Cyfrowy Polsat (CPS) Q2 2025 Earnings Call August 21, 2025 10:00 AM ET Company ParticipantsAndrzej Abramczuk - President of the Management BoardMaciej Stec - VP - Strategy & Business DevelopmentKatarzyna Ostap-Tomann - CFO & Member of the Management BoardOperatorGood afternoon, and a warm welcome to Polsad Plus Group's earnings conference for the 2025. Can I have the next slide, please? Before we begin, let me introduce our speakers for today. Andrea Bramchuk, President of the Management Board Matti Eestetz ...

Financial Data and Key Metrics Changes - The company reported revenue of PLN 3,600,000,000, an increase of nearly 4% year over year [8][37] - Adjusted EBITDA was stable at PLN 824,000,000, a slight decline of 2.4% compared to the previous year due to higher costs [37][40] - Net profit settled at PLN 113,000,000, with a year-over-year decrease attributed to one-off effects [38][40] - Free cash flow for the last twelve months adjusted for CapEx in the green energy segment reached over PLN 1,000,000,000, indicating strong cash generation capacity [38][41] Business Line Data and Key Metrics Changes - In the media segment, audience share grew to 22.5%, with advertising revenues increasing by 3.7% year over year [10][34] - The telecommunications segment introduced a new multiplay offering, resulting in over 3,000,000 multiplay customers, a significant increase from the previous definition [21][24] - Green energy production increased by over 40% to 314 gigawatt hours in Q2 2025, driven by the expansion of wind production capacity [30][32] Market Data and Key Metrics Changes - The advertising market grew by 3.2% year over year, with the company outperforming this growth [12][14] - The company maintained a stable market share of 28.2% in the advertising market [13] - The B2B segment saw a 4% year-over-year increase in ARPU, reaching nearly PLN 1,550 per month [28] Company Strategy and Development Direction - The company is focused on a long-term strategy aimed at building customer value and driving ARPU growth through its new multiplay offering [4][50] - The completion of the Dzhevo wind farm is expected to double the company's wind capacity, supporting future EBITDA growth [32][51] - The company aims to monetize its investments in green energy and deliver promised EBITDA in upcoming periods [34][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging operating environment, citing strong customer satisfaction and loyalty reflected in a low churn rate of 7.1% [24][34] - The management team highlighted the importance of the new multiplay strategy in driving customer value and maintaining a competitive edge [20][50] - Future interest savings are anticipated due to recent interest rate cuts, although the overall cost of debt service remains high [42][47] Other Important Information - The company secured a bank loan of nearly PLN 1,000,000,000 for the Jejuvo project, indicating strong confidence from financial institutions [7][51] - The company is nearing the completion of its major strategic investment in renewables, with a focus on stable returns moving forward [46][51] Q&A Session Summary Question: What is your view on the planned digital tax? - The company believes regulating digital tax in Poland is necessary for fair competition with global tech companies, but the impact depends on the specific formula of the tax [54] Question: Could you provide an outlook for equipment sales in 2025? - The company anticipates a slight improvement in equipment sales, but does not expect significant increases due to market saturation [55] Question: When is the company expected to reach the peak of its net debt to EBITDA? - The peak is expected around the first quarter of 2025 [57]

Core Insights - REFI Sun, part of the INVL Renewable Energy Fund I, successfully completed a public bond placement of EUR 15 million aimed at financing renewable energy projects in Poland and Romania [1][2][3] Group 1: Bond Offering Details - The bond offering raised EUR 15 million, with total demand reaching EUR 15.636 million from 567 investors [2][6] - The bonds have a 2.5-year maturity with an annual interest rate of 8.5%, payable quarterly, and a minimum investment amount of EUR 1,000 [6] - Institutional investors acquired 57.75% of the bonds, while retail investors received 42.25% [6] Group 2: Project Financing and Development - Proceeds from the bond will finance a portfolio of solar power projects with a total capacity of 389 MW in Poland and Romania [2][9] - The fund's total investments in these markets are expected to exceed EUR 250 million, with over EUR 90 million already invested as of June 2025 [9][10] - The construction of all solar parks is anticipated to be completed by the end of 2027 [9] Group 3: Market and Investor Confidence - The bond issuance reflects strong investor confidence in the fund's renewable energy initiatives in Poland and Romania [3][5] - The offering allows investors to diversify their portfolios while contributing to sustainable development goals [5] - Increased interest from institutional investors has been noted compared to previous bond offerings [3]

Core Points - VINCI and ACS have finalized an agreement regarding the acquisition of Cobra IS, which was completed on December 31, 2021 [1] - The total value of the acquisition amounts to €5.3 billion, with an enterprise value of €4.6 billion at the time of acquisition [2] - The agreement includes a fixed earn-out related to Cobra IS' developments in renewable energy, set at €380 million, with €300 million remaining to be paid in cash [4] Financial Impact - The new provisions from the agreement will not have a significant impact on VINCI's financial statements, as these elements were already accounted for in previous fiscal years [2][4] - The earn-out was originally planned to be up to €600 million but has been fixed at €380 million, with payments already made by VINCI [4] Joint Venture Termination - VINCI and ACS have decided to terminate their original agreement concerning the creation of a joint venture for new renewable energy production projects developed by Cobra IS [4]

Core Viewpoint - AES Corporation is evaluating a potential sale following interest in a takeover, leading to a significant increase in its stock price during premarket trading [2] Company Overview - AES Corporation is a utility and power generation company based in the United States, with a diverse portfolio of renewable energy assets, including wind and solar farms, and operates two utilities in Indiana and Ohio [3] - The company focuses on providing renewable energy to data center operators and has established partnerships with major tech companies like Google and Amazon [3] Financial Performance - AES's stock is currently trading at 45% below its 52-week high of approximately $20, despite the recent interest in a sale [4] - The company has a price-to-sales (P/S) ratio of 0.7 compared to 3.1 for the S&P 500, and a price-to-earnings (P/E) ratio of 6.3 versus 26.9 for the benchmark [8] - AES's revenues have declined from $13 billion to $12 billion over the last 12 months, a decrease of 3.2%, while the S&P 500 experienced a growth of 5.5% [8] - Quarterly revenues fell by 5.2% to $2.9 billion from $3.1 billion year-over-year, contrasting with a 4.8% improvement for the S&P 500 [8] Profitability and Margins - AES's operating income over the last four quarters was $1.8 billion, with an operating margin of 15.2% [13] - The net income for the same period was $1.3 billion, resulting in a net income margin of 10.7%, compared to 11.6% for the S&P 500 [13] - Profit margins are approximately at the median level for companies in the Trefis coverage universe [9] Financial Stability - AES's balance sheet is characterized as very weak, with total debt standing at $31 billion against a market capitalization of $7.9 billion, leading to a poor debt-to-equity ratio of 373.3% [10][13] - Cash and cash equivalents amount to $1.8 billion out of $49 billion in total assets, resulting in a low cash-to-assets ratio of 3.7% [13] Market Performance - AES stock has significantly underperformed compared to the S&P 500 during recent economic downturns, with a decline of 57.5% from a peak of $29.27 on December 13, 2022, to $12.45 on October 6, 2023 [14] - The stock has not returned to its pre-crisis high, with the highest price since then being $21.77 on May 30, 2024, and currently trading around $11.10 [14]

Core Insights - NextEra Energy's shares are trading at a premium with a price-to-earnings (P/E) ratio of 18.86X, higher than the industry average of 15.27X and the broader utilities sector average of 16.15X [1][6] - The company is benefiting from a well-structured investment plan, strategic acquisitions, a growing customer base, and improving economic conditions in its service regions [3][9] Financial Performance - NextEra Energy's earnings are projected to grow at an annual rate of 6-8% through 2027, supported by renewable energy and efficiency initiatives [6] - The company aims to increase its dividend by 10% annually through 2026, starting from a base of $2.27 per share, which results in a dividend yield of 3.03% [23] Customer Base and Market Position - Approximately 89% of NextEra Energy's customer base consists of residential users, with the remaining 11% being commercial [10] - The subsidiary Florida Power & Light Company offers residential electricity rates below the national average, enhancing customer appeal and market positioning [9] Renewable Energy Investments - NextEra Energy Resources plans to add 36.5-46.5 GW of new renewable capacity between 2024 and 2027, with a contracted renewables backlog of nearly 28 GW [11] - The company has benefited from technological advances that have reduced the cost of renewable energy, allowing it to secure long-term power purchase agreements for stable cash flows [12] Operational Efficiency - NextEra Energy has one of the lowest cost structures in the utility sector, supported by operational efficiencies and economies of scale in renewables [13] - The company plans to invest over $72.6 billion through 2029 to further strengthen its operations [13] Earnings Performance - NextEra Energy has exceeded earnings per share expectations for four consecutive quarters, with an average earnings surprise of 3.58% [14] - The company expects its 2025 earnings per share to be in the range of $3.45-$3.70, reflecting a year-over-year growth of 7.29% for 2025 and 7.95% for 2026 [16] Return on Equity - NextEra Energy's trailing 12-month return on equity (ROE) is 12.06%, outperforming the industry average of 10.13% [20] Summary - NextEra Energy maintains steady performance driven by growing demand for clean energy, operational efficiency, and strategic investments, making it a strong player in the utility sector [25]

Financial Performance - As of December 31, 2024, the Company's total assets were EUR 189,795 thousand, total equity was EUR 100,476 thousand, and total liabilities were EUR 89,319 thousand [3] - The Company's investment assets at fair value through profit or loss were EUR 159,902 thousand, a decrease of EUR 20,158 thousand or 11.20% compared to December 31, 2023, primarily due to lower electricity price forecasts affecting the valuation of solar assets in Poland [3] - The Company reported a comprehensive loss of EUR 14,824 thousand for the year, mainly due to negative fair value changes in the investment portfolio [3] Operational Developments - In December 2024, the Company divested its 65.5 MW operating solar portfolio in Poland, marking its first significant exit in its core portfolio [3] - The construction of a 67.8 MW capacity portfolio for PV Energy Projects sp. z o.o. is nearing completion, with 44.8 MW operational and a Commercial Operation Date anticipated for September 2025 [3] - The PL SUN sp. z o.o. portfolio, totaling 114.7 MW, is progressing through two phases, with the first phase of 66.6 MW substantially completed and energization expected for the remaining capacity by the second quarter of 2025 [3] Project Developments - The Company holds a 25% stake in UAB Žaliosios investicijos, managing a 185.5 MW wind portfolio, with energy production licenses for the Anykščiai wind farm secured and others anticipated in 2025 [3] - A development permit for a hybrid power plant with 100 MW of wind and 70 MW of solar has been granted, with the technical design project submitted for coordination [3] - The Company has submitted a grid connection technical project for a 70 MW solar PV project, marking significant progress in its development [3] Shareholder Meeting - A shareholders' meeting is scheduled for April 30, 2025, to vote on the approval of the 2024 financial statements and consider profit distribution proposals [4] - The proposed profit allocation indicates retained earnings at the end of the financial year for 2024 will be EUR 16,376 thousand, with no dividends proposed for the current year [4]