Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q3 2024 Earnings Presentation
43 slides from Cyfrowy Polsat Sa's earnings presentation, Nov 21, 2024
Slide 1: Financial results Q3'24
Financial results Q3’24 21 November 2024
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 KATARZYNA OSTAP-TOMANN MACIEJ STEC PRESIDENT OF THE MANAGEMENT CFO, MEMBER OF THE MANAGEMENT VICE-PRESIDENT FOR STRATEGY BOARD BOARD FOR ESG 3
Slide 4: Agenda
Agenda 1. Key events in Q3’24 2. Operating results 3. Financial results 4. Summary and Q&A
Slide 5: Key events in Q3'24
Key events in Q3’24 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 6: Key events in Q3'24
Key events in Q3’24 ● We maintained a high rate of ARPU growth in a competitive market: ARPU per B2C customer increased by 5% and per B2B customer by 4%, resulting in retail revenue growth of 3.6% YoY ● We recorded a 12.7% increase in adjusted EBITDA, driven by the implementation of our Strategy 202
Slide 7: Operating results
Operating results
Slide 8: Media segment: TV and online
Media segment: TV and online Maciej Stec Vice-President for Strategy, Cyfrowy Polsat
Slide 9: Viewership and position in the advertising market in Q3'24
Viewership and position in the advertising market in Q3’24 Market expenditures on TV advertising Audience shares and sponsorship Main channels Thematic channels +7.5% 6.7% 7.0% 15.0% 16.1% 998 1,073 6.0% (mPLN) 4.5% share of TV Polsat Group 8.1% 28.9% 27.6% Polsat TVN TVP1 TVP2 POLSAT 1) Warner TVP
Slide 10: Viewership and position in the advertising market in 9M'24
Viewership and position in the advertising market in 9M’24 Market expenditures on TV advertising Audience shares and sponsorship Main channels Thematic channels +7.3% 7.6% 3,216 3,451 7.0% 14.8% 15.9% 5.4% (mPLN) 4.9% share of TV Polsat Group 7.3% 28.5% 28.0% Polsat TVN TVP1 TVP2 POLSAT 1) Warner TV
Slide 11: We are effectively building our position in the online market
We are effectively building our position in the online market ● We have a very strong position in the online Average monthly number of users market: 20.5 19.4 21.4 20.2 21.0 20.2 18.9 17.2 (millions of RU) 16.3 15.0 − 19.4 m users − 1.8 bn page views Polsat-Interia Wirtualna Polska RAS Polska Agora
Slide 12: We are strengthening the offer of our sports channels
We are strengthening the offer of our sports channels BEST SPORT 1) OUR CHANNELS ACCESS ON ALL DEVICES I 12 1 access to selected LALIGA matches; rights shared with another broadcaster
Slide 13: B2C and B2B services segment
B2C and B2B services segment Maciej Stec Vice-President for Strategy, Cyfrowy Polsat
Slide 14: Nearly 2.5 million customers use our multiplay offering
Nearly 2.5 million customers use our multiplay offering ● High and stable base of multiplay customers Number of multiplay customers despite challenging market conditions +2.0% 3000 65% (thous. customers) 2,445 2,477 2,494 ● Increase in the multiplay customer base by 2500 60% 55% 2000 43% 43% 49k YoY
Slide 15: We provide over 13m contract services
We provide over 13m contract services ● Very good sales of mobile services, up by Number of RGUs in the B2C contract segment 165k YoY ● Increase in provided mobile and fixed 13.05m 13.09m 13.13m internet services by 79k YoY 2.0m 2.0m 2,1m ● Pressure on the pay-TV service base partly mitigated by a h
Slide 16: 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 +5.0% ● 5% YoY increase in ARPU is the result of 77.2 73.5 75.2 3 very good sales of mobile and internet 70 services to both new and existing 3 customers 60 2 2 (PLN) ● 50 Effective
Slide 17: High base and stable ARPU of prepaid services
High base and stable ARPU of prepaid services ● We maintain a high base of prepaid Prepaid RGU1) 2.74m 2.61m 2.57m services at 2.6 million RGUs despite strong competition in the market of prepaid telecommunication services ● High, stable level of ARPU Q3'23 Q2'24 Q3'24 Mobile telephony Internet Pay
Slide 18: High base and growing ARPU of B2B customers
High base and growing ARPU of B2B customers ● We provide services to over 68 thous. B2B Number of B2B customers customers, successfully maintaining the scale 68.8k 68.5k 68.3k of this base ● ARPU per B2B customer increased by 4% YoY, to over PLN 1.5 thous. monthly in a Q3'23 Q2'24 Q3'24 highly compe
Slide 19: Green energy segment
Green energy segment Maciej Stec Vice-President for Strategy, Cyfrowy Polsat
Slide 20: 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 Technical commissioning of the Energy from biomass 105 MW completed Green hydrogen 2.5MW
Slide 21: Dynamic growth of energy production by ca. 57%
Dynamic growth of energy production by ca. 57% due to growing energy generation capacity from wind Renewable energy production ● Green energy production increased by 57% +57% YoY 301 [GWh] YoY in Q3’24 following the commissioning of 188 191 157 123 MW at the Człuchów and Przyrów wind 81 6 28 32 farm
Slide 22: EBITDA of the green energy segment exceeds PLN 200m in 9M'24
EBITDA of the green energy segment already exceeds PLN 200m in 9M’24 alone Electricity production and average price in Q3’24 ● In Q3’24, we sold 301 GWh of electricity 301 GWh Production at an average price of PLN 594/MWh 594 PLN/MWh 188 [GWh] ● In 9M’24, we sold 722 GWh of electricity Average price
Slide 23: Implementing Strategy 2023+ by increasing installed RES capacity
We are dynamically implementing our Strategy 2023+ by increasing installed capacity in RES as planned Installed capacity in RES 752 [MW] 492 350 +2.5x 337 90 RES installed 82 capacity 297 297 150 2x vs. 2023 105 105 105 2024 2025 2026 Potential energy production capacity 1,759 2,009 1,316 92 342 100
Slide 24: Financial results
Financial results Katarzyna Ostap-Tomann CFO, Member of the Management Board for ESG, Cyfrowy Polsat
Slide 25: Results of the Group in Q3'24
Results of the Group in Q3’24 Revenue EBITDA adjusted1) Net profit excl. asset disposal +3.6% +14.4% 886 3,456 3,580 +144.4% 250 14 +12.7% (mPLN) 873 (mPLN) (mPLN) 775 102 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Asset disposal (IPv4 address package) LTM FCF2) Net debt/EBITDA LTM (excl. project financing
Slide 26: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers Revenue EBITDA 995 +3.6% | +124 m +12.7% | +98 m 886 3,580 873 3,456 -14 -1 +112 775 +1 +2 +14 +37 -10 +56 -220 +61 -22 (mPLN) (mPLN) 29% 24% 25% 22% EBITDA margin Revenue Przychody B2C and Media Green energy Real Consolidation Revenue Przychody EBITDA EBITDA
Slide 27: LTM FCF impacted by higher EBITDA and high interest costs
LTM FCF impacted by higher EBITDA with continued pressure from high interest costs 287 Incl. 574 NWC change -2 189 (mPLN) 3 166 94 1 103 -1 478 320 -211 0 2 2 4 2 Adjusted Change in Cash used in Interests, FCF LTM Telco Acquisitions1) Proceeds Adjusted Green Adjusted FCF EBITDA LTM NWC, tax investin
Slide 28: Capex under control: capex/revenue in TMT only 6%
Capex "under control": capex/revenue in TMT only 6%, high investments in profitable green energy segment Capex by segment in Q3’24 ● In the TMT1) area, capex/revenue ratio Development Development remains at 6% capex capex 6% 6% ● (mPLN) Investments in renewable energy sources 183 199 302 277 require
Slide 29: The Group's debt
The Group’s debt Debt structure Balance value as at (excl. project financing) mPLN as at 30.09.2024 EUR 30 September 2024 Bonds 16% 30% Loans and borrowings, including: 10,573 Bank loans 70% PLN loans and borrowings liabilities excl. project financing1) 9,188 84% project financing liabilities 1,385
Slide 30: Summary & Q&A
Summary & Q&A Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 31: Summary
Summary B2C and B2B services segment ● We are consistently building value and loyalty of our customers, which is reflected in growing ARPU of B2C (+5%) and B2B (+4%) customers and low churn rate (7.2%) ● Strong operating performance translates into retail revenue growth (+3.6%) Media segment: TV and
Slide 32: Polsat Q&A
Polsat Q&A
Slide 33: Additional information
Additional information
Slide 34: Results of the B2C and B2B services segment
Results of the B2C and B2B services segment mPLN Q3’24 YoY change ● Increase in retail revenue partly offset by lower Revenue 2,682 1% wholesale revenue from the final regulatory reduction of MTR rates Operating costs1) 2,008 1% ● Operating costs under control with continued pressure on network main
Slide 35: Results of the media segment: television and online
Results of the media segment: television and online mPLN Q3’24 YoY change ● Level of revenue influenced by lower revenue Revenue 546 -3% from the sale of TV sublicences ● Lower operating costs mainly due to lower Operating costs1) 401 -16% content costs (lack of costs related to UEFA Champions Leagu
Slide 36: Results of the green energy segment
Results of the green energy segment mPLN Q3’24 YoY change Revenue, incl.: 367 -3% ● The increase in revenue from the sale of Revenue from sale of generated 178 25% generated electricity, resulting from the electricity2) successive expansion of installed capacity in Revenue from resale of electricity
Slide 37: Results of the real estate segment
Results of the real estate segment mPLN Q3’24 YoY change ● The real estate segment mainly comprises the Revenue 39 -3% development of construction projects, as well as the sale, lease and management of owned or leased properties Operating costs1) 27 -18% ● Expected recognition of revenue and costs f
Slide 38: Revenue structure
Revenue structure mPLN ● Higher retail revenue mainly as a result of increased ARPU per B2C 1,817 Retail revenue contract customer and per B2B customer; 1,755 4% ● Lower wholesale revenue mainly due to the recognition of lower interconnection revenue, resulting from the final regulatory reduction
Slide 39: Operating costs structure
Operating costs structure mPLN Technical costs and cost of settlements 870 ● Increase in technical costs and cost of settlements with with telecommunication operators 838 4% telecommunication operators mainly as a result of increased costs Depreciation, amortization, impairment 303 related to mobi
Slide 40: Green energy segment
Green energy segment RES investments will increase installed capacity to >330 MW in 2024 and >740 MW in 2026 Kazimierz Biskupi 17.5 MW Drzeżewo 38. MW • Production capacity: 60 GWh • Production capacity: 410 GWh • Launched (Q3’23) • Planned launch: Q4’25 Miłosław 9. MW Człuchów 72. MW • Production c
Slide 41: Green energy segment
Green energy segment We are dynamically building a complete value chain based on green hydrogen Electrolyser development NESO H2 refueling station • Exion Hydrogen Polskie • Gdańs : operational Elektrolizery • Gdańs • Gdynia: operational • Testing phase 2.5 MW PEM Electrolysis plant NESO H2 refuelin
Slide 42: 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 43: Investor Relations
Investor Relations Cyfrowy Polsat S.A. Konstruktorska 4 02-673 Warsaw Email: ir@cyfrowypolsat.pl https://grupapolsatplus.pl