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...
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...
28/01/2026
Top L-R: The Liars, Jazz Infernal, Living with a Visionary
Second Row L-R: Paper Trail, The Baddest Speechwriter of All, Crisis Actor
Third Row: The Boys and ...
28/01/2026
Music discovery should feel intuitive and personal. That's why we're continuing to give you more control, so you can ask for what you want, shape what y...
28/01/2026
Today, Charlie Hellman, Spotify's Head of Music, shared the following note on the Spotify for Artists blog that the company paid out more than $11 billion t...
28/01/2026
The National Film and Video Foundation (NFVF), in partnership with the Oudtshoorn Municipality, invites aspiring and emerging filmmakers to apply for the Sediba...
28/01/2026
As demand for more complex live sports coverage grows, Balkan broadcast specialist MVP has upgraded its flagship HD1 progressive OB truck with the installation ...
28/01/2026
Airlines, cruise and tour operators double down on ad spend as Australians' prioritise travel
Sydney January 28, 2026 - New Nielsen Ad Intel data shows a...
28/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/01/2026
Marshall Electronics launches the CV420-27X, its next-generation ultra-high-definition (UHD) IP camera, at ISE 2026 (Stand 4N900). Engineered for modern IP-base...
28/01/2026
Grass Valley has announced that Television Mobiles Ltd. (TVM), one of Europe's leading independent outside broadcast providers, has carried out a major refu...
28/01/2026
AI, graphics and virtual software power new production capabilities
FOR-A is bringing remarkable new technologies to FOMEX, the Future of Media Exhibition (ex...
28/01/2026
Continuing a longstanding collaboration, Riedel Communications and Nordic media technology company Media Tailor have once again joined forces to deliver a state...
28/01/2026
Pebble has appointed Paul Nagle-Smith as vice president for customer fulfilment, strengthening its senior leadership focus on customer delivery and operational ...
28/01/2026
Cloud playout solutions provider, Veset has announced that leading Mexican broadcaster, TV Azteca is using Veset Nimbus on AWS as a disaster recovery (DR) playo...
28/01/2026
Ensuring it can keep pace with a rapidly evolving live sports market, Balkan broadcast facility provider MVP Most Valuable Production has upgraded its flags...
28/01/2026
Akamai Technologies, Inc. (NASDAQ: AKAM), the cloud solutions provider that powers and protects life online, and Yospace, the leader in dynamic ad insertion tec...
28/01/2026
The renowned Reykjavik City Theatre (RCT) recently underwent a major intercom system upgrade using Clear-Com solutions. This milestone project utilizes Clear-C...
28/01/2026
Luxembourg, January 26, 2026 - SES S.A. ( SES or the Company ), a leading space solutions company, acknowledges the credit rating action announced by Fitch to...
28/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/01/2026
28 01 2026 - Media release Screen Australia refreshes Market & Audience approach...
28/01/2026
Boston Conservatory Orchestra Premieres a New Piano Concerto by Peter and Leonar...
28/01/2026
28 Jan 2026
VEON Notes Kyivstar Group Publication of Selected Full Year 2025 Fi...
28/01/2026
Rohde & Schwarz to host 2026 edition of its online event Demystifying EMC Rohde & Schwarz invites the global EMC community to join a crucial discussion on pre...
28/01/2026
Back to All News
The Wait Is Over: Teaser Trailer Drops for Jo Nesbo's Dete...
28/01/2026
Back to All News
Netflix Announces a Fictional Miniseries Inspired by the Marta del Castillo Case
Entertainment
28 January 2026
GlobalSpain
Link copied to ...
28/01/2026
Back to All News
Netflix Announces Santiago Mitres New Film Starring Ver nica L...
28/01/2026
Back to All News
Netflix Unveils the Teaser Trailer for Berlin and the Lady wit...
28/01/2026
Stadtwerke Wolfhagen Modernize Customer Management with AEP.energysuite from Arv...
27/01/2026
Click for Japanese version
Tokyo, Japan - January 27, 2026 - Akamai Technolo...
27/01/2026
L-R: Jonathan Cuchacovich, Sonia Kennebeck, Alan Fischer, Daeil Kim, Andrew Sta...
27/01/2026
Today, Spotify is proud to support our partner Backline, an industry-leading men...
27/01/2026
With nearly 29 million monthly listeners and clear momentum on Spotify, Net n Ve...
27/01/2026
January 14, 2026
We are proud to share that 25 Ontario, First Gulf's commercial project located just two minutes from our head office, has been recognized ...
27/01/2026
January 22, 2026
First Gulf is excited to share that a full-building lease has been secured at 625 Bronte Rd in Oakville, part of Bronte Station Business Park,...
27/01/2026
January 23, 2026
First Gulf continues to demonstrate its commitment to high-performance, sustainable real estate with 351 King Street East achieving BOMA BEST ...
27/01/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
27/01/2026
Nielsen will continue to drive growth and provide local audience measurement
in...
27/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
27/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
27/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
27/01/2026
Amagi Media Labs Limited, the only cloud-native SaaS provider offering end-to-end solutions across live production, content preparation, distribution, and monet...
27/01/2026
Miri Technologies Inc. today unveiled its V410 live 4K video encoder/decoder for streaming, IP-based production workflows and AV-over-IP distribution. Designed ...
27/01/2026
The Paul E. Tsongas Center at UMass Lowell in Massachusetts has chosen Ikegami cameras for incorporation into its broadcast-quality television production facili...
Magyar Telekom results for the first half of 2020 
