Investor News

Magyar Telekom first quarter 2024 results

Budapest, May 15, 2024 17:30

Magyar Telekom (Reuters: MTEL.BU and Bloomberg: MTELEKOM HB, hereinafter: Company), the leading Hungarian telecommunications service provider, today reported its consolidated financial results for the first quarter of 2024, in accordance with IFRS Accounting Standards as adopted by the EU (hereinafter: quarterly financial report). The quarterly financial report contains unaudited figures.

Financial highlights:

Financial results


  • Group revenue increased by 14.5% year-on-year in Q1 2024, owing to continued growth in mobile data and fixed broadband service uptake and the positive effects of inflation-based fee adjustments in the Hungarian operation.
  • Gross profit improved in line with revenue trends, growing 18.7% year-on-year in Q1 2024.
  • Indirect costs were lower by 9.3% year-on-year in Q1 2024, reflecting of more favorable energy costs coupled with the positive impact from the elimination of the utility tax which together offset the increases in employee related expenses, and the supplementary telecommunication tax.
  • EBITDA AL, consequently, increased by 51.4% year-on-year in Q1 2024, with majority of the improvement stemming from the growth in gross profit performance that was coupled with positive impact of the repeal of the utility tax.
  • Net income in Q1 2024 amounted to HUF 33.7 billion, against HUF 10.5 billion in Q1 2023, reflecting EBITDA growth partly mitigated by higher D&A and income tax expense.
  • Adjusted net income was HUF 38.1 billion in Q1 2024, representing a HUF 25.9 billion increase year-on-year, in line with improvements in underlying profitability.
  • Capex after lease excluding spectrum licenses was down 16.1% year-on-year, amounting to HUF 19.7 billion in Q1 2024, driven by different within-year dynamic of the annual CPE procurements in Hungary and the absence of accelerated investments to RAN modernization and seasonally lower TV content capitalization costs in North Macedonia.
  • Free cash flow, excluding spectrum license fees, amounted to cash outflow of HUF 0.9 billion in Q1 2024, representing an improvement of HUF 9.8 billion year-on-year. Improvements driven by the profitability growth was partially mitigated by higher working capital needs related to the expanding revenue base and different vendor outpayment dynamics.

Tibor Rékasi, Magyar Telekom CEO commented:


“I am pleased to report a strong first quarter of 2024 for Magyar Telekom, both financially and operationally. Revenue increased by 14.5% year-on-year, while EBITDA AL grew by 51.4% thanks to a strong top line performance and the positive impact of the termination of the utility tax. Operationally, we continued to progress our key strategic initiative, the Digitization of Hungary, adding new gigabit-capable access points to our fixed network to reach over 3.7 million households and businesses with this technology. We also made good progress in the radio network modernization of our mobile network, reaching an 82% readiness by the end of March 2024. Our focus on offering seamless connectivity and an outstanding customer experience is paying off and we were able to satisfy our customers’ growing demand for mobile data and fixed broadband services.

Looking ahead, we remain committed to maintaining our solid market positions and operational momentum, allowing us to meet our public targets for Revenue and EBITDA AL. Whilst with regards to adjusted net income we now target to reach ca. HUF 140 billion and with regards to the free cashflow to reach ca. HUF 130 billion thanks to the more favorable than anticipated yield environment and the lower deterioration in working capital.

Public targets


This investor news contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore should not have undue reliance placed upon them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors are described in, among other things, our annual financial statements for the year ended December 31, 2023, available on our website at which have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB) and adopted by the European Union.