Cyfrowy Polsat SA

WSE:CPS

Earnings Call Transcript

[Operator]

Good afternoon, ladies and gentlemen. It is my pleasure to welcome you to the earnings call of Polsat Plus Group for the fourth quarter of 2024 and the full year 2024.

Could I please have the next slide. Today, the results will be presented to you by the CEO of Cyfrowy Polsat, Mr. Miroslaw Blaszczyk; Vice President, Responsible for Strategy, Mr. Maciej Stec; and the CFO and Management Board member responsible for ESG, Ms. Katarzyna Ostap-Tomann.

As we proceed with the presentation, please post any questions you may have in the Q&A panel. Please remember to include your name and institution with your questions as we do not accept anonymous questions. This will help us address your queries more effectively and ensure a smooth Q&A session. Thank you very much. And I pass the floor over to Mr. Blaszczyk.

[Miroslaw Blaszczyk, executive]

Good morning, everyone. I'm pleased to welcome you to Polsat Plus Group's results conference for the fourth quarter of 2024 and the entire year 2024. Today's presentation will follow the standard plan. First, highly present the most important events that took place in the past year. Then Maciej will discuss the operational results of all our business segments and Kacha will present the group's financial results. We will conclude the presentation with a brief summary of 2024 and cover our goals for 2025, followed by a Q&A session.

Next slide, please. The year 2024 was a very good year for Polsat Plus Group. I'm very pleased with the operational results achieved in all our business segments. Combined with cost discipline, they translated into strong financial results.

Let's move on to the next slide. Let's start with the telecommunications segment. We consistently implement our long-term multiplay strategy focusing on building customer value and loyalty. As a result, in 2024, the average revenue per B2C contract customer increased by 4.8% to PLN 76.1 and for B2B customer by 3.4% to over PLN 1,500. I'm very pleased with the falling churn rate, which was only 7% in 2024. In this segment, we continuously expand and improve our Plus 5G network. It now covers 26 million people that 70% of Poland's population.

As you may remember, we decided to base our 5G network on the unique 2.6 gigahertz TDD frequency back in 2020. And in 2024, we renewed this reservation for another 15 years. Additionally, at the beginning of 2024, we obtained the reservation in the 3.6 gigahertz band and just 2 weeks ago, the 700 megahertz auction was concluded in which we acquired 1 block for PLN 363 million.

This way, we have secured frequency resources that we will use in the coming years to further develop our 5G network to provide our customers with the best quality of services. We are also consistently increasing the coverage of our fixed internet access service. Today, we cover almost 11 million households using both our own network and wholesale access.

Next slide, please. Moving on to the Media segment. I'm pleased to inform you that our TV channels achieved very good viewership results, capturing a 22% market share. I would also like to highlight the success of our Polsat-Interia PL, which in 2024 become the leader among Internet publishers in Poland. We have also strengthened our offering in the key sports segments by securing exclusive rights to broadcast several prestigious events. This include, among others, the Formula 1 Grand Prix, The UEFA Europa League, The UEFA Conference League, The German Bundesliga and The French Ligue 1. We are also very pleased with the return of the men's and women's national handball to Polsat. These sports rights will contribute to the attractiveness of our sports offering in the coming years.

Next slide, please. In the Green Energy segment, we are constantly implementing the Strategy 2023+ and building our third business pillar. In 2024, we launched 2 more wind farm in Czluchow and Przyrow. As a result, our installed wind power capacity increased to 150 megawatts. At the same time, we are dynamically building our largest wind farm in Drzezewo with a capacity of 139 megawatts were 32 or some turbines are already standing.

In the green hydrogen area, I'm very pleased to inform you that we have completed our green hydrogen value chain by launching green hydrogen production at our electrolyser in Konin. Hydrogen is produced by a 2.5 megawatt PEM electrolyser with a capacity of up to 1,000 kilograms of hydrogen per day.

Additionally, we have put into operation more hydrogen refueling station. Today, they are already 6 public NESO stations in Warsaw, Rybnik, Gdansk, Gdynia, Lublin and

Wroclaw. We also won tenders for the delivery of 55 hydrogen-powered buses to various cities in Poland.

Next slide, please. We entered 2024 with very good financial results. Kacha will, of course, present the details, but I would like to highlight the strong growth we recorded in 2024. The group's revenues were 4.7% higher year-on-year and amounted to PLN 14.3 billion. Adjusted EBITDA increased by 9.6% to PLN 3.3 billion.

I would also like to underline the effective cash flow management within our wide portfolio of strategic investments is our priority. I would like to remind you of an important event that took place in the first quarter of this year. We decided to sell our stake in Asseco and allocated the proceeds to the total early repayment of our loan in the amount of PLN 681 million which further strengthens our clients' position.

Next slide, please. Ladies and gentlemen, the year 2024 was follow significant events for our group in each segment. It was a very successful year for our company, both in terms of business results and financial achievements. Our TMT business is developing organically according to plan. The execution of the Strategy 2023+ in the Green Energy segment is already bringing tangible results. Good operational results translated into significant increases in both revenues and EBITDA. I am proud of the achievements of the past year and I look to the future with optimism.

Now let's move on to the detailed operational results of our business segments, starting with the Media segment. Maciej, over it to you.

[Maciej Stec, executive]

Thank you, Mirek. Hello, everyone. Indeed, like Mirek said, we had very good results in our operating segments in the fourth quarter and 2024. So let me start with the Media segment.

Next slide, please. The fourth quarter was very good for TV Polsat. We had a strong position, both in terms of viewership and advertising. The audience share of our thematic channels grew to 15.2%, driving up the total audience share of our channels to 22.7%. Our main channel Polsat had a share of 7.5%, which is a stable result year-over-year.

Advertising spending in the fourth quarter grew at a rate of almost 3%. During this time, our TV advertising revenue increased by 1.8%, which gave us a market share of 28%.

And -- can I have the next slide, please. In my opinion, it's always better to look at the performance of our Media segment over a longer period time horizon because of seasonality. On this slide, we have the results for the full year. Our position in terms of audience shares remained strong throughout the year. Our main channel Polsat achieved 7.1% of audience shares and our thematic channels had 14.9%. As a result, our portfolio of TV channels maintained high stable audience share of 22%.

This is an excellent result because please remember that last year, we had the Olympic Games in Paris and The UEFA European Championships in Germany, which were broadcast by our competitors. So I'm very satisfied that we maintained a stable position, which is in line with our long-term strategy.

In 2024, the TV advertising market expanded at 5.9%. Our advertising revenue grew at a slightly lower rate of 4.2%, reaching almost PLN 1.4 billion. And as a result, we had 28% of market share at the end of last year. So a very good result.

Can I have the next slide, please? Let's move on to our Online business, we are particularly proud of the results of Polsat-Interia, because, as you can see on this slide, we have successfully built our position in the online market. In 2024, Polsat-Interia Group was the #1 Internet publisher in Poland in terms of real users. We are also very pleased that in 2024, Polsat-Interia Group remained the market leader in the mobile category because the amount of content consumed on the small screen is rapidly growing, and this leading position gives us a competitive edge.

In the fourth quarter of 2024, the average monthly number of our users reached 20.8 million, and the number of page views exceeded 1.8 billion, demonstrating our strong market presence. We see synergies between Interia and Polsat at a daily basis, and this business [indiscernible] delivers consistent, solid financial results.

Next slide, please. Summarizing 2024 was very good year for both Television and Interia. Our TV channels had an audience share of 22%, and we increased advertising and sponsorship revenues by over 4%, while Interia became a leading player in the online market.

As you can see, we focus on producing engaging content, particularly our own Polish productions, which are extremely important to our viewers. In the first column, you can see our own productions. These are proven formats, [ series ] and content that are well known and loved by our reviewers. This attractive own content in the Polish language translates into a very good viewership results for our channels, both in 2024 and at the beginning of 2025.

The second pillar is strengthening the sports channel offering. As you can see on the left side, we are extremely pleased with our sports offering for the coming years. As you know, we have acquired the rights to Formula 1, which is performing very well on Eleven Sports Channel Network. We also purchased the rights to the Europa League and Conference League where Polish teams are playing and they are doing very well.

We are broadcasting Bundesliga since the beginning of 2025, and we have renewed the rights to broadcast the French League, Ligue L and the last but not least, we are also very happy that national handball women's and men's is returning to Polsat Sport channels.

So we have 2 pillars, entertainment and service production and sports focused on major rights but also on Polish sports. We expect that in 2025, we will continue our growth streak, both in terms of viewership and advertising market.

Next slide, please. Moving on to the B2C and B2B services segment. I can say that we had a very good quarter and year in this segment as well. Let's look at the results.

Next slide, please. As you know, in this segment, we have been consistently implementing the multiplay strategy for many years, and we focus our efforts on building customer value and loyalty. We have a stable base of multiplay customers despite challenging market conditions. We operate in a highly competitive environment, and we are facing macroeconomic headwinds. Interest rates remain higher at 5.75% and high cumulative inflation over the past years. Despite all of this, our multiplay customer base increased by 2.4% to over 2.5 million customers, representing 44% of our total customer base.

This group contracted a total of 7.7 million services, making an increase of 261,000 year-on-year. At the end of the fourth quarter of 2024, churn decreased to only 7%. This shows customer loyalty and the very good quality of these services relative to the prices.

This makes me very happy because it indicates a long-term relationship with our customers. We are confident that as we continue our multiplay offerings, we will maintain the slow churn rate in the future.

Can I have the next slide, please? We provided over 13 million contract services to our B2C customers by the end of the fourth quarter of 2024, mobile telephony and internet services were the key drivers of this growth. We added 191,000 mobile voice services, reaching a total of 6.4 million. Internet access services also grew by 95,000 up to 2.1 million.

Our Pay TV base is facing some pressure, but we successfully mitigated this with a growing number of pay TV services in IPTV and OTT technologies. These new technologies are helping us offset the decline in traditional pay-TV services.

Next slide, please. Our view per contract B2C customer remains on a dynamic growth path, reflecting the success of our multiplay strategy and the strong demand for our services. In the fourth quarter of 2024 ARPU increased by 5.2% year-over-year, up to PLN 77.4.

Effective upselling of products to our existing and new customers is a strong driver of this increase and is reflected in the high level of RGU saturation per customer in the fourth quarter of 2024, it was 2.3 services per customer. Additionally, growing demand for data driven by the popularization of 5G tariffs is a positive factor for us.

As Mirek mentioned in the introduction, we acquired 5G frequencies, the C-band and the 700 megahertz, and we renewed the 2.6 gigahertz TDD frequency. All these frequencies will help us to improve both coverage and quality of our 5G network and will support our results going forward.

Next slide, please. In the prepaid segment, we provided 2.5 million services at the end of 2024. I want to emphasize that we have maintained a stable base of prepaid services in a highly competitive market. We focus on building ARPU. Despite a slight decrease in the base, we maintained a stable ARPU level of PLN 17.3 at the end of the fourth quarter. This is a good result, especially considering the fierce competition in this market segment.

Next slide, please. I'm also very pleased with our performance in the B2B segment in the fourth quarter of 2024. And the full year, as you can see, we consistently maintained a high and stable base over 68,000 B2B customers over the long term. At the same time, ARPU per B2B customer increased by 4.6%, close to 5% in the fourth quarter to PLN 1,530. This increase in ARPU highlights our commitment to delivering high-value tailored services to our business customers that meet their needs and expectations.

Before we move to the Green Energy, let me briefly sum up our results in the B2C and B2B services segment. This was a very good quarter and the entire year for us. We continue to grow, thanks to our multi-play strategy. ARPU growth is consistently high in our key customer groups 5.2% per B2C customer and 4.6% per B2B customer in the fourth quarter. Also, churn is consistently low and falling only 7% at the end of 2024. These results showcase our strategic goal, which is to build customer value and loyalty.

Can I have the next slide, please? Today, I'm very excited to share some remarkable achievements in our Green Energy segment. Only 3.5 years ago, in December 2021, we announced our ambitious Strategy 2023+, aiming to transform Polsat Plus Group into a leader in connectivity, content and clean energy. We set 2 new goals to become a leading producer of clean green energy and green hydrogen. This afternoon, I'm delighted to announce that we have successfully realized these objectives.

Can I have the next slide, please? We achieved our first goal. And today, we are a leading producer of clean green energy. We have 105-megawatt installed into biomass units and 82 megawatts completed in photovoltaic farms. Recognizing the potential of wind power, we decided to focus our investments in these renewable energy source, it will soon have nearly 300 megawatts installed, including our flagship Drzezewo wind farm with a capacity of 139 megawatts.

With these strategic investments, we are on track to reach over 1,700 gigawatt hours of clean energy production within just 5 years after announcing our strategy. To put this into perspective, 1,700 gigawatt hours represent approximately 1% of Poland's total energy consumption at truly remarkable achievement.

Furthermore, we will reach this milestone with lower investment costs that we initially projected by 2026 our investment expenditures will amount to about PLN 3.9 billion, which is PLN 1.1 billion less than our 2021 guidance.

Next slide, please. We have also reached our second major goal by establishing a complete green hydrogen value chain. Today, we produce green hydrogen using renewable energy, thanks to our 2.5 megawatts electrolyser in Konin, which can produce even 1,000 kilograms of green hydrogen every day, that's enough to refuel about 40, 50 NesoBuses daily. We are also working on 0.5 megawatts alkaline electrolyser, which will boost our hydrogen production capacity in the future.

We used hydrogen trialers to store and transport our hydrogen to our network of 6 publicly available hydrogen refueling stations across Poland. We have developed a hydrogen-powered bus, the NesoBus. Already 19 NesoBuses were sold or are contracted by various cities in Poland. Finally, we want to set a good example and decarbonize our car fleet at Polsat Plus Group by using 150 hydrogen-powered cars.

Just 3 years after announcing our Strategy 2023, we've established a fully operational green hydrogen chain. As we move forward, we'll be testing, optimizing and scaling it according to the market demand.

Next slide, please. Over the past year, we have recorded a dynamic growth in our green energy production driven by our expanding capacity for wind energy generation. In the fourth quarter of 2024, our green energy production increased by an impressive 64% year-over-year, reaching 295 gigawatt hours and the significant increase was the effect of commissioning of 123 megawatts at the Czluchow and Przyrow wind farms, but the successful and timely development of our wind projects not only highlights our commitment to sustainable energy but also shows our ability to execute large-scale projects efficiently.

For the entire year of 2024, our green energy production grew by 53% compared to the previous year, exceeding 1,000 gigawatt hours. It means we produced more than 1 terawatt hour of the green clean energy.

One of our most ambitious projects, the construction of the largest wind farm in Drzezewo with a capacity of 139 megawatts is progressing ahead of schedule. I would say we have already assembled 32 turbines out of 63. At this rate, we are likely to launch the first turbine in technical commissioning before the end of the second quarter, which means that this farm will start to generate revenue very soon.

Next slide, please. And now it's my great pleasure to report that in 2024, we have generated already PLN 282 million of EBITDA in our Green Energy segment. This is a very impressive result considering that it has only been 3.5 years since we started to build this business segment. In the fourth quarter of 2024, EBITDA of the Green Energy segment was PLN 79 million, this result was driven mainly by the expansion of our renewable energy capacity to 338 megawatts at the end of the year from 215 megawatts at the end of 2023.

Additionally, in 2024, we were able to secure favorable terms for the supply of biomass, and we also enjoyed a stable regulatory environment, which is very important in the energy sector.

As I have already mentioned, EBITDA for the full year amounted to PLN 282 million. Please remember that we started to consolidate our Green Energy segment since July 2023, so the results for the full year are not fully comparable.

Looking ahead to 2025, with the completion of the Drzezewo wind farm, we will double our installed capacity in wind power and this expansion will further support our EBITDA growth in the future and solidify our position in the renewable energy market.

Next slide, please. On this slide, I'm very pleased to present the progress we've made with our Strategy 2023+. I'm incredibly proud because today, we can say that we will successfully meet our ambitious target of PLN 500 million of EBITDA by 2026. We -- once more, we will achieve this target with lower CapEx. We will spend PLN 1.1 billion less than we assumed. Back in 2021, we announced that we want to generate PLN 500 million, PLN 600 million of incremental EBITDA annually from our new energy business in 2026. In 2024, we have already reached nearly PLN 300 million. With the contribution from Drzezewo wind farm I'm confident that in 2026, we will deliver the promised EBITDA of about PLN 500 million.

We estimate that in 2026, our energy production capabilities will reach 1.7 terawatt hours annually, representing approximately 1% of Poland's total energy consumption. Just 3 years after announcing the strategy, we already have assets that allowed us to produce over 1 terawatt hour of green energy in 2024.

We -- more importantly, we achieved all this with the lower investment expenditures. By the end of 2024, we have spent PLN 3.2 billion in total, and we anticipate that at the end of 2026, our CapEx for the development of this segment will settle at about PLN 3.9 billion, that is PLN 1.1 billion less than the originally assumed PLN 5 billion.

Ladies and gentlemen, this was my last slide. I would quickly like to sum up my part of the presentation. All our business segments performed very well, both in the fourth quarter and the full year 2024. In the B2C and B2B segment, we execute our long-term multiplay strategy centered around increasing customer value and customer loyalty, this is reflected in growing ARPU in our key customer segments and consistently low churn.

In the Media segment, we maintained very good viewership figures on a strongly fragmented market, and we have a solid position in TV advertising. We are also successfully building the position of Polsat-Interia Group, which is now a leading player in the online market.

And finally, in the Green Energy segment, we are finalizing our strategic investments, and this business segment is moving from the development phase to the business-as-usual phase. I'm extremely happy to confirm that in 2026, we will deliver on our promises by generating approximately PLN 500 million of EBITDA from our Energy segment using less CapEx by PLN 1.1 billion.

And that's all from me today. Thank you very much for your attention. Kacha, over to you.

[Katarzyna Ostap-Tomann, executive]

Thanks, Maciej. Welcome, everyone. Like Mirek and Maciej, I'm also extremely pleased with the result of the past year and the fourth quarter. Despite numerous challenges, we ended 2024 above expectations.

Next slide, please. This slide shows the key financial indicators for the fourth quarter and the entire year. As you can see, we have indeed achieved very good results. This is yet another quarter in which we report solid repeatable financial results, which makes me very, very happy. Revenue in the fourth quarter increased by 4% and for the entire year 2024 by nearly 5%. Adjusted EBITDA for onetime factors in the fourth quarter amounted to PLN 740 million, while for the entire year, it was at the level of PLN 3.3 billion. This means growth rates of nearly 10% in both unitized periods, which, in my opinion, is a great success.

We also see strong increases at the net profit level. In the fourth quarter, we recorded a net profit increase of nearly 29% to PLN 168 million, while the entire year closed with a net profit of almost PLN 800 million.

Next slide, please. Here, we have free cash flow, which after adjusting for green energy expenditures amounts to over PLN 1.3 billion. This indicates the group's high ability to generate cash. We will return to free cash flow on one of the next slides.

Net debt to EBITDA increased from 3.51x to just 3.59x despite huge investments in green energy during the year. This is an incredibly good result also in the terms of our debt. This is partly due to the very good EBITDA result, effective cash management at the group level and slightly different phasing of CapEx.

Please note that in 2025, we still have some expenses to complete the wind farm in Drzezewo. Therefore, I expect that the leverage might still increase before we move to the leveraging phase after completing the breast investments.

Next slide, please. Here, we see that the composition of revenue and EBITDA for the fourth quarter. First of all, I would like to draw your attention to the increasingly better results of the B2C and B2B services segment. Retail revenue from our customers is growing. And thanks to effective cost control, EBITDA in this segment is stabilizing.

In the fourth quarter, the Media segment was under pressure in terms of EBITDA results. This is mainly due to higher production costs. As you know, the fourth quarter is the quarter in which we broadcast the autumn scheduling. And additionally, we decided to write off some programming assets. We see a strong contribution of the Green Energy segment to EBITDA, PLN 81 million. Maciej has talked about this in detail on 1 of his slides and discuss the drivers.

As you might remember, during the last conference, I flagged that in the Real Estate segment, we will recognize much higher results in the fourth quarter. And as expected, you can see this contribution here. In the fourth quarter, we handed over a large pool of apartments from our completed investments in Port Praski to customers. In the first quarter of 2025, the contribution will be smaller as most of the apartments have already been handed over.

Next slide, please. Here, you can see the contribution of individual segments to the group's revenue and EBITDA for the entire 2024. Revenue growth of nearly 5% and an adjusted EBITDA of nearly 10% is mainly due to the energy segment. Please remember that 2023 and 2024 are not fully comparable as the consolidation of the new segment began in mid-2023. We -- the results of the Real Estate segment for the full year are largely the result of handing over the apartments to customers, as mentioned on the previous slide.

Also very good results in the Media segment. Revenue growth of PLN 22 million and EBITDA of PLN 14 million year-over-year. So we see here the effects of very good operational results, which Maciej talked about. As I mentioned in my previous slide, the B2B and B2C services segment is doing better and better. And here, the results are slowly stabilizing.

Next slide, please. Here, you can see our free cash flow. Despite the high level of interest costs, our free cash flow in 2024 adjusted for nonrecurring expenses and CapEx. For the development of the Green Energy segment amounted to over PLN 1.3 billion. This is a very good result that shows our potential to convert EBITDA into cash.

Interest and leasing costs, net of hedging instruments settled at the level of over PLN 1.4 billion. Of course, most of this position is interest costs, which are beyond our control and are determined by the decision of the National Bank of Poland.

You can also see the outflows for the reservation of telecommunication frequencies throughout the year. This amounted to PLN 550 million. Please remember that we obtained the reservation of 1 block in the 700 megahertz for PLN 263 million, and in the second quarter of this year, we will renew the reservation of frequencies in the 900 megahertz band. These 2 factors imply an outflow of nearly PLN 1 billion. Acquisitions amounting to just over PLN 200 million are the result of setting the transaction of acquiring shares in Pantanomo in 2023.

Next slide, please. We move on to discussing capital and investment expenditures. In the TMT area, the B2C and B2B services segment and the Media segment remains CapEx-light. Here, CapEx is at the level of about 6% of revenue, both in the fourth quarter and the entire year. In the fourth quarter, we spent nearly PLN 400 million on Green Energy and in the entire year 2024, nearly PLN 1 billion on investments in Green Energy. We are building according to the schedule and budget. And I would even say that the projects are being completed ahead of schedule.

In 2025, we are finishing the investment in Drzezewo and basically, from 2026, you should expect a significant reduction in investment expenditures in this segment because, as you know, investments in energy are characterized by very high capital intensity in the initial phase of implementation and after the firms are operational maintenance CapEx in the long term remains at a low level.

Next slide, please. The last slide shows the group's debt. As I mentioned, the net debt-to-EBITDA ratio is 3.59x in 2024, increasing only slightly despite high investments during the year. The weighted average cost of interest on loans and bonds is 8.3%, which is roughly the same as at the end of the previous year. In this slide, you can see the maturity of our debt at the end of 2024.

I would like to remind you that in the first quarter, after selling Asseco shares, we prepaid the nearest capital installments on the term loan. So that maturity will be different at the end of the first quarter. I'm very pleased that thanks to this, we will save around PLN 30 million on interest.

Ladies and gentlemen, I would like to conclude my part of the presentation. I'm very pleased with the financial results of our group in the fourth quarter and the entire year of 2024. I'm very happy with the consistent revenue growth and EBITDA result. We are approaching the end of investment in the development of the energy segment and moving to the monetization phase of these investments. This means that in the coming periods, this segment will increasingly contribute to the group's results.

Thank you very much for your attention, and I hand over to Mirek for the summary.

[Miroslaw Blaszczyk, executive]

Thank you, Kacha and Maciej. Before we move on to the Q&A session, I will briefly summarize 2024, represent our goals for 2025.

Next slide, please. We entered 2024 with very good operational results in each of our business segments and excellent financial results for the group. I'm extremely pleased and proud of our achievements in the past year.

In the B2C and B2B services segment, we constantly implement our multiplay strategy, building customer value and loyalty. This resulted in an increase in ARPU in the B2C and B2B customer groups and the churn rate decreased to just 7%. Additionally, we maintained a stable position in highly competitive prepaid service market. We consistently develop our networks, both mobile and fixed. The Plus 5G network is already available to 26 million people, which is 70% of Poland's population, and our fixed Internet service covers 11 million households.

In the Media segment, we maintained high and stable viewership results and a strong position in the advertising market in line with our strategy. Interia has positioned itself as a leader in the Internet market. With the attractive programming for our viewers in mind, we have strengthened our portfolio of sports rights.

In the Green Energy segment, we maintained our strategic goal of approximately PLN 500 million in EBITDA in 2026. But more importantly, with investment expenditures over PLN 1 billion and lower than originally planned. Thanks to the dynamic implementation of our energy investments, the installed capacity in wind farms increased to 150 megawatts, and we completed the green hydrogen value chain by starting the production of green hydrogen using our own electrolyzer.

I'm particularly pleased with the very good financial results of the group. We recorded strong growth in revenues and EBITDA, effectively managing our investment within the Strategy 2023+ and keeping costs under control. In summary, 2024 was an intensive year full of effort on our part to execute our strategic plans. Looking at the first month of 2025, I'm also optimistic about this year.

Next slide, please. In 2025, we intend to continue our long-term strategy of building value in each segment. In the B2C and B2B service area, we aim to further increase ARPU, while maintaining a low churn rate through our multiplay strategy. By integrating content, mobile Internet, fixed internet and telephone services, we provide our customers with a comprehensive and valuable offer. We will consistently expand our 5G network using the 3.6 gigahertz and 700 megahertz band to provide even faster and more reliable internal access to even more people in Poland.

In the Media segment, our priority remains to maintain high viewership results for our channels and the strong position in the TV advertising market. We aim to use our content to attract and retain reviewers, ensuring that our Media segment remains solid.

In the Green Energy segment, we will focus on completing the contraction and launching the Drzezewo wind farm. This time, we doubled our installed wind capacity to nearly 300 megawatts by the end of 2025, significantly increasing our green energy production capabilities. The strategic investment in this segment are almost completed and really focused on maximizing revenues from the sale of green energy.

In the finance area, we will continue to manage investments and control cost effectively. This will ensure financial discipline and support sustainable growth. At the same time, after completing the main strategic investments in the renewable energy, we want to focus on reducing the group's debt. To conclude our presentation, I think it is the perfect moment to remind you once again for our long-term strategy.

Next slide, please. Ladies and gentlemen, our operations are based on 3 key business pillars. In the telecommunication and content areas, we have been successfully implementing the multiplay strategy for many years. These are well-developed, stable segment that generates strong recurring cash flows. The construction of a new third pillar, Green Energy is slowly coming to an end, and we are smoothly transitioning to the monetization pace of our investments in this segment. All this, combined with cost discipline and maximizing cash flows allowed us to achieve our primary goal, which is to build the group's value for our shareholders.

Ladies and gentlemen, this concludes today's presentation. Thank you very much for your attention. We are now happy to answer your questions.

[Operator]

I have 3 questions in the Q&A panel. All of them come from Nora Nagy from Erste Group. I have 3 questions, if I may. The first one is which quarter can we expect the majority of the remaining expenditures on the Drzezewo wind farm?

[Katarzyna Ostap-Tomann, executive]

Cash outflow will be mainly second and third quarters of 2025.

[Operator]

Shall we expect further write-offs in the Media segment in the future?

[Katarzyna Ostap-Tomann, executive]

Not to this extent because always, there will be some small amount written off at the end of each year, but not in the amount of this year.

[Operator]

And Nora's last question. If the Polish Central Bank cuts the interest rate as expected by the market, can we expect CPS to refinance the existing debt?

[Katarzyna Ostap-Tomann, executive]

At the moment, we do not consider refinancing our existing debt.

[Operator]

That's all the questions I have in the chat section. So thank you very much for joining us today. And I pass the floor over to Mr. Blaszczyk.

[Miroslaw Blaszczyk, executive]

Thank you for participating in today's presentation of the operational and financial results of our group in 2024. I hope that we have answered all questions and you hope to hear from you at the presentation of the results of our group for the first quarter of 2025. Thank you, and have a nice day.

[Katarzyna Ostap-Tomann, executive]

Thank you. Bye-bye.

[Maciej Stec, executive]

Thank you. Bye-bye.