MAGYAR TELEKOM RESULTS FOR THE FIRST QUARTER OF 2024
Budapest, May 15, 2024 17:35
Magyar Telekom today reported its consolidated financial results for the first quarter of 2024 , in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU. The quarterly financial report contains unaudited figures.
Highlights:
Total revenue increased by 14.5% year-on-year to HUF 224.2 billion in Q1 2024 . This improvement was driven by strong growth in mobile data revenues and increases in fixed broadband revenue, both reflecting the underlying business growth whilst the positive impact of the inflation-based fee adjustment in Hungary led to higher subscription fee revenues across all service lines. These increases were now coupled with higher revenues from mobile and fixed equipment sales as well.
Mobile revenue rose by 16.6% year-on-year to HUF 130.9 billion in Q1 2024 , driven by the continued growth in mobile data revenue and higher equipment sales.
Fixed line revenue increased by 15.0% year-on-year, to HUF 72.6 billion in Q1 2024, thanks primarily to increases in fixed broadband and TV revenue driven by the customer base expansions as well as the favorable impact of the inflation-based fee adjustment applied to the Hungarian subscription fees.
System Integration and IT ( SI/IT') revenue remained broadly stable year-on-year, amounting to HUF 20.7 billion in Q1 2024, reflecting the year-on-year similar customer demand developments on our key markets.
Direct costs were up by 8.5% year-on-year at HUF 88.8 billion in Q1 2024, driven by higher equipment costs, parallel to the increase in sales and an increase in bad debt expenses, reflecting primarily the higher revenue base.
Interconnect costs declined by 21.6% year-on-year to HUF 4.3 billion in Q1 2024, reflecting the cut in the Hungarian mobile termination rates, effective from January 1, 2024.
SI/IT service-related costs remained broadly stable year-on-year, amounting to HUF 15.1 billion in Q1 2024, in line with the related revenue developments.
I mpairment losses and gains on financial assets and contract assets (bad debt expenses) was higher by HUF 1.3 billion or 64.2% year-on-year, amounting to HUF 3.4 billion in Q1 2024, in line with the higher revenue base, including increase in instalment sales revenue and also reflecting less favorable aging structure of the customer receivables at the Hungarian operation.
Telecom tax was broadly unchanged year-on-year, amounting to HUF 6.3 billion in Q1 2024, as lower overall fixed voice usage and decline in mobile voice traffic generated by business customers were offset by higher voice minutes used by the expanding residential subscriber base.
Other direct costs were up by 12.5% year-on-year at HUF 59.6 billion in Q1 2024, primarily driven by higher equipment costs, in line with higher related sales volumes, and an increase in TV content fees.
Gross profit improved by 18.7% year-on-year to HUF 135.5 billion in Q1 2024, thanks to higher service revenues partly mitigated by increase in the equipment sales related costs and bad debt expenses.
Indirect costs were lower by 9.3% year-on-year, at HUF 50.9 billion in Q1 2024, primarily driven by the elimination of the utility tax in Hungary.
Employee-related expenses increased by 10.9% year-on-year, amounting to HUF 21.8 billion in Q1 2024, reflecting primarily the wage increase in effect from July 1, 2023 at the Hungarian operation.
Utility tax was repealed effective from January 1, 2024, resulting in a HUF 7.8 billion improvement year-on-year, as in previous years, utility tax for the full year had to be accounted for in the first quarter in line with relevant IFRS accounting rules.
upplementary telecommunication tax was up by HUF 1.6 billion, amounting to HUF 8.9 billion in Q1 2024, reflecting the revenue increase.
Other operating expenses (excluding the utility tax and the supplementary telecommunication tax) decreased by 4.2% year-on-year to HUF 21.1 billion in Q1 2024, driven by lower energy costs that could offset inflation-driven cost pressures on other expenses.
Other operating income was HUF 0.9 billion in Q1 2024, in line with earlier trends.
EBITDA increased by 45.8% year-on-year to HUF 84.6 billion in Q1 2024 driven by the improvement in gross profit coupled with the positive impact of the elimination of the utility tax. EBITDA AL was up by 51.4% year-on-year to HUF 77.0 billion in Q1 2024.
Depreciation and amortization ( D&A') expenses were up by 5.0% year-on-year, amounting to HUF 35.3 billion in Q1 2024, reflecting increases in IFRS 16 right-of-use asset related depreciation expenses coupled with temporarily higher depreciation related to software licenses.
Profit for the period rose by 197.4% or HUF 23.2 billion year-on-year to HUF 35.0 billion in Q1 2024. Improvement was driven by the strong growth in EBITDA.
Net financial result improved from a loss of HUF 8.7 billion in Q1 2023 to a loss of HUF 7.8 billion in Q1 2024. Improvement in net interest expense was driven by lower overall loan balances more and favorable liquidity positions leading to lower related costs. The unfavorable change in other finance expense primarily reflects the different quarterly movements of the HUF during the period resulting in higher FX losses in Q1 2024 vs Q1 2023. These were partially offset by unrealized gains on derivative positions.
Income tax expenses were up by 62.3% or HUF 2.5 billion year-on-year at HUF 6.5 billion in Q1 2024, reflecting the year-on-year higher profit levels resulting in higher trade and income taxes as well.
Profit attributable to non-controlling interests increased by 6.4% year-on-year to HUF 1.3 billion in Q1 2024 , reflecting the improvement in the operational result of the North Macedonian subsidiary.
Free cash flow, excluding spectrum
Most recent headlines
06/10/2025
France T l visions, France's leading broadcaster, has received the 2025 EBU ...
04/09/2025
Monumental Sports & Entertainment (MSE), in collaboration with Dalet, has been a...
30/08/2025
WASHINGTON The Federal Communications Commission has adopted its FY 2025 Regulatory Fees Order that establishes the regulatory fee rates for the broadcast stati...
29/08/2025
Australian Red Cross and SBS launch training to help workplaces in the fight aga...
29/08/2025
The National Film and Video Foundation (NFVF), an agency of the Department of Sp...
29/08/2025
L3Harris Technologies has concentrated decades of expertise across the entire enterprise to develop affordable and reliable best-of-breed solutions to rapidly c...
29/08/2025
BURBANK, Calif. The CW Network and the Pac-12 Conference have announced a new media rights deal that will extend their broadcast partnership beginning with the ...
29/08/2025
NEW YORK Gracenote has released a new analysis of its global video dataset showing that the number of FAST channels grew nearly 14% from Q1 2025 and 76% since 2...
29/08/2025
SAN JOSE, Calif. Harmonic has announced a series of improvements to its live sports streaming solution that the company said will improve fan engagement, protec...
29/08/2025
NEW YORK and LOS ANGELES Fox Corp. and YouTube TV last night announced a renewal of the full portfolio of Fox networks, including Fox News Channel, Fox Business...
29/08/2025
Budapest, Hungary, August 2025 - The integration of Microsoft Teams Rooms (MTR) with Lightware's Taurus universal matrix switchers delivers a new level of f...
29/08/2025
Frequency, the engine behind many of the world's best-known streaming television channels, today announced it will launch Studio Live, a next-generation uni...
29/08/2025
In an era when AI and cyber resilience are essential, Scality will mark the 10th anniversary of Scality Day on October 16, 2025 in Paris. This flagship global e...
29/08/2025
Disguise's In-House Creative and Technical Teams Pre-Visualised, Programmed and Delivered Content for the Experience, All Powered by EX 3+
Technology solu...
29/08/2025
Disguise will be demonstrating the latest workflows for TV, film and live events on a number of partner booths at the show
Disguise, the industry-leading tech...
29/08/2025
STOCKHOLM, Sweden Accedo will showcase Accedo Compose, its AI agent-powered modular orchestration layer that assists streaming providers in transitioning client...
29/08/2025
LOS ANGELES Cineverse has announced that it is working with Xperi to bring four of its streaming channels to automobiles for the first time as part of the DTS A...
29/08/2025
DALLAS & ATLANTA Gray Media has announced an agreement with the sports streaming service Victory+ to simulcast 17 Dallas Stars NHL games in 15 television market...
29/08/2025
NEW YORK AND CULVER CITY Comcast NBCUniversal and Amazon have announced new and extended distribution agreements that will expand the content available on their...
29/08/2025
FOOTHILL RANCH, Calif. RED Digital Cinema will feature its Cine-Broadcast Module supporting live broadcast workflows during IBC2025, Sept. 12-15, at the RAI Ams...
29/08/2025
29 Aug 2025
Kyivstar Rings Opening Bell at Nasdaq Marking Landmark Listing and ...
29/08/2025
More than half of all NFL games live on Sky for the first timeFriday 29 August 2025
Sky Sports has announced a new three-year deal with the NFL, extending its ...
29/08/2025
Back to All News
RIV4LRIES: The Trailer of the New Series With Samuele Carrino ...
29/08/2025
Get ready for an inspiring and emotional insight into the world of competitive Irish dancing with My Story: Tomi Champion of the World airing on RT 2 this monda...
29/08/2025
RT has today announced that David McCullagh is to be the new presenter of RT Radio 1's flagship Today programme, which airs every weekday at 10am, replaci...
28/08/2025
By Kristin Feeley, Director, Documentary Film & Artist Programs
If you want to tell untold stories, if you want to give voice to the voiceless, you've got ...
28/08/2025
Directed by Steven Bognar and Julia Reichert, Sundance Institute-supported Amer...
28/08/2025
Corridos have been a cornerstone of M sica Mexicana for generations, telling stories rooted in everyday life. Now, a new chapter is taking shape: motivational c...
28/08/2025
Los corridos han sido un pilar de la M sica Mexicana durante generaciones, contando historias enraizadas en la vida cotidiana. Ahora, un nuevo cap tulo est tom...
28/08/2025
Earlier this month, we promised our Verano Forever party would bring the heat, a...
28/08/2025
L3Harris will provide the Polish F-16V fleet with the Viper Shield electronic warfare system as part of an upgrade program....
28/08/2025
Bilbao, August 26, 2025 - AgileTV, an international television and video technol...
28/08/2025
Ken Wilkinson is an Emmy Awards nominated New York audio engineer who specialises in production sound mixing for film, commercial, episodic and documentary work...
28/08/2025
NEW YORK FuboTV today announced that it will launch Fubo Sports, a skinny bundle that focuses on sports with a subscription price of $56 monthly....
28/08/2025
NEVADA City, Calif. At IBC2025, Sept. 12-15 at the RAI Amsterdam, Telestream will debut its new Global Ingest strategy, introducing a next-generation ingest arc...
28/08/2025
Dr. Rhoda Bernard Releases Groundbreaking Debut Book on Accessible Arts Educatio...
28/08/2025
TAG Video Systems, the leader in software-based IP end-to-end workflow monitoring, deep probing, and real-time visualization, has named Oliver Gappa as Sales Di...
28/08/2025
AI-based voice enhancement will be among a series of innovations making their IBC 2025 debut on the DHD stand B46 in Hall 8 at the RAI Amsterdam Convention Cent...
28/08/2025
Telef nica Servicios Audiovisuales (TSA), the leading system integrator and service provider in the media sector in Spain, with the support of Appear, the globa...
28/08/2025
To fully immerse sailing fans in the world's biggest offshore yacht race, production company, Optical Media turned to LiveU's On-site Production solutio...
28/08/2025
Working with Calrec on its most recent overhaul, radio and television broadcaster, WNED has migrated to a fully IP infrastructure with multiple Type R consoles,...
28/08/2025
Cleeng, the Subscriber Retention Management (SRM ) inventor, has unveiled Cleeng Pro, the first-ever direct-to-consumer (D2C) subscription management platform t...
28/08/2025
Zixi, the industry leader in live broadcast-quality video over IP, today announced that French media distribution platform OKAST has selected Zixi to enable rel...
28/08/2025
Solution offers a streamlined, speaker-free architecture to optimize integration with premium external loudspeakers and advanced loudness metering
Nixer Pro Au...
28/08/2025
Cinegy, the premier provider of software-defined television technology, has announced a strategic partnership with Vision One Touch Film Production Services L.L...
28/08/2025
Telestream, a global leader in media workflow technologies, will debut its new Global Ingest strategy at IBC2025, introducing a next-generation ingest architect...
28/08/2025
Tier 1 operator selects Broadpeak to power high-performance, unified CDN solution across Norway, Sweden and Finland
Broadpeak, a leader in streaming and moneti...
28/08/2025
Leading video software provider, Synamedia, today announced that 24 Frames Digital, one of India's leading live event streaming service providers, has chose...
28/08/2025
Meet VisualOn at IBC2025: See What's Next in AI-Powered Video Streaming Join VisualOn at IBC2025 and discover how our AI-driven Optimizer and advanced media...
MAGYAR TELEKOM RESULTS FOR THE FIRST QUARTER OF 2024 
