Key financial data

Income statement

(in millions of PLN) 20141)201520162)201720183)
Revenue 7,409.9 9,823.0 9,729.8 9,828.6 10,686.1
Retail revenue 5,084.7 6,553.1 6,325.3 6,067.9 6,092.6
Wholesale revenue 1,954.0 2,596.9 2,466.1 2,538.6 3,043.8
Sale of equipment 327.3 583.4 850.8 1,055.2 1,386.0
Other revenue 43.9 89.6 87.6 166.9 163.7
Operating costs (5,977.1) (7,867.9) (8,069.3) (8,015.9) (8,978.8)
Content costs (1,029.5) (1,065.9) (1,114.2) (1,153.6) (1,355.3)
Distribution, marketing, customer relation management and retention costs (612.7) (802.6) (827.8)

(894.3)

(933.9)

Depreciation, amortization, impairment and liquidation (1,295.9) (1,699.3) (1,971.5) (1,783.0) (1,970.7)
Technical costs and cost of settlements with telecommunication operators (1,412.4) (2,141.0) (1 938.7) (2,014.0) (2,448.9)
Salaries and employee-related costs (421.7) (550.2) (570.5) (553.1) (738.9)
Cost of equipment sold (925.2) (1,332.8) (1,354.7) (1,323.6) (1,174.2)
Cost of debt collection services and bad debt allowance and receivables written off (67.6) (62.6) (46.9) (67.4)

(83,9)

Other costs (212.1) (213.5) (245.0) (226.9) (273.0)
Other operating income, net 9.6 30.7 8.8 21.3 19.7
Profit from operating activities 1,442.4 1,985.8 1,669.3 1,834.0 1,727.0
Gain/loss on investment activities, net 15.2 8.6 (69.8) 7.2 (33.0)
Finance costs, net (1,146.0) (664.6) (566.1) (509.0) (386.7)
Share of the profit of jointly controlled entity accounted for using the equity method 2.6 2.6 - - -
Share of the profit of associates accounted for using the equity method - - - 2.8 (1.2)
Gross profit for the period 314.2 1,332.4 1,033.4 1,335.0 1,306.1
Income tax (21.7) (169.0) (12.4) (389.8) (490.0)
Net profit for the period 292.5 1,163.4 1,021.0 945.2 816.1
Net profit attributable to equity holders of the Parent 292.5 1,163.4 1,041.3 980.6

833.6

Net profit/(loss) attributable to non-controlling interest - - (20.3) (35.4) (17.5)
Basic and diluted earnings per share (in PLN) 0.54 1.82 1.60 1.48 1.28
EBITDA 2,738.3 3,685.1 3,640.8 3,617.0 3,697.7
EBITDA margin 37.0% 37.5% 37.4% 36.8% 34.6%

1) Consolidation of Metelem Holding Company Ltd. capital group from May 7, 2014
2) Consolidation of Litenite Ltd. capital group from February 29, 2016
3) Consolidation of Netia S.A. capital group from May 22, 2018

Balance sheet

ASSETS

(in millions of PLN) December 31,20141)December 31,2015December 31,20162)December 31,2017December 31,20183)
Reception equipment 421.1 371.0 350.9 325.3 264.5
Other property, plant and equipment 2,714.9 2,548.6 2,964.3 2,867.1 4,792.2
Goodwill 10,585.3 10,606.4 10,975.4 11,041.7 11,309.4
Customer relationships 4,255.8 3,638.5 3,031.2 2,557.3 2,212.2
Brands 2,085.9 2,080.6 2,056.5 2,037.1 2,096.1
Other intangible assets 2,591.4 2,422.2 3,656.2 3,261.5 3,005.5
Non-current programming assets 135.8 145.0 151.8 170.1 503.8
Investment property 5.3 5.2 5.1 5.1 29.9
Non-current deferred distribution fees 81.0 83.3 82.8 91.4 99.7
Other non-current assets 198.5 272.8 452.0 1,270.7 701.1
includes shares in associates accounted for using the equity method - - -

665.2

43.0

includes derivative instruments assets 1.2 6.9 9.5 1.9 -
Deferred tax assets 281.1 87.6 232.7 197.2 259.7
Total non-current assets 23,356.1 22,261.2 23,958.9 23,824.5 25,274.1
Current programming assets 152.1 192.2 192.0 251.7 543.2
Contract assets - - - - 648.4
Inventories 301.4 281.0 278.7 283.7 394.0
Trade and other receivables 1,453.4 1,619.1 1,688.0 1,983.2 2,370.4
Income tax receivable 26.0 0.7 29.1 1.3 34.6
Current deferred distribution fees 141.7 212.7 207.2 207.9 218.5
Other current assets 160.1 399.5 38.7 31.7 34.9
includes derivative instruments assets 22.2 10.5 6.7 5.1 -
Cash and cash equivalents 1,735.3 1,512.0 1,326.0 1,161.5 1,167.0
Restricted cash 12.6 11.7 10.7 10.5 11.7
Total current assets 3,982.6 4,228.9 3,770.4 3,931.5 5,422.7
TOTAL ASSETS 27,338.7 26,490.1 27,729.3 27,756.0 30,696.8

EQUITY AND LIABILITIES

(in millions of PLN) December 31, 20141)December 31, 2015December 31, 20162)December 31, 2017December 31, 20183)
Share capital 25.6 25.6 25.6 25.6 25.6
Share premium 7,174.0 7,174.0 7,174.0 7,174.0 7,174.0
Other reserves (12.2) (3.7) 4.5 3.2 (162.5)
Retained earnings 1,890.8 3,054.2 4,095.5 4,871.4 6,189.9
Equity attributable to equity holders of the Parent 9,078.2 10,250.1 11,299.6 12,074.2 13,227.0
Non-controlling interests - - 78.0 42.6 648.2
Total equity 9,078.2 10,250.1 11,377.6 12,116.8 13,875.2
Loans and borrowings 7,683.5 5,379.8 9,302.7 9,291.4 8,605.3
Issued bonds 4,550.2 975.3 1,835.7 975.7 976.0
Finance lease liabilities 11.7 20.9 20.9 18.6 15.8
UMTS license liabilities 750.3 652.8 574.0 440.8 348.2
Deferred tax liabilities 908.7 615.8 786.9 879.8 1,160.1
Deferred income 4.7 4.7 20.1 3.2 -
Other non-current liabilities and provisions 184.2 124.2 130.2 114.2 697.6
includes derivative instruments liabilities 40.1 - - - 165.2
Total non-current liabilities 14,093.3 7,773.5 12,670.5 11,723.7 11,803.0
Loans and borrowings 1,322.6 1,230.9 1,270.0 1,341.9 1,611.3
Issued bonds 464.4 4,776.7 42.4 42.5 42.3
Finance lease liabilities 6.8 4.3 5.0 9.7 8.2
UMTS license liabilities 117.1 117.0 121.5 114.5 118.1
Contract liabilities - - - - 705.2
Trade and other payables 1,523.0 1,485.4 1,569.5 1,727.3 2,382.4
includes derivative instruments liabilities 87.0 72.9 - 3.6 8.8
Income tax liability 48.0 176.1 24.9 61.3 151.1
Deposits for equipment 1.4 4) 4) 4) 4)
Deferred income 683.9 676.1 647.9 618.3 -
Total current liabilities 4,167.2 8,466.5 3,681,2 3,915.5 5,018.6
Total liabilities 18,260.5 16,240.0 16,351.7 15,639.2 16,821.6
EQUITY AND LIABILITIES 27,338.7 26,490.1 27,729.3 27,756.0 30,696.8

1) Consolidation of Metelem Holding Company Ltd. capital group from May 7, 2014
2) Consolidation of Litenite Ltd. capital group from February 29, 2016
3) Consolidation of Netia S.A. capital group from May 22, 2018
4) Item "Deposits for equipment" accounted for in item "Trade and other payables".

Cash flow statement

(in millions of PLN) 20141)201520162)201720183)
Net profit/(loss) 292.5 1,163.4 1,021.0 945.2 816.1
Adjustments for: 1,825.3 1,821.7 2,130.5 2,181.1 2,416.0
Depreciation, amortization, impairment and liquidation 1,295.9 1,699.3 1,971.5 1,783.0 1,970.7
Payments for film licenses and sports rights (306.8) (238.1) (246.5) (305.1) (363.5)
Amortization of film licenses and sports rights 224.4 212.6 230.7 228.6 337.0
(Gain)/loss on the sale of property, plant and equipment and intangible assets (2.9) (6.9) 4) 4) 4)
Cost of programming rights sold 30.5 1.4 4) 4) 4)
Interest expense 603.7 763.6 541.9 432.3 401.6
Change in inventories 0.5 26.4 3.0 (5.0) (77.2)
Change in receivables and other assets (191.9) (478.2) (329.9) (470.8) (289.1)
Change in liabilities, provisions and deferred income (277.7) (118.0) (33.3) 183.1 (44.2)
Change in contract assets - - - - 47.8
Change in contract liabilities - - - - 107.6
Change in internal production and advance payments (4.9) (3.9) (6.1) 3.9 4)
Valuation of hedging instruments (3.9) 6.6 9.8 4) 4)
Share of the profit of a joint venture accounted for using the equity method (2.6) (2.6) - 4) 4)
Share of the profit of associates accounted for using the equity method - - - (2.8) 1.2
Foreign exchange losses/(gains), net 369.9 222.0 270.9 (31.1) 15.8
Income tax 21.7 169.0 12.4 389.8 490.0
Net additions of reception equipment provided under operating lease (193.1) (134.7) (153.0) (137.5) (83.9)
Cumulative catch-up and early redemption costs 82.1 (371.4) - - -
Early redemption costs - - - 58.7 -
(Profit)/net loss on derivatives 84.3 53.0 (164.9) (1.5) 4)
Other adjustments 96.1 21.6 24.0 55.5 (97.8)
Cash from/(used in) operating activities 2,117.8 2,985.1 3,151.5 3,126.3 3,232.1
Income tax paid (189.1) (136.2) (292.7) (216.2) (343.2)
Interest received from operating activities 45.2 38.8 25.9 31.3 26.2
Net cash from/(used in) operating activities 1,973.9 2,887.7 2,884.7 2,941.4 2,915.1
Acquisition of property, plant and equipment (263.6) (417.8) (436.2) (524.8) (624.3)
Acquisition of intangible assets (71.8) (165.3) (154.2) (214.3) (304.1)
Acquisition of bonds - - - (9.3) (9.2)
Concession payments (482.3) (118.7) (268.5) (120.7) (119.6)
Acquisition of shares in associates - - - (662.5) (16.1)
Acquisition of subsidiaries, net of cash acquired 1,800.4 (29.5) (144.4) (66.8) (792.4)
Proceeds from sale of property, plant and equipment 4.1 16.9 9.5 19.3 11.6
Investment funds inflows/(outflows) - - - - 0.5
Repayment of loans granted - - 0.1 30.5 29.3
Granted loans (23.1) (16.1) (11.6) (31.1) (12.4)
Other investing activities - derivatives 6.6 3.9 (1.6) 7) 7)
Dividends received 2.5 - - - -
Other inflows/(outflows) - - 3.5 6.4 1.2
Net cash from/(used in) investing activities 972.8 (726.6) (1,003.4) (1,573.3) (1,835.5)
Loans and borrowings inflows 2,800.0 6,820.0 5,500.0 1,200.0 635.3
Repayment of loans and borrowings (1,087.1) (9,222.2) (1,940.9) (1,162.5) (1,282.2)
Bonds (redemption)/issue (2,275.9) 1,000.0 (4,484.0) (886.7) -
Payment of interest on loans, borrowings, bonds, finance lease and commissions4) (872.2) (978.9) (729.6) (409.9) (419.0)
Dividends paid (102.9) - - (204.7) -
Acquisition of bonds issued by Midas - - (323.6) - -
Early redemption fee - - (262.1) (58.7) -
Hedging instrument effect – principal - - 175.4 - -
Finance lease - principal repayments (0.9) (5.6) 6) 6) 6)
Other inflows/(outflows) - - (6.0) (5.2) (8.4)
Payment of share issuance-related consulting costs (3.9) - - - -
Net cash from/ (used in) financing activities (1,542.9) (2,386.7) (2,070.8) (1,527.7) (1,074.3)
Net increase/(decrease) in cash and cash equivalents 1,403.8 (225.6) (189.5) (159.6) 5.3
Cash and cash equivalents at the beginning of the period 342.2 1,747.9 1,523.7 1,336.7 1,172.0
Effect of exchange rate fluctuations on cash and cash equivalents 1.9 1.4 2.5 (5.1) 1.4
Cash and cash equivalents at the end of the period 1,747.9 1,523.7 1,336.7 1,172.0 1,178.7

1) Consolidation of Metelem Holding Company Ltd. capital group from May 7, 2014.
2) Consolidation of Litenite Ltd. capital group from February 29, 2016.
3) Consolidation of Netia S.A. capital group from May 22, 2018
4) Item included in "Other adjustments".
5) Includes impact of hedging instruments, premiums paid for early bonds’ repayment and amount paid for costs related to the new financing.
6) Finance lease - principal repayments was recognized in "Other inflows/(outflows).
7) Item included in item "Other inflows/(outflows)".

Financial ratios

20142015201620172018
EBITDA margin1) 37.0% 37.5% 37.4% 36.8% 34.6%
Net profit margin2) 3.9% 11.8% 10.5% 9.6% 7.6%
Return on assets (ROA)3) 1.1% 4.4% 3.7% 3.4% 2.7%
Return on equity (ROE)4) 3.3% 12.8% 9.9% 8.5% 6.2%
Current ratio5) 1.0 0.5 1.0 1.0 1.1
Debt ratio6) 66.8% 61.3% 59.0% 56.3% 54.3%

1) EBITDA/sales revenue
2) net profit/sales revenue
3) net profit/total assets
4) net profit/(equity-net profit)
5) current assets/current liabilities
6) total liabilities/total assets

Last updated 08/29/2019