Hungarian quadruple-play operator Magyar Telekom’s consolidated revenues grew by 1.8% year-on-year to HUF167.7 billion (USD539 million) in Q3 2020, driven by higher fixed and mobile services contribution, both supported by growing equipment sales. Gross profit remained broadly stable y-o-y at HUF95.2 billion as the revenue improvement was offset by other direct costs resulting from the hike in equipment sales. Indirect costs improved due to ‘enhanced discipline and further cost reduction efforts’, resulting in a 1.5% increase in EBITDA to HUF54.9 billion. Quarterly CAPEX (excluding spectrum fees) grew by 13.0% to HUF26.5 billion, driven by fibre network development and comprehensive radio network modernisation.
In operational highlights, mobile data usage grew by 40% year-on-year in Q3 2020, supported by particularly strong consumer demand which boosted mobile data revenues by 10.4%. Magyar Telekom also announced that its gigabit capable fixed broadband network now reaches over 2.3 million ‘access points’ (end user premises) in Hungary, up from two million which it declared in May 2020, via a combination of fibre-optic and HFC cable DOCSIS 3.1 networks. Its 3Q20 report added that accelerated fibre-to-the-home (FTTH) rollout enabled enhanced monetisation, as reflected in broadband retail revenue growth of 10.8% y-o-y in the quarter.