Investor News

Budapest, November 12, 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 third quarter and first nine months 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 was 1.3% lower year-on-year (YoY) in Q3 2025 due to weaker System Integration and IT (‘SI/IT’) revenues and lower equipment sales. However, service revenues continued to grow supported by sustained demand for data and connectivity, which helped to offset the impact of the ViDaNet fixed-line subsidiary deconsolidation.
• Gross profit improved by 1.4% YoY in Q3 2025, thanks to a combination of higher telecommunication service revenues and lower bad debt and telecom tax expenses.
• EBITDA AL increased by 13.5% year-on-year in Q3 2025, attributable primarily to the improvements in gross profit and the absence of the supplementary telecommunication tax expense.
• Adjusted net income rose by 20.0% YoY to HUF 55.2 billion in Q3 2025, and by 29.4% YoY to HUF 165.6 billion in the first nine months of 2025, driven by the higher EBITDA contribution.
• Capex after lease in the first nine months of 2025 amounted to HUF 82.5 billion, an increase of 18.2% or HUF 12.7 billion YoY. This rise reflects continued strategic investments in the fixed and mobile networks across both countries of operation, reinforcing the Company’s commitment to network quality and long-term competitiveness. It also includes a higher asset retirement obligation in Hungary.
• Free cash flow increased by HUF 71.4 billion YoY to HUF 179.8 billion in the first nine months of 2025. Improvement is primarily attributable to strong growth in the profit level, positive working capital developments and cash inflow from the sale of ViDaNet.

Tibor Rékasi, Magyar Telekom CEO commented:

“I am pleased to report on our continued progress on strategic priorities in the third quarter. We have advanced the rollout of our gigabit network, enabling more customers to enjoy gigabit speeds and superior connectivity. Our focus on service quality and customer satisfaction also guided the refresh of our fixed portfolio in September, giving customers the flexibility to tailor their core services with add-ons – just as they can with our mobile offering.

These efforts are reflected in our third-quarter results, where we delivered 2% growth in service revenue and a robust 13.5% increase in EBITDA AL. Both were driven by sustained demand for data and connectivity, confirming that our ongoing investments in gigabit infrastructure are delivering tangible results.”

 

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.

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