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Edited Transcript of PLY.WA earnings conference call or presentation 27-Aug-19 7:00am GMT

Q2 2019 Play Communications SA Earnings Call

Sep 17, 2019 (Thomson StreetEvents) -- Edited Transcript of Play Communications SA earnings conference call or presentation Tuesday, August 27, 2019 at 7:00:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Holger Püchert

Play Communications S.A. - CFO & Member of Management Board

* Jean-Marc Harion

Play Communications S.A. - Chairman of the Management Board & CEO

* Tomasz Pozniak

Play Communications S.A. - IR Director

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Conference Call Participants

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* Marcin Nowak

IPOPEMA Securities S.A., Research Division - Analyst

* Pawel Szpigiel

Dom Maklerski mBanku S.A., Research Division - Analyst

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Presentation

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Operator [1]

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Good morning, ladies and gentlemen. Thank you for standing by, and welcome to the Play Communications S.A. H1 2019 Results Conference Call. (Operator Instructions) I must advise you the conference is being recorded today, Tuesday, the 27th of August 2019.

I would now like to hand the conference over to your speaker today, Tomasz Pozniak. Please go ahead.

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Tomasz Pozniak, Play Communications S.A. - IR Director [2]

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Thank you. Good morning, everyone, and welcome to our results conference. Just quickly changing the slides, moving on to the agenda. We will have typical agenda as usual with business performance section provided by Jean-Marc Harion, CEO of P4; then financial performance by Holger Püchert, the CFO; and then back to conclusions again by Jean-Marc; and we will end the conference with Q&A session.

So without further delay, Jean-Marc, the floor is yours.

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Jean-Marc Harion, Play Communications S.A. - Chairman of the Management Board & CEO [3]

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Thank you, Tomasz. I'm starting with Slide 5. Welcome to everybody, and thank you for joining us this morning. I'm excited to share with you Play Communications' excellent results for the second quarter and the first half of 2019. During the second quarter of 2019, Play delivered the highest adjusted EBITDA in its history, PLN 644 million, plus 17%, and we recovered positive trends across all operating and financial metrics. Our operating revenue increased by 4.2% year-on-year, reflecting our focus on business performance and quality of service. Active subscriber base grew up by 250,000 year-on-year. Our contract customer share and blended ARPU increased and our contract churn decreased in the first half of the year. As a result, we are maintaining our leading commercial position with 15 million reported customers. In a saturating mobile market, thanks to the commitment, passion and focus of all players, we improved our net profitability by 33% year-on-year in H1 and brought our leverage below 3x EBITDA. We are confident in our cash-generation perspective for the rest of the year. In H1 2019, we also consolidated our #1 positions amongst mobile operators in terms of NPS and brand preference, which are the clear results of our focus on customer experience and customer satisfaction in all categories of interactions with our customers, first of which, the quality of our network.

Slide 6, a short reminder for PLAY 2022 strategy. As you remember, our strategy is based on mobile-centric convergence, which we believe is the most relevant approach for the Polish market due to the geography and demographics of Poland. Mobile-centric convergence has become a customer reality. Last quarter, we enriched our mobile convergence portfolio with 2 major services, our OTT, PLAY NOW TV Box and our HOMEBOX offering that links smart phones and home internet data. Our mobile-centric convergence strategy is built on 2 pillars, our digital leadership and our network leadership. We accelerated the digitization of all customer-facing processes in Play in order to improve our efficiency and productivity and provide the best customer experience first through our Play24 app. And we continue reinforcing our network leadership position now covering more than 98% of the population with our own 4G LTE. At the end of June, we had 1 out of 4 of our network sites upgraded to 5G Ready, and our mobile network has been recognized by all independent speed tests as the fastest one in Poland. The recent closing of 3S acquisition will allow us to improve even further the quality of our network and pave the way for 5G.

Let's review our progresses in every strategic pillar. Slide 5 -- Slide 7, sorry. We continue making further progress in digital. The most prominent example of our digital leadership is the success of our Play24 app, now used by more than 4.2 million active users. We're unleashing (inaudible) content. The new version launch in April includes native top-ups and real-time customer agent functionalities. Another important milestone in our digital strategy is the digitization of our retention processes. In Q2, we introduced the online multisim retention functionality including handset purchase for our family customers, and we are also -- we also accelerated the digitization of our POS, point of sales, in Q2. We introduced e-signature in all our point of sales, driving shares of digital transaction to 40%, and we implemented Robotic Process Automation and enhanced Optical Character Recognition. 15% of invoices are already automatically booked in our financial systems.

Slide 8, we've enriched our portfolio of mobile-centric products and services. In April, we launched commercially our OTT PLAY NOW TV Box. We consider the first results are promising, with close to 18,000 subscribers at the end of June and an average viewing time of 75 minutes per active user per day in Q2. Early June, we launched as well our new platform for mobile convergent offerings, HOMEBOX, which combines regular mobile plan with Wireless to the Home, WTTH. New postpaid HOMEBOX plans after our new prepaid and mixed mobile plans launched in February and April reflect upon our more-for-more strategy. We offer significantly higher data bundles at reasonably increased prices. It's important to note that, according to our market research, the acceptance of more-for-more offers is increasing and is now higher than expectation for lower pricing. This may suggest that mobile customers are ready to support the market repair, which we hope will confirm in the coming quarters. Finally, despite the slowing down of handset sales in H1 in Poland, we remain the leader in this category with 0.8 million units sold in H1 and 20% retail market share.

Slide 9, Vectra cooperation agreement will complement and reinforce Play's mobile-centric strategy. The agreement with Vectra will allow Play as of H1 2020 to offer fixed broadband connection services to Polish households. Our fixed broadband service will be part of our portfolio of mobile-centric convergence services as a fixed WiFi hotspot alternative or complement to Play 5G Ready or 5G WTTH service. Additionally, we will use fixed broadband to protect our mobile network from congestion in very dense areas. Our agreement with Vectra, which is part of our larger strategic partnership including MVNO and backhaul transmission, is based on a reasoning model. We will pay no upfront to access Vectra network, and we won't need to invest any CapEx. Play's fixed broadband service will be available to 2.7 million households, i.e., close to 40% of Polish households in reach of high-speed fixed networks. Existing buildings, cabling and connection to apartments will make Play's fixed broadband much easier to install and use than FTTH.

Slide 10. We continue accelerating our preparations for 5G. At the end of Q2, we have close to 1 out of 4 of our network sites upgraded to 5G Ready offering Internet speed of up to 900 megabit per second. In [Poland], we have started our 5G test in Poland in Torun where we use 100 megahertz within the 3.5-3.6 gigahertz frequency band and soon in the Legia Stadium in Warsaw. Play mobile network is now recognized as the fastest one in Poland in all Speed Test, speedtest.pl since November 2018, and more recently, Ookla who awarded Play last week as the fastest mobile network in Poland for H1 2019. Last but not least, we continue rolling out our network at accelerated pace, adding 380 new sites to our network in H1 2019.

Slide 11 provides more detailed figures about our network rollout in our 5G Ready upgrade. We have 7,382 sites operational at the end of June, plus 21.5% year-on-year, covering 98.1% of the population we are on -- with our own 4G LTE network, plus 3.7 percentage points year-on-year. 23% of our sites have been already upgraded to 5G Ready at the end of June, serving 13.4% of the population. It is important to underline that, thanks to efforts put into our own national network rollout, we now have switched off national roaming, partly or totally in Poznan, Tricity, Gdansk, Gdynia, Sopot, Wroclaw, Lódz, Kraków and Silesia with significant impact on adjusted EBITDA.

Slide 12, the acquisition of 3S supports the execution of our mobile-centric strategy. There was a clear rationale for 3S acquisition by Play, whose closing was signed last Monday, securing fiber access to existing and future base stations and ensuring long-term cost control over cyber transmission. 5G Ready and 5G rollout require high-capacity transmission to provide high speed and low latency when ongoing consolidation in the Polish transmission market will make price and availability more challenging in the future. We have successfully worked with 3S for 10 years, and we share the same future of entrepreneurship, cost efficiency and fast execution. And we will be able to create synergies from co-location of Play services, optimization of network costs despite data growth and joint procurement savings. And in the meantime, we will create additional revenue expanding Play's B2B and wholesale offerings and expanding 3S's offering nationwide through Play sales force.

Slide 13, the evolution of Play's customer base reflects our continuous focus on contract subscribers. In H1 2019, Play reconfirmed its position as Poland's leading mobile convergence operator when maintaining our 15 million total reported customer base, the #1 position in the market, we proved again our commercial excellence by growing our active base by 250,000 customers, up to 12.7 million customers, plus 2% year-on-year. Our contract customer share grew up to 66.3%, plus 1.7 percentage points year-on-year at the end of June 2019. Our contract base up to 9.9 million customers, plus 2.4% year-on-year, including 9.1 million active contract subscribers, plus 3% year-on-year. The minus 0.4% year-on-year reduction of our active prepaid customer base is partly due to migration to postpaid.

Slide 14. Our value strategy translates into the increase in value of our existing customer base, thanks to our continuous focus on customer base value. We have served continued development in volume and usage, which translates into ARPU growth in Q2. Play's blended ARPU increased to PLN 32.9, plus 1.4% year-on-year in Q2, and PLN 32.4, plus 0.7% year-on-year in the first half of 2019. Even more importantly, our contract ARPU grew up to PLN 37.8 in Q2 while contract churn improved to 0.7% in both Q2 and the first half of the year.

Finally, Play confirms its leadership in mobile convergent customers with the share of 42% of bundled SIMs, growing by 1.6 percentage points year-on-year and driving family and business

ARPA increase.

Slide 15. Play delivered an exceptional performance in Q2 with the highest quarterly adjusted EBITDA ever. Operating revenue grew by 4.2% year-on-year in Q2, up to PLN 1.759 billion, driven by 6.1% growth in usage revenue, supported by 2.8% growth in sales of goods. As I already mentioned, adjusted EBITDA amounted to the highest ever quarterly level of PLN 644 million in Q2, plus 17.1% year-on-year, mainly driven by service revenue and margin growth, increase in sales of goods margin, decrease in national and international roaming costs, partially offset by G&A, mainly network maintenance and payroll. Net profit increased year-on-year by 27.1% in Q2, up to PLN 254 million, boosted by higher adjusted EBITDA, coupled with lower interest despite higher depreciation and amortization impacts.

Free cash flow to equity is in line with 2019 guidance, minus 44% year-on-year, reflecting higher cash CapEx and increased cash taxes in the period, more than offsetting the improvement in adjusted EBITDA.

Slide 16, consequently, Play's performance was extremely strong in H1 across key financial metrics. Half year results amounted to PLN 3.445 billion, plus 3.6% year-on-year. Half year adjusted EBITDA grew by 14.2% year-on-year, up to PLN 1.221 billion, thanks to revenue growth and improved cost base. Half year net profit increased to PLN 467 million, plus 32.6% year-on-year, reflecting improvement in EBITDA as well as lower finance costs, partially offset by the higher G&A. And half year free cash flow to equity amounted to PLN 350 million, in line with 2019 guidance as a result of higher cash CapEx and significantly increased cash taxes in the period. It is important to state that full year perspective is good. And as you know, we have decided to upgrade the guidance for free cash flow to equity. Let me come back to that later.

So now, I have the pleasure to hand over to Holger Püchert, Play's CFO, who will present you our Q2 and H1 2019 financial performances in more details.

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Holger Püchert, Play Communications S.A. - CFO & Member of Management Board [4]

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Thank you very much, Jean-Marc. This is Holger Püchert, CFO of P4. Let me talk about our excellent quarterly financial figures. Our operating revenue grew by 4.2% to PLN 1.759 billion in Q2 2019, compared to Q2 2018 on a year-on-year comparison. Driven by all components of revenue, we got realized this increase majorly in usage revenue.

Let us look on Page 19 to our adjusted EBITDA. And here, we see that we could improve our adjusted EBITDA even significantly more than our revenue. We grew our adjusted EBITDA in the year-on-year quarterly comparison by 17.1% to PLN 644 million. Our margin grew from 32.6% and improved to 36.6% in Q2 2019.

So we have strong growth in service margin, and this reflected in revenue increase as well as lower national and international roaming costs, partially offset by our higher G&A. Our half year adjusted EBITDA arrived at PLN 1.22 billion, up by 14.2% year-on-year.

Let's look to the cash CapEx on Page 20. Our cash CapEx stayed on a higher level, reflecting our network rollout with PLN 197 million in Q2 2019. Our number of new sites launched up by 32% on a year-on-year comparison in Q2 and by 15% on a year-on-year comparison for the half year. We have continuous network upgrades towards implementation of 5G, and we had higher invest in core network. In Q1 2019, please recall that we also had spillover of cash CapEx from the high cash CapEx we had in Q4 2018.

On Page 21, I would like to come to the summary of our financials, and these reflect our presentation before. Let me start on operating revenue. On a year-on-year comparison of the quarter Q2, 4.2% up. The half year 3.6% up. This majorly driven by usage revenue, 6.1% up on a quarter comparison, year-on-year and half year comparison, 4.8% up. We explained that our adjusted EBITDA was also driven beneath revenue improvement by lower cost in national roaming as well as international roaming, so national roaming costs reduced by 32.7%, and our international roaming costs are included in the line other service costs including international roaming and content down by 15.5%. Our financial costs are lower due to the fact that our value of debt financing is lower. We constantly repaid on our debt financing. Finance costs lower by 14.1% on a half year comparison. And net profit, I would like to repeat again, on a half year, PLN 467 million around at 33% up.

Let's look to the free cash flow to equity post lease payments and here, Jean-Marc already referred to. Our adjusted EBITDA is higher. Capital expenditures are also higher. The cash effect of the change in net working capital growth is slightly negative. Cash interest, we already referred to in the half year comparison, is a little bit lower. Cash taxes are significantly higher. And here, I would like to explain again, as we did already in past calls, that we usually pay our cash taxes always in the first half of the year for the previous year. This year, we paid the major part of our cash taxes in Q2. Last year, we paid the major part in Q1. And therefore, our half year 2019 cash taxes are with minus -- cash of PLN 157 million, significantly higher than in H1 2018, PLN 61 million. And Jean-Marc explained that we have this year higher cash taxes, but the major chunk is in the first half of the year 2019. Lease payments more or less are on the same level that our free cash flow to equity post lease payments ends with PLN 350 million.

Let's look to the leverage. And let's look here to the development of leverage, starting from June 30, 2018, looking to year-end 2018 and now to the half year figures. I would like to start with the senior term loan. So we started 1 year ago, with around PLN 6.3 billion, and by repaying, we had PLN 6.05 billion at year-end 2018. Now it's 5.88 billion. The senior term loan as times to last 12-month adjusted EBITDA is 2.5x.

So if you look to the total net financial debt by adding other debt and deducting cash and cash equivalent, we are at rounded PLN 5.8 billion. This is 2.5x of our last 12-month adjusted EBITDA. Now adding the leases under IFRS 16, close to PLN 1 billion. Our total net debt is around PLN 6.8 billion, and now we are below 3x last 12 month adjusted EBITDA with 2.93. So comparing to December 2018, we reduced our leverage, although we paid the dividend in Q2 of PLN 368 million. And here again, we mentioned the PLN 173 million we repaid on the senior term loan as I explained in the beginning.

With this remark, I would like to finalize on the financial section and hand over again to Jean-Marc.

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Jean-Marc Harion, Play Communications S.A. - Chairman of the Management Board & CEO [5]

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Thank you, Holger. Slide 25, 2019 guidance status. We firmly believe that the rationalization of Polish market environment and our discipline in executing upon our mobile-centric strategy supports value generation for Play's shareholders. We are expanding our leadership position from the largest Polish mobile operator in terms of customers to mobile-centric convergence value, and we aim to grow value around families and small businesses. Last quarter, we continued expansion of our portfolio of mobile-convergent services by launching commercially our OTT PLAY NOW TV Box and introducing our HOMEBOX offering. Network rollout is bearing fruit, not only by reduction of national roaming costs, but also by building unique customer experience with the accelerated expansion of our 5G Ready coverage and the recently acquired 3S fiber backhaul. We maintain our lean culture by implementing further efficiency improvement through digitization of business process, all that contributes to our success, and we see a lot of opportunities in the coming quarters. And we're also convinced that 5G will give us a new opportunity to continue disrupting the Polish market. I therefore look forward to reporting our progresses to you in the coming quarters.

As an outcome of Play's excellent performance in the first half of this year, we're revising third quarter and full year guidance as follows: Revenue, we confirm our original 2019 guidance for revenue, which is to grow below 2018 results. Our operating revenue will be driven by solid services revenue, partly offset by uncertainties in handset market. Adjusted EBITDA, we upgrade our original guidance for adjusted EBITDA by PLN 100 million, up to PLN 2.3 billion, PLN 2.4 billion, based on the current trend. We have good hope to land in the highest spot of this bracket. Cash CapEx. As we choose to even accelerate further the rollout of our 5G Ready network, we invest between PLN 800 million and PLN 830 million this year, instead of up to PLN 800 million as in our original guidance. Free cash flow to equity, we upgrade our original guidance of free cash flow to equity from PLN 670 million to PLN 750 million to PLN 770 million to PLN 830 million. Distribution to shareholders, we confirm the payment in 2020 of a dividend equivalent in total to 40% to 50% of 2019 figures to equity. Our H1 2019 results are strong foundation for execution upon our 2019-2022 strategy, disclosed 1 year ago, and we look towards the rest of 2019 with confidence.

This concludes our presentation of Play Communications S.A. Q2 and H1 2019 results. And now Holger, Tomasz and I are ready to take your questions.

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Tomasz Pozniak, Play Communications S.A. - IR Director [6]

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Thank you, Jean-Marc. Thank you, Holger. So as you have heard, we are ready to take your questions. Please go ahead.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Your first question comes from the line of Pawel Szpigiel.

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Pawel Szpigiel, Dom Maklerski mBanku S.A., Research Division - Analyst [2]

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Congratulations on the results. The first question is, could you comment on the relatively low level of expenses on advertising and promotion in the second quarter?

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Jean-Marc Harion, Play Communications S.A. - Chairman of the Management Board & CEO [3]

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I will take this one. You know it's a question of seasonality. We have balanced our A&P spend in H1 with, I would say, more A&P spend in Q1 due to the 5G Ready campaign -- the big 5G Ready campaign that we launched in February, March. And the rest of the quarter, the half year, was dedicated to launch our new services. As you probably know, we were relatively discreet in the promotion of our TV box because we believe that we are still in our learning curve, and we had a big campaign again at the end of June to launch our HOMEBOX. But it's pure seasonality. It's part of -- it was part of our initial plan, depending on the announcement and the messages that we wanted to convey to the customers in Poland. I can tell you that over the year, we are not going to slow down our A&P spend. It will be -- H2 will be more or less equal to H1.

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Pawel Szpigiel, Dom Maklerski mBanku S.A., Research Division - Analyst [4]

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Okay. Regarding revenues, I observed very good trends in the revenues, but in the breakdown, so-called other revenue were high as well. They consist mainly on revenues from MVNOs and from foreign mobile operators who enter into international roaming agreements with you, as far as I know. And I just want to ask were there any extraordinary revenues booked in the second quarter.

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Jean-Marc Harion, Play Communications S.A. - Chairman of the Management Board & CEO [5]

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No. No, it's business as usual for our wholesale activity.

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Pawel Szpigiel, Dom Maklerski mBanku S.A., Research Division - Analyst [6]

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Okay. Great. And the last question is what is your current position on the leverage level in the coming 2 years? I'm asking because in today's morning press, Poland's Polish regulator, UKE, confirmed that it has decided to distribute 5G bands in the form of auction instead of the tender, and I just want to know if there is any maximum level that you will never cross regarding leverage.

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Holger Püchert, Play Communications S.A. - CFO & Member of Management Board [7]

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This is Holger. On the leverage, so currently, this day, what we always stated, which we would like to keep -- to come to a level, I have to say, to come to a level of 2.5 on the outer of the medium term. With regard to the frequencies, of course, for us, it is an option to increase leverage, looking to processes which may come up in 2020, but let us analyze on this one, then really it comes to the defined processes under the exact timing.

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Jean-Marc Harion, Play Communications S.A. - Chairman of the Management Board & CEO [8]

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Yes, in the meantime, we don't believe that the auction process will impact the price of the spectrum significantly because as far as I know the auction will be limited to the 4 minutes which makes total sense from a technical point of view, of course, because you cannot operate 5G without having a 4G layer. So that will reduce the level of competitiveness in the auction process. And at the end of today, we don't believe that it will make a lot of difference with the tender process. Maybe it will shorten the process. That's all.

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Operator [9]

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And your next question comes from the line of Marcin Nowak.

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Marcin Nowak, IPOPEMA Securities S.A., Research Division - Analyst [10]

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Congratulations on the results as well. I would like to follow up to the question regarding the other services and usage revenues but also expanded to all the usage revenues. Could you please comment in more detail regarding the exact drivers for the quarter-on-quarter performance in usage revenues?

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Holger Püchert, Play Communications S.A. - CFO & Member of Management Board [11]

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Give us 1 minute. So on the quarter-on-quarter, in general, we can say that we had good performance, especially in contract area. And please look to the development, as we have explained. Well, the -- on the revenue, we hedged from all lines the positive impact, but majorly from usage revenue. And here, it's contract. Also, the prepaid development was very good for the company. Major driver was contract area.

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Marcin Nowak, IPOPEMA Securities S.A., Research Division - Analyst [12]

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Okay. Was there any certain item that improved quarter-on-quarter contract -- retail contract usage revenues or prepaid contract revenues? Or just as you said earlier, business as usual?

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Jean-Marc Harion, Play Communications S.A. - Chairman of the Management Board & CEO [13]

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No, I believe that Holger answered it. The major increase that we saw in our usage revenue comes from the contract base. It's related to the ARPU increase that I described in my presentation and especially the contract ARPU increase, and as well due to the increase of the number of active users. And this ARPU was driven by not only a higher consumption of data but as well a higher consumption of a number of value-added services that we provide, including the PLAY 360 service, which is very popular amongst our customers. And additionally, we see an improvement in the prepaid sales with an increase of the number of top-ups per our customers, and quite a good impact as well on the ARPU of active prepaid customers. So it's a solid and very safe growth in the core of our business.

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Marcin Nowak, IPOPEMA Securities S.A., Research Division - Analyst [14]

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Okay. And second question, could you just comment on expected revenue split in the second semester of 2019, especially about the level of handset sales given in the context that you didn't change the full year revenue guidance?

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Jean-Marc Harion, Play Communications S.A. - Chairman of the Management Board & CEO [15]

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Yes. I would say that the main comment here is that the main driver of our growth has to remain and is the service revenue. That's where we take our bread and butter from. So of course, we are very happy to sell handsets because handset is the driver for customers to acquire or renew their contracts. We are very good in selling handsets. But in the meantime, it's a retail business, and it depends on seasonality. So this year, there are less sales in the first half of the year, there were less handsets sold in Poland, and -- but we don't depend on the sales of goods to deliver our EBITDA and our revenue. But -- that's why we are a bit careful in our guidance for revenue because we know that we will deliver a very good service revenue in H2. But in the meantime, sales of goods will be -- will depend on the evolution of the market contract.

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Holger Püchert, Play Communications S.A. - CFO & Member of Management Board [16]

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And this is again Holger. Just how to find the figures, first of all you have it in the presentation, but if you would like to have it in comparison with what we stated about ARPU development, please look to business report, Page 27. Here you have the ARPU development, what we explained on our contract as well as prepaid and please look also to the net additions on Page 26 of the business report under customer segment. The revenue development, you have in all details around the pages 17, 18, 19. It's a detailed checklist.

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Marcin Nowak, IPOPEMA Securities S.A., Research Division - Analyst [17]

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Okay. And the last question, could you please comment about the customers -- the reception of your last changes in headline mobile offer? Do you see any negative changes in the customer base in the first quarter in July or August? Or everything is proceeding as planned?

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Jean-Marc Harion, Play Communications S.A. - Chairman of the Management Board & CEO [18]

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Well, everything is proceeding according to the plan. I think that it's still very early to make any conclusions, but today, we don't see any impact in the evolution of our new plans compared to prior introduction of the -- prior to the introduction of the new plans. And as I was mentioning in my presentation, our customer -- our market survey shows that customers now expect more price increase than price decrease in the coming few months and quarters. And they have an appetite for consuming more data, more services because, of course, the low impact of mobile spending in their overall budget. So we believe that today, there are reasonable chance that the customers will accept this price evolution. I wouldn't say the price increase because we are offering more data for a slight increase in price. But, by the way, it increases our ARPU positively. And in the meantime, we see as well that, as I was mentioning previously, we see as well that the customers are -- our customers are eager as well to buy new value-added services like our PLAY 360 in addition to their current contract. There is a good reception as well for our TV services. So -- yes, I believe that the first results are promising. And definitely, we don't see any negative impact in terms of traffic (inaudible) from this price increase. I believe that our competitors don't see it either.

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Operator [19]

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Thank you. There are no further questions on the line, sir.

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Tomasz Pozniak, Play Communications S.A. - IR Director [20]

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In such case what can we do, just conclude this presentation. Thank you very much for attending, and see you again with our Q3 results in November.

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Jean-Marc Harion, Play Communications S.A. - Chairman of the Management Board & CEO [21]

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Thank you.

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Operator [22]

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Thank you. This concludes this conference for today. Thank you all for participating. You may all disconnect.