Cyfrowy Polsat S.A. Ord

Good afternoon, everyone, and welcome to Cyfrowy Polsa's earnings call for the fourth quarter and the full year of 2025. Please move on to the next slide. Let me introduce today's speakers. We are joined by Mr. Piotr Żak, President of the Management Board, Mr. Maciej Stec, Vice President for Strategy, Ms. Katarzyna Ostaptoman, Chief Financial Officer, Mr. Bartłomiej Drwa, Member of the Management Board, and last but not least, Mr. Janusz Kiszka, Chief Financial Officer at Telewizja Polska. Please turn to the next slide. The agenda for today is as follows. Bartek will begin with the key highlights of 2025. This will be followed by a detailed discussion of the operating performance of our individual business segments by Maciej, Janusz and Bartek. Kasia will then walk you through the group's financial performance for the past year. After the presentation, we will move on to the Q&A session. As always, the Q&A panel is open throughout the presentation, so please feel free to submit your questions at any time. As a reminder, in line with our standard practice, we do not answer anonymous questions. Kindly include your full name and the name of your institution with each question. This concludes the introduction. I will now hand the floor over to Bartek to present the key highlights. Bartek, please go ahead.

I warmly welcome you all. I have a pleasure to present the most important events that took place in Pulsar Plus Group in 2025. I will start as usual with the largest segment of our business, the telecommunications segment. The key event of the past year was the introduction in June 2025 of a new Multiplay offer. The new offer was positively received by customers thanks to its attractiveness and simplicity. The result is an increase in RPU, an increase in the nominal numbers of services sold, and an increase in the saturation rate of customers using additional services. Maciej will explain this in more detail in his part of the presentation. Our Multiplay strategy is supported by the high quality and reach of our telecommunications network. We deliver 5G technology to 26 million of Poles. And in 2025, we expanded the coverage of our fixed broadband network to about 70% of households thanks to the wholesale agreements. An important note here. In 2025, we renewed the frequency in the 900 MHz band and we purchased the frequency in the 700 MHz band. This frequency will help us to further develop our 5G network. It is worth noting that over the next couple of years, we do not have renewals of our frequency portfolio, which will allow us to improve our cash flows. This will be more evaluated by Kasia in her part of the presentation. Moving to the next segment of our business, the media segment. Polsat Group and its channels maintained a very strong market position, both in terms of viewership and in terms of advertising market share. Specifically, 22.5% share of the viewership market for the entire group of channels and 28% share of the television advertising market. Janusz will talk more about this in his part of the presentation. Our online leg, Polsat Interior Group, is the leader among internet publishers in Poland, yet another quarter in a row. And all of this was made possible by an excellent content mix. This includes both in-house productions loved by millions of Poles, as well as a carefully constructed portfolio of spotlights that supports both the viewership of our channels and the attractiveness of our pay TV packages. Now, moving to the youngest segment of our activity, the green energy segment. The key event in this segment was undoubtedly the completion of capital intensive investments planned under the 2023 plus strategy. Last year, we completed the construction of our largest wind farm the Drzezewo farm. As a result, we reached production capacity of nearly 0.5 GW installed in renewable energy. We started the technical commission of this farm in mid-2025, and the first quarter of 2026 we obtained a generation license. Among other activities in this segment it is worth noting that we expanded green hydrogen production capacity by an additional 0.5 megawatt alkyne electrolyzer up to 3 megawatt in total. In this facility we can produce up to 1.2 ton of green hydrogen per day. This is needed to execute our project related to the sale of hydrogen buses and hydrogen refueling stations under one tenders. In 2025 we delivered 28 Nestle buses and for 2026 we have contracted another 49. Moving to the next slides, we have finally a few corporate events. One of the key events was the sale of a 10% stake in Asseco Poland. We used the proceeds from this disposal to make an early partial debt repayment. In addition, we secured nearly 1 billion zloty of project financing for our largest renewable energy project, the Dzerzewo Wind Farm. This is clear evidence that banks and financial institutions believe in this segment and that the business model we present is credible. Concluding this part, the last piece of information we communicated in the current report in December 2025 the court in Liechtenstein issued a final ruling ending the proceeding concerning the company's shareholder, TV Foundation. That's all from my side regarding the key events of 2025. Now it is time to discuss how these events translated into our operating results. I hand over to Maciej who will tell you about the operating results of the B2B and B2C segment in telecommunications. Maciej, the floor is yours.

Thanks Bartek. Let's start with our B2C and B2B services segment. We recorded very good operating results in this segment in the fourth quarter of last year. Let's look at them in more detail on the next slide. As you may remember, we launched a new Multiplay offer in June last year. A very simple and flexible offer and it's delivering very good results. We are consistently building the scale of our Multiplay customer base and we are highly effective in upselling services to our existing customer base within the refreshed offering. As a result, our multiply customer base increased by 38,000 year-on-year. And what's more important, by the end of December, 20% of our customers had already migrated to the new offer. By the end of March, the share increased further to 28%. This clearly confirms the strong attractiveness and popularity of the offer. At the end of 2025, over 3 million customers use our Multiplay offering. This means that already 54% of all our customers have at least two services with us. On the other hand, it also highlights the significant potential to further increase Multiplay penetration. Effective upselling is also visible in the number of services used by Multiplay customers. At the end of 2025, they used 11.9 million RGOs, up by almost 1.8 million euro an year. At the same time, we continue to maintain a low churn level at 7.7% in 2025. Although this is slightly higher than last year, it remains very low compared to the industry average, confirming high customer satisfaction and loyalty. Next slide, please. Our strong multiplayer performance continues to be a key driver of growth in contract services. By the end of 2025, we provided over 13.5 million contract services to our B2C customers, representing solid year-on-year growth of 2.4%. This growth was mainly driven by strong sales of mobile and fixed internet services, which increased by almost 270,000 year-on-year. We also saw a solid contribution from mobile telephony with services up by 180,000 year-on-year. As expected, the pay TV market remains under pressure. The decline in traditional pay TV services is partly mitigated by the continued shift towards IPTV and OTT solutions. Overall, we see a healthy mix within our contract base, fully aligned with market trends and supported by our Multiplay strategy. Next slide, please. As I said at the beginning, we are seeing very strong adoption of the new Multiplay offer, clearly reflected in ARPU growth. In the fourth quarter of 2025, ARPU per B2C customer reached 81.6 lottes, up by 5.4% year-on-year. This is strong momentum and we expect to continue in the coming quarters. The growth drivers are clear. We are executing our Multiplay strategy consistently. It supports strong mobile and internet sales and enables effective upselling across the customer base, translating into higher customer value. We also see a strong shift in customer choice. Under the new Multiplay offer, customers increasingly choose bundles with three or more services. Sales of these bundles have nearly tripled compared to the period before the launch in June last year. This is reflected in higher service saturation for customers. At the end of 2025, each B2C customer had 2.4 services on average, up from 2.3 last year. RP growth is a direct result of better bonding, better upselling, and a stronger customer mix. Next slide, please. Moving on to the prepaid segment, we continue to maintain a high and stable prepaid base of around 2.3 million services. Despite a highly competitive market, our priority in prepaid is clear. We focus on value, not volume. In the fourth quarter of 2025, prepaid ARPU increased by 5.2% year-on-year, reaching 18.2 zlotys. Even with a slightly lower base, we see good customer quality, prepaid customers tend to stay with us longer and stop up repeatedly, which supports value over time. We also strengthened our Pulsat Box GoPro position. We simplified the offer to three clear packages and expanded content by adding TVN, Warner, Bross, Discovery, and TVP channels, increasingly the total to nearly 200 channels. This significantly enhances the value proposition and positions Polsat BoxGo as one of the strongest TV and streaming offers on the market. Next slide, please. Moving on to the B2B segment, we maintain a high and stable base over 67,000 B2B customers, which is an important achievement in a very competitive market. As across the whole group, our focus in B2B is on building customer value. In the fourth quarter of 2025, ARPU per B2B customer increased by 2.4% year-on-year, reaching over 1.5 thousand lots per month. This growth is supported by tailored solutions and long-term relationships with our business customers. To sum up, I'm very satisfied with our operating performance in the B2C and B2B services segment last year. Our new Multiplay offer is clearly working. It is driving Multiplay customers' growth, higher service penetration, and strong RP momentum in B2C, up by 5.4%. Churn remains under control at a low level of 7.7%, while strong sales support RGU growth. Prepaid and B2B remained resilient. We maintained solid customer bases in very competitive markets while consistently building value clearly visible in our pre-growth. Overall, the fourth quarter delivered a solid performance. Importantly, we also see a continuation of these positive trends in the first months of the current year. This confirms that our multiplayer strategy is working and that our execution is delivering sustainable growth and higher customer value. Now, I will hand over to Janusz, who will discuss the media segment. Thank you. Janusz, the floor is yours.