Cyfrowy Polsat (CPS) Q1 2025 earnings summary

Executive summary

• Revenue increased by 3.7% year-over-year to PLN 3.53 billion in Q1 2025, with adjusted EBITDA up 4.8% to PLN 809 million and margin at 22.9%.

• Net profit declined 53% year-over-year to PLN 87 million, mainly due to higher interest costs and a non-cash loss on the sale of Asseco Poland shares.

• Multiplay strategy drove ARPU per B2C customer up 4.2% to PLN 77.7, with churn at a record low of 6.8%.

• Green energy segment EBITDA rose 15.8% to PLN 57 million, with renewable electricity production up 40% year-over-year to 278 GWh.

• Media segment audience share increased to 22.1%, and Polsat-Interia Group led the online market.

Financial highlights

• Adjusted EBITDA margin was 22.9% in Q1 2025, with adjusted EBITDA at PLN 809 million.

• Free cash flow for the last 12 months, adjusted for green energy CapEx, was nearly PLN 1.3 billion.

• Net debt/EBITDA LTM (excluding project financing) stood at 3.62x; including project financing, 3.85x.

• Weighted average interest cost of loans and bonds was 8.2%.

• CapEx in Q1 2025 totaled PLN 324 million, with PLN 157 million allocated to green energy projects.

Outlook and guidance

• Targeting approximately PLN 500 million EBITDA in the green energy segment by 2026.

• Expectation of PLN 25–30 million in interest savings in H2 2025 due to rate cuts and early loan prepayment.

• S&P and Fitch affirmed BB/stable credit ratings, with S&P forecasting 3–4% annual revenue growth and stable leverage around 4x EBITDA.

• 5G network expansion and multiplay strategies expected to support future ARPU and customer loyalty.

• CapEx to revenue ratio for B2C/B2B and media segments expected to normalize to 6–7% for the full year.