Cyfrowy ypolsat IR Newsletter

Transcription

1 Cyfrowy ypolsat IR Newsletter November 2013

2 The press about Cyfrowy Polsat Date The press about TMT market in Poland Rzeczpospolita: Slow recovery after recession According to Lidia Kasprzycka, CEO of the Starlink media house, the improving climate of the Polish economy may cause optimism, but this sentiment may yet prove premature. We are lacking strong stimuli which could bolster economic growth beyond its potential level. In the quarters ahead, the economy will be slowly coming out of stagnation. We expect the same trend to hold in the advertising market the next quarters should bring gradual improvement, but growth will not be remarkable, Kacprzycka says. As Starlink's data shows, after the first three quarters Poland's advertising market shrank by 5.7% year on year and was worth PLN 4.94bn. "Internet advertising was the only category to experience an upward trend in revenue in the first three quarters of 2013, expanding by 7.6%, with in stream video advertising growing the fastest." t" Starlink estimates t thatt thesegmentt grew at arateof 48% in the period from January to September 2013 relative to the same period of As sales of tablet computers grow, so does mobile advertising, which is strongly correlated with the development of video on demand applications, Starlink claims. In Q1 Q3 2013, expenditure on television advertising stood at PLN 2.43bn, 5.3% less than in the previous year. Rzeczpospolita In their most recent report, UBS analysts reacted to the news that Cyfrowy Polsat was taking over Polkomtel by revising their recommendation for the company shares from 'buy' to 'hold'. Yesterday [18/11], Cyfrowy y Polsat stock traded at PLN

3 The press about Cyfrowy Polsat Date The press about TMT market in Poland Gazeta Wyborcza: Why would Cyfrowy Polsat buy Polkomtel? I believe in mobile internet ( ) Vadim Makarenko: Why would Cyfrowy Polsat buy Polkomtel? I believe in mobile internet Dominik Libicki : The idea is simple the more services they buy the lower the price they will buy them for. Each additional service will be offered to customers at a reduced price or more will be offered to them at the same price. But you already did that with Polkomtel, and without acquisitions. Why has Orange working with N failed to conquer the market? Because they are two separate companies with two different strategies. Each of them focuses on the profit margins earned on their own products sold to subscribers, and these are different products. Instead, they should look at the revenue stream generated by the same customer, which is impossible without a business merger. This was once also true about the business relationship between Cyfrowy Polsat and Polkomtel. Besides, the media and telecommunication worlds are intertwined. I am convinced a time will come when mobile internet usage becomes commonplace. I also believe that the Internet, which today is an alternative carrier for traditional television, will eventually begin to replace satellite TV. It just has to be faster, cheaper and more reliable. (...) Rzeczpospolita: Plus to bill customers for electricity Polkomtel is Poland's first mobile operator to launch retail sales of electricity. The company buys power on an exchange and from Zespół Elektrowni Pątnów Adamów Konin (PAK) owned by Zygmunt Solorz Żak's group. Its first step was to offer the service on a business to business basis. Some of the benefits for potential end consumers cited by the telecom operator include lower energy bills, as well as the comfort and convenience offered by service bundling. Tomasz Zadroga, member of the Polkomtel Management Board, claims there is an untapped retail electricity market of 13 million households h and over 1 million businesses. Parkiet: LTE network may be finished a quarter ahead of schedule As part of the second stage of the project, Midas has erected 3.05 thousand out of the planned 3.4 thousand towers of the super fast mobile broadband network. The odds are good that we will finish the second phase of the network extension sooner than expected, said Krzysztof Adaszewski, Midas CEO. Our original plan was to complete the project in mid 2014, but progress to date is 90% for the HSPA+ network and we are also ahead of schedule with the LTE network. If we continue at this pace, the project may be partly completed a quarter earlier, the head of Midas added.

4 The press about Cyfrowy Polsat Date The press about TMT market in Poland Dziennik Gazeta Prawna: As many as 15 contenders in the fifth TV multiplex round Fifth multiplex available to paid channels. Some of the applicants for the MUX multiplex, including Agora, Cyfrowy Polsat (CP) and Telewizja Polsat, have announced plans to broadcast subscription channels. We have tentatively expressed our interest in these frequencies, provided that we can use them to broadcast paid channels, stated Olga Zomer, spokesperson for CP. Rzeczpospolita: Billions forlte in Europe According to the daily, EUR 12.7bn have been raised by 12 European governments in the last four years from the mobile Internet 800 MHz spectrum allocations. The Polish government is only preparing for frequency auctions, and what the procedure will actually look like remains unknown. It is this final form of the procedure and the number of applicants bidding for the spectrum that will determine the price that operators in Poland will pay. These include listed names, such as Orange Polska and the Cyfrowy Polsat group, which will include Polkomtel as of April next year. According to the research made by the daily, the trend was for the spectrum prices to fall over time.

5 Latest events Press release, 18 November 2013 Romance TV HD added to Cyfrowy Polsat's channel package Romance TV HD is broadcast using MPEG 4 technology, and can be viewed by HD set top box users who have subscribed for the additional Film HD package. It is the 38th HD channel that can be accessed by Cyfrowy y Polsat subscribers and the 19th channel in the Film HD package, which can be bought together with the Familijny Max HD package. Current report 24(kor), The Management Board of Cyfrowy Polsat S.A. ("Cyfrowy Polsat", the "Company") informs that in the report no. 19 November /2013datedNovember18 18, 2013 The Management Board of Cyfrowy Polsat S.A. ("Cyfrowy Polsat", the "Company") informs that in the report no. 24/2013 dated November 18, 2013, there was mistakenly given information concerning the revision by Standard & Poor's Rating Services ("S&P") of its assessment of the business risk profile to "satisfactory" from "fair". According to the press release of the rating agency, S&P maintained its assessment of business risk as "fair" with the possibility to be revised to "satisfactory" after materialization of the acquisitionof Metelem Holdings Co.Ltd. The correct wording of the report is as follows: The Management Board of Cyfrowy Polsat S.A. ("Cyfrowy Polsat", the "Company") informs that Standard & Poor's Rating Services ("S&P") revised its outlook on Cyfrowy Polsat to stable from positive and affirmed the long term corporate credit rating assigned to the Company at 'BB'. S&P also affirmed the long term issue rating at 'BB' assigned to the EUR 350 million senior secured notes due 2018 issued by Cyfrowy Polsat Finance AB (publ), a wholly owned Swedish subsidiary of Cyfrowy Polsat. The outlook revision ii follows Polsat's announcement on Nov. 14, 2013, that it was acquiring ii Metelem Holding Co. Ld Ltd. (Metelem) the ultimate parent of Polish telecom operator Polkomtel Sp. z o.o. This rating action reflects that, when the acquisition take place, Polsat's adjusted pro forma leverage ratio would increase. At the same time S&P maintained its assessment of the business risk profile as "fair" with the possibility to be revised to "satisfactory" after materialization of the acquisition of Metelem. The securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

6 Ostatnie wydarzenia Current report no 25, 19 November 2013 Moody's places Cyfrowy Polsat's ratings on review for downgrade The Management Board of Cyfrowy Polsat S.A. ("Cyfrowy Polsat", the "Company") informs that Moody's has today placed the ratings of Cyfrowy y Polsat; corporate family rating (CFR) at Ba2, probability of default rating (PDR) at Ba2 PD and the Ba2 ratings of the senior secured notes due 2018 (issued by Cyfrowy Polsat Finance AB, a wholly owned Swedish subsidiary of Cyfrowy Polsat) under review for downgrade. The rating action follows the announcement that Cyfrowy Polsat has entered into a conditional investment agreement to essentially acquire at least 83.8% of Metelem Holding Company Limited, which owns 100% of Polish mobile operator Polkomtel Sp. z o.o. While the consideration for the acquisition of Polkomtel's equity is planned to be made entirely through the transfer of shares, Cyfrowy Polsat's consolidated leverage will be negatively affected as Polkomtel's leverage is materially higher. The review will evaluate the weakening of the Company's leverage against the transaction's potential benefits for the Company's business profile including (i) further diversification away from cyclical advertising revenues, (ii) increased scale and (iii) product suite expansion. Moody's currently does not expect a downgrade of Cyfrowy Polsat's CFR to exceed one notch, provided the transaction is concluded as presented. According to Moody's, the review process will likely conclude when the first step of the acquisition closes, after Cyfrowy Polsat's debt refinancing and the repayment of the outstanding Polkomtel's PIK notes (both are scheduled to take place by May 2014). The securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. Press release, 19 November 2013 Cyfrowy Polsat to replace DVB Ts with satellite set top boxes In a new promotion, Cyfrowy Polsat customers may visit their local Authorised Point of Sale and trade their DVB T set top boxes of any type for a PLN 1 HD satellite box and a promotional TV package of 46 subscription channels, free for six months.

7 Cyfrowy Polsat shares Date Maximum price (PLN) Minimum price (PLN) Closing price (PLN) Change (%) Trade value (PLN ths.)