Cyfrowy Polsat TMT upholds 2023+ strategy goals; expects lower CAPEX in next quarters

"We maintain the goal of the PLN 500 million implementable EBITDA from 2026 onwards as part of the 2023+ strategy we are implementing [green energy segment - PAP ed.] (...) In terms of green energy production capacity, I am already hugely pleased that we have produced over 1 TWh of clean green energy in 2024 and our production capacity in 2026 will reach a potential of 1.7 TWh," said Cyfrowy Polsat's deputy CEO for strategy Maciej Stec.

"In the code line we assumed expenditure of PLN 5 billion in this segment, PLN 3.2 billion had been spent at the end of 2024 (...) We will finish this investment at PLN 3.9 billion, which is PLN 1.1 billion less," he added.

The management board member for finance and ESG Katarzyna Ostap-Tomann pointed out that Cyfrowy Polsat will lower its expenditure in the future quarters.

"I would like to remind (...) that we are slowly concluding our investment expenditures as far as our 2023+ strategy is concerned, so we can expect slightly lower expenditures in the following quarters, they will be already quite low when we finish the wind power plant in Drzezewo," Ostap-Tomann said.

Moreover, she added that construction is likely to be completed earlier than previously planned.

Ostap-Tomann also pointed out that free cash flow after adjusting for capital expenditure on the RES segment reached more than PLN 1.3 billion (EUR 336.44 mln) in 2024.

"This shows how good our cash generation capabilities are and indeed this is a very good ratio for our group. The net debt to EBITDA is at 3.59, but please note that during the year, despite the fact that we incurred our CAPEX (...) we have a very slight increase in the ratio," she said.

She also pointed out that the second part of housing sales from the real estate segment will be recognised in the results for the first quarter of 2025. Their impact, however, is expected not to be as significant as in the fourth quarter of 2024.

In turn, the group's CEO Miroslaw Blaszczyk said that in 2025, Cyfrowy Polsat plans to continue its long-term strategy of building value in each of its segments.

"In the area of B2C and B2B services, we aim to further increase ARPU [average revenue per user - PAP ed.] while maintaining a low churn rate through the Multiplay strategy," the CEO said.

"We will also consistently expand our 5G network using the 3.6 GHz and 700 MHz bands," he added.

In the media segment, Cyfrowy Polsat's priority in 2025 will remain to maintain high channel ratings and a strong position in the TV advertising market.

"In the green energy segment, we will focus on completing the construction and commissioning of the Drzezewo wind farm. (...) With strategic investments in this segment coming to an end, maximising revenues from green energy sales will be our key objective," CEO Blaszczyk stressed.

"In the area of finance, we continue to manage investments and cost control effectively - this will ensure that financial discipline is maintained, supporting sustainable growth. At the same time, once the main strategic investments in renewable energy are completed, we want to focus on reducing the group's debt," he added.

mcb/ ao/