Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q2 2024 Earnings Presentation
41 slides from Cyfrowy Polsat Sa's earnings presentation, Aug 22, 2024
Slide 1: Financial results Q2'24
Financial results Q2’24 22 August 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 PIOTR ŻAK MACIEJ STEC PRESIDENT OF THE MANAGEMENT CFO, MEMBER OF THE MANAGEMENT PRESIDENT OF THE MANAGEMENT VICE-PRESIDENT FOR STRATEGY BOARD BOARD FOR ESG BOARD, TELEWIZJA POLSAT 3
Slide 4: Agenda
Agenda 1. Key events in Q2’24 2. Operating results 3. Financial results 4. Summary and Q&A
Slide 5: Key events in Q2'24
Key events in Q2’24 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 6: Key events in Q2'24
Key events in Q2’24 B2C and B2B services segment ● We are effectively building value in all customer segments - ARPU per B2C customer increased by +4.7%, per B2B customer +1.5% and prepaid +1.1%, which translates into a 2.9% increase in retail revenue ● We increased the coverage of our fixed broadba
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 Q2'24
Viewership and position in the advertising market in Q2’24 Market expenditures on TV advertising Audience shares and sponsorship Main channels Thematic channels +5.7% 7.7% 15.0% 15.3% 1,216 1,286 7.1% 5.8% share of TV Polsat Group 5.0% 7.5% 28.3% 28.1% Polsat TVN TVP1 TVP2 POLSAT 1) Warner TVP Q2'23
Slide 10: Viewership and position in the advertising market in H1'24
Viewership and position in the advertising market in H1’24 Market expenditures on TV advertising Audience shares and sponsorship Main channels Thematic channels +7.2% 7.9% 15.7% 2,218 2,378 7.1% 14.7% (mPLN) 5.2% 5.1% share of TV Polsat Group 7.0% 28.4% 28.1% 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: 21.0 20.4 22.8 20.5 21.5 20.2 19.4 17.4 16.2 (millions of RU) 17.0 − 20.4 m users − 1.8 bn page views Polsat-Interia Wirtualna Polska RAS Polska Agora
Slide 12: Polsat's autumn schedule
Polsat’s autumn schedule Malanowski. Siły Specjalne Polska Moja mama i twój tata Nowe rozdanie (reality show) (reality show) (series) Nasz Nowy Dom (breakfast Przyjaciółki (reality show) television) (series) Teściowe (show) (comedy series) (show) 12
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 3000 65% (thous. customers) 2,450 2,466 2,477 60% ● 2500 As a result of the consistent implementation 2000 42% 43% 43% 55% 50% of
Slide 15: 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 ● The growing number of TV services 13.08m 13.08m 13.09m provided in IPTV and OTT technologies 2.0m 2.0m 2.0m partially offsets the decline in the p
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 +4.7% ● 4.7% YoY increase in ARPU results from 75.2 74.6 the consistent building of the value of the 71.8 3 70 existing customer base 3 60 2 ● Effective upselling of products as part
Slide 17: 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) 2.66m 2.62m 2.61m services at 2.6 million RGUs ● ARPU growth of 1.1% YoY (after exclusion of low-margin promotional package in Polsat Box Go) in a highly Q2'23 Q1'24 Q2'24 competitive market Mobile tele
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 69.0k 68.4k 68.5k of this base ● The successively expanded offer of communication and ICT services enables us Q2'23 Q1'24 Q2'24 to increase AR
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 Green hydrogen Energy from biomass 105 MW completed Under implementation production 82.4
Slide 21: Dynamic growth of energy production by c.50% due to more wind capacity
Dynamic growth of energy production by c.50% due to the commissioning of more wind capacity Renewable energy production ● In Q2'24, we generated 222 GWh of green [GWh] energy, up by 53% YoY 117.8 124.2 222 GWh 64.5 +53% YoY ● In H1'24 we generated 421 GWh of green 0 27.3 33.3 energy, up by 43% YoY Q
Slide 22: EBITDA of the green energy segment is already PLN 121m in H1'24
EBITDA of the green energy segment is already PLN 121m in H1’24 alone Electricity production and average price in Q2’24 ● In Q2’24, we sold 222 GWh of electricity at 222 GWh Production an average price of PLN 564/MWh 564 PLN/MWh [GWh] ● In H1’24, we sold 421 GWh of electricity at 124 Average price o
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 744 [MW] 484 342 +2.5x 338 82 RES installed 82 capacity 297 297 150 2x vs. 2023 105 105 105 2024 2025 2026 Potential energy production capacity 1,750 2,000 1,316 83 333 100
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 Q2'24
Results of the Group in Q2’24 Revenue EBITDA Net profit excl. asset disposal +5.0% 3.454 +8.3% 865 3.290 176 799 21 +5.7% (mPLN) (mPLN) (mPLN) 844 8 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Asset disposal (IPv4 address package) LTM FCF Net debt/EBITDA LTM (excl. project financing) +30.5% 436 334 3.51x 3.
Slide 26: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers Revenue EBITDA 5.0% | +164m +5.7% | +45m 865 3,454 844 3,290 -5 799 -89 -4 -1 +21 -90 +24 -10 -11 +71 +324 Incl.1 (mPLN) own energy sales: 125m energy resale: 169m (mPLN) 25% 24% 24% EBITDA margin Revenue Przychody B2C and Media Green energy Real Consolidati
Slide 27: FCF LTM impacted by high interest costs
FCF LTM impacted by high interest costs -451 Incl. -122 NWC change (mPLN) incl. 3 068 1 refinancing cost 193 M&A, net 436 0 Adjusted Change in Cash used in Interests, FCF LTM Telco Refinancing and Proceeds Proceeds Adjusted Green Adjusted FCF NWC, Tax investing leasing & frequency M&A cost1) from sa
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 Q2’24 ● In the TMT1) area, capex/revenue ratio Development Development remains at c. 6% 6% 6% Capex Capex (mPLN) ● Increase in the Group's total capex is due 207 189 168 to th
Slide 29: The Group's debt
The Group’s debt Debt structure Balance value as at (excl. project financing) mPLN as at 30.06.2024 EUR 30 June 2024 Bonds 16% 29% Loans and borrowings, including: 10,678 Bank loans 71% PLN loans and borrowings liabilities excl. project financing1) 9,370 84% project financing liabilities 1,308 Bonds
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 ● Thanks to the consistent implementation of our multiplay strategy, ARPU is growing in all customer groups and churn remains low at only 7.5% ● We have increased the reach of our Internet access service by 50%, to more than 10 million households Media segment: T
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 Q2’24 YoY change ● Revenue under pressure from regulatory, Revenue 2,609 -3% successive reductions in interconnect MTR rates and lower equipment sales Operating costs1) 1,986 -3% ● Revenue decline partially offset by higher retail revenue EBITDA excl.
Slide 35: Results of the media segment: television and online
Results of the media segment: television and online mPLN Q2’24 YoY change ● Increase in advertising revenue and from Revenue 663 4% cable/sat operators partially offset by lower revenue from the sale of licenses and sublicenses Operating costs1) 522 8% ● Increase in revenue did not offset higher EBI
Slide 36: Results of the green energy segment
Results of the green energy segment mPLN Q2’24 ● Consolidation of PAK-PCE Group results as Revenue, incl.: 324 of July 3, 2023 Revenue from sale of generated electricity2) 125 ● Revenue supported by the launch of wind farms in Kazimierz Biskupi and Miłosław in Revenue from resale of electricity2) 16
Slide 37: Results of the real estate segment
Results of the real estate segment YoY mPLN Q2’24 change ● The real estate segment mainly focuses on construction projects but it also includes sale, Revenue 34 -13% rental and management of own and leased property Operating costs1) 31 -11% ● Recognition of revenue and costs related to the sale of a
Slide 38: Revenue structure
Revenue structure mPLN ● Higher retail revenue primarily as a result of the successful 1,784 Retail revenue execution of the multiplay strategy and value creation in contract 1,735 3% B2C and B2B customers ● Lower sale of equipment mainly due to high sales volumes in 848 Wholesale revenue Q2'23. A
Slide 39: Operating costs structure
Operating costs structure mPLN Technical costs and cost of settlements 820 ● Lower cost of equipment sold reflected lower sales volumes and with telecommunication operators 824 0% corresponds with lower revenue from the sale of equipment. Depreciation, amortization, impairment 456 and liquidation 46
Slide 40: 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 41: Investor Relations
Investor Relations Cyfrowy Polsat S.A. Konstruktorska 4 02-673 Warsaw Email: ir@cyfrowypolsat.pl https://grupapolsatplus.pl