Press Releases

Budapest, November 12, 2025 17:32

In the third quarter, the average monthly mobile data usage of residential customers increased to 17.7 GB, which is an 22 % rise compared to the previous year. Following the summer network promotion, more than 700 thousand new customers were able to experience the benefits offered by 5G. Since September, the company's fixed-line customers can also enjoy the XGSPON advanced optical network technology, capable of a theoretical 10 Gigabit, along with flexible, customizable packages tailored to their needs. In order to ensure the company can continue to serve the growing data demand at the highest standard, network developments continued in this quarter. It expanded the coverage of its optical network by establishing new gigabit-capable access points. The Group’s financial results are mainly driven by consistent financial performance and the increasing demand for data.

Thanks to Magyar Telekom's network developments, by the end of the third quarter of 2025, customers nationwide could connect to the company's network through a total of 3.96 million gigabit access points, as the company increased the number of its new gigabit-capable access points by an additional 63 thousand. Magyar Telekom's population-proportional outdoor 5G coverage stood at 86% in the third quarter. Network development continues to be one of Magyar Telekom's outstanding strategic goals, as it is the foundation of the company's main mission: the digitalization of Hungary.

In the third quarter, the number of SIM cards in use at the company was 6.6 million, the number of fixed broadband customers was 1.6 million, and the number of TV users was 1.4 million. The average mobile data usage of residential customers continues to increase steadily, reaching 17.7 GB in the third quarter. This represents an 22% increase compared to the same period last year. Magyar Telekom customers can continue to enjoy outstanding experiences and unique discounts through the Magenta Moments discount program. Its success is clearly demonstrated by the fact that the 1.6 million Magenta Moments members have used discount coupons more than 1.5 million times at nearly 260 partner companies participating in the program.

A highlight of the quarter was the launch of the nationwide XGSPON technology, which takes the home and business connectivity experience to a new level through multi-gigabit internet speeds. Residential customers can enjoy download speeds of up to 4 Gbps, while in the business segment, the network’s full available effective capacity — a symmetrical 8000/8000 Mbit/s — is available. The essence of this is that customers can choose additional services based on their own needs in addition to the core services, allowing them to personalize their subscriptions.

The Group’s financial results are mainly driven by consistent financial performance and the increasing demand for data. Service revenues grew by 2% to 167 billion forints compared to the previous year's results.

Gross profit increased by 1.4% year-on-year to 154 billion forints. EBITDA AL reached 101 billion forints in the third quarter, which is an 13.5% increase compared to the third quarter of 2024. As a result of fixed and mobile network development, Capital expenditure (CAPEX) amounted to 33 billion forints, representing an 41.7% increase compared to the data from a year ago.

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.”

Magyar Telekom today reported its consolidated financial results for the third quarter of 2025, in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU. The half-year report contains unaudited figures.

Highlights:

Total revenue declined by 1.3% year-on-year, amounting to HUF 242.9 billion in Q3 2025 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 revenue and lower equipment sales.

• Mobile revenue remained broadly unchanged year-on-year, amounting to HUF 144.8 billion in Q3 2025 , as the positive impact of the continued growth in mobile data revenue was offset by the decline in mobile equipment sales.
• Fixed line revenue remained at the same level year-on-year, amounting to HUF 77.5 billion in Q3 2025 as a combined impact of increases in fixed broadband and equipment revenues offset by lower voice retail and TV revenues, both partially reflecting the deconsolidation impact of ViDaNet.
• System Integration and IT revenue was lower by 13.3% year-on-year, amounting to HUF 20.6 billion in Q3 2025. The decline was driven by lower volume of asset sale projects in the Hungarian operation, the absence of positive impact from some major projects that were delivered in the base period, as well as different seasonality.

Direct costs were lower by 5.7% year-on-year, at HUF 89.0 billion in Q3 2025, as a result of lower SI/IT service-related as well as equipment costs which were also coupled with a decline in bad debt and telecom tax expenses.

• Interconnect costs were lower by 3.4% year-on-year, amounting to HUF 4.9 billion in Q3 2025.
• SI/IT service-related costs were lower by 18.8% YoY, amounting to HUF 13.9 billion in Q3 2025, in line with the year-on-year lower project volumes.
• Impairment losses and gains on financial assets and contract assets (bad debt expenses) improved by 24.3% YoY to HUF 2.8 billion in Q3 2025, thanks to more favorable aging of the receivables compared to the base period.
• Telecom tax declined by 3.4% year-on-year, amounting to HUF 5.9 billion in Q3 2025, primarily due to the lower mobile voice traffic generated by business customers.
• Other direct costs were lower by 1.4% year-on-year, amounting to HUF 61.5 billion in Q3 2025, driven by the lower equipment sales related costs.

Gross profit improved by 1.4% year-on-year to HUF 153.9 billion in Q3 2025, thanks to the higher service revenue contribution, lower bad debt and decline in telecom tax expenses.

Indirect costs were lower by 18.1% or HUF 10.1 billion year-on-year, at HUF 45.5 billion in Q3 2025, reflecting the positive impact from the elimination of the supplementary telecommunication tax and lower employee relate- expenses, which more than offset the moderate increase in the other indirect costs.

• Employee-related expenses were lower by 4.3% year-on-year, amounting to HUF 24.3 billion in Q3 2025, as the impacts of wage increase in effect from March 2025 at the Hungarian operation and from April 2025 at the North Macedonian operation were offset by the lower level of bonus accruals.
• Supplementary telecommunication tax was eliminated effective from January 1, 2025, resulting in a HUF 9.2 billion improvement year-on-year in Q3 2025.
• Other operating expenses (excluding supplementary telecommunication tax) increased moderately year-on-year, amounting to HUF 22.7 billion in Q3 2025, as the reduction in energy expenses coupled with the positive impacts from efficiency measures could mostly compensate for the inflationary price pressure impacting several cost lines.
• Other operating income amounted to HUF 1.5 billion in Q3 2025.

EBITDA increased by 12.7% year-on-year to HUF 108.4 billion in Q3 2025, driven by the improvement in gross profit coupled with lower indirect costs; EBITDA AL was up by 13.5% year-on-year to HUF 100.6 billion in Q3 2025.

Depreciation and amortization (‘D&A’) expenses amounted to HUF 35.3 billion in Q3 2025 , in line with previous tendencies.

Profit for the period rose by 25.1% year-on-year to HUF 57.5 billion in Q3 2025, driven primarily bythe growth in EBITDA.

• Net financial result improved from a loss of HUF 8.4 billion in Q3 2024 to a loss of HUF 5.5 billion in Q3 2025. Year-on-year lower net interest expense was primarily attributable to a reduction in the overall debt levels as well as higher interest received related to the liquidity balances. The favorable change in other finance expense year-on-year primarily reflects the more favorable FX change-related results.
• Income tax expenses were up by 28.9% year-on-year at HUF 10.1 billion in Q3 2025, driven by the year-on-year higher profit levels.

Profit attributable to non-controlling interests increased by 49.0% or HUF 0.7 billion year-on-year, amounting to HUF 2.1 billion in Q3 2025 , reflecting the YoY improvement in the underlying operation coupled with the absence of one-off expense that negatively impacted the results in Q3 2024.

Adjusted net income (adjusted profit attributable to owners of the parent) was up at HUF 55.2 billion in Q3 2025 and increased to an overall HUF 165.6 billion in the first nine months of 2025.

 

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