Magyar Telekom results for the second quarter and first half of 2022
Budapest, August 9, 2022 17:30
Magyar Telekom today reported its consolidated financial results for the second quarter and first half of 2022, in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU. The quarterly financial report contains unaudited figures for each reporting periods.
Total revenue increased by 10.9% year-on-year to HUF 184.2 billion in Q2 2022 and by 9.6% year-on-year to HUF 360.1 billion in the first six months of 2022. Improvement was primarily driven by the strong growth in mobile data and higher equipment sales whilst weakening of the Hungarian forint against the North Macedonian denar amplified the North Macedonian subsidiary's contribution.
Mobile revenue rose by 12.2% year-on-year to HUF 104.8 billion in Q2 2022, driven by growth in mobile data revenue and higher equipment sales which offset lower voice revenue at both countries of operation.
Fixed line revenue increased by 7.7% year-on-year, to HUF 59.3 billion in Q2 2022 thanks primarily to increases in fixed broadband and TV revenues driven by the customer base expansion at the Hungarian operation.
System Integration (SI) and IT ( SI/IT') revenues increased by 13.8% to HUF 20.1 billion in Q2 2022 primarily thanks to revenue from a major project in North Macedonia related to the Smart City Skopje initiatives. SI/IT revenues in Hungary were moderately up year-on-year as the negative impact of the absence of revenues formerly generated by healthcare business unit including Pan-Inform LLC were offset by favorable in-year project distribution.
Direct costs increased, in line with revenues by 13.0% year-on-year to HUF 78.7 billion in Q2 2022, mainly driven by increase in SI/IT related expenses and higher equipment costs.
Interconnect costs decreased by 7.3% year-on-year to HUF 5.8 billion in Q2 2022, reflecting lower payments at the Hungarian operation to domestic mobile operators in relation to lower SMS traffic as well as decline in voice related outpayments.
SI/IT service-related costs increased by 17.0% year-on-year to HUF 14.9 billion in Q2 2022, driven by increased project volumes in both countries of operation.
Bad debt expenses remained broadly stable year-on-year, amounting to HUF 2.0 billion in Q2 2022, reflecting similar tendencies compared to a year earlier.
Telecom tax declined by 3.7% year-on-year to HUF 6.6 billion in Q2 2022, driven by lower fixed and mobile voice traffic at the Hungarian operation.
Other direct costs were up 18.0% year-on-year to HUF 49.6 billion in Q2 2022, driven by higher equipment costs parallel to the increase in sales volumes and an increase in roaming outpayments driven by the easing of travel limitations compared to a year earlier.
Gross profit improved by 9.3% year-on-year to HUF 105.5 billion in Q2 2022, thanks to a higher contribution from telecommunication services, particularly data, at both countries of operation.
Indirect costs rose by HUF 10.4 billion year-on-year, to HUF 47.6 billion in Q2 2022, primarily reflecting the booking of the newly introduced supplementary telecommunication tax that offset savings in both employee-related and other operating expenses.
Employee-related expenses were down by 8.2% year-on-year, amounting to HUF 18.8 billion in Q2 2022, reflecting lower severance expenses, different timing of bonus provisions, while the impact of the general wage increase was broadly offset by the reduction in headcount.
Supplementary telecommunication tax, imposed by the Government of Hungary with its decree issued on June 4, is levied on the actual business year's annual net sales of electronic telecommunication services as defined by the law on local taxes and is payable for the full years 2022 and 2023. As a consequence, a HUF 12.4 billion expense was booked in Q2 2022, in relation to the first six months 2022 supplementary tax charge.
Other operating expenses (excluding the supplementary telecommunication tax) improved moderately year-on-year to HUF 17.0 billion in Q2 2022, as negative impact of cost pressure stemming from high general inflation and weakening of the forint and reflected primarily at subcontractor costs, as well the higher energy costs in North Macedonia were offset by the combined impact of lower marketing expenses in both countries of operation due to different within-year seasonality and a one-off accrual reversal in Hungary.
Other operating income was broadly stable year-on-year, amounting to HUF 0.7 billion in Q2 2022.
EBITDA declined by 2.3% year-on-year to HUF 57.9 billion in Q2 2022 as the improvement in gross profit was offset by the booking of the supplementary telecommunication tax. EBITDA AL was down by 3.5% year-on-year to HUF 51.4 billion in Q2 2022, with the above drivers coupled with higher IFRS 16 lease liability related depreciation and interest expenses in line with the increasing volume of the related lease liabilities.
Depreciation and amortization ( D&A') expenses declined by 4.0% year-on-year to HUF 35.2 billion in Q2 2022, driven by lower depreciation expenses at the Hungarian operation attributable to full copper network retirement in some areas of Hungary and the proportionally lower amortization of the spectrum licenses that expired in April 2022 and were reacquired earlier. These declines were partly offset by some increase in North Macedonia due to shortened useful life and accelerated depreciation in relation to RAN modernization.
Profit for the period decreased from HUF 14.5 billion in Q2 2021 to HUF 11.7 billion in Q2 2022, as increasing financial expenses were weighing on the broadly stable operating profit.
Net financial result deteriorated from a loss of HUF 4.0 billion in Q2 2021 to a loss of HUF 6.5 billion in Q2 2022. Interest expense increa
Europe Stories
09/11/2025
Dalet today announced a transformative leap forward for media operations: Agentic Artificial Intelligence (AI) that unifies the Dalet ecosystem under one natura...
06/10/2025
France T l visions, France's leading broadcaster, has received the 2025 EBU ...
15/09/2025
Global K-Pop sensation aespa is redefining what it means to be rich with the r...
15/09/2025
Every day, millions of people around the world turn to Spotify to enjoy the audi...
15/09/2025
After months of intensive planning and implementation, Brembo SGL Carbon Ceramic...
15/09/2025
Unique sports content orchestration platform builds momentum among SES's cus...
15/09/2025
-- Opens door to growth in renewable energy New Delhi, India - 15th September -- Global business and industry leaders from around the world are joining technol...
13/09/2025
Harmonic's Software-Based XOS Advanced Media Processor Provides Unparalleled Efficiency and Unlocks New Business Models SAN JOSE, Calif. - Sept. 13, 2025 -...
12/09/2025
For fans, we know how important it is to stay plugged into music culture and dis...
12/09/2025
Link ping, Sweden and Shipley, United Kingdom, September 12, 2025 - Agama, the expert in video observability and analytics for service quality and customer expe...
12/09/2025
Feature-length retrospective from Studio Crook to air in 2026
Sir David Jason returns to the nation's favourite comedy channel, U&GOLD, for Open All Hours:...
12/09/2025
Friday 12 September 2025
The Boomtown Rats, Nyah Grace, Soweto Kinch, Royal Ballet and Madness also announced to perform at the ceremony on Tuesday
Sky today ...
12/09/2025
Wuppertal September 12, 2025
Riedel Unveils Ultra-Light Bolero Mini Wireless Intercom BeltpackAt IBC2025 in Amsterdam, Riedel Communications unveiled Bolero M...
12/09/2025
Wuppertal September 12, 2025
Riedel Communications Acquires hi human interfaceRiedel Communications today announced the acquisition of hi human interface fro...
12/09/2025
CORE+ virtually removes distortion, setting a new standard for church sound and giving worship teams the clarity and confidence they need.
Read the full artic...
12/09/2025
The Late Late Show is back with a bang after the summer break, and Patrick Kielt...
12/09/2025
The World Athletics Championships, Ireland v France in the Women's Rugby World Cup quarter-final, the Irish Champions Festival, and two Sports Direct Men...
12/09/2025
The Records Show starts Sunday at 6.30pm on RT One and RT Player.
Katie Hanno...
11/09/2025
RADAR, Spotify's program for emerging talent, recently hit a major milestone...
11/09/2025
Link ping, Sweden, September 11, 2025 - Agama, the expert in video observability & analytics for service quality and customer experience, announced today the la...
11/09/2025
Under the USD 89.6 Million award, SES Space & Defense will provide global commer...
11/09/2025
Leading Balkan DTH provider adds capacity to consolidate its m:Sat TV platform at 23.5 degrees East and serve more customers across the region
Luxembourg, 11 S...
11/09/2025
UKTV's free streaming service U launches on Sky Q
Free streaming service U has launched on Sky Q in the UK, UKTV and Sky confirm today, expanding the footp...
11/09/2025
From the discreet 2061 lavaliers to 4099 and 4011 mics, the setup delivered clean, natural sound in one of the most challenging broadcast environments.
Read th...
11/09/2025
From rugged build quality to natural, detailed sound, the verdict is clear: big performance can come in a very small package.
Read the full review here!...
11/09/2025
Tonight on Prime Time
RT One and RT Player at 9:35pm
Tonight RT Prime Time...
11/09/2025
RT Statement: 2026 Eurovision Song Contest
At the General Assembly of the European Broadcasting Union (EBU) in July, a number of EBU members raised concerns ...
10/09/2025
Lossless on Spotify Premium is here.
Lossless audio has been one of the most a...
10/09/2025
The Television Will Be Revolutionised Sep 10, 2025
Written by Sunit Kotecha, Director of Delivery and Operations, YouView
2025 marks a century since the f...
10/09/2025
First of Spains F110 frigates get future-ready with Rohde & Schwarz communicatio...
10/09/2025
Harmonic's cOS Platform Supports DOCSIS and Fiber, Enabling Midco to Deliver Reliable Multi-Gigabit Connectivity to Subscribers SAN JOSE, Calif. - Sept. 10,...
10/09/2025
RT brings three days of live radio, live entertainment, live news, live weather, personal appearances, and more
Join RT Radio 1: Morning Ireland, The Oliver ...
09/09/2025
Since 2020, Spotify's RADAR program has been a launchpad for emerging talent...
09/09/2025
In 2020, Spotify launched RADAR with a clear mission: to identify, nurture, and ...
09/09/2025
If you're on BookTok, you know the drill. You scroll, you tap, and suddenly your To Be Read list is overflowing with trending must-reads. Not unlike Spoti...
09/09/2025
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
09/09/2025
Harmonic's VOS360 Ad SaaS Enables Personalized Ad Delivery and Seamless Integration with the Ad Tech Ecosystem SAN JOSE, Calif. - Sept. 9, 2025 - Harmonic ...
09/09/2025
St. Luke's Episcopal Church in New Jersey needed audio that truly connects and they found the answer.
Read the full case study here!...
09/09/2025
From AI-driven sound design to adaptable systems and uncompromising audio quality, the discussion highlights how innovation is shaping the future of performance...
09/09/2025
The conversation covers DPA's natural, uncolored sound, how to choose the right mic for any application and the company's latest innovations including C...
09/09/2025
From the origins of CORE to the latest CORE+ upgrade, the article explores how DPA minimizes distortion, expands dynamic range and ensures clarity at every SPL ...
09/09/2025
September 9 2025, 07:22 (PDT) Dolby Revolutionizes Entertainment on Four Wheels...
09/09/2025
The Autumn Schedule has begun on RT Raidi na Gaeltachta, with a feast of music, entertainment, news and current affairs programmes as well as an interesting s...
08/09/2025
The company continues to focus on its own training programs. Recently, 20 new ap...
08/09/2025
How an MVP-first approach helps you move faster, stay flexible, and deliver smarter.
Too often, media technology projects aim to solve everything at once ma...
08/09/2025
Fox Corporation Announces Resolution of Murdoch Family Trust Matter New York, NY and Los Angeles, CA - September 8, 2025 - Fox Corporation ( FOX or the Comp...
08/09/2025
Fox Corporation Announces Secondary Offering of Class B Common Stock New York, NY, and Los Angeles, CA - September 8, 2025 - Fox Corporation ( FOX or the Co...
08/09/2025
Fox Corporation Announces Pricing of Secondary Offering of Class B Common Stock New York, NY, and Los Angeles, CA, September 8, 2025 Fox Corporation ( FOX ...
08/09/2025
PantoneLIVE Adds New Color Libraries to Meet Growing Demand for Two-Piece Alumin...
Magyar Telekom results for the second quarter and first half of 2022 
