Our ambition is to be an agile company, digital and flexible, with a strong online presence and highly automated processes, as well as a proven ability to cut costs and find efficiency savings. This approach is reflected in both our commercial activity and our financial results.
In 2021 we continued with our redefined commercial approach: to become more selective and more balanced between volume and value. In 2018, we took a major step by introducing the first ever tariff increases on the consumer market according to a ‘more for more’ formula. This followed a number of valueaccretive moves in prior years: reduction of handset subsidies, simplification of tariff structure, cancellation of value-dilutive promotions and bonuses, and changes in tariff features encouraging customers to migrate to more expensive tariffs. In 2021 we also continued to optimise the distribution channel mix.
In 2021 we continued our comprehensive transformation programme to simplify, and where possible to automate and digitise our business processes. Despite the continued cost transformation, indirect costs were 3% year-on-year higher in 2021 as a result of certain key factors. Firstly, they benefitted from our ongoing cost transformation with savings mainly coming from labour, CRM subcontracting services and general expenses. Secondly, the year-on-year comparison reflects the positive impact of COVID crisis-related mitigating measures in 2020, mainly a PLN 64 million one-off due to curtailment of jubilee awards scheme. And thirdly, in 2021 our advertising and promotion costs accelerated after pandemic-related slowdown in 2020.
