Cyfrowy Polsat SA

WSE:CPS

Earnings Call Analysis

Polsat Plus Group Reports Strong Q3 Growth and Solid Future Outlook

In Q3 2024, Polsat Plus Group achieved a 3.6% revenue increase and a remarkable 12.7% rise in adjusted EBITDA, driven by a 5% growth in B2C ARPU and a 4% increase in B2B ARPU. The green energy segment excelled, with EBITDA reaching PLN 82 million, maintaining guidance for PLN 500-600 million incremental EBITDA by 2026. The company expanded its 5G network and acquired exclusive Formula 1 broadcasting rights. With a net debt-to-EBITDA ratio at 3.4%, financial health remains stable, supporting continued customer value growth and a promising outlook for 2024.

Strong Performance Amidst Competition

In the third quarter of 2024, Polsat Plus Group demonstrated resilience in a competitive market, achieving a 3.6% year-over-year growth in retail revenues, primarily fueled by a 5% increase in average revenue per user (ARPU) for B2C customers and a 4% increase for B2B customers. Additionally, the company's churn rate reduced to a low 7.2%, indicating increased customer loyalty and satisfaction, crucial for sustaining growth moving forward. This solid operational performance comes as the group executes its Strategy 2023+, focusing on both growth and cost management.

Significant Boost in EBITDA

The adjusted EBITDA of Polsat Plus grew 12.7% year-over-year, reaching impressive levels. This increase can be attributed to robust financial results and strict cost control measures implemented as part of their strategic initiative. The overall net profit for the third quarter reached PLN 250 million, boasting a significant decline in depreciation and amortization costs, indicating efficient asset utilization and operational scaling.

Expansion in the Green Energy Segment

The Green Energy segment is emerging as a major growth driver for Polsat Plus. In the third quarter alone, this segment achieved an EBITDA of PLN 82 million, contributing to a total of over PLN 200 million for the first nine months of 2024. The company is on track to meet its guidance for this segment, projecting an incremental EBITDA range of PLN 500 million to PLN 600 million by 2026. The significant investments in renewable energy, including wind farms and hydrogen production facilities, are set to enhance both operational capacities and financial performance.

Strategic Acquisitions and Content Expansion

Polsat Plus has strengthened its content portfolio by acquiring exclusive broadcasting rights to the Formula 1 Grand Prix from 2025 to 2028, along with high-profile football leagues like the Bundesliga and Ligue 1. This diversification is crucial for enhancing audience engagement and attracting advertising revenue. The advertising revenue for the group increased by 3% in a period where the TV advertising market expanded by 7.5%, indicating strategic investments in content are paying off.

Robust Market Position and Future Outlook

Despite ongoing challenges, including competition in the advertising market and a decrease in viewership for particular sporting events, Polsat Plus maintained a market share of 28% in TV advertising by the end of September 2024, bolstered by solid viewership figures across their channels. The commitment to reinforcing their multiplay strategy, enhancing customer loyalty, and continuous investment in technology—such as the expansion of their 5G network—positions them favorably for sustained growth. Management has shown optimism for the following quarters, anticipating an increase in overall EBITDA for 2024, signaling a positive long-term outlook.

Sustainable Financial Health

The company's net debt-to-EBITDA ratio stands at a manageable 3.4%, with expectations that this ratio will not exceed 4.0 in the near term. This reflects a balanced approach to leverage and financial management. The free cash flow generation has also shown strength, amounting to PLN 1.1 billion in the last twelve months, which supports ongoing investments and operational resilience against macroeconomic pressures.

Earnings Call Transcript 2024-Q3

[Operator]

Ladies and gentlemen, good afternoon, and welcome to the Earnings Call of Polsat Plus Group for the Third Quarter of 2024. Could I have the next slide, please? Today's presentation will be delivered to you by Mr. Miroslaw Blaszczyk, CEO of Cyfrowy Polsat; Mr. Maciej Stec, Vice President responsible for Strategy; Ms. Katarzyna Ostap-Tomann, CFO and Management Board member responsible for ESG.

As usual, after the presentation, we will hold a Q&A session. I encourage you to post your questions in the chat section in advance. Thank you. Mr. Blaszczyk, the floor is yours.

[Miroslaw Blaszczyk, executive]

Good afternoon, ladies and gentlemen, and welcome. The agenda of today's meeting is as follows. I will open the presentation with the key events of the third quarter of 2024. After that, Maciej will present the operating results of our business segments, and Kacha will present our financial results. After a short summary, we will be happy to answer your questions. Next slide, please.

Key events of the past quarter. Let's go to the next slide. I'm very pleased to say that in the third quarter of 2024, we maintained a high growth rate of ARPU in a competitive market. ARPU per B2C customer grew by 5%, while ARPU per B2B customer grew by 4%. As a result, our core revenue stream, retail revenues recorded an increase by 3.6% year-over-year. The third quarter were also an excellent quarter in terms of our financial results. We posted a 12.7% increase in adjusted EBITDA. This was driven by the implementation of our Strategy 2023+ and by strong operating performance and cost control.

In an effort to provide the highest quality of services, we expanded our 5G+ network to over 3,800 transmitters. Today, over 25 million people in Poland are within the reach of our 5G network, while 60 million can use the 5G Ultra network, which offers transfer speed comparable to optic fiber. We also focused on strengthening the content offer for our viewers. In particular, we acquired exclusive broadcasting rights to the Formula 1 Grand Prix races in the years 2025 to 2028.

We are also moving forward dynamically with the execution of our Strategy 2023. In the third quarter of 2024, we completed the installation of our 2.5 megawatt electrolyzer located in Konin and started test production of green hydrogen. This is a big milestone for us in the development of the complete value chain of an economy based on green hydrogen.

We also won 2 new tenders for the supply of our hydrogen-powered buses, the NesoBus. Konin contracted 5 buses, while the Upper Silesian Metropolitan area placed an order for 8 buses. This brings the total of hydrogen buses sold up to 69 units, which is a very impressive result. These were the main highlights of the past quarter. Maciej will now present the details of our operating performance. Maciej, the floor is yours.

[Maciej Stec, executive]

Thanks, Mirek. Today, it will be my pleasure to present the results of all our operating segments, starting with the Media segment, TV and Online. Let's move on the next slide, please. Here, we have the viewership results of our TV channels and our position in the advertising market in the third quarter of 2024.

In the beginning of the third quarter, we had accumulation of highly popular sporting events. There were the UEFA European championships and soon after that, the Olympic Games in Paris. Our competitors held broadcasting rights to both these events, and this had an impact on our operating results in the Media segment in Q3, particularly in terms of slower growth in TV advertising.

We are very pleased with our viewership figures, which were relatively stable compared to last year, considering the popularity of the UEFA Euro matches and the Olympics. And our main channel, Polsat, recorded 6.7% of audience shares, while our group of thematic channels had 15% in the commercial target group. This gave TV Polsat Group a total of 21.7% in the third quarter, and this result is aligned with our long-term strategy. In terms of market expenditures on TV advertising and sponsorship, the broad market recorded a solid increase of 7.5%, while our advertising revenue increased by 3% in the third quarter, giving us market share of 27.6%.

Let's move on the next slide and look at our performance in the first 9 months of 2024. As I mentioned, it's always better to analyze the TV market over a longer time horizon because it helps to smooth out seasonal effects such as the accumulated impact of sporting events that I talked about before. Our position in terms of audience shares in 9 months is also very good.

Our entire portfolio of channels maintained high stable audience shares of 21.8%, where our main channel had 7%, while our thematic channels had 14.8%. These viewership figures translated into a solid growth of our TV advertising revenue by 5.2% year-on-year to PLN 965 million. At the same time, the market increased by over 7% as a result of our share in the TV advertising and sponsorship market settled at 28% after 9 months of 2024. At the same time, the market increased by over 7% as a result of our share in the TV advertising and sponsorship, markets settled at 28% after 9 months of 2024.

Let's move on. The online business, can I have the next slide, please? We are effectively building our position in the online market. Polsat Interia Group is one of the 3 largest players in this market in Poland. In the third quarter of 2024, the average monthly number of users reached 19.4 million, and the number of page views exceeded 1.8 billion. As you can see, all the players recorded slightly lower results compared to the last year, and this is the result of a change in the methodology of measuring performance in the online market. I'm particularly happy with Polsat Interia Group's successes in 2024. This year, we secured a top position in the mobile category for 7 out of 10 months. What's more, in October, Polsat Interia Group ranked second in terms of reach among online portals with only a slight loss to the leading position.

Can I have the next slide, please? Our autumn schedules are going according to the plan, and we are satisfied with viewing figures. But what is very important for us, we are strengthening the offer of our sports channels, which are the key for our whole group. As you can see on this slide, we have an extensive portfolio of diverse sports rights to meet the different expectations of our viewers. As Mirek said in the introduction, we are very proud that we have recently acquired rights to the most exciting and widely viewed Formula 1 races. We also have a strong position in football. Apart from UEFA Europa League and Conference League, we will also broadcast one of the best football leagues in Europe like Spanish La Liga and Italian Serie A.

And we have also bought the rights to the German Bundesliga and the French Ligue 1. Apart from the new sport rights, we offer a vast amount of other sporting events, tennis, football, volleyball, basketball or ice hockey. All this is available to our customers on 11 dedicated sports channels, Polsat's sport channels and 11 sports channels and can be accessed on any device.

To sum up the performance in the Media segment, we posted good results in terms of audience shares in both the third quarter and the first 9 months of 2024, in line with our long-term strategy. We maintain a strong position on a growing TV advertising market despite the temporary headwinds. We continue to strengthen our position in the online market by developing our online leg of the business.

Next slide, please. Let's now have a look at the operating results of the B2C and B2B services segment. Can I have the next slide, please? In this segment, we continue to focus on the efficient and consistent implementation of our multiplay strategy. Our main goal is building customer value and customer loyalty.

Our performance in this area is best demonstrated by the continued growth of our multiplay customer base and its share in the total customer base. Already 2.5 million customers, that is 43% of all our customers use 2 or more of our products. The number of services contracted by this group reached 7.6 million services in the third quarter of 2024, up by 202,000 compared to last year.

As I said, the successful implementation of our multiplay strategy also results in strong customer loyalty. This can be seen in a consistently low level of churn. At the end of the third quarter, churn decreased to 7.2%. We believe that further saturation of the customer base with bundled services will support keeping the churn rate low in the future.

Can I have the next slide, please? We have recorded a good quarter in terms of contracted RGUs. We already provide over 13.1 million contract RGUs to our B2C customers, 75,000 more than a year ago. This was driven particularly by very good sales of mobile voice services, up by 165,000 to 6.4 million. The number of Internet access services grew to 2.1 million, recording an increase of 79,000 year-on-year.

What's more important, we are steadily increasing share of fixed Internet access services. At the same time, the pay TV base remains under pressure from a lower number of satellite TV services provided and fading out of the low-margin IPLA product. We mitigate these trends by an increasing number of pay TV services provided in IPTV and OTT technology.

Next slide, please. Average revenue per contract B2C customer remains on a dynamic growth path, recording an increase by 5% year-over-year. At the end of the third quarter, it reached the level of PLN 77.2. The saturation of our customer base with the services is steadily growing and reached the level of 2.28 services per customer at the end of the third quarter.

I believe these figures reflect the successful execution of our multiplay strategy based on cross-selling and upselling our products. ARPU was also supported by the growing demand for data due to the popularization of 5G. I'm especially pleased with the evolution of ARPU in a challenging macroeconomic environment and continued pressure on the customer.

Next slide, please. In the prepaid segment, we provided 2.6 million services at the end of the third quarter. I would like to underline that we maintain a high and stable base in a highly competitive market segment despite a slightly lower base ARPU per prepaid services remained stable at PLN 17.8, which is, in my opinion, very good result in the prepaid market.

Next slide, please. In the B2B segment, as in all other customer segments, we focus on building customer value and foster customer satisfaction and loyalty. Thanks to this approach, ARPU per B2B customer increased by 4% year-on-year, exceeding PLN 1,500. We maintain a stable base of over 68,000 B2B customers, and I'm very satisfied with these results because the B2B market is highly competitive in Poland.

Before we move to green energy, let me briefly sum up our results in the B2C and B2B services segment. This was a very good quarter for us. We are consistently growing our multiplay customer base and our RGU base increased by 75,000 year-on-year. I'm also extremely pleased with ARPU and churn, which reflect our efforts targeted at building customer value and loyalty. ARPU in both B2C and B2B is growing at a healthy pace, 5% and 4%, respectively, while ARPU in prepaid remains high in a competitive form of environment. At the same time, churn decreased to only 7.2%.

Next slide, please. We are dynamically progressing with the implementation of our Strategy 2023+. The contribution of the Green Energy segment to our group is already significant, but it will continue to grow over time. Next slide, please. We already have over 337 megawatts installed in all our renewable units, out of which 150 megawatts is in wind power capacity, the most efficient and the cheapest renewable energy source. We are currently focused on finishing our biggest wind project, Drze?ewo with over 138 megawatts of capacity.

Regarding the green hydrogen value chain, as Mirek mentioned earlier, I'm pleased to announce that our 2.5-megawatt PEM electrolyzers has started test production. As a reminder, this unit has the capacity to produce 1,000 kilograms of green hydrogen per day. Also, our 0.5 megawatt alkaline electrolyzers designed from the scratch and capable of producing 200 kilograms of hydrogen daily is in the final testing phase.

Additionally, we launched our fourth publicly accessible hydrogen refueling station in Gdynia. Two more stations in [ Wroclaw ] and Lublin are almost completed, and we plan to open them by the end of this year. We are preparing for the construction of more stations with the support of EU funding. 30 of our NesoBuses are already in use in public transportation in Rybnik and Gdansk and another 39 units are contracted by [indiscernible] and GZM Metropolis in Upper Silesia.

Next slide, please. As you can see on this slide, the implementation of our renewable energy projects, especially wind farms, translates into dynamic increases in production of clean green energy. In the third quarter, we already produced more than 300 gigawatt hours of electricity from our all renewable sources, up by 57% year-on-year. Since the beginning of 2024, total production amounted to 722 gigawatt hours. That is 49% more than a year ago.

The main growth driver was the increase in wind generation capacity. As I already mentioned, our priority at the moment is the completion of the Drze?ewo wind farm with 139 megawatts of capacity. This project will double our wind power by the end of next year. The construction of this wind farm is progressing according to the schedule, and we will start installing turbines from the beginning of 2025.

Next slide, please. The increase in production is directly reflected in the financial results of the Green Energy segment. In the third quarter of 2024, we sold over 300 gigawatt hours of clean energy that we produced ourselves for an average price of PLN 594 per megawatt hour. In 9 months of 2024, we sold PLN 722 gigawatt hours of energy products for an average price of PLN 600 per megawatt hour.

As a result, the Green Energy segment generated PLN 82 million of EBITDA in the third quarter of 2024 alone, while in 9 months of 2024, EBITDA exceeded PLN 200 million. I'm extremely pleased with this result. I would like to remind you that we guided for PLN 500 million, PLN 600 million of incremental EBITDA per year from the green energy business in 2026, and we are on track to deliver this promise.

Next slide, please. So to wrap up our performance in the Green Energy segment, we are dynamically executing our Strategy 2023+ by launching our renewable energy projects according to the schedule and within assumed budgets. We have already achieved our goal for 2024, 337 megawatts of installed capacity, almost half of which is wind power.

Once the Drze?ewo wind farm is completed in 2025, we will double installed capacity in wind farms. What's more important is that already this year, our renewable energy sources have the potential to produce over 1.3 terawatt hours of energy, while in 2025, this figure will exceed 1.7 terawatt hours to reach our strategic goal in 2026, 2 terawatt hours.

The good operational and financial results of this segment allow me to sustain our guidance that in 2026, the Green Energy segment will generate incremental EBITDA of PLN 500 million, PLN 600 million. Thank you very much, and I pass the floor to Kacha, who will show you how our operating results translated into our financial results. Kacha, please go ahead.

[Katarzyna Ostap-Tomann, executive]

Thank you. Maciej showed you very strong operating results in all our business segments, and this result translated into very good financial performance. Next slide, please.

On this slide, we present a high-level overview of the group's financial results in the third quarter of 2024. Total revenue increased by 3.6% to over PLN 3.5 million and EBITDA adjusted for one-offs and the sale of the last tranche of IP4 addresses, increased by an impressive 12.7% year-over-year. I will discuss drivers behind this growth on the next slide.

In the third quarter of 2024, we posted PLN 250 million of net profit. The increase in net profit was driven, among other things, by a steep drop in depreciation and amortization costs. We finished amortizing customer relationships that were recognized following the acquisition of Polkomtel in 2014. Additionally, net profit was supported by lower finance costs, mostly related to the noncash valuation of our euro-denominated debt and higher gains on investment activities.

I'm very happy with free cash flow generation over the last 12 months, excluding CapEx on the development of our renewable and hydrogen projects. Last 12 months free cash flow amounted to PLN 1.1 billion at the end of the third quarter. The net debt-to-EBITDA ratio, excluding project financing, remains under control and amounted to 3.4% at the end of the third quarter. Compared to the previous quarter, this ratio increased slightly by 0.1% but is considerably lower than I expected.

Next slide, please. As I mentioned on the previous slide, total revenue increased by 3.6% year-on-year. The B2C and B2B services segment contributed EUR 37 million to this result, mainly on the back of higher retail revenue. In the Green Energy segment, higher revenue from the sale of our own energy was offset by lower revenue from the energy resale.

The change on consolidation adjustment is perhaps not intuitive this quarter. This increased results from a change of methodology in intra-group eliminations following the growing scale of green energy from our own production for resale to third parties in the B2C and B2B segment.

If we look at the decomposition of adjusted EBITDA in Q3, we can see that the Green Energy segment and the Media segment strongly contribute to EBITDA growth. In the Media segment, EBITDA is higher by PLN 61 million, and this is driven mainly by lower cost of sport licenses as we no longer have the UEFA Champions League rights. EBITDA in the Green Energy segment increased by PLN 56 million year-over-year, following the organic growth of this segment, which was discussed in detail by Maciej.

In B2C and B2B Services segment, EBITDA was negatively impacted by a write-off of our stock of photovoltaic panels. Since we are looking at the performance by business segment on this slide, I would like to flag that we have completed the construction of a residential project in Port Praski, and we have started to transfer ownership of the apartments to our customers in November. This means that in the fourth quarter of 2024 and the first quarter of 2025, we will see a strong injection of revenue and EBITDA in the Real Estate segment because almost 70% of this investment is sold out already. Can I have the next slide, please?

As I already said, I'm very satisfied with our last 12 months free cash flow results for this quarter. The increase in cash flow generation is driven mostly by improved cash flows from operating activities despite continued pressure from high interest rates on our debt service cost. Over the last 12 months, nonrecurring events included the acquisition of the C-band in January, payments for one-off acquisitions, mostly for shares in Pantanomo in our Real Estate segment, and finally, the gain on the disposal of IP4 addresses and shares in Muzo.fm. Last 12 months free cash flow adjusted for interest and after nonrecurring events amounted to PLN 162 million. Excluding CapEx in the Green Energy segment, which was over PLN 940 million over the past 12 months, last 12 months free cash flow exceeded PLN 1.1 billion.

Next slide, please. Looking a little deeper into our capital investments, you will see that in the TMT space, we consistently remain CapEx light. The CapEx to revenue ratio remains at a low level of about 6%. In the Green Energy segment, CapEx amounted to PLN 277 million in the third quarter and PLN 532 million in the 9 months of 2024. Please recall that Maciej said about installing turbines at the Drze?ewo wind farm at the turn of the year. With this in mind, I expect to see intensified capital expenditures in this segment towards the end of the year. I would also like to flag that there is a chance that part of this CapEx might slide over to 2025 due to the timing of the delivery of the turbines and the holiday season.

Next slide, please. On this slide, we summarize the key information regarding the group's indebtedness. Net debt-to-EBITDA last 12 months, excluding project financing, settled at 3.4%. If we include project financing, this ratio is a little higher, 3.64%. Given that our operating performance measured by EBITDA is better than I expected and CapEx spending in the Green Energy segment is a bit slower. It's unlikely that we will exceed 4x net debt to EBITDA this year. The weighted average interest cost of loans and bonds remains relatively stable at 8.4%. The structure of our debt by instrument and by currency is also unchanged. Bonds constitute about 1/3 of our debt and the rest are bank loans. 16% is denominated in euro and 84% in the Polish zloty.

In terms of our debt maturity, I would like to highlight that we started repaying capital under our senior facilities agreement this quarter, PLN 155 million. Capital installments are scheduled until 2027. And in 2028, there is a bullet repayment planned on our bank loans. Our bonds mature in 2030. This brings me to the end of my part of the presentation. This was a very good quarter. I'm especially pleased to see solid retail revenue, growth in the B2C and B2B services segment and the growing contribution of the Green Energy segment to consolidated results.

Anticipating your questions, given the improving performance in the B2C and B2B segment, very good financial performance of the Green Energy segment and the accelerated recognition of revenue from apartment sales, it seems that I was too conservative at the beginning of the year in my EBITDA guidance. I believe that 2024 EBITDA will be higher than the 2023 EBITDA. Thank you, and over to Mirek for the summary.

[Miroslaw Blaszczyk, executive]

Thank you very much, Kacha and Maciej. This was indeed an excellent quarter, both in terms of operations and financials. Next slide, please. In the B2C and B2B Service segment, we are consistently building the value and loyalty of our customers. This is reflected in growing ARPU of B2C and B2B customers by 5% and 4%, respectively, and in a very low churn rate of only 7.2%. Strong operational performance translates into a solid growth of our retail revenue in the third quarter, up by 3.6%.

In the Media segment, we maintained high and stable viewership figures and a strong position on the advertising market, in line with our long-term strategy. We also aim to strengthen our sports offering by including the broadcasting rights to Formula 1 races, the German Bundesliga and the French Ligue 1 in our portfolio.

The Green Energy segment is performing very well. We have started test production of green hydrogen at our electrolysis plant in Konin, and we have opened our fourth publicly available hydrogen refueling station in Gdynia. Our new business is delivering excellent financial results. In the third quarter alone, EBITDA of this segment amounted to PLN 82 million. And in 9 months of 2024, EBITDA exceeded PLN 200 million.

Let me repeat what Maciej already said. We will reiterate our guidance on PLN 500 million to PLN 600 million of EBITDA in this segment in 2026. The third quarter was a very good quarter for the group financially. Total revenue increased by 3.6%, adjusted EBITDA increased by 12.7%, and our net debt-to-EBITDA ratio remains under control at 3.4% at the end of the quarter. I'm extremely happy with this quarter's results, and I'm confident and optimistic for the coming quarters. Thank you for your attention, and let's open the Q&A session.

[Operator]

[Operator Instructions] I have a couple of questions in the chat section that I will read as they were posted. The first 4 questions come from [indiscernible]. "I have 4 questions. Number one, is it not expected to reach a 4.0 net debt to EBITDA this year? Or not at all, meaning that in 2025 neither?

[Katarzyna Ostap-Tomann, executive]

As far as 2024 is concerned, we're not expecting to reach 4.0. As far as 2025, actually, I wouldn't like to commit strongly to an answer yes or no because it depends on the pace of the spending and the pace of the money incoming. So I really cannot give you any guidance on that at the moment. It will be increasing, but I'm not sure at the moment how it will go.

[Operator]

[ Nora's ] second question. Are the 9-month results in Energy segment better than expected? Or in line with your targets?

[Maciej Stec, executive]

Results in Energy segment are better than we expected. This is very important, but there are 3 reasons of that. One reason is that energy transition in Poland to -- from black energy to renewables, to green energy is slower than we expected, which gave us opportunity to get better prices for the energy, especially when we opened wind farms. This is the key issue.

The second, we've executed both projects, the wind farms like Cz?uchów and Przyrów much ahead of schedule, which is very important because every quarter is very important, and it was, like, 123 megawatts, which we've executed ahead of schedule. And that's why it's better than expected.

And you need to be, of course, that's what I mentioned in the presentation, is that we are now building Drze?ewo project, which is 138.6 megawatt capacity, pre-installed capacity, and it will double our wind farms. And here, we are a little bit ahead of schedule again because in the presentation, I said that we will install the turbines like early January. But in fact, we have roads, everything prepared for parts today and some parts we have in place. So if the winter is not so heavy, I can say that we can start a little bit earlier. And this project is scheduled just to be delivered until the end of next year.

So these are the reasons. So they are better than expected. But what is important, there are better -- these results are better for the future also. So faster, higher price and long term. So this is the strategy. So I believe that's what I mentioned in the presentation. We sustained our incremental EBITDA contribution to our results on 2026 between PLN 500 million to PLN 600 million on a yearly basis and long term, which is important. Thank you.

[Operator]

[ Nora's ] third question. "What is the outlook for adjusted EBITDA next year?"

[Katarzyna Ostap-Tomann, executive]

It's a bit too soon to say what is the outlook for the EBITDA for the next year. However, I can -- you can see that the results of the company quarter-to-quarter are improving. But I just would like to assure you that we, the management and a few thousand of our employees, we really are working towards improving this EBITDA, so we'll see. But it's -- at the moment, it's a bit too soon to say.

[Operator]

And Nora's last question, is there any update you can give us on the family dispute?

[Miroslaw Blaszczyk, executive]

We don't comment news concerning our shareholders. We focus on building value of our group, and we are more than happy to talk with you about that. Cyfrowy Polsat and its capital group operate consistently according to plan and in normal operating mode. Additionally, the company is not a party on ongoing proceedings. Thank you.

[Operator]

One question from [indiscernible] of Arum. How much Green Energy segment CapEx shall we expect for the whole period from the fourth quarter '24 till 2025 year-end?

[Katarzyna Ostap-Tomann, executive]

It will be probably over PLN 1 billion because Drze?ewo, which is our largest project, is a bit below PLN 1 billion to go. And then it depends on the other projects that we'll have in the pipeline. But the largest one is Drze?ewo and it's a bit below PLN 1 billion to go -- still to go and it -- at the end of 2025.

[Maciej Stec, executive]

Yes. But this is the project, a big project because it's 63 turbines in place. So this is a big project. It will double our energy capacity in wind farms. And as you can see, this is like the lowest renewable cost of production of renewable energy in Poland. So because it's windy in Poland and it produces -- and efficiency of these wind farms are very high.

[Operator]

I don't have any more questions in the chat section. So I will pass the floor over to Mr. Blaszczyk for a goodbye.

[Miroslaw Blaszczyk, executive]

Thank you for your participating in today's presentation of the operational and financial results of our Polsat Plus Group for the third quarter of 2024. I hope that we have answered all your questions. Thank you again and for the next meeting next year. I wish you a nice evening. Thank you.

[Maciej Stec, executive]

Thank you very much. Goodbye.