Cyfrowy Polsat S.A. Ord

Good afternoon everyone and a warm welcome to the earnings call of Polsat Plus Group for the first quarter of 2024. Could I please have the next slide? Today's presentation will be delivered to you by Mr. Mirosław Błaszczyk, CEO of Cyfrowy Polsat, Mr. Maciej Stec, Vice President responsible for strategy, Ms. Katarzyna Ostaptoman, CFO and Management Board Member responsible for ESG and finally Mr. Piotr Żak, President of Telewizja Polsat. After the presentation, we will hold a Q&A session, but I encourage you to post your questions in the chat section in advance. Thank you. Mr. Błaszczuk, the floor is yours.

Good morning and a warm welcome to everyone. The agenda for today's meeting is as follows. I will begin discussing the key events of the past quarter. Next, Piotr and Maciej will present the operational results of our business segment and Kasia will share our financial results. I will conclude the presentation with a brief summary followed by a Q&A session. Can I have the next slide, please? Let's begin with the key events of the first quarter of 2024. Next slide, please. In the first quarter of this year, we achieved very good results in the B2C and B2B service segments. RRPU increased across all our customer groups. RPU per contract customer grew by 4.5%, RPU per business customer by 3.9%, and prepared service RPU increased by 1.2%. We consistently maintain a low churn rate. Additionally, we are systematically expanding the coverage of our 5G network. Already 23 million people are within the coverage of 5G+, and 6 million can access the 5G Ultra network, offering speeds of up to 1 gigabit per second. In the first quarter, we concluded an agreement to sell a portion of our IPv4 address pool for $56.1 million. In the media segment, TV and online, we recorded strong growth in advertising revenues, up by plus 8%. Also, our spring programming achieved very good viewership results. I'm pleased to inform you that our new business segment, Green Energy, generated 47 million zlotys in EBITDA during the first quarter, thanks to the dynamic execution of our strategic projects. Next slide, please. Now let's look at the detailed operational results of each segment. Piotr, the floor is yours.

Thank you very much, Marek. Ladies and gentlemen, good afternoon and welcome. Let's begin with the viewership figures and our position in the advertising market in the first quarter of 2024. Could we have the next slide, please? In Q1, our main channel achieved an audience share of 7.1%, while our thematic channels had 14.4%. This gave us a total viewership of all TV Polsat group channels of 21.5% in the commercial target group. This translated into very good results in the advertising and sponsorship markets. As you can see from the graph on the bottom right, the group's advertising revenues grew to 307 million zlotys, recording an increase of 8% compared to that of the first quarter of last year. Our ad revenues grew just a slightly bit slower than the broad market, which grew at 9%. As a result, the share of the TVPulse ad group in the advertising market in the first quarter settled at 28.1%. Can I have the next slide, please? Moving on to the online segments, we are consistently and successfully realizing our strategy. So in Q1 of 2024, we had a very strong position in the online market. As you can see, our sites were visited on average by 21 million users every month, which gave Pulsat Interior Group a very strong second position in the market and actually On a daily basis, we alternate with regards to who's first and who's second in the online market. So it's an eternal competition for our editors, which actually makes them try very, very hard every day. We also maintain a very high and stable number of page views, with our users generating nearly 2 billion of them every single month. On to the next slide, please. Ladies and gentlemen, as a response to many questions we had on the previous conference, we created this slide showing a little bit about our strategy in our market. Today, we repeat this every time we can, content remains absolutely crucial, content is king, and it is the key source of competitive advantage. As a result, over the years, the TV Polsat Group became Poland's largest unique content producer. We offer the largest and most diverse portfolio of channels in the Polish market, Currently, you have access to as many as 43 of them at any given time available on a wide variety of topics. We have channels dedicated to sports. We have channels dedicated to news services, games, music, TV series, everything you can think of. You'll find it with us. A large portion of this content is produced independently by us using our own infrastructure in our own TV studios. Thanks to the very hard work of our people. So big thanks to them as well. And we focus on producing in the Polish language. And all of our content is generally very well received by our viewers. And if ever it isn't, that's okay. We adjust. We try something new. That is the nature of the entertainment industry. Additionally, in order to deliver our content to the widest possible audience, we make it available via terrestrial television, satellite television, cable TV, IPTV, OTT through our set-top boxes, And of course, you can always watch online on our streaming platform, Pulse Hotbox Go. And if you're ever on the move, you can always watch on mobile as well. So summarizing, any content you can think of, any device you can think of, and any time that you wish. That's all for this slide. So just a few quick words of summary before I pass on to Maciek. We closed the first quarter of this year with very good results in both TV and the online segment. I'm satisfied with our viewership figures. The spring schedule went well. And as a result, we recorded a very high increase in the advertising revenues, plus 8%, and we maintain a strong position in the advertising market. Thank you very much, Maciek.