Magyar Telekom results for the fourth quarter of 2017
Budapest, February 21, 2018 18:00
Magyar Telekom reported its consolidated financial results for the fourth quarter and the full year of 2017, in accordance with International Financial Reporting Standards (IFRS).
Highlights:
Total revenues for Q4 2017 increased by 6.3% year-on-year to HUF 161.4 billion , attributable to the significant growth in SI/IT, equipment and mobile data revenues that more than offset the decline in fixed and mobile retail voice and energy revenues. Factors driving these movements were similar to those behind the 6.4% increase in total revenues to HUF 610.9 billion for the full year 2017. A breakdown by geography shows revenue for the full year 2017 grew by 7.3% in Hungary, while the Macedonian operation witnessed a 3.0% decline.
Mobile revenues in Q4 2017 increased by 5.9% year-on-year to HUF 83.3 billion as higher mobile data and equipment revenues more than offset the decline in voice revenues both in Hungary and Macedonia. With regards to the full year 2017 results, mobile revenues increased by 5.4% to HUF 322.7 billion for similar reasons.
Fixed line revenues increased by 5.3% year-on-year to HUF 51.5 billion in Q4 2017 at the Group level. The improvement was driven by the Hungarian operations' results where higher equipment and TV revenues more than offset the continuing structural decline in voice revenues. In Macedonia, the sustained positive momentum in TV was offset by declines elsewhere (voice, broadband, equipment and wholesale revenues). With regards to the full year 2017, fixed line revenues increased to HUF 196.1 billion, up from HUF 193.8 billion in 2016 for similar reasons.
SI/IT revenues increased by 15.7% year-on-year to HUF 26.4 billion in Q4 2017, and by 30.0% to HUF 87.5 billion in full year 2017. The increase was primarily driven by the acceleration of EU fund inflows into Hungary after the temporary drop witnessed in 2016, leading to strong growth at the Hungarian operation. At the same time, System Integration and IT revenues fell in Macedonia as a number of major public sector projects witnessed some delays following a period of political uncertainty.
Energy Service revenues decreased by 78.4% year- on- year to HUF 0.3 billion in Q4 2017 and by 32.1% to HUF 4.6 billion in full year 2017. The sharp decline reflects the expiry of the last remaining gas universal contracts and the exit from the residential segment of the electricity market which came into effect on November 1, 2017.
Direct costs increased by 14.8% for Q4 2017 year-on-year to HUF 72.1 billion , primarily due to higher SI/IT and equipment sales costs which were in line with rises in the related revenue. The same drivers led to the 15.7% increase in direct costs for the full year 2017 to HUF 245.8 billion, from HUF 212.4 billion in 2016.
Interconnection costs remained broadly unchanged at HUF 4.9 billion in Q4 2017 as higher mobile traffic which led to increased payments to domestic mobile operators in Hungary was offset by lower interconnection expenses in Macedonia reflecting the MTR cuts in December 2016. For the full year 2017, interconnection costs declined by 3.8% to HUF 18.9 billion, as the above impacts were coupled with a decline in outpayments related to the termination of some wholesale activities at our Romanian subsidiary.
SI/IT service related costsincreased by 33.2% to HUF 18.7 billion in Q4 2017, in line with the related revenue increases.
Energy service related costsdecreased by 57.9% to HUF 0.7 billion in Q4 2017, as a result of the exit from the residential segment of the electricity market with effect of November 1, 2017.
Bad debt expenseswere lower by 49.5% at HUF 0.9 billion in Q4 2017, reflecting the lower rates of impairment applied to the Hungarian mobile operations due to the improved rates of collection.
Other direct costsincreased by 17.3% to HUF 40.3 billion in Q4 2017 primarily due to the higher costs of mobile equipment, accessories and other equipment sales, in line with the higher sales volumes recorded in both Hungary and Macedonia, together with an increase in Hungarian roaming outpayments.
Gross profit improved marginally to HUF 89.3 billion in Q4 2017 year-on-year as the improvement in the level of bad debt expenses was mostly offset by the lower SI/IT gross margin and higher equipment and roaming related outpayments. For the full year 2017, gross profit improved 1.0% to HUF 365.1 billion, from HUF 361.6 billion in 2016, as the strong increase in revenues more than offset the decline in overall gross margin.
Indirect costs declined slightly by 0.4% to HUF 47.1 billion in Q4 2017year-on-year , as the decline in other operating expenses compensated for the higher severance costs. For the full year 2017, indirect costs were 3.0% higher year-on-year, at HUF 179.4 billion, due to the absence of positive one-off items (the sale of Origo and Infopark Building G) that occurred in 2016.
Employee related expenses increased by 7.6% to HUF 22.1 billion in Q4 2017 due to higher severance expense relating to the Hungarian headcount reduction coupled with an increase in the average number of Group employees resulting in higher wage costs.
Other operating expenses improved by 6.2%, amounting to HUF 27.5 billion in Q4 2017, thanks to cost saving measures implemented during the year resulting in lower HR-related, material and marketing costs. For the full year 2017 however, other operating expenses remained broadly stable at HUF 98.5 billion as the positive impacts from these cost saving measures were matched by an increase in rental fees and maintenance costs.
Other operating income remained stable at HUF 2.5 billion in Q4 2017 as lower income from real estate sales was compensated by higher brand fee income emanating from the E2 energy joint venture. However, for
Most recent headlines
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...
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...
08/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/05/2026
Liberty University on why broadcast technology isn't just a technical invest...
08/05/2026
COW Jobs: UGC, On-Camera Video Content
Brie Clayton May 7, 2026
0 Comments
UGC, On-Camera Video Content
April 17, 2026Documentary Editor - US,......
07/05/2026
Journalists reporting on Sudan are working in one of the most complex and fast-m...
07/05/2026
Multi-year partnership positions Victory+ as a free home for Dallas Cowboys orig...
07/05/2026
From sideline reporting to directing and producing, the talented sophomore is building a well-rounded foundation for a career in live sports production
In the ...
07/05/2026
Cobalt Digital has received two Future Best of Show awards at NAB Show 2026. The COBALT blueCORE platform was recognized by TV Tech, and the COBALT PACIFIC ULL-...
07/05/2026
ESPN analyst Mina Kimes will host the televised semifinals and finals of the 202...
07/05/2026
Bitmovin has announced that MUBI, the global film streaming platform, has selected Bitmovin as its cloud VOD encoding partner. Bitmovin's encoding infrastru...
07/05/2026
NBCUniversal Telemundo Enterprises and the U.S. Soccer Federation have announced...
07/05/2026
Angel City Football Club (ACFC) and Victory have announced a regional broadcast partnership bringing live match coverage to fans across the greater Los Angeles...
07/05/2026
Spiideo has announced the launch of AI Highlights inside Spiideo Play, its automated sports production platform. AI Highlights combines video, event data, audio...
07/05/2026
Leostream Corporation has announced a unified remote access ecosystem for high-p...
07/05/2026
The Atlanta Dream has partnered with Victory to stream all locally broadcast Dream games for free, expanding the team's digital distribution strategy and g...
07/05/2026
Riedel Communications has announced the appointment of Marc Engroff as Chief Fin...
07/05/2026
SES and ARD, Germany's largest public broadcasting network, have announced a long-term extension of their satellite distribution partnership through 2039. U...
07/05/2026
UpLight Technologies delivers a flexible video and lighting system for a new televised sportLaunching the Pro Cheer League required more than creating a compell...
07/05/2026
Full Day Productions and GSE Worldwide have announced Spikes Under the Lights, a...
07/05/2026
Seit dem Start im Jahr 2023 hat DJ (Beta) das personalisierte H rerlebnis von 94...
07/05/2026
Da quando stata presentata nel 2023, DJ (beta) ha aiutato a definire un'esperienza d'ascolto pi personalizzata per 94 milioni di utenti Spotify Premi...
07/05/2026
Since launching in 2023, DJ (beta) has helped shape a more personalized listenin...
07/05/2026
Desde o lan amento em 2023, o DJ (beta) j ajudou a deixar a experi ncia de ouvi...
07/05/2026
From our earliest days, Spotify has been built on a simple principle: Great audio should be easy to reach. It's what's driven us to expand from music to...
07/05/2026
Asian and Pacific Islander artists continue to shape the global soundscape, pushing creative boundaries and connecting with fans worldwide. This Asian & Pacific...
07/05/2026
Company announce long-requested choir instrument
In the latest expansion of their Symphonic Elements series, UJAM have introduced an all-new vocal instrumen...
07/05/2026
Modular-inspired sound generation with digital control
Buchla have introduced Ziggy, a new compact synthesizer built around the company's complex oscill...
07/05/2026
Combines analogue voices with digital synthesis and sequencing
Polyend have announced Drums, a new hybrid analogue and digital drum machine that combines sy...
07/05/2026
Control surface now officially supports four DAWs
When Nektar launched the Panorama CS12 control surface, it worked exclusively with Apple's Logic Pro, ...
07/05/2026
In the first quarter 2026, SGL Carbon generated consolidated sales of 184.5 million, which was 49.8 million, or 21.3%, lower than in the prior year (Q1 2025: ...
07/05/2026
Rohde & Schwarz and Greenerwave achieve precise and fast ESA antenna characteriz...
07/05/2026
Two multi-role L3Harris products - the Red Wolf launched effects vehicle and SK...
07/05/2026
L3Harris will be developing key features of a secure and resilient digital infra...
07/05/2026
Alysa Liu and Shohei Ohtani Help Drive Viewership as 91 of the Top 100 Broadcast...
07/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/05/2026
Cobalt Digital Wins Two Future Best of Show Awards at 2026 NAB Show
Manufacturer Recognized by TV Tech and TVBEurope for Innovation in signal processing
Cobal...
07/05/2026
Software and hardware platforms, AI power and user-friendliness on show...
07/05/2026
Intinor will demonstrate its latest technical enhancements for the Direkt series at BroadcastAsia 2026. With a continued focus on reliable contribution and remo...
07/05/2026
Bitmovin has announced that MUBI has chosen Bitmovin as its cloud VOD encoding partner, replacing MUBI's legacy on premises encoding setup to improve scalab...
07/05/2026
Meet Graduates from Berklees Class of 2026 Members of this years graduating class reflect on their proudest moments at Berklee and look ahead to whats next.
...
07/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/05/2026
At BroadcastAsia 2026, Interra Systems will demonstrate its latest innovations in automated quality control (QC), real-time monitoring, and captioning. The comp...
07/05/2026
At this year's Broadcast Asia, PlayBox Neo is set to unveil recent innovations across its PlayBox Neo Suite and integrated range of broadcast media solution...
Magyar Telekom results for the fourth quarter of 2017 
