AGORA
The structure of the Agora Group, together with an indication of individual brands in each business segment, is as follows.
Transparency and transparency play a key role in all areas of our business.
Ladies and gentlemen!
The last 2 years have been a time of great uncertainty – both in the lives of each of us and the companies for which we work. Therefore, now – more than ever – the concept of corporate social responsibility is taking on a new dimension.
The increasingly perceptible climate changes, the effects of the COVID-19 pandemic, systematic attacks on democratic values in Poland, including, in particular, the growing number of repressions against independent media, have determined our reality in recent months. In 2021, we made efforts to ensure that the idea of sustainable development had an impact on every area of Agora's operations. We listened to the voices of our employees and external stakeholders and together, on the basis of a materiality study, we defined priority ESG issues, which we will include in our activities in the coming years. One of the key aspects is climate change. To deal with this issue, we have calculated the carbon footprint generated by Agora S.A. and the entire Group, which will allow us to accurately determine our environmental impact. It is necessary to develop an action plan to minimize the impact of the Agora Group on climate change. The basis for this will be the conclusions from the analysis of opportunities, threats and climate risks carried out last year. This is our signpost in the work on the "Environmental and Climate Policy". In addition, in this report you will find information on the activities of the Agora Group listed in the so-called EU Taxonomy – it is yet another step on the way to more effective environmentally sustainable business decision-making.
2021 was the second year in a row in which we dealt with the effects of the COVID-19 pandemic. Its outbreak prevented us from meeting the business objectives set out in the strategy for 2018-2022. Therefore, in 2022, we want to create a new plan for the Agora Group for 2023-2027, an integral part of which will be clearly defined ESG goals. Corporate social responsibility has always been in the DNA of Agora – the inception of the company was associated with providing access to reliable and proven information, building a civil society and protecting democratic values. For over 32 years of Agora's operation, our values have not changed, but the world is different, and the scale of our operations has also expanded. Today, as a strong media and entertainment group, we feel full responsibility to continue the mission that lies at the heart of the company and meet the challenges of today by utilizing our organization's full potential.
The year 2022 will therefore be a time of hard work and undertaking many new activities in the ESG area for the Agora Group. We realize how difficult this task is. However, we are determined to contribute to building a sustainable world with democratic values. Especially now it is gaining in importance. Since 24 February 2022, Russia has been attacking Ukraine and the democratic order of the world. We are witnessing violations of all principles of international law and human rights. Since the outbreak of the conflict, we have been involved in helping Ukraine, as well as reporting on the course of the war and its consequences for the citizens of Ukraine and the whole of Europe, so that the truth about these events and the scale of the drama unfolding just beyond our border reach the whole world.
Bartosz Hojka
President of the Management Board of Agora S.A.
The structure of the Agora Group, together with an indication of individual brands in each business segment, is as follows.
Basic information about the companies in which Agora S.A. holds stocks or shares (directly or indirectly), as shown in the table below:
List of Agora Group companies:
| 31 december 2021 | 31 december 2020 | |
|---|---|---|
| Subsidiaries consolidated | ||
| Agora TC Sp. z o.o., Warsaw | 100% | 100% |
| AMS S.A., Warsaw | 100% | 100% |
| AMS Serwis Sp. z o.o., Warsaw (1) | 100% | 100% |
| Agora Radio Group Sp. z o.o., (GRA), Warsaw | 100% | 100% |
| Doradztwo Mediowe Sp. z o.o., Warsaw (2) | 100% | 100% |
| IM 40 Sp. z o.o., Warsaw (2) | 72.0% | 72.0% |
| Inforadio Sp. z o.o., Warsaw (2) | 66.1% | 66.1% |
| Helios S.A., Lodz (7) | 91.5% | 91.4% |
| Next Film Sp. z o.o., Warsaw (3) | 91.5% | 91.4% |
| Next Script Sp. z o.o. , Warsaw (4) | 75.9% | 75.9% |
| Plan D Sp. z o.o., Warsaw | 100% | 100% |
| Optimizers Sp. z o.o., Warsaw | 100% | 100% |
| Yieldbird Sp. z o.o., Warsaw (6) | 95.8% | 92.1% |
| Goldenline Sp. z o.o., Szczecin (5) | 79.8% | 100% |
| Plan A Sp. z o.o., Warsaw | 100% | 100% |
| Agora Finanse Sp. z o.o. Warsaw | 100% | 100% |
| Step Inside Sp. z o.o., Lodz (3) | 82.3% | 82.3% |
| HRlink Sp. z o.o., Szczecin | 79.8% | 79.8% |
| Piano Group Sp. z o.o., Warsaw (1) | 92.0% | 92.0% |
| Joint ventures and associates accounted for the equity method | ||
| Instytut Badań Outdooru IBO Sp. z o.o., Warsaw (1) | 50.0% | 50.0% |
| ROI Hunter a.s., Brno | 23.9% | 23.9% |
| Eurozet Sp. z o.o., Warsaw | 40.0% | 40.0% |
| Companies excluded from consolidation and equity accounting | ||
| Polskie Badania Internetu Sp. z o.o., Warsaw | 16.7% | 16.7% |
(1) indirectly through AMS S.A .; (2) indirectly through GRA Sp. z o.o .; (3) indirectly through Helios S.A .; (4) indirectly through Next Film Sp. z o.o .; (5) indirectly through HRlink Sp. z o.o., acquisition of shares in Goldenline Sp. z o.o. by HRlink Sp. z o.o. on January 28, 2021; (6) acquisition of additional shares on April 15, 2021; (7) acquisition of additional shares on October 29, 2021.
Table: Agora Group's financial results at the end of 2021
(1) particular sales positions, apart from revenues from ticket sales, concession sales in cinemas and gastronomic sales, include sales of the Agora’s Publishing House and film activities (functioning within the Movies and Books segment), described in details in point IV.A in this report; (2) in 2021, the Group amended the presentation of gastronomic sales, these revenues include activities of companies Step Inside Sp. z o.o. and Foodio Concepts Sp. z o.o. (till 2 June, 2020), in the previous periods presented in line Other sales, the comparative information has been restated accordingly; (3) in 2021, the Group amended the presentation of revenues from sale of printing services, these revenues are presented in line Other sales, the comparative information has been restated accordingly; (5) cost of restructuring in Internet segment in the second quarter of 2020; (6) profit from the sale of a server building and land located at Daniszewska Street in Warsaw; (7) the amount includes impairment losses on fixed assets of the companies Agora S.A. (real estate after a closed printing facility in Tychy, website Odeszli.pl), Helios S.A, AMS Group in 2021 and companies Plan D Sp. z o.o. (formerly Domiporta Sp. z o.o.), Foodio Concepts Sp. z o.o., Helios S.A., Agora S.A. and AMS Group in 2020, the impairment losses were mainly related to tangible fixed assets and intangible assets, including goodwill of Domiporta Sp. z o.o. in 2020; (8) the amount of the operating result–EBIT, EBITDA and net loss excluding impact of International Financial Reporting Standard no. 16 Leases; (9) relates to revaluation of put option liabilities granted to non-controlling shareholders of Helios S.A., Piano Group Sp. z o.o. and HRlink Sp. z o.o.; (10) the performance measure “EBITDA” is defined as EBIT increased by depreciation and amortization and impairment losses of property, plant and equipment, intangible assets and right-of-use assets. Detailed information on definitions of financial ratios are presented in the Notes to part IV of this MD&A. Wyniki finansowe Grupy Agora
w mln PLN
I-IVQ2021
I-IVQ2020
% change
Total sales (1):
965.9
836.5
15.5%
Advertising revenue
509.4
452.2
12.6%
Ticket sales
126.8
84.6
49.9%
Copy sales
142.8
133.8
6.7%
Concession sales in cinemas
62.4
37.2
67.7%
Gastronomic sales (2)
28.7
19.3
48.7%
Revenues from film activities
12.7
34.1
(62.8%)
Other (3)
83.1
75.3
10.4%
Operating cost net, including:
(1 007.8)
(948.2)
6.3%
External services
(360.4)
(333.5)
8.1%
Staff cost
(315.8)
(265.1)
19.1%
Raw materials, energy and consumables
(98.9)
(95.5)
3.6%
D&A
(161.4)
(162.9)
(0.9%)
Promotion and marketing
(47.6)
(40.7)
17.0%
Cost of restructuring (4)
-
(1.4)
-
Gain on sale of property (5)
-
7.1
-
Gain on sale of the enterprise (6)
-
3.6
-
Impairment losses (7)
(4.9)
(38.0)
(87.1%)
Operating result – EBIT
(41.9)
(111.7)
62.5%
Operating result - EBIT excl. IFRS 16 (8)
(27.1)
(93.1)
70.9%
Finance cost, net, incl.:
(17.5)
(48.4)
63.8%
Income from short-term investment
0.1
0.3
(66.7%)
Costs related to bank loans and leasing
(19.6)
(20.1)
(2.5%)
including interest costs related to IFRS 16
(13.8)
(14.2)
(2.8%)
Foreign exchange (losses) / gains
2.1
(37.3)
-
including interest costs related to IFRS 16
2.2
(37.5)
-
Revaluation of put options (9)
-
11.3
-
Share of results of equity accounted investees
9.4
7.4
27.0%
Profit/(loss) before income tax
(50.0)
(152.7)
67.3%
Income tax
3.4
22.5
(84.9%)
Net profit/(loss) for the period
(46.6)
(130.2)
64.2%
Net profit/(loss) for the period excl. IFRS 16 (8)
(25.3)
(73.4)
65.5%
Attributable to:
Equity holders of the parent
(44.5)
(117.2)
62.0%
Non - controlling interest
(2.1)
(13.0)
83.8%
EBIT margin (EBIT/Sales)
(4.3%)
(13.4%)
9.1pt%
EBIT margin excl. IFRS 16 (8)
(2.8%)
(11.1%)
8.3pt%
EBITDA (10)
124.4
89.2
39.5%
EBITDA margin (EBITDA/Sales)
12.9%
10.7%
2.2pt%
EBITDA excl. IFRS 16 (8)
73.8
38.2
93.2%
EBITDA margin excl. IFRS 16 (8)
7.6%
4.6%
3.0pt%
Until the outbreak of the pandemic in March 2020, the Agora Group consistently implemented the strategy adopted for 2018-2022, the pillars of which were:
Due to the outbreak of the COVID-19 pandemic in 2020 and its effects on the Group's business operations, it was necessary to verify previous plans and adapt activities to a completely new reality. In 2021, the Agora Group focused on restarting the businesses frozen as a result of the pandemic and rebuilding the financial result. More information on the results of these activities is presented in the Agora Group's financial statements for 2021.
On 9 June 2021, the Management Board of the Company announced the commencement of the process of reviewing strategic options for the Group's internet operations, including on the plan to merge the current Press segment with the Gazeta.pl division into one business area. On 16 February 2022, the Management Board of Agora S.A. decided to extend this process to all areas of the Agora Group's operations as part of work on the preparation of the Agora Group's development strategy for 2023-2027.
The company plans to complete work on a new strategic perspective in 2022. ESG issues will be taken into account in the new strategy of the Agora Group.
Agora S.A. has been listed on the Warsaw Stock Exchange since 1999, and has been operating on the media market for over 30 years. The company started its operations in 1989 with the publishing of the first edition of the nationwide daily newspaper Gazeta Wyborcza, which remains one of the most popular dailies in the country. The current shareholding structure is published on Agora's corporate website and available at: www.agora.pl/en/akcje-i-akcjonariat.
Currently, Agora and its subsidiaries form the Agora Group, which conducts business activities in the following segments:
Since 2010, when the company Helios S.A. was acquired, Agora has been developing its cinema and film activities. The company owns the Helios cinema network – the largest multiplex network in Poland in terms of the number of facilities, which is appreciated by thousands of cinema fans. Helios currently operates 52 modern cinemas with291 screens, 15 Helios Dream screening rooms and a total of almost 55,000 places (data at the end of 2021). On the other hand, through the NEXT FILM company, Agora is involved in film distribution and production – so far it has introduced many Polish and foreign titles to the cinemas, and has also supported the creation of several Polish productions. In 2021, thanks to NEXT FILM, following films hit the cinemas: Autumn Girl by Katarzyna Klimkiewicz, Black Sheep by Aleksander Pietrzak or In-laws by Kuba Michalczuk. The films from company’s portfolio are also available in other distribution channels – on VOD platforms, including Netflix. Agora also actively supports Polish authors: writers, publicists, reporters, musicians and filmmakers. The company developed its publishing activity in a natural way – Agora Publishing House, which has been operating for over 15 years. It is currently a recognized Polish publisher specializing in non-fiction and biographies, although the offer also includes historical books, guides, interviews, as well as classic, genre and popular literature. Agora is also the Polish publisher of books by Michelle Obama, Barack Obama, Anne Applebaum, Hunter Biden and the latest book by Bill Gates. Agora's publishing activity in 2021 was appreciated by the industry. In Top Brand 2021 ranking, covering as many as 500 of the strongest media brands in Poland from 50 industries, Agora Publishing House was listed 5th among the most recognizable brands in the book publishing category and 267th in the overall ranking. In 2021, the Agora Publishing House launched a new publishing line with books for children – the Agora Publishing House for Children, offering several books, including two charity publications. The income from the sale of titles published for charity purposes was allocated, inter alia, to co-financing a helpline for children and teenagers and psychological help for charges of the ISKIERKA Foundation struggling with cancer. The Agora Publishing House also produces and distributes music as part of Agora Muzyka (Agora Music) and Agora Digital activities, as well as films on DVD and BluRay, which makes its profile unique on the Polish market. In addition, Agora, as part of its publishing activities, also runs two online bookstores: Publio.pl, offering over 40 thousand e-books, audiobooks and several hundred digital press titles, as well as Kulturalnysklep.pl selling, among others, books by the Agora Publishing House, CDs and vinyls with music by famous artists, films on DVD, as well as press publications. The activities of the Agora Group also include the catering market - through Step Inside, a company belonging to the Helios group, which operates restaurant premises under the Pasibus brand. Pasibus eateries are located in shopping malls, on the main streets of the cities and on popular promenades. The brand is present, among others, in Wrocław, Gdańsk, Poznań, Łódź and Warsaw. The first Pasibus restaurant created in cooperation with Helios was opened in the Młociny Shopping Center in Warsaw, with the next ones in Opole, Olsztyn and Katowice. Currently, the Pasibus network includes 10 premises opened in cooperation with the Helios company. Gazeta Wyborcza has been the largest opinion-forming daily in Poland for many years. It is a reliable source of information and an important platform for public debate – it explains the world, raises important topics and engages in nationwide and local social, educational and cultural campaigns. Ecology is an important topic on the pages of the newspaper – many important topics related to environmental protection were publicized by the editorial office as the first medium in Poland. In 2021, Gazeta Wyborcza published the Climate declaration, in which it clearly states the plans for developing the Climate and Environment department, which was launched by Wyborcza.pl in February last year, aiming to publish more than before about what is happening both in Poland and in the world regarding ecology and climate. Gazeta Wyborcza is valued and awarded for the quality of journalism, innovation and commitment to social issues. Journalists of Wyborcza support the most important national and local social, educational and cultural campaigns. In recent years, the daily topped the ranking of the strongest Polish brands in media - Top Marka three times and was a laureate of many prestigious awards in Poland and in the world, including European Newspaper Awards. Gazeta Wyborcza is also a leader in the digital press transformation process in Poland. It was the first to introduce a system of limited access to its content (paywall) and a digital subscription offer. At the end of December 2021, the community of subscribers of the digital edition of Gazeta Wyborcza numbered over 286 thousand. Almost every issue of Gazeta Wyborcza includes additional content published as part of thematic weeklies. These include: Duży Format, Co Jest Grane 24, Wolna Sobota, Ale Historia and Wysokie Obcasy. Agora is also a publisher of magazines and related websites operating within the Wyborcza.pl group. These include Wysokie Obcasy Extra – an exclusive monthly for young, ambitious, world-curious and looking for inspiration women; Wysokie Obcasy Praca – a magazine about passion, life, psychology, science and technology, which inspires and helps women achieve their professional goals without losing their personal lives, and Książki. Magazyn do czytania (Books. Magazine for reading) – bimonthly, which is a fascinating guide to new publications - both in Poland and abroad. Agora currently also has one printing house located in Warsaw. Agora's internet portfolio includes several dozen websites, mobile applications and video formats offered by Gazeta.pl and related websites. The Agora Group also includes companies that conduct Internet activities, including Yieldbird, a programmatic advertising company and the HRlink Group, which provides modern tools for online recruitment. Agora also owns shares in the Czech technology marketing company ROI Hunter, the official marketing partner of Facebook and Google. The AMS company belonging to the Agora Group is the leader of Out-of-Home (OOH) advertising in Poland. It operates in the field of classic and digital OOH, with 22 thousand advertising spaces*. The company's mission is to implement effective advertising campaigns for clients using the widest portfolio of panels on the market, based on modern ideas and tools. AMS is also a leader in the segment of city furniture in Poland – it has equipped more than 30 cities with them, installing several thousand bus or tram shelters. The company has completed pioneering investments on the Polish market in the revitalized areas of Szczecin, Warsaw and Wrocław. Additionally, AMS engages and initiates social and environmental actions - it is a pioneer in combining advertising solutions with ecological activities and cultural projects promoting artists or publicizing social problems. * not taking into account the advertising space on buses and trams, and ATM, Cityinfo and MoveTV screens. Agora's radio brands offer a wide range for listeners and Internet users interested in the latest news, entertainment and music. All this is ensured by Radio TOK FM (supra-regional station covering 23 urban areas), Radio Złote Przeboje (24 local stations), Radio Pogoda (8 local stations), Rock Radio (4 local stations) and the news portal tokfm.pl. Thanks to them, the Agora Radio Group reaches a wide variety of recipients. Agora also owns a 40% stake in Eurozet, the broadcaster of, inter alia, Radio ZET. Radio TOK FM also offers access to its archive of broadcasts and special podcasts as part of the TOK FM platform, which has a total of over 75 thousand audio materials. By the end of 2021, the number of Premium TOK FM accesses to this content sold via tokfm.pl or the TOK FM application amounted to nearly 26.2 thousand. The broad portfolio of Agora Radio Group also gives many opportunities to advertisers who can take advantage of advertising activities offered by the Agora Radio Group on air and on the Internet, as well as advertising packages created jointly by Agora's media and other radio broadcasters. The sales department of Agora Radio Group with Doradztwo Mediowe and Tandem Media teams are responsible for the sale of advertisements on radio and internet services.AGORA
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The activities and projects carried out by the Agora Group have been appreciated by our stakeholders for years, including recipients, experts and industry organizations around the world. Our brands and media also in 2021 won numerous awards and distinctions, placing themselves at the forefront of the industry on the Polish and foreign markets. Full information on this subject is published on an ongoing basis on Agora's corporate website and available at: www.agora.pl/en/press-room.