Magyar Telekom’s 2024 third quarter results

Main results:

Total revenue increased by 13.8% year-on-year to HUF 246.1 billion in the third quarter of 2024. This improvement was caused by the continued strong demand for mobile data transmission and fixed broadband services, as well as the positive effect of the inflation-tracking price adjustment in Hungary. These increases were coupled with higher mobile device sales and RI/IT revenue growth, both reflecting favorable externalities.

• Mobile revenues increased by 15.1% to HUF 145.0 billion in the third quarter of 2024 compared to the same period of the previous year, which is due to the continuous growth of mobile data traffic revenues and higher device sales.
• Fixed-line revenues increased by 11.3% year-on-year to HUF 77.4 billion in the third quarter of 2024, reflecting the increase in fixed-line broadband and television revenues due to the expansion of the customer base, as well as the favorable effect of the inflation-tracking price adjustment applied to Hungarian subscription fees.
• System integration and IT (‘RI/IT’) revenues increased by 14.5% year-on-year and reached HUF 23.7 billion in the third quarter of 2024 thanks to increased revenues from large projects in Hungary.

Direct costs increased by 11.1% year-on-year to HUF 94.4 billion in the third quarter of 2024, mainly due to increased device sales costs in parallel with the increase in sales revenue.

Gross margin improved by 15.6% year-on-year to HUF 151.8 billion in the third quarter of 2024, thanks to higher service revenues, partially moderated by an increase in other direct costs.

Indirect costs increased by 9.4% year-on-year to HUF 55.6 billion in the third quarter of 2024, primarily due to higher personnel costs.

EBITDA increased by 19.5% year-on-year to HUF 96.2 billion in the third quarter of 2024 thanks to the improvement in gross margin. EBITDA AL increased by 21.3% year-on-year to HUF 88.7 billion in the third quarter of 2024.

Amortization costs decreased by 2.2% compared to the same period of the previous year, amounting to HUF 34.0 billion in the third quarter of 2024, due to the extension of the useful life of various assets.