Cyfrowy Polsat S.A. Ord

Good afternoon, everyone. It is my pleasure to welcome you to Polsat Plus Group's results call for the second quarter of 2023. As always, the results will be presented by Mr. Mirosław Błaszczyk, CEO, Mr. Maciej Stec, vice president responsible for strategy, Ms. Katarzyna Ostaptoman, CFO, and Mr. Stanisław Janowski, president of TV Polsat. After the presentation, we will hold a Q&A session. Please post your questions in advance in the chat section. Mr. Błaszczuk, please go ahead.

Thank you. Good afternoon. The agenda of today's meeting is as follows. I will briefly present the key events of the second quarter. Afterwards, Staszek and Maciek will talk about the operational results of our business segment and Kasia will follow with an overview of our financial performance. We will end the presentation with a short summary and then we will move on to the Q&A session. next slide please okay let's begin with the key highlights of the second quarter of 2023 next slide please the macroeconomic situation in poland remains difficult despite challenging market conditions we post growing arpu in all our customer segments in b2c b2b as well as the prepaid segment We are also able to maintain the level of churn at a low level of only 7.3% per annum. We are also consistently building our position in the media segment. In August, we acquired the internet portal called Naekrani.pl, which really supports our performance in the online business. Additionally, we bought three new TV channels, which brings the total number of channels in our portfolio up to 42. In July, we completed our strategic acquisition of green assets from ZEPAC by acquiring a controlling stake in PAC-PCE. This means that starting from the third quarter of 2023, we will fully consolidate the clean energy segment in our operating and financial results. Since we are on the topic of clean energy, I am delighted to inform you that our first two wine farms in Miłosław and Kazimierz Biskupi are already in the phase of test production. The commercial launch of both farms will take place in September. What is more, we have completed the construction of our very first hydrogen refuelling station in Warsaw. We have obtained all the necessary permits to launch the station and an official opening is planned for September. In the second quarter, we expanded our operation in the B2B photovoltaic micro-installation market. We signed a contract for the installation of photovoltaic units on 750 rooftops of the Dynastore chain. As part of the continuation of our investment in Port Pruski, we acquired a 32% stake in Pantanomo. This is a step towards simplifying the ownership structure in our real estate segment. And finally, in June, Fitch Ratings assigned a new rating to Polsat Plus Group at the level of BB with a stable outlook. This shows trust and confidence in our strategy and our vision of the future of this group. Next slide please. That is all from me for now. I will give the floor over to Staszek, who will discuss the operating performance in our media segment. Thank you.

Thank you. The performance of the media segment in both the second quarter and the first half of this year were very good. Let's look at the details. Next slide please. We continue to effectively build our position in the market of internet portals. Through our horizontal portal interia.pl, we are the leading internet publisher in Poland with 21 million real users and almost 2 billion page views per month. Interia's financials are also very good. Revenue is growing at a low double-digit rate while EBITDA grew at a mid-single-digit rate in the first half of the year. We are steadily catching up to our competitors. I'm proud to say that in July, for the first time ever, according to media panel statistics, our portal interia.pl had more users than onet.pl. It's the effect of the successful execution of the synergies between Interia and Polsat. Also, as Mirek mentioned in his introduction, in August we acquired the website naekranje.pl. This is a popular internet website that focuses on movies, series, books, games, and technology. Going forward, this acquisition will strengthen our position on the online market. Next slide, please. Moving on to our TV business, we recorded very good viewership figures of our TV channels in the second quarter. Our main channel Polsat had a leading audience share of 7.8% and our thematic channels had 14.2% of audience shares in the commercial group. Altogether, our channels had 22% in the second quarter of this year, which is a little less than a year ago. This is the result of the negative impact of the reframing to the new terrestrial television standard that took place in the first half of last year and was mandatory for commercial broadcasters but not for public television. This impact will continue to influence our results for the next two quarters. In 2020 for all broadcasters in Poland we will use the new DVB-T2 standard. I would also like to share some exciting news with you. We are expanding our portfolio of channels. In August, we acquired three new TV channels, 4FanTV, 4FanDance and 4FanKids. As a result of this transaction, we have a total of 42 channels in our portfolio, which makes us the undisputable leader in the content market in Poland. The new channels have about 0.5% of audience shares and starting from next quarter will support our viewership figures. Next slide please. The second quarter of 2023 was an excellent quarter in terms of advertising. The broad market increased by 4.3% year on year and I'm very pleased to say that our revenue from advertising grew slightly above the market trend. We generated 345 million zlotys in revenue from advertising, that is 4.4% more than last year. As a result, we held a very high share in TV advertising and sponsorship market at the level of 28.7%. Our performance in the media segment in the first six months of this year was also very good. The entire portfolio of TV Polsat channels posted audience shares of 21.9%. Our main channel Polsat contributed 7.9% to this result, while our thematic channels generated 14% of audience share. Again, very satisfactory results given the negative impact of the refarming to the DVB-T2 standard that I have already mentioned when presenting Q2 results. In the first half of this year, the advertising market was very strong. We increased our revenue from TV advertising and sponsorship by 4.3% and outperformed the broad market as you can see on this slide. We maintain very high shares in the TV advertising and sponsorship market also over the long time horizon. In the first half of the year, we recorded a market share of 28.4%. To sum up, I am extremely pleased with the operating results of the TV segment and the online segment. We have very good viewership results despite regulatory headwinds. We maintain high market shares in the advertising market and we posted excellent results in the online segment. The acquisitions that we made will support our operation in both online and TV business. Let me also say that this quarter, the media segment recorded very good financial results. This quarter, we finally turned around the trend and reported growing a bit a year on year, but I will leave these details to Kasia. Thank you very much. And now Maciek will tell you about our performance in B2C and B2B segment, as well as energy segment.