Magyar Telekom results for the fourth quarter of 2020
Budapest, February 25, 2021 17:30
Magyar Telekom today reported its consolidated financial results for the fourth quarter and full year of 2020 , in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU. The quarterly financial report contains unaudited figures for each reporting periods.
Highlights:
Total revenues increased by 3.6% year-on-year to HUF 188.9 billion in Q4 2020 thanks to increases in telecommunication service revenues in both countries coupled with higher equipment sales, and a positive foreign exchange impact stemming from the strengthening of the denar compared to the forint . For the full year 2020, revenues were up 1.0% at HUF 673.0 billion as the mentioned positive impacts were mitigated by lower Hungarian SI/IT revenues.
Mobile revenues were up 3.6% year-on-year to HUF 97.9 billion in Q4 2020 , and 2.9% higher at HUF 364.6 billion in 2020, thanks to higher mobile data and equipment sales revenues which could fully offset lower retail voice revenues.
Fixed line revenues increased by 5.4% year-on-year, to HUF 58.0 billion in Q4 2020 and by 3.0% to HUF 219.0 billion in 2020 as the continued decline in voice revenues was fully offset by improvements in broadband and TV revenues at both operations.
System Integration (SI) and IT ( SI/IT') revenues were moderately up at HUF 33.0 billion in Q4 2020 . In Hungary, revenue contraction slowed to 2.9% year-on-year in Q4 2020 reflecting higher deliveries to the public and financial sectors, whereas in North Macedonia, strong increase was recorded in relation to a hardware delivery project. In full year 2020, SI/ IT revenues recorded a decline of 10.2% to HUF 89.5 billion, driven by lower volumes of implementation projects delivered primarily to the public sector in Hungary that could not be offset by higher customized solution projects related revenues in North Macedonia.
Direct costs increased by 3.0% year-on-year to HUF 90.9 billion in Q4 2020 mostly driven by higher equipment costs. For 2020, direct costs were up by 1.7% year-on-year at HUF 297.5 billion reflecting increases in telecom tax and other direct costs partly mitigated by lower SI/IT expenses.
Interconnect costs increased by 10.7% year-on-year to HUF 5.9 billion in Q4 2020, reflecting the sharp increase in off-network mobile voice traffic primarily visible at the North Macedonian operation, that led to higher payments to domestic mobile operators.
SI/IT service-related costs increased moderately year-on-year to HUF 23.7 billion in Q4 2020, reflecting slightly higher volume of related projects. In full year 2020, SI/IT service-related costs declined by 12.2% to HUF 63.3 billion driven by lower volume of implementation projects in Hungary during the year.
Bad debt expenses decreased by 20.7% year-on-year to HUF 2.5 billion in Q4 2020, thanks to favorable aging of receivables in Hungary, particularly in mobile coupled with absence of negative one-off items impacting Q4 2019 results in North Macedonia that combined more than offset a moderate increase related to COVID-19 effects. However, in full year 2020 bad debt expenses were up by 7.3% at HUF 9.7 billion, reflecting the absence of a one-off favorable impact resulting from a reduction of the impairment rates applied to the Hungarian fixed and mobile operations during 2019, partially offset by the favorable aging of mobile receivables at the Hungarian operation and the absence of one-off impairments in North Macedonia.
Telecom taxrose by 11.4% year-on-year to HUF 6.7 billion in Q4 2020, driven by increases in mobile voice traffic in the business and residential segments and higher residential landline usage in Hungary.
Other direct costs were up 3.8% year-on-year at HUF 52.2 billion in Q4 2020, driven primarily by higher equipment costs in both countries coupled with an increase in the Hungarian TV content outpayments, latter also reflecting the weakening of the forint against the euro. These could only be partially offset by lower roaming outpayments.
Gross profit improved by 4.1% year-on-year to HUF 97.9 billion in Q4 2020 thanks to higher contribution from telecommunication services partly counterbalanced by lower roaming results in both countries of operation. Gross profit was up moderately to HUF 375.6 billion in 2020 , as the positive telecommunication service trends were mitigated by lower Hungarian SI/IT contribution.
Indirect costs improved by 3.0% year-on-year, to HUF 35.3 billion in Q4 2020, and by 2.6% year-on-year to HUF 149.7 billion in 2020 , thanks to broad-based cost saving measures implemented at the Hungarian operation.
Employee-related expenses rose up by 4.0% year-on-year to HUF 20.6 billion in Q4 2020. The increase was reflecting a one-time bonus payment to employees in the frame of a Deutsche Telekom Group wide initiative coupled with moderately higher severance related expenses. In full year 2020,employee-related expenses improved by 1.5% year-on-year to HUF 79.0 billion, reflecting a reduction in headcount partly offset by the combined impacts of the general wage increase, a rise in bonus payments and higher severance expenses.
Other operating expenses improved by 8.6% year-on-year to HUF 18.4 billion in Q4 2020, primarily due to savings in marketing, advisory and maintenance expenses.
Other operating income was moderately up at HUF 3.7 billion in Q4 2020, driven by income related to real estate sales in Hungary. In full year 2020, other operating income decreased to HUF 5.8 billion in 2020 from HUF 7.6 billion in 2019, as on an annual basis profits realized from real estate sales in Hungary declined.
EBITDA rose by 8.6% year-on-year to HUF 62.6 billion in Q4 2020, and by 2.4% to HUF 225.9 billion in full year 2020, as the result of higher gross profit co
Europe Stories
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
09/10/2026
September 10 2026, 06:00 (PDT) Dolby Expands Dolby OptiView Platform with New Capabilities at IBC 2026
New Sports Intelligence helps providers better unders...
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...
10/09/2026
Editing, restoration & mastering suite upgraded Acon Digital Acoustica 8 audio editing restoration mastering software.
Acon Digital have just launched the la...
10/09/2026
Classic synths & drum machines available to play
Based in Reading, UK, Readipop are a music and arts charity with a long track record of innovative, partici...
10/09/2026
Popular model updated & new addition introduced
With many of the models in Neumann's KH family now boasting onboard DSP and support for the company'...
10/09/2026
Improved desktop interface announced
The latest iteration of Arturia's flagship desktop audio interface has just arrived, introducing improved preamps, ...
10/09/2026
Progress needs proof: Rohde & Schwarz showcases its trailblazing test solutions ...
10/09/2026
The beloved duo are back with big challenges and even bigger laughs as they discover if you're ever truly too old to try something new.
Previous praise for...
10/09/2026
Thursday 10 September 2026
Sky News Defence Insider app launches as new researc...
10/09/2026
Thursday 10 September 2026
Award-winning network Sky Mobile to offer Apple iPho...
10/09/2026
Thursday 10 September 2026
Sky unveils gripping teaser for The Good Daughter, coming this NovemberTurn on cookies to view this content. Go to Privacy options a...
10/09/2026
Harmonic Leads the New Era of Broadband Connectivity at SCTE TechExpo 2026 Showcase Spotlights Include:
New cOS SensAI intelligence fabric unleashing data-pow...
10/09/2026
RT to Broadcast Amgen Irish Open free-to-air
New multi-year agreement will see RT continue to bring the Amgen Irish Open to Irish audiences
Ryder Cup hig...
10/09/2026
More than 30 women report allegations of sexual harassment, misogyny and bullying within National Ambulance Service
Tonight on RT Prime Time, 9:35pm, RT One ...
10/09/2026
Series 3 of Nero's Class begins Friday 11 September on RT Listen
The third...
09/09/2026
New parts aimed at hip-hop and pop productions
The latest update to Celemony's innovative virtual session musician expands the collection of built-in in...
09/09/2026
Save up to 40% until 21 September 2026
Sonarworks are currently running their Autumn Sale, with discounts of up to 40% currently available across their rang...
09/09/2026
Upcoming title officially launches in September 2026
Bjooks' celebrations for this year's 909 Day will be welcome news amongst drum machine lovers, ...
09/09/2026
September 9 2026, 22:35 (PDT) Cinema Sunshine Becomes Japan's First Exhibit...
09/09/2026
Wednesday 9 September 2026
Tom Daley adds final stitch to giant Baa-Ewe' t...
09/09/2026
Red Seat Ventures Integrates Barometer into Speakeasy to Maximize Podcast Revenu...
09/09/2026
Baselight-powered color comes natively to Media Composer, connecting creative de...
09/09/2026
RT brings three packed days of live radio, entertainment, news, weather and fun
Join RT Radio 1: Morning Ireland, Oliver Callan, Today with David McCullagh,...
08/09/2026
Built for rap producers, by rap producers
Sauceware Audio, the independent plug-in company founded by Grammy-nominated producer Jacob (Travis Scott, 21 Sava...
08/09/2026
Classic Sound Techniques design revived
Warm Audio's latest release delivers a meticulous recreation of the preamp circuitry employed by the Sound Techn...
08/09/2026
Latest soft synth inspired by the Memorymoog
XILS Lab have just launched a software instrument that draws its inspiration from Moog's iconic Memorymoog,...
08/09/2026
September 08, 2026 NORTHRIDGE, Calif. - Soundcraft today announced the launch of its Signature Plus Series Analog Connected Mixing Consoles. As the next genera...
08/09/2026
Tuesday 8 September 2026
Sky Go gets a major upgrade for Sky Glass and Sky Stream customers
Today, Sky launches a new version of the Sky Go app for Sky Glass ...
08/09/2026
Documentary thriller simulating a Russian attack on UK soil will culminate in a live final episode reuniting the playersTuesday 8 September 2026
Trailer releas...
08/09/2026
Tuesday 8 September 2026
Jamie Demetriou and Amelia Dimoldenberg to host next t...
08/09/2026
Wuppertal September 8, 2026
Riedel Introduces New OnAir Headset PlatformRiedel Communications today announced the launch of its new OnAir headset platform, a...
08/09/2026
BERLIN, September 8, 2026 - J nger Audio will introduce a major expansion of its flexAI audio processing platform at IBC 2026. The flexAI system adds autonomous...
08/09/2026
New Vendor-Agnostic Broadband Intelligence Fabric Reduces Operational Complexity and Improves Service Quality for Broadband Service Providers SAN JOSE, Calif. -...
08/09/2026
Arvato Systems Brings TI Expertise to the Stage
Panels, workshops, and real-world examples at the TI-SUMMIT 2026
Arvato Systems, a partner of the TI-SUMMIT 2...
08/09/2026
On October 1, Apple Arcade is rolling out a lineup of fun new games for players ...
07/09/2026
Two new full-range, flat-response cabinets introduced
HeadRush have recently introduced a pair of new full-range, flat-response cabinets designed for player...
07/09/2026
Answering questions about AI in game audio
GameSoundCon, the largest professional conference for video game music and sound design, have announced that they...
07/09/2026
New directional headset mic on show at IBC
Just ahead of this week's IBC show, DPA have announced the launch of a new directional headset that's bee...
07/09/2026
We are not building systems to replace human decision-making; we are building systems that execute our decisions at machine speed. The media companies that win ...
07/09/2026
Every day, we rely on products to work safely, from the power bank in your bag to the solar panels on rooftops. Behind that trust is a process called conformity...
07/09/2026
Monday 7 September 2026
Freddie Meredith joins cast of SNL UK ahead of start of Season 2
Freddie Meredith Images
ZIP (3MB)
Saturday Night Live UK announces ...
07/09/2026
Monday 7 September 2026
Sky and NFTS team up to launch new routes into screen careers
Sky has today announced a new apprenticeship programme, with application...
07/09/2026
Monday 7 September 2026
Sky Sports announces most comprehensive NFL coverage to...
07/09/2026
Dolby, MainConcept, Techex and J nger Audio will showcase the industry's first demonstration of Serial Audio Definition Model (S-ADM) in a cloud-based produ...
07/09/2026
dB Broadcast will showcase APIS Hive, its software platform for designing, deploying and managing modern broadcast infrastructures, at IBC 2026.
Developed from...
07/09/2026
552,000 streams on RT Player
The historic fight, which saw Katie Taylor become...
06/09/2026
Recreates Rolands TB-303 & MC-202
BS-203 MacroAcidizer is the first virtual instrument from Born Second, and it offers a recreation of two Roland classics -...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
Magyar Telekom results for the fourth quarter of 2020 
