Consolidated income statement
| (in millions of PLN) | for the year ended | |
|---|---|---|
| December 31, 2015 | December 31, 2014 | |
| Revenue | 9 823.0 | 7 409.9 |
| Retail revenue | 6 553.1 | 5 084.7 |
| Wholesale revenue | 2 596.9 | 1 954.0 |
| Sale of equipment | 583.4 | 327.3 |
| Other revenue | 89.6 | 43.9 |
| Operating costs | (7 867.9) | (5 977.2) |
| Content costs | (1 065.9) | (1 029.6) |
| Distribution. marketing, customer relation management and retention costs | (802.6) | (612.6) |
| Depreciation. amortization, impairment and liquidation | (1 699.3) | (1 295.8) |
| Technical costs and cost of settlementswith telecommunication operators | (2 141.0) | (1 412.5) |
| Salaries and employee-related costs | (550.2) | (421.8) |
| Cost of equipment sold | (1 332.8) | (925.2) |
| Cost of debt collection services and bad debt allowance and receivables written off | (62.6) | (67.6) |
| Other costs | (213.5) | (212.1) |
| Other operating income, net | 30.7 | 9.6 |
| Profit from operating activities | 1 985.8 | 1 442.3 |
| Gain/loss on investment activities, net | 8.6 | 15.3 |
| Finance costs | (664.6) | (1 146.1) |
| Share of the profit of a joint venture accounted for using the equity method | 2.6 | 2.7 |
| Gross profit for the period | 1 332.4 | 314.2 |
| Income tax | (169.0) | (21.7) |
| Net profit for the period | 1 163.4 | 292.5 |
| Net profit attributable to equity holders of the Parent | 1 163.4 | 292.5 |
| Basic and diluted earnings per share (in PLN) | 1.82 | 0.54 |
| EBITDA | 3 685.1 | 2 738.1 |
| EBITDA margin | 37.5% | 37.0% |
Segments
| (in millions of PLN) | Segment of services to individual and business customers | Broadcasting and television production segment | Consolidation adjustments | Total | ||||
|---|---|---|---|---|---|---|---|---|
| for the year ended | for the year ended | for the year ended | for the year ended | |||||
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2015 | Dec 31, 2014 | |
| Revenues from sales to third parties | 8 675.5 | 6 289.8 | 1 147.5 | 1 120.1 | - | - | 9 823.0 | 7 409.9 |
| Inter-segment revenues | 33.7 | 36.3 | 152.4 | 138.0 | (186.1) | (174.3) | - | - |
| Revenues | 8 709.2 | 6 326.1 | 1 299.9 | 1 258.1 | (186.1) | (174.3) | 9 823.0 | 7 409.9 |
| EBITDA | 3 240.0 | 2 334.0 | 445.1 | 404.3 | - | - | 3 685.1 | 2 738.3 |
| Depreciation, amortization, impairment and liquidation | 1 660.5 | 1 259.3 | 38.8 | 36.6 | - | - | 1 699.3 | 1 295.9 |
| Profit from operating activities | 1 579.5 | 1 074.7 | 406.3 | 367.7 | - | - | 1 985.8 | 1 442.4 |
| Acquisition of property, plant and equipment, reception equipment and other intangible assets | 688.31) | 488.61) | 31.9 | 41.8 | - | - | 720.2 | 530.4 |
| Balance as at December 31 | ||||||||
| Assets, including: | 22 110.8 | 23 202.3 | 4 421.82) | 4 233.83) | (42.5) | (54.9) | 26 490.1 | 27 381.2 |
| Investments in joint ventures | - | - | 5.9 | 3.2 | - | - | 5.9 | 3.2 |
1) This item also includes the acquisition of reception equipment for operating lease purposes.
2) Includes non-current assets located outside of Poland in the amount of PLN 15.9 million.
3) Includes non-current assets located outside of Poland in the amount of PLN 40.5 million.
Consolidated balance sheet
| in millions of PLN | 31 December 2015 | 31 December 2014 restated 1) |
|---|---|---|
| ASSETS | ||
| Reception equipment | 371.0 | 421.1 |
| Other property, plant and equipment | 2 548.6 | 2 714.9 |
| Goodwill | 10 606.4 | 10 585.3 |
| Customer relationships | 3 638.5 | 4 255.8 |
| Brands | 2 080.6 | 2 085.9 |
| Other intangible assets | 2 422.2 | 2 591.4 |
| Non-current programming assets | 145.0 | 135.8 |
| Investment property | 5.2 | 5.3 |
| Non-current deferred distribution fees | 83.3 | 81.0 |
| Other non-current assets | 272.8 | 198.5 |
| includes derivative instruments assets | 6.9 | 1.2 |
| Deferred tax assets | 87.6 | 281.1 |
| Total non-current assets | 22 261.2 | 23 356.1 |
| Current programming assets | 192.2 | 152.1 |
| Inventories | 281.0 | 301.4 |
| Trade and other receivables | 1 619.1 | 1 453.4 |
| Income tax receivables | 0.7 | 26.0 |
| Current deferred distribution fees | 212.7 | 141.7 |
| Other current assets | 399.5 | 160.1 |
| includes derivative instruments assets | 10.5 | 22.2 |
| Cash and cash equivalents | 1 512.0 | 1 735.3 |
| Restricted cash | 11.7 | 12.6 |
| Total current assets | 4 228.9 | 3 982.6 |
| TOTAL ASSETS | 26 490.1 | 27 338.7 |
| EQUITY AND LIABILITIES | ||
| Share capital | 25.6 | 25.6 |
| Share premium | 7 174.0 | 7 174.0 |
| Other reserves | (3.7) | (12.2) |
| Retained earnings | 3 054.2 | 1 890.8 |
| Equity attributable to equity holders of the Parent | 10 250.1 | 9 078.2 |
| Total equity | 10 250.1 | 9 078.2 |
| Loans and borrowings | 5 379.8 | 7 683.5 |
| Issued bonds | 975.3 | 4 550.2 |
| Finance lease liabilities | 20.9 | 11.7 |
| UMTS license liabilities | 652.8 | 750.3 |
| Deferred tax liabilities | 615.8 | 908.7 |
| Deferred income | 4.7 | 4.7 |
| Other non-current liabilities and provisions | 124.2 | 184.2 |
| includes derivative instruments liabilities | - | 40.1 |
| Total non-current liabilities | 7 773.5 | 14 093.3 |
| Loans and borrowings | 1 230.9 | 1 322.6 |
| Issued bonds | 4 776.7 | 464.4 |
| Finance lease liabilities | 4.3 | 6.8 |
| UMTS license liabilities | 117.0 | 117.1 |
| Trade and other payables | 1 485.4 | 1 524.4 |
| includes derivative instruments liabilities | 72.9 | 87.0 |
| Income tax liability | 176.1 | 48.0 |
| Deferred income | 676.1 | 683.9 |
| Total current liabilities | 8 466.5 | 4 167.2 |
| Total liabilities | 16 240.0 | 18 260.5 |
| EQUITY AND LIABILITIES | 26 490.1 | 27 338.7 |
1) Restatement due to final purchase price allocation of Metelem.
Consolidated cash flow statement
| (in millions of PLN) | for the year ended | |
|---|---|---|
| December 31, 2015 | December 31, 2014 | |
| Net profit | 1 163.4 | 292.5 |
| Adjustments for: | 1 821.7 | 1 825.3 |
| Depreciation, amortization, impairment and liquidation | 1 699.3 | 1 295.9 |
| Payments for film licenses and sports rights | (238.1) | (306.8) |
| Amortization of film licenses and sports rights | 212.6 | 224.4 |
| (Gain)/loss on the sale of property, plant and equipment and intangible assets | (6.9) | (2.9) |
| Cost of programming rights sold | 1.4 | 30.5 |
| Interest expense | 763.6 | 603.7 |
| Change in inventories | 26.4 | 0.5 |
| Change in receivables and other assets | (478.2) | (191.9) |
| Change in liabilities, provisions and deferred income | (118.0) | (277.7) |
| Change in internal production and advance payments | (3.9) | (4.9) |
| Valuation of hedging instruments | 6.6 | (3.9) |
| Share of the profit of a joint venture accounted for using the equity method | (2.6) | (2.6) |
| Foreign exchange losses/(gains), net | 222.0 | 369.9 |
| Income tax | 169.0 | 21.7 |
| Net additions of reception equipment provided under operating lease | (134.7) | (193.1) |
| Early redemption costs | 244.8 | 82.1 |
| Cumulative catch-up | (616.2) | - |
| Net loss on derivatives | 53.0 | 84.3 |
| Other adjustments | 21.6 | 96.1 |
| Cash from/ (used in) operating activities | 2 985.1 | 2 117.8 |
| Income tax paid | (136.2) | (189.1) |
| Interest received from operating activities | 38.8 | 45.2 |
| Net cash from/(used in) operating activities | 2 887.7 | 1 973.9 |
| Acquisition of property. plant and equipment | (417.8) | (263.6) |
| Acquisition of intangible assets | (165.3) | (71.8) |
| Concession payments | (118.7) | (482.3) |
| Acquisition of subsidiaries net of cash acquired | (29.5) | 1 800.4 |
| Proceeds from sale of property, plant and equipment | 16.9 | 4.1 |
| Granted loans | (16.1) | (23.1) |
| Other investing activities - derivatives | 3.9 | 6.6 |
| Dividends received | - | 2.5 |
| Net cash from/ (used in) investing activities | (726.6) | 972.8 |
| Repayment of loans and borrowings | (9 222.2) | (1 087.1) |
| Loans and borrowings inflows | 6 820.0 | 2 800.0 |
| Bonds issue/(Bonds repayment) | 1 000.0 | (2 275.9) |
| Finance lease - principal repayments | (5.6) | (0.9) |
| Payment of interest on loans. borrowings, bonds, Cash Pool, finance lease and commissions 1) | (978.9) | (872.2) |
| Dividends paid | - | (102.9) |
| Payment of share issuance-related consulting costs | - | (3.9) |
| Net cash from/ (used in) financing activities | (2 386.7) | (1 542.9) |
| Net increase/(decrease) in cash and cash equivalents | (225.6) | 1 403.8 |
| Cash and cash equivalents at the beginning of the period | 1 747.9 | 342.2 |
| Effect of exchange rate fluctuations on cash and cash equivalents | 1.4 | 1.9 |
| Cash and cash equivalents at the end of the period | 1 523.7 | 1 747.9 |
1) Includes impact of hedging instruments, premium paid for early bonds’ repayment and amount paid for costs related to new financing
Consolidated Statement of Changes in Equity for the year ended 31 December 2015
| in millions of PLN | Number of shares | Share capital | Share premium | Other reserves | Retained earnings* | Equity attributable to equity holders of the Parent | Total equity |
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2015 | 639 546 016 | 25.6 | 7 237.4 | (12.2) | 1 890.8 | 9 141.6 | 9 141.6 |
| Restatement resulting from purchase price allocation of Metelem** | - | - | (63.4) | - | - | (63.4) | (63.4) |
| Balance as at 1 January 2015 restated** | 639 546 016 | 25.6 | 7 174.0 | (12.2) | 1 890.8 | 9 078.2 | 9 078.2 |
| Total comprehensive income | - | - | - | 8.5 | 1 163.4 | 1 171.9 | 1 171.9 |
| Hedge valuation reserve | - | - | - | 5.5 | - | 5.5 | 5.5 |
| Actuarial gain | - | - | 3.0 | - | 3.0 | 3.0 | |
| Net profit for the period | - | - | - | - | 1 163.4 | 1 163.4 | 1 163.4 |
| Balance as at 31 December 2015 | 639 546 016 | 25.6 | 7 174.0 | (3.7) | 3 054.2 | 10 250.1 | 10 250.1 |
* The capital excluded from distribution amounts to PLN 8.5 million as at 31 December 2015 and 2014. In accordance with the provisions of the Commercial Companies Code, joint-stock companies are required to transfer at least 8% of their annual net profits to reserve capital until its amount reaches one third of the amount of their share capital.
** Restatement resulting from final purchase price allocation of Metelem. The amount also includes share issuance-related costs.
