Cyfrowy Polsat S.A. Ord

Good afternoon, ladies and gentlemen, and a warm welcome to the results call of Polsat Plus Group for the first quarter of 2025. Could I please have the next slide? Today's presentation will be made by Mr. Mirosław Błaszczyk, the CEO of Cyfrowy Polsat, Mr. Maciej Stec, the Vice President of Cyfrowy Polsat Responsible for Strategy, and Ms. Katarzyna Ostaptoman, CFO and Management Board Member Responsible for ESG. Please post your questions in the Q&A panel during the presentation. Please remember to sign your questions with your name and institution as we do not take anonymous questions. Thank you. Mr. Borszczuk, the floor is yours.

Good morning. Welcome to Cyfrowy Polsat first quarter 2025 Earnings Conference. Today's presentation will follow our standard agenda. I will start by highlighting the key events of the past few months. Then Maciej will discuss the operational results of our business segments and Kasia will present the financial results. I will conclude the presentation with a brief summary and then we will move on to the Q&A session. Let's move on to the key highlights of the past quarter. We started 2025 very well. Let me begin by underlining very good financial results of our group. Our revenue increased by nearly 4% to 3.5 billion zlotys and adjusted EBITDA rose by almost 5% to 809 million zlotys. In the first quarter, we made a partial prepayment of our bank loan in the amount of 681 million zlotys using funds from the sale of a 10% stake in Asseco Poland. We are observing very good trends in the B2C and B2B service segment. We continue to successfully implement our multiply strategy in this segment. As a result, RPU per B2C customer increased by 4.2% to 77.7 zlotys and RPU per business customer grew by 1.2% to over 1500 zlotys. At the same time, we maintain a record low churn rate which was only 6.8% in the first quarter. We also acquired one frequency block in the 700 MHz band, which we won in an auction for 363 million zlotys. We'll use these frequencies as well as the block in the 3.6 GHz band acquired at the beginning of last year to expand our 5G network. It was also a very good quarter for the media segment. The success of the spring programming schedule translated into very good viewership results for our TV channels. We recorded a 22.1% market share. Additionally, we achieved excellent results in the TV advertising market, which Maciek will show you in a moment. I'm also very pleased that Polsat Interia Group was once again the leader in the internet market in Poland. In the green energy segment, EBITDA increased by nearly 16% to 57 million zlotys. Work on the Jezebel wind farm is progressing very quickly and is well ahead of schedule. I'm pleased to inform you that 45 out of 63 turbines are already assembled. Moreover, last week we started the technical commissioning of the first wind turbines on this farm. In the hydrogen chain area, in the first quarter of this year, we won tenders for the delivery of a total of 41 hydrogen-powered buses to Kraków, Rybnik and Rzeszów, and we are participating in further tenders. Before I pass the floor to Maciek for the operating results, let me say once again that the first quarter was a very good one for Polsat Plus Group, both in terms of operating results and financial results. Maciek, please go ahead.

Thank you, Mirek. Hello, everyone. Indeed, just as Mirek said, we started 2025 really well. Let me begin by discussing the results of the media segment now. Next slide, please. In the first quarter of 2025, we achieved excellent results in both viewership figures and on the TV advertising market. As you can see on the slide, our channels reached 22.1% market share in the commercial target group, which is a great success. Our main channel posted recorded 7.5% audience share, while our thematic channels reached 14.6%. We also performed very well in the advertising market. While the market grew by 1%, we grew over 4 times faster by 4.1%. As a result, our share in the TV advertising and sponsorship market increased to 28.7%. Let's move on to the next slide. We are also seeing strong performance in our online segment. We have a strong and stable presence in the online market with 21 million real users and 1.9 billion page views. We are successfully maintaining our strong position in this market. In the first quarter of 2025, Polsat Interior Group was the number one online publisher in Poland and we were also the leader in the mobile category. Small screen devices are very important to us because today more and more content is consumed on smartphones. Let's take a look at the next slide. The very good results of the segment were driven by a successful spring programming schedule and attractive sport events. We based our spring lineup mostly on well-known proven formats such as Must Be the Music or Dancing with the Stars, popular TV series of our own production, cabaret shows. And additionally, the sports rides that we acquired last year are very popular among our viewers. Formula One races, Bundesliga and La Liga with two leading Polish players are very successful. Also, the UEFA Conference and the Europa League were widely viewed, especially given that two Polish teams came quite far. Summing up, it was a very strong quarter for our media segment. We posted growing viewership figures and solid growth of advertising revenue. Combined with cost control, this translated into very good financial results of the segment. Next slide, please. Moving on to the B2C and B2B services segment, I can say that we had a very good quarter in this segment as well. Let's look at the results. Next slide, please. In the B2C and B2B segment, we consistently execute the Multiplay strategy, which consists in upselling and cross-selling services to our customers. At the end of the first quarter of 2025, already over 2.5 million customers use our Multiplay offering. This customer base increased by 2.4% year over year. This means that Multiplay customers account for 44% of our total customer base. As mentioned, we successfully upsell products and services to this customer group. And as a result, at the end of the first quarter, they had 7.8 million services in total, up by 300,000 year over year. Our churn rate, the key indicator of our customer loyalty, continues to decline. At the end of March, churn fell to 6.8%. In my view, this is the best proof of the high quality of our services and satisfaction of our customers. Next slide, please. We also saw continued growth of our base of contract services to 13.3 million in Q1 2025. We added 210,000 voice services, bringing the total up to 6.5 million. Our internet base also grew by 145,000 services. This increase was driven primarily by the expansion of fixed internet services. Our pay TV base is still facing some pressure, but we mitigate this with a growing number of pay TV services in IPTV and OTT technologies. These newer technologies are helping us offset the decline in traditional pay TV services. Can I have the next slide, please? One of the focal points of our Multiplay strategy is building customer value, and we have been doing that successfully over the past several years. In the first quarter of 2025, ARPU per contract B2C customer increased by 4.2%, reaching 77.7 zlotys. This was driven mainly by strong sales of mobile and internet services, as we saw on the previous slide. We also observed the growing saturation of our customer base with services thanks to the effective cross-selling and upselling. At the end of first quarter, this ratio increased to 2.32 services per customer. So, a very good quarter in the B2C segment. Our RPO is growing organically. We are building value and at the same time, churn remains on record low levels. Next slide, please. In the prepaid segment, we maintain a high base of 2.43 million provided services in a highly competitive market. However, our key focus is to build value in this customer segment. So despite the decrease in the RGU base, we are satisfied that we maintain the high RP of 17 slots per service in the first quarter. In my opinion, this is a solid result in this tough segment. Next slide, please. I'm also very pleased with our performance in B2B segment in the first quarter. This is also a very competitive market segment. As you can see, we consistently maintain a high and stable base of about 68,000 B2B customers. At the same time, our B2B customers increased by 1.2%, exceeding 1,500 zlotys, thanks to the tailor-made services that meet the exact needs of our customers. Next slide, please. Now let's move on to our third business segment, green energy. Next slide, please. As you remember from our previous conference a couple of weeks ago, we have already achieved two goals in the area of green energy announced as a part of our strategy 2023+. Firstly, we are a leading producer of clean green energy in Poland. Secondly, we have completed the full value chain based on green hydrogen, which we can now scale and adjust to market demand. Most importantly, we maintain our financial goal for this segment. We would like to generate approximately 500 million zlotys in the green segment starting from 2026. Next slide, please. Our green electricity production increased by 40% year-on-year thanks to the launch of new wind capacity. In the first quarter of 2025 alone, we produced 278 GWh of electricity. Wind energy production more than doubled, reaching 105 GWh. Of course, this was the effect of commissioning an additional capacity of 123 MW at the Przyrów and Czuchów wind farms in 2024. I'm also extremely happy with the progress that we are making at the construction site of the Drzeżewo wind farm. Already, 45 out of 63 turbines are assembled. What's even more exciting, last week we started technical commissioning of the first turbines at Drzezewo and we produced the first energy from this farm. Next slide, please. I'm pleased to report that in the first quarter of 2025, the green energy segment generated a BD8 of 57 million zlotys, up by 15.8% year over year. This growth was primarily driven by higher production volumes resulting from the expansion of our wind farms. With 139 MW of capacity, the Zrzeżewo farm will double our capacity installed in wind power and will contribute significantly to EBDA once we finish and launch commercially by the end of this year. So, to summarize, very good operating results and a very good quarter across all our business segments. In the media segment, viewership increased to 22.1% and advertising revenue grew by 4.1%. This translated into very good financial results of this segment. In the B2C and B2B services segment, the Multiplay customer base grew to nearly 2.53 million customers. RPU per individual contract customer increased by 4.2% to 77.7 zlotys and churn is at the record low level of 6.8%. We are seeing stable, solid results in the prepaid and B2B segments. In the green energy segment, we are finalizing our strategic investments. Production from renewable energy sources is steadily increasing and the segment's EBITDA is growing. We maintain our goal of approximately 500 million zlotys EBITDA from green energy by 2026. Thank you for your attention. I will now hand over to Kasia, who will talk about our group's financial results. Kasia, the floor is yours.