Magyar Telekom (MTELEKOM) Investor Presentation summary

Company overview and market position

• Leading integrated telecommunications and SI/IT provider in Hungary and North Macedonia, with a EUR 4.0 bn market cap and majority ownership by Deutsche Telekom.

• Offers a full spectrum of fixed and mobile services, with primary listing on the Budapest Stock Exchange.

• Maintains stable market leadership in Hungarian mobile, fixed broadband, and TV segments, with increasing shares in fixed and TV markets.

• Continuous investment in network infrastructure, including fiber rollout and 5G expansion, with 77% population-based 5G coverage and gigabit access to 70% of the network.

• Recognized for strong ESG performance and a BBB+ credit rating with a stable outlook.

Financial performance and shareholder returns

• 2024 revenue reached HUF 967 bn, EBITDA AL HUF 333 bn, adjusted net income HUF 163 bn, and free cash flow HUF 166 bn.

• Record 2024 shareholder remuneration: HUF 90.9 bn dividend (~HUF 100/share) and HUF 39.1 bn share buyback.

• Enhanced policy targets 60–100% of adjusted net income for annual shareholder returns from 2025 onward.

• Q1 2025 saw revenue up 7.8% YoY, EBITDA AL up 26.7%, and adjusted net income up 43% YoY, driven by strong operational momentum and expiry of supplementary telecom tax.

• Free cash flow in Q1 2025 rose to HUF 28.5 bn, supported by EBITDA growth and improved working capital.

Strategic priorities and operational highlights

• Three-pronged strategy: network leadership, customer-centric growth, and efficiency through automation and digitalization.

• 2025 focus includes expanding fiber coverage by 250,000 access points and increasing 5G outdoor coverage to 99% by end-2026.

• Q1 2025 achievements: 58,000 new fiber access points, 24,000 new fiber broadband customers, and over 1.4 million Magenta Moments clients.

• No inflation-based fee adjustment in 2025, with indirect costs kept under control despite inflationary pressures.

• Ongoing commitment to sustainability, digital inclusion, and climate protection, including carbon neutrality since 2015.