
Magyar Telekom results for the third quarter of 2020
Budapest, November 4, 2020 17:30
Magyar Telekom today reported its consolidated financial results for the third quarter of 2020, in accordance with International Financial Reporting Standards (IFRS).
Highlights:
Total revenues increased by 1.8% year-on-year to HUF 167.7 billion in Q3 2020 as increases in telecommunication service revenues coupled with higher equipment sales in Hungary, along with positive foreign exchange impact stemming from the strengthening of the denar compared to the forint offset the decline in the Hungarian System Integration and IT revenues in Hungary. In the first nine months of 2020, revenues remained broadly stable year-on-year at HUF 484.2 billion.
Mobile revenues were up 2.7% year-on-year to HUF 92.6 billion in Q3 2020, and 2.6% higher at HUF 266.7 billion in the first nine months of 2020, thanks to higher mobile data and equipment sales revenues which could fully offset lower retail voice revenues.
Fixed line revenues increased by5.3% year-on-year, to HUF 55.1 billion in Q3 2020 and by 2.1% to HUF 161.0 billion in the first nine months of 2020. Higher broadband and TV retail service revenues compensated for the decline in voice revenues and the higher volumes of provided discounts.
System Integration (SI) and IT ( SI/IT') revenues declined by 10.1% year-on-year to HUF 20.0 billionin Q3 2020, with revenues down by 15.5% year-on-year in the first nine months of 2020.Revenues in Hungary contracted due to lower volumes of implementation projects delivered to the Hungarian public sector.
Direct costs increased by 4.6% year-on-year to HUF 72.4 billion in Q3 2020and were up by 1.2% year-on-year in the first nine months of 2020 at HUF 206.6 billion. Although SI/IT related expenses were lower year-on-year, increases in other direct costs, bad debt expenses and telecom tax resulted in higher overall direct costs.
Interconnect costsincreased by 2.5% year-on-year to HUF 5.5 billion in Q3 2020, as increased off-network mobile voice traffic primarily visible at the North Macedonian operation, led to higher payments to domestic mobile operators.
SI/IT service-related costsdeclined by 13.7% year-on-year, to HUF 14.0 billion in Q3 2020, reflecting lower volume of related projects in Hungary.
Bad debt expenses were up by HUF 1.0 billion year-on-year at HUF 2.4 billion in Q3 2020, reflecting the absence of a one-off favorable impact driven by the reduction of the impairment rates applied to the Hungarian fixed and mobile operations during Q3 2019. That was partially mitigated by the favorable aging of mobile receivables at the Hungarian operation during Q3 2020 coupled with collection of impaired receivables and the absence of negative one-off items impacting Q3 2019 results in North Macedonia.
Telecom taxrose by HUF 1.5 billion year-on-year to HUF 7.6 billion in Q3 2020, as increases in mobile voice traffic in the business and residential segments and higher residential landline usage in Hungary was coupled with a one-off non-recurring adjustment booked in Q3 2020.
Other direct costswere up 6.8% year-on-year at HUF 42.9 billion in Q3 2020, driven primarily by higher equipment costs in both countries coupled with an increase in the Hungarian TV content outpayments (further amplified by the weakening of the forint against the euro). These could only be partially offset by lower roaming outpayments.
Gross profit was broadly stable year-on-year at HUF 95.2 billion in Q3 2020 as higher contribution from the Hungarian telecommunication services was counterbalanced by lower roaming results coupled with one-off items negatively impacting year-on-year comparison. Gross profit declined moderately to HUF 277.6 billion in the first nine months of 2020, as the above factors were coupled with lower SI/IT contribution.
Indirect costs improved by 3.5% year-on-year, to HUF 34.5 billion in Q3 2020, and by 2.5% year-on-year to HUF 114.4 billion in the first nine months of 2020, thanks to broad-based cost saving measures implemented at the Hungarian operation..
Employee-related expenseswere up by a moderate 1.5% year-on-year at HUF 18.3 billion in Q3 2020, as the impact of general wage increase at the Hungarian operation coupled with the different distribution pattern within the year generating higher bonus accruals offset the favorable impacts of lower Group-wide headcount, reduction in Hungarian social contribution charges and the revised trainee employment terms. In the first nine months of 2020, employee related expenses improved by 3.3% year-on-year, reflecting an overall decline in all wage elements.
Other operating expenses improved by 9.8% year-on-year to HUF 17.3 billion in Q3 2020, primarily due to savings in marketing, advisory and maintenance expenses at the Hungarian operation which more than offset temporarily higher expenses in North Macedonia.
Other operating income were lower at HUF 1.1 billion in Q3 2020, reflecting lower level of income related to real estate sales in Hungary.
EBITDA rose by 1.9% year-on-year to HUF 60.7 billion in Q3 2020, and by 0.2% to HUF 163.3 billion in the first nine months of 2020, as stable gross profit was coupled with lower indirect costs . EBITDA AL improved by 1.5% year-on-year in Q3 2020 , driven by the above drivers coupled with some year-on-year increases in IFRS 16 depreciation and amortization expenses.
Depreciation and amortization ( D&A') expenses grew by HUF 1.6 billion year-on-year , to HUF 35.4 billionin Q3 2020, reflecting higher expenses in both countries of operation. In Hungary, the increase was attributable to the frequency licenses acquired earlier this year as well as the shortened useful life of copper network elements driven by preparations to the copper retirement program. In North Macedonia, the D&A expense increase was drive
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...
16/06/2025
By Bailey Pennick
One of the most exciting things about the Sundance Film Festi...
16/06/2025
The Cannes Lions International Festival of Creativity is officially underway for...
16/06/2025
On Spotify, francophone content continues to cross borders at an unprecedented rate. In 2024 alone, more than 123 million listeners worldwide streamed audio con...
16/06/2025
TYSONS, Va. Tegna Inc. is embarking on a notable expansion of their already substantial local news programming by launching live and on-demand, local newscasts ...
16/06/2025
Netflix has announced that it is expanding its global programmatic ad offerings by partnering with Yahoo DSP. This will enable brands to buy Netflix advertising...
16/06/2025
Instrument now boasts full NKS support
Sub51 and Soundtrax have just announced the launch of an updated and improved version of their innovative sample-base...
16/06/2025
NEW YORK In a landmark agreement to overtake the burgeoning connected TV (CTV) advertising market, Amazon Ads and Roku today announced a new integration that gi...
16/06/2025
ATLANTA, BALTIMORE, CINCINNATI and IRVING, Texas The four major broadcast groups behind the ATSC 3.0-based EdgeBeam Wireless datacasting joint venture today nam...
16/06/2025
BURLINGTON, Mass. Avid today announced an extended agreement with Amazon MGM Studios to integrate Avid's Media Composer and Avid NEXIS on Amazon Web Service...
16/06/2025
Maxon, maker of powerful, approachable software for creators working in 2D and 3D design, motion graphics, visual effects, gaming and more, today announced the ...
16/06/2025
Alfalite, the only European manufacturer of LED displays, announces the launch of SKYPIX RGBW & IM, a new series of ceiling-mounted LED panels designed specifi...
16/06/2025
Two new compact 4HP modules introduced
ALM/Busy Circuits have just announced the launch of two new Eurorack modules, the Pip Filter and Pip LFO, both of whi...
16/06/2025
16 Jun 2025
VEON Announces USD 35 Million Share Buyback Announcement marks the third phase of USD 100 million share buyback program
Dubai, June 16, 2025: VEON...
16/06/2025
Save 40% or More on All Ivory II Collections!From now through June 30th, enjoy huge savings on all Ivory II Piano Collections. Our biggest discounts ever are be...
16/06/2025
Behind The Broadcast Booth, Ep. 3: Golf. My Future. My Game. Founder and CEO Cra...
16/06/2025
The REMI Revolution Is Here: How Remote Production Technology in Esports Pioneer...
16/06/2025
From Super Bowl to Indy 500, New Orleans Artist Frenchy' Captures Energy of...
16/06/2025
NFL Films Enhances Post Studio With Dolby Atmos Audio Forty-three channels of audio enable the facility to migrate to immersive By Dan Daley, Audio Editor
Mo...
16/06/2025
SVG New Sponsor Spotlight: Storj's David Colantuoni on Expanding Cloud-Based...
16/06/2025
Grass Valley 4K Cameras Head to Greece for View Master Events' New OB Truck By Ken Kerschbaumer, Editorial Director
Monday, June 16, 2025 - 2:33 pm
Pri...
16/06/2025
Monday 16 June 2025
Sky Arts' Access All Arts Week, a free nationwide arts ...
16/06/2025
Monday 16 June 2025
Families and children are invited to dress up, have fun and raise money to protect nature
WWF UK and Sky Kids are teaming up to launch Wea...
16/06/2025
The Rohde & Schwarz R&S M3AR radio family reaches 10,000 unit milestone, demonst...
16/06/2025
FOX Advertising Launches Enhanced Brand Storytelling Program with Strategic Inve...
16/06/2025
Run with Ray is back! RT Radio 1's The Ray D'Arcy Show hits the road th...
15/06/2025
July 2025 in Dublin, Berlin, Amsterdam & London
Photo: Thea Martre
Music Production for Women (MPW) have announced that they will be running a series of fo...
15/06/2025
Composer/producer launches free virtual instruments
Sulcata Sound is the latest venture of Jason Graves, a two-time British Academy Award-winnning composer,...
14/06/2025
NEW YORK Pluto TV and the All Womens Sports Network have launched a free ad-supported streaming TV (FAST) AWSN channel in the U.S., Canada, the U.K. and the Nor...
14/06/2025
NEW YORK and CINCINNATI E.W. Scripps has announced a new, multiyear agreement with the WNBA that will continue Ions regular-season coverage of the league on Fri...
14/06/2025
WASHINGTON The National Association of Broadcasters highlighted the hidden importance of spectrum in the production of major sporting events and described wha...
14/06/2025
WASHINGTON Sunsetting ATSC 1.0, expanding business opportunities for NextGen Broadcast and increasing international adoption of the ATSC 3.0 standard were top o...
14/06/2025
SAN FRANCISCO Samba TV and Acxiom have announced that they will dramatically expand their longstanding relationship....
14/06/2025
July 2025 in Dublin, Berlin, Amsterdam & London
Photo: Thea Martre
Music Production for Women (MPW) have announced that they will be running a series of fo...
14/06/2025
San Francisco State University's School of Cinema Uses Blackmagic Design
Brie Clayton June 13, 2025
0 Comments
More than 40 Blackmagic Design came...
14/06/2025
Boris FX Mocha Pro Adds New AI Tools To Tackle VFX Tasks Fast
Jessie Electa Petrov June 13, 2025
0 Comments
The 2025.5 release helps artists work more...
14/06/2025
AJA Debuts DRM2-Plus Mini-Converter Frame at InfoComm 2025
Brie Clayton June 13, 2025
0 Comments
Next-gen frame addresses diverse rackmount needs wit...
13/06/2025
(L-R) Lindsay Utz, Michelle Walshe, and The Right Honourable Dame Jacinda Ardern attend the 2025 Sundance Film Festival premiere of Prime Minister at Eccles T...
13/06/2025
Photo credit: Atsushi Nishijima
If you're a true lover of rom-coms, chances...
13/06/2025
Pure Drama and Fierce Rivalries set to dominate the world's most iconic spor...
13/06/2025
Johannesburg, 12 June 2025 - The National Film and Video Foundation (NFVF), an a...
13/06/2025
ABILENE. Texas A severe storm knocked down the tower and severely damaged the news studio and main facility of Sinclair-owned KTXS here on Sunday, June 8....
13/06/2025
Berklee's Music Business/Management Department Recognized by the Music Biz A...
13/06/2025
WASHINGTON The ATSC, the Broadcast Standards Association, honored veteran technologist Aldo Cugnini and Clarence Hau, Senior Vice President of Standards, Policy...
13/06/2025
(Editor's note: The 2025 UFL Championship Game between the D.C. Defenders and Michigan Panthers kicks off Saturday, June 14, at 8 p.m. Eastern. The game wil...
13/06/2025
New iPad/iPhone synth App announced
Following on from last year's release of Gradient Synth - which reached #6 on the App Store's Paid Music charts ...
13/06/2025
LONDON Warner Bros. Discovery has announced that HBO Max will launch direct-to-consumer in multiple new countries this July as the streamer becomes available in...
13/06/2025
AI voice transcription and captioning platform Verbit has added a new feature to its Captivate ASR solution the ability to identify specific features in automat...
13/06/2025
WASHINGTON Federal Communications Commission member Anna Gomez has wrapped up two weeks in California visiting broadcasters, television studio executives, enter...