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 ...
07/10/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
19/08/2026
As the cost of IP nears price parity with traditional SDI, Reynolds argues that ...
19/08/2026
A private 5G bubble was chosen instead of traditional broadcast RF for the race ...
19/08/2026
(L-R) Rafael Manuel and Isabel Sicat attend the Filipi ana premiere during the 2026 Sundance Film Festival at The Ray Theatre on January 23, 2026, in Park Cit...
19/08/2026
Studio owners invited to have their say on rates cuts
The Music Producers Guild (MPG) are inviting UK-based studios to take part in an in-depth survey that ...
19/08/2026
Vintage-inspired desktop interface revealed
Harrison's latest hardware offering sees them head into the world of audio interfaces, delivering a 10-in/12...
19/08/2026
Granular effect remains locked to scale and tempo
Described as your dream granular effect , Minimal Audio's latest creation is capable of turning any s...
19/08/2026
First polyphonic SWAM instrument incoming
Audio Modeling's latest physical-modelling orchestral instrument is just around the corner, and is now availab...
19/08/2026
World Cup Games Generate 84 Billion Minutes Across FOX, Fox Sports 1 and NBCU...
19/08/2026
July brought typical peak-holiday drops in viewership, driven primarily by viewers stepping away from screens and a visible decline in reach across both traditi...
19/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
19/08/2026
Henry joins BCE as the company accelerates its commercial strategy and expands its international presence across the media, broadcast and technology markets. He...
19/08/2026
iWedia, a leading provider of software solutions for connected TV devices, today announced a major milestone in Android platform optimization with the successfu...
19/08/2026
NTP Technology announces that ST 2110-30 audio-over-IP connectivity with AES67 and RAVENNA capabilities is now available for the brand's world-class audio i...
19/08/2026
Net Insight has been selected to provide its Nimbra platform by the service provider Big Blue Marble, formerly ORS Group, as the core media transport solution f...
19/08/2026
LiveU has supported Coventry City FC and several other top-flight UK football clubs through one of their most demanding live production challenges of the year, ...
19/08/2026
Nature Seekers Documentary Shot with Blackmagic URSA Cine 12K LF
Brie Clayton August 18, 2026
0 Comments
Filming endangered turtles required camera...
19/08/2026
Neyrinck Brings D-Control Consoles Back to Life on Apple Silicon with D-Control ...
19/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
19/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
19/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
19/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
19/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
19/08/2026
Riedel Communications today announced that Edith Cowan University (ECU) in Perth, Australia, implemented a comprehensive communications infrastructure that brin...
19/08/2026
QuickLink, a leading provider of award-winning video production and remote guest contribution solutions, will spotlight a major leap forward in remote guest con...
19/08/2026
Integrated platform melds media asset management, playout automation and newsroom workflows
EMAM, PlayBox Neo and SNEWS have officially launched Nuvex, a conne...
19/08/2026
Screen Australia releases the Private Investment Toolkit to strengthen screen in...
19/08/2026
Do Aussies truly value local content? Unpacking Screen Currency 2026 with Deirdr...
19/08/2026
There's an early Christmas gift for Bookish fans, as UKTV confirms the re-commission of the hit U&alibi drama, created by and starring Mark Gatiss. Viewers ...
19/08/2026
Wednesday 19 August 2026
Sky gives sports fans the chance to watch multiple liv...
19/08/2026
On Saturday September 5 Katie Taylor will step into the ring for the fight of her life against Flora Pili in front of 80,000 fans in Croke Park. A legendary fig...
18/08/2026
SportStream 2026, a free three-day virtual event, will take place September 15-17. One registration provides access to all three days of live programming and on...
18/08/2026
BeckTV will introduce BeckFlow to the European market at IBC2026, demonstrated on the Providius stand (10.F53).
BeckFlow is a web-based schematic documentation...
18/08/2026
Boland Communications will introduce a SMPTE ST 2110 input option for its 4K monitors at IBC2026, along with a new 55-inch super-narrow bezel display for video ...
18/08/2026
Dolby Laboratories and the Seattle Seahawks have announced a partnership integrating Dolby OptiView into the Seahawks' live streaming coverage, making the S...
18/08/2026
For BMG Executive Producer of Sports Production, Graham Taylor, producing live s...
18/08/2026
TMRW Sports has appointed Rufus Hack as President of Golf, a newly created role in which he will lead the company's golf businesses including TGL presented ...
18/08/2026
SMT will provide race technology for FOX Sports' coverage of the Freedom 250 Grand Prix of Washington, D.C. on August 23, when the NTT INDYCAR SERIES races ...
18/08/2026
The live, YouTube-native roundtables combine fan voices, credentialed reporters,...
18/08/2026
Behind The Mic provides a roundup of recent news regarding on-air talent, includ...
18/08/2026
The industry legend sounds off on replacing the Heat's iconic Medusa score...
18/08/2026
William F. Rasmussen, the sports fan-turned broadcaster and entrepreneur whose out-of-the-box idea of a 24-hour cable sports network, ESPN, changed forever the ...
18/08/2026
DAZN Group has completed its acquisition of ViewLift, a provider of streaming and digital solutions for sports content owners. The acquisition was first announc...
18/08/2026
The American Association of Professional Baseball (AAPB) has added SI TV, Sports Illustrated's 24/7 streaming channel, as a broadcast partner for the remain...
18/08/2026
The Esports Foundation has announced that the inaugural Esports Nations Cup (ENC), originally scheduled for November 2026 in Riyadh, will be postponed to Novemb...
18/08/2026
Diversified has announced a new Global Managed Services Practice, consolidating the company's managed services capabilities into one organization. Rob Mello...
18/08/2026
Appear has completed a proof of concept with Thoroughbred Racing Productions (TRP), demonstrating multi-camera remote live production over bonded 5G cellular an...
Magyar Telekom result for the fourth quarter of 2018 
