Magyar Telekom (MTELEKOM) Q1 2026 earnings summary

Executive summary

• Strategic execution in Q1 2026 led to resilient financial performance, with continued fiber expansion, successful 2100 MHz frequency license renewal on favorable terms, and data center capacity expansion.

• Q1 2026 saw a 1.5% year-over-year revenue decline to HUF 238.1 billion, mainly due to lower IT sales and handset export activities, but profitability improved with EBITDA AL up 4.0% and adjusted net income up 7.5%.

• Strong demand for core services, fiber uptake, and mobile data usage supported stable ARPU and underlying revenue quality.

• Received a CDP climate score of 'B' and Supplier Engagement Assessment score of 'A'.

• Upgraded 2026 guidance reflects strong Q1 delivery, targeting mid-single-digit EBITDA AL growth, around 10% adjusted net income increase, and at least HUF 200 billion free cash flow.

Financial highlights

• Revenue for Q1 2026 was HUF 238.1 billion, down 1.5% year-over-year, mainly due to lower handset export and IT sales.

• EBITDA AL grew by 4.0% year-over-year to HUF 101.4 billion, supported by gross profit improvement.

• Net income increased by 7.5% year-over-year to HUF 58.7 billion, driven by EBITDA growth and improved net financial result.

• Free cash flow rose by 24.8% year-over-year to HUF 35.6 billion, reflecting EBITDA uplift and lower capex outpayments.

• Capex after lease (excluding spectrum) increased 17.9% year-over-year to HUF 25.3 billion; spectrum capex was HUF 15.1 billion.

Outlook and guidance

• 2026 guidance upgraded: revenue expected to show low single-digit growth, EBITDA AL mid single-digit growth, and adjusted net income around 10% growth.

• Free cash flow for 2026 projected at least HUF 200 billion, excluding spectrum licenses.

• Inflation-based fee adjustment of 4.4% to be implemented from July 1, 2026, for existing contracts.