Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q3 2021 Earnings Presentation
35 slides from Cyfrowy Polsat Sa's earnings presentation, Nov 10, 2021
Slide 1: Financial results Q3'21
Financial results Q3’21 10 November 2021
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 MACIEJ STEC KATARZYNA OSTAP-TOMANN STANISŁAW JANOWSKI PRESIDENT OF THE MGMT BOARD VICE-PRESIDENT FOR STRATEGY MEMBER OF THE MGMT BOARD, CFO PRESIDENT, TELEWIZJA POLSAT 3
Slide 4: Agenda
Agenda 1. Key events in Q3’21 2. Operating results 3. Financial results 4. Summary and Q&A
Slide 5: Key events in Q3'21
Key events in Q3’21 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 6: Key events in Q3'21
Key events in Q3’21 ● We are dynamically developing the only true 5G network in Poland, offering up to 600 Mbps based on unique, 5G-dedicated spectrum from the 2.6 GHz frequency band. Already over 17 million inhabitants of Poland are covered by Plus 5G network. ● We finalized the sale of Polkomtel I
Slide 7: Operating results
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Slide 8: Media segment: TV and online
Media segment: TV and online Stanisław Janowski President of the Management Board, Telewizja Polsat
Slide 9: The number of users of our Internet portals increased to nearly 20 million
The number of users of our Internet portals increased to nearly 20 million ● We are a leading Internet publisher in Poland Average monthly number of users thanks to the acquisition of Interia.pl 18.5 19.9 21.0 21.0 20.9 22.3 17.4 (millions of RU) 16.0 16.5 15.0 ● Our leading position in the online m
Slide 10: Viewership of our channels in Q3'21
Viewership of our channels in Q3’21 ● TV Polsat Group and its main TV channel Audience shares among the audience leaders in the Main channels Thematic channels 9.4% commercial group 8.7% 15.6% 15.8% 5.9% 5.3% 8.2% Polsat TVN TVP1 TVP2 POLSAT (2) Discovery TVP Dynamics of audience share results 24.6%
Slide 11: Position on the advertising market in Q3'21
Position on the advertising market in Q3’21 Market expenditures on TV advertising ● The dynamics of advertising and sponsorship and sponsorship revenues of TV Polsat Group above market 895 +3.7% 928 trend (mPLN) ● As a result, our share in the TV advertising and sponsorship market increased to 28.8%
Slide 12: Viewership of our channels in 9M'21
Viewership of our channels in 9M’21 ● Viewership of TV Polsat Group channels in Audience shares line with the strategy Main channels Thematic channels 9.0% 9.3% 16.2% 15.3% 6.1% 5.9% 7.5% Polsat TVN TVP1 TVP2 POLSAT (2) Discovery TVP Dynamics of audience share results 26.6% 25.5% 23.6% 24.2% 21.8% 2
Slide 13: Position on the advertising market in 9M'21
Position on the advertising market in 9M’21 Market expenditures on TV advertising • The dynamics of advertising and sponsorship and sponsorship revenues of TV Polsat Group above market +15.7% 3.015 trend 2.606 (mPLN) • As a result, our share in the TV advertising and sponsorship market increased to
Slide 14: B2C and B2B services segment
B2C and B2B services segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 15: New, transparent set of KPIs introduced
We are developing dynamically, therefore we have introduced a new, transparent and adequate set of KPIs to offer an even better picture of the results of the implementation of our strategy ● In July 2021, we became the sole owner of Netia and of Premium Mobile MVNO. In addition, we initiated the del
Slide 16: Over 2.4 million customers of the multiplay offer
Over 2.4 million customers of the multiplay offer ● Consistent implementation of our multiplay Number of multiplay customers1 strategy results in a stable increase in the +4% (thous. customers) 3000 65% 2,415 2,445 number of customers with bundled services 2500 2,340 60% 55% 2000 by 105K YoY 1500 39
Slide 17: Our B2C customers use an increasing number of contract services
Our B2C customers use an increasing number of contract services ● Increase in the number of contract services Number of RGUs in B2C contract segment by 410K YoY +3% 13.08m 13.19m 13.49m ● Dynamic growth of mobile services driven 2.0m 2.0m 2.0m by the successful implementation of our strategy of cros
Slide 18: 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 +5.7% ● 5.7% YoY increase in ARPU resulting from 70 68.6 67.8 the consistent building of the value of the 68 3 existing customer base 66 64.9 2 64 ● Effective upselling of products u
Slide 19: Growing base and ARPU of prepaid services
Growing base and ARPU of prepaid services ● Growth of the prepaid base is the outcome of Prepaid RGU good sales of mobile services, supported by 2.67m 2.60m 2.77m the consolidation of Premium Mobile ● Promising sales results of the new bundles offered on Polsat Box Go platform Q3'20 Q2'21 Q3'21 ● We
Slide 20: Stable B2B customer base and ARPU
Stable B2B customer base and ARPU ● Polsat Plus Group serves 68.8 thous. B2B Number of B2B customers customers, successfully maintaining the size 68.9K 68.3K 69.8K of this base ● Successively expanded offer of communication and ICT services enables us Q3'20 Q2'21 3Q'21 to maintain ARPU from our B2B
Slide 21: Financial results
Financial results Katarzyna Ostap-Tomann CFO, Cyfrowy Polsat
Slide 22: Results of the Group in Q3'21
Results of the Group in Q3’21 Revenue EBITDA adjusted for the IC delta adjusted, excl. NetCo result1 +2.5% 3,032 -0.8% 912 904 2,958 Q3'20 Q3'21 Q3'20 Q3'21 LTM FCF Net debt/EBITDA LTM +13.7% 1,449 2.80x 1,274 0.65x Q4'20 Q3'21 Q4'20 Q3'21 Source: Consolidated financial statements for the 9-month pe
Slide 23: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers Revenue EBITDA adjusted, excl. NetCo result1 +2% | +74m (excl. IC delta) 4,595 +1% | +28m (incl. IC) 1,079 3,004 3,032 -1% | -8m +9 912 904 -46 +48 +18 -170 +3 +10 -18 +3,691 152% (mPLN) (mPLN) 30% 30% 36% EBITDA margin Revenue reduction in increase in Consoli
Slide 24: We consistently generate a strong positive FCF stream
We consistently generate a strong positive FCF stream Adjusted FCF after interest mPLN Q3’21 9M’21 EBITDA EBITDA • EBITDA • EBITDA Switching to the capex light model: growth growth growth Net cash from operating activities 824 2.443 growth • Asseco • conversion of CAPEX to OPEX • Reduction 5G networ
Slide 25: Strong stream of recurring FCF along with additional funds
Strong stream of recurring FCF along with additional funds from the sale of NetCo finance acquisition projects and the payment of record-high dividend FCF 9M’21: PLN 1.010m 7,111.9 -1,438.2 (mPLN) -674.5 192.6 7,472.3 -1,027.7 -27.9 2,442.7 -472.4 CAPEX1 /revenue 1,365.8 9.8% Cash and cash Net cash
Slide 26: The Group's debt
The Group’s debt Debt structure Carrying amount by instrument type by currency mPLN as at 30 Sep. 2021 Bonds 18% SFA (Tranche A and B) 8,924 Banking debt PLN 82% 100% Revolving Credit Facility (RCF) 1,000 Series B and C Bonds 2,000 Leasing and other 698 Gross debt 12,621 Debt maturing profile Cash a
Slide 27: Summary & Q&A
Summary & Q&A Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 28: Summary & Q&A
Summary & Q&A ● We continue the fast roll-out of Plus 5G network: already more than 17 million inhabitants of Poland live within the network’s footprint and we are continuing roll-out ● We achieve very good results of our strategy focused on customer loyalty and value creation: we have over 2.4 mill
Slide 29: Additional information
Additional information
Slide 30: Results of the segment of B2C and B2B services
Results of the segment of B2C and B2B services YoY ● Healthy ARPU from contract and prepaid mPLN Q3’21 services translates to a distinct growth of change retail revenue, compensating for the erosion Revenue 2,592 0% of IC revenues and lower revenue from sales of equipment Operating costs(1) 1,812 10
Slide 31: Results of the media segment
Results of the media segment YoY mPLN Q3’21 change ● Revenue positively influenced by growing Revenue 500 4% revenue from advertising and sponsorship in our TV channels and web portals Operating costs(1) 384 10% ● EBITDA was under the impact of higher EBITDA 118 -13% amounts invested in our autumn p
Slide 32: 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, which is reflected in high 1,707 Retail revenue 1,624 5% dynamics of ARPU growth from both contract B2C and prepaid customers, as well as the consoli
Slide 33: Operating costs structure
Operating costs structure mPLN ● Higher technical costs and cost of settlements with telecommunication Technical costs and cost of settlements 790 operators mostly due to the recognition of costs resulting from the with telecommunication operators 609 30% agreement on using the mobile infrastructu
Slide 34: 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 35: Investor Relations
Investor Relations Cyfrowy Polsat S.A. Konstruktorska 4 02-673 Warszawa Tel.: +48 (22) 426 85 62 +48 (22) 356 65 20 +48 (22) 337 93 14 Email: ir@cyfrowypolsat.pl https://grupapolsatplus.pl