Cyfrowy net profit doubles in fourth quarter

Poland’s largest media group Cyfrowy Polsat beat expectations  on profit in the fourth quarter, doubling to 76 million polish zlotys ($24.4 million) on the consolidation of broadcaster Polsat and lower costs of acquiring new clients. Analysts expected the group, which controls Poland’s top pay-TV platform with 3.55 million subscribers and 3.4 per cent higher year-on-year, to book a bottom line at 57 million zlotys. Cyfrowy’s incorporation of one of the country’s top two broadcasters TV Polsat helped the group make up for the cost of the 350 million euro ($459 million)of debt Cyfrowy took on for the Polsat buy. The group said on Monday that excluding Polsat’s results, its fourth-quarter net profit come in 96 per cent lower at 1.5 million zlotys. The same financial costs brought Cyfrowy’s full-year bottom line almost 40 per cent lower at 160 million. It added that it would refrain from dividend payouts until its net debt-to-EBITDA ratio fell below 2. The group said it ended 2011 with the ratio at almost 3. The market awaits Cyfrowy’s updates on plans concerning possible synergies after its controlling shareholder, Polish media mogul Zygmunt Solorz-Zak, completed the buyout of mobile operator Polkomtel last year.