Polsat Plus sees pay TV base decline in mixed quarter

Polish service provider Polsat Plus saw its pay TV base decline by 3% in the year to March, falling to 4.8 million, while its mobile base rose slightly to 6.3 million and internet customers rose by 1% to two million.

The net result was a fall in overall subscriber numbers of 2% to just under 5.8 million. However, ARPU was up by 4.5% to PLN74.60.

Polsat Plus’s overall revenue-generating unit base was down 0.7% to 13.1 million.

The company blamed the decline in pay TV numbers – a loss of 147,000 year on year – to a drop in legacy satellite TV subscribers., a price ‘repositioning’ and change in the strategy of offering video online services.

The decline was partly offset by growth in IPTV and OTT subs.

Some 2.47 million customers, or 43% of the total base, now use Polsat Plus’s multiplay offering, with8 a total of 7.5 million services, up 47,000 year on year.

Overall group revenue for the first quarter was up 6% to PLN3.4 billion, less than the market consensus of PLN3.43 billion.

Polsat Plus beat market consensus on adjusted EBITDA, however, posting an increase of 2% to PLN772 million.

The increase in revenue was primarily down to recognition of revenue from supply of energy, which amounted to PLN282 million for the quarter. Retail revenue was up 2% thanks to higher ARPU bot from contract and prepaid customers, offset by a decline in revenue from the sale of equipment and lower wholesale revenue.

The rise in adjusted EBITDA was also boosted by Polsat Plus’ involvement in the supply of energy following its consolidation of PAK-PCE Group.

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