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 second quarter and first half of 2026, in accordance with IFRS Accounting Standards as endorsed by the EU (hereinafter: half-year report). The half-year report contains unaudited figures for each reporting period.

Financial highlights:

• Total revenue rose moderately year-on-year in Q2 2026, driven by continued growth in telecommunication service revenue, more than offsetting lower IT sales and the negative foreign exchange-related impact upon consolidation.
• Gross profit increased by 1.2% year-on-year, supported by higher telecommunication service margins.
• EBITDA AL declined moderately in Q2 2026, reflecting the absence of one-off gains on subsidiary and lower income from real-estate sales, recorded in the prior-year period.
• Adjusted net income declined in line with the lower EBITDA
• Capex after lease (excluding spectrum licenses) remained broadly unchanged year-on-year in Q2 2026, as higher investment in fixed networks in Hungary was offset by significantly lower investment in North Macedonia
• Free cash flow (excluding spectrum licenses) for the first half of the year increased to HUF 90.5 billion, up HUF 4.5 billion year-on-year, as year-to-date improved profitability and favorable working capital changes related to the timing of creditor payments more than offset higher capex and income tax payments and absence of subsidiary sale proceeds.
• The execution of HUF 136.4 billion in dividend payments and HUF 46.3 billion of share buybacks during Q2 2026 increased net debt, leading to a higher net debt-to-EBITDA ratio as of end-June 2026.

Tibor Rékasi, Magyar Telekom CEO, commented:

"The first half of 2026 once again demonstrated the resilience of our business and the benefits of our disciplined execution. We continued to expand our subscriber base while maintaining favorable ARPU momentum, supporting sustained growth in telecommunication service revenue amid a dynamic external environment.
At the same time, we maintained our focus on network development. During the first six months of the year, we extended gigabit fixed access – across both fiber and HFC technologies - to a further 170 thousand end points, bringing the total number of gigabit-capable access points in Hungary to more than 4.2 million. In parallel, the migration of our 2G-based services to Yettel’s network has enabled us to repurpose spectrum to further enhance the quality of our 4G and 5G services.
As we enter the second half of the year, I remain confident in our outlook. Building on the momentum of the first half and supported by the introduction of the inflation-based fee adjustment in July, we remain on track to deliver the guidance we set out earlier this year.”

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, 2025, available on our website at http://www.telekom.hu 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.