Cyfrowy Polsat S.A. Ord

Good afternoon, ladies and gentlemen. It is my pleasure to welcome you to the conference call of Polsat Plus Group for the first quarter of 2026. Let's move to the next slide, please. Today's presentation will be delivered to you by Mr. Piotr Żak, President of the Management Board, Mr. Maciej Stec, Vice President, Ms. Katarzyna Ostaptoman, CFO, Mr. Bartłomiej Drewa, Management Board Member, and Mr. Janusz Pliszka, Management Board Member at Telewizja Polsat. Let's move to the next slide, please. Here you have the agenda of today's meeting. Bartek will start off by presenting the key highlights of the first quarter of 2026. After that, Maciej, Janusz and Bartek will discuss the operating results of our business segments. Kasia will then discuss the financial results of the past quarter, and we will sum up and answer all your questions in the Q&A session. Before we move on, I would like to remind you that during today's presentation, you can post your questions in the Q&A panel. I would like to remind you that we do not answer anonymous questions. Therefore, please kindly sign every question with your name and institution. Thank you very much. And over to Bartek for the key highlights. Bartek, please go ahead.

Thank you, Agata. Good afternoon, everyone. Let me walk you through the most important events that have taken place in Pulsat Plus Group since the beginning of 2026. We would like to highlight once again the success of our new Multiplay offer. It allows us to grow RPU across all customer segments, as well as to improve our financial results. You can see the effects on the right-hand side of this slide. Maciej will tell you more about this in his part of the presentation, and Kasia will cover it when discussing the financial results. We have informed you recently about an important development for us. We have signed a term sheet with Tower Link Poland. We have agreed on the key parameters of our future cooperation, which will allow us to improve both the quality and the coverage of our services, fulfill all licensing requirements, and ensure that our costs related to 5G network development are predictable and optimal for us in the mid and long term. Moving to the media segment, we have acquired exclusive broadcasting rights to the UEFA Europa League and the UEFA Conference League for the upcoming 2027-2031 seasons. As a result, we have secured key sport content for both our sport channels and our pay TV packages. Additionally, we have expanded our cooperation with new broadcasters. We have entered into a partnership with Canal Zero in both the distribution and advertising areas. We have also communicated an important matter to our customers. We are planning to shut down our 3G network by the end of this year. This move opens the path to further optimizing our network resources. Regarding our green energy segment, we mentioned this during our previous conference, but let me repeat it. In March, we received a concession for energy generation for our Drzeżewo wind farm with a capacity of 139 megawatts. This means that we have finished our capital intensive investments in the renewable energy segment and have now moved into a demand energy production and sales phase. To wrap up this section on the key highlights, let me repeat what we have already emphasized during our previous meeting. We have restructured the group's management frameworks to address new challenges, both at the strategic and operational level. You can already see the first positive effects of these changes in Q1, both in operating performance and financial results. That concludes the key events of the first quarter. I will now hand over to Maciej, who will present the operating results for the B2C and B2B services segment.

Over to you Maciej. Thanks Bartek. Let me start by saying that this was a very strong quarter, not only on the group level, but especially in the B2C and B2B services segment. We are particularly pleased to see the first tangible effects of the organizational changes implemented recently. We can already see the impact of our efforts in cost discipline and operational efficiency coming through in our results, as Kasia will explain in more detail. Before that, let's look at the operating results on the B2C and B2B services segment on the next slide. Our key focus and the core of our strategy is Multiplay. We continue to see strong performance in our Multiplay base, which already exceeds 3 million customers. In the first quarter, the base increased by 35,000 year-on-year and continued to grow at a steady pace, up by 1.2% year-on-year. This means that the saturation of our total customer base with Multiplay is also increasingly steadily reaching 54% in Q1 2026. This growth is clearly driven by effect of upselling within our Multiplay strategy. The number of services used by our Multiplay customers is increasing consistently. At the end of the first quarter of 2026, they were using 12.5 million RGU's, which is an impressive increase of 2.3 million year on year. At the same time, churn remains low, which confirms strong customer loyalty and the quality of our offering. At the end of the first quarter, churn was 7.9%, which is within the upper end of our target range of 7% to 8%. This increase was driven partly by the consolidation of contracts under our new Multiplay offer, and partly by the concentration of contract expires in the fourth quarter of last year. Let's move to the next slide, please. The excellent uptake of our Multiplay offer is directly translating into solid growth in our contract RGU base, which reached 13.6 million in the first quarter, up 2.3% year-on-year. The drivers remain the same as in recent quarters. This increase in the RGU base is the result of strong demand for mobile and fixed internet services, which grew by 285,000 year-on-year. In addition, mobile telephone sales remain very strong, growing by 183,000 over the past year. We also continue to see the trend in the pay TV base, which remains under some structural pressure, but this is partly mitigated by the continued shift towards IPTV and OTT solutions. Next slide, please. We continue to see strong momentum in ARPU, which increased by 5.8% year on year and reached 82.2 zlotys in the first quarter. I would also like to highlight the acceleration in ARPU growth from a little over 4% last year to 5.4% in Q4 2025 and to 5.8% at the end of Q1 2026. This growth is clearly driven by the effective execution of our Multiplay strategy supported by strong sales of mobile and internet services as shown on the previous slide. At the same time, we continue to see higher services penetration. The number of services per customer increased to 2.43, up from 2.32 last year. This has also been supported by the new Multiplay offer. Since its launch in June last year, 28% of all our customer base have already migrated to the new offer. This confirms that our offering is well designed and is effectively driving customer value. Let's now turn to the prepaid segment services on the next slide. Our prepaid base remains high and around 2.3 million services despite a very competitive market environment. The downward pressure comes mainly from a lower number of mobile services provided. This is the result of strong competition on the one hand and natural migration towards more attractive contract offers on the other. A clear positive highlight in this customer segment is the consistently high and growing RPO. In the first quarter of 2026, prepaid RPO increased by 4.7% year-on-year and reached 17.8 zlotys. This reflects our strong focus on value rather than volume in this segment. Prepaid RPU is supported by the strong take-up of our referred Polsat box offer and the new package structure, which clearly strengthens the value proposition for customers. Last year, we restructured the prepaid pay TV offer into three simple packages, Polsat Lovers, Premium and Premium Sport, with each package expanding on the content of the lower one for an incremental fee. At the beginning of this year, we also expanded the lineup to almost 200 channels by adding TVN and TVP channels. Next slide, please. In the B2B customer segment, trends remain stable over the mid-term. We have a high and relatively stable customer base of around 67,000. Let me remind you that this is a highly competitive and challenging market. Despite this competitive pressure, we continue to build ARPU per B2B customers, which increased by 3.8% year-on-year to 1,565 zlotys per month. And this reflects our focus on delivering tailored, high-value solutions for business customers, allowing us to build value effectively within the existing base. To sum up the segment, we continue to deliver a very solid performance across the B2C and B2B services segment. Our focus on increasing value has resulted in growing ARPU across all customer segments with a clear acceleration of ARPU growth in B2C to 5.8% year-on-year. We are systematically expanding our Multiplay customer base. This is a direct result of the consistent execution of our Multiplay strategy and successful upselling, which strongly supports customer value and service penetration. The new Multiplay offer continues to be very popular and we continue to see very good uptake. This clearly confirms that it remains the key driver of our operating performance and will continue to support our results in the coming quarters. That is all from me today. Thank you for your attention. I will now pass the floor to Janusz, who will present the results of the media segment. Janusz, please go ahead.