In the fourth quarter and throughout the full financial year of 2025, Magyar Telekom continued its systematic expansion to achieve its digitalization and business objectives.

The primary driver of its performance remained the growing demand for data: the average monthly mobile data usage per customer reached 17.8 GB, representing an 18 % increase compared to the previous year. In December, the average daily data traffic on the company’s mobile network amounted to 2877 TeraBytes, 24 % higher year-on-year. On the fixed network, average daily data traffic increased 17 % over the year, reaching 47.8 PetaBytes in December.

To ensure premium-quality service amid rising data demand, the company continues to expand capacity and modernize its existing networks. During the year, it increased the number of mobile cells by one-fifth, continuously densified its 5G network, and further built out the 3.5 GHz radio layer, which provides a stable foundation for an even faster and more reliable network in the future. By the end of 2025, its population-based outdoor 5G coverage reached 86 %.

In addition to mobile developments, the company maintained a strong focus on optical network expansion. It achieved its related annual target and, with the addition of 250 thousand new access points, its nationwide gigabit-capable footprint now exceeds 4 million access points.

In 2025, Magyar Telekom also renewed both its mobile and home service portfolios. The new packages offer customizable services, enabling tailored solutions to meet individual customer needs.

To enhance efficiency and deliver the highest level of customer service, the company continued its IT simplification and modernization initiatives. The ongoing OSS (Operational Support System) transformation further improves operational efficiency and enables faster response times to emerging customer needs, for example in network development projects.

The consistent execution of the business strategy, efficiency initiatives, ongoing developments, and disciplined cost management resulted in strong financial performance in 2025. Total revenue increased by 1.7 % year-on-year to nearly HUF 984 billion. EBITDA AL rose by 16.1 % compared to the previous year, while adjusted net income exceeded 207 billion, marking an 27.5 % increase year-on-year.

The evolution of results was also supported by the phase-out of the telecommunications surtax, as well as one-off items such as the sale of ViDaNet Zrt. and the disposal of certain real estate assets.

Based on the 2025 results, the Board of Directors is once again proposing a record-high shareholder remuneration, with total dividend payments of HUF 136.4 billion and a share buyback of up to HUF 50 billion.

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.

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.”

Magyar Telekom today reported its consolidated financial results for the fourth quarter and full year of 2025, in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU. The financial report contains unaudited figures for each reporting period.

Main results:

Total revenue was up by 0.6% year-on-year, amounting to HUF 258.1 billion in Q4 2025, thanks to the continued growth in telecommunication service revenue driven by further uptake of mobile data and fixed broadband services as well as the YoY increase in equipment sales, which combined, offset the YoY decline in SI/IT revenue.

- Mobile revenue increased by 2.7% year-on-year, amounting to HUF 152.9 billion in Q4 2025, driven by the positive impact of the continued growth in mobile data revenue and higher mobile equipment sales.

- Fixed line revenue remained at the same level year-on-year, amounting to HUF 80.8 billion in Q4 2025 as increases in fixed broadband and equipment revenues were offset by lower voice retail and TV revenues, both of the latter partially reflecting the deconsolidation impact of ViDaNet.

- System Integration and IT revenue was lower by 8.9% year-on-year, amounting to HUF 24.4 billion in Q4 2025. The decline reflects weaker demand in the Hungarian market, including the absence of major projects, which were present in the base period.

Direct costs were higher by 1.8% year-on-year, at HUF 109.5 billion in Q4 2025, as a result of higher equipment costs which was also coupled with an increase in bad debt expense.

Gross profit was broadly unchanged year-on-year, amounting to HUF 148.6 billion in Q4 2025, as higher gross profit from telecommunication services was offset by the decline in SI/IT service contribution.

Indirect costs were lower by 15.3% or HUF 9.7 billion year-on-year, at HUF 53.8 billion in Q4 2025, primarily driven by the positive impact from the elimination of the supplementary telecommunication tax.

EBITDA increased by 10.9% year-on-year to HUF 94.8 billion in Q4 2025, reflecting the absence on the supplementary telecommunication tax; EBITDA AL was up by 12.2% year-on-year to HUF 87.1 billion in Q4 2025.

Depreciation and amortization (‘D&A’) expenses increased by 4.5% year-on-year, to HUF 36.4 billion in Q4 2025, reflecting higher software-related depreciation expenses.

Profit for the period rose by 18.2% year-on-year to HUF 44.7 billion in Q4 2025, driven primarily by the growth in EBITDA.

Profit attributable to non-controlling interests increased by 15.1% year-on-year, amounting to HUF 1.8 billion in Q4 2025, reflecting improvement in profitability at the North Macedonian operation.

Adjusted net income (adjusted profit attributable to owners of the parent) was up at HUF 41.8 billion in Q4 2025.