Cyfrowy Polsat S.A. Ord

Good afternoon. Ladies and gentlemen, welcome to the full year 2021 results call of Polsat Plus Group. As usual, Mr. Miroslav Błaszczyk, CEO, Maciej Stec, Vice President, Responsibility for Strategy, Katarzyna Ostautoman, CFO, and Staszek Janowski, President of TV Polsat, will present the results of Polsat Plus Group for 2021, and then we will hold a Q&A session. If you have any questions, please post them in the chat section. Mr. Błaszczyk, please go ahead.

Good afternoon, ladies and gentlemen. A warm welcome to the results call of Polsat Plus Group for the fourth quarter and full year of 2021. This has been a challenging year for all of us. The coronavirus pandemic caused and continues to cause serious consequences in the global economy. The war in Ukraine that has started a month ago causes great anxiety and we are with the Ukrainian people who will owe our hearts. It is my greatest hope that the world will overcome these difficult situations and obstacles. The agenda of today's meeting is as follows. I will start the presentation with the key events that took place in 2021. Then Staszek and Maciej will present the operating results of our business segments, followed by Kasia, who will discuss our financial performance. I will conclude the presentation with a summary of 2021 and say a few words regarding our goals in 2022. Without further delay, let me tell you about the key events of 2021. The most important event was the announcement of the strategy 2023 plus of Polsat Plus Group. In line with the assumption of this strategy, we will continue to develop our key business segments. Connectivity under the PLOS brand, content under the Polsat brand and our new business segment Clean Energy. In 2021, we have entered into the strategic long-term partnership with Celnex Telecom. Thanks to this partnership, we will roll out our network more rapidly and more cost-efficiently. A direct consequence of this partnership is the dynamic development of the only true 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 19 million people are covered by 5G Forum+. What is more, we have implemented the new branding strategy of the key brands of Polsat Plus Group in order to harmonize and simplify communication with our customers and to achieve synergies between our brands. And last but not least, we paid a record high dividend to our shareholders in the amount of 767 million zlotys or 1.2 zloty per share. Additionally, we have formulated a new, consistent dividend policy for the next years. These were the key events in 2021. Now let's move on to the operating results of our Group in 2021. Staszek, Maciek, the floor is yours.

Thank you Mirek and hello everybody. Let's take a look at the performance of our media segment. We continue to strengthen our position as a leading internet publisher in Poland. As you can see on these charts, we achieved excellent results on the online market. With 20.5 million real users and almost 2 billion page views per month, we are quickly closing the gap to the number one and number two players on the market, Onet and Wirtualna Polska. This success is, of course, the effect of the acquisition of Interia PL finalized in mid-2020. As you already know, we have delivered all the synergies in the areas of content monetization, advertising and editorials as promised during the acquisition of InteriaPL. We will continue to build our position on the market of internet portals. Let's now move on to our TV business. On this slide, you can see the viewership results of our channels in Q4 2021. Our main channel Polsat had an audience share of 9%, while our thematic channels had 14.3% in the commercial group. This means that the total viewership of TV Polsat group channels was 23.2%. This result is in line with our long-term strategy and fits in our target corridor of 23-25%. In Q4 2021, we generated over 400 million PLN of revenue from advertising and sponsorship. That is 1.6% more than a year ago. Even though the growth dynamics of our revenue from advertising and sponsorship was slightly below market dynamics in the last quarter, I'm satisfied with this result because we had a very high reference point. Please remember that Q4 2020, our advertising revenue rebounded strongly after the COVID pandemic. As a result, in Q4, our share in the TV advertising and sponsorship market was 28%. Now, let's look at our results for the full year. In 2021, we successfully maintained our leading position on the market in terms of audience shares in the commercial group. Our main channel had 9% of audience shares, while our portfolio of thematic channels gained 15%, which gives us a stable total viewership of 24% over the whole group. Let me underline once again that both the results for Q4 and for the full year are very good results, which are in line with our strategy. Let's take a look. at how the full-year viewership results translated into advertising revenue. In 2021, our revenue from advertising and sponsorship increased by 13.2% and amounted to almost 1.3 billion PLN. We noted higher dynamics than the broad market which grew by 11.5%. In effect, our share in the TV advertising and sponsorship market increased to 28.6%, an excellent result. To sum up the past year, I'm very pleased with the results that we have achieved in our media segment. I am very happy with our strong performance on the online market and we will continue to develop and strengthen our online business. We continue to record strong viewership results, which translates into excellent results in terms of advertising revenue. Actually, 2021 turned out to be pretty exceptional because we recorded a historically high EBITDA in the media segment. But Kasia will tell you more about it in her part of the presentation. So, that's all from me today. Thank you for your attention and let's listen to Maciek, who will present the operating results of the B2C and B2B segment. Thank you.