Thursday, June 20, 2024

Deloitte: Poland enters the phase of economic expansion

The divergence of economic moods in Poland...

Two Years On: War in Ukraine and Its Global Impact

On February 24, 2022, a full-scale Russian...

Kino Polska Group Reports Strong Q1 2024 Financial Performance with 6.7% Revenue Growth

COMPANIESKino Polska Group Reports Strong Q1 2024 Financial Performance with 6.7% Revenue Growth
  • At the end of Q1 2024, Kino Polska Group recorded revenues of PLN 75.5 million (+6.7% YoY), primarily driven by increased advertising revenues on the Group’s channels.
  • The Group’s net profit amounted to PLN 18.7 million (+39.1% YoY), with an EBITDA of PLN 38.7 million (+23.3% YoY).
  • Net profitability increased to 24.8% compared to 19% the previous year.
  • Revenues from broadcasting decreased slightly by 2.3% YoY, accounting for 49.9% of the Group’s total sales. Advertising revenues increased by 34.4% YoY, making up 42.8% of total revenues.
  • International market revenues reached PLN 21.8 million (-6.6% YoY), constituting 28.9% of the Group’s total revenues.
  • EBITDA margin was 51.3% compared to 44.4% the previous year.
  • The average audience share of the Group’s channels in the commercial viewer segment was 2.70% (SHR%, All 16-59, Consolidated Live +2d. + OOH), a 5.1% increase YoY.

“We had a very good start to the year. In recent months, we introduced several changes – we modified the programming strategies of Stopklatka and Zoom TV channels and renegotiated new terms of cooperation with the advertising broker. As a result, we recorded increases in all key financial indicators. Our revenues grew by 6.7% YoY, and net profit by nearly 40% YoY. The increase in net profit was also driven by lower content purchase and production costs. We continued to produce foreign channels for the CANAL+ Group, which is also reflected in the results,” said Katarzyna Woźnicka, Management Board Member of Kino Polska Group, CFO, and COO at SPI International B.V.

Financial Results of Key Business Segments

At the end of Q1 2024, Kino Polska Group’s largest revenue increases were recorded in the Stopklatka segment (+PLN 3.7 million, +37.8% YoY), generating PLN 13.4 million from advertising sales. Zoom TV contributed PLN 7.4 million (+PLN 1.7 million, +30.8% YoY), while the Kino Polska Channels segment brought in PLN 9.3 million (+PLN 1.3 million, +16.9% YoY). The FilmBox brand film channels and thematic channels generated revenues of PLN 40.0 million (+PLN 0.3 million, +0.8% YoY).

The TV channel production segment’s revenues exceeded PLN 2 million in Q1 2024, up by PLN 0.4 million (+21.3% YoY), mainly due to the production of foreign channels for the CANAL+ Group. The license sales segment recorded sales of PLN 2.8 million (-50.6% YoY). The lower revenues are mainly due to the termination of the content purchase process by the subsidiary FilmBox UK in favor of an affiliated company outside the Group. The end of this activity is mainly visible in international market revenues but does not affect the operating result, as FilmBox UK purchased and sold content for a small fee.

As a result, international market revenues decreased by 6.6% YoY (-PLN 1.6 million), with a significant improvement in profitability in this area. The decrease in international revenues was also influenced by lower revenues from broadcasting thematic channels (e.g., Dizi) and lower advertising revenues in the Czech market.

Increased Viewership of Group Channels

The media market is currently characterized by significant changes, especially regarding TV consumption and its measurement methods. More viewers are recording content and watching it in a “Time Shifted” mode or outside the home. As a result of these changes, the OOH (out of home) measurement has been introduced in Poland. Media, including the broker servicing the Group, have adopted this form of TV data analysis for settlements and reporting. Consequently, the Group decided to change its viewership reporting from a “live” perspective to consolidated data, including a 2-day delay and OOH data. The viewership data for Kino Polska Group for Q1 2024 is fully comparable to the same period last year, as Q1 2023 data was also supplemented with OOH for analysis purposes.

At the end of Q1 2024, the total audience share of Kino Polska Group’s channels in the commercial viewer segment was 2.70%, an increase of 5.1% YoY (SHR%, All 16-59, Consolidated Live +2d. + OOH).

“This year, for some of our business segments, we started with historically highest results for the first quarter. For Stopklatka and Zoom TV, these results are close to the fourth quarter, the best in the TV industry. In recent months, we have carried out a series of intensive promotional activities aimed at increasing awareness of our program offering. We also applied new settlement rules with the advertising broker. We cooperated with cable and satellite operators to expand distribution and better position our channels in their offerings. In the first quarter, we also executed contracts with leading content providers, enriching our channels’ program offerings,” said Erwan Luherne, Management Board Member of Kino Polska Group and CEO of SPI International B.V.

Stopklatka achieved a commercial audience share of 1.26%, an increase of 5.0% YoY (SHR%, All 16-59, Consolidated Live +2d. +OOH). The viewership of the Group’s second terrestrial channel, Zoom TV, increased by 1.6% YoY to a 0.65% audience share (SHR%, All 16-59, Consolidated Live +2d. +OOH). The Kino Polska channel (0.41%), an increase of 2.5% YoY, and Kino Polska Muzyka (0.06%) maintained the same audience share as last year (SHR%, All 16-59, Consolidated Live +2d. +OOH). The Kino TV channel significantly improved its viewership. Its commercial audience share was 0.32% (SHR%, All 16-59, Consolidated Live +2d. +OOH), an increase of 23.1% YoY.

Check out our other content
Related Articles
The Latest Articles