Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q2 2020 Earnings Presentation
36 slides from Cyfrowy Polsat Sa's earnings presentation, Aug 27, 2020
Slide 1: Financial results Q2'2020
Financial results Q2’2020 27 August 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 Q2’20 2. Operating results 3. Financial results 4. Summary and Q&A
Slide 4: 1. Key events in Q2'20
1. Key events in Q2’20 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 5: Key events in Q2'20
Key events in Q2’20 We efficiently adjusted the operations of Polsat Group companies to the state of epidemic introduced in Poland We supported the Polish society and healthcare services in the fight against the coronavirus epidemic in Poland with donations of ca. PLN 30m We strengthened the positio
Slide 6: 2. Operating results
© oo 2. Operating results — mn | plus¢ Bipla N ET 1 A intena
Slide 7: 2.1 Broadcasting and TV production segment
2.1 Broadcasting and TV production segment Stanisław Janowski President of the Management Board, Telewizja Polsat
Slide 8: Viewership of our channels in Q2'20
Viewership of our channels in Q2’20 • Polsat Group and its main TV Audience shares(1) channel were among the Main channels Thematic channels audience leaders in the 13.9% 17.4% 9.9% commercial viewers’ group, in 9.2% spite of the unprecedented 5.6% 5.4% 8.2% situation forcing us to withhold the broa
Slide 9: Position on the advertising market in Q2'20
Position on the advertising market in Q2’20 Market expenditures on TV advertising • The dynamics of advertising and and sponsorship sponsorship revenues of TV Polsat 1.204 -35.4% Group in line with the market 778 trend (mPLN) • Our share in the TV advertising and sponsorship market increased to 27.4
Slide 10: Results of the broadcasting and TV production segment in Q2'20
Results of the broadcasting and TV production segment in Q2’20 mPLN Q2’20 YoY change • Quick adjustment of the cost side to the condition of the advertising Revenue 412 -108 -21% market has enabled substantial reduction of the pressure on Operating costs(1) 293 -66 -18% EBITDA Adjusted EBITDA(2) 122
Slide 11: Viewership of our channels in H1'20
Viewership of our channels in H1’20 • Polsat Group’s viewership in line Audience shares(1) with its strategy Main channels Thematic channels 17.1% 9.5% 9.8% 13.6% 6.7% 5.9% 8.1% Polsat TVN TVP2 TVP1 POLSAT(2) Discovery TVP Dynamics of audience share results(1) H1'19 27.1% 26.9% H1'20 24.1% 23.1% 21.
Slide 12: Position on the advertising market in H1'20
Position on the advertising market in H1’20 Market expenditures on TV advertising • The dynamics of advertising and and sponsorship sponsorship revenues of TV Polsat 2,169 -21.0% Group in line with the market 1,714 trend (mPLN) • As a result, our share in the TV advertising and sponsorship market am
Slide 13: Results of the broadcasting and TV production segment in H1'20
Results of the broadcasting and TV production segment in H1’20 mPLN H1’20 YoY change • In the half-year perspective the financial results of the Revenue 873 -102 -10% broadcasting and TV production segment have been stabilized by a Operating costs(1) 604 -62 -9% solid start of the year on the advert
Slide 14: 2.2 Services to individual and business customers
2.2 Services to individual and business customers Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 15: Over million customers of multiplay offer
Over 2 million customers of multiplay offer Number of multiplay customers • Consistent implementation of +7% our multiplay strategy results 1,898 2,012 2,028 100% 2 000 in a stable increase in the 90% 80% number of customers with 1 500 (thous. customers) 70% 60% 36% 36% bundled services by 130K YoY
Slide 16: Growth dynamics of contract services despite sales network limitations
We maintained very high growth dynamics of contract services despite limitations in the sales network • Increase in the number of contract +4% services by 528K YoY 14.45m 14.80m 14.98m 1.8m • Dynamic growth of voice services as a 1.8m 1.8m result of positive impact of our 5.0m 5.1m 5.0m multiplay st
Slide 17: Growth of ARPU thanks to the multiplay strategy
Growth of ARPU thanks to the consistent implementation of the multiplay strategy • 3.7% YoY increase in ARPU 95 resulting from the consistent +3.7% 90 86.5 building of the value of the 83.4 85.4 85 existing customer base and 2.64 2.68 80 250% increase in revenues from 2.56 interconnection settlement
Slide 18: Lockdown restricted distribution of prepaid starter kits
Lockdown restricted the possibilities of distribution of prepaid starter kits 2.61m 2.64m • The decrease in prepaid services 2.53m was largely due to the closure of part of our sales network during the lockdown caused by the COVID-19 pandemic and the lower number of foreigners Q2'19 Q1'20 Q2'20 visi
Slide 19: 3. Financial results
3. Financial results Katarzyna Ostap-Tomann CFO, Cyfrowy Polsat
Slide 20: Results of the Group in Q2'20
Results of the Group in Q2’20 revenue EBITDA and adjusted EBITDA1 -2.1% -6.9% 2,923 2,863 1,076 1,002 960 Q2'19 Q2'20 Q2'19 Q2'20 LTM FCF net debt/EBITDA LTM -1.7% 1,334 1,311 2.91x 2.86x Q4'19 Q2'20 Q4'19 Q2'20 Source: Consolidated financial statements for the 6-month period ended 30 June 2020 and
Slide 21: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers Revenue Adjusted EBITDA 1 and EBITDA -2% -7% -11% YoY change YoY change -116 m -60 m -75 m 2,923 +50 2,863 1,076 -108 -2 1,002 -35 960 -39 4% -42 24% (mPLN) (mPLN) 37% 35% 34% Revenue Segment of Broadcasting and Consolidation Revenue EBITDA Segment of Broadcas
Slide 22: Stable cash flow generated
Stable cash flow generated mPLN Q2’20 6M’20 Adjusted FCF after interest Net cash from operating activities 574 1.353 Higher Higher Higher Advance smartphone No increase settlement of CAPEX CAPEX Net cash used in investing activities -180 -544 purchases in CIT 2019 installments receivables Payment of
Slide 23: Increased level of cash was used to finance the acquisition of Interia.pl
Increased level of cash was used to finance the acquisition of Interia.pl FCF 6M’20: PLN 539m -56.2 Acquisition projects -544.1 -822.9 1,000.0 1,353.2 -400.2 1,320.5 CAPEX1 -18.6 (mPLN) /revenue 9.4% 753.1 Cash and cash Net cash Net cash used in Payment of Bonds issue Repayment Other Cash and cash e
Slide 24: The Group's debt
The Group’s debt mPLN Carrying amount Debt structure4 as at 30 June 2020 by instrument type by currency SFA (Tranche A and B) 9,283 Bonds Revolving Credit Facility (RCF) 335 18% Series B and C Bonds 2,007 PLN 100% Banking Leasing and other 1,445 debt 82% Gross debt 13,070 Cash and cash equivalents1
Slide 25: 4. Summary and Q&A
4. Summary and Q&A Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 26: Summary and plans for the second half of the year
Summary and plans for the second half of the year We posted very good operational and financial results despite the pandemic and the ensuing restrictions We have begun to build the position of the ESOLEO brand on the promising market of photovoltaic installations We are developing and integrating In
Slide 27: 5. Additional information
© oo 5. Additional information — in plus¢ Bipla N ET 1 A intena
Slide 28: 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 29: 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 30: COVID-19 exerts both positive impact and negative pressure on 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 coronavirus pandemic and its ultimate impact on global, Europea
Slide 31: 5.2 Financial results Q2'20
© oo 5.2 Financial results Q2’20 plus¢ Bipla N ET 1 A intena
Slide 32: Results of the segment of services to individual and business customers
Results of the segment of services to individual and business customers mPLN Q2’20 YoY change • Growth of sales revenues as a result of higher interconnect settlements Revenue 2,519 50 2% and higher revenue from sale of equipment Operating costs(1) 1,666 106 7% • These factors translate in a similar
Slide 33: Results of the broadcasting and TV production segment
Results of the broadcasting and TV production segment mPLN Q2’20 YoY change • Quick adjustment of the cost side to the condition of the advertising Revenue 412 -108 -21% market has enabled substantial reduction of the pressure on Operating costs(1) 293 -66 -18% EBITDA Adjusted EBITDA(2) 122 -39 -24%
Slide 34: Revenue structure
Revenue structure mPLN • Lower level of retail revenue mainly due to lower revenue from international roaming from individual and business customers, 1% which resulted from the restrictions in movement introduced in 1,592 Retail revenue connection with the coronavirus pandemic and lower willingness
Slide 35: Operating costs structure
Operating costs structure mPLN • Higher technical costs and cost of settlements with Technical costs and cost of settlements 636 8% telecommunication operators mainly from higher interconnect costs with telecommunication operators 591 on higher volumes of outgoing traffic, which was associated with
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