Magyar Telekom Q1 sales, EBITDA virtually flat

14 May 2020

Hungary’s Magyar Telekom reported that its total revenues reached HUF159.3 billion (USD491.8 million) in the first quarter of 2020, up 0.2% year-on-year, as increases in telecommunication service revenues in both Hungary and North Macedonia (Makedonski Telekom) were offset by a decline in Hungarian System Integration/IT sales. Operating profit was up 1.1% y-o-y in 1Q20 at HUF12.7 billion, while the group posted a HUF1.6 billion quarterly net loss attributable to owners of the parent (compared to net profit of HUF3.1 billion in 1Q19). Quarterly EBITDA was up 0.1% to HUF46.4 billion.

Mobile revenues increased by 3.9% y-o-y to HUF88.1 billion in January-March 2020 as the continued increase in mobile data revenues more than offset the decline in voice revenue witnessed in Hungary and North Macedonia. Fixed network revenues remained stable y-o-y at HUF52.8 billion as higher broadband and TV revenues were offset by the decline in equipment sales and other revenues. Fixed voice retail revenues declined by 5.0% to HUF10.0 billion, reflecting the continued decline in voice usage levels in both countries. Broadband retail revenues increased by 9.4% to HUF14.7 billion, showing growth in both countries of operation.

Magyar Telekom won Hungarian mobile spectrum licences including 5G-suitable frequencies in late March 2020; it confirmed in its latest report that it paid the one-off fee for the licensing – HUF54.2 billion – in April 2020.

Hungary, Magyar Telekom