Budapest, February 22, 2023 17:35

Magyar Telekom (Reuters: MTEL.BU and Bloomberg: MTELEKOM HB, hereinafter the “Company”), the leading Hungarian telecommunications service provider, announces that following a review of the financial statements for 2022, its Board of Directors proposes a total shareholder remuneration, constituting of a dividend payment and share buybacks, of up to
HUF 44.06 billion which corresponds to approximately 70% of the consolidated adjusted net income earned in 2022.

The Board of Directors decided on setting a new shareholder remuneration policy for the 2022-2024 period last year. The policy envisages growth in annual shareholder remuneration as a combination of dividend payments and share buybacks with the total value of annual shareholder remuneration to be between 60% and 80% of the Group's consolidated annual adjusted “profit attributable to the owners of the parent” (adjusted net income) generated during the preceding financial year.

Having reviewed the 2022 financial performance of the Company, given the improvement in profitability, taken into account the current business environment and outlook and based on the shareholder remuneration policy, the Board of Directors believes that a year-on-year increase in total shareholder remuneration is justified. Consequently, the Board proposes a total annual shareholder remuneration (constituting of a dividend payment and share buybacks) of up to HUF 44.06 billion, corresponding to approximately 70% of the HUF 62.97 billion consolidated annual adjusted “profit attributable to the owners of the parent” (adjusted net income) generated during 2022.

Therefore, Magyar Telekom’s Board of Directors proposes for approval to the Company’s Annual General Meeting (“AGM”) a total dividend payment of HUF 29.46 billion for the 2022 financial year. Furthermore, the Board envisages the value of the buyback to be up to HUF 14.60 billion. The execution of the buyback is subject to the necessary authorization of the AGM.

Magyar Telekom expects to hold its AGM on April 19, 2023.The Board of Directors proposes the record date of the dividend payment to be on May 10, 2023 and the first day of dividend disbursement on May 19, 2023. Based on the number of outstanding shares (excluding treasury shares) as of today, the cash dividend amounts to an equivalent of HUF 30.60 per share. The dividend paid to shareholders entitled to receive a dividend on the record date will be calculated and paid based on the Company’s Articles of Association, so the Company distributes the dividends for its treasury shares among the shareholders who are entitled for dividends on the record date. The total number of issued shares and the number of treasury shares as of January 31, 2023 can be viewed here.