (27MW in 2 plants planned fo
Slide 21: Financial results
Financial results Katarzyna Ostap-Tomann CFO, Cyfrowy Polsat
Slide 22: Results of the Group in Q1'22
Results of the Group in Q1’22 Revenue EBITDA adjusted for IC delta adjusted, excl. NetCo result and costs of supporting Ukraine1 +3.1% 2,987 -11.8% 907 801 2,897 Q1'21 Q1'22 Q1'21 Q1'22 LTM FCF Net debt/EBITDA LTM 1,442 -13.3% 1.01x 1.07x 1,249 Q4'21 Q1'22 Q4'21 Q1'22 Source: Consolidated financial
Slide 23: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers Revenue EBITDA adjusted, excl. NetCo result and costs of supporting Ukraine1 +3% | +90m (excl. IC delta) 1,083 2,987 0% | +1m (incl. IC) 2,987 907 -11.8% | -107m +65 +26 -90 -175 801 767 -57 -50 -34 (mPLN) (mPLN) 36% 30% 27% 26% EBITDA margin Revenue reduction
Slide 24: Macroeconomic factors and new investments are reflected in the level of generated FCF
Macroeconomic factors and new investments are reflected in the level of generated FCF Adjusted FCF after interest mPLN Q1’22 Switching to the capex light model EBITDA • EBITDA Net cash from operating activities 579 growth growth • UMTS fee Increased • Decline in • Asseco inventory liabilities divide
Slide 25: Polsat Plus Group's strong liquidity position enables cash support to accelerate RES projects
Polsat Plus Group's strong liquidity position enables cash support to accelerate the implementation of RES projects FCF 3M’22: PLN 160m PLN 3,644.3 578.8 -322.7 -130.7 -6.4 3,353.7 -13.0 -192.7 CAPEX1 -200.0 -3.9 /revenue 10.9% (mPLN) Cash and Net cash Net cash used in Payment of Concessions Acquisi
Slide 26: The Group's debt
The Group’s debt Debt structure Carrying amount by instrument type by currency mPLN as at Bonds 31 March 2022 19% SFA (Tranche A and B) 8,560 Banking debt PLN 81% 100% Revolving Credit Facility (RCF) 0,0 Bonds 2,035 Leasing and other 671 Gross debt 11,266 Debt maturing profile As at 31 March 2022 Ca
Slide 27: Summary and Q&A
Summary and Q&A Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 28: Summary & Q&A
Connectivity Summary & Q&A ● 2022 has brought significant geopolitical and macroeconomic challenges ● We have been effectively implementing our multiplay strategy and our operating performance has translated into stable, recurring growth of Content retail revenue ● We focus on maintaining our high c
Slide 29: Additional information
Additional information
Slide 30: Results of the segment of B2C and B2B services
Results of the segment of B2C and B2B services YoY ● The high pace of ARPU growth translates mPLN Q1’22 into recurring growth of retail revenue, change which compensates for the loss of Revenue 2,526 -1% wholesale revenue due to regulatory reductions of MTR/FTR rates Operating costs(1) 1,827 13% ● E
Slide 31: Results of the media segment
Results of the media segment YoY ● The healthy growth of revenue from sale mPLN Q1’22 change of advertising space and sponsoring on our TV channels and Internet portals Revenue 534 5% suffered a temporary slowdown in March Operating costs(1) 433 20% as a result of uncertainties caused by the war in
Slide 32: Revenue structure
Revenue structure mPLN ● Increase in retail revenue mainly as a result of the successful 1,722 execution of our strategy aimed at building customer value, Retail revenue 1,664 4% which is reflected in high dynamics of ARPU growth, as well as the consolidation of the results of Premium Mobile from
Slide 33: Operating costs structure
Operating costs structure mPLN ● Higher technical costs and cost of settlements with Technical costs and cost of settlements 810 telecommunication operators mostly due to the recognition of costs with telecommunication operators 625 30% resulting from the agreement on using the mobile infrastructu
Slide 34: 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 35: Investor Relations
Investor Relations Cyfrowy Polsat S.A. Konstruktorska 4 02-673 Warszawa Tel.: +48 (22) 426 85 62 +48 (22) 356 65 20 +48 (22) 337 93 14 Email: ir@cyfrowypolsat.pl https://grupapolsatplus.pl