Magyar Telekom Q2 revenues fall 4.1%, but EBITDA climbs 13.4%

8 Aug 2019

Total revenues at Hungarian fixed and mobile group Magyar Telekom declined by 4.1% year-on-year to HUF160.8 billion (USD554 million) in Q2 2019 as a continued positive trend in fixed and mobile service revenues was offset by a sharp decline in System Integration/IT revenues. EBITDA, however, improved by 13.4% y-o-y to HUF56.9 billion (an increase which would have been limited to 4.1% if excluding the effects of IFRS 16 accounting standards adoption). Net profit attributable to owners of the parent company was HUF13.4 billion in the three months ended 30 June 2019, down by 2.6% y-o-y (excluding IFRS 16, profit would have grown 3.0%).

Mobile revenues were up 1.8% y-o-y at HUF84.9 billion in 2Q19, owing to higher mobile data revenues (up 13.5%) in Hungary and at the group’s North Macedonian unit, partially offset by lower voice and equipment sales revenues. Fixed network revenues rose 3.1% to HUF52.7 billion, with higher equipment sales, broadband retail service revenues (up 9.4%) and TV turnover (up 4.8%) among the key drivers, offsetting voice retail revenues (declining by 7.6%). System Integration/IT revenue dropped 30.1% to HUF23.2 billion, affected by large Hungarian public sector (including education) contracts ending.

Hungary, Magyar Telekom