Dividend

Dividend policy 

On March 15 2019 the Management Board of the Company adopted a new dividend policy of the Company, worded as follows:

“The main goal of the strategy of Cyfrowy Polsat S.A. Capital Group (the “Group,” “Polsat Group”) is the permanent growth of the value of Cyfrowy Polsat S.A. (the “Company”) for its shareholders. We intend to achieve this goal by implementing the major elements of our operational strategy which include:

1. growth of revenue from services provided to residential and business customers through consistent building of the value of our customer base by maximizing the number of users of our services as well as the number of services offered to each customer while simultaneously increasing average revenue per user (ARPU) and maintaining high levels of customer satisfaction,

2. growth of revenue from produced and purchased content by expanding its distribution, maintaining the audience shares of our channels and improving our viewer profile,

3. effective management of the cost base of our integrated media and telecom group by exploiting its inherent synergies and economies of scale, and

4. effective management of the Group’s finances, including its capital resources.

Predictable dividend payout to shareholders is one of the main goals underlying the capital resources management policy of Cyfrowy Polsat S.A. At the same time, bearing in mind the strategy of deleveraging of the Group, the Management Board has set the desirable consolidated debt level, as measured by the net debt/EBITDA ratio, which should be reduced to below the threshold of 1.75x.

In view of the above, the Management Board of Cyfrowy Polsat S.A. has adopted a resolution regarding the dividend policy which assumes that dividend payout proposals, along with the Management Board’s recommendations, will be presented every year to the General Meeting, subject to the observance of the following general principles:

1. the amount of a dividend paid out every year shall guarantee the Company’s shareholders an attractive return from invested capital;

2. the level of the obtained return shall be shaped in relation to the commonly available on the Polish market forms of safe investing of funds, in particular in relation to the level of bank deposits rates, while taking into account a risk premium associated with floating of Cyfrowy Polsat’s share prices on the Warsaw Stock Exchange;

3. in parallel, a yearly submitted proposal for distribution of the Group’s net profit for the previous financial year should allow for the continuation of gradual reduction of Cyfrowy Polsat Group’s net debt in order to achieve the desired ratio of net debt to EBITDA at the level below 1.75x.

Simultaneously, the Management Board of Cyfrowy Polsat S.A. reviewed the plans of Cyfrowy Polsat Capital Group and evaluated possibilities of allocating the expected cash resources of the Group with an aim to pay out a stable and predictable dividend stream to its shareholders in medium term. Based on the conducted analysis, the Management Board intends to recommend for 2019-2021 the dividend payout in the total amount of not less than PLN 2.79 per share in three equal installments as follows:

1. at least PLN 0.93 per share to be paid out in 2019;

2. at least PLN 0.93 per share to be paid out in 2020;

3. at least PLN 0.93 per share to be paid out in 2021.

In parallel, the Management Board notes that every time when presenting a proposal for distribution of the profit for the previous year it will take into account the Group’s net profit, financial standing and liquidity, existing and future liabilities (including potential restrictions related to facility agreements and other financial documents), the assessment of the Group’s prospects in specific market and macroeconomic conditions, potential necessity of spending funds for the Group’s development, in particular through acquisitions and embarking on new projects, one-off items, as well as valid legal regulations.

The dividend policy will be subject to regular verification by the Company’s Management Board. In particular, the Management Board expects modification to the aforementioned dividend policy following the refinancing of Polsat Group’s debt which is expected in 2022.

The new dividend policy will take effect from April 1, 2019.”

The payout at the level of PLN 0.93 per share generates an annual return rate of approximately 4% as compared to the average capitalization of the Company in December 2018. Thus, in the Management Board’s opinion, it meets the general principles of the dividend policy presented above and the expectations of the majority shareholder of Cyfrowy Polsat, expressed in the letter received from Mr. Zygmunt Solorz on February 7, 2019 (see the Company’s current report No. 4/2019 dated February 7, 2019). Simultaneously, in the Management Board’s opinion the above mentioned schedule and amounts of dividend payouts shall not interrupt the development concept of Cyfrowy Polsat Capital Group, enabling at the same time its further deleveraging.

History of profit distribution

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2019

Paid

2019Net profitDividendDividend per share Dividend dateDividend pay-out date

PLN

586,802,125.73 639,546,016.001  1.00 15 October 2020

22 October 2020 - 1st tranche
11 January 2021 - 2nd tranche

[1] In accordance with the resolution of the General Meeting, includes PLN 52,743,890.27 from the reserve capital created from profits earned in previous years.

2018

Paid

2018Net profitDividendDividend per share Dividend dateDividend pay-out date

PLN

488,520,113.73 594,777,794.881  0.93 1 July 2019

3 July 2019  - 1st tranche
1 October 2019 - 2nd tranche

[1] In accordance with the resolution of the General Meeting, includes PLN 106,257,681.15 from the reserve capital created from profits earned in previous years.

2017

Without dividend (allocated to reserve capital)*

2017Net ProfitDividendDividend per shareDividend dateDividend pay-out date
PLN 605,963,020.33 0 0 - -

*The justification for the resolution of the AGM held on June 28, 2018 - Taking into consideration the strategic investments made by the Company and some of its subsidiaries in 2017 and 2018, which ensure the continuation of the development of the capital group of the Company (the “Group”) in the long term in accordance with its key strategic goal to sustainably grow the Company’s value for its shareholders as well as bearing in mind a relatively high level of the Group‘s indebtedness, the Management Board of the Company decided not to recommend a dividend payment from the profit for 2017. In the opinion of the Management Board, this will allow to reduce the indebtedness level of the Group, in line with the adopted strategic assumptions, and with the goal of the capital resources management policy in particular, which is to reduce in a possibly short time the total net debt ratio for the Group (net debt to EBITDA) below 1.75x. In parallel, the Management Board of the Company confirms the dividend policy adopted on November 8, 2016. Taking into account the above, the Management Board, acting pursuant to article 382 § 3 of the Commercial Companies Code and article 19 item 2(a) of the Company’s Articles of Association, recommends to allocate the entire profit earned by the Company in the financial year ended December 31, 2017, amounting to PLN 605,963,020.33 (say: six hundred five million nine hundred sixty three thousand twenty zlotys and thirty three grosze) to the reserve capital.

2016

Paid

2016Net ProfitDividendDividend per shareDividend dateDividend pay-out date
PLN 577.955.495,16 204,654,725.12  0.32 20 July 2017 3 August 2017

2015

Without dividend (allocated to reserve capital)*

2015Net ProfitDividendDividend per shareDividend dateDividend pay-out date
PLN 446,146,891.55 0 0 - -

*The justification for the resolution of the AGM held on June 29, 2016 - Considering the relatively high level of the current indebtedness of the capital group of the Company, the Management Board of the Company consistently aims for its reduction. In accordance with the adopted assumptions, the strategic goal of the capital resources management policy is the reduction of the total net indebtedness ratio of the Company's capital group, i.e. net debt to EBITDA, below the level of 1.75 as fast as possible. The rapid achievement of the goal would allow for a revision of the dividend policy and the return to regular payouts of part of the generated profit starting from the year 2017.

2014

Without dividend (allocated to reserve capital)*

2014Net ProfitDividendDividend per shareDividend dateDividend pay-out date
PLN 177,213,590.79 0 0 - -

*The justification for the resolution of the AGM held on April 2, 2015 - In accordance with the dividend policy of the Company, adopted on January 22, 2014, of which the Company informed in current report no. 7/2014 dated January 23, 2014, the Management Board of the Company shall submit a proposal to the General Meeting for the distribution of dividends provided that the total indebtedness ratio of the Company's capital group, i.e. net debt to EBITDA as at the end of the financial year to which the profit distribution refers is less than 2.5x. Bearing in mind the existing obligation of the Company’s capital group, the aim of the Management Board of the Company is to reduce the level of indebtedness as fast as possible in order to achieve the level of the net debt/EBITDA ratio anticipated in the dividend policy in the shortest term possible.

2013

Paid

2013Net ProfitDividendDividend per shareDividend dateDividend pay-out date
PLN 429,012,674.99  102,859,516.76 0.26 22 May 2014 6 June 2014

2012

Without dividend (allocated to reserve capital)*

2012Net ProfitDividendDividend per shareDividend dateDividend pay-out date
PLN 529,837,249.45 0 0 - -

*The justification for the resolution of the AGM held on June 11, 2013 - The Management Board's recommendation concerning the distribution of the profit is justified by one of the strategic objectives of the Company, that is lowering the Company's indebtedness, arisen due to the acquisition of Telewizja Polsat by the Company, in the shortest possible term. According to the loan agreements, consistent reduction of the level of the Company's debt ahead of schedule, and thereby reduction of the net debt/EBITDA ratio, will result in both reduction of nominal principal payments and interest charges, which will have a positive impact on the Company's financial standing in future periods.

2011

Without dividend (allocated to reserve capital and to cover losses from previous years)*

2011Net ProfitDividendDividend per shareDividend dateDividend pay-out date
PLN 156,092,789.88 0 0 - -

*The justification for the resolution of the AGM held on June 5, 2012 - The decision of the Management Board concerning the distribution of the profit was based on one of the strategic objectives of the Company, which is lowering the Company's indebtedness, arisen due to the acquisition of Telewizja Polsat by the Company, in the shortest possible term. Consistent reduction of the level of the Company's debt and thereby reduction of the net debt/EBITDA ratio, according to the loan agreements will reduce interest charges and thus will have a positive impact on the Company's financial standing in future periods.

2010

Without dividend (allocated to reserve capital)*

2010Net ProfitDividendDividend per shareDividend dateDividend pay-out date
PLN 884,165,232.13 0 0 - -

*The justification for the resolution of the AGM held on May 19, 2011 - The Management Board justifies its recommendation by the need of future service of the debt incurred by the Company to purchase 100% shares of Telewizja Polsat S.A. The reduction of indebtedness of the Company, planned by the Management Board, and thereby reduction of the net debt/EBITDA ratio, will reduce interest charges arising from the signed loan agreements, and thus will have a positive impact on the Company's financial standing.

2009

Paid

2009Net ProfitDividendDividend per shareDividend dateDividend pay-out date
  232,040,914.16 152,945,250.00 0.57 19 July 2010  
I installment   101,963,500.00 0.38 19 July 2010 11 August 2010
II installment   50,981,750.00 0.19 19 July 2010 17 November 2010

2008

Paid

2008Net ProfitDividendDividend per shareDividend dateDividend pay-out date
  271,277,066.74 201,243,750.00 0.75 1 June 2009  
I installment   134,162,500.00 0.50 1 June 2009 16 June 2009
II installment   67,081,250.00 0.25 1 June 2009 21 October 2009

2007

Paid

2007Net ProfitDividendDividend per shareDividend dateDividend pay-out date
  115,038,239.62 37,565,500.00 0.14 18 July 2008 5 August 2008 
Last updated 09/16/2020