Cyfrowy Broadcaster Jumps on ‘Hefty’ Dividend Talk

Cyfrowy Polsat SA (CPS) climbed from a two-week low in Warsaw trading on speculation Poland’s largest television network may restart paying a dividend this year after fourth-quarter earnings exceeded analysts’ estimates.

The shares rose 6.1 percent to 17.3 zloty at the 5:30 p.m. close in Warsaw, the biggest gain since Dec. 11. The stock has increased 5.4 percent this year, while the benchmark WIG20 Index lost 3.9 percent.

Net income rose 59 percent to 121.6 million zloty ($38 million) on a “positive effect” of bond revaluation and lower debt-servicing costs, the Warsaw-based company said in a regulatory filing today. That exceeded the 99.1 million zloty average estimate in a Bloomberg survey of 12 analysts.

“The fourth-quarter numbers are very decent,” Piotr Janik, an analyst at KBC Securities in Warsaw, said in a note today. “We see room for a hefty dividend payment in 2013” after Cyfrowy’s net debt fell to less than twice earnings before interest, taxes, depreciation and amortization.

Cyfrowy, controlled by billionaire Zygmunt Solorz-Zak, last paid a dividend in 2010, according to data compiled by Bloomberg. The company could “theoretically” pay a dividend from 2012 profit and will decide on a payout after the first quarter, Chief Executive Officer Dominik Libicki said on Nov. 14.

The company plans to keep its net debt at less than twice its Ebitda this year even as it forecasts the Polish television ad market to shrink 4 percent to 6 percent in 2013, the broadcaster said in a presentation on its website today.

Cyfrowy, which offers services including satellite television broadcasting, mobile phone operations and wireless Internet access, increased the number of its pay-TV unit subscribers by 14,000 to 3.57 million.

To contact the reporter on this story: Piotr Bujnicki in Warsaw at

To contact the editor responsible for this story: Wojciech Moskwa at

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