April 23, 2020 / 6:16 AM / a month ago

BRIEF-Cyfrowy Polsat Expects Savings On Financial Costs Due To Interest Rate Cuts

April 23 (Reuters) - Cyfrowy Polsat SA:

* ANNOUNCED ON WEDNESDAY THE ESTIMATED IMPACT OF COVID-19 PANDEMIC ON THE GROUP’S OPERATIONS AND FINANCIAL PROSPECTS

* SAID THAT DURING THE INITIAL WEEKS OF COVID-19 PANDEMIC THE VOICE TRAFFIC IN GROUP’S MOBILE NETWORK GREW BY ABOUT 50%, WHILE THE VOLUME OF DATA TRANSMISSION INCREASED BY ABOUT 25% VERSUS BEFORE THE EPIDEMIC EMERGENCY STATE

* INCREASED USAGE OF TELECOMMUNICATION SERVICES SHOULD TRANSLATE INTO HIGHER RETAIL REVENUE FROM SERVICES BASED ON “PAY-AS-YOU-GO” TARIFF PLANS

* PARTIAL CLOSURE OF THE SALES NETWORK, ESPECIALLY POINTS OF SALES (POS) IN SHOPPING CENTRES, WAS A SIGNIFICANT NEGATIVE CONSEQUENCE OF THE RESTRICTIONS IMPOSED

* ABOUT 65% OF THE GROUP’S POS ARE OPERATIONAL, YET WITH SIGNIFICANTLY LOWER CUSTOMER TRAFFIC THAN BEFORE

* THE NUMBER OF RESIGNATIONS FROM EXISTING CUSTOMERS HAS FALLEN SIGNIFICANTLY, WHICH SHOULD HAVE A POSITIVE INFLUENCE ON THE CHURN LEVEL IN THE COMING MONTHS

* CLOSING OF PART OF THE PHYSICAL SALES NETWORK RESULTED IN A SIGNIFICANT DECREASE OF THE VOLUME OF EQUIPMENT SALES, WHICH WILL RESULT IN LOWER REVENUE FROM EQUIPMENT SALES IN THE COMING QUARTERS

* FOLLOWING INTEREST RATE CUTS BY A TOTAL OF 100 BASIS POINTS, THE GROUP EXPECTS SAVINGS ON FINANCIAL COSTS

* PURSUES PLANNED CAPEX PROJECTS WITHOUT ANY HINDRANCE

Source text: bit.ly/2XYSyLm

Further company coverage: (Gdansk Newsroom)

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