Majority SPI Owned Kino Polska TV SA Capital Group Reports 41.6 mln PLN In Operating Profit For 2018

Cannes, France, April 10, 2019 -- Kino Polska TV SA Capital Group (“the Group”, “the KPTV”) has released its 2018 annual report. In the period of January through December 2018 the Group reported* 149.2 mln PLN in revenue from sales (a 21% year over year increase) attributing the result to the incorporation of Stopklatka SA and performance of the FilmBox channels and Zoom TV. The revenue increase boosted the Group’s operating profit from primary activity to 23.6 mln PLN and 18.1 mln PLN net income after removal of the cost of shares in Stopklatka SA (17.9 mln PLN). The KPTV Group has ended 2018 with an operating profit of 41.6 mln PLN (vs. 21.2 mln PLN reported for 2017).

Kino Polska TV SA Capital Group in 2018:

149.2 mln PLN in sales revenue (123.3 mln PLN in the previous year;  a 21% year over year increase), due primarily to the consolidation of revenues generated by Stopklatka SA from the beginning of the third quarter 2018 and to the strong performances of FilmBox and Zoom TV networks.

41.6 mln PLN in operating profit (a 96% increase year over year) – 23.6 mln PLN in operating profit from primary activity (11% increase year on year) excluding the share appraisal effect for Stopklatka SA.

Nearly 36 mln PLN net income (a 126% increase year on year) – 18.1 mln PLN (a 13% increase year on year) excluding the share appraisal effect for Stopklatka SA.

The Group announced that the FilmBox movie channels and thematic channels achieved 12% growth in revenues from operations in Poland as well as across several foreign markets: Hungary, Slovakia, the Czech Republic, Bulgaria, former Yugo countries and the Middle East. Zoom TV contributed significantly to the improved result with 12.2 mln PLN in revenues with an increase of 88% over 2017 (value increase of 5.7 mln PLN).

In 2018 the Group incorporated the results of Stopklatka into its financial report (Stopklatka TV's results have been fully consolidated since Q3 2018). On June 14, 2018 Kino Polska TV SA took over Stopklatka SA and now owns 97.76% of the company's shares.

In 2018 Stopklatka TV segment generated 14.5 mln PLN in advertising sales. In its previous annual reports KPTV Group only presented its share of the Stopklatka's net result.

“We will continue working on development across foreign markets and on strengthening of the Group's position in Poland through the growing customer base in the Premium segment (FilmBox brand). Our goal remains to become the fifth largest media group in Poland in terms of audience share. We are seeking to reach an audience share at the 3% level within the commercial group” - said Boguslaw Kisielewski, Chairman of Kino Polska TV SA.

Kino Polska TV SA Group reported operating profit of 41.6 mln PLN for the 12-month period which ended on December 31, 2018 (a 96% increase year on year) and nearly 36 mln PLN profit from continuing activity (126% increase year on year). The improved results over 2017 were mainly due to the recognition of gains from the assessment of the value of the Stopklatka, SA shares in the amount of 17.9 mln PLN. When removing the effect of the recognition of such gains, the operating results would be 11% higher than in 2017 mainly due to improved results in the following segments:  Zoom TV, Kino Polska networks, FilmBox and thematic channels.

The EBITDA reported for 2018 was 61.8 mln PLN (increase of 32% year on year) which also reflects the positive results of the Zoom TV segment, the Kino Polska segment as well as FilmBox and thematic channels.

*Kino Polska TV SA’s Annual Report was originally released on March 21, 2019.

About KPTV SA Group:

Kino Polska TV S.A. is a modern, fast developing media group which aspires to become the leading player in the Eastern and Central European market. The Groups’ main business branches are: broadcasting and production of TV channels, distribution, publishing activity, film production, services for the reconstruction and archiving of digital works of Polish cinematography and Internet. The Group's channel portfolio includes: Kino Polska, Kino Polska Muzyka, FilmBox channels (with Kino TV), Zoom TV and Stopklatka TV.