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 ...
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...
03/06/2026
Step sequencer-style panning tool revealed
Alongside their flagship self-titled sound-design platform, Sound Particles offer an array of creative effects an...
03/06/2026
Now features full H90 algorithm library
Eventide have announced the upcoming launch of the H9 Harmonizer Gen 2, a new and improved version of their hugely p...
03/06/2026
Significant discount available until 1 October 2026
Aim Audio have just announced a promotion that sees a significant discount applied to their Essence micr...
03/06/2026
Rohde & Schwarz to supply CERTIUM advanced communications system to Memmingen Ai...
03/06/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({...
03/06/2026
RT confirms multi-channel and free to air coverage of the expanded tournament with enhanced digital features and the return of Total Football for young fans
S...
03/06/2026
03 Jun 2026
VEON to Release 2Q26 Earnings on July 31, 2026 Dubai and New York, June 3, 2026 - VEON Ltd. (Nasdaq: VEON), a global digital operator ( VEON or t...
03/06/2026
RT has today announced Heineken 0.0 as the broadcast sponsor of their FIFA World Cup 2026 coverage.
The sponsorship, brokered by Dentsu, will see Heineken 0....
02/06/2026
Musically intelligent soft synth gets upgraded
Scaler Music will be probably be best known to many for their music theory tools, but their product range al...
02/06/2026
Powerful new vocal-production tool announced
Described as a vocal performance station , Klevgrand's latest plug-in combines pitch-correction with harmo...
02/06/2026
Launched alongside Go Green sale extension
McDSP have just released the latest addition to their APB line-up, DC-2 Dual Compressor, and have also announced ...
02/06/2026
Create custom tools for Ableton Live 12 Suite
Ableton have just introduced a new open JavaScript toolkit that allows anyone to create their own custom tools...
02/06/2026
Now features full H90 algorithm library
Eventide have announced the upcoming launch of the H9 Harmonizer Gen 2, a new and improved version of their hugely p...
02/06/2026
Plus UAD Half Yearly Sale now live
The latest arrival to the Universal Audio range delivers a new native pitch-correction plug-in that's capable of deli...
02/06/2026
Rohde & Schwarz to present comprehensive performance, conformance and spectrum-m...
02/06/2026
BTL Laboratory becomes Taiwan's first test house with a CTIA Certification c...
02/06/2026
If you've kept up with this article series, you know by now where to start w...
02/06/2026
With new DSP configurations and flexible licensing options, Calrec is removing the barriers to virtualised audio, giving broadcasters the freedom to scale produ...
02/06/2026
02 Jun 2026
VEON Closes USD 1.4 Billion Bond Offering, Refinancing 2027 Notes A...
02/06/2026
Praise for series three:
The Times - sun-dappled pleasure
The Daily Mail - The Homes Counties' Charlie's Angels
The Sun - 4* this [is an] enjoya...
02/06/2026
Wuppertal June 2, 2026
Gudrun Scharler Appointed CEO of Riedel Networks The Riedel Group today announced the appointment of Gudrun Scharler as CEO of Riedel N...
02/06/2026
Trust has become a commercial issue With global advertising spend forecast to exceed US$1 trillion this year*, the commercial consequences of weak governance co...
02/06/2026
June sees Ireland's cultural calendar in full bloom, as RT Supporting the Arts showcases a vibrant and wide-ranging programme spanning music, theatre, visu...
02/06/2026
After The Traitors Ireland launched in 2025, Irish audiences proved to have a taste for the global hit reality show. This Bank Holiday Monday fans can indulge e...
01/06/2026
Category line-up & sponsors announced
Photo: Paul Clarke
The Production Music Awards (PMA) have announced that submissions are now officially open ahead of...
01/06/2026
New hybrid sample/synthesis instrument revealed
Excite Audio have just released the latest instalment in their Evolve series, which has been developed in co...
01/06/2026
Latest TONEX expansion captures three rare vintage amps
The newest addition to IK Multimedia's ever-growing TONEX line-up introduces a set of three incr...
01/06/2026
Musically intelligent soft synth gets upgraded
Scaler Music will be probably be best known to many for their music theory tools, but their product range al...
01/06/2026
Rohde & Schwarz Satellite Industry Days 2026 guided by the motto From Earth to ...
01/06/2026
Luxembourg, June 1, 2026 - SES, a leading space solutions company, and Viva, Mexico's ultra low-cost airline, launched fast and reliable multi-orbit satelli...
01/06/2026
Mardi 2 juin 14h00
FilmLight (ARRI), 10 rue Ren Boulanger, 75010 Paris
Rejoignez-nous pour d couvrir comment FLAPI (l'API FilmLight) peut transformer e...
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...
29/05/2026
The days are getting longer, the temperatures are rising, and playlists are filling up for the season. With summer around the corner, Spotify's global edito...
29/05/2026
New retro-inspired MPC announced
There are few devices that have gained the status held by Akai Pro's MPC range, and in recent years, the company have s...
29/05/2026
Save up to 30 on acclaimed titles
Following a successful launch at Superbooth 2026, Bjooks have revealed that they will be continuing the Kickstarter campa...
29/05/2026
Binaural monitoring application improved
Genelec have just released an update that brings some powerful new features to their HRTF-based binaural headphone ...
29/05/2026
6 June 2026 at SAE Institute, London, UK
IMSTA FESTA 2026 is almost upon us, with some of the biggest names in pro-audio set to descend upon SAE Institute i...
29/05/2026
cetecom advanced certifies Rohde & Schwarz test solution for hybrid and Next Gen...
29/05/2026
May 29 2026, 09:00 (PDT) Dolby and rednote Bring More Immersive Storytelling to...
29/05/2026
Youtube exclusive special drops today
Watch now
UKTV today announces another e...
29/05/2026
Genelec announces V2.1 for Aural ID binaural headphone monitoring application posted: 29/05/2026
Aural ID 2.1 enhances binaural monitoring for stereo and ...
29/05/2026
At just 20 years old, Sean Melia from Summerhill Co. Meath has been revealed as the winner of Super Garden 2026. Sean is the youngest ever contestant and winner...
28/05/2026
Thomsons Climate Crisis Toolkit is already being put to work, helping journalist...
28/05/2026
A little refresh can go a long way. We've been making behind-the-scenes upda...
28/05/2026
Since early last year, our quarterly Creator Milestone Awards have celebrated podcasts from around the world that hit major streaming milestones on Spotify. Tod...
28/05/2026
New software-based MIDI multi-clock announced
Rapid Flow have just announced the launch of a new MIDI utility plug-in that aims to solve one of the most per...
Magyar Telekom results for the fourth quarter of 2020 
