Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q2 2021 Earnings Presentation
34 slides from Cyfrowy Polsat Sa's earnings presentation, Aug 19, 2021
Slide 1: Financial results Q2'21
Financial results Q2’21 19 August 2021
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: Agenda
Agenda 1. Key events in Q2’21 2. Operating results 3. Financial results 4. Summary and Q&A
Slide 4: Key events in Q2'21
Key events in Q2’21 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 5: Key events in Q2'21
Key events in Q2’21 • We have finalized the sale of Polkomtel Infrastruktura to Cellnex Telecom • We are dynamically building the best 5G network in Poland – already >15 million of Poles are within the coverage of 5G from Plus • We have finalized the acquisition of Netia in order to continue buildin
Slide 6: Harmonization of Polsat Plus Group brands
Harmonization of Polsat Plus Group brands connectivity content 5G • postpaid voice • 5G Internet • satellite technology (DTH) • prepaid services • IPTV • fiber-optic • OTT • service/application • service/application • paid service • free service
Slide 7: Examples of the use of new brands in BTL materials
Examples of the use of new brands in BTL materials
Slide 8: Operating results
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Slide 9: Media segment: TV and online
Media segment: TV and online Stanisław Janowski President of the Management Board, Telewizja Polsat
Slide 10: The number of users of our Internet portals exceeds 20 million
The number of users of our Internet portals exceeds 20 million • We are a leading Internet publisher in Poland AVERAGE MONTHLY NUMBER OF USERS thanks to the acquisition of Interia.pl (millions of RU) 20.3 21.1 21.8 1.29 21.7 17.2 16.7 16.9 17.6 • Our leading position in the online media: 10.8 − 20.3
Slide 11: Viewership of our channels in Q2'21
Viewership of our channels in Q2’21 • TV Polsat Group and its main TV channel AUDIENCE SHARES(1) among the audience leaders in the Main channels Thematic channels 9.2% commercial group despite the temporary 8.9% 6.4% 15.5% 16.2% 5.8% impact of the European Football 7.4% Championship 2020 Polsat TVN
Slide 12: Position on the advertising market in Q2'21
Position on the advertising market in Q2’21 • The dynamics of advertising and sponsorship MARKET EXPENDITURES ON TV ADVERTISING revenues of TV Polsat Group above market AND SPONSORSHIP + 48.7% 1,156 trend, which was influenced by the low 778 (mPLN) benchmark (the effect of the first COVID-19 lockdow
Slide 13: Viewership of our channels in H1'21
Viewership of our channels in H1’21 • Viewership of TV Polsat Group channels in AUDIENCE SHARES(1) line with the strategy Main channels Thematic channels 9.1% 9.2% 16.4% 15.1% 6.2% 6.1% 7.2% Polsat TVN TVP1 TVP2 POLSAT (2) Discovery TVP DYNAMICS OF AUDIENCE SHARE RESULTS(1) 26.9%25.6% 23.1%24.2% 21.
Slide 14: Position on the advertising market in H1'21
Position on the advertising market in H1’21 • The dynamics of advertising and sponsorship MARKET EXPENDITURES ON TV ADVERTISING revenues of TV Polsat Group above market AND SPONSORSHIP + 21.3% trend 1,713 2,078 (mPLN) • As a result, our share in the TV advertising and sponsorship market increased to
Slide 15: B2C and B2B services segment
B2C and B2B services segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 16: 2.1 million customers of the multiplay offer
2.1 million customers of the multiplay offer • Consistent implementation of our multiplay NUMBER OF MULTIPLAY CUSTOMERS strategy results in a stable increase in the +3% (thous. customers) 2500 65% 2,028 2,077 2,096 60% number of customers with bundled services 2000 55% 1500 50% by 67K YoY 1000 36% 3
Slide 17: Our customers use an increasing number of contract services
Our customers use an increasing number of contract services +3% 14.98m 15.43m • Increase in the number of contract services 15.36m by 447K YoY 1.8m 1.8m 1.8m • Dynamic growth of voice services driven by 5.0m 5.0m 5.0m the successful implementation of our strategy of cross-selling and focusing on cus
Slide 18: Growth of ARPU thanks to the consistent implementation of our multiplay strategy
Growth of ARPU thanks to the consistent implementation of our multiplay strategy • 5.7% YoY increase in ARPU resulting 95 +5.7% 91.4 4 90.5 from the consistent building of the value 90 86.5 4 of the existing customer base 85 3 80 • (ARPU in PLN) Effective upselling of products under our 2.79 2.82 3
Slide 19: Growth of ARPU with a stable base of prepaid services
Growth of ARPU with a stable base of prepaid services • Stable base of prepaid services results PREPAID RGU from good sales of mobile services with 2.53m 2.74m 2.60m seasonally lower VOD viewing • Increase in the ARPU level results from an increase in revenues from content and Q2'20 Q1'21 Q2'21 tele
Slide 20: Financial results
Financial results Katarzyna Ostap-Tomann CFO, Cyfrowy Polsat
Slide 21: Results of the Group in Q2'21
Results of the Group in Q2’21 REVENUE EBITDA AND ADJUSTED EBITDA1 +10.4% 3,160 +13.9% 1,141 1,002 +18.8% 2,863 960 Q2'20 Q2'21 Q2'20 Q2'21 LTM FCF NET DEBT/EBITDA LTM +7.6% 1,371 2.80x 2.77x 1,274 Q4'20 Q2'21 Q4'20 2Q'21 Source: Consolidated financial statements for the 6-month period ended 30 June
Slide 22: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers REVENUE Adjusted EBITDA1 and EBITDA +14% | +139m 1,141 +10% | +297m 3,160 +19% | +181m 2,863 -3 1,002 +158 960 +67 +142 +72 +42 (mPLN) (mPLN) 35% 36% 34% EBITDA margin Revenue B2C and B2B Media Consolidation Revenue EBITDA COVID-19- Adjusted B2C and B2B Media EB
Slide 23: Growing operating CF finances fast roll-out of 5G network
Growing operating CF finances fast roll-out of 5G network ADJUSTED FCF AFTER INTEREST mPLN Q2’21 6M’21 • Advance • EBITDA EBITDA EBITDA • EBITDA settlement of Net cash from operating activities 730 1.619 CIT 2019 growth growth growth growth • Increased • Reduction • Asseco Net cash used in investing
Slide 24: Investment in eobuwie.pl, purchase of Netia shares and dividend paid translate into a temporary reduction in cash
Investment in eobuwie.pl, purchase of Netia shares and dividend paid translate into a temporary reduction in cash FCF 6M’21: PLN 635m -658.0 (mPLN) 1,618.7 -354.3 CAPEX1 /revenue 10.9% -681.2 1,365.8 -415.7 764.03 -90.0 -21.3 95.5 668.5 Cash and cash Net cash Net cash used in Payment of Acquisition
Slide 25: The Group's debt
The Group’s debt DEBT STRUCTURE4 Carrying amount by instrument type by currency mPLN as at 30 June 2021 Bonds 18% SFA (Tranche A and B) 9,117 Banking debt PLN 82% 100% Revolving Credit Facility (RCF) 445 Series B and C Bonds 1,999 Leasing and other1 1,481 Gross debt 13,041 DEBT MATURING PROFILE4 As
Slide 26: Summary & Q&A
Summary & Q&A Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 27: Summary & Q&A
Summary & Q&A • Very good results of the strategy focused on improving loyalty and building customer value: 2.1 million customers of multiplay services / 447K new RGUs/ ARPU growth by PLN 5 to the level of PLN 91.4 / low churn 7.0% • Very dynamic growth of revenues by 10% and adjusted EBITDA by 14%
Slide 28: Additional information
Additional information
Slide 29: Results of the segment of B2C and B2B services
Results of the segment of B2C and B2B services YoY • Healthy condition of contract and prepaid mPLN Q2’21 ARPU translates into increasing growth of change retail revenues Revenue 2,661 6% • As a result we achieved another quarter of Operating costs(1) 1,698 2% significant increase in EBITDA in the B
Slide 30: Results of the media segment
Results of the media segment YoY • The double-digit dynamics of revenue growth mPLN Q2’21 is the result of the dynamic rebound of the TV change ad market from a low point of reference (the Revenue 570 38% effect of the first lockdown) and the consolidation of Interia.pl results Operating costs(1) 38
Slide 31: Revenue structure
Revenue structure mPLN • Increase in retail revenue mainly as a result of the successful 1,665 execution of our strategy aimed at building customer value, which Retail revenue 1,592 5% has been reflected in high dynamics of ARPU growth from both contract and prepaid customers. • Higher wholesale r
Slide 32: Operating costs structure
Operating costs structure mPLN • Lower depreciation, amortization, impairment and liquidation Technical costs and cost of settlements 633 with telecommunication operators 636 1% costs mainly due to the ceased recognition of depreciation, starting from March 2021, of assets held for sale in connect
Slide 33: Glossary
Glossary RGU (Revenue Single, active service of pay TV, Internet Access or mobile telephony provided in contract or prepaid model. Generating Unit) Natural person, legal entity or an organizational unit without legal personality who has at least one active service Customer provided in a contract mod
Slide 34: 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