Cyfrowy Polsat S.A. Ord

Good afternoon and welcome to the earnings call of Polsat Plus Group for the second quarter of 2024. Can I have the next slide, please? 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 Mr. Piotr Żak, President of the Management Board at Telewizja Polsat. After the presentation, we will hold a Q&A session. I strongly encourage you to post your questions in the chat section in advance. Thank you. Mr. Błaszczuk, the floor is yours.

Good afternoon, ladies and gentlemen. Welcome to our results conference call for the second quarter of 2024. Today's presentation is divided into four sections. I will present the key highlights of the past quarter. After, Maciej will show you the operating results in our business segment and Kasia will discuss our financial results. I will end the presentation with a quick summary and we will move on to the Q&A section. Next slide, please. Let's start with the key events of 2024 second quarter. Next slide, please. The past quarter was a very good quarter for Polsat Plus Group in all our operating segments. In the B2C and B2B service segment, we consistently and effectively built value across all customer groups. In second quarter, RRPU per contract B2C customer maintained a high pace of growth at 4.7%, RRPU per B2B customer increased by 1.5%, while RPU in the prepaid segment grew by 1.1%. As a result, we recorded 2.9% growth in our retail revenue. We also increased the coverage of our fixed broadband internet access services by almost 50%. Thanks to the new wholesale access agreement with Vectra and Polski Światłowo-Dotwarty, today we can provide services to over 10 million households. This was also a busy quarter in the media segment. We are investing in attractive content and sports rights for our viewers. We acquired exclusive broadcasting rights to UEFA Europe League and UEFA Conference League for the next three seasons. We also bought broadcasting rights to the first and second divisions of Bundesliga. We have also prepared a new programming schedule for the fall with many new formats, some old favorites and a new breakfast program. Moving to the green energy segment, we started technical commissioning ahead of schedule at the Przerów wind farm with 50.4 MW capacity. This brings our generation capacity in wind up to 150 MW. We opened our third publicly accessible hydrogen refueling station under the Neso brand in Gdańsk. Three more stations in Gdynia, Wrocław and Lublin are almost completed and will be put into operation within the next weeks. We have received funding in the amount of almost 50 million euro from European Climate, Infrastructure and Environment Executive Agency for the construction of five more stations. And finally, we are shareholder, alongside ZEPAK, in the largest and very promising wind project located near Opole, with about 500 MW of capacity. This farm is going to be based on state-of-the-art, more efficient wind turbines with greater capacity. Next slide, please. These were the main events of the last quarter. Now, let's look at our operating results in detail. Please go ahead.

Thank you very much, Mirek. Can I have the next slide, please? Ladies and gentlemen, it will be my pleasure to present to you the results of the second quarter and the first half of 2024 for the media and online segment. Let's move on to the next slide. The second quarter was a very good quarter for the media segment, both in terms of viewership and advertising market position. During this period, Televizia Polsat Group channels achieved a 22% audience share in the commercial group, with the main channel having 7.1% and our thematic channels 15%. Year over year, we maintain stable viewership results, which in my opinion is a very big achievement. Especially since at the turn of June and July, the public television broadcast the European Football Championships, which obviously affected all other channels. And Polish people love football, so it was a really big effect as well. In the TV advertising market, on the right hand of the slide, we maintain a very good and stable position. In the second quarter, the market grew by 5.7%, while our advertising revenues during that same time increased by 4.8% to over 360 million zlotys. This gives us a total market share of over 28% in the advertising and sponsorship markets. Let's move on to the next slide, please. When talking about the first six months of 2024, in terms of viewership and our position on the advertising market, we're still very good, still very stable. Our channel's share in viewership during the first half of the current year is 21.8%, which is a stable level year to year. The main channel's contribution to this result is 7.1%, and our thematic channels are 14.7%. These results translated into an increase in our advertising revenue by 6.2% year over year to nearly 670 million zlotys. Our share in the TV advertising and sponsorships market remains high, above 28% on a growing market. Can I have the next slide, please? Moving on to the online segment, as you can see, we are effectively building our position in the online market. We are a leading player in this market, as confirmed by the operational results that you see on the slide. In the second quarter of 2024, the average number of monthly users was 20.4 million, and the number of page views exceeded 1.8 billion. Moreover, in the first half of the year, the Pulsat Interior Group was continuously the leader in the mobile category, which from our perspective is the most prospective category in the future. And we also achieved the highest reach in the market among internet websites three times during that time period. Next slide, please. Over the past months, we've been working very hard and very intensively on the new autumn schedule, which we presented about two weeks ago during our conference. Alongside well-known, proven formats that we've done before, such as Girlfriends, Dancing with the Stars, Your Face Sounds Familiar, there will also be a lot of new and exciting additions. The autumn schedule includes two new premiere reality shows, Special Forces Poland and My Mom, Your Dad, two new TV series, Neighbors, Sins, and the second season of In-Laws. As well, we're returning with stand-up, with comedy shows, with the Detective Malinowski series, and the very old-school game show Brawl Over Cash, which our viewers should remember from over a decade ago. Additionally, we have introduced a new breakfast slot called Halo to Polsat. It will be broadcast every Friday to Sunday from 8 a.m. All in all, I believe this is a very strong schedule. It will support our viewership results and our financial results in the second half of this year. Summarizing the second quarter and the first half of this year in the media segment, I'm very pleased with the results we have achieved. Our viewership remains stable despite the European Championship Series. We have a high and stable share of over 28% in the growing advertising market. We prepared a rich and interesting autumn schedule which will support us in the future. And in the meantime, our online segment and InteA is absolutely cementing their position. at the very top of the online Polish media segment. That's all from my side. Thank you very much for your attention and I hand over the presentation to Maciek, who will tell you more about our operational results in the B2C and B2B services segment. Thank you. Thanks, Piotr.