Magyar Telekom (MTELEKOM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 7.8% year-over-year to HUF 241.6 billion, driven by inflation-based fee adjustments, operational improvements, and strong demand for data and connectivity.

• EBITDA AL increased 26.7% year-over-year to HUF 97.5 billion, supported by gross profit momentum and the expiry of the supplementary telecom tax.

• Net income rose to HUF 54.6 billion, up 43%–60.8% year-over-year, mainly due to higher EBITDA and lower interest expenses.

• Strategic objectives advanced with expanded fiber and 5G coverage, and customer base growth in key segments.

• Free cash flow improved to HUF 28.5 billion, driven by profitability and working capital gains.

Financial highlights

• Revenue increased by 7.8% year-over-year to HUF 241.6 billion, reflecting service and subscription growth.

• EBITDA AL rose 26.7% year-over-year to HUF 97.5 billion, aided by gross profit momentum and tax expiry.

• Net income surged to HUF 54.6 billion, up 43%–60.8% year-over-year, with improved financial results and lower interest expenses.

• Free cash flow (excluding spectrum licenses) improved to HUF 28.5 billion, driven by EBITDA and working capital gains.

• Capex after lease increased 8.9% year-over-year to HUF 21.5 billion, reflecting network investments.

Outlook and guidance

• 2025 guidance reaffirmed: revenue growth of 1–3%, EBITDA AL growth of 12–15%, and adjusted net income target of around HUF 190 billion.

• Free cash flow (excluding spectrum licenses) expected to reach around HUF 180 billion.

• No inflation-based fee adjustment for consumers until at least H1 2026.