The Group operates in the following two segments:

1. retail business segment which relates to the provision of services to the general public, including digital television transmission signal, mobile services, the Internet access services, the mobile TV services, the online TV services and production of set-top boxes,
2. broadcasting and television production segment.

The Group conducts its operating activities primarily in Poland.

The activities of the Group are grouped into segment with distinguishable scope of operations where services are rendered and merchandise delivered in a specific economic environment, Activities of defined segments are characterized by different risk levels and different investment returns from those of the Group’s other segments.

Retail business segment includes:

• digital pay television services which primarily relate to direct distribution of technologically advanced pay-TV services and revenues are generated mainly by pay-TV subscription fees;
• mobile telecommunication postpaid services which generate revenues mainly from interconnection revenues, settlements with mobile network operators and subscription fees;
• providing access to broadband Internet which generates revenues mainly from traffic and subscription fees;
• online TV services (IPLA) available on computers, smartphones, tablets, SmartTV, game consoles and other TV equipment which generate revenues mainly from subscription fees and advertising on the Internet
• production of set-top boxes.

Broadcasting and television production segment consists mainly of production, acquisition and broadcasting of information and entertainment programs as well as TV series and feature films broadcasted on television channel in Poland. The revenues generated by the broadcasting and television production segment relate mainly to advertising and sponsorship revenues as well as revenues from cable and satellite operators.
Management evaluates the operating segments’ results based on EBITDA, The EBITDA reflects the Group’s ability to generate cash in a stable environment. The Group defines EBITDA as profit from operating activities increased by depreciation, amortization and impairment allowance, The EBITDA is not an EU IFRS measure and thus its calculations may differ among the entities.

The table below presents a summary of the Group’s revenues, expenses, acquisition of property, plant and equipment, reception equipment and other intangible assets as well as assets by operating segment for the year ended 31 December 2013:

* This item also includes the acquisition of reception equipment for operating lease purposes.
** includes non-current assets located outside of Poland in the amount of PLN 46.8 million (not in thousands)

All material revenues are generated in Poland.

It should be noted that the year ended 31 December 2013 is not comparable to the year ended 31 December 2012 as INFO-TV-FM was acquired on 30 January 2012, ipla platform was acquired on 2 April 2012 (allocated to the Retail segment), Polskie Media was acquired and RS TV was disposed on 30 August 2013 (both allocated to the Broadcasting and television production segment).

The table below presents a summary of the Group’s revenues, expenses, acquisition of property, plant and equipment, reception equipment and other intangible assets as well as assets by operating segment for the year ended 31 December 2012:

*This item also includes the acquisition of reception equipment for operating lease purposes.
** includes non-current assets located outside of Poland in the amount of PLN 54.5 million (not in thousands)

The accounting policies applied to both operating segments are described in note 6.

Reconciliation of EBITDA and Net profit for the period: