Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q3 2020 Earnings Presentation
36 slides from Cyfrowy Polsat Sa's earnings presentation, Nov 10, 2020
Slide 1: Financial results Q3'2020
Financial results Q3’2020 10 November 2020 Cyfrowy Polsat S.A. Capital Group
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 Q3’20 2. Operating results 3. Financial results 4. Summary and Q&A
Slide 4: 1. Key events in Q3'20
1. Key events in Q3’20 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 5: Key events in Q3'20
Key events in Q3’20 We have acquired control and embarked on fast integration of Interia.pl within Polsat Group We have acquired control and hold 100% of shares in the broadcaster of Fokus TV and Nowa TV channels We have started the review of strategic options regarding the potential sale of our mob
Slide 6: 2. Operating results
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Slide 7: 2.1 Media segment: TV and online
2.1 Media segment: TV and online Stanisław Janowski President of the Management Board, Telewizja Polsat
Slide 8: Strong position in the online business in Q3'20
Strong position in the online business in Q3’20 Average monthly number of users • We are a leading Internet Q3'19 (millions of RU) 20.8 21.0 Q3'20 20.0 20.9 publisher in Poland thanks to 18.5 16.4 16.0 15.5 15.0 the acquisition of Interia 9.9 • Our leading position in the web media: 18.5m users and
Slide 9: Viewership of our channels in Q3'20
Viewership of our channels in Q3’20 • Polsat’s main channel is the Audience shares(1) unquestioned viewership leader 9.4% Main channels Thematic channels 9.1% in the commercial group 15.2% 16.7% 5.6% 5.2% 8.2% Polsat TVN TVP2 TVP1 POLSAT(2) Discovery TVP Dynamics of audience share results(1) Q3'19 Q
Slide 10: Position on the advertising market in Q3'20
Position on the advertising market in Q3’20 Market expenditures on TV advertising • The dynamics of advertising and and sponsorship sponsorship revenues of TV Polsat 888 -2.2% Group above the market trend 869 • As a result, our share in the TV (mPLN) advertising and sponsorship market increased to 2
Slide 11: Viewership of our channels in 9M'20
Viewership of our channels in 9M’20 • Viewership of Polsat Group Audience shares(1) channels in line with the Main channels Thematic channels strategy 14.1% 17.0% 9.5% 9.6% 6.4% 5.7% 8.1% Polsat TVN TVP2 TVP1 POLSAT(2) Discovery TVP Dynamics of audience share results(1) 9M'19 26.8% 26.6% 9M'20 24.3%
Slide 12: Position on the advertising market in 9M'20
Position on the advertising market in 9M’20 Market expenditures on TV advertising • The dynamics of advertising and and sponsorship sponsorship revenues of TV Polsat 3,057 -15.5% Group in line with the market 2,582 trend that reflects the effects of (mPLN) the spring lockdown • As a result, our shar
Slide 13: 2.2 B2C and B2B services segment
2.2 B2C and B2B services segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 14: Over million customers of multiplay offer
Over 2 million customers of multiplay offer Number of multiplay customers • Consistent implementation of +5% our multiplay strategy results 1,947 2,028 2,048 100% 2 000 in a stable increase in the 90% 80% number of customers with 1 500 (thous. customers) 70% 60% 36% 37% bundled services by 100K YoY
Slide 15: More than 15 million provided contract services
More than 15 million provided contract services • Increase in the number of contract +4% services by 581K YoY 14.59m 14.98m 15.17m 1.8m 1.8m • Dynamic growth of voice services was 1.8m driven by the successful 5.0m 5.0m 5.0m implementation of our strategy of cross-selling and focusing on customer sa
Slide 16: Growth of ARPU thanks to the multiplay strategy
Growth of ARPU thanks to the consistent implementation of the multiplay strategy • 2.5% YoY increase in ARPU 95 300% resulting from the consistent +2.5% 90 86.5 86.9 building of the value of the 84.8 85 existing customer base and an 80 2.72 increase in revenues from 2.68 interconnection settlements
Slide 17: Fast rebuilding of the scale of provided prepaid services
Fast rebuilding of the scale of provided prepaid services 2.68m 2.67m • Good sales of voice services 2.53m following the lockdown as well as high interest in VOD services translate into stabilization of the prepaid base • Growing ARPU driven, among Q3'19 Q2'20 Q3'20 others, by a higher number of Tel
Slide 18: 3. Financial results
3. Financial results Katarzyna Ostap-Tomann CFO, Cyfrowy Polsat
Slide 19: Results of the Group in Q3'20
Results of the Group in Q3’20 revenue EBITDA and adjusted EBITDA1 +3.8% 3,004 +6.0% 1,0821 2,892 1,021 1,079 Q3'19 Q3'20 3Q'19 3Q'20 LTM FCF net debt/EBITDA LTM +2.2% 1,364 2.91x 2.85x 1,334 Q4'19 Q3'20 Q4'19 Q3'20 Source: Consolidated financial statements for the 9-month period ended 30 September 2
Slide 20: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers Revenue Adjusted EBITDA 1 and EBITDA +4% +6% +6% YoY change YoY change +58 m +112 m +61 m 75 41 3,004 2,892 40 1,082 1,079 -4 1,021 21 -3 2% 42% (mPLN) (mPLN) 35% 36% 36% Revenue B2C and B2B Media Consolidation Revenue EBITDA B2C and B2B Media Adjusted COVID-1
Slide 21: Stable cash generation
Stable cash generation mPLN Q3’20 9M’20 Adjusted FCF after interest Net cash from operating activities 870 2.223 Higher Higher Advance smartphone No increase settlement of EBITDA CAPEX Net cash used in investing activities -817 -1.361 purchases in CIT 2019 growth installments receivables Payment of
Slide 22: High level of cash enables dividend payout of PLN 640 million
High level of cash enables dividend payout in the amount of PLN 640 million FCF 9M’20: PLN 836m -867.6 2,223.1 -595.7 (mPLN) CAPEX1 /revenue 9.0% 1,000.0 -822.9 -493.4 1,164.2 -32.4 753.1 Cash and cash Net cash Net cash used in Payment of Acquisition Bonds issue Repayment Other Cash and cash equival
Slide 23: The Group's debt
The Group’s debt mPLN Carrying amount Debt structure4 as at 30 Sep. 2020 by instrument type by currency SFA (Tranche A and B) 9.291 Bonds Revolving Credit Facility (RCF) 335 18% Series B and C Bonds 2.000 PLN 100% Leasing and other 1.442 Banking debt 82% Gross debt 13.068 Cash and cash equivalents1
Slide 24: 4. Summary and Q&A
4. Summary and Q&A Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 25: Summary
Summary Excellent results of the multiplay strategy: over 2m customers / 581K new services (RGUs) / ARPU growth to PLN 86.9 / record low churn of 6.1% up! Strong financial performance: over PLN 3bn in revenue, 3Q'19 3Q'20 EBITDA growth by 6% YoY, stable and low debt level (2.85x) We have started the
Slide 26: 5. Additional information
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Slide 27: 5.1 Impact of COVID-19 on the activities of Polsat Group
5.1 Impact of COVID-19 on the activities of Polsat Group
Slide 28: Our business has demonstrated high resistance to COVID-19 disruptions
Our business has demonstrated high resistance to the disruptions caused by COVID-19 • Our diversified and subscription-based business model assures predictable and stable revenue streams • Continued high demand for communication services and home entertainment has not suffered, even in spite of the
Slide 29: COVID-19 exerts both positive and negative pressure on our financials
COVID-19 exerts both positive impact and negative pressure on our financials positive impact factors • Demand for bigger data bundles due to higher • Uncertainties as regards the duration of the data usage as a result of remote work and home coronavirus pandemic and its ultimate impact on education,
Slide 30: 5.2 Financial results Q3'20
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Slide 31: Results of the segment of B2C and B2B services
Results of the segment of B2C and B2B services mPLN Q3’20 YoY change • Stabilization of retail revenue, high level of IC settlements, good Revenue 2,590 75 3% sales of equipment and early results of solar panel sales have Operating costs(1) 1,646 48 3% resulted in significant growth of revenue, tran
Slide 32: Results of the media segment
Results of the media segment mPLN Q3’20 YoY change • Clear rebound on the TV advertising market, combined with Revenue 482 41 9% the consolidation of the results of Interia.pl, has translated into Operating costs(1) 348 5 1% dynamic growth of revenue for the segment Adjusted EBITDA(2) 135 40 42% • S
Slide 33: Revenue structure
Revenue structure mPLN • Higher wholesale revenues as a result of increase in advertising revenue, associated mainly with consolidation of Interia Group 1,624 results from July 2020, was further supported by substantially Retail revenue 0% higher interconnect revenue, resulting from the growth of vo
Slide 34: Operating costs structure
Operating costs structure mPLN • Higher technical costs and cost of settlements with Technical costs and cost of settlements 609 6% telecommunication operators mainly from higher interconnect with telecommunication operators 576 costs on higher volumes of outgoing traffic, which was Depreciation, a
Slide 35: 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 36: Contact Investor Relations
Contact Investor Relations Konstruktorska 4 02-673 Warsaw Phone: +48 (22) 426 85 62 / +48 (22) 356 65 20/ +48 (22) 337 93 14 Email: ir@cyfrowypolsat.pl www.grupapolsat.pl