Magyar Telekom (MTELEKOM) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue declined 1.3% year-over-year to HUF 242.9bn, mainly due to weaker SI/IT and equipment sales, partially offset by service revenue growth and ViDaNet deconsolidation.

• Service revenue grew 1.9% year-over-year, supported by customer base expansion and higher ARPU from increased data demand.

• EBITDA AL increased 13.5% year-over-year, driven by gross profit improvement and expiry of the supplementary telecom tax.

• Net income increased 20% year-over-year to HUF 55.2bn, reflecting higher EBITDA and improved net financial result.

• Free cash flow for 9M 2025 surged 65.8% year-over-year to HUF 179.8bn, aided by EBITDA uplift, working capital improvements, and ViDaNet sale proceeds.

Financial highlights

• Q3 2025 revenue: HUF 242.9bn (-1.3% YoY); 9M 2025 revenue: HUF 725.8bn (+2.1% YoY).

• Q3 2025 EBITDA AL: HUF 100.6bn (+13.5% YoY); 9M 2025 EBITDA AL: HUF 299.6bn (+17.3% YoY).

• Q3 2025 net income: HUF 55.2bn (+20% YoY); 9M 2025 net income: HUF 165.6bn (+29% YoY).

• Free cash flow (9M 2025): HUF 179.8bn (+65.8% YoY).

• Net debt decreased 12.8% to HUF 292.9bn; net debt/EBITDA improved to 0.72.

Outlook and guidance

• 2025 guidance reiterated: revenue growth of 1–3%, EBITDA AL growth of ~15%, and free cash flow of at least HUF 200bn.

• Adjusted net income and free cash flow expected to reach at least HUF 200bn each.

• No inflation-based fee adjustment for consumers in H1 2026; economic and competitive uncertainties in Hungary closely monitored.

• North Macedonia faces potential intensified competition with possible new market entrant.