Cyfrowy Polsat (CPS) Q2 2024 earnings summary

Executive summary

• Achieved strong performance in Q2 and H1 2024, with revenue and EBITDA growth driven by green energy expansion, higher ARPU, and retail revenue, alongside significant fixed broadband coverage expansion to over 10 million households.

• Media segment maintained stable audience share (~22%) and high advertising market share (28.1%), while green energy saw accelerated project execution, increased capacity, and contributed PLN 324m in Q2 revenue.

• Exclusive broadcasting rights acquired for major football competitions, and a refreshed TV schedule was presented.

• Technical commissioning of Przyrów wind farm (50.4 MW) increased wind capacity to 150 MW; third hydrogen refueling station launched.

• Strategic investments continued in renewable energy and hydrogen projects, with significant capex allocated.

Financial highlights

• Revenue increased by 5% YoY in Q2 2024 to PLN 3,454m and by 5.7% YoY in H1 2024 to PLN 6,859.3m, driven by green energy and retail growth.

• Adjusted EBITDA grew by 5.7% to PLN 844m in Q2 and reached PLN 1,811.3m (+16.1% YoY) in H1 2024; EBITDA margin at 24% in Q2 and 26.3% in H1.

• Net profit reached PLN 176m in Q2 and PLN 359.8m in H1 2024, benefiting from improved operations and one-time gains.

• Free cash flow for the last twelve months was PLN 436m, up 30% YoY.

• Net debt/EBITDA LTM (excl. project financing) at 3.3x in Q2 and 3.59x as of June 30, 2024.

Outlook and guidance

• Higher CapEx expected in H2 2024, especially in green energy and spectrum renewal.

• Plans to double installed wind capacity by end of next year and target 2 TWh of green energy production by 2026.

• No dividend recommended for 2023 profits to support ongoing investments in green energy.

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

• Management expects further EBITDA growth as new renewable projects come online.