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 2026, 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:

• Continued favorable trends in ARPU supported positive service revenue performance throughout Q1 2026.
• Total revenue declined by 1.5% YoY, primarily driven by lower IT sales and the ongoing downscaling of handset export activities.
• Gross profit increased by 3.5% YoY, reflecting growth in telecommunication services and improved margin contribution from IT, despite lower sales volumes.
• EBITDA AL rose by 4.0% YoY in Q1 2026, resulting in a 7.5% YoY increase in adjusted net income.
• Capex after leases (excluding spectrum) increased by 17.9% to HUF 25.3 billion, reflecting accelerated investment in fixed and mobile networks, as well as expansion of data center capacity in Hungary.
• Spectrum capex amounted to HUF 15.1 billion, reflecting the recent renewal of the Company’s spectrum usage rights for 2x10MHz blocks in the 2100 MHz frequency band.
• Free cash flow rose to HUF 35.6 billion, primarily driven by improved profitability and favorable impact of the timing of capex-related creditor payments.

T ibor Rékasi, Magyar Telekom CEO commented:

“We have started 2026 with strong momentum, driven by disciplined execution and sustained demand for our core services. Continued fiber uptake and growing mobile data usage supported solid underlying trends and the quality of our revenues, while our commercial focus enabled stable ARPU development. During the quarter, we also strengthened our infrastructure and capabilities through targeted investments in fiber and data centre capacity, and renewed our 2100 MHz spectrum license on favourable terms.
While total revenues saw a modest year-on-year decline, our focus on value over volume and cost discipline translated into stronger profitability, with EBITDA AL up 4.0% and adjusted net income increasing by 7.5% year-on-year. Reflecting this strong start to the year and our confidence in continued execution, we are upgrading our full-year 2026 guidance to mid-single-digit growth in EBITDA AL and an around 10% increase in adjusted net income. Projected free cash flow generation is at least 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, 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.

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