Revenue: Increased by 4.7% year-on-year to PLN 14.3 billion. Adjusted EBITDA: Grew by 9.6% to PLN 3.3 billion. Net Profit: Increased by nearly 29% in Q4 to PLN 168 million; full-year net profit was almost PLN 800 million. Free Cash Flow: Adjusted for green energy expenditures, amounted to over PLN 1.3 billion. Net Debt to EBITDA Ratio: Increased slightly to 3.59 despite high investments. Telecommunication Segment ARPU: B2C increased by 4.8% to PLN 76.1; B2B increased by 3.4% to over PLN 1,500. Churn Rate: Decreased to 7% in 2024. Green Energy Segment EBITDA: Generated PLN 282 million in 2024. Green Energy Production: Increased by 53% year-over-year, exceeding 1,000 gigawatt hours. Media Segment Advertising Revenue: Grew by 4.2%, reaching almost PLN 1.4 billion. CapEx for Green Energy: Nearly PLN 1 billion in 2024.

Warning! GuruFocus has detected 7 Warning Signs with FRA:CP9.

Release Date: April 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Cyfrowy Polsat SA (FRA:CP9) reported a 4.7% year-on-year increase in group revenues, reaching PLN14.3 billion. The company's adjusted EBITDA grew by 9.6% to PLN3.3 billion, indicating strong financial performance. The telecommunication segment saw an increase in average revenue per B2C contract customer by 4.8% and B2B customers by 3.4%. The media segment achieved a 22% market share in TV viewership, with strong performance in advertising revenue. The green energy segment reported a 64% year-over-year increase in green energy production, reaching 295 gigawatt hours in Q4 2024.

Negative Points

The media segment faced pressure on EBITDA due to higher production costs and write-offs of programming assets. The pay TV base is under pressure, although mitigated by growth in IPTV and OTT technologies. Interest rates remain high at 5.75%, posing macroeconomic challenges. The company's net debt to EBITDA ratio increased slightly to 3.59, despite high investments in green energy. The prepaid segment experienced a slight decrease in the base, although ARPU remained stable.

Q & A Highlights

Q: Which quarter can we expect the majority of the remaining expenditures on the Derjava wind farm? A: The cash outflow will be mainly in the 2nd and 3rd quarters of 2025. - Katarzyna Ostap-Tomann, Chief Financial Officer, Member of the Management Board

Q: Shall we expect further write-offs in the media segment in the future? A: Not to this extent because there will always be some small amount written off at the end of each year, but not in the amount of this year. - Katarzyna Ostap-Tomann, Chief Financial Officer, Member of the Management Board

Story Continues

Q: If the Polish central bank cuts the interest rates as expected by the market, can we expect CPS to refinance the existing debt? A: At the moment, we do not consider refinancing our existing debt. - Katarzyna Ostap-Tomann, Chief Financial Officer, Member of the Management Board

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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