Cyfrowy Polsat (CPS) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 5.5% to PLN 13,626m, while adjusted EBITDA was PLN 3,012m and net profit PLN 312m. Results included PAK-PCE consolidation from July 3, 2023.

• Connectivity and media priorities included expanding 5G, growing customer ARPU, and maintaining a strong TV advertising position; green energy investment and hydrogen development advanced under Strategy 2023+.

Financial highlights

• Q4'23 revenue increased 7.3% YoY to PLN 3,682m; adjusted EBITDA declined 17.3% to about PLN 677m and net profit fell 25.3% to PLN 130m.

• FY2023 revenue rose 5.5% to PLN 13,626m; EBITDA was PLN 3,012m, down 10.2%, and net profit declined 65.4% to PLN 312m.

• FY revenue growth reflected PLN 772m from green energy, including PLN 267m from own energy sales and PLN 373m from energy resale; B2C/B2B services contributed PLN 3,471m.

• FY EBITDA decline included a PLN 341m reduction from B2C/B2B services and PLN 34m from media, partly offset by PLN 220m from green energy.

Outlook and guidance

• Green energy installed capacity is targeted at about 330 MW in 2024 and about 740 MW in 2026; the 2026 strategic goal is electricity production capacity of up to 2 TWh annually.

• 2024 priorities include commissioning Człuchów and Przyrów wind farms on schedule and within budget, beginning green hydrogen production at the Konin electrolysis plant, and expanding hydrogen refuelling.

• Connectivity objectives include growing ARPU, maintaining low churn, and developing the 5G network using 2.6 GHz TDD and a new 3.6 GHz band; financial priorities include cost control and financial discipline.

• Drzeżewo wind farm project financing is an objective for 2024; 2024 content priorities include maintaining TV advertising position and building online media presence.