Cyfrowy Polsat S.A. Ord

Good afternoon, ladies and gentlemen. Welcome to Q1 2022 results call of Polsat Plus Group. The presentation of the results will be made as always by Mr. Miroslav Błaszczyk, CEO, Mr. Maciej Stec, Vice President, Responsible for Strategy and New Business, Mrs. Katarzyna Ostaptoman, CFO, and Mr. Stanisław Janowski, President of TVE Polsat. After the presentation, there will be a Q&A session. If you have any questions, you can post them in the chat section in advance. Mr. Błaszczyk, the floor is yours.

Good afternoon, ladies and gentlemen. Welcome to the results call of Polsat Plus Group for the first quarter of 2022. Today, the agenda of our meeting is standard. I will begin the presentation by telling you about the most important events of the quarter. All our operating results will be presented by Staszek and Maciek, followed by the analysis of our financial results by Kasia. After that, I will briefly summarize the presentation and we will move on to the Q&A session. Key events of the first quarter of 2022. It is impossible to discuss the events of the first quarter without taking into account the impact of the significant global events that took place recently and continue to affect the politics and economy of Europe and the world at large. The last two years marked by the coronavirus pandemic have caused enormous complications in world production and trade. In addition to the dramatic suffering of the Ukrainian nation, The outbreak of the war in Ukraine was the already difficult situation in the world economy. We are facing a huge geopolitical change and the resulting inflation, rising interest rates, broken supply chains, and maybe most importantly, an increase in the prices of energy and raw materials. Under these difficult circumstances, our group successfully implemented the Multiply strategy. we consistently build the value of our customers and keep the chain level on low levels. Thanks to this, our results translate into a stable and recurring growth of revenue. Moreover, together with ZTE Park, we are involved in numerous activities aimed at the rapid launch of production of clean energy and green hydrogen within the framework of our strategy 2023+, which in the current geopolitical situation is a hope for the future. We also acquired shares in Port Pruski, a unique real estate project located on the shores of the Vistula River in the very centre of Warsaw. And finally, as a socially responsible company, we launched numerous activities demonstrating our solidarity with Ukraine and support for its citizens who have found refugees in our country. Let us now turn to our operating results. Staszek, please discuss the performance of our media segment.

Thank you, Mirek, and good afternoon to all of you. As always, I will start off with the online branch of our media operation. As you can see on this slide, we are consistently growing in this area. In Q1 2022, our websites and applications had over 21 million real users and we recorded 2.2 billion page views on average per month. These results place us clearly in the top three on the Polish online market together with Wirtualna Polska and Onet. We focus on developing our online product both in terms of offered content and from a marketing angle. We want to continue to strengthen our position on the market of internet portals. As a result, our online ad revenue grows at a healthy double-digit pace. In our TV business, we noted good viewership results that are in line with our long-term strategy. In the first quarter of 2022, Our main channel posted achieved an 8.3% audience share and was the leader in the big four group. Our portfolio of thematic channels gained almost 15% of audience shares. As a group, we had 23.2% of audience share. Our position in the advertising market in the first quarter was very good. The market grew by half a percent, mainly due to a sudden slowdown on the market noticed in March. The outbreak of the war in Ukraine in the last week of February had a clear impact on ad market dynamics in Q1. As far as our position is concerned, our advertising revenues were in line with the market trend and as a result, our share in the TV advertising and sponsorship market reached 28.4%. Summing up, I just wanted to say that in context of the situation in Ukraine and unexpected market reaction, from my perspective, this was a good quarter, both in the online segment and in the TV segment. All in all, a stable ad market in the context of a war in a neighboring country is a good result in my personal opinion. Thank you for your attention and let's see what Maciek has to say about the performance in the B2C and B2B segment.