Cyfrowy Polsat contract pay TV subscribers down 24,000 in 2Q 2021

Cyfrowy Polsat S.A. Capital Group has released its interim consolidated report for the six month period ended June 30, 2021.

New Polsat Plus Group brands

In June 2021, we initiated evolutionary changes in the portfolio of brands of our Group and the strategy of their communication. In the first step, new logotypes for the Plus and Polsat brands were introduced. These two brands are of strategic importance and stand, respectively ,for our telecommunication services of the highest quality, including the best 5G in Poland, and for the most attractive content.

In the next step, at the end of July 2021 we presented new logotypes for the remaining main brands of the Group. Cyfrowy Polsat brand will change to the new Polsat Box brand. Ipla and Cyfrowy Polsat Go will evolve into a single service called Polsat Box Go. Moreover, a new service called Polsat Go, offering Polsat TV content, will be created.

B2C and B2B services segment

• Contract services – At the end of June 2021 our customers used 4,961 thousand contract pay TV services. The pay TV RGU base was under a slight pressure in the twelve-month period ended June 30, 2021 recording a decrease by 40 thousand (-0.8% YoY), mainly due to the lower number of provided satellite TV services. Nevertheless, despite a decrease of the base we continue to view pay TV as an area with potential to build customer value and consequently the scale of our revenues.
• Prepaid Services – The number of prepaid TV services provided by us increased by 42 thousand (+45.2%) YoY, to the level of 135 thousand at the end of the second quarter of 2021, driven by our efforts to increase the offer attractiveness of our Polsat Box go (formerly IPLA) platform.

Netia

Our subsidiary Netia provides an IPTV service under the brand of ‘Personal Television’ (‘Telewizja Osobista’). Currently, Netia’s Personal Television offering includes approximately 220 channels and the number of TV services provided by Netia as at June 30, 2021 amounted to over 297 thousand.

Fixed-line broadband Internet

Through our subsidiaries Netia and Polkomtel we provide fixed-line broadband Internet services, among others in fiber optic technologies. Services to individual customers are sold mainly in bundles with TV and voice services, including a mobile offering. The service offering is supplemented by a number of value added services which support ARPU levels and the loyalty of our customers. Netia Spot, a wireless Wi-Fi router, and Netia Player, an innovative multimedia set-top box with access to a variety of TV channels, VOD services, Internet apps and the possibility to open own multimedia files all constitute a part of the home multimedia platform which uses broadband Internet access for distribution of content to members of a household.

Total number of RGUs (EOP) – Pay TV*

                                                   2019
             ------------------------------------------
                    1Q         2Q         3Q         4Q
             ---------  ---------  ---------  ---------
Contract     5,077,221  5,058,740  5,033,398  5,038,448
  Multiroom  1,167,983  1,173,866  1,180,891  1,192,984
Prepaid        144,586     87,176    142,886    161,208
                
                                                   2020
             ------------------------------------------
                    1Q         2Q         3Q         4Q
             ---------  ---------  ---------  ---------
Contract     4,992,356  5,000,734  5,010,376  5,010,358
  Multiroom  1,187,199  1,197,486  1,200,561  1,208,676
Prepaid        171,958     93,292    158,060    114,416
                
                                                   2021
             ------------------------------------------
                    1Q         2Q         3Q         4Q
             ---------  ---------  ---------  ---------
Contract     4,985,621  4,961,196
  Multiroom  1,206,068  1,202,991
Prepaid        224,608    135,476

* Operational indicators excluding the results of Netia Group over which Cyfrowy Polsat Group took control effective May 22, 2018. Due to the fact that Netia S.A. is a company listed publically on the Warsaw Stock Exchange in Warsaw, its detailed operational and financial results are separately available.