GROWTH IN DATA USAGE, DYNAMIC NETWORK DEVELOPMENT, AND CONSISTENT OPERATION - MAGYAR TELEKOMS Q2 2025 RESULTS

06/08/2025

GROWTH IN DATA USAGE, DYNAMIC NETWORK DEVELOPMENT, AND CONSISTENT OPERATION - MAGYAR TELEKOMS Q2 2025 RESULTS

Budapest, August 6, 2025 17:32

Magyar Telekom continued to progress in line with its strategic objectives in 2025 through the continuous development of its fixed and mobile networks. The company further expanded its optical network coverage, allowing customers nationwide to connect to Telekoms network through 3.9 million gigabit-capable access points. The company also significantly increased its population-based outdoor 5G coverage, by 23% compared to the same period in 2024, reaching 86%. Furthermore, Telekom customers can use both the gigabit-capable fixed and 5G networks at no extra cost during the summer months. Network development is not only crucial for the company due to its strategic importance but also to ensure they can meet the continuously growing data usage demands of customers with the best quality.

In the second quarter, the monthly average data usage of residential customers was 16 GB, which is a 20% increase compared to the same period last year. The above, as well as consistent operations striving for efficiency improvement and cost optimization, are clearly reflected in the financial results of the quarter. In the second quarter of 2025, mobile revenues increased by 1.8% compared to Q2 2024, while fixed revenues slightly decreased. As a result, total revenues remained broadly unchanged compared to the same period last year, at HUF 241.3 billion. The value of EBITDA AL increased by 13.1% year-on-year to HUF 101.5 billion. The adjusted net income also increased in the second quarter, approaching HUF 55.9 billion by the end of June. In addition to the growing data demand, certain one-off gains also played a significant role in the development of the results, allowed Magyar Telekom to modify some parts of its full-year guidance set at the beginning of the year.

Magyar Telekom today reported its consolidated financial results for the second quarter and first half of 2025, in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU. The half-year report contains unaudited figures.

Highlights:

Total revenue remained broadly unchanged year-on-year, amounting to HUF 241.3 billion in Q2 2025 . Service revenue continued to increase driven by the sustained growth of mobile data and fixed broadband revenues. These increases were mostly offset by the YoY decline in SI/IT revenue and lower equipment sales.

Mobile revenue rose by 1.8% year-on-year to HUF 143.2 billion in Q2 2025 , driven by the continued growth in mobile data usage.

Fixed line revenue was moderately lower year-on-year, amounting to HUF 76.5 billion in Q2 2025, as increases in fixed broadband revenue was offset by lower voice retail and TV revenues.

System Integration and IT revenue was lower by 6.8% year-on-year, amounting to HUF 21.5 billion in Q2 2025, reflecting different seasonal dynamics of the projects in Hungary.

Direct costs were lower by 1.9% year-on-year, at HUF 87.4 billion in Q2 2025, thanks to lower SI/IT service-related costs and decline in bad debt and telecom tax expenses.

Interconnect costs remained stable year-on-year at HUF 4.9 billion in Q2 2025.

SI/IT service-related costs were lower by 10.5% YoY, amounting to HUF 13.8 billion in Q2 2025, in line with the year-on-year lower project volumes.

Impairment losses and gains on financial assets and contract assets (bad debt expenses) improved by 12.4% YoY to HUF 2.7 billion in Q2 2025, thanks to more favorable aging of the receivables, especially related to some major partners, compared to the base period.

Telecom tax declined by 6.3% year-on-year, amounting to HUF 6.0 billion in Q2 2025, reflecting primarily the lower mobile voice traffic generated by business customers.

Other direct costs were up by 1.1% year-on-year at HUF 60.0 billion in Q2 2025, primarily driven by higher roaming outpayments.

Gross profit improved by 1.6% year-on-year to HUF 153.9 billion in Q2 2025, thanks to improvement in service revenue contribution coupled with lower bad debt and telecom tax expenses.

Indirect costs were lower by 18.0% or HUF 9.8 billion year-on-year, at HUF 44.5 billion in Q2 2025, reflecting the positive impact from the elimination of the supplementary telecommunication tax and the higher operating income. These more than offset the increase in employee-related expenses.

Employee-related expenses increased by 6.7% year-on-year, amounting to HUF 26.6 billion in Q2 2025, primarily as a result of wage increase in effect from March 2025 at the Hungarian operation and from April 2025 at the North Macedonian operation.

Supplementary telecommunication tax was eliminated effective from January 1, 2025, resulting in a HUF 9.1 billion improvement year-on-year in Q2 2025.

Other operating expenses (excluding supplementary telecommunication tax) increased moderately year-on-year, amounting to HUF 21.4 billion in Q2 2025, as the reduction in energy expenses coupled with the positive impacts from efficiency measures could mostly compensate for the inflationary price pressure impacting several cost lines.

Other operating income amounted to HUF 3.5 billion in Q2 2025, as a result of the ca. HUF 1.5 billion gain in relation to the sale of ViDaNet coupled with one-off gains on real estate sales.

EBITDA increased by 12.6% year-on-year to HUF 109.3 billion in Q2 2025, driven by the improvement in gross profit coupled with lower indirect costs; EBITDA AL was up by 13.1% year-on-year to HUF 101.5 billion in Q2 2025.

Depreciation and amortization ( D&A') expenses were moderately higher year-on-year, amounting to HUF 36.3 billion in Q2 2025 , as the IT simplification measures in Hungary led to shortening of useful life of some software.

Profit for the period rose by 29.3% year-on-yea

LINK:	https://www.telekom.hu/about_us/press_room/press_releases/2025/august_...
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GROWTH IN DATA USAGE, DYNAMIC NETWORK DEVELOPMENT, AND CONSISTENT OPERATION - MAGYAR TELEKOMS Q2 2025 RESULTS

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