Magyar Telekom started 2026 with strong momentum, driven by disciplined execution and sustained demand for its core services.

The data usage of the company’s customers continues to increase: the average monthly data traffic per user on its mobile network reached 15.9 GB, which is almost 20% higher than in the previous year. The Hungarian customer base continues to grow: number of mobile SIM cards rose by 1.8% to 6.6 million, fiber broadband subscriptions increased by 10.6% to 1.1 milion and the number of IPTV subscriptions is by 2.4% higher and reached 1.4 million in the first quarter.

The company continues to support the growth of its customer base and their demands with high-quality networks, and serves them with its new product portfolio introduced in the first quarter.

Telekom rose the number of its gigabit-capable access points with more than 70 000, bringing the share of its fixed network that is gigabit-capable to 86%. Moreover, earlier this year, the company’s fixed broadband networks received the awards for Hungary’s Best Fixed-Line Network and Fastest Fixed-Line Network based on Ookla Speedtest measurements. Regarding the mobile network, the population- based outdoor 5G coverage is 86%, the network is prepared for the rollout of 5G SA. During the quarter, the company extended its 2100 MHz spectrum license until 2042, ensuring that this key frequency band can continue to provide customers nationwide with stable, fast, and reliable 4G and 5G mobile broadband data and voice services over the long term.

Long-term strategy and efficient operations continued to drive solid financial results. While total revenues saw a modest year-on-year decline by 1.5% to HUF 238.1 billion, the focus on value over volume and cost discipline translated into stronger profitability, with EBITDA AL up 4.0% to 101.4 billion, gross profit rising by 3.5% to HUF 155.3 billion and adjusted net income increasing by 7.5% to HUF 58.66 billion year-on-year compared to the previous year. EBIDTA AL margin reached 42.6% this quarter.

Magyar Telekom today reported its consolidated financial results for the first quarter of 2026, 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 declined by 1.5% year-on-year, amounting to HUF 238.1 billion in Q1 2026, as the continued growth in telecommunication service revenue driven by further uptake of mobile data and fixed broadband services was offset by the YoY decline in SI/IT and equipment revenues.

• Mobile revenue was broadly unchanged year-on-year, amounting to HUF 140.5 billion in Q1 2026, reflecting continued growth in mobile data revenue counterbalanced by the lower mobile equipment sales.
• Fixed line revenue increased moderately year-on-year, to HUF 78.3 billion in Q1 2026 as increases in fixed broadband and equipment revenues offset the decline in voice retail and data revenues.
• System Integration and IT revenue was lower by 16.0% year-on-year, amounting to HUF 19.3 billion in Q1 2026. The decline reflects different in-year project distribution dynamic and the absence of major projects which were present in the base period in Hungary. These combined offset the improvement in the North Macedonia SI/IT revenue.

Direct costs were lower by 9.7% year-on-year, at HUF 82.7 billion in Q1 2026, primarily driven by the reduction in SI/IT sales related and equipment costs.

Gross profit rose by 3.5% year-on-year, to HUF 155.3 billion in Q1 2026, thanks to higher gross profit from telecommunication services as well as the increase in the IT service contribution, despite its lower revenue base.

Indirect costs were up by 2.9% YoY, at HUF 46.1 billion in Q1 2026, stemming from increase in employee related expenses.

EBITDA increased by 3.8% year-on-year to HUF 109.2 billion in Q1 2026, thanks to improvements in gross profit; EBITDA AL was up by 4.0% year-on-year to HUF 101.4 billion in Q1 2026.

Depreciation and amortization (‘D&A’) expenses were moderately down year-on-year, at HUF 34.9 billion in Q1 2026.

Profit for the period rose by 8.6% year-on-year to HUF 60.4 billion in Q1 2026, reflecting the combined improvement in operating profit and financial results.

Profit attributable to non-controlling interests remained broadly unchanged YoY, amounting to HUF 1.5 billion in Q1 2026, as improvement in profitability at the North Macedonian operation was counterbalanced by the YoY weakening of the Macedonian denar against the forint.

Adjusted net income (adjusted profit attributable to owners of the parent) was up at HUF 58.7 billion in Q1 2026.