Dividend

Dividend policy of Cyfrowy Polsat S.A. for the years 2022-2024

The main goal of the strategy of Cyfrowy Polsat S.A. Capital Group (the “Group,” “Polsat Plus 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:

  • growth of revenue from services provided to individual and business customers through the consistent building of our customer base value by maximizing the number of users of our services as well as the number of services offered to each customer and simultaneously increasing average revenue per user (ARPU) and maintaining a high level of customer satisfaction;
  • growth of revenue from produced and purchased video content by expanding its distribution, including a search for new channels of exploitation of rights, maintaining the audience shares of channels produced by us;
  • use of opportunities arising from the advancing technological changes and market opportunities in order to expand the scope of our products and services;
  • building a position on the clean, renewable energy market, in particular from the sun, wind, biomass, thermal waste treatment and building a complete value chain of a hydrogen-based economy, which creates opportunities to build a new stream of revenues for Polsat Plus Group and will bring tangible social benefits in the form of greenhouse gas emissions reduction;
  • effective management of the cost base of our integrated capital group by exploiting its inherent synergies and economies of scale, and
  • effective management of the Group’s finances, including its capital resources.

Predictable dividend payouts to Shareholders is one of the main goals underlying the capital resources management policy of the Company. At the same time, bearing in mind the goal to achieve and maintain a low level of indebtedness, designated by the General Meeting of Shareholders in the Articles of Association of the Company (the “Target Leverage Ratio”), the Management Board of the Company is obligated to formulate the financial policy of Polsat Plus Group in such a way, so as to meet the expected Target Leverage Ratio.

In view of the above, the Management Board of the Company intends to present a proposal concerning dividend payout together with the Management Board’s recommendation to the General Meeting annually, subject to the observance of the following general principles:

  • the amount of a dividend paid out every year shall guarantee an attractive return on invested capital to the Company’s Shareholders;
  • 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;
  • the annually submitted proposal for distribution of the Company’s net profit for the previous financial year should allow for the continuation of gradual reduction of the net debt of Polsat Plus Group in order to achieve the Target Leverage Ratio.

In regard to the above, after having reviewed the investment plans of Polsat Plus Group and evaluated the possibilities of allocating the expected cash resources of the Group with an aim to pay out dividends to the Shareholders of the Company, in the years 2022-2024 the Management Board of the Company intends to recommend to the General Meeting dividend payout in the total amount of not less than PLN 3.00 per share in three installments as follows:

  • at least PLN 1.00 per share to be paid out from net profit generated in 2021;
  • at least PLN 1.00 per share to be paid out from net profit generated in 2022;
  • at least PLN 1.00 per share to be paid out from net profit generated in 2023.

Simultaneously, the Management Board underscores 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 within the framework of the Group’s strategy, one-off items, as well as valid legal regulations.

The dividend policy will be subject to regular verification by the Company’s Management Board. The new dividend policy will take effect from January 1, 2022.

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2020

Paid

2020Net profitDividendDividend per share Dividend dateDividend pay-out date

PLN

404,982,013.92

767,455,219.201

1.20 15 September 2021

28 September 2021 - 1st tranche
10 December 2021 - 2nd tranche

[1] In accordance with the resolution of the General Meeting, includes PLN 362,473,205.28 from the reserve capital created from profits earned in previous years.

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 04/04/2022