Cyfrowy Polsat S.A. Ord

Ladies and gentlemen, welcome to the third quarter 2021 results call of Polsat Plus Group. Our usual speakers, Mr. Mirosław Błaszczyk, CEO, Maciej Stec, Vice President, Responsible for Strategy, Katarzyna Ostaptoman, CFO, and Staszek Janowski, President of TV Polsat, will present the results of Polsat Plus Group, and then we will hold a Q&A session. If you have any questions, you are welcome to post them in the chat section. Mr. Błaszczyk, the floor is yours.

Good afternoon, ladies and gentlemen. It is my pleasure to welcome you to the result call of Polsat Plus Group for the third quarter of 2021. Moving on to the agenda of today's meeting, first of all, I will present the key events of the third quarter, then Staszek and Maciej will discuss the operating results of our business segments. After that, as always, Kasia will present our financial results and finally, I will conclude the presentation with a summary and we will be ready to take your questions. Let's take a look at the key events that took place in the third quarter of 2021. We are dynamically developing the only 3D 5G network in Poland which offers transmission speed of up to 600 Mbps and is based on a unique spectrum from the 2.6 GHz frequency band dedicated to 5G. Today, already over 17 million of Poland's inhabitants are covered by the 5G network from PLUS. As you are aware, we have finalized the sale of Polcomtel Infrastruktura to sell next telecom in July this year. We are also in the process of paying out a record high dividend to our shareholders in the amount of 767 million zlotys or 1.2 zloty per share. What is more, we have implemented the new brand strategy concerning the key brands of Polsat Plus Group. You can see our new branding concept on the picture on this slide. And last but not least, together with Zepac Group, we launched the biggest solar power plant in Poland that generates 70 MW of power. As a result, green energy already flows to our customers. And now let's move on to the operating results of our group. Staszek, please tell us about the media segment.

Thank you, Mirek. Good afternoon, everybody. I will present the results of the media segment, television and online. Thanks to the acquisition of InteriaPL in 2020, we are now a leading internet publisher in Poland alongside Wirtualna Polska and Onet, as you can clearly see on this slide. Every month, our online portals are visited by about 20 million users and we have almost 2 billion page views per month. Like I said last time, we have delivered all the synergies that we announced when acquiring InteriaPL in the areas of content monetization, advertising and editorials. I'm very happy with the outcome of this acquisition. In the next quarters, we will continue to develop this online product as well as online advertising products. Turning to our TV business, let's analyze the viewership for our channels in Q3 2021. As you can see, we maintained our leading position in terms of audience shares in the commercial group. Our flagship channel, Polsat, had 8.7% of audience shares, while our portfolio of filmatic channels had 15.6%. As a result, the total viewership of TV Polsat Group channels reached the level of 24.3, almost the same as a year ago. These results are in line with our long-term strategic goals and come in top range of our target corridor. This is a solid set of results, especially since in July you were still under some pressure from the Euro 2020 football championships aired by the public television. Turning to our position on the advertising market in Q3 2021, once again, the growth dynamics of our revenue from advertising and sponsorship was higher than the market. In the third quarter, the market grew by 3.7, while our ad revenues increased by over 6% to 267 million zlotys. As a result, our share in the TV advertising and sponsorship market increased to almost 29%. It is important to look at the media segment over a long time period. In the nine months of 2021, we continued to record top viewership results in the commercial group. Our main channel had 9% of audience shares, while our portfolio of thematic channels gained 15.3%. The resulting viewership figures for the whole group put us in the strong position with 24.2% of audience shares. Once again, this result is in line with our long-term strategy. It has been solid strong 9 months as far as viewership figures are concerned. Of course, good viewership means good advertising revenues. As you can see on the charts on this slide, our advertising and sponsorship revenue grew at a dynamic pace of almost 20% in the nine months of 2021 to the level of 869 million zlotys. Again, we outperformed the broad market, which grew at 15.7%. Please remember that this year the advertising market in Poland is experiencing a strong rebound after the 2020 breakdown caused by the COVID epidemic, so the high dynamics that you can see here result mainly from the low reference point a year ago. Nevertheless, I am very happy with our performance on the advertising market, in which we had almost 29% market share in 9 months of 2021. To sum up, this was yet another very good quarter and nine months of our media segment. InteriaPL is now fully integrated with Bolsat and all the synergies that we have communicated during the acquisition have been achieved. Our TV channels have recorded very good viewership results, which translated into excellent performance on the advertising market. Let me now give the floor to Maciek, who will present the operating results of the B2C and B2B segments. Thank you for your attention.