Cyfrowy Polsat (CPS) Q4 2024 earnings summary

Executive summary

• Achieved strong operational and financial results in 2024, with revenue up 4.7% to PLN 14.3 billion and adjusted EBITDA up 9.6% to PLN 3.3 billion, driven by multiplay strategy and green energy investments.

• Maintained disciplined cost control and effective cash flow management, supporting robust financial performance.

• Expanded 5G Plus network to cover 70% of Poland's population and increased fixed internet reach to nearly 11 million households.

• Maintained leadership in TV and online media, with a 22% market share and top position among internet publishers.

• Advanced green energy and hydrogen initiatives, launching new wind farms and a complete green hydrogen value chain.

Financial highlights

• Revenue grew by 4.7% year-over-year to PLN 14.3 billion in 2024; adjusted EBITDA increased by 9.6% to PLN 3.3 billion.

• Net profit for 2024 was PLN 777 million, up 28.7% year-over-year.

• Free cash flow surged 290% to PLN 1.3 billion; net debt/EBITDA ratio at 3.59.

• Adjusted EBITDA margin stable at 23-24% for the year.

• Q1'25 sale of a 10% stake in Asseco Poland used for early loan repayment of PLN 681 million.

Outlook and guidance

• Targeting PLN 500 million EBITDA from green energy by 2026, with CapEx PLN 1.1 billion lower than initial guidance.

• Plans to double wind power capacity in 2025 with the Drzeżewo wind farm launch.

• Focus in 2025 on completing Drzeżewo wind farm, expanding 5G, maintaining low churn, and maximizing green energy revenues.

• Expect significant reduction in energy segment CapEx from 2026 as investments transition to monetization phase.

• Continued cost discipline and debt reduction after major renewable investments.