Cyfrowy Polsat S A : Consolidated report for Q1 2024

Cyfrowy Polsat S.A. Capital Group

Interim Consolidated Report

for the three month period ended March 31, 2024

Warsaw, May 22, 2024

Table of Contents

Interim condensed consolidated financial statements for the 3 months ended March 31, 2024

Interim condensed financial statements for the 3 months ended March 31, 2024

Report of the Management Board on the activities of Cyfrowy Polsat S.A. Capital Group for the three month period ended March 31, 2024

Cyfrowy Polsat S.A. Capital Group

Interim Condensed Consolidated Financial Statements for the 3 months ended 31 March 2024

Prepared in accordance

with International Accounting Standard 34 Interim Financial Reporting

Cyfrowy Polsat S.A. Capital Group	2

Interim Condensed Consolidated Financial Statements for the 3 months ended 31 March 2024

(all cash amounts presented in text are in million with currency specification, all amounts are in PLN million, except where otherwise stated)

Table of contents

Approval of the Interim Condensed Consolidated Financial Statements	3
Interim Consolidated Income Statement	4
Interim Consolidated Statement of Comprehensive Income	5
Interim Consolidated Balance Sheet	6
Interim Consolidated Cash Flow Statement	8
Interim Consolidated Statement of Changes in Equity	10
Notes to the Interim Condensed Consolidated Financial Statements	12
General information	12
1.	The Parent Company	12
2.	Composition of the Management Board of the Company	12
3.	Composition of the Supervisory Board of the Company	13
4.	Basis of preparation of the interim condensed consolidated financial statements	13
5.	Group structure	14
6.	Approval of the Interim Condensed Consolidated Financial Statements	22
Explanatory notes	23
7.	Information on seasonality in the Group's operations	23
8.	Revenue	23
9.	Operating costs	24
10.	Gain/(loss) on investment activities, net	24
11.	Finance costs, net	25
12.	Equity	25
13.	Hedge valuation reserve	27
14.	Loans and borrowings	27
15.	Issued bonds	27
Other notes	28
16.	Acquisition of subsidiaries	28
17.	Operating segments	33
18.	Transactions with related parties	38
19.	Contingent liabilities	40
20.	Risk and fair value	41
21.	Important agreements and events	45
22.	Events subsequent to the reporting date	48
23.	Other disclosures	48
24.	Judgments, financial estimates and assumptions	49

Cyfrowy Polsat S.A. Capital Group	3

Interim Condensed Consolidated Financial Statements for the 3 months ended 31 March 2024

(all cash amounts presented in text are in million with currency specification, all amounts are in PLN million, except where otherwise stated)

Approval of the Interim Condensed Consolidated Financial Statements

On 22 May 2024, the Management Board of Cyfrowy Polsat S.A. approved the interim condensed consolidated financial statements of Cyfrowy Polsat S.A. Capital Group prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, as adopted by the European Union, which include:

Interim Consolidated Income Statement for the period
from 1 January 2024 to 31 March 2024 showing a net profit for the period of:	PLN 184.3

Interim Consolidated Statement of Comprehensive Income for the period

from 1 January 2024 to 31 March 2024 showing a total comprehensive income for the period of:

Interim Consolidated Balance Sheet as at

31 March 2024 showing total assets and total equity and liabilities of:

Interim Consolidated Cash Flow Statement for the period

from 1 January 2024 to 31 March 2024 showing a net decrease in cash and cash equivalents amounting to:

Interim Consolidated Statement of Changes in Equity for the period

from 1 January 2024 to 31 March 2024 showing an increase in equity of:

Notes to the Interim Condensed Consolidated Financial Statements

PLN 188.2

PLN 36,560.5

PLN 596.8

PLN 182.5

The interim condensed consolidated financial statements have been prepared in million of Polish zloty ('PLN') except where otherwise indicated.

Mirosław		Maciej		Jacek		Aneta
Błaszczyk		Stec		Felczykowski		Jaskólska
President of the		Vice-President of the		Member of the		Member of the
Management Board		Management Board		Management Board		Management Board
Agnieszka		Katarzyna
Odorowicz		Ostap-Tomann
Member of the		Member of the
Management Board		Management Board

Warsaw, 22 May 2024

Cyfrowy Polsat S.A. Capital Group	4

Interim Condensed Consolidated Financial Statements for the 3 months ended 31 March 2024

(all cash amounts presented in text are in million with currency specification, all amounts are in PLN million, except where otherwise stated)

Interim Consolidated Income Statement

			for the 3 months ended
		Note	31 March 2024		31 March 2023
		unaudited		unaudited
	Continuing operations
	Revenue	8	3,405.0	3,199.3
	Operating costs	9	(3,116.3)	(2,891.9)
	Gain on disposal of a subsidiary and an associate		10.0	-
	Other operating income/(cost), net		154.0	(8.7)
	Profit from operating activities		452.7	298.7
	Gain/(loss) on investment activities, net	10	19.2	20.8
	Finance costs, net	11	(201.3)	(255.7)
	Share of the profit/(loss) of associates accounted for		-	20.3
	using the equity method
	Gross profit for the period		270.6	84.1
	Income tax		(86.3)	(13.1)
	Net profit for the period		184.3		71.0
	Net profit attributable to equity holders of the Parent		180.1	64.5
	Net profit/(loss) attributable to non-controlling interest		4.2	6.5
	Basic and diluted earnings per share (in PLN)		0.33	0.13

Cyfrowy Polsat S.A. Capital Group	5

Interim Condensed Consolidated Financial Statements for the 3 months ended 31 March 2024

(all cash amounts presented in text are in million with currency specification, all amounts are in PLN million, except where otherwise stated)

Interim Consolidated Statement of Comprehensive Income

		for the 3 months ended
	Note	31 March 2024	31 March 2023
	unaudited	unaudited
Net profit for the period		184.3	71.0

Items that may be reclassified subsequently to profit or loss:

	Valuation of hedging instruments	13	4.6	(9.7)
	Share of other comprehensive income of		(0.7)	(0.2)
	subsidiaries and associates
	Other comprehensive income/(loss), net of tax		3.9	(9.9)
	Total comprehensive income for the period		188.2	61.1

Total comprehensive income attributable to equity holders of the Parent

Total comprehensive income attributable to non- controlling interest

184.154.7

4.16.4

Cyfrowy Polsat S.A. Capital Group	6

Interim Condensed Consolidated Financial Statements for the 3 months ended 31 March 2024

(all cash amounts presented in text are in million with currency specification, all amounts are in PLN million, except where otherwise stated)

Interim Consolidated Balance Sheet - Assets

			Note		31 March 2024	31 December
				unaudited	2023
	Property, plant and equipment			6,571.9	6,494.3
	Goodwill	16	10,975.4	10,980.2
	Customer relationships			191.1	300.2
	Brands			1,959.7	1,979.7
	Other intangible assets			4,807.1	4,835.8
	Right-of-use assets			685.3	644.6
	Non-current programming assets			285,9	304.8
	Investment property			694.9	700.0
	Non-current deferred distribution fees			74.5	85.0
	Non-current trade receivables			925.7	968.1
	Non-current loans granted			11.0	10.9
	Other non-current assets, includes:			741.7	702.8
	shares in associates accounted for using the equity			10.1	10.1
	method
	shares in third parties valued in fair value through			652.9	615.9
	profit or loss
	derivative instruments			22.2	35.2
	Deferred tax assets			157.4	142.8
	Total non-current assets			28,081.6	28,149.2
	Current programming assets			674.5	678.2
	Contract assets			340.8	349.0
	Inventories			1,229.3	1,215.6
	Trade and other receivables			2,914.1	2,947.1
	Current loans granted			117.7	116.2
	Income tax receivable			28.0	20.0
	Current deferred distribution fees			241.0	227.4
	Other current assets, includes:			207.0	139.7
	derivative instruments			33.9	21.6
	Short-term deposits			1.6	-
	Cash and cash equivalents			2,694.9	3,306.0
	Restricted cash			24.3	19.7
	Total current assets			8,473.2	9,018.9
	Assets held for sale			5.7	8.6
	cash and cash equivalents			-	1.2
	Total assets				36,560.5	37,176.7

Cyfrowy Polsat S.A. Capital Group	7

Interim Condensed Consolidated Financial Statements for the 3 months ended 31 March 2024

(all cash amounts presented in text are in million with currency specification, all amounts are in PLN million, except where otherwise stated)

Interim Consolidated Balance Sheet - Equity and Liabilities

		Note		31 March 2024	31 December
			unaudited	2023
Share capital	12	25.6	25.6
Share premium	12	7,174.0	7,174.0
Share of other comprehensive income of associates			(0.1)	-
Other reserves	12	2,755.7	2,752.8
Retained earnings			8,514.2	8,334.1
Treasury shares	12	(2,854.7)	(2,854.7)
Equity attributable to equity holders of the Parent			15,614.7	15,431.8
Non-controlling interests			873.0	873.4
Total equity			16,487.7	16,305.2
Loans and borrowings	14	9,429.7	9,534.3
Issued bonds	15	3,581.6	3,955.4
Lease liabilities			454.9	444.6
Deferred tax liabilities			1,088.3	1,035.0
Other non-current liabilities and provisions, includes:			341.4	385.6
derivative instruments			12.1	24.0
Total non-current liabilities			14,895.9	15,354.9
Loans and borrowings	14	1,190.8	1,069.7
Issued bonds	15	358.2	393.7
Lease liabilities			184.4	166.2
Contract liabilities			719.9	682.2
Trade and other payables, includes:			2,703.7	3,172.6
derivative instruments			13.3	20.2
Income tax liability			19.9	31.4
Total current liabilities			5,176.9	5,515.8
Liabilities held for sale			-	0.8
Total liabilities			20,072.8	20,871.5
Total equity and liabilities				36,560.5	37,176.7

Cyfrowy Polsat S.A. Capital Group	8

Interim Condensed Consolidated Financial Statements for the 3 months ended 31 March 2024

(all cash amounts presented in text are in million with currency specification, all amounts are in PLN million, except where otherwise stated)

Interim Consolidated Cash Flow Statement

		for the 3 months ended
	Note	31 March 2024	31 March 2023
	unaudited	unaudited
Net profit		184.3	71.0
Adjustments for:		616.2	284.7
Depreciation, amortization, impairment and liquidation	9	493.6	462.5
Payments for film licenses and sports rights		(206.7)	(187.2)
Amortization of film licenses and sports rights		146.4	151.3
Interest expense		264.2	236.9
Change in inventories		(4.2)	(109.8)
Change in receivables and other assets		(71.0)	132.5
Change in liabilities and provisions		0.6	(330.2)
Change in contract assets		8.2	(14.6)
Change in contract liabilities		37.7	22.1
Foreign exchange (gain)/losses, net		(20.5)	0.1
Income tax		86.3	13.1
Net additions of reception equipment		(45.8)	(24.8)
Share of the profit of associates accounted for using the		-	(20.3)
equity method
Gain on disposal of a subsidiary and an associate		(10.0)	-
Premium for early redemption of bonds		0.4	9.7
Cumulative catch-up		(2.5)	(19.2)
Other adjustments		(60.5)	(37.4)
Cash from operating activities		800.5	355.7
Income tax paid		(67.8)	(80.5)
Interest received from operating activities		30.5	24.4
Net cash from operating activities		763.2	299.6
Acquisition of property, plant and equipment		(233.7)	(215.4)
Acquisition of intangible assets		(101.9)	(79.8)
Concessions payments		(271.9)	(852.2)
Acquisition of subsidiaries, net of cash acquired		(6.2)	(0.1)
Proceeds from disposal of a subsidiary and an associate		12.0	-
Proceeds from sale of property, plant and equipment		6.5	6.4
Loans granted		(0.5)	(144.0)
Repayment of loans granted		0.5	60.5
Dividends received from associate		-	7.1
Other inflows/(outflows)		(2.0)	6.4
Net cash used in investing activities		(597.2)	(1,211.1)