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
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...
06/03/2026
Ten years after its release, South African hip-hop artist Kwesta's DaKAR II is still making waves. With 51.8 million streams on Spotify, the album continues...
06/03/2026
06 Mar 2026
VEON and JazzWorld Advance Pakistan's Digital Financial Future ...
06/03/2026
Friday 6 March 2026
Teaser revealed for Saturday Night Live UKTurn on cookies to view this content. Go to Privacy options and select Accept All'.
Privacy...
06/03/2026
Discover how the F1 sound team turned a real Grand Prix into a cinematic experience.
Director Joseph Kosinski and his team worked directly with the Formula On...
06/03/2026
Arvato Systems Joins Initiative D21 e. V.
Shaping digital transformation together
Collaboration in Germanys largest network for the digital society
Membersh...
06/03/2026
The Trustworthy Accountability Group (TAG) is a global initiative dedicated to c...
06/03/2026
We are deeply saddened to hear the very sad news of the death of our friend and colleague, John McHugh. John was an exceptionally talented creative leader who s...
06/03/2026
First exclusive look at RT 's promo as Ireland prepare to take on Czechia
Every Moment, Every Generation
https://youtu.be/2ijo96EadLU
36 years after Geor...
05/03/2026
A little over a year ago, Spotify introduced the quarterly Creator Milestone Awa...
05/03/2026
Rohde & Schwarz enables rapid validation of next-gen Wi-Fi 8 networking platform...
05/03/2026
Rohde & Schwarz acquires Software Radio Systems (SRS), specialists in software d...
05/03/2026
Celebrating 21 Years of the RT Choice Music Prize
RT Choice Music Prize
In association with IMRO and IRMA
RT Choice Music Prize Irish Album of the Year 2...
05/03/2026
Thursday 5 March 2026
Sky News secures ninth News Channel of the Year award as ...
05/03/2026
Thursday 5 March 2026
Sky Sports launches first ever nationwide creator competi...
05/03/2026
SAN JOSE, Calif. - March 5, 2026 - At the 2026 NAB Show, Harmonic (NASDAQ: HLIT)...
05/03/2026
Comscore and Yahoo DSP Partner to Advance CTV Political Advertising with Proximi...
04/03/2026
For many fans, a song's backstory can be just as compelling as the final pro...
04/03/2026
In 2006, Spotify was founded on the belief that technology could bring artists a...
04/03/2026
Spotify is back on the ground for the Houston Livestock Show and Rodeo, and we&#...
04/03/2026
Spotify had an energizing week in Sydney, Australia, filled with powerful conver...
04/03/2026
Earlier this year, we launched Directed By, a documentary-style series that pull...
04/03/2026
KT and Rohde & Schwarz to showcase AI-enhanced radio transmission performance In a joint 6G AI proof-of-concept demonstration, the CMX500 one-box tester from ...
04/03/2026
Luxembourg, 3 March 2026 - SES S.A. has today published its 2025 Annual Report, following the announcement of the company's full year financial results for ...
04/03/2026
Luxembourg, March 3, 2026 - SES, a leading space solutions company, along with I...
04/03/2026
04 Mar 2026
VEON Partners with GSMA Innovation Fund to Accelerate Digital Innov...
04/03/2026
04 Mar 2026
VEON's Beeline Uzbekistan and Rakuten Symphony Partner for Open...
04/03/2026
Wednesday 4 March 2026
Sky Sports unveils plans for 2026 Formula 1 coverage
Sky Sports is preparing for one of the most highly anticipated F1 seasons in recen...
03/03/2026
For many, finding time or headspace to pick up a book can feel out of reach, but...
03/03/2026
Rohde & Schwarz and Realtek demonstrate first test solution for Bluetooth LE Hi...
03/03/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
03/03/2026
Luxembourg, 2 March 2026 -- SES S.A. fully consolidates Intelsat from 17 July 2025 and announces financial results for the year ended 31 December 2025
FY25 Pe...
03/03/2026
RT is proud to support a rich and diverse programme of arts and cultural events taking place across Ireland throughout March 2026. This month brings a remarkab...
03/03/2026
03 Mar 2026
VEON and MeetKai Expand Collaboration to Explore Sovereign AI Infra...
03/03/2026
Tuesday 3 March 2026
Sky releases official trailer for The Miniature Wife, a Sk...
03/03/2026
Tuesday 3 March 2026
Ryan Reynolds and Rob Mac land first ever live commentary ...
03/03/2026
Tuesday 3 March 2026
The Dyers' Caravan Park reopens for a second season after a hit launch on Sky
The Dyers' Caravan Park
JPEG (510KB)
Sky books a ...
03/03/2026
Harmonic's cOS Virtualized Broadband Platform Simplifies Network Operations, Lowers Hardware Dependency and Enables Seamless DOCSIS and Fiber Growth SAN JO...
03/03/2026
Comscore to Announce Fourth Quarter and Full Year 2025 Financial ResultsRESTON, VA, March 3, 2026 Comscore, Inc. (Nasdaq: SCOR), a trusted partner for plannin...
03/03/2026
Self-taught on iMovie, Hanagami transitioned to Final Cut Pro in 2009, discovering that professional tools could give him full creative control over how his wor...
03/03/2026
RT Media Sales has announced Spry Finance has renewed it's sponsorship of M...
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
aconnic AG (ISIN: DE000A0LBKW6), Munich, and Arqit Quantum Inc. (Nasdaq: ARQQ, A...
02/03/2026
Luxembourg, February 26, 2026 - SES and Africa Mobile Network (AMN) have expande...
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; ...
Magyar Telekom results for the second quarter and first half of 2022 
