Magyar Telekom (MTELEKOM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 15.6% year-over-year, driven by inflation-based fee adjustments, higher equipment sales, and increased data usage.

• EBITDA AL increased 30.9% year-over-year in Q2 2024, reflecting strong gross profit and cost mitigation.

• Net income rose significantly, nearly doubling to HUF 43.4 billion in Q2 2024, supported by EBITDA growth and lower financial expenses.

• Free cash flow for H1 2024 was HUF 36.7 billion, up HUF 29.4 billion year-over-year, reflecting strong EBITDA and lower CAPEX.

• Dividend payment of HUF 41.5 billion and share buyback of HUF 22.3 billion completed in Q2 2024.

Financial highlights

• Q2 2024 revenue: HUF 240.6 billion (+15.6% YoY); H1 2024 revenue: HUF 464.8 billion (+15.1% YoY).

• Q2 2024 EBITDA AL: HUF 89.8 billion (+30.9% YoY); H1 2024 EBITDA AL up 39.6% year-over-year.

• Q2 2024 net income: HUF 43.4 billion (+94.8% YoY); H1 2024 net income: HUF 77.0 billion (+135.0% YoY).

• Adjusted net income for Q2 2024: HUF 44.0 billion (+71.5% YoY); H1 2024: HUF 82.1 billion (+117.1% YoY).

• Capex after lease (excluding spectrum): H1 2024 HUF 46.3 billion (-6.6% YoY).

Outlook and guidance

• 2024 revenue growth guidance raised to approximately 10%.

• EBITDA AL growth guidance increased to around 25%.

• Adjusted net income guidance upgraded to about HUF 150 billion.

• Free cash flow guidance (excluding spectrum licenses) raised to about HUF 140 billion.

• Favorable commercial outlook and strong H1 performance underpin the guidance upgrade.