Cyfrowy Polsat to sell non-core assets to sharpen business focus, warns of near-term profit hit

Oct 29 (Reuters) - Polish media and telecoms group Cyfrowy Polsat CPS.WA said on Thursday it planned to sell its energy and real estate assets to focus on its core business, a strategy it warned would hurt near-term profits, sending its shares falling 15%.

It expects the transformation to cause a 2% to 3% decline in annual core earnings at its telecommunications, media and technology unit over the next few years. This year's earnings before interest, taxes, depreciation and amortisation for the unit are seen at 2.9 billion zlotys ($734.8 million).

• The group's core business bundles mobile phone, broadband internet and pay-TV services for consumers and businesses

• Cyfrowy Polsat sees a return to growth from 2029, forecasting annual growth of 4% to 6% between 2029 and 2034 for the key unit

• Most proceeds from the asset sales will be used to reduce debt, as it aims to cut net debt to less than 2.5x its EBITDA by 2030

• The group also aims to restore its potential to pay dividends by 2030; it paid its last dividend of 1.20 zlotys per share in 2022

• The new 2027-2030 strategy marks a shift for the group, which had been expanding into green energy, following a period of management and ownership turmoil

($1 = 3.9466 zlotys)