Magyar Telekom (MTELEKOM) Q3 2024 earnings summary

Executive summary

• Revenue and EBITDA AL grew strongly in Q3 and 9M 2024, driven by inflation-based fee adjustments, operational improvements, and customer base expansion.

• Net income nearly doubled to HUF 44.5 billion in Q3 2024, supported by EBITDA growth and favorable financial expenses.

• Free cash flow more than doubled to HUF 108.5 billion in 9M 2024, reflecting improved profitability and lower CAPEX.

• Confirmed 2024 guidance for revenue, EBITDA AL, adjusted net income, and free cash flow.

• Gross profit rose 15.6% year-over-year, with EBITDA AL up 21.3% due to improved gross profit offsetting higher employee expenses.

Financial highlights

• Q3 2024 revenue up 13.8% year-over-year to HUF 246.1 billion; 9M 2024 revenue up 14.6% to HUF 711.0 billion.

• Q3 2024 EBITDA AL up 21.3% to HUF 88.7 billion; 9M 2024 EBITDA AL up 32.7% to HUF 255.4 billion.

• Q3 2024 net income at HUF 44.5 billion, up 93.9% year-over-year; adjusted net income at HUF 46.0 billion.

• Free cash flow for 9M 2024 at HUF 108.5 billion, up 124.6% year-over-year; net debt/EBITDA improved to 1.11.

• EPS for Q3 2024: HUF 48.98 (+98.5% YoY); 9M 2024: HUF 131.82 (+124.1% YoY).

Outlook and guidance

• 2024 revenue guidance: ~10% growth; EBITDA AL: ~25% growth; adjusted net income: ~HUF 150 billion; FCF: ~HUF 140 billion.

• 9M 2024 results indicate progress toward full-year targets.

• Management expects continued strong operational and financial performance, focusing on network modernization and customer-centric initiatives.