Magyar Telekom results for the first half of 2020
Budapest, August 5, 2020 17:30
Magyar Telekom today reported its consolidated financial results for the second quarter and first half of 2020, in accordance with International Financial Reporting Standards (IFRS).
Highlights:
Total revenues declined by 2.2% year-on-year to HUF 157.2 billion in Q2 2020 and by 1.0% year-on-year to HUF 316.5 billion in the first six months of 2020. Further increases in telecommunication service revenues in both countries of operation, along with positive foreign exchange impact stemming from the strengthening of the denar compared to the forint, were offset by the decline in System Integration and IT ( SI/IT') revenues in Hungary.
Mobile revenues were up 1.3% year-on-year to HUF 86.0 billion in Q2 2020, and 2.6% higher at HUF 174.1 billion in the first half of 2020, thanks to higher mobile data revenues in both countries of operation which were partially offset by lower retail voice revenues. In H1 2020, mobile revenues grew by 2.6% year-on-year to HUF 174.1 billion.
Fixed line revenues increased moderately, by 0.8% year-on-year, to HUF 53.1 billion in Q2 2020 and by 0.6% to HUF 105.9 billion in the first half of 2020. Higher broadband and TV retail service revenues were able to offset the decline in equipment sales, higher volumes of discounts and lower network-related revenues.
System Integration (SI) and IT ( SI/IT') revenues declined by 22.0% year-on-year to HUF 18.1 billion in Q2 2020, with revenues down by 18.2% year-on-year in H1 2020. Revenues in Hungary contracted due to lower demand in the Hungarian public and corporate sector driven by changing customer needs as a result of the COVID-19 pandemic.
Direct costs were down 1.6% year-on-year, at HUF 67.1 billion in Q2 2020, and by 0.6% year-on-year in H1 2020. While other direct costs and the telecom tax continued to rise in Q2 2020, SI/IT related expenses were significantly lower resulting in the year-on-year cost decline.
Interconnect costs increased by 2.5% year-on-year to HUF 5.4 billion in Q2 2020, reflecting increased off-network mobile voice traffic in both countries, which led to higher payments to domestic mobile operators.
SI/IT service-related costs declined by 26.1% year-on-year, to HUF 12.8 billion in Q2 2020, driven by a significant reduction in the volume of related projects in Hungary.
Bad debt expenses improved by 13.0% year-on-year to HUF 2.1 billion in Q2 2020, as the favorable aging of mobile receivables at the Hungarian operation and the absence of negative one-off items impacting Q2 2019 results in North Macedonia offset the negative impact of COVID-19 on bad debt expenses and the lower results from factoring activities. However, in H1 2020, bad debt expenses deteriorated by 5.8% year-on-year to HUF 4.8 billion, as the impact of the COVID-19 pandemic, lower results from factoring and the release of certain customers from a loyalty period could only be partly mitigated by the favorable aging of mobile receivables at the Hungarian operation.
Telecom tax was up 6.8% year-on-year at HUF 6.8 billion in Q2 2020, reflecting an increase in mobile voice traffic in the business and residential segments coupled with higher residential landline usage during the months of lockdown in Hungary.
Other direct costs increased by 8.7% year-on-year to HUF 39.9 billion in Q2 2020, primarily due to an increase recorded at the Hungarian operation. This was attributable to higher TV content outpayments and equipment costs (both further amplified by the weakening of the forint against the euro), which could only be partially offset by the lower roaming outpayments.
Gross profit declined by 2.7% and 1.3% year-on-year to HUF 90.1 billion in Q2 2020 and to HUF 182.4 billion in H1 2020, respectively. This result is broadly attributable to the lower SI/IT and roaming result coupled with increases in telecom tax expenses.
Indirect costs improved by 4.7% year-on-year, to HUF 34.0 billion in Q2 2020, and by 2.0% year-on-year to HUF 79.8 billion in H1 2020, thanks to broad-based cost saving measures in both countries.
Employee-related expenses declined by 9.4% year-on-year to HUF 17.9 billion in Q2 2020, driven primarily by lower headcount in both Hungary and North Macedonia, supported by a reduction in Hungarian social contribution charges and the revised trainee employment terms.
Other operating expenses improved by 4.5% year-on-year to HUF 16.8 billion in Q2 2020, primarily due to savings in marketing and advisory expenses which more than offset higher spending in relation to COVID-19 protective measures.
Other operating income declined by HUF 1.0 billion year-on-year in Q2 2020, reflecting the absence of income related to real estate sales and a legal case closed in the second quarter of 2019.
EBITDA was down by 1.4% year-on-year to HUF 56.1 billion in Q2 2020, and by 0.8% to HUF 102.5 billion in H1 2020, as savings in indirect costs could not fully compensate for the lower gross profit. EBITDA AL declined by 2.5% year-on-year in Q2 2020, reflecting year-on-year increases in IFRS 16 depreciation and amortization expenses.
Depreciation and amortization ( D&A') expenses grew by HUF 3.2 billion year-on-year, to HUF 35.3 billion in Q2 2020, reflecting higher expenses in both countries of operation. In Hungary, the increase was attributable to the newly acquired frequency licenses 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 driven by higher amortization expenses in relation to content rights, software and licenses.
Profit for the period declined by 20.8% year-on-year to HUF 11.5 billion in Q2 2020, as lower EBITDA and an increase in D&A expenses could only be partially mitigated by bette
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
02/05/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
01/04/2026
January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION
Douyin Users Can Now Create And Share Videos With Stun...
02/03/2026
NBC Sports selected Imaginary Forces to create the main title sequence for the M...
02/03/2026
The NFL announces the launch of the NFL Draft Innovation Challenge, a new crowds...
02/03/2026
The World Teleport Association (WTA) has named Skyline Communications' DataMiner SatOps solution as a finalist for the 2026 Teleport Technology of the Year ...
02/03/2026
Ventum Tech announces a strategic partnership with Pixotope, a real-time graphic...
02/03/2026
Victory , a free, ad-supported sports streaming service, announces the launch of...
02/03/2026
Global powerhouse Delta Goodrem to represent Australia at this year's Eurovi...
02/03/2026
SBS brings together prominent voices to discuss rising social division and seek ...
02/03/2026
NITV Unveils Wednesday Night Sport Night
Media releases
A Midweek Hub for Blak Sport
Flagship NRL program Over The Black Dot moves to Wednesdays at 9:30pm
...
02/03/2026
Rohde & Schwarz demonstrates FR1-FR3 carrier aggregation, advancing 6G readiness Rohde & Schwarz and Qualcomm Technologies, Inc. have reached another pivotal ...
02/03/2026
MELBOURNE, Fla., March 2, 2026 - L3Harris Technologies (NYSE: LHX) today announc...
02/03/2026
Harvey Norman tops New Zealand's biggest ad spenders as retail leads and telcos and beverages sure Auckland March 3, 2026 - Nielsen's New Zealand'...
02/03/2026
aconnic AG (ISIN: DE000A0LBKW6), Munich, and Arqit Quantum Inc. (Nasdaq: ARQQ, A...
02/03/2026
Advanced Systems Group, LLC (ASG), a technology and services provider for media creatives and content owners, has appointed Jody Boatwright as Chief Strategy Of...
02/03/2026
Lightware, an industry leader in signal management, is reinforcing its commitment to simplifying complex AV environments with the continued evolution of its TPN...
02/03/2026
ZEISS Cinema opens its doors to an exclusive screening, filmmakers Q&A and hands-on showcase of the new ZEISS Aatma lens family on Tuesday, March 10, 6:00-9:00 ...
02/03/2026
To expand the creative potential of the compact Astera QuikBeam, DoPchoice introduces the SNAPBAG Round. The new light-shaping accessory transforms the powerfu...
02/03/2026
Douglas Dubler
On a rooftop in New York City, veteran photographer Douglas Dubler watched the sun's angle shift across the urban landscape, his internal cl...
02/03/2026
ZEISS is expanding its Otus ML lens family with the introduction of the new ZEISS Otus ML 1.4/35. This manual-focus lens is designed for photographers who live ...
02/03/2026
Matthews Studio Equipment now offers the new Dinkum Systems White FlexiMount and Phone Mount Kit, a compact, highly adaptable setup for mobile content creation...
02/03/2026
Luxembourg, February 26, 2026 - SES and Africa Mobile Network (AMN) have expande...
02/03/2026
02 03 2026 - Media release Ausfilm and Screen Australia launch joint UK market initiative
Ausfilm and Screen Australia have announced Partner with Australia (...
02/03/2026
Monday 2 March 2026
Saturday Night Live UK announces writing team
L-R: Jonno Johnson; Charlie Skelton; Celya AB; Omar Badawy; Gr inne Maguire; Laura Claxton; ...
02/03/2026
Back to All News
Netflix Unveils the Trailer for 53 Sundays, the New Film by Cesc Gay
Entertainment
02 March 2026
GlobalSpain
Link copied to clipboard
Dis...
28/02/2026
With two features seen in Formula 1 coverage, the broadcaster aims to bring view...
28/02/2026
Secretary of War Pete Hegseth addresses a crowd of approximately 1,500 L3Harris employees in Camden, Arkansas, as part of his Arsenal of Freedom tour....
28/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/02/2026
Berklee Presents Mambo Mania: Eguie Castrillo and the Berklee All-Stars Big Band...
28/02/2026
Berklee Announces Two New Summer Programs in Los Angeles The Berklee Music Business Program and Electronic Music Production and Sound Design Workshop bring imme...
28/02/2026
AI-RAN is moving from lab to field, showing that a software-defined approach is ...
28/02/2026
Autonomous networks - intelligent, self-managing telecommunications operations -...
28/02/2026
Back to All News
Final Trailer for BEASTARS Final Season Part 2' Roars Tow...
28/02/2026
New way to intentionally discover molecular glues could expand drug discovery Scripps Research scientists and colleagues show how drugs that eliminate certain d...
27/02/2026
The E.W. Scripps Company names Oliver Gray as Vice President, Network Sports and...
27/02/2026
The Gotham Sports App, the exclusive direct-to-consumer streaming home of MSG Networks and the YES Network, is now available for purchase through Prime Video fo...
27/02/2026
ESPN and the Horizon League announce a new multi-year, multi-platform media rights agreement, continuing a 38-year collaboration that began with the 1988 Midwes...
27/02/2026
At the 2026 NAB Show in Las Vegas, NETGEAR will highlight its new switch models and major updates to its Engage Controller software. The company's network d...
27/02/2026
Riedel Communications announces that Fondazione Teatro alla Scala has deployed a...
27/02/2026
Lyuno specializes in media localization, including translation, dubbing, subtitling, and voice-over services for a wide array of entertainment content. The comp...
27/02/2026
Chyron Weather 2.3, the latest edition of Chyron's weather visualization suite for broadcasters and meteorologists, recently launched.
The release includes...
27/02/2026
Telestream, which concentrates in media workflow technologies, announces expanded practical AI enhancements across its Vantage, Vantage Cloud, EDC, Stanza, and ...
Magyar Telekom results for the first half of 2020 
