Investor News

Budapest, February 25, 2025 17:30

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 fourth quarter and full year of 2024, 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 11.9% year-on-year (YoY) in Q4 2024, reflecting continued service revenue growth driven by strong demand for data and connectivity, and supported by the inflation-based fee adjustment across the Group’s Hungarian operations.
• Gross profit improved in line with revenue growth, increasing by 21.6% YoY in Q4 2024.
• EBITDA AL increased by 18.7% year-on-year in Q4 2024, due to improvements in gross profit which offset increases in indirect costs.
• Net income rose to HUF 36.3 billion (+56.1% YoY), while adjusted net income reached HUF 34.6 billion in Q4 2024, with underlying growth primarily driven by higher EBITDA contribution.
• Capex after lease excluding spectrum licenses increased by 7.8% year-on-year to HUF 113.3 billion in full year 2024, driven primarily by increased investment in Hungarian fixed gigabit network rollout.
• Free cash flow, excluding spectrum license fees, increased to HUF 165.1 billion for the full year of 2024 (2023: HUF 86.8 billion), reflecting strong improvement in profitability.
• The Board of Directors proposes a dividend payment of HUF 90.9 billion for the 2024 financial year, subject to approval at the Company’s Annual General Meeting on April 15, 2025. Additionally, the Board envisages a share buyback of up to HUF 39.1 billion, which, together with dividends, implies a payout ratio of up to 80% of the Group's adjusted net income.

Tibor Rékasi, Magyar Telekom CEO commented:

 

“2024 was a remarkable year for Magyar Telekom. Our steadfast commitment to digital transformation, customer-centric focus, and resilience enabled us to exceed 3.8 million gigabit-capable access points by year-end. We also successfully completed the multi-year radio network modernization project and full upgrade of our CRM system architecture.Our dedication to meeting the sustained strong demand for data and connectivity, combined with the positive effects of inflation-based fee adjustments, drove a notable revenue increase of 13.9% compared to 2023. Strong operational performance and disciplined cost management contributed to a year-on-year EBITDA AL growth of 29.1% and a Group adjusted net income increase of 73.7% year-on-year.

Driven by this strong performance, the Board has proposed a record-high total annual shareholder remuneration for FY24, comprising a total dividend payment of HUF 90.9 billion and a share buyback of up to HUF 39.1 billion. Looking ahead to 2025, our strategic priorities remain unchanged. The success achieved in digital transformation lays a strong foundation for the future. Combined with further inflation-based fee adjustments, this will support our goal of achieving revenue growth of 1%-3% in FY25. Furthermore, with the positive impact from the elimination of the supplementary telecommunication tax from 2025, we expect EBITDA AL to grow 12-15%. Our guidance for adjusted net income is approximately HUF 190 billion, with projected free cashflow generation of around HUF 180 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, 2023, 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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