Good afternoon, everyone, and welcome to Cyfrowy Polsat's earnings call for the fourth quarter and the full year of 2025. Please move on to the next slide. Let me introduce today's speakers. We are joined by Mr. Piotr Żak, President of the Management Board, Mr. Maciej Stec, Vice President for Strategy, Ms. Katarzyna Ostap-Tomann, Chief Financial Officer, Mr. Bartłomiej Drywa, Member of the Management Board, and last but not least, Mr. Janusz Pliszka, Chief Financial Officer at Telewizja Polsat. Please turn to the next slide. The agenda for today is as follows: Bartłomiej will begin with the key highlights of 2025. This will be followed by a detailed discussion of the operating performance of our individual business segments by Maciej, Janusz, and Bartłomiej. Katarzyna will then walk you through the group's financial performance for the past year.
After the presentation, we will move on to the Q&A session. As always, the Q&A panel is open throughout the presentation, so please feel free to submit your questions at any time. As a reminder, in line with our standard practice, we do not answer anonymous questions. Kindly include your full name and the name of your institution with each question. This concludes the introduction. I will now hand the floor over to Bartłomiej to present the key highlights. Bartłomiej , please go ahead.
I warmly welcome you all. I have a pleasure to present the most important events that took place in Polsat Plus Group in 2025. I will start, as usual, with the largest segment of our business, the telecommunication segment. The key event of the past year was the introduction in June 2025 of a new multi-play offer. The new offer was positively received by customers, thanks to its attractiveness and simplicity. The result is an increase in our Average Revenue Per User, an increase in the nominal numbers of services sold, and an increase in the saturation rate of customers using additional services. Maciej will explain this in more detail in his part of the presentation. Our multi-play strategy is supported by the high quality and reach of our telecommunications network.
We deliver 5G technology to 26 million of Poles, and in 2025, we expanded the coverage of our fixed broadband network to about 70% of households, thanks to the wholesale agreements. An important note here. In 2025, we renewed the frequency in the 900 MHz band, and we purchased the frequency in the 700 MHz band. This frequency will help us to further develop our 5G network. It is worth noting that over the next couple of years, we do not have renewals of our frequency portfolio, which will allow us to improve our cash flows. This will be more evaluated by Katarzyna in her part of the presentation. Moving to the next segment of our business, the Media segment.
Polsat Group and its channels maintained a very strong market position, both in terms of viewership and in terms of advertising market share. Specifically, 22.5% share of the viewership market for the entire group of channels and 28% share of the television advertising market. Janusz will talk more about this in his part of the presentation. Our online leg, Polsat-Interia Group, is the leader among internet publishers in Poland, yet another quarter in a row. All of this was made possible by an excellent content mix. This includes both in-house productions loved by millions of Poles, as well as a carefully constructed portfolio of sport rights that supports both the viewership of our channels and the attractiveness of our pay TV packages. Moving to the youngest segment of our activity, the Green Energy segment.
The key event in this segment was undoubtedly the completion of capital-intensive investments planned under the 2023 plus strategy. Last year, we completed the construction of our largest wind farm, the Drzeżewo Farm. As a result, we reached production capacity of nearly 0.5 GW installed in renewable energy. We started the technical commission of this farm in mid-2025, and the first quarter of 2026, we obtained a generation license. Among other activities in this segment, it is worth noting that we expanded green hydrogen production capacity by an additional 0.5 MW alkaline electrolyzer up to 3 MW in total. In this facility, we can produce up to 1.2 ton of green hydrogen per day. This is needed to execute our project related to the sale of hydrogen buses and hydrogen refueling stations under one tenders.
In 2025, we delivered 28 NesoBus buses, and for 2026, we have contracted another 49. Moving to the next slides, we have finally a few corporate events. One of the key events was the sale of a 10% stake in Asseco Poland. We used the proceeds from this disposal to make an early partial debt repayment. In addition, we secured nearly PLN 1 billion of project financing for our largest renewable energy project, the Drzeżewo wind farm. This is a clear evidence that banks and financial institutions believe in this segment and that the business model we present is credible. Concluding this part, the last piece of information we communicated in the current report. In December 2025, the court in Liechtenstein issued a final ruling ending the proceeding concerning the company shareholder, TiVi Foundation.
That's all from my side regarding the key events of 2025. Now it is time to discuss how these events translated into our operating results. I hand over to Maciej, who will tell you about the operating results of the B2B and B2C segment in telecommunications. Maciej, the floor is yours.
Thanks, Bartek. Let's start with our B2C and B2B Services segment. We recorded very good operating results in this segment in the fourth quarter of last year. Let's look at them in more detail on the next slide. As you may remember, we launched a new multi-play offer in June last year, a very simple and flexible offer, it's delivering very good results. We are consistently building the scale of our multi-play customer base, we are highly effective in upselling services to our existing customer base within the refreshed offering. As a result, our multi-play customer base increased by 38,000 year-on-year. What's more important, by the end of December, 20% of our customers had already migrated to the new offer. By the end of March, this share increased further to 28%.
This clearly confirms the strong attractiveness and popularity of the offer. At the end of 2025, over 3 million customers used our multi-play offering. This means that already 54% of all our customers have at least two services with us. On the other hand, it also highlights the significant potential to further increase multi-play penetration. Effective upselling is also visible in the number of services used by multi-play customers. At the end of 2025, they used 11.9 million RGUs, up by almost 1.8 million year-on-year. At the same time, we continue to maintain a low churn level at 7.7% in 2025. Although this is slightly higher than last year, it remains very low compared to the industry average, confirming high customer satisfaction and loyalty. Next slide, please.
Our strong multi-play performance continues to be a key driver of growth in contract services. By the end of 2025, we provided over 13.5 million contract services to our B2C customers, representing solid year-on-year growth of 2.4%. This growth was mainly driven by strong sales of Mobile and Fixed Internet services, which increased by almost 270,000 year-on-year. We also saw a solid contribution from mobile telephony with services up by 180,000 year-on-year. As expected, the pay TV market remains under pressure. The decline in traditional pay TV services is partly mitigated by the continued shift towards IPTV and OTT solutions. Overall, we see a healthy mix within our contract base, fully aligned with market trends and supported by our multi-play strategy. Next slide, please.
As I said at the beginning, we are seeing very strong adoption of the new multi-play offer, clearly reflected in ARPU growth. In the fourth quarter of 2025, ARPU per B2C customer reached PLN 81.6, up by 5.4% year-on-year. This is strong momentum, and we expect to continue in the coming quarters. The growth drivers are clear. We are executing our multi-play strategy consistently. It supports strong mobile and Internet sales and enables effective upselling across the customer base, translating into higher customer value. We also see a strong shift in customer choice. Under the new multi-play offer, customers increasingly choose bundles with three o r more services. Sales of these bundles have nearly tripled compared to the period before the launch in June last year. This is reflected in higher service saturation for customers.
At the end of 2025, each B2C customer had 2.4 services on average, up from 2.3 last year. ARPU growth is a direct result of better bundling, better upselling, and a stronger customer mix. Next slide, please. Moving on to the prepaid segment, we continue to maintain a high and stable prepaid base of around 2.3 million services, despite a highly competitive market. Our priority in prepaid is clear. We focus on value, not volume. In the fourth quarter of 2025, prepaid ARPU increased by 5.2% year-on-year, reaching PLN 18.2. Even with a slightly lower base, we see good customer quality. Prepaid customers tend to stay with us longer and top up repeatedly, which supports value over time. We also strengthened our Polsat Box Go proposition.
We simplified the offer to three clear packages and expanded content by adding TVN, Warner Bros. Discovery, and TVP channels, increasing the total to nearly 200 channels. This significantly enhances the value propositions and positions Polsat Box Go as one of the strongest TV and streaming offers on the market. Next slide, please. Moving on to the B2B segment, we maintain a high and stable base over 67,000 B2B customers, which is an important achievement in a very competitive market. As across the whole group, our focus in B2B is on building customer value. In the fourth quarter of 2025, ARPU per B2B customer increased by 2.4% year-on-year, reaching over PLN 1.5 thousand per month. This growth is supported by tailored solutions and long-term relationships with our business customers.
To sum up, I'm very satisfied with our operating performance in the B2C and B2B Services segment last year. Our new multi-play offer is clearly working. It is driving multi-play customers growth, higher service penetration and strong ARPU momentum in B2C up by 5.4%. Churn remains under control at a low level of 7.7%, while strong sales support RGU growth. Prepaid and B2B remain resilient. We maintain solid customer bases in very competitive markets while consistently building value clearly visible in ARPU growth. Overall, the fourth quarter delivered a solid performance. Importantly, we also see a continuation of this positive trends in the first months of the current year. This confirms that our multi-play strategy is working and that our execution is delivering sustainable growth and higher customer value. Now I will hand over to Janusz, who will discuss the Media segment.
Thank you. Janusz, the floor is yours.
Thank you, Maciek. I will now have the pleasure of presenting the results of the Media segment for the first time. I have been responsible for the finance function at Telewizja Polsat for the last 15 years, and I have been a member of the management board of Telewizja Polsat since 2019. Next slide, please. Let us begin with the audience share of the Polsat Channels. In the fourth quarter of 2025, our channels achieved a 22.7% share of the commercial audience, maintaining the same level as in the fourth quarter of 2024. We are exceptionally pleased with this result as it contrasts with the performance of our major competitors, whose audience shares declined in Q4 2025 compared with Q4 2024.
The Polish TV advertising market grew by 2.5% during the quarter, while advertising revenues of our channels increased at a slightly lower rate of 1%. However, trends in the advertising market shares are better assessed over longer periods as single quarter results tend to be affected by seasonality. Let us move to the next slide. As indicated on the previous slide, annual figures provides a better reflection of our position in the TV advertising market. In 2025, the Polish TV ad market grew by 1.2%, while advertising revenues of our channels increased by 1.5%, in line with the market. This market growth was consistent with expectations which anticipated low single-digit growth. As the annual results show, our channels maintain a high and stable 28% share of the Polish TV advertising market.
Turning back to viewership, our audience share increased from 22% to 22.5% in 2025. We are particularly proud of this achievement as we reach the leading position for the full year 2025. Moreover, our main channel, Polsat, was the only major TV channel to increase its audience share. Next slide, please. Let us now move to the results of our online business. The Polsat-Interia Group maintains a very strong position in the Polish online portal market. Both in the fourth quarter and throughout the entire year 2025, the group ranked number one among online publishers in Poland and was also the leader in the mobile category. We have built a very strong, stable and importantly repeatable business scale in the online segment.
On average, we reach more than 20 million users per month, generating approximately 1.8 billion page views. This clearly demonstrates that the Polsat-Interia Group combines the largest reach with high intensity of content consumption, which translates into strong attractiveness for advertisers and the stability of our results. Moreover, the online business perfectly complements television, strengthening the group's overall media and advertising offering. Next slide, please. Our very strong viewership results, both in the fourth quarter and throughout the entire year, are the direct result of consistently strong programming schedules and an attractive sports offering. In the entertainment segment, we have consistently focused on proven high quality formats such as Dancing with the Stars, Milionerzy, [Non-English content] , Cash Battle, and Pierwsza miłość. Our productions have built a loyal audience for our channels and strengthened our position in the television advertising market.
At the same time, sport remains a key pillar of our programming offering. We provide viewers with broadcasts across a wide range of disciplines, including football, volleyball, tennis, and motor sports. Throughout our coverage, Polish audiences were able to witness the success of domestic teams and athletes. A gold medal in the Volleyball Nations League, a bronze medal at the World Volleyball Championships, strong performances by Polish football clubs in the UEFA Conference League and Iga Świątek's first triumph on the grass courts of Wimbledon. This combination of entertainment and sport enabled us to achieve a 22.5% audience share in 2025, despite a highly fragmented market and intense competition for viewers' attention.
Equally important, the quality of our programming and the broad reach of our audience translated into stable advertising results both in the fourth quarter and across the full year. Thank you for your attention. I would like now to hand over to Bartłomiej .
Thank you, Janusz. Ladies and gentlemen, allow me to present the operating results of the Green Energy segment. As I mentioned at the beginning of our presentation, with the launch of the Drzeżewo wind farm in 2025, we ended the capital-intensive periods in this segment. We have built a portfolio with a total capacity of about 0.5 GW in renewable energy, consisting of about 100 MW of biomass, about 100 MW of photovoltaics, and nearly 300 MW of wind energy capacity. Allow me to remind you of the map of our investments. As you will surely notice, there is one more project under construction, a small wind farm called Dobra, with two wind turbines. We will complete this investment in the second half of this year. On the next slide, we will see how these investments translated into electricity production.
Here you can see growth in energy production both quarterly and annually. The main reason for this was higher wind production capacity. Energy production from solar sources was at similar level, while biomass production was lower year on year due to the plant overhaul of the biomass turbine, which took place in the third quarter and part of the fourth quarter of 2025. It is important to mention that such maintenance work is performed every few years. It is worth noting that increases in wind energy production were nominally driven by higher installed capacities. However, 2025 was relatively weaker than 2024 and the recent years in terms of windless and sunshine. On the next slide, we present how this energy production translated into EBITDA for this segment. EBITDA growth in the fourth quarter is entirely driven by higher wind capacity.
In the full year, this did not compensate for two biomass-related effects. First, the biomass turbine overhaul, which reduced energy production. Second, the effect of the high base of the comparable period. Please remember that in 2024, we benefited from unusually low biomass prices and relatively better energy selling prices from this source. Finally, it is worth recalling that energy prices in 2025 remained relatively low and continue to be so in the current period of 2026. In 2026, we will benefit from the full annual effect of production capacity growth. Despite relatively low energy prices, we anticipate a significant increase in EBITDA in this segment in 2026. That is all from me.
Now I will hand over to Katarzyna , who will tell you how these operating results translated into our financial results. Katarzyna , the floor is yours.
Thank you, Bartłomiej. Let me now discuss the financial results in the fourth quarter and the full year 2025. Starting with our key financial metrics, the fourth quarter results are presented on the top charts and the full year results are on the bottom charts. In the fourth quarter of 2025, total revenue was lower by 1.5% year-over-year. This reflects a mixed performance across business segments. Full year revenues remained stable at PLN 14.3 billion. EBITDA, adjusted for one-offs, decreased by 8% in Q4 and by 5.5% in the full year 2025. In both periods, the main reasons were higher operating costs and a high base in 2024 in the real estate segment. I will go into more details on revenue and EBITDA drivers on later slides.
Looking at the net results in Q4, we recognized an impairment on goodwill in the amount of PLN 2.7 billion. We informed about this in a current report last week. This impairment depressed our net result. In Q4, we recorded net loss of PLN 2.9 billion, and in 2025, the net loss was PLN 2.6 billion as the result of this impairment. It is very important to stress that this goodwill impairment was non-cash and has no impact on our operations, EBITDA, or our cash flows. It reflects more conservative assumptions applied in our impairment test, given the high uncertainty in a challenging macroeconomic and market environment. Let's move to the next slide, please. Our Free Cash Flow for the last 12 months reached PLN 736 million.
This is an outcome lower than in 2024, but fully in line with my previous guidance. Our key covenant, Net Debt to EBITDA, excluding project financing, remains stable as compared to last year at the level of 3.59. I'm especially happy with this result, given that in 2025 we faced outflows for telco frequencies and still relatively high CapEx on our renewable energy projects. Can I have the next slide, please? Let's look at revenue and EBITDA drivers in a 4th quarter segment by segment. This time I will start with our smallest business segment, real estate, because it has the biggest impact. In Q4, revenue was lower by PLN 150 million and EBITDA decreased by PLN 74 million. This is the effect of a high base in the 4th quarter of 2024.
Last year, we had a very strong quarter. I mean, 2024, we had a very strong quarter due to accumulated handovers of apartments in Port Praski when we completed a residential building. In B2C and B2B, solid growth of retail revenue, supported by very good sales on RPU growth, was offset by weaker equipment sales. Lower EBITDA was also driven by pressure on OpEx. On the cost side, we recorded higher technical costs, mainly related to network maintenance and rollout and higher payroll costs. In the fourth quarter, the Media segment performed very well and contributed to revenue and EBITDA. We benefited good advertising and sales of content to cable operators. At the same time, we kept content costs stable. In the Green Energy segment, revenue and EBITDA growth was driven by higher energy production from wind.
As Bartłomiej said, in the second half of 2025, we launched the Drzeżewo Wind Farm, which doubled our capacity in wind power. Additionally, we delivered more hydrogen buses, which clearly supports revenues. 14 NesoBus were delivered in Q4 2025, compared to three in the fourth quarter of 2024. In Q4 of 2025, we Adjusted EBITDA for three non-cash one-offs. The most important is the impairment on the inventory of photovoltaic panels in the amount of almost PLN 84 million. As a reminder, we made similar impairments in 2024 and Q2 2025. This is the last one, as we have written off the entire value of this stock. For your reference, we have provided a slide with detailed decomposition of one-offs impacting EBITDA in the appendix of this presentation.
Next slide, please. As far as 2025 results are concerned, in the B2C and B2B segment, total revenue was stable. This was mainly the net effect of higher retail revenue following a very good sales momentum and lower equipment sales. EBITDA of this segment remained under cost pressure. In particular, we recorded higher network-related costs, higher wholesale access costs following excellent uptake of customers of our fixed internet service, higher payroll, and higher marketing and distribution expenses linked to our new multi-play offering. In Media, revenue increased, driven by the strong performance which Janusz discussed earlier. At the same time, EBITDA was under some pressure from content costs. Let me remind you that in 2025, we expanded our portfolio of sports rights. In Q3, Polsat Channels aired the Volleyball Nations League and World Championships.
In green energy, revenue was higher year-on-year, mainly because of higher hydrogen bus sales and higher energy production, especially from the wind. EBITDA was impacted by the plant biomass unit overhaul and also by a high comparable base in 2024, when profitability on biomass energy sales was exceptionally strong. In the real estate, the drivers are exactly the same as in the fourth quarter. Lower revenues and EBITDA were due to a very high base in 2024, when we handed over a large portion of apartments to customers. Can I have the next slide, please? In 2025, we generated PLN 736 million in Adjusted Free Cash Flow after interest, excluding green energy development CapEx.
Starting from the top of the bridge, lower operating cash generation in 2025 is mainly the result of lower Adjusted EBITDA. In 2025, we paid about PLN 1.3 billion in cash interest and leases after hedging. Out of this, about PLN 1 billion represents debt service on our bonds and loans. Following the interest rate cuts, which started in Poland in mid-2025, we paid interest lower by about PLN 100 million. Free cash flow after interest settled at PLN 530 million in 2025. Non-recurring events include the disposal of Asseco shares, the payment for the 700 MHz band, and minor outflows on share acquisitions in the Media segment. Before we move on, please note that we also renewed the 900 MHz reservation for PLN 590 million.
This payment went through in January and will be reflected in Free Cash Flow of Q1 of 2026. The next telco frequency renewals are expected in 2029. After adjusting for PLN 5,510 million of Green Energy development CapEx, we arrive at PLN 736 million of core Free Cash Flow. Let's move on to CapEx on the next slide, please. As always, CapEx remains under control. In our case, TMT is a CapEx-light business. The CapEx to revenue ratio of this business was around 7% in the fourth quarter and 8% in the full year. These investments mainly include Netia's fixed network and IT. In the Green Energy segment, I want to stress that CapEx-intensive projects are coming to an end. This is already visible in 2025 figures.
Development CapEx in green energy was significantly lower year-on-year, down by 45% in the full year. 77% in the fourth quarter. In 2026, we expect to make final settlement for the Drzeżewo wind farm and complete the construction of the last small wind farm, Dobra. This would amount to about PLN 200 million of CapEx in total for 2026. Next slide, please. Let me now comment on our debt and leverage. At the end of 2025, Net Debt to EBITDA for last 12 months, excluding project financing, is 3.59, exactly the same as in 2024. At the consolidated level, including project financing, net leverage increased to 4.10. Gross debt was broadly stable year-on-year at PLN 15.2 billion.
This reflects two important financing moves in 2025. First, in February 2025, we made a partial prepayment under our senior facilities agreement of PLN 681 million. Second, in August 2025, we secured projects financing for the Drzeżewo wind farm up to PLN 953 million. I'm very glad to report that average cost of debt has significantly fallen. As you can see at the bottom of the table, the prospective weighted average interest cost on loans and bonds decreased to 6.6% in 2025 from 8.3% a year earlier. This is, of course, the effect of interest rate cuts. Our debt structure is stable, excluding project financing. 68% are bank loans and 32% are bonds.
The currency mix is predominantly Polish zloty, 83% and 17% euro, and it is fully floating interest rate. We hedge about 28% of our exposure in PLN and about 20% in euro. Turning to debt maturity, I would like to remind you that in 2026 we are returning to scheduled debt amortization. In 2026, we have PLN 770 million scheduled for repayment and PLN 830 million in 2027. In 2028, we have a bullet repayment of our debt under the senior facilities agreement. To summarize, 2025 was quite a challenging time for our group. Looking ahead, the intensive investment cycle in green energy is now behind us. We are entering 2026 with clear financial priorities.
We are focusing on strict cost control, tight CapEx management, improved cash generation, and reducing our debt. Thank you for your attention.
Okay. That concludes the official part of the presentation. We can now move to the Q&A session. In the Q&A panel, I see one question from Mr. Bartosz Kosiński from IFC. Could you please discuss any direct, indirect or anticipated impact of the Middle East crisis on the company's operational and financial performance?
Okay, maybe I'll answer that. The Middle East crisis does not directly impact our operations. It probably will impact our operations indirectly, but less than the Polish economy as a whole.
Okay. We have a really long question from Ali directed to Piotr. I will read it out all of it. Point one: What was your impression of the individual business divisions prior to you joining, and what have been your early findings since you joined? Were there any positive, negative surprises? Point two: You mentioned in your Annual Re port letter regarding market expectations, anything you would say about what the market thinks about the individual decisions that it doesn't get right now? Point three: Any thoughts that you can share on timing of updates before the autumn strategy update? I.e., will it be a big reveal at the point, or should we expect any updates before then? Are there any major CapEx commitments for any of the divisions that should be paused while you are reviewing the enlarged group? Thank you.
Thank you very much for the questions. I'll go through these one by one. First of all, after having joined, I, just for some context, I know the group very well. I've been involved with it for many years. There were no big surprises. I think the most positive surprise that I found was the level of ambition that I found within the teams that are already here. People had so many great ideas. They wanted to share them. They wanted to have a platform to really spread their wings and really share their ideas. In that context, my job was really easy. All the necessary ingredients were already here. I just had to let people speak and let people give their own ideas.
That was a very positive sentiment. With regards to the second questions, and market expectations. You know, I would say that market analysts have an amazing grasp of the numbers, of the Excel spreadsheets, of the specifics of every single market, every single division, our position within that market. However, what I think really lacks from an outside perspective is really looking internally on the ambitions of the individual team members, on the ideas of the individual team members and the opportunities that show up in the most unexpected of places.
While the markets may have very good consensus as to what our results will be, you know, within six months or within one ye ar, I think if we extend that time frame and we look at two years in the future, three y ears in the future, that's where we have a lot of opportunity to evolve and bring out the ideas from within the organization. Ideas that analysts will never think of or never even consider without actually spending, you know, 12 hours a day in the business, running the business. That's where you really get the maybe sometimes smaller ideas of day-to-day improvements. If you add up enough of those improvements over time, it can make a huge change for the whole organization.
With regards to the third question and the update on the autumn strategy, we have finished our major CapEx commitments for the Green Energy sector for the time being. Our telecommunications and media operations run on a, you know, on yearly budgets that have been pretty predictable over the last years. I would say you're correct in the question that there are no major CapEx commitments in the near future. Which does not mean, and I would like to highlight this, Regardless of working on the autumn strategy that will be announced by the end of this year, we will be looking at every project that comes across my desk individually, deciding, "Hey, you know, maybe this isn't part of the grand strategy. Maybe we don't necessarily need this, but this is just such a good opportunity.
This is such a good investment. We wanna do this, even if we have to sell it in a year or two years. It's just such a good investment from our perspective that we have to do it." Again, there are no long-term CapEx commitments that we have planned for the time being, but I don't want to block ourselves and exclude that something might show up in the coming months that we'll be, we'll be happy to invest in. Of course, we'll be very transparent. We'll be talking to analysts, we'll be talking to the market. We'll be sharing this information. Any decision we make, we'll be informing about it straight away. I think that answers all the questions, so thank you.
That was actually the last question, that we have in the Q&A session. With that in mind, thank you very much for your participation today. I will hand over to Piotr.
Thank you very much to everyone. I didn't have a speech during the actual presentation. My members of the board here did a very good job, so I'm very happy. I was here to answer all the questions, and I did that. Thank you very much. If you have any questions, feel free to reach out to our team. We'll try to answer everything as soon as possible. See you in a couple of weeks for the quarterly results. Thank you. Bye.
Bye.
Thank you.