Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q1 2021 Earnings Presentation
31 slides from Cyfrowy Polsat Sa's earnings presentation, May 13, 2021
Slide 1: Financial results Q1'21
Financial results Q1’21 13 May 2021 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 Q1’21 2. Operating results 3. Financial results 4. Summary and Q&A 3
Slide 4: 1. Key events in Q1'21
1. Key events in Q1’21 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 5: Key events in Q1'21
Key events in Q1’21 We are in the process of preparation for the finalization of the innovative transaction concerning the sale of active and passive infrastructure with Cellnex Telecom In line with our promise we are dynamically rolling out the first true 5G network – already 12 milion inhabitants
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: The number of users of our Internet portals has exceeded million
The number of users of our Internet portals has exceeded 20 million Average monthly number of users • We are a leading Internet Q1'20 Q1'21 (millions of RU) 21.7 21.7 21.9 21.6 publisher in Poland thanks to 2 0 .2 18.6 17.1 17.0 17.6 the acquisition of Interia 9 .8 • Our leading position in the onli
Slide 9: Viewership of our channels in Q1'21
Viewership of our channels in Q1’21 • Polsat Group and its main TV Audience shares(1) channel among the audience 9 .3% Main channels 9.3% Thematic channels leaders in the commercial group 14.8% 16.5% 6.4% 6.0% 7.1% Polsat TVN TVP2 TVP1 POLSAT(2) Discovery TVP Dynamics of audience share results (1) Q
Slide 10: Position on the advertising market in Q1'21
Position on the advertising market in Q1’21 Market expenditures on TV advertising • The dynamics of advertising and and sponsorship sponsorship revenues of TV Polsat -1.3% Group above market trend 933 921 • As a result, our share in the TV (mPLN) advertising and sponsorship market increased to 29.5%
Slide 11: 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 12: Over million customers of our multiplay offer
Over 2 million customers of our multiplay offer Number of multiplay customers • Consistent implementation of +3% our multiplay strategy results 2,012 2,065 2,077 45% 2 000 in a stable increase in the 43% (thous. customers) 41% 37% 38% number of customers with 1 500 36% 39% 37% bundled services by 65
Slide 13: Our customers use an increasing number of contract services
Our customers use an increasing number of contract services • Increase in the number of contract +4% services by 561K YoY 14.80m 15.37m 15.36m 1.8m 1.8m • Dynamic growth of voice services 1.8m was driven by the successful 5.0m 5.0m 5.0m implementation of our strategy of cross-selling and focusing on
Slide 14: Growth of ARPU thanks to the consistent implementation of our multiplay strategy
Growth of ARPU thanks to the consistent implementation of our multiplay strategy • 6.0% YoY increase in ARPU resulting from the consistent 95 +6.0% 300% 89.9 90.5 building of the value of the 90 85.4 existing customer base and an 85 2.77 2.79 increase in revenues from high 80 demand for entertainmen
Slide 15: Dynamic growth of ARPU and prepaid services base
Dynamic growth of ARPU and prepaid services base 2.64m 2.62m 2.74m • Very good sales of voice services and pay tv translates positively into the scale of the prepaid services base • Increase in the ARPU level as a result of an increase in revenues Q1'20 4Q'20 1Q'21 from content and Telefonia Płatna
Slide 16: 3. Financial results
3. Financial results Katarzyna Ostap-Tomann CFO, Cyfrowy Polsat
Slide 17: Results of the Group in Q1'21
Results of the Group in Q1’21 revenue EBITDA +4.9% +5.5% 1,083 2,849 2,987 1,027 Q1'20 Q1'21 Q1'20 Q1'21 LTM FCF net debt/EBITDA LTM +6.8% 2.80x 1,274 1,360 2.78x Q4'20 Q1'21 Q4'20 Q1'21 Source: Consolidated financial statements for the 3-month period ended 31 March 2021 and internal analyses 17
Slide 18: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers Revenue EBITDA +5 % +5 .5% YoY change YoY change +1 39m +5 6 m 97 46 2,987 57 1,083 2,849 -5 1,027 -1 (mPLN) (mPLN) 36% 36% Revenue B2C and B2B Media Consolidation Revenue EBITDA B2C and B2B Media EBITDA Q1'20 services segment adjustments Q1'21 Q1'20 services segm
Slide 19: Growing operating CF finances fast roll-out of 5G network
Growing operating CF finances fast roll-out of 5G network mPLN Q1’21 Adjusted FCF after interest Net cash from operating activities 889 Advance No increase settlement of EBITDA EBITDA EBITDA Net cash used in investing activities -374 in CIT 2019 growth growth growth installments Payment of interest
Slide 20: High FCF and the payment of the second tranche of dividend result in a stable level of cash
High FCF and the payment of the second tranche of dividend result in a stable level of cash FCF 3M’21: PLN 353m -374.2 889.0 -185.2 CAPEX 1 1,365.8 /revenue -415.7 1 1.2% 1,267.32 (mPLN) -12.4 1 0 8.5 1,158.8 Cash and cash Net cash Net cash used in Payment of Dividend payment Other Cash and cash equ
Slide 21: The Group's debt
The Group’s debt mPLN Carrying amount Debt structure4 as at 31 March 2021 by instrument type by currency SFA (Tranche A and B) 9,309 Bonds Revolving Credit Facility (RCF) 335 18% Series B and C Bonds 1,998 PLN 100% Leasing and other1 1,545 Banking debt Gross debt 1 3 ,187 82% Cash and cash equivalen
Slide 22: 4. Summary and Q&A
4. Summary and Q&A Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 23: Summary
Summary Excellent results of our strategy aimed at building loyalty and value of our customers: almost 2.1 million multiplay customers / 561 thous. new services / ARPU growth by over PLN 5 up to PLN 90.5 / stable, low churn of 6.7% We offer the fastest, the widest and the best 5G in Poland. We alrea
Slide 24: 5. Additional information
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Slide 25: 5.1 Financial results Q1'21
© __ 5.1 Financial results Q1’21 plus¢ Qipla NE Tt A intena
Slide 26: Results of the segment of B2C and B2B services
Results of the segment of B2C and B2B services mPLN Q1’21 YoY change • Healthy condition of contract and prepaid ARPU translates Revenue 2,551 4% into increasing growth of retail revenues Operating costs(1) 1,618 2% • As a result we achieved another quarter of significant EBITDA 937 6% increase in E
Slide 27: Results of the media segment
Results of the media segment mPLN Q1’21 YoY change • Stable beginning of the year on the TV ad market combined with Revenue 507 10% the consolidation of Interia.pl results translates into an increase Operating costs(1) 362 16% in revenues of the media segment • As a result we achieved a stable EBITD
Slide 28: Revenue structure
Revenue structure mPLN • Increase in retail revenue mainly as a result of the successful execution of our strategy aimed at building customer value 4% and also due to high sales of our pay TV services, which has 1,664 Retail revenue been reflected in high dynamics of ARPU growth from both 1,605 co
Slide 29: Operating costs structure
Operating costs structure mPLN • Higher technical costs and cost of settlements with Technical costs and cost of settlements 625 4% with telecommunication operators 601 telecommunication operators mainly on the back of the introduction from January 2021 of a new capacity fee, which Depreciation, a
Slide 30: 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 31: 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