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• Total Revenue: Increased by 3.6% to over PLN3.5 million.

• Adjusted EBITDA: Increased by 12.7% year over year.

• Net Profit: Posted PLN250 million in the third quarter.

• Free Cash Flow: Last 12 months' free cash flow amounted to PLN1.1 billion, excluding CapEx on renewable and hydrogen projects.

• Net Debt-to-EBITDA Ratio: 3.4 at the end of the third quarter.

• ARPU per B2C Customer: Increased by 5% year over year to PLN77.2.

• ARPU per B2B Customer: Increased by 4% year over year, exceeding PLN1,500.

• Churn Rate: Decreased to 7.2%.

• Green Energy Segment EBITDA: Generated PLN82 million in the third quarter.

• TV Advertising Revenue: Increased by 5.2% year on year to PLN965 million.

• Green Energy Production: Produced more than 300 gigawatt hours of electricity in the third quarter, up by 57% year on year.

• Warning! GuruFocus has detected 6 Warning Signs with FRA:CP9.

Release Date: November 21, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cyfrowy Polsat SA (FRA:CP9) reported a 12.7% increase in adjusted EBITDA, driven by strong operating performance and cost control.

• The company expanded its 5G Plus network to over 3,800 transmitters, covering over 25 million people in Poland.

• Cyfrowy Polsat SA secured exclusive broadcasting rights to the Formula 1 Grand Prix races from 2025 to 2028, enhancing its sports content offering.

• The company achieved significant milestones in its green energy strategy, including the start of test production of green hydrogen and the installation of a 2.5-megawatt electrolyzer.

• The green energy segment generated PLN82 million of EBITDA in Q3 2024, with expectations to contribute PLN500 million to PLN600 million annually by 2026.

Negative Points

• The media segment faced challenges due to competitors holding broadcasting rights to major sporting events, impacting TV advertising growth.

• Despite a 3% increase in advertising revenue, Cyfrowy Polsat SA's market share in TV advertising and sponsorship was slightly below the market growth rate.

• The pay TV base is under pressure from a declining number of satellite TV services and the phasing out of the low-margin IPLA product.

• The company's net debt-to-EBITDA ratio increased slightly to 3.4, indicating a need for careful financial management.

• The B2C and B2B services segment's EBITDA was negatively impacted by a write-off of photovoltaic panel stock.

Q & A Highlights

Q: Is it expected to reach a 4.0 net debt to EBITDA this year or in 2025? A: Katarzyna Ostap-Tomann, CFO, stated that for 2024, they do not expect to reach 4.0. For 2025, she could not commit to a definitive answer as it depends on the pace of spending and incoming funds.