Yahoo Finance

• ARPU per Contract B2C Customer: Increased by 4.7% year-over-year to PLN 75.2.

• ARPU per B2B Customer: Increased by 1.5% year-over-year to PLN 1,490.

• Retail Revenue Growth: Increased by 2.9% in the second quarter.

• Advertising Revenue: Increased by 4.8% to over PLN 360 million in Q2.

• Green Energy Segment EBITDA: PLN 71 million in Q2.

• Net Profit: PLN 176 million in the second quarter.

• Free Cash Flow: PLN 436 million over the last 12 months, up by 30% compared to the end of 2023.

• Net Debt-to-EBITDA Ratio: 3.3 times at the end of Q2, excluding project financing.

• Revenue Growth: Increased by 5% in the second quarter.

• EBITDA: Adjusted EBITDA grew by 5.7% to PLN 844 million; including asset sales, it increased by 8.3% to PLN 865 million.

• Green Energy Generation: 222 gigawatt hours in Q2, up by 53% year-over-year.

• Fixed Broadband Internet Coverage: Expanded by 50% to cover over 10 million households.

• Warning! GuruFocus has detected 6 Warning Signs with WAR:CPS.

Release Date: August 21, 2024

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

Positive Points

• Cyfrowy Polsat SA (WAR:CPS) reported a 2.9% growth in retail revenue, driven by increases in ARPU across B2C, B2B, and Prepaid segments.

• The company expanded its Fixed Broadband Internet Access services coverage by almost 50%, reaching over 10 million households.

• Cyfrowy Polsat SA secured exclusive broadcasting rights for UEFA Europa League and UEFA Conference League, enhancing its media content offerings.

• The Green Energy segment saw significant progress with the commissioning of the Przyrow wind farm, increasing wind generation capacity to 150 megawatts.

• The company achieved a stable viewership share of 22% in the commercial group, maintaining a strong position in the TV advertising market with a 28% share.

Negative Points

• The company faces inflationary pressures on technical costs, content production, and wages, which could impact future profitability.

• Net debt-to-EBITDA ratio, excluding project financing, was 3.3 times, with expectations of an increase due to higher CapEx in the Green Energy segment.

• The Media segment experienced higher content and marketing costs, which pressured EBITDA despite stable viewership.

• Interest payments remain high, continuing to exert pressure on free cash flow generation.

• The B2C and B2B Services segment faced revenue pressure from MTR cuts and lower equipment sales, despite maintaining high margins.

Q & A Highlights

Q: What is the outlook for expenses in the second half of 2024, and in which areas can we expect inflationary pressure? A: Katarzyna Ostap-Tomann, CFO, mentioned that they are cautious about costs and aim to keep them under control. However, inflationary pressures are expected in technical costs, content production costs, and wages. The regulatory minimum wage also adds pressure, affecting costs like security and cleaning, where minimum wage workers are employed.