Cyfrowy Polsat S.A. Ord

Good afternoon and a warm welcome to Polsat Plus Group's earnings conference for the second quarter of 2025. Can I have the next slide, please? Before we begin, let me introduce our speakers for today. Andrzej Abramczuk, President of the Management Board, Maciej Stec, Vice President for Strategy, and Katarzyna Ostaptoman, Chief Financial Officer and Management Board Member responsible for ESG. To ensure a smooth discussion, please feel free to submit your questions via the Q&A panel at any time during the presentation. Kindly include your name with each question, as we do not accept anonymous questions. Thank you in advance. Next slide, please. And now, without further ado, let's go ahead with the presentation. Andrzej, the floor is yours.

Good afternoon, ladies and gentlemen. Thank you for joining us today. It's a pleasure to welcome you for the first time at the result call of Polsat Plus Group. Before we dive into today's agenda, allow me to briefly introduce myself. My name is Andrzej Abramczuk. I have dedicated over 25 years of my professional career to the telecommunication industry. For more than 15 years, I have worked with Polsat Plus Group in various roles. For the past seven years, I have been CEO at Netia and currently I am honored to additionally head Cifrowy Polsat and Polkontel. Some of you may remember me from similar meetings when Netia and Midas were publicly listed companies. Before we dive into the presentation, I would like to emphasize that my priorities uphold the advanced long-term strategy of our Group, ensuring continued growth and stability for all our stakeholders. Going over today's agenda. First, we will highlight the main events in the second quarter. After that, we'll discuss our operating and financial results. We will end in a short summary and take your questions. Let's move to the next slide, please. This was a solid, stabilized quarter for our group. In the telecommunications space, the main highlight was the launch of our new flexible Multiply offer, which helped us build the value of the customer base. Maciek will share more details about this soon. In our media segment, we saw strong growth in viewership, which aligned with long-term strategy. This gives us a solid position in the advertising market. At the same time, our online division, Grupa Polsat Interia, remains the leader in the Polish internet market. In green energy, I'm proud that we have finished the installation of all 63 turbines at the Dzierzewo wind farm, and most of them are already running in the test mode. Our company Biopaliwa i Wodór also won a capacity market auction secure 44 MW of capacity obligations starting in 2029. This contract is expected to bring in about 400 million zlotys over 17 years. We have also secured an investment loan of almost 1 billion zloty for the Dzerzewo wind farm. I am especially pleased because this shows that the financing institutions have strong confidence in our group, our management and our strategy. Now, on the right side of this slide, you can see the numbers. We made 3.6 billion zlotys in revenue this quarter, up nearly 4% compared to last year. Our adjusted EBITDA stayed strong at 824 million zlotys. ARPU per B2C customer continue along a steady growth path up to 4.3% year on year. We now have over 3 million Multiplay customers using an updated definition, which Maciek will explain soon. And this base is also growing. our audience share went up to 22.5 percent and our green energy production grow by over 40 percent to 314 gigawatt hours in the second quarter of 2025. let's now move in the details magic the floor is yours good afternoon and welcome as always it will be my pleasure to present the operating results of our business segment can i please have the next slide

I can say that this was a very good quarter for our media segment, both in TV and in the Internet. Let's move to the next slide, please. I'm very satisfied with our viewership figures and our strong position in the advertising market this past quarter. Let's get right to the numbers. The audience share of TV Polsat Group channels grew to 22.5%, our thematic channels contributed a solid 15.2%, while our flagship channel Polsat secured 7.3% of audience shares, proving that our programming choices are well received by our viewers. The advertising market grew by 3.2% year over year, and I'm proud to report that our TV advertising revenues grew in line with the market, increasing to 373 million zlotys. In Q2 2025, we maintained a stable market share of 28.2%. It's always better to look at the performance in the media segment over a long period of time to smooth out seasonal effects. So let's see the results for the first half of the year. Can we have the next slide, please? Our performance over the past six months was also very good. Our main channel delivered a solid 7.4% audience share in the commercial group. Adding 14.9% of our thematic channels, we have a total of 22.3% and that is an increase by half a percentage point versus last year. On the advertising market, we clearly outperformed the market in the first half of the year. Our advertising revenues grew by 3.7% year over year, outpacing market growth of 2.2%, which is an outstanding result. Our market share grew to 28.4%. Next slide, please. Now let's talk about the internet. Once again, Polsat Interia Group is the number one internet publisher in Poland. Not only that, we are also a leader in the mobile category. That is really good news because today everybody is basically glued to their smartphones and this is a prospective market for us. Let's look at the numbers. 21 million real users and nearly 2 billion page views monthly. And these figures clearly demonstrate Polstat Interia's strong position in the online market and will continue to strengthen our presence. Next slide, please. Our strong results in the media segment this quarter were driven by a very successful spring programming lineup and smart investments in engaging sport events. We built our spring schedule around well-known popular shows and series that our audience loves. On top of that, we offered our viewers many attractive sports broadcasts that drew massive attention. The Volleyball Nations League was a sensation, especially with the Polish team winning the championship. Tennis fans got a treat too, seeing Iga Świątek take home the Wimbledon title. Of course, Formula One races and football, Bundesliga, La Liga, UEFA Europa and conference leagues all remained hugely popular. Next slide, please. Let's move on from media to telco. Next slide, please. As Andrzej said at the beginning of the presentation, one of the key highlights of this quarter was the introduction of our latest Multiplay offering. It's simple, it's ultra-flexible, and most importantly, it's designed to drive ARPU growth by letting customers mix and match what fits them best. Why is it so simple and transparent? You start with any two core services for just 80 zlotys. You can pick a mobile subscription with 180 GB of data, or fixed-line internet up to 600 Mbps, or LTE 5G mobile internet with up to 600 GB, or TV package with Pulsat box and 85 channels. And if you want more, Just add another service from our portfolio for 30 zlotys a month, maybe another core service, two streaming platforms, or the EL package upgrade. You get three services, you pay 110 zlotys, you get four services, you pay 140 zlotys, and so on. Extra simple, no hidden catches. Bottom line, we've made it easy for customers to build their own bundle, get real value and see exactly what they are paying for, no surprises and no confusion. At the same time, our new Multiplay offer helps us focus even more strongly on driving RPO growth going forward. Next slide, please. The simplified multiplayer strategy has led to a clearer definition of our multiplayer customers. Under this new definition, we now have over 3 million multiplayer customers. Any customer using at least two services, any two services even of the same type, from any company within our group is counted as a Multiplay customer. Previously, our definition only covered customers participating in loyalty programs such as SmartDOM within individual companies. To give you a clearer picture, let's look at the numbers. In Q2 2025, under the previous definition, we had over 2.5 million Multiplay customers. We now also include 209,000 customers with two or more services across different companies and 268,000 customers with Multiplay services of the same type. This brings our total Multiplay customer base to a little over 3 million. On the bottom graph, we restated historical data to ensure transparency and comparability. Under the previous definition, in Q2 24, we reported 2,477,000 Multiplay customers, which was 43% of our customer base. With the new definition, this number increased to 2,964,000, representing 51.5% of our base. In Q2 2025, under the old definition, we would have reported 2,536,000 Multiplay customers. While using the new definition, we have 3,000,000 13,000 Multiplay customers. I would like to underline that this updated definition is intended to give a clearer and more accurate view of our customer base and the potential ahead of us for saturating this base with additional products and services. Let's move on the operating results on the next slide. So, as I've already said, we have over 3 million Multiplay customers and we maintain a high and stable base despite challenging market conditions. This base increased by 1.7% or 49,000 Multiplay customers year over year. Thanks to our successful upselling strategies, today 53% of our total customers use our Multiplay offering. Our Multiplay customers have 10.6 million RGU's, up by 832,000 year over year. A larger part of this increase was driven by the uptake of additional services under our new Multiplay offer. I'm also very happy with the evolution of our churn rate, which decreased to 7.1% in Q2 2025. The consistently low level of churn reflects strong customer satisfaction and loyalty. I expect that the new Multiplay offer will help us keep churn low going forward. Let's move to the next slide, please. We provide more than 13 million contract services, 6.5 million of which are mobile telephony services, 4.6 million are pay TV services and 2.2 million are internet services. Growth of 1.5% year over year is driven mainly by mobile telephony, which increased by nearly 210,000 year over year. We also recorded good sales of mobile and fixed internet services up to 159,000. Pay TV remains under some pressure. However, growth in IPTV and OTT is helping offset the declines in traditional pay TV. Let's continue to the next slide, please. I'm excited to report a solid 4.3% year-over-year increase in RPU per B2C customer, reaching 78.4 zlotys. This growth was driven by our strong sales in mobile and internet services, as well as execution of our Multiplay strategy. We also saw the RGU per customer ratio increase to 2.33 on the back of efficient upselling of products to our customer base as part of our Multiplay strategy. If you think back to the slide showing our new Multiplay offer, please notice that we have huge potential when it comes to saturating our customers with additional services. Next slide, please. We maintain a high base of prepaid services with 2.38 million RGU in Q2 2025 despite intense market competition. Our prepaid RGU remains high at 17.7 zlotys in Q2 2025, recording a small decline of 1.7% year-over-year from 18 zlotys in Q2 2024, but an increase from 17 zlotys in Q1 2025. Here I would like to emphasize that our priority is to maintain value in this highly competitive market segment. In spite of the pressure that we are experiencing on the prepaid RGU base, RPO per RGU remains on a high, relatively stable level, demonstrating our ability to retain high-value customers. Can I have the next slide, please? In the B2B segment, we successfully maintained the scale of our customer base, which amounted to 68,000. Despite the highly competitive environment, we have seen a 4% year-over-year increase in RPU up to nearly 1,550 slots per month. This growth demonstrates our effective management of the B2B portfolio and successful monetization strategies. And the next slide, please. Let's now move to the performance of our last business segment, Green Energy. And next slide, please. Diving straight into the operating results, this quarter we have seen remarkable growth in our renewable energy production. Green energy output increased by 41% year over year, reaching 314 GWh in Q2 2025 and 592 GWh in the first half of 2025. This strong performance was driven by the expansion of our wind production capacity. Last year, we launched two wind farms, Człuchów in February and Przerów in June. And what is important, we are also making excellent operational progress. One of our major achievements this quarter, as Andrzej has already pointed out, is the near completion of the Drzeżewo wind farm with a capacity of 139 megawatts. All 63 turbines have been installed, and what is more important, 51 are already being tested. And the next slide, please. In the green energy segment, we maintain a high stable level of EBITDA, 66 million zlotys in Q2 and 123 million zlotys in the first half of the year. I'm satisfied with this performance given that we are operating in the environment characterized by low energy prices. Additionally, we have a challenging comparative base in 2024 following last year's strong biomass sales. Please recall, the energy from biomass was contracted back in 2023 at higher prices and we were able to secure favorable terms for the supply of biomass in 2024. Looking ahead, with the Drzezewo wind farm almost completed and scheduled for commercial launch by the end of 2025, we will double our installed wind capacity. This will further strengthen our future EBDA and drive sustainable growth in the upcoming periods. Okay, ladies and gentlemen, this was my last slide. Before I pass the floor over to Kasia, let me briefly sum up. We recorded solid operating results across the board the second quarter of 2025. In the media segment, audience shares were growing thanks to our successful spring schedule to 22.5% and we significantly outperformed ad market in first half of 2025 with the ad revenue increased by 3.7%. In the B2C and B2B services segment, RPO per customer both in B2C and in B2B continues in an upward trend by up 4.3% and 4% respectively. At the same time, we are very happy with the low level of churn, only 7.1% in Q2 2025. Our new, simple and flexible multiplayer offer is designed to further drive the value of our customers. In the energy segment, we have almost completed our key strategic projects and the priority for the upcoming quarters is to focus on monetizing our investments and delivering the promised EBITDA. Thank you and I hand over to Kasia for the discussion of our financial performance.