Key financial data

Income statement

(in millions of PLN) 20161)201720182)201920202021
Revenue 9,729.8 9,828.6 10,686.1 11,676.1 11,962.9 12,444.0
Retail revenue 6,325.3 6,067.9 6,092.6 6,458.8 6,480.4 6,767.0
Wholesale revenue 2,466.1 2,538.6 3,043.8 3,350.2 3,526.7 3,678.8
Sale of equipment 850.8 1,055.2 1,386.0 1,585,0 1,596.7 1,450.3
Other revenue 87.6 166.9 163.7 282.1 359.1 547.9
Operating costs (8,069.3) (8,015.9) (8,978.8) (9,754.8) (10,073.8) (10,305.5)
Content costs (1,114.2) (1,153.6) (1,355.3) (1,658.5) (1,638.4) (1,826.9)
Distribution, marketing, customer relation management and retention costs (827.8)

(894.3)

(933.9)

(1,021.3)

(963.2)

(1,025.0)

Depreciation, amortization, impairment and liquidation (1,971.5) (1,783.0) (1,970.7) (2,229.7) (2,305.7) (1,903.2)
Technical costs and cost of settlements with telecommunication operators (1 938.7) (2,014.0) (2,448.9) (2,311.3) (2,460.9) (2,849.7)
Salaries and employee-related costs (570.5) (553.1) (738.9) (870.6) (905.9) (946.9)
Cost of equipment sold (1,354.7) (1,323.6) (1,174.2) (1,320.4) (1,338.2) (1,200.7)
Cost of debt collection services and bad debt allowance and receivables written off (46.9) (67.4)

(83,9)

(98.9)

(128.9)

(95.4)

Other costs (245.0) (226.9) (273.0) (244.1) (332.6) (457.7)
Gain on disposal of
a subsidiary
3,680.6
Other operating income/(cost), net 8.8 21.3 19.7 45.7 (2.9) (22.7)
Profit from operating activities 1,669.3 1,834.0 1,727.0 1,967.0 1,886.2 5,796.4
Profit/loss on investment activities, net (69.8) 7.2 (33.0) (27.0) (113.1) (26.9)
Finance costs, net (566.1) (509.0) (386.7) (465.9) (333.0) (178.8)
Share of the profit of associates accounted for using the equity method - 2.8 (1.2) (6.5) 2.0 75.4
Gross profit for the period 1,033.4 1,335.0 1,306.1 1,467.6 1,442.1 5,666.1
Income tax (12.4) (389.8) (490.0) (353,0) (295.9) (1,251.6)
Net profit for the period 1,021.0 945.2 816.1 1,114.6 1,146.2 4,414.5
Net profit attributable to equity holders of the Parent 1,041.3 980.6

833.6

1,100.6

1,141.6

4,408.8

Net profit/(loss) attributable to non-controlling interest (20.3) (35.4) (17.5) 14.0 4.6 5.7
Basic and diluted earnings per share (in PLN) 1.60 1.48 1.28 1,.4 1.79 6.95
EBITDA 3,640.8 3,617.0 3,697.7 4,196.7 4,191.9 7,699.6
EBITDA margin 37.4% 36.8% 34.6% 35.9% 35.0% 61.9%
EBITDA adjusted3) - - - - 4,237.8 4,019.0
EBITDA adjusted margin - - - - 35.4% 32.3%

1) Consolidation of Litenite Ltd. capital group from February 29, 2016
2) Consolidation of Netia S.A. capital group from May 22, 2018
3) Adjusted EBITDA excludes the one-off gain on disposal of shares in our subsidiary Polkomtel Infrastruktura Sp. z o.o. in 2021 as well as costs related to the COVID-19 epidemic, including donations, incurred in 2020

Balance sheet

ASSETS

(in millions of PLN) 31 December 20161)31 December 201731 December 20182)31 December 201931 December 202031 December 2021
Reception equipment 350.9 325.3 264.5 262.7 293.4 284.0
Other property, plant and equipment 2,964.3 2,867.1 4,792.2 4,976.9 5,391.0 3,326.9
Goodwill 10,975.4 11,041.7 11,309.4 11,336.4 11,808.4 10,802.0
Customer relationships 3,031.2 2,557.3 2,212.2 1,821.4 1,412.7 1,005.7
Brands 2,056.5 2,037.1 2,096.1 2,063.2 2,031.7 2,069.6
Other intangible assets 3,656.2 3,261.5 3,005.5 2,857.8 2,616.4 2,374.1
Right-of-use assets - - - 1,420.3 1,519.4 696.5
Non-current programming assets 151.8 170.1 503.8 402.6 282.5 739.4
Investment property 5.1 5.1 29.9 29.4 50.0 28.4
Non-current deferred distribution fees 82.8 91.4 99.7 100.5 93.5 73.5
Non-current trade receivables - - - 749.5 832.0 777.1
Other non-current assets 452.0 1,270.7 701.1 1,337.2 1,283.6 1,902.3
includes shares in associates accounted for using the equity method -

665.2

43.0

1,306.1

1,257.8

1,764.4

includes derivative instruments assets 9.5 1.9 - - 0.4 23.0
Deferred tax assets 232.7 197.2 259.7 243.2 223.2 80.2
Total non-current assets 23,958.9 23,824.5 25,274.1 27,318.9 27,837.8 24,159.7
Current programming assets 192.0 251.7 543.2 535.2 413.2 630.6
Contract assets - - 648.4 628.1 537.7 418.0
Inventories 278.7 283.7 394.0 398.3 299.4 595.7
Trade and other receivables 1,688.0 1,983.2 2,370.4 2,335.9 2,390.4 2,450.3
Income tax receivable 29.1 1.3 34.6 7.1 9.0 4.5
Current deferred distribution fees 207.2 207.9 218.5 222.1 222.4 226.8
Other current assets 38.7 31.7 34.9 72.3 39.3 107.1
includes derivative instruments assets 6.7 5.1 - 0,2 2,0 60.9
Cash and cash equivalents 1,326.0 1,161.5 1,167.0 1,130.6 1,355.4 3,632.4
Restricted cash 10.7 10.5 11.7 10.2 10.4 11.9
Total current assets 3,770.4 3,931.5 5,422.7 5,339.8 5,277.2 8,077.3
TOTAL ASSETS 27,729.3 27,756.0 30,696.8 32,658.7 33,115.0 32,237.0

EQUITY AND LIABILITIES

(in millions of PLN) 31 December 20161)31 December 201731 December 20182)31 December 201931 December 202031 December 2021
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 32.1
Other reserves 4.5 3.2 (162.5) 1.5 99.7 2,801.3
Retained earnings 4,095.5 4,871.4 6,189.9 6,610.2 7,112.3 7,823.6
Treasury shares (2,461.0)
Equity attributable to equity holders of the Parent 11,299.6 12,074.2 13,227.0 13,811.3 14,432.8 15,395.6
Non-controlling interests 78.0 42.6 648.2 653.2 (6.6) (11.0)
Total equity 11,377.6 12,116.8 13,875.2 14,464.5 14,426.2 15,384.6
Loans and borrowings 9,302.7 9,291.4 8,605.3 8,617.0 8,887.8 7,671.8
Issued bonds 1,835.7 975.7 976.0 969.2 1,959.2 1,942.1
Lease liabilities 20.9 18.6 15.8 1,023.8 1,140.5 497.5
UMTS license liabilities 574.0 440.8 348.2 236.9 136.7 -
Deferred tax liabilities 786.9 879.8 1,160.1 1,025.3 902.1 794.9
Deferred income 20.1 3.2 - - - -
Other non-current liabilities and provisions 130.2 114.2 697.6 384.7 388.1 319.8
includes derivative instruments liabilities - - 165.2 3.2 16.8 -
Total non-current liabilities 12,670.5 11,723.7 11,803.0 12,256.9 13,414.4 11,226.1
Loans and borrowings 1,270.0 1,341.9 1,611.3 1,892.5 753.0 1,072.7
Issued bonds 42.4 42.5 42.3 34.8 38.7 66.4
Lease liabilities 5.0 9.7 8.2 413.5 432.5 201.1
UMTS license liabilities 121.5 114.5 118.1 116.9 126.7 139.9
Contract liabilities - - 705.2 713.1 675.6 650.8
Trade and other payables 1,569.5 1,727.3 2,382.4 2,420.8 2,155.3 2,531.2
includes derivative instruments liabilities - 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 24.9 61.3 151.1 276.6 128.9 964.2
Deposits for equipment 3) 3) 3) 3) 3) 3)
Deferred income 647.9 618.3 - - - -
Total current liabilities 3,681,2 3,915.5 5,018.6 5,868.2 5,274.4 5,626.3
Total liabilities 16,351.7 15,639.2 16,821.6 18,125.1 18,688.8 16,852.4
EQUITY AND LIABILITIES 27,729.3 27,756.0 30,696.8 32,589.6 33,115.0 32,237.0

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) 20161)201720182)201920202021
Net profit/(loss) 1,021.0 945.2 816.1 1,114.6 1,146.2 4,414.5
Adjustments for: 2,130.5 2,181.1 2,416.0 2,663.3 2,651.7 (724.8)
Depreciation, amortization, impairment and liquidation 1,971.5 1,783.0 1,970.7 2,229.7 2,305.7 1,903.2
Payments for film licenses and sports rights (246.5) (305.1) (363.5) (617.3) (511.9) (645.0)
Amortization of film licenses and sports rights 230.7 228.6 337.0 543,6 519.6 558.8
(Gain)/loss on the sale of property, plant and equipment and intangible assets 3) 3) 3) 3) 3) 3)
Cost of programming rights sold 3) 3) 3) 3) 3) 3)
Interest expense 541.9 432.3 401.6 437.8 364.8 299.4
Change in inventories 3.0 (5.0) (77.2) 89.1 13.2 (295.4
Change in receivables and other assets (329.9) (470.8) (289.1) (311.8) 119.3 (25.7)
Change in liabilities, provisions and deferred income (33.3) 183.1 (44.2) (25.7) (401.3) (55.0)
Change in contract assets - - 47.8 9.7 101.0 119.7
Change in contract liabilities - - 107.6 7.9 (37.5) (30.6)
Change in internal production and advance payments (6.1) 3.9 3) 3) 3) 3)
Valuation of hedging instruments 9.8 3) 3) 3) 3) 3)
Share of the profit of a joint venture accounted for using the equity method - 3) 3) 3) 3) 3)
Share of the profit of associates accounted for using the equity method - (2.8) 1.2 6.5 (2.0) (75.4)
Foreign exchange losses/(gains), net 270.9 (31.1) 15.8 (4.8) 45.8 (1.9)
Income tax 12.4 389.8 490.0 353.0 295.9 1,251.6
Net additions of reception equipment provided under operating lease (153.0) (137.5) (83.9) (122.8) (147.1) (110.0)
Gain on the sale of shares in a subsidiary (3,680.6)
Cumulative catch-up and early redemption costs - - - - (44.8) -
Early redemption costs - 58.7 - - - -
(Profit)/net loss on derivatives (164.9) (1.5) 3) 3) 3) 3)
Other adjustments 24.0 55.5 (97.8) 68.4 31.0 62.1
Cash from/(used in) operating activities 3,151.5 3,126.3 3,232.1 3,777.9 3,797.9 3,689.7
Income tax paid (292.7) (216.2) (343.2) (328.5) (552.9) (463.0)
Interest received from operating activities 25.9 31.3 26.2 24.0 6.7 7.6
Net cash from/(used in) operating activities 2,884.7 2,941.4 2,915.1 3,473.4 3,251.7 3,234.3
Acquisition of property, plant and equipment (436.2) (524.8) (624.3) (852.6) (1,006.4) (924.1)
Acquisition of intangible assets (154.2) (214.3) (304.1) (379.0) (211.5) (234.7)
Acquisition of bonds - (9.3) (9.2) - (8.3) (27.8)
Concession payments (268.5) (120.7) (119.6) (122.4) (126.8) (159.4)
Acquisition of shares in associates - (662.5) (16.1) (1,232.5) (11.4) (500.0)
Acquisition of subsidiaries, net of cash acquired (144.4) (66.8) (792.4) (108.5) (479.2) (946.4)
Share capital increase - - - (16.3) -
Proceeds from sale of shares in subsidaries 7,111.9
Proceeds from sale of property, plant and equipment 9.5 19.3 11.6 6.8 8.4 5.7
Investment funds inflows/(outflows) - - 0.5 0.7 - -
Repayment of loans granted 0.1 30.5 29.3 0.7 - -
Granted loans (11.6) (31.1) (12.4) (21.4) (13.0) (64.9)
Other investing activities - derivatives (1.6) 6) 6) 6) 6) 6)
Dividends received - - - - 57.2 59.2
Bonds redemption with interest - - - 8.7 1.4 8.6
Other inflows/(outflows) 3.5 6.4 1.2 0.7 3.3 (0.2)
Net cash from/(used in) investing activities (1,003.4) (1,573.3) (1,835.5) (2,715.1) (1,786.3) 4,327.9
Loans and borrowings inflows 5,500.0 1,200.0 635.3 2,010.0 35.0 1,665.0
Repayment of loans and borrowings (1,940.9) (1,162.5) (1,282.2) (1,742.5) (857.9) (2,682.8)
Bonds (redemption)/issue (4,484.0) (886.7) - - 1,000.0 -
Payment of interest on loans, borrowings, bonds and commissions4) (729.6) (409.9) (419.0) (465.4) (315.3) (213.3)
Payment of interest on lease liabilities  - - - (47.6) (46.0) (32.4)
Dividends paid - (204.7) - (594.8) (232.5) (1,186.2)
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) 5) 5) (343.7) (399.2) (335.4)
Other inflows/(outflows) (6.0) (5.2) (8.4) (0.7) (40.1) (33.8)
Own shares buy-back (2,464.0)
Payment of share issuance-related consulting costs - - - - - -
Net cash from/ (used in) financing activities (2,070.8) (1,527.7) (1,074.3) (1,184.7) (856.0) (5,282.9)
Net increase/(decrease) in cash and cash equivalents (189.5) (159.6) 5.3 (426.4) 609.4 2,279.3
Cash and cash equivalents at the beginning of the period 1,523.7 1,336.7 1,172.0 1,178.7 753.1 1,365.8
Effect of exchange rate fluctuations on cash and cash equivalents 2.5 (5.1) 1.4 0.8 3.3 (0.8)
Cash and cash equivalents at the end of the period 1,336.7 1,172.0 1,178.7 753.1 1,365.8 3,644.3

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

201620172018201920202021
EBITDA margin1) 37.4% 36.8% 34.6% 35.9% 35.0% 61.9%
Net profit margin2) 10.5% 9.6% 7.6% 9.5% 9.6% 35.5%
Return on assets (ROA)3) 3.7% 3.4% 2.7% 3.4% 3.5% 13.7%
Return on equity (ROE)4) 9.9% 8.5% 6.2% 8.3% 8.6% 40.2%
Current ratio5) 1.0 1.0 1.1 0.8 1.0 1.4
Debt ratio6) 59.0% 56.3% 54.3% 55.6% 56.4% 52.3%

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 08/17/2022