Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q1 2024 Earnings Presentation
42 slides from Cyfrowy Polsat Sa's earnings presentation, May 23, 2024
Slide 1: Financial results Q1'24
Financial results Q1’24 23 May 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 KATARZYNA OSTAP-TOMANN MIROSŁAW BŁASZCZYK MACIEJ STEC PIOTR ŻAK CFO, MEMBER OF THE MANAGEMENT PRESIDENT OF THE MGMT BOARD VICE-PRESIDENT FOR STRATEGY PRESIDENT, TELEWIZJA POLSAT BOARD FOR ESG 3
Slide 4: Agenda
Agenda 1. Key events in Q1’24 2. Operating results 3. Financial results 4. Summary and Q&A
Slide 5: Key events in Q1'24
Key events in Q1’24 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 6: Key events in Q1'24
Key events in Q1’24 B2C and B2B services segment ● ARPU is growing in all customer segments: B2C +4.5%, B2B +3.9% and prepaid +1.2%, and we maintain low churn ● We are increasing 5G network coverage – already 23 million people are within our 5G Plus network coverage and 6 million people are within o
Slide 7: Operating results
Operating results
Slide 8: Media segment: TV and online
Media segment: TV and online Piotr Żak President of the Management Board, Telewizja Polsat
Slide 9: Viewership and position in the advertising market in Q1'24
Viewership and position in the advertising market in Q1’24 Market expenditures on TV advertising Audience shares and sponsorship Main channels Thematic channels +9.0% 8.1% 16.1% 1,001 1,092 7.1% 14.4% (mPLN) 5.2% 4.7% share of TV Polsat Group 6.5% 28.4% 28.1% Polsat TVN TVP2 TVP1 POLSAT 1) Warner TV
Slide 10: We are effectively building our position in the market of Internet portals
We are effectively building our position in the market of Internet portals ● We have a very strong position in the online Average monthly number of users market 21.2 21.0 23.2 21.1 22.1 20.7 18.5 18.0 18.7 (millions of RU) 16.6 ● Our leading position in the online media: − 21.0 m users Polsat-Interi
Slide 11: Content – our strategy
Content – our strategy We focus on the creation of unique Polish content OUR CHANNELS UNIQUE PRODUCTIONS ACCESS ON ANY DEVICE 11
Slide 12: B2C and B2B services segment
B2C and B2B services segment Maciej Stec Vice President for Strategy, Cyfrowy Polsat
Slide 13: Nearly 2.5 million customers use our multiplay offering
Nearly 2.5 million customers use our multiplay offering ● High base of multiplay customers despite Number of multiplay customers challenging market conditions 3000 65% (thous. customers) 2,462 2,456 2,466 60% ● 2500 As a result of the consistent implementation 2000 42% 43% 55% 50% 42% of the multipl
Slide 14: We provide over 13m contract services
We provide over 13m contract services ● High, stable number of mobile telephony Number of RGUs in the B2C contract segment and Internet access services -0.7% ● The growing number of TV services 13.16m 13.08m 13.08m provided in IPTV and OTT technologies 2.0m 2.0m 2.0m partially offsets the decline in
Slide 15: 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 +4.5% ● 4.5% YoY increase in ARPU results from 74.6 71.4 73.6 3 the consistent building of the value of the 70 3 existing customer base 60 2 ● Effective upselling of products as part
Slide 16: High base and growing ARPU of prepaid services
High base and growing ARPU of prepaid services ● We maintain a high base of prepaid Prepaid RGU1) 2.69m 2.65m 2.62m services at 2.6 million services ● ARPU growth of 1.2% YoY (after exclusion of low-margin promotional package in Polsat Box Go) in a highly Q1'23 Q4'23 Q1'24 competitive market Mobile
Slide 17: 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 69.3k 68.8k 68.4k of this base ● The successively expanded offer of communication and ICT services enables us Q1'23 Q4'23 Q1'24 to increase AR
Slide 18: Green energy segment
Green energy segment Maciej Stec Vice President for Strategy, Cyfrowy Polsat
Slide 19: 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 Człuchów wind farm NesoBus and hydrogen station in Rybnik Brudzew photovoltaic farm Prot
Slide 20: Strategic initiatives related to the production of clean energy
We are dynamically implementing strategic initiatives related to the production of clean energy ENERGY FROM BIOMASS SOLAR ENERGY ON-SHORE WIND ENERGY ENERGY FROM WASTE 100 MW >340 MW >296 MW PROCESSING Block #1 Cambria/Brudzew Miłosław Rybnik Capacity: 55 MW 100% Capacity: 82.4 MWp / Output:
Slide 21: Building a complete value chain based on green hydrogen
We are building a complete value chain of an economy based on green hydrogen GREEN HYDROGEN STORAGE AND TRANSPORT GREEN HYDROGEN PRODUCTS FOR END-USERS PRODUCTION DISTRIBUTION First 2.5 MW electrolyzer Hydrogen trailer with H2 refueling station in Won tender for delivery 150 H2 cars are in
Slide 22: We have started production from all energy sources under Strategy 2023+
We have started production from all energy sources under our Strategy 2023+ ● In Q1’24, we produced 199 GWh of green Renewable energy production energy: 135 GWh from biomass, 12 GWh from the sun and 52 GWh from wind 140.0 135.1 ● Only in Q1'24 our 100 MW in wind generated 52 GWh of green energy 199
Slide 23: We sold green energy for PLN 130 million in Q1'24 alone
We sold green energy for PLN 130 million in Q1'24 alone Average price of electric energy sold in Q1’24 ● In Q1'24, we sold 199 GWh of produced electricity at an average price of 199 GWh PLN 651/MWh Production 135 ● EBITDA of the green energy segment in Q1'24 at PLN 47m 651 PLN/MWh 52 [GWh] Average p
Slide 24: Increasing installed capacity in RES as planned
We are dynamically implementing our Strategy 2023+ by increasing installed capacity in RES as planned Installed capacity in RES 744 [MW] 484 342 +2.5x 338 82 RES installed 82 capacity 297 297 150 vs. 2023 105 105 105 2024 2025 2026 Potential energy production capacity 1,750 2,000 1,316 83 333 100% 8
Slide 25: Financial results
Financial results Katarzyna Ostap-Tomann CFO, Member of the Management Board for ESG, Cyfrowy Polsat
Slide 26: Results of the Group in Q1'24
Results of the Group in Q1’24 Revenue EBITDA adjusted1) Net profit excl. asset disposal +6.4% 3,405 +23.0% 936 +159.6% 184 3,199 761 164 +1.5% (mPLN) (mPLN) (mPLN) 772 71 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Disposal assets (IPv4 address package) FCF LTM Net debt/EBITDA LTM (excl. project financing)
Slide 27: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers Revenue EBITDA 946 +6.4% | +206m 3,405 +1.5% | +11m 3,199 -5 761 772 -61 -7 +2 +10 +164 -99 +17 +354 -29 -2 +47 incl. own energy sales: 129m (mPLN) energy resale: 173m (mPLN) 28% 24% 23% EBITDA margin Revenue Przychody B2C and Media Green energy Real Consoli
Slide 28: FCF LTM impacted by high interest costs
FCF LTM impacted by high interest costs Incl. +79 NWC change (mPLN) incl. 92 refinancing cost 91 M&A, net 0 Adjusted Change in Cash used in Interests, FCF LTM Telco Refinancing and Net loans Sale of Proceeds Adjusted Green Adjusted FCF NWC, Tax investing leasing & frequency M&A cost1) granted shares
Slide 29: Capex under control: high investments in profitable green energy segment
Capex "under control": capex/revenue in TMT only 8%, high investments in profitable green energy segment ● In the TMT1) area, the capex/revenue ratio Capex by segment in Q1’24 of the segment remains at c. 8% ● Increase in the Group's total capex is due 9% 8% to the recognition of capital expenditure
Slide 30: The Group's debt
The Group’s debt Debt structure Balance value as at (excl. project financing) mPLN as at 31.03.2024 EUR 31 March 2024 Bonds 16% 29% Loans and borrowings, including: 10,621 Bank loans 71% PLN loans and borrowings liabilities excl. project financing1) 9,361 84% project financing liabilities 1,259 Bond
Slide 31: Summary & Q&A
Summary & Q&A Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 32: Summary
Summary B2C and B2B services segment ● We consistently implement the multiplay strategy, which translated into an increase in ARPU across all customer groups and an increase in retail revenue by 2.1% ● We are building the quality of our 5G and 5G Ultra network thanks to the unique 2.6 GHz TDD freque
Slide 33: Q&A
Polsat Q&A
Slide 34: Additional information
Additional information
Slide 35: Results of the B2C and B2B services segment
Results of the B2C and B2B services segment mPLN Q1’24 YoY change ● Revenue under pressure from regulatory, Revenue 2,576 -4% successive reductions in interconnect MTR rates and lower equipment sales Operating costs1) 1,948 -3% ● Decline in revenue partially compensated by increase in retail revenue
Slide 36: Results of the media segment: television and online
Results of the media segment: television and online mPLN Q1’24 YoY change ● Revenue under the positive impact of growing Revenue 585 3% revenue from advertising, from cable/sat operators, with pressure from lower revenue from the sale of licenses and sublicenses Operating costs1) 485 2% ● Operating
Slide 37: Results of the green energy segment
Results of the green energy segment ● Consolidation of PAK-PCE Group results as of July 3, mPLN Q1’24 2023 Revenue 354 ● Revenue supported by the launch of wind farms in Kazimierz Biskupi and Miłosław in Q3'23, and the technical commissioning in Człuchów in Q1'24 Operating costs1) 307 ● Revenue from
Slide 38: Results of the real estate segment
Results of the real estate segment mPLN Q1’24 YoY change ● The real estate segment mainly focuses on Revenue 40 -10% construction projects but it also includes sale, rental and management of own and leased property Operating costs1) 35 -10% ● Recognition of revenue and costs related to the EBITDA 0
Slide 39: Revenue structure
Revenue structure mPLN ● Higher retail revenue primarily as a result the higher ARPU from 1,771 Retail revenue contract B2C and B2B customers, as well as higher prepaid ARPU. 1,734 2% ● Lower wholesale revenue mainly due to the recognition of lower interconnection revenue, resulting from the final
Slide 40: Operating costs structure
Operating costs structure mPLN Technical costs and cost of settlements 803 ● Lower cost of equipment sold reflected lower sales volumes of with telecommunication operators 809 1% equipment in Q1'24 and corresponds with lower revenue from the sale Depreciation, amortization, impairment 481 of equip
Slide 41: 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 42: Investor Relations
Investor Relations Cyfrowy Polsat S.A. Konstruktorska 4 02-673 Warsaw Email: ir@cyfrowypolsat.pl https://grupapolsatplus.pl