Cyfrowy Polsat (CPS) Q3 2024 earnings summary

Executive summary

• Achieved strong operational and financial results in Q3 2024, with revenue up 3.6% year-over-year, adjusted EBITDA up 12.7%, and net profit up 144.4% year-over-year, supported by ARPU growth and green energy expansion.

• Consolidated revenue for the nine months ended September 30, 2024, increased by 5.0% year-over-year to PLN 10,438.8 million, with net profit rising to PLN 609.6 million, up 236.2% year-over-year.

• Expanded 5G+ network to over 3,800 transmitters, reaching over 25 million people, and launched green hydrogen test production.

• Secured exclusive broadcasting rights for Formula 1 (2025–2028) and expanded sports content portfolio.

• Sold 69 hydrogen-powered NesoBuses, with new contracts in Konin and Upper Silesia.

Financial highlights

• Q3 2024 revenue: PLN 3,580 million (+3.6% YoY); adjusted EBITDA: PLN 873 million (+12.7% YoY); net profit: PLN 250 million (+144.4% YoY).

• For the nine months, revenue reached PLN 10,438.8 million (+5.0% YoY), EBITDA was PLN 2,697.7 million (+5.6% YoY), and net profit was PLN 609.6 million (+236.2% YoY).

• Free cash flow (excluding green energy/hydrogen CapEx) was PLN 1.1 billion over the last 12 months, up 230.8% YoY.

• Net debt-to-EBITDA ratio (excluding project financing) stood at 3.4 at quarter-end; weighted average interest cost was 8.4%.

• CapEx for the period was PLN 1,174.2 million (+16.9% YoY), with PLN 531.8 million invested in green energy projects.

Outlook and guidance

• 2024 EBITDA expected to exceed 2023 levels, with management expressing optimism for coming quarters.

• Green Energy Segment on track to deliver PLN 500–600 million incremental EBITDA annually by 2026, with full RES strategy implementation expected to double installed capacity.

• CapEx in Green Energy Segment projected to exceed PLN 1 billion through end of 2025, mainly for Drzeżewo wind farm, with turbine installation on track for January 2025.