Magyar Telekom (MTELEKOM) Q2 2025 earnings summary

Executive summary

• Service revenue grew 2% year-over-year, driven by strong demand for data and broadband, while overall Q2 2025 revenue remained stable as service growth offset declines in SI/IT and equipment sales and the deconsolidation of ViDaNet.

• Profitability improved due to disposal of non-core assets, expiry of supplementary telecom tax, and lower bad debt expenses.

• EBITDA AL increased 13.1% year-over-year, supported by gross profit growth and one-off gains from asset sales.

• Adjusted net income grew 27% year-over-year in Q2 2025 and 34.6% in H1 2025, supported by higher EBITDA.

• HUF 130 billion returned to shareholders through dividends and share buybacks, consistent with remuneration policy.

Financial highlights

• Q2 2025 revenue rose 0.3% year-over-year to HUF 241.3 billion, with H1 2025 revenue up 3.9% to HUF 482.9 billion.

• Q2 2025 EBITDA AL: HUF 101.5 billion (+13.1% YoY); H1 2025 EBITDA AL: HUF 199.0 billion (+19.3% YoY).

• Q2 2025 adjusted net income: HUF 55.9 billion (+27% YoY); H1 2025: HUF 110.4 billion (+34.6% YoY).

• Free cash flow in H1 2025: HUF 86.0 billion (+134.4% YoY), supported by higher EBITDA and asset disposals.

• Capex AL for H1 2025 rose 134% year-over-year, with Q2 2025 Capex after lease at HUF 27.7 billion (+4.2% YoY).

Outlook and guidance

• 2025 revenue guidance upgraded to 1–3% growth; H1 2025 revenue up 3.9% year-over-year.

• EBITDA AL guidance raised to approximately 15% growth, expected at the upper end of the previous range.

• Adjusted net income and free cash flow both expected to reach at least HUF 200 billion in 2025.

• Management focuses on network investments and customer growth for continued strong operational performance.