Magyar Telekom (MTELEKOM) Q4 2024 earnings summary

Executive summary

• Achieved all 2024 financial targets with double-digit growth in revenue, EBITDA AL, net income, and free cash flow, supported by fiber expansion, digital solutions, and operational efficiency.

• Record shareholder remuneration proposed, including a HUF 90.9 billion dividend and up to HUF 39.1 billion share buyback, targeting an 80% payout ratio.

Financial highlights

• Revenue rose 13.9% year-over-year to HUF 967.5 billion, driven by inflation-based fee adjustments and operational growth.

• EBITDA AL increased 29.1% to HUF 333.1 billion; adjusted net income surged 73.7% to HUF 162.6 billion.

• Free cash flow (excluding spectrum) nearly doubled to HUF 165.1 billion.

• EPS for 2024 was HUF 171.76, up 105.1% year-over-year.

• Net debt/EBITDA improved to 0.92 from 1.50 year-over-year.

Outlook and guidance

• 2025 revenue expected to grow 1–3%, EBITDA AL by 12–15%, with adjusted net income around HUF 190 billion and free cash flow ca HUF 180 billion.

• 3.7% inflation-based fee adjustment effective April 2025; continued focus on fiber rollout and portfolio reshaping.

• Elimination of supplementary telecommunication tax from 2025 expected to support profitability.