Key financial data

Income statement

(in millions of PLN) 201520161)201720182)20192020
Revenue 9,823.0 9,729.8 9,828.6 10,686.1 11,676.1 11,962.9
Retail revenue 6,553.1 6,325.3 6,067.9 6,092.6 6,458.8 6,480.4
Wholesale revenue 2,596.9 2,466.1 2,538.6 3,043.8 3,350.2 3,526.7
Sale of equipment 583.4 850.8 1,055.2 1,386.0 1,585,0 1,596.7
Other revenue 89.6 87.6 166.9 163.7 282.1 359.1
Operating costs (7,867.9) (8,069.3) (8,015.9) (8,978.8) (9,754.8) (10,073.8)
Content costs (1,065.9) (1,114.2) (1,153.6) (1,355.3) (1,658.5) (1,638.4)
Distribution, marketing, customer relation management and retention costs (802.6) (827.8)

(894.3)

(933.9)

(1,021.3)

(963.2)

Depreciation, amortization, impairment and liquidation (1,699.3) (1,971.5) (1,783.0) (1,970.7) (2,229.7) (2,305.7)
Technical costs and cost of settlements with telecommunication operators (2,141.0) (1 938.7) (2,014.0) (2,448.9) (2,311.3) (2,460.9)
Salaries and employee-related costs (550.2) (570.5) (553.1) (738.9) (870.6) (905.9)
Cost of equipment sold (1,332.8) (1,354.7) (1,323.6) (1,174.2) (1,320.4) (1,338.2)
Cost of debt collection services and bad debt allowance and receivables written off (62.6) (46.9) (67.4)

(83,9)

(98.9)

(128.9)

Other costs (213.5) (245.0) (226.9) (273.0) (244.1) (332.6)
Other operating income, net 30.7 8.8 21.3 19.7 45.7 (2.9)
Profit from operating activities 1,985.8 1,669.3 1,834.0 1,727.0 1,967.0 1,886.2
Gain/loss on investment activities, net 8.6 (69.8) 7.2 (33.0) (27.0) (113.1)
Finance costs, net (664.6) (566.1) (509.0) (386.7) (465.9) (333.0)
Share of the profit of jointly controlled entity accounted for using the equity method 2.6 - - - - -
Share of the profit of associates accounted for using the equity method - - 2.8 (1.2) (6.5) 2.0
Gross profit for the period 1,332.4 1,033.4 1,335.0 1,306.1 1,467.6 1,442.1
Income tax (169.0) (12.4) (389.8) (490.0) (353,0) (295.9)
Net profit for the period 1,163.4 1,021.0 945.2 816.1 1,114.6 1,146.2
Net profit attributable to equity holders of the Parent 1,163.4 1,041.3 980.6

833.6

1,100.6

1,141.6

Net profit/(loss) attributable to non-controlling interest - (20.3) (35.4) (17.5) 14.0 4.6
Basic and diluted earnings per share (in PLN) 1.82 1.60 1.48 1.28 1,.4 1.79
EBITDA 3,685.1 3,640.8 3,617.0 3,697.7 4,196.7 4,191.9
EBITDA margin 37.5% 37.4% 36.8% 34.6% 35.9% 35.0%
EBITDA adjusted3) - - - - - 4,237.8
EBITDA adjusted margin - - - - - 35.4%

1) Consolidation of Litenite Ltd. capital group from February 29, 2016
2) Consolidation of Netia S.A. capital group from May 22, 2018
3) djusted EBITDA excludes costs related to the COVID-19 epidemic, including donations

Balance sheet

ASSETS

(in millions of PLN) 31 December 201531 December 20161)31 December 201731 December 20182)31 December 201931 December 2020
Reception equipment 371.0 350.9 325.3 264.5 262.7 293.4
Other property, plant and equipment 2,548.6 2,964.3 2,867.1 4,792.2 4,976.9 5,391.0
Goodwill 10,606.4 10,975.4 11,041.7 11,309.4 11,336.4 11,808.4
Customer relationships 3,638.5 3,031.2 2,557.3 2,212.2 1,821.4 1,412.7
Brands 2,080.6 2,056.5 2,037.1 2,096.1 2,063.2 2,031.7
Other intangible assets 2,422.2 3,656.2 3,261.5 3,005.5 2,857.8 2,616.4
Right-of-use assets - - - - 1,420.3 1,519.4
Non-current programming assets 145.0 151.8 170.1 503.8 402.6 282.5
Investment property 5.2 5.1 5.1 29.9 29.4 50.0
Non-current deferred distribution fees 83.3 82.8 91.4 99.7 100.5 93.5
Non-current trade receivables - - - - 749.5 832.0
Other non-current assets 272.8 452.0 1,270.7 701.1 1,337.2 1,283.6
includes shares in associates accounted for using the equity method - -

665.2

43.0

1,306.1

1,257.8

includes derivative instruments assets 6.9 9.5 1.9 - - 0.4
Deferred tax assets 87.6 232.7 197.2 259.7 243.2 223.2
Total non-current assets 22,261.2 23,958.9 23,824.5 25,274.1 27,318.9 27,837.8
Current programming assets 192.2 192.0 251.7 543.2 535.2 413.2
Contract assets - - - 648.4 628.1 537.7
Inventories 281.0 278.7 283.7 394.0 398.3 299.4
Trade and other receivables 1,619.1 1,688.0 1,983.2 2,370.4 2,335.9 2,390.4
Income tax receivable 0.7 29.1 1.3 34.6 7.1 9.0
Current deferred distribution fees 212.7 207.2 207.9 218.5 222.1 222.4
Other current assets 399.5 38.7 31.7 34.9 72.3 39.3
includes derivative instruments assets 10.5 6.7 5.1 - - -
Cash and cash equivalents 1,512.0 1,326.0 1,161.5 1,167.0 1,130.6 1,355.4
Restricted cash 11.7 10.7 10.5 11.7 10.2 10.4
Total current assets 4,228.9 3,770.4 3,931.5 5,422.7 5,339.8 5,277.2
TOTAL ASSETS 26,490.1 27,729.3 27,756.0 30,696.8 32,658.7 33,115.0

EQUITY AND LIABILITIES

(in millions of PLN) 31 December 201531 December 20161)31 December 201731 December 20182)31 December 201931 December 2020
Share capital 25.6 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 7,174.0
Share of other comprehensive income of associates - - - - - 21.2
Other reserves (3.7) 4.5 3.2 (162.5) 1.5 99.7
Retained earnings 3,054.2 4,095.5 4,871.4 6,189.9 6,610.2 7,112.3
Equity attributable to equity holders of the Parent 10,250.1 11,299.6 12,074.2 13,227.0 13,811.3 14,432.8
Non-controlling interests - 78.0 42.6 648.2 653.2 (6.6)
Total equity 10,250.1 11,377.6 12,116.8 13,875.2 14,464.5 14,426.2
Loans and borrowings 5,379.8 9,302.7 9,291.4 8,605.3 8,617.0 8,887.8
Issued bonds 975.3 1,835.7 975.7 976.0 969.2 1,959.2
Lease liabilities 20.9 20.9 18.6 15.8 1,023.8 1,140.5
UMTS license liabilities 652.8 574.0 440.8 348.2 236.9 136.7
Deferred tax liabilities 615.8 786.9 879.8 1,160.1 1,025.3 902.1
Deferred income 4.7 20.1 3.2 - - -
Other non-current liabilities and provisions 124.2 130.2 114.2 697.6 384.7 388.1
includes derivative instruments liabilities - - - 165.2 3.2 16.8
Total non-current liabilities 7,773.5 12,670.5 11,723.7 11,803.0 12,256.9 13,414.4
Loans and borrowings 1,230.9 1,270.0 1,341.9 1,611.3 1,892.5 753.0
Issued bonds 4,776.7 42.4 42.5 42.3 34.8 38.7
Lease liabilities 4.3 5.0 9.7 8.2 413.5 432.5
UMTS license liabilities 117.0 121.5 114.5 118.1 116.9 126.7
Contract liabilities - - - 705.2 713.1 675.6
Trade and other payables 1,485.4 1,569.5 1,727.3 2,382.4 2,420.8 2,155.3
includes derivative instruments liabilities 72.9 - 3.6 8.8 8.3 39.2
Liabilities to shareholders of the Parent Company related to dividend for 2019 - - - - - 415.7
Liabilities due to tender offer for shares in Netia S.A. - - - - - 548.0
Income tax liability 176.1 24.9 61.3 151.1 276.6 128.9
Deposits for equipment 3) 3) 3) 3) 3) 3)
Deferred income 676.1 647.9 618.3 - - -
Total current liabilities 8,466.5 3,681,2 3,915.5 5,018.6 5,868.2 5,274.4
Total liabilities 16,240.0 16,351.7 15,639.2 16,821.6 18,125.1 18,688.8
EQUITY AND LIABILITIES 26,490.1 27,729.3 27,756.0 30,696.8 32,589.6 33,115.0

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

Cash flow statement

(in millions of PLN) 201520161)201720182)20192020
Net profit/(loss) 1,163.4 1,021.0 945.2 816.1 1,114.6 1,146.2
Adjustments for: 1,821.7 2,130.5 2,181.1 2,416.0 2,663.3 2,651.7
Depreciation, amortization, impairment and liquidation 1,699.3 1,971.5 1,783.0 1,970.7 2,229.7 2,305.7
Payments for film licenses and sports rights (238.1) (246.5) (305.1) (363.5) (617.3) (511.9)
Amortization of film licenses and sports rights 212.6 230.7 228.6 337.0 543,6 519.6
(Gain)/loss on the sale of property, plant and equipment and intangible assets (6.9) 3) 3) 3) 3) 3)
Cost of programming rights sold 1.4 3) 3) 3) 3) 3)
Interest expense 763.6 541.9 432.3 401.6 437.8 364.8
Change in inventories 26.4 3.0 (5.0) (77.2) 89.1 13.2
Change in receivables and other assets (478.2) (329.9) (470.8) (289.1) (311.8) 119.3
Change in liabilities, provisions and deferred income (118.0) (33.3) 183.1 (44.2) (25.7) (401.3)
Change in contract assets - - - 47.8 9.7 101.0
Change in contract liabilities - - - 107.6 7.9 (37.5)
Change in internal production and advance payments (3.9) (6.1) 3.9 3) 3) 3)
Valuation of hedging instruments 6.6 9.8 3) 3) 3) 3)
Share of the profit of a joint venture accounted for using the equity method (2.6) - 3) 3) 3) 3)
Share of the profit of associates accounted for using the equity method - - (2.8) 1.2 6.5 (2.0)
Foreign exchange losses/(gains), net 222.0 270.9 (31.1) 15.8 (4.8) 45.8
Income tax 169.0 12.4 389.8 490.0 353.0 295.9
Net additions of reception equipment provided under operating lease (134.7) (153.0) (137.5) (83.9) (122.8) (147.1)
Cumulative catch-up and early redemption costs (371.4) - - - - (44.8)
Early redemption costs - - 58.7 - - -
(Profit)/net loss on derivatives 53.0 (164.9) (1.5) 3) 3) 3)
Other adjustments 21.6 24.0 55.5 (97.8) 68.4 31.0
Cash from/(used in) operating activities 2,985.1 3,151.5 3,126.3 3,232.1 3,777.9 3,797.9
Income tax paid (136.2) (292.7) (216.2) (343.2) (328.5) (552.9)
Interest received from operating activities 38.8 25.9 31.3 26.2 24.0 6.7
Net cash from/(used in) operating activities 2,887.7 2,884.7 2,941.4 2,915.1 3,473.4 3,251.7
Acquisition of property, plant and equipment (417.8) (436.2) (524.8) (624.3) (852.6) (1,006.4)
Acquisition of intangible assets (165.3) (154.2) (214.3) (304.1) (379.0) (211.5)
Acquisition of bonds - - (9.3) (9.2) - (8.3)
Concession payments (118.7) (268.5) (120.7) (119.6) (122.4) (126.8)
Acquisition of shares in associates - - (662.5) (16.1) (1,232.5) (11.4)
Acquisition of subsidiaries, net of cash acquired (29.5) (144.4) (66.8) (792.4) (108.5) (479.2)
Share capital increase - - - - (16.3) -
Proceeds from sale of property, plant and equipment 16.9 9.5 19.3 11.6 6.8 8.4
Investment funds inflows/(outflows) - - - 0.5 0.7 -
Repayment of loans granted - 0.1 30.5 29.3 0.7 -
Granted loans (16.1) (11.6) (31.1) (12.4) (21.4) (13.0)
Other investing activities - derivatives 3.9 (1.6) 6) 6) 6) 6)
Dividends received - - - - - 57.2
Bonds redemption with interest - - - - 8.7 1.4
Other inflows/(outflows) - 3.5 6.4 1.2 0.7 3.3
Net cash from/(used in) investing activities (726.6) (1,003.4) (1,573.3) (1,835.5) (2,715.1) (1,786.3)
Loans and borrowings inflows 6,820.0 5,500.0 1,200.0 635.3 2,010.0 35.0
Repayment of loans and borrowings (9,222.2) (1,940.9) (1,162.5) (1,282.2) (1,742.5) (857.9)
Bonds (redemption)/issue 1,000.0 (4,484.0) (886.7) - - 1,000.0
Payment of interest on loans, borrowings, bonds and commissions4) (978.9) (729.6) (409.9) (419.0) (465.4) (315.3)
Payment of interest on lease liabilities  - - - - (47.6) (46.0)
Dividends paid - - (204.7) - (594.8) (232.5)
Acquisition of bonds issued by Midas - (323.6) - - - -
Early redemption fee - (262.1) (58.7) - - -
Hedging instrument effect – principal - 175.4 - - - -
Lease - principal repayments (5.6) 5) 5) 5) (343.7) (399.2)
Other inflows/(outflows) - (6.0) (5.2) (8.4) (0.7) (40.1)
Payment of share issuance-related consulting costs - - - - - -
Net cash from/ (used in) financing activities (2,386.7) (2,070.8) (1,527.7) (1,074.3) (1,184.7) (856.0)
Net increase/(decrease) in cash and cash equivalents (225.6) (189.5) (159.6) 5.3 (426.4) 609.4
Cash and cash equivalents at the beginning of the period 1,747.9 1,523.7 1,336.7 1,172.0 1,178.7 753.1
Effect of exchange rate fluctuations on cash and cash equivalents 1.4 2.5 (5.1) 1.4 0.8 3.3
Cash and cash equivalents at the end of the period 1,523.7 1,336.7 1,172.0 1,178.7 753.1 1,365.8

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 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

201420152016201720182019
EBITDA margin1) 37.0% 37.5% 37.4% 36.8% 34.6% 35.9%
Net profit margin2) 3.9% 11.8% 10.5% 9.6% 7.6% 9.5%
Return on assets (ROA)3) 1.1% 4.4% 3.7% 3.4% 2.7% 3.4%
Return on equity (ROE)4) 3.3% 12.8% 9.9% 8.5% 6.2% 8.3%
Current ratio5) 1.0 0.5 1.0 1.0 1.1 0.8
Debt ratio6) 66.8% 61.3% 59.0% 56.3% 54.3% 55.6%

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 11/10/2021