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Edited Transcript of PLY.WA earnings conference call or presentation 13-Nov-19 8:00am GMT

Q3 2019 Play Communications SA Earnings Call

Dec 5, 2019 (Thomson StreetEvents) -- Edited Transcript of Play Communications SA earnings conference call or presentation Wednesday, November 13, 2019 at 8:00:00am 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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* Michal Potyra

UBS Investment Bank, Research Division - Director and Equity Research Analyst - Delta Coverage

* Nora Nagy

Erste Group Bank AG, Research Division - Research Analyst

* Pawel Puchalski

Santander Brokerage Poland, Research Division - Head of Equity Research Team

* 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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Ladies and gentlemen, thank you for standing by, and welcome to the Play Communications S.A. Q3 2019 Results Conference Call. (Operator Instructions) Also, I must advice that the call is being recorded today, Wednesday, the 13th of November 2019.

And without any further delay, I would now like to hand over the call to your first speaker today, Tomasz Pozniak. Thank you. Please go ahead.

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

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Thank you, operator. Good morning, ladies and gentlemen. Apologies for a short delay in opening this call. To the ones listening to -- watching us and listening on webcast, we will shortly have the presentation available. There are some technical issues with converting into appropriate format.

But we will not wait any longer. So without further delay -- of course, if you wish to substitute for the webcast, then you can go to playcommunications.com and you will find the presentation there under the financial results.

So now without further delay, I'll transfer to Jean-Marc Harion, the CEO of P4.

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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, and welcome to everybody, and thank you for joining us this morning. I'm starting with Slide #5 in the presentation, and I'm very pleased to share with you Play Communications' excellent results for the third quarter and the 9 first months of 2019. Our performance proves again that Play ranks among the most efficient and cost-efficient telecom operator in Europe.

During the third quarter of 2019, Play delivered the highest adjusted EBITDA and the highest free cash flow to equity in our history, beating Q2 highest level records. And we recorded positive trends across all key operating and financial metrics.

Our operating revenue increased by 5.2% year-on-year driven by the increase of our blended ARPU and our -- and of our contract base. We now cover 43% of the population with our 5G Ready sites preparing the way for 5G. Thanks to the improvement of our EBITDA, profitability and cash generation, we brought our leverage below 3x EBITDA. And we are confident in our EBITDA and cash generation perspective for the rest of the year so we decided to revise our guidance up for the second quarter in a row.

Slide 6, a short reminder of our PLAY 2022 strategy. You know that Play's mobile-centric convergence strategy is built on 2 pillars, our digital leadership and our network leadership. Let's review our progresses in every strategic pillar.

Slide 7, we continue making further progress in digital. Symbol for digital leadership, Play24 app ranked the best telco selfcare app in Poland and is now used by more than 4.3 million active users. We continue enriching permanently its content recently with invoice drill-down, prepaid tariff plan changes and dark mode. And thanks to the accelerated digitization for sales and retention processes, 6% of our B2C retention are now digital versus 4.9% at the end of Q2 boosted by online multisim retention for family customers; 76% transaction in PoS are fully digital versus 40% at the end of Q2, thanks to the introduction of E-signature; and 60% of invoices with our B2B partners are now electronic versus 46% at the end of Q2.

Slide 8, we are enriching our portfolio of mobile-centric products and services. In June, we launched our new platform for mobile conversion offerings, HOMEBOX, which combines mobile plan with Wireless to the Home, WTTH. This platform reflects our more-for-more strategy. We offer significantly higher data bundles of smartphones and routers at reasonably increased prices.

In Q3, we enriched our mobile-centric HOMEBOX package with Play HOMEBOX TV an extended option, including Play Now TV with TV Box. And with Play Biznes Box Pro for SMEs combining higher data mobile and data transmission packages with optional smartphones and routers. It's worth noting in the meantime that we added 7 new channels and 2 video-on-demand libraries to our OTT Play Now TV box service launched in April, with more than 20,000 real active subscribers at the end of September, and a constantly evolving watching time per user up to over 120 minutes a day. After 4 months of usage, we see the first results are quite promising for the future.

Finally, Play remains the handset sales leader in Poland with 1.2 million units sold so far in 2019. In parallel, we also enriched for PLAY 360 service bundling phone repair and phone enhancing services with PLAY 360 MAX and all-in service package for high-end smartphone users.

Slide 9, we continue accelerating our preparation for 5G. At the end of September, we had 30% of our network sites upgraded to 5G Ready, providing 43% of the population coverage with Internet speeds of up to 0.9 gigabit per second. Play Mobile Network since November 2018 continues being recognized in Q3 as the fastest one in Poland by SpeedTest.pl in addition to Ookla Award we received in July for operating the fastest mobile network in Poland.

In parallel, we continue testing 5G in real conditions in Torun, where we initiated consumer tests as of October, and we are planning 5G tests in 2 additional cities by the end of the year.

Speaking about 5G, we have completed the real-time network synchronization of our network in 100% of our network sites which is together with the upgrade of our network, a prerequisite for 5G. And last but not least, we continue rolling out our own network at accelerated pace adding 610 new sites to our networks in the beginning of the year and providing 98.4% population coverage with our own LTE network.

Slide 10 provides you with more details here about our network rollouts and our 5G Ready upgrade. We had 7,613 sites operational at the end of September, out of which 2,310 upgraded to 5G Ready.

Slide 11. Our progress with national roaming switch off is in line with the full switch off at the end of 2021. It is important to underline that thanks to the efforts put into our own national network rollout, we now have partly switched off national roaming in 28 cities, representing 20% of the population; 60% of total traffic was transferred to Play; and in addition, we have also switched off national roaming entirely in 4 other cities covering 3% of the population, in this case, 100% of traffic was transferred to Play network.

Consequently, thanks to partial and total switch off in close to 25% of the population, the overall national roaming traffic decreased year-on-year by 42% for data and 48% for voice, generating a significant OpEx saving for Play. Finally, we confirmed that we will terminate the national roaming with Polkomtel at the end of 2019.

Slide 12, the evolution of Play's customer base reflects our continuous focus on contract subscribers. In Q3 2019, Play reconfirmed its position as Poland's leading mobile convergent operator. Our reported total base reached 15.1 million customers, out of which 124,000 machine-to-machine SIMs, which is less than 1%. Our contract consumer base grew up by 1.8% year-on-year to 9.99 million, including 9.11 million active contract subscribers. Play Active contract base increased by 121,500 customers, plus 1.4% year-on-year. The minus 3% year-on-year reduction of our active prepaid customer base is partly due to migration to contract. In total, our active base, which were the only operator to report in the Polish market, is stable with 12.7 million customers waiting for 84% of our total customers.

Slide 13, our value strategy translates into the increase in value of our existing customer bases. Thanks to our continuous focus on customer base value, we observe accelerating development in usage which translate into ARPU growth in Q3. Play blended ARPU increased by PLN 0.5 plus 2.8%, up to PLN 33.4 in Q3. Contract ARPU grew up to PLN 38.3 in Q3 whilst contract churn remains stable at 0.76% in Q3 and even improved to 0.74% for the 9 -- the first 9 months of the year. Mobile convergent customers considered bundled SIM customers, is stable at 42% for total SIM customers, driving family and business ARPA increase.

Slide 14, Play delivered against the strong performance in Q3. As I already mentioned, our adjusted EBITDA and free cash flow to equity in Q3, but the record high levels from Q2 operating revenue is up by 5.2% year-on-year, up to PLN 1,796 billion driven by 6.2% increase in usage revenue and 6.4% growth in sales of goods. Adjusted EBITDA amounted to PLN 645 million in Q3, which is plus 16.1% year-on-year improving thanks to revenue growth and decrease in national and international roaming costs partially offset by G&A mainly in network maintenance, payroll, A&P and bad debt. EBITDA margin in Q3 was close to 36%.

Net profit is up by 23% year-on-year to PLN 233 million, boosted by higher adjusted EBITDA coupled with lower interest but higher depreciation and amortization and tax. Free cash flow to equity more than doubled year-on-year, up to PLN 409 million, fueled by positive working capital change driven by lower trade receivables and inventories.

Slide 15, Play's solid results over the 9 first months of 2019 are driving to further upgrade in our full year guidance. Nine months revenue

amounted to PLN 5,241 million plus 4.2% year-on-year; 9 months, adjusted EBITDA grew by 15% year-on-year, up to PLN 1,866 million, thanks to further revenue growth and improved cost base; 9 months net profit increased by 29% year-on-year up to PLN 701 million, reflecting improvement in EBITDA as well as lower net finance cost partially offset by higher G&A. Last but not least, with PLN 759 million 9 months free cash flow to equity is on track to overperform the original guidance up by 26% year-on-year despite higher cash CapEx and cash taxes, fueled by improvement in adjusted EBITDA and trade receivables, positively impacting net working capital.

Considering the full year perspective, we have decided to upgrade again the guidance for EBITDA and free cash flow to equity. Let me come back to that later. But for now, I have the pleasure to hand you over to Holger Püchert, Play's CFO, who will present you our Q3 2019 financial performance 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. Now let me talk about our excellent financial results in Q3 and on the 9 months. We could improve our operating revenue by 5.2% in the quarter-on-quarter comparison of Q3 to rounded PLN 1.8 billion. Usage revenue grew accelerated in Q3 to 6.2% on a year-on-year and 9 months, 5.3%. Sales of goods and other revenue improved in Q3 by 6.4% and on a 9-month basis by 4.4%.

Let us look to the adjusted EBITDA development on Page 18. The adjusted EBITDA grew by 16.1% in the quarter-on-quarter comparison Q3 to PLN 645 million. The reason for the strong increase in service margin are revenue increases as well as lower national and international roaming costs partially as you can see in the chart on the left, offset by higher G&A costs.

The 9 months adjusted EBITDA arrived at PLN 1.87 billion, up by 14.9% on a year-on-year comparison. We could reach meanwhile an adjusted EBITDA margin of 35.9% in Q3 and on a 9-month basis, 35.6%.

I turn to Page 19 and we would like to look to the cash CapEx. We continued our network rollout adding 231 new sites in Q3 and upgrading more than 600 sites to the 5G Ready technology. So thereby, we have a constant spend on cash CapEx, as you can see on this chart on Page 19. You'll find the figures presented by Jean-Marc and me on Page 20 in the table format. And here, again, to highlight, operating revenue up by 5.2% on a quarter-on-quarter comparison and 4.2% on a 9-month comparison. Usage revenue was driving this. Here, you also can see that we reduced significantly the national roaming cost and the international roaming cost as part of our line other service costs, including international roaming and content. The finance costs, we could also reduce, please look to the 9-month table, minus 8%. Jean-Marc already referred to our performance regarding net profit, 29.1% up on a 9-month basis.

I turn to Page 21. And let's look to the free cash flow to equity post lease payment. So on a 9-month basis, we reached PLN 759 million, up by 25.9%. As Jean-Marc already stated, the drivers have been adjusted EBITDA despite a constant cash capital expenditure which is higher than the 9 months before with PLN 635 million. But we also could improve on the total change in net working capital and other.

Let's look to the leverage on Page 24. Here, we present the view of the total net debt and the leverage in the comparison of the quarter of September 2018, end of December 2018 half year this year and end of September 2019. We reached meanwhile 2.83x of last 12 months adjusted EBITDA, so down from 2.93x. And 1 year ago, we had 3.14x. So we delevered significantly.

Let's also look to the development of the line. So please see the senior term loan which we could reduce over the time. Despite the fact that we paid a dividend of PLN 368 million in Q2 2019, the total net financial debt, which you see in the middle of the line is meanwhile down to 2.41x last 12 months adjusted EBITDA -- net debt to last 12 months adjusted EBITDA.

With these remarks, I would like to hand over again to Jean-Marc to present on the guidance.

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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. We're on Slide 24. One year ago, we presented our mobile-centric strategy 2019-2022. And today, I dare to say that we're overall delivering upon our promises, demonstrating that the strategy supported by our lean cost structure and efficiency model creates value for Play's shareholders. We are very pleased to report to the market the third consecutive quarter of improvements in dynamics of our adjusted EBITDA. Market rationalization base is clearly visible, encouraging us to extend our more-for-more approach to new mobile convergent packages such as HOMEBOX TV and Biznes Box Pro. The rollout of our own network and its upgrade to 5G Ready are bearing fruits, not only by cutting our national roaming costs but also by building unique customer experience. Our own network speed leadership for the last 12 consecutive months is a fact and a proof that quality at reasonable price pays off.

Play's excellent performance in the first 9 months of this year makes us confident that full year results will outperform our initial expectation. We choose to distribute the stronger results in a fair manner to benefit our shareholders and invest in our future success. Therefore, not only are we revising the 2019 guidance supports for the second quarter in a row, but we decided to accelerate further network upgrades to 5G Ready standard and join forces with 3S Group in a forward-looking backhaul network development. And so we are revising upward our full year guidance.

Revenue, we confirm our 2019 revenue growth will be close to 2018 level, which was 2.5%. Our operating revenue will keep being driven by solid service revenue.

Adjusted EBITDA, we upgraded our latest guidance for adjusted EBITDA, which was between PLN 2.3 billion and PLN 2.4 billion. We now commit on delivering more than PLN 2.4 billion adjusted EBITDA in 2019. Cash CapEx, we will accelerate even further the rollout for 5G Ready network investing around PLN 850 million this year instead of between PLN 800 million and PLN 830 million as per our latest guidance.

Free cash flow to equity, we upgrade our latest guidance for free cash flow to equity from between PLN 770 million and PLN 830 million to more than PLN 900 million. Distribution to shareholders, we confirmed the payment in 2020 of a dividend equivalent in total to 40% to 50% of 2019 free cash flow to equity.

Our 9 months 2019 results, are strong foundation for execution upon our 2019-2022, mobile conversion strategy launched 1 year ago, and we look forward at the end of 2019 with confidence.

This concludes our presentation of Play Communications S.A. Q3 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, gentlemen.

So as you can see, we are happy to take your questions, very happy. So operator, please, let's go ahead.

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Questions and Answers

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Operator [1]

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(Operator Instructions) So our first question is from the line of Michal Potyra.

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Michal Potyra, UBS Investment Bank, Research Division - Director and Equity Research Analyst - Delta Coverage [2]

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Congratulations on a strong number. It's Michal Potyra from UBS. I have 3 questions, please. The first one is about free cash flow. In third quarter, there was quite a positive impact from the working capital. So I wanted to check if this is something you expect to continue or possibly reverse in the coming quarters. Yes, if you could basically share a bit of guidance on the impact of working capital on your cash flow going forward, please. That's the first question.

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

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Maybe you could -- you can ask your 3 questions, and we'll answer them one by one.

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Michal Potyra, UBS Investment Bank, Research Division - Director and Equity Research Analyst - Delta Coverage [4]

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Sure, of course. So the second question I wanted to ask about the net adds in the Mobile Contract segment, the number was rather low. And also according to the regulatory report on mobile number portability, Play had a negative balance. If you could comment on that, please, what's causing that? Is that pricing, bundling or just some other reason? And the last question, a really short one, if you just add a bit more color on the impact of 3S consolidation on your financials this quarter.

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

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So just Holger answer your question number one and three, and I will answer the second one.

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Holger Püchert, Play Communications S.A. - CFO & Member of Management Board [6]

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Regarding your question number one, we do not guide specifically on working capital, but you saw that in our guidance, the increase of our guidance on the free cash flow to equity where the working capital is of course an important component. Indeed, we had a very good development on the change in cash flow from what we call extended working capital. And here, it's about using receivables and also inventory. This is looking to Q3. On 3S, maybe you can, Jean-Marc take the base on 3S. I would like just to look for one in the financial statement.

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Jean-Marc Harion, Play Communications S.A. - Chairman of the Management Board & CEO [7]

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Yes. To answer your question about net adds, the fact is that today, the Polish regulator report the number of MNPs. But operators, at least most of them are paying less and less attention to the MNPs. What matters is the first -- the overall growth of the base, and especially the -- as far as Play is concerned, the growth of the active contract base. And you can see that in this matter, our numbers are positive. We keep growing our active contract base. Maybe I should make 3 comments. MNPs are more and more used by the retail and sales teams in shops to play tricks and convert the acquisition of a new customer in an MNP, just in order to increase the commission. So we decided not to continue playing this game, and we are not the only one in the market. Second, we are the only operator to report active customers. And I -- we believe that this is the KPI that matters because at the end of the day, we focus our attention on the growth of service and usage revenue and those revenues are driven by active customers, and especially active contract customers. And finally, as I mentioned in my presentation, and this is of course a difference with other operators. We have a very low market share in the high-end segment of the B2B market which comes with very low ARPU and most of the time, negative profitability. This is especially the case for machine-to-machine SIM card. And as I mentioned in our base today, we have less than 1% of machine-to-machine sims, 0.8% to be exact. And that makes a difference in the profitability of the base. So in a nutshell, we focus on value creation and on the growth of the value-accretive customer base. And now I hand over to Holger for your third question.

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Holger Püchert, Play Communications S.A. - CFO & Member of Management Board [8]

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Yes. On the third question on 3S impact, I just used the time here to look to the financial statement, would like to read you through this. This is on Page F-17, here 16 and F-17. Here, you have a detailed view on first consolidation of 3S Group within Play Group. And to your question, so we -- the consolidated, we have included 1 month after the August acquisition. So this is September and you also have here the note that we recognize PLN 7.1 million on revenue and around PLN 0.5 million on the net income. This is the group impact of first consolidation -- sorry, this is a group impact of 3S after first consolidation.

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Operator [9]

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Next question is from the line of Pawel Szpigiel.

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Pawel Szpigiel, Dom Maklerski mBanku S.A., Research Division - Analyst [10]

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Congratulations and good results in third quarter. Those are my questions, the first would be could you please give us a brief description on how new higher pricing strategy is going on among your clients. The second question is could you please comment more about the current mobile market situation in Poland and what are your expectations for next year, 2020, I mean. And the third question is about this matter with T-Mobile. I mean some time ago, T-Mobile tried to prohibit you from the use of slogan 5G Ready in your marketing campaigns. Please give me an update on this matter.

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Jean-Marc Harion, Play Communications S.A. - Chairman of the Management Board & CEO [11]

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Okay. Thank you for your question. So let me answer the first question. Our pricing strategy is very simple. We believe that -- we see that there is an appetite among our customers who buy more and more data, and we come with a more generous plan at a higher price and we -- for the time being, we let the customer decide if they want to go for the new plan or keep with their existing plan, and we count on the increasing appetite of Polish consumers for a richer data plan to upgrade their plan to the new plan. And we see this trend evolving. We are working with our customer base. We, of course, try to motivate our customers to migrate to the new plans. And especially because we know bundle, the high spend with some data allowance for routers as well, which is an opportunity for us to introduce an alternative home Internet solution in the household in preparation of the future, which is 5G and fixed broadband by Play. So we follow the same more-for-more strategy as in the past and we are just accelerating the move, and that drives me to the second part of your question. It's because we see that in the Polish market, mobile communication have reached, I would say, a record low level, which makes that a lot of customers today stop paying attention to the exact price of their communication. And we see that in the slowing down as the move from one operator to another one. On the contrary, this is a fact that we shared in our Q2 presentation already, we see that we have more customers today expecting a price increase in the future than a price decrease. Meaning that the Polish customer is prepared to pay a little bit more for the mobile communication. And it's not only driven by the fact that customers want more and more data. It's as well due to the fact that in the Polish environment, economic environment we see a lot of prices increasing due to the inflation, due to the increase of the incomes, personal incomes, so -- due to increase of energy, et cetera. So the customer and the market are prepared for seeing more price increases and we have seen our competitors, 2 of our competitors, already increasing the prices. And the fourth one, Polkomtel, recently announced that they would increase the prices as well by the end of the year. We have no idea about the exact time and the way it will be done, but we are confident in the fact that on the long run, price will progressively increase driven by the 2 major triggers that I described, the appetite for more data and the overall evolution of the economic environment. Regarding the T-Mobile, T-Mobile has abandoned our pursuit, their claim against us about 5G Ready. We are not surprised by this decision. We've seen 5G Ready used in many countries by many operators, including T-Mobile itself in other countries to describe this kind of intermediary technology status. Today, I believe that it's not disputable that 5G Ready brings a real improvement in customer experience because in 30% of our size, 43% of the population, we provide customers with of course the compatible device with data speeds up to 0.9 gigabytes per second. So 5G readiness is becoming a standard of the market. And we even see our competitors, I would say, following the path that we have initiated and upgrading the -- their network in the same manner as we already did. So that's why we believe that this 5G Ready concept is now accepted by the market and even, should I say, repeat by the market.

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Operator [12]

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So the next question is from the line of Nora Nagy.

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Nora Nagy, Erste Group Bank AG, Research Division - Research Analyst [13]

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I just have 2 questions, if I may. The first one is about the 700 megahertz rollout. Are you also going to sign the agreement for 1 wholesale operator in Poland for this bandwidth? And the second question is regarding follow-up on the 2020 outlook that what could we expect in terms of free cash flow to EBITDA and adjusted EBITDA?

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Jean-Marc Harion, Play Communications S.A. - Chairman of the Management Board & CEO [14]

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Okay. Thank you for your question. Yes, we are going to announce later today that -- to confirm later today that we are going to sign the so-called 5G One Network agreement in order to take part to the feasibility study about the building of one network to roll out 700 megahertz in Poland. We believe that it makes a lot of sense on the paper to mutualize and combine the existing networks and sites of all the operators, plus the 1 provided by the government in order to cover 100% of the population with this 700 megahertz spectrum. Of course, the execution of the plan will be a challenge. It has never been done before. The collaboration between private operators and public sector is always tricky. But we are quite supportive of the concept and we expect to play an active role in the feasibility study. Regarding 2020 outlook, I believe that it's fair to answer your question by saying that we will share with the market our guidance and our forecast in February when presenting the full year of our 2019 results.

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Operator [15]

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No further questions at the moment. (Operator Instructions) The next question is from the line of Pawel Puchalski.

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Pawel Puchalski, Santander Brokerage Poland, Research Division - Head of Equity Research Team [16]

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My question would be on cash CapEx. I see slight upgrade to PLN 850 million. Is it a one-off? You are accelerating your construction of mobile network or should we take higher CapEx as a medium or long-term guidance rather?

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Holger Püchert, Play Communications S.A. - CFO & Member of Management Board [17]

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We make use of the excellent cash development this year and as you assume. So it's following on our rollout plan where we just said well -- we use the excellent financial position of the company by a deliberate decision to spend this year a little bit more.

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

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It's anticipation of already planned CapEx as you know, we are in the process of completing the rollout of our network at the end of 2021. And in parallel, we want to upgrade as many sites as possible to 5G Ready in preparation of the 5G launch. So it doesn't make a lot of sense to accelerate further the rollout of the network because we are committed to a minimum guarantee with the vendors for national roaming traffic. But it makes a lot of sense to accelerate when we can the 5G Ready. That's why we made upgrades, that's why we made the decision to dedicate, I would say, a part, a small part of our better and stronger Q3 results to CapEx, additional CapEx, anticipating the CapEx spend in the coming few months. But of course, the largest part of this strongest results were allocated to free cash flow to equity and remuneration of our shareholders.

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Pawel Puchalski, Santander Brokerage Poland, Research Division - Head of Equity Research Team [19]

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Okay. And I've got 2 more questions, if I might. The first one would be on surcharges. We know the negative decision in the (inaudible) case . So what is your expectation of base surcharges as of 2020? Secondly, could you give me the precise EBITDA at risk as far as surcharges are concerned. And thirdly, when you plan to pay your dividend in 2020?

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Jean-Marc Harion, Play Communications S.A. - Chairman of the Management Board & CEO [20]

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Regarding the surcharges for roaming, we are waiting for the official decision of the U.K. I would say we have mitigated expectation considering the deals given to Polkomtel. We will see and we will be prepared. Holger, do you want to speak about the EBITDA risk? Do we communicate about it?

No, I don't believe that we disclosed the amount, maybe on the dividend payment?

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Holger Püchert, Play Communications S.A. - CFO & Member of Management Board [21]

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On the dividend payment, I just can refer what we did in the last 2 years, we always paid in Q2, and this is subject to a decision of our Board of Directors.

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Operator [22]

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No further questions, sir. Please continue.

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Tomasz Pozniak, Play Communications S.A. - IR Director [23]

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Okay. I see no queue of questions. So I believe we have satisfied your curiosity.

Thank you for joining the call and the webcast. Once again, apologies for some technical issues at the very beginning. And we are looking forward to seeing some of you face-to-face in the coming weeks. And we are looking forward also to report our full year results, as already said, sometime in February, the precise date will be published in the current report shortly. Thank you, and goodbye.

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Jean-Marc Harion, Play Communications S.A. - Chairman of the Management Board & CEO [24]

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Goodbye.

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Operator [25]

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So that does conclude our conference for today. Thank you all for participating. You may all disconnect.