
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
Most recent headlines
09/11/2025
Dalet today announced a transformative leap forward for media operations: Agentic Artificial Intelligence (AI) that unifies the Dalet ecosystem under one natura...
06/10/2025
France T l visions, France's leading broadcaster, has received the 2025 EBU ...
17/09/2025
Tech Focus: Audio Training, Part 2 - Manufacturers Offer Extensive Online Learni...
17/09/2025
Tech Focus: Audio Training, Part 1 - A1 Shortage Remains a Major-League Challeng...
17/09/2025
It was the ultimate convergence of pop culture and literary prestige: Last night, Dua Lipa brought her Service95 Book Club podcast to the stage for a special li...
17/09/2025
During August, streaming's share of TV viewing in Mexico showed an increase of 0.4% compared to the previous month, accounting for 25% of TV viewing.
Discl...
17/09/2025
CYPRESS, Calif. FOR-A America has named Jo Aun as senior manager of product engineering, a new role responsible for guiding the planning, development and rollou...
17/09/2025
PlayBox Neo, in partnership with CIS Group, a leading provider of media and broadcast technology solutions, has successfully deployed PlayBox Neo's Dual Cha...
17/09/2025
In a relationship that mirrors societal advances in sustainability, Brightline Lighting and the Federal Energy Regulatory Commission (FERC) Headquarters have en...
17/09/2025
Clear-Com is proud to support the world-class productions of Alley Theatre, one of the oldest and largest nonprofit resident theatres in the United States. With...
17/09/2025
Arch Platform Technologies (www.archpt.io), a pioneer in automated, scalable cloud infrastructure for high-performance workflows, today announced a Strategic Co...
17/09/2025
Over 300 selected decision-makers from start-ups, corporates, and VC funds worldwide will gather for the third edition of the event, united by a single goal: to...
17/09/2025
Telestream, a global leader in media workflow technologies, is excited to announce that its flagship Vantage platform and its next-generation AI capabilities re...
17/09/2025
Mediagenix, a global leader in smart content solutions that profitably connect the right content to the right audience, proudly announces its three Best of Show...
17/09/2025
In a move to further establish a firm foothold across South East Asia, PlayBox Neo, the well-respected name in broadcast playout and channel branding, has appoi...
17/09/2025
Wisycom, a global leader in advanced wireless audio solutions, announced two major wireless solutions at IBC 2025 (Stand 8.D30). This includes the Portable RF-o...
17/09/2025
Six Berklee Alumni Win Emmy Awards The recipients were recognized for their contributions to acclaimed programs Severance, The Studio, The Penguin, SNL50: The...
17/09/2025
Applications Open for Berklee in Santo Domingo The weeklong contemporary music program will run January 5-10, 2026.
By
Colette Greenstein
September 17, 2025
...
17/09/2025
Ukrainian Students Find Creative Consonance' at Berklee Valencia Through ELIA's UAx Platform, six students from Kyiv joined Berklee Valencia for a week...
17/09/2025
Earlier this year Avid announced Kenna Hilburn as its new senior vice president of product. Recently Hilburn was promoted to Avids new Chief Product Officer, su...
17/09/2025
Transatlantic collaboration combines experience and agility to drive innovation in network design and delivery
Luxembourg, September 16, 2025 - SES, a leading ...
17/09/2025
NEW YORK Madhive has announced that the Fox Television Stations have joined its Live Sports Marketplace....
17/09/2025
SYRACUSE, N.Y. Sony Electronics has announced that it is partnering with the Newhouse School at Syracuse University to provide state-of-the-art equipment, hands...
17/09/2025
SAN JOSE, Calif. Roku has announced that the first smart projector using its Roku TV operating system, the Aurzen Roku TV Smart Projector D1R Cube, is now avail...
17/09/2025
Wednesday 17 September 2025
UK artists capture icons of stage and screen, inclu...
17/09/2025
Jo Returns to FOR-A as Senior Manager of Product Management and Engineering...
17/09/2025
For the Moon Safari anniversary tour, AIR opened the doors to their backstage. Just a few hours before the Paris concert, DPA met with two key figures of the te...
17/09/2025
Auditions will be held in Dublin, Cork and Galway
The County Parade returns f...
16/09/2025
SVG All-Stars: Leigh Michaud, Manager, Remote Operations, ESPNThe UConn grad rose from ESPN's mailroom to become one of its most valuable ops leadersBy Bran...
16/09/2025
Live From IBC 2025: Friday's Latest From Halls 1-4, Outdoor Exhibits in Amst...
16/09/2025
Live From IBC 2025: Saturday's Latest From Halls 5-7 in Amsterdam By SVG Staff
Friday, September 12, 2025 - 17:00
Print This Story
The SVG Europe and ...
16/09/2025
Live From IBC 2025: Sunday's Latest From Halls 8-10 in Amsterdam By SVG Staff
Saturday, September 13, 2025 - 17:00
Print This Story
The SVG Europe and...
16/09/2025
Live From IBC 2025: Monday's Latest From Halls 11-14 in Amsterdam By SVG Staff
Sunday, September 14, 2025 - 17:00
Print This Story
The SVG Europe and ...
16/09/2025
Amazon Prime Video Picks Up Four Hours of Early-Round Masters Coverage in 2026 By Jason Dachman, Editorial Director, U.S.
Tuesday, September 16, 2025 - 10:15...
16/09/2025
VERSANT Inks Deal for League One Volleyball as Women's Sports Rights Slate G...
16/09/2025
ESPN VP, Corporate Communications, Katina Arnold Named SVP, Disney Advertising C...
16/09/2025
IBC 2025 in Review: SVG Europe's Full Collection of Video Interviews From th...
16/09/2025
Hace una d cada, la m sica latina representaba apenas el 8% de las reproducciones globales en Spotify. Hoy, constituye m s de una cuarta parte (27%) de toda la ...
16/09/2025
A decade ago, Latin music made up just 8% of global Spotify streams. Today, it a...
16/09/2025
Spotify is expanding our video lineup with a new partnership with Zoo 55, part of ITV Studios. For the first time, acclaimed content from ITV Studios is landing...
16/09/2025
At DSEI 2025, James Dunne of L3Harris Maritime UK chaired a panel on aligning the supply chain to the warfighter, where leaders discussed modernising support fo...
16/09/2025
Calrec has strengthened its collaboration with audio metering expert RTW by integrating RTW's new TMxCore metering platform across its full range of Argo IP...
16/09/2025
College Football Scores Top Telecast in August with 16M+ Viewers on FOX, Followe...
16/09/2025
Collaboration marks the first SSP integration of Gracenote IDs, enabling show-le...
16/09/2025
AMSTERDAM The organizers of IBC2025 are reporting that 43,858 visitors from more than 170 countries attended the event, which had more than 1,300 exhibitors and...
16/09/2025
Wooden Camera announces the release of its new Accessory Collection for the FUJIFILM GFX ETERNA 55. The highlights of this collection include vital power soluti...
16/09/2025
Anton/Bauer, a leading manufacturer of mobile power solutions for broadcast and cinematic equipment, has announced the launch of Anton/Bauer Fleet Management, a...
16/09/2025
Teradek, a leading provider of video transmission and live production solutions, today announced the launch of Prism Jetpack, a groundbreaking 5G video contribu...
16/09/2025
Astera, the leader in wireless LED lighting solutions, announces the ultra-versatile SolaBulb. Building on the success of the Astera bulb family, SolaBulb intro...
16/09/2025
As the world gathered at TED2025 to explore the provocative theme "Humanity Reimagined", Clear-Com , supported by NETGEAR networking infrastructure, delivered f...