Magyar Telekom results for the third quarter of 2023
Budapest, November 8, 2023 17:35
Magyar Telekom today reported its consolidated financial results for the third quarter of 2023, in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU. The financial report contains unaudited figures for each reporting period.
Highlights:
Total revenue increased by 13.3% year-on-year to HUF 216.2 billion in Q3 2023 , primarily driven by strong growth in mobile data and fixed broadband revenue, reflecting the underlying business growth as well as the positive impact of the inflation-based fee adjustment implemented to the Hungarian subscription fees from March 1, 2023.
Mobile revenue rose by 13.0% year-on-year to HUF 126.0 billion in Q3 2023 , driven by the continued growth in mobile data revenue coupled with increasing voice-retail revenue.
Fixed line revenue increased by 17.0% year-on-year, to HUF 69.5 billion in Q3 2023. This improvement was primarily driven by increases in fixed broadband and TV revenues that were also now coupled with higher equipment sales revenues.
System Integration and IT ( SI/IT') revenue increased by 3.8% to HUF 20.7 billion in Q3 2023, as a result of higher revenue at the Hungarian operation thanks to increased revenue from high value projects.
Direct costs were up by 5.4% year-on-year at HUF 85.0 billion in Q3 2023, driven by higher bad debt expenses and other direct costs.
Interconnect costs were broadly unchanged year-on-year, at HUF 6.0 billion in Q3 2023, as lower payments at the Hungarian operation to domestic mobile operators in line with the lower outgoing traffic volumes were offset by higher outpayments at the North Macedonian operation due to increase international transit traffic volumes.
SI/IT service-related costs were up by 6.9% year-on-year at HUF 14.8 billion in Q3 2023, in line with the higher revenue.
Impairment losses and gains on financial assets and contract assets (bad debt expenses) was higher by HUF 1.3 billion year-on-year, amounting to HUF 2.7 billion in Q3 2023. This was equally attributable to higher revenue base and the less favorable aging structure of the customer receivables in the current period versus the favorable aging impact supporting the results in Q3 2022, at the Hungarian operation.
Telecom tax was lower by 4.0% year-on-year, amounting to HUF 6.3 billion in Q3 2023, primarily reflecting declining mobile voice usage of the business customer base.
Other direct costs were up by 4.5% year-on-year to HUF 55.2 billion in Q3 2023, driven by higher equipment costs and TV content fees.
Gross profit improved by 19.0% year-on-year to HUF 131.3 billion in Q3 2023, thanks to a higher contribution from telecommunication services.
Indirect costs rose by 12.6% year-on-year, to HUF 50.8 billion in Q3 2023, primarily driven by higher energy expenses at the Hungarian operation.
Employee-related expenses amounted to HUF 21.1 billion in Q3 2023, representing a 1.0% increase year-on-year. This was the result of higher expenses at the North Macedonian operation following the insourcing of certain maintenance functions as well as the wage increases implemented at the Hungarian operation, mostly offset by the absence of one-off compensation to employees in Hungary, that unfavorably impacted Q3 2022 expenses.
Supplementary telecommunication taxwas booked in the amount of HUF 7.5 billion in Q3 2023, up by 16% year-on-year, reflecting the expected revenue increase.
Other operating expenses (excluding the utility tax and the supplementary telecommunication tax) rose by 22.6% year-on-year to HUF 23.1 billion in Q3 2023, reflecting higher energy costs at the Hungarian operation, particularly electricity, coupled with further inflation-driven cost pressures partly mitigated by cost efficiency measures and favorable year-on-year development in the North Macedonian energy costs.
Other operating income was HUF 0.9 billion in Q3 2023, in line with earlier trends.
EBITDA increased by 23.4% year-on-year to HUF 80.5 billion and EBITDA AL was up by 24.8% year-on-year to HUF 73.1 billion in Q3 2023 driven by the improvement in gross profit that offset the higher indirect costs.
Depreciation and amortization ( D&A') expenses were 2.5% higher year-on-year, amounting to HUF 34.7 billion in Q3 2023, reflecting increases in IFRS 16 lease liability related depreciation expenses.
Profit for the period rose by 33.3% year-on-year to HUF 24.7 billion in Q3 2023 driven by the higher EBITDA that offset increases in financial expenses.
Net financial resultdeteriorated from a loss of HUF 8.1 billion in Q3 2022 to a loss of HUF 15.3 billion in Q3 2023. Interest expense increased driven by higher interest related to lease liabilities, installment sales and higher average interest costs. The unfavorable change in other finance expense primarily reflects less favorable results related to derivatives attributable to the different shifts in the relevant yield curves whilst the euro-forint currency movement showed weakening in both periods, resulting in FX losses.
Income tax expenseswere up by 22.1% year-on-year at HUF 5.7 billion in Q3 2023, reflecting the year-on-year higher profit levels.
Profit attributable to non-controlling interests increased by 19.6% year-on-year to HUF 1.7 billion in Q3 2023 , reflecting primarily the improvement in EBITDA at the North Macedonian subsidiary.
Free cash flow (FCF) amounted to HUF 48.3 billion cash inflow in the first nine months of 2023 (the first nine months of 2022: HUF 5.6 billion cash inflow).
Tibor R kasi, Magyar Telekom CEO commented:
Thanks to the successful execution of our sustainable growth strategy, our operations remained resilient during the third quarter, even in the face of a challenging macro environment. I am pleased to report that
Most recent headlines
11/12/2025
Dalet, a leading provider of cloud-native, end-to-end media workflow solutions, ...
28/11/2025
Nadia Fall attends the 2025 Sundance Film Festival premiere of Brides at the Egyptian Theatre on January 24, 2025, in Park City, Utah. (Photo by Donyale West/...
28/11/2025
It's easy to ignore those little red update available badges. But when it ...
28/11/2025
WASHINGTON Federal Communications Commission has released a tentative agenda for the December Open Commission Meeting scheduled for Thursday, December 18, 2025 ...
28/11/2025
The Professional Fighters League is looking to super-serve fans of mixed martial...
28/11/2025
Fubo has released in beta on select Roku devices a new feature that lets users display up to four simultaneous streams at once....
28/11/2025
The WNBA playoffs and Week 4 of the NFL regular season highlight the list of live sports events airing on television this weekend....
28/11/2025
The 32nd class of honorees to the B+C Hall of Fame took to the stage at New York's Ziegfeld Ballroom on September 26 for a gala induction event. Click below...
28/11/2025
We hold in our hands the very last Next Text for Next TV, the weekly back-and-fo...
28/11/2025
DirecTV said it made a deal with EchoStar to buy EchoStar's video businesses, including satellite-TV provider Dish TV and virtual MVPD Sling TV, for $1 plus...
28/11/2025
The Broadcasting+Cable Hall of Fame, the premier industry event paying tribute to the influencers, innovators and shining lights of broadcast, cable and streami...
28/11/2025
Friday 28 November 2025
Sky Sports x Slawn drop limited-edition football jersey...
28/11/2025
Rohde & Schwarz shows resilience in a challenging environment, revenue exceeds t...
28/11/2025
Unwrapped: The Toy Show Appeal - airing this Sunday on RT One and RT Player- s...
27/11/2025
LONDON Vizrt has added several AI-driven advanced features offering improved speed, intelligence and accuracy in the newest version of its media asset managemen...
27/11/2025
Prime Video has launched AI-powered video season recaps in a beta version for select English-language Prime Original series in the U.S., a move Amazon is callin...
27/11/2025
Back to All News
Netflix's Raat Akeli Hai: The Bansal Murders Marks a Grand...
27/11/2025
27 Nov 2025
GSMA brings M360 Eurasia 2026 to Samarkand in partnership with VEON...
27/11/2025
Tahar Rahim and Izuka Hoyle star in the gripping six-part Sky Original from Acad...
27/11/2025
Thursday 27 November 2025
Sky Arts Reveals the Nation's Greatest Basslines - and Queen Reign Supreme
The UK's most iconic basslines have been revealed...
27/11/2025
Back to All News
Stranger Things 5': Prepare for One Last Adventure With O...
27/11/2025
The media industry has a paradox at its core. It's an industry built on light, color and imagination, yet behind the scenes, it's powered by one of the ...
27/11/2025
Rating reflects rating progress across areas including policies, diversity & inclusion, health & safety and Net Zero leadership
Winchester, UK, 27 November 202...
27/11/2025
What are the industry standards for Retail Media? Kathryn explains that certification is based on the IAB Europe Retail Media Measurement Standards and the IAB ...
27/11/2025
World champion boxer and Irish sporting icon Katie Taylor will be in studio this...
27/11/2025
Roblox, one of the world's most popular online gaming platforms for primary ...
27/11/2025
Black Friday is leveling up. Get ready to score one of the biggest deals of the season - 50% off the first three months of a new GeForce NOW Ultimate membership...
26/11/2025
SVG Sit-Down: Prime Video EP Mike Muriano Previews Massive Black Friday Slate Fe...
26/11/2025
A cinematic snow sculpture at the 1995 Sundance Film Festival. Photo by Randall Michelson...
26/11/2025
Book podcasts are booming. On Spotify, you'll find everything from celebrity book clubs to deep dives with bestselling authors. And in markets where audiobo...
26/11/2025
Mumbai, November 24, 2025: In a first-of-its-kind initiative, JioStar, in collab...
26/11/2025
LONDON Factual content producer ITN Productions has launched a new low-latency IP gallery for news bulletins....
26/11/2025
MIAMI TelevisaUnivision said it struck a new multiyear distribution agreement with YouTube TV that includes distribution of TelevisaUnivision's U.S. network...
26/11/2025
OpenDrives, Inc., a leader in software-defined data storage and data services, today announced the launch of the Atlas Corporate Creative Solution. This new Atl...
26/11/2025
Disguise, the industry-leading company powering the world's biggest live performances, is partnering with pioneering LED wall manufacturer DVS to give atten...
26/11/2025
HighField AI, the pioneer in agentic and multimodal automation for broadcast and media production, today announced the expansion of its global channel partner n...
26/11/2025
As high-stakes Premier League fixtures approach and additional premium content launches, with MONO positioning themselves to dominate Thailand's sports stre...
26/11/2025
Hosting a wide variety of events from high-intensity NHL games to complex live music concerts and major entertainment productions, Montreal's 21,000 capacit...
26/11/2025
Vizrt, the leader in live production technology revolutionizing viewer engagement and experience, releases AI-driven advances focusing on speed, intelligence, a...
26/11/2025
ITN Productions, an award-winning factual content producer, today launched a new low-latency IP gallery for news bulletins. Responsible for delivering a leading...
26/11/2025
Ikegami reports ongoing advances throughout 2025 in developing and delivering coordinated television production solutions that maximize quality, versatility and...
26/11/2025
Following the Nov. 21 blackout of NBCUniversal channels on Fubo, the two sides have traded barbs about their inability to reach a new carriage deal....
26/11/2025
LONDON As TV sports rights become increasingly important for both broadcasters and streamers, Ampere Analysis predicts global investment in the genre will surpa...
26/11/2025
LOS ANGELES Vubiquity said it has achieved the Amazon Web Services (AWS) Media & Entertainment Competency as part of the AWS Partner Network (APN). This designa...
26/11/2025
WASHINGTON The Federal Communications Commission's Enforcement Bureau said it has entered into a consent decree with Comcast calling for the cable company t...
26/11/2025
Berklee Named to the Hollywood Reporters Top Music Schools List The publication highlights the college's screen scoring program, industry partnerships, and ...
26/11/2025
Back to All News
Animated Series Love Through a Prism' Casts New Light on ...
26/11/2025
Back to All News
NALIP Unveils Fifth Cohort of Director Incubator
Social Impact
26 November 2025
United States
Link copied to clipboard
The National Assoc...
26/11/2025
YouView Achieves Greenly Gold Certification for SustainabilityNov 26, 2025
YouView is proud to announce a Gold Certification award from Greenly for our perform...
Magyar Telekom results for the third quarter of 2023 
