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Cyfrowy Polsat SA (FRA:CP9) Full Year 2024 Earnings Call Highlights: Strong Revenue Growth and ...

In This Article:

  • Revenue: Increased by 4.7% year-on-year to PLN 14.3 billion.

  • Adjusted EBITDA: Grew by 9.6% to PLN 3.3 billion.

  • Net Profit: Increased by nearly 29% in Q4 to PLN 168 million; full-year net profit was almost PLN 800 million.

  • Free Cash Flow: Adjusted for green energy expenditures, amounted to over PLN 1.3 billion.

  • Net Debt to EBITDA Ratio: Increased slightly to 3.59 despite high investments.

  • Telecommunication Segment ARPU: B2C increased by 4.8% to PLN 76.1; B2B increased by 3.4% to over PLN 1,500.

  • Churn Rate: Decreased to 7% in 2024.

  • Green Energy Segment EBITDA: Generated PLN 282 million in 2024.

  • Green Energy Production: Increased by 53% year-over-year, exceeding 1,000 gigawatt hours.

  • Media Segment Advertising Revenue: Grew by 4.2%, reaching almost PLN 1.4 billion.

  • CapEx for Green Energy: Nearly PLN 1 billion in 2024.

Release Date: April 10, 2025

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 4.7% year-on-year increase in group revenues, reaching PLN14.3 billion.

  • The company's adjusted EBITDA grew by 9.6% to PLN3.3 billion, indicating strong financial performance.

  • The telecommunication segment saw an increase in average revenue per B2C contract customer by 4.8% and B2B customers by 3.4%.

  • The media segment achieved a 22% market share in TV viewership, with strong performance in advertising revenue.

  • The green energy segment reported a 64% year-over-year increase in green energy production, reaching 295 gigawatt hours in Q4 2024.

Negative Points

  • The media segment faced pressure on EBITDA due to higher production costs and write-offs of programming assets.

  • The pay TV base is under pressure, although mitigated by growth in IPTV and OTT technologies.

  • Interest rates remain high at 5.75%, posing macroeconomic challenges.

  • The company's net debt to EBITDA ratio increased slightly to 3.59, despite high investments in green energy.

  • The prepaid segment experienced a slight decrease in the base, although ARPU remained stable.

Q & A Highlights

Q: Which quarter can we expect the majority of the remaining expenditures on the Derjava wind farm? A: The cash outflow will be mainly in the 2nd and 3rd quarters of 2025. - Katarzyna Ostap-Tomann, Chief Financial Officer, Member of the Management Board

Q: Shall we expect further write-offs in the media segment in the future? A: Not to this extent because there will always be some small amount written off at the end of each year, but not in the amount of this year. - Katarzyna Ostap-Tomann, Chief Financial Officer, Member of the Management Board