Cyfrowy Polsat (CPS) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 5.7% year-over-year to PLN 6,859.3m, driven by green energy segment consolidation and higher retail revenue, with strong ARPU growth and fixed broadband coverage expanding to over 10 million households.

• Net profit for H1 2024 reached PLN 359.8m, up from PLN 79.1m in H1 2023, with EBITDA at PLN 1,811.3m (+16.1% YoY); adjusted EBITDA margin at 26.3%.

• Media segment maintained stable viewership and a high advertising market share, while the green energy segment saw accelerated project execution, increased capacity, and the commissioning of the Przyrów wind farm.

• Exclusive broadcasting rights acquired for major football competitions, and new TV programming was announced.

• No dividend was paid from 2023 profit; all earnings allocated to reserve capital to support strategic investments.

Financial highlights

• Group revenue rose 5.0% YoY to PLN 3,454m in Q2'24; retail revenue increased 2.5% YoY to PLN 3,555.0m; green energy segment contributed PLN 324m in Q2'24.

• Adjusted EBITDA grew by 5.7% to 844 million PLN in Q2; total EBITDA up 8.3% to 865 million PLN; adjusted EBITDA margin at 25% in Q2 and 26.3% in H1.

• Net profit reached 176 million PLN in Q2 and 359.8 million PLN in H1.

• Free cash flow for the last twelve months was 436 million PLN, up 30% from end-2023.

• Net debt/EBITDA LTM at 3.59x; net debt to EBITDA (excl. project financing) at 3.3x; gross debt at PLN 15,370m as of June 30, 2024.

Outlook and guidance

• Management expects continued growth in green energy, with installed RES capacity targeted at 2 TWh by 2026 and plans to double wind capacity by end of next year.

• Strategic focus remains on multiplay, bundled services, and expansion of renewable energy and hydrogen projects.

• Guidance maintained for green energy segment to generate 500–600 million PLN incremental EBITDA by 2026.

• Inflationary pressures anticipated mainly in technical, content production, and wage costs.

• Macroeconomic headwinds and regulatory changes may impact costs and investment pace.