Ladies and Gentlemen,
I would like to present to you the Annual Report of Cyfrowy Polsat S.A. Capital Group for the year 2015, the first report which consolidates operational and financial data of Polkomtel for the whole year.
Last year we continued the process of operational consolidation of Cyfrowy Polsat and Polkomtel, and we consistently pursued our business goals while strengthening our foothold on the integrated services market. As the biggest media and telecommunications group in the region, we served 5.9 million contract customers and provided 16.5 million TV, mobile telephony and LTE Internet access services. We have remained one of the largest private companies in Poland with capitalization of PLN 13.4 billion. In 2015 the total consolidated revenue of Cyfrowy Polsat Group amounted to PLN 9.8 billion, with EBITDA at PLN 3.7 billion and net profit of nearly PLN 1.2 billion.
We observed with satisfaction the growing results of sales of our unique offer of integrated services – the smartDOM program. We have achieved the announced goal of 1 million customers at the end of 2015 and the total number of services used by this group of customers was 3.04 million. Thus, I can make a clear claim that smartDOM works not only as our response to the dynamically changing market environment and consumer expectations, but it is also an important element which builds our competitive edge.
For us the year 2015 was also the continuation of very intensive development of mobile Internet access services relying on the LTE technology in which we are the leader on Polish market. Thanks to consistent network roll out we continue to provide the most extensive LTE coverage in Poland, covering a territory inhabited by 96.8% of the population, while LTE technology itself is an important element of our Group’s future development. Our work and efforts have been recognized not only by the customers, thanks to whom the base of Internet access services offered by us increased by almost 227 thousand last year, but it was also reflected in the results of an independent survey of telecommunication services conducted by the Office of Electronic Communications, which demonstrated that our Group offers the fastest mobile Internet access on the market.
The past year was also extremely successful for us in terms of broadcasting and TV production. In the commercial group of viewers, which is most desired by advertisers, Polsat TV outpaced the competitive TVN and TVP stations. With a market share of 13.2%, it once again demonstrated that it is the market leader and the most popular TV station of the so-called “Big Four” among viewers. By achieving an audience share of 24.6%, Polsat Group also demonstrated that it was a definitive leader in the commercial group in 2015. Thanks to a great scheduling and a professional team we have also been able to record equally good results in terms of advertising revenue, while our share in the TV advertising market increased to 26%. What is important, once again we recorded revenue growth dynamics significantly exceeding that of the TV advertising market.
A project which was very important for us was associated with the long, successfully-completed process of refinancing of the Group’s existing debt, finalized on January 29 this year. As a result of this exercise we expect to obtain interest-related savings in the amount of ca. PLN 400 million annually, as well as greater flexibility and security of our operations, a simpler debt structure and good prospects for the Group’s further growth.
The Group’s strategy, which has been consistently pursued for years, remains unchanged. Our superior goal, apart from the regular development of products and services in a manner aligned with market trends and users’ new needs, is to maintain leadership on the entertainment and telecommunications markets. To accomplish our plans we intend to employ the best, state-of-the-art and the most efficient technologies in order to provide top quality content and telecommunication services to our customers, irrespectively of the rich array of devices used by them. Integrated services remain a very important area for us. Thanks to our internal resources, capabilities, technologies and distribution channels we will provide these services in an increasing scope. Unchangeably, it is our belief that investments in high speed LTE Internet access, in which we are the leader on the Polish market, are very important from the point of view of future development of our Group. In our view, these efforts will contribute to a systematic growth of the number of services provided by us, while also leading to higher customer satisfaction. Achievement of the assumed goals, along with effective cost management, will have a positive impact on value creation for our shareholders.
President of the Management Board
Cyfrowy Polsat S.A.