Budapest, May 14, 2025 08:00

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 2025, in accordance with IFRS Accounting Standards as adopted by the EU (hereinafter: quarterly financial report). The quarterly financial report contains unaudited figures for each reporting period.

Financial highlights:

• Group revenue rose 7.8% year-on-year (YoY) in Q1 2025, driven by sustained strong demand for data and connectivity and higher System Integration and IT (‘SI/IT’) revenues, whilst also supported by the impact of the inflation-based fee adjustment in the first two months of the year.
• Gross profit improved by 10.7% YoY in Q1 2025, reflecting the growth in both telecommunications and SI/IT revenues.
• EBITDA AL increased by 26.7% year-on-year in Q1 2025, thanks to improvements in gross profit coupled with the absence of the supplementary telecommunication tax expense.
• Net income rose to HUF 54.2 billion (+60.8% YoY), with adjusted net income reaching HUF 54.6 billion in Q1 2025, driven by the higher EBITDA contribution.
• Capex after lease increased by 8.9% year-on-year to HUF 21.5 billion in Q1 2025, reflecting increased network related investments in Hungary as well as in North Macedonia.
• Free cash flow rose to HUF 28.5 billion for Q1 2025 (up 29.4 billion YoY), reflecting the improvement in profitability coupled with more favorable working capital developments.

Tibor Rékasi, Magyar Telekom CEO commented:

"“In the first quarter of 2025, we continued to deliver on our commitment to digital transformation, customer-centricity and resilience. Our strong focus on meeting our customers’ data needs – across both mobile and fixed networks – contributed to an 7.8% year-on-year increase in Magyar Telekom Group revenue.
We also made significant progress in expanding our gigabit-capable network, adding 58,000 new access points during the quarter. Following the recent upgrade of our CRM system, we entered a new phase of monetization, leveraging the enhanced architecture to further strengthen our resilience.
TIBOR COMMENTED”

Looking ahead, our strategic priorities remain firmly in place, and we reiterate our full-year 2025 guidance.”

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.

.