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 fourth quarter and full year of 2025, in accordance with IFRS Accounting Standards as endorsed by the EU (hereinafter: quarterly financial report). The quarterly financial report contains unaudited figures for each reporting period.

Financial highlights:

• Group revenue increased 0.6% YoY in Q4 2025, driven by growth in telecommunication revenues, which was partially offset by lower revenue from System Integration and IT (‘SI/IT’) services.
• Gross profit for the quarter remained broadly stable YoY, as growth from telecommunication services was offset by lower contribution from SI/IT, consistent with revenue trends.
• EBITDA AL increased 12.2% YoY in Q4 2025, attributable primarily to the absence of the supplementary telecommunication tax expense.Adjusted net income rose by 20.8% YoY to HUF 41.8 billion in Q4 2025, and by 27.5% YoY to HUF 207.4 billion for the full year, driven by the higher EBITDA contribution and a decline in financial expenses.
• Capex after leases increased 19.2% to HUF 135.1 billion in 2025, reflecting continued strategic investment in fixed and mobile networks across both countries of operation, reinforcing the Company’s commitment to network quality and long-term competitiveness. This trend also incorporates a higher YoY asset retirement obligation in Hungary.
• Free cash flow grew by HUF 54.5 billion YoY to HUF 220.9 billion in 2025, primarily attributable to strong improvement in profitability and the cash inflow related to the sale of ViDaNet.
• The Board of Directors proposes a dividend payment of HUF 136.4 billion for the 2025 financial year, subject to approval at the Company’s Annual General Meeting on April 8, 2026. Additionally, the Board envisages a share buyback of up to HUF 50.0 billion, which, together with dividends, implies a payout ratio of up to ca. 90% of the Group’s adjusted net income.

Tibor Rékasi, Magyar Telekom CEO commented:

“2025 marked an important year for Magyar Telekom. Consistent execution against our strategic priorities - digital transformation, a strong customer-centric approach and operational resilience – translated into robust financial performance. Continued investment in our fixed network, including the rollout of an additional 250,000 gigabit-capable access points, expanded our footprint to over 4.0 million gigabit-capable access points by year-end.

Successfully addressing accelerating demand for data and connectivity was a key achievement, with refreshed fixed and mobile propositions tailored to evolving customer needs translating into positive customer base momentum. This performance, combined with disciplined cost management and the elimination of the supplementary telecommunication tax, delivered year-on-year EBITDA AL growth of 16.1% and an increase in Group adjusted net income of 27.5%, reinforcing the strength of our operating model and our ability to generate sustainable shareholder value.

On the back of this strong performance, the Board has proposed a record-high total shareholder remuneration for FY25, comprising dividend payments of HUF 136.4 billion and a share buyback of up to HUF 50.0 billion.

Looking ahead to 2026, our strategic priorities remain unchanged. The progress achieved in digital transformation provides a strong foundation for continued value creation. Supported by further growth in service revenue, and notwithstanding risks affecting certain other revenue streams, we expect low-single-digit growth in Group revenue and EBITDA AL in FY26. Adjusted net income is expected to grow at a mid-single-digit rate, with projected free cashflow generation of approximately HUF 200 billion.

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, 2024, 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.

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