Magyar Telekom result for the fourth quarter of 2018
Budapest, February 20, 2019 18:00
Magyar Telekom today reported its consolidated financial results for the fourth quarter and full year of 2018, in accordance with International Financial Reporting Standards (IFRS).
Total revenues (excluding the impact of IFRS 15 adoption) increased by 7.8% year-on-year to HUF 174.0 billion in Q4 2018 and by 7.2% year-on-year to HUF 655.1 billion in FY 2018.Revenue growth continued to be primarily driven by a strong increase in SI/IT revenues, along with higher equipment sales and mobile data usage.
Mobile revenues (excluding IFRS 15 impacts) increased by 8.7% year-on-year to HUF 90.5 billion in Q4 2018 and by 6.0% year-on-year to HUF 342.1 billion in FY 2018, primarily driven by the growth in equipment sales and a continued increase in mobile data revenues.
Fixed line revenues (excluding IFRS 15 impacts) rose by 4.6% year-on-year to HUF 53.9 billion in Q4 2018 and by 5.0% to HUF 205.9 billion in FY 2018. This growth was attributable to rising equipment sales as well as higher TV and broadband retail service revenues.
System Integration (SI) and IT revenues grew by 12.2% year-on-year to HUF 29.6 billionin Q4 2018 , resulting in year-on-year annual revenue growth of 22.4% in FY 2018. Growth continued to be primarily driven by public sector projects, while deliveries of instant payment solutions to the banking sector also contributed to the increase in Hungary in Q4 2018. In Macedonia, the growth in SI/IT revenues was fuelled by a higher volume of customized solutions projects.
Energy Services were discontinued as of November 1, 2017, following the exit from the residential segment of the electricity market.
Direct costs (excluding IFRS 9 and 15 impacts) increased by 13.2% year-on-year, to HUF 81.6 billion in Q4 2018 and by 15.9% year-on-year to HUF 284.9 billion in FY 2018. This wasdriven by higher SI/IT and equipment costs, in line with the growth delivered in related revenue lines, coupled with higher bad debt expenses.
Interconnect costs increased by 5.7% year-on-year to HUF 5.2 billion in Q4 2018, reflecting increased mobile traffic in both countries that led to higher payments to domestic mobile operators.
SI/IT service related costs increased by 8.2% year-on-year to HUF 20.2 billion in Q4 2018, driven by a higher volume of related projects.
Bad debt expenses deteriorated by HUF 2.2 billion year-on-year to HUF 3.2 billion in Q4 2018. This was driven primarily by higher bad debt expense in Hungary. This resulted from the strong growth in revenues, as well as the absence of the positive one-off impact recorded in 2017 that stemmed from the application of lower impairment rates. In Macedonia, bad debt expense (excluding the impact of IFRS adoption) declined thanks to lower impairment levels related to mobile sales.
Telecom tax declined slightly by 3.1% year-on-year to HUF 6.3 billion in Q4 2018, as lower residential fixed voice usage outweighed the increase in mobile traffic in Hungary. Telecom tax for the full year rose by a moderate 1.6% year-on-year to HUF 25.5 billion, reflecting higher mobile traffic in Hungary, both in the retail and business segments.
Other direct costs increased by 15.8% year-on-year, to HUF 46.7 billion in Q4 2018, primarily due to an increase in the cost of equipment sales, in line with higher sales and an increase in TV outpayments.
Gross profit (excluding IFRS 9 and 15 impacts) increased by 3.4% year-on-year to HUF 92.4 billion in Q4 2018 and by 1.4% to HUF 370.2 billion in FY 2018, as the strong increase in revenues outweighed the impact of the increasing weight of lower margin services in the sales mix.
Indirect costs (excluding IFRS 9 and 15 impacts) improved by 2.0% year-on-yearto HUF 46.2 billionin Q4 2018 , as higher other operating income fully offset higher employee related and other operating expenses. Indirect costs for the full year declined by1.1% year-on-year to HUF 177.4 billion, as higher other operating income, coupled with savings in other operating expenses outweighed the rise in employee related expenses.
Employee-related expenses rose by 4.3% year-on-year to HUF 23.0 billion in Q4 2018 as a combined result of changed trainee employment form in Hungary, a 5% average wage increase at the Company and higher severance-related expenses in Macedonia.
Other operating expenses were 6.6% higher year-on-year at HUF 29.3 billion in Q4 2018, driven by higher marketing expenses and an increase in rental fees in relation to the new headquarters. Other operating expenses for the full year improved by 1.8% year-on-year to HUF 96.7 billion as lower HR-related, IT maintenance and energy costs more than offset increased rental fees and maintenance costs in Hungary. Other operating expenses in Macedonia improved moderately thanks to lower marketing and maintenance expenses.
Other operating income rose by HUF 3.7 billion year-on-year to HUF 6.2 billion in Q4 2018, reflecting the one-off profits realized from the sale of the old headquarters in Hungary.
EBITDA (excluding IFRS 9 and 15 impacts) increased by 9.4% year-on-year to HUF 46.2 billion in Q4 2018 reflecting the combined impact of higher gross profit and higher other operating income in Hungary, which fully offset the temporary EBITDA decline in Macedonia. EBITDA for the full year improved by 3.8% year-on-year to HUF 192.8 billion thanks to the combined impact of improvements in gross profit and indirect costs.
Depreciation and amortization (D&A) expenses increased by 6.8% year-on-year to HUF 29.7 billion in Q4 2018 and by 6.8% to HUF 115.5 billion in FY 2018, driven by the shortening of the useful lives of certain network equipment related to customer connections.
Profit for the period from continuing operations (excluding IFRS 9 and 15 impacts) increased by 40.2% year-
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
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...
13/05/2026
New Adobe Premiere Color Grading Mode Accelerated on NVIDIA GPUs
Joel Pennington May 13, 2026
0 Comments
New NVIDIA RTX-accelerated features streamlin...
13/05/2026
Grass Valley announced that dB Broadcast has delivered new IP-based outside broadcast (OB) trucks for Cloudbass, featuring Grass Valley LDX 100 Series cameras a...
13/05/2026
Ikegami will exhibit the latest additions to its wide range of broadcast production cameras, control units, viewfinders and monitors on stand 5D3-1 at Broadcast...
13/05/2026
FISE, working with the founding members of the XR Sports Alliance (XRSA), Accedo, Qualcomm Technologies, Inc. and HBS, have collaborated to develop an immersive...
13/05/2026
Canon Unveils New EOS R6 V Full-Frame EOS Camera and RF20-50mm F4 L IS USM PZ Bu...
13/05/2026
Boston Conservatory at Berklee Honors Beth Morrison and Moses Pendleton at Comme...
13/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
13/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
13/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
13/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
13/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
13/05/2026
Creative software developer Foundry today announced the latest developments on Nuke Stage. A purpose-built application for end-to-end virtual production and in-...
13/05/2026
A definitive portrait of one of Ireland's most influential musicians
New TV documentary airs Monday 18 May on RT One and RT Player at 9.35pm
Watch the...
13/05/2026
Agentic AI is changing the way users get work done. Following the success of OpenClaw, the community is embracing new open source agentic frameworks. The latest...
13/05/2026
Reinforcement-learning agents - AI systems that learn by trial and error - can c...
12/05/2026
Beyond the Hype: A Strategic Post-Hoc Analysis of NAB 2026 If NAB Show 2026 had an underlying theme, it was a quiet, industry-wide pivot from the high-energy sp...
12/05/2026
Guntermann and Drunck (G&D), a Panoptec Technologies Group company, and CT Square, led by Chandresh Shah, have announced a joint venture to distribute G&D and V...
12/05/2026
With 30 days until the start of the FIFA World Cup 2026, Telemundo, the exclusive Spanish-language home of the tournament in the United States, has announced th...
12/05/2026
The NHL has announced the return of Stanley Pup for its third consecutive year, a 90-minute special featuring adoptable rescue dogs competing on a miniature rin...
12/05/2026
NBCUniversal presented its 2026 Upfront to advertisers at Radio City Music Hall, detailing upcoming programming across NBC, Peacock, Bravo, and Versant properti...
12/05/2026
FOX Sports has announced funding for the Fandom and Social Connection Initiative at Harvard Kennedy School's Shorenstein Center on Media, Politics, and Publ...
12/05/2026
TNDV and Live Media, both divisions of Live Media Group, supported live broadcast coverage around NCAA Final Four weekend in Indianapolis, including the March M...
12/05/2026
The European Football Alliance (EFA) has announced a content distribution agreement with Fubo Sports Network, the free ad-supported streaming TV (FAST) channel ...
12/05/2026
For the first time, Spanish-speaking fans in the U.S. will have two separate tel...
12/05/2026
CP Communications led a comprehensive spectrum management initiative on behalf of Churchill Downs during Kentucky Derby week, coordinating RF assets across the ...
12/05/2026
LiveU has announced a strategic partnership with DRONERESPONDERS, a 501(c)3 non-...
12/05/2026
Open Broadcast Systems has announced that BMC TV, a specialist in IP transport of broadcast content, has selected the Open Broadcast Systems 5G Flyaway solution...
12/05/2026
NEP Europe, part of NEP Group, has announced it will deliver broadcast solutions...
12/05/2026
Grass Valley has announced continued collaboration with Ravensbourne University ...
12/05/2026
Stats Perform has announced the launch of Opta Pulse, an AI-assisted video creation and distribution platform for leagues, rights holders, and broadcasters. The...
12/05/2026
FOX Sports has announced a collaboration with Sesame Workshop to integrate Sesame Street characters into FOX Sports' FIFA World Cup 2026 programming. Conten...
12/05/2026
To date, NHL Productions has produced 19 broadcasts with commentary in American Sign Language
NHL in ASL (American Sign Language) may be just one show, but the...
12/05/2026
Google's Brian Albert: creators, athletes, highlights, nostalgia, second-scr...
12/05/2026
A still from Past Lives by Celine Song, an official selection of the Premieres program at the 2023 Sundance Film Festival. (Courtesy of Sundance Institute | p...
12/05/2026
Spotify is where fans and artists come together, turning discovery into somethin...
12/05/2026
Features patented Marco-MMC clocking technology
Black Lion Audio's latest release combines the company's expertise in clocking with their renowned p...
12/05/2026
New Track Panel, sequencer upgrades & more
Following their recent public beta release, Reason Studios have announced the full release of Reason 14. With the...
12/05/2026
One month to go! SBS reveals expansive FIFA World Cup 2026 lineup beyond the pi...
12/05/2026
Rohde & Schwarz presents its advanced solutions for power electronics testing at...
12/05/2026
aconnic AG (ISIN: DE000A0LBKW6), Munich, has developed a modified fund raising p...
12/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
12/05/2026
Tyrell Corporation, specialists in high-end live sports and entertainment broadcasts, was tasked with delivering compelling broadcast coverage of premier equest...
12/05/2026
Registration is now open for IBC2026 as the global media, entertainment and technology community prepares to converge on the RAI Amsterdam from 11 14 September ...
12/05/2026
Ross Video, a global leader in live video production technology, will present its latest innovations and integrated production workflows at BroadcastAsia 2026, ...
12/05/2026
500 selected leaders from around the world across start-ups, corporates, and venture capital. Over 50bn in assets under management among attending investors, a...
Magyar Telekom result for the fourth quarter of 2018 
