Cyfrowy Polsat S.A. Ord

Ladies and gentlemen, welcome to the results call of Polsat Plus Group for the third quarter of 2022. The results will be presented by Mr. Mirosław Błaszczyk, CEO, Mr. Maciej Stec, Vice President, Responsibility for Strategy and New Business, Mrs. Katarzyna Ostap-Stoman, CFO, and Mr. Stanisław Janowski, President of TV Polsat. After the presentation, we will hold a Q&A session. As always, you can post your questions in advance in the chat section. Mr. Błaszczyk, the floor is yours.

Good afternoon and welcome. This is the agenda of today's meeting. First, I will present the most important events that took place in the third quarter. After that, Staszek will discuss the operating performance in the media segment, and Maciek in the B2C and B2B segment, and then clean energy segment. Kasia will present our financial results for the quarter, and I will close the presentation with a brief summary. We will end the meeting with a Q&A session. Key events of the third quarter. We continue to successfully implement our Multiply strategy targeted at building customer loyalty and customer value. As you will see later on in the presentation, churn remains at the very low level of 6.68% per annum, while contract B2C ARPU and prepaid ARPU grew by plus 4% and plus 9% respectively. In my opinion, these are very positive results given the difficult economic situation and uncertainty that people are facing today. We dynamically execute our strategy 2023 plus in the clean energy segment. In particular, we support onshore wind farm projects developed at present by PAC-PCA. Currently, five projects with total capacity of 190 megawatts are under construction. Additionally, we are consistently building the full value chain of green hydrogen economy. As I'm sure Maciek will tell you about in detail. We also concluded a joint venture agreement with the leading CE developer HB Revis regarding the construction of office facilities in Port Plaski, a very promising project in the mid-term. And finally, an event that takes me very proud to be a part of this group. Polsat Plus Group won the main award, Company of the Year at the Economic Forum in Carpaths, which is frequently called the Polish Davos. The distinction was awarded for the business success of our group as well as for the numerous social and charity initiatives of the group and its founder, Mr. Zygmunt Solosz. And now, Staszek and Maciek will present the operating results of Polsat Group in third quarter. Staszek, please go ahead.

Thank you and good afternoon, everyone. I will discuss our performance in the media segment, TV and online in the fourth quarter and nine months of 2022. As always, I will start with our performance in the online segment. We are consistently building our position on the Polish online market. After the acquisition of Interia in mid-2020, we are a strong number three player on this market. In third quarter, we have increased the average monthly number of real users of our website to 20.5 million and page views to almost 2 billion. I'm very pleased with these results because they reflect the positive effects of synergies, especially in the area of content distribution and online advertising. What is perhaps more important, these operating results translate into a solid growing stream of revenue, thanks to which we were able to deliver promised two-fold increase in EBITDA only two years after acquisition. I would also like to highlight that in the third quarter, Interia acquired a majority share in a very popular local online portal that focuses on new technologies, antiweb.pl. The portal specializes in consumer electronics, gaming, new media, IT sector, startups, science and telecommunications. I am convinced that this new addition to the group will help strengthen our position on the market of internet portals going forward. Turning to the TV business, as you can see, our performance in terms of audience shares still remains under pressure from the compulsory switch to the new FTA broadcasting standard. A quick reminder, in the first half of this year, commercial broadcasters were first to start broadcasting their FTA channels in the new DVB-T2 standard, while a large number of households were not ready and still are not ready today. to receive these channels because they do not have the necessary reception equipment. The public broadcaster, however, was allowed to continue using the old DVB-T standard until the end of next year. This is a clear regulatory-driven disrupting factor that puts our viewership under pressure for the next few quarters. Despite this negative factor, our audience shares remain broadly in line with our strategic target and in the third quarter the total viewership of Polsat Plus group was 22.5%. Our main channel Polsat had the audience share of 7.5% and our thematic channels had 15% of audience share. The good news is that slightly weaker viewership figures are not reflected in our performance on the advertising market. I'm very happy to say that in Q3, our revenue from TV advertising and sponsorship went up almost 3%, while the broad market fell by 1.2% year-on-year. As a result, our share in the TV ad market grew to 29.4%. As for our performance in the nine months of 2022, the negative impact of the switch to DVB-T2 is also visible in the longer time horizon. Our total audience share amounted to 22.8 in the three quarters of 2022, so broadly within the strategic target corridor of 23-25%. Polsat remained a leader among main channels with nearly 8% of audience shares and our thematic channels recorded a viewership of 15%. Our position on the advertising market in three quarters is very strong, in my opinion. Similarly, as in the third quarter alone, in nine months, our ad revenues grew by 1% on a declining market. As a result, our share in the TV advertising and sponsorship market grew to the level of 28.8%. This brings me to the end of my part, so maybe a quick word of sum up. I think that our results for Q3 and 9 months of 2022 are good, solid results despite the negative regulatory effect of the refarming to the digital terrestrial broadcasting signal. Despite hurdles, we continue to invest in the future of our media business, thus building a strong growing position of the TV advertising market. Moreover, we are consistently developing our online business through Interia. As an effect, the revenue stream of our media segment grows 11% year-on-year, a highly satisfactory result, which Kasia will talk about later. Thank you. Maciek, over to you for the B2C and B2B services segment.