4iG (4IG) Q3 2024 earnings summary

Executive summary

• Expansion in the Western Balkans with a new North Macedonian subsidiary established and continued implementation of the Transformation Programme, including structural separation and integration of telecom subsidiaries.

• Transformation program progressing as planned, with management changes and board expansion to support international growth.

• Launch of the new unified 'ONE' brand for telecom services from January 2025.

• Presentation and launch of the HUSAT satellite program, including 1 GEO and 8 LEO satellites, aiming for multiple launches by 2032.

• Strategic acquisitions and partnerships in the domestic TV market, including PR-Telecom, Direct One, and RTL Hungary.

Financial highlights

• Q3 2024 net revenues rose 15.7% year-over-year to HUF 179.4 billion, driven by IT expansion and B2B mobile growth.

• 9M 2024 net revenues up 20.54% year-over-year to HUF 507.8 billion, reflecting Vodafone acquisition and subscriber growth.

• Q3 2024 normalized EBITDA increased 2.7% year-over-year to HUF 59.3 billion, with a 33% margin.

• 9M 2024 normalized EBITDA up 15.11% to HUF 169.9 billion, with a 33.4% margin.

• Net loss after tax for 9M 2024: HUF 26.1 billion, mainly due to non-cash interest expenses and unrealized FX losses.

Outlook and guidance

• Integration of telecom services under the 'ONE' brand expected to enhance operational efficiency and customer experience from 2025.

• HUSAT satellite program targets operational launch of first satellites by end of 2028, with full deployment by 2032.

• Transformation Programme expected to increase enterprise value by over HUF 400 billion and improve operational efficiency.