Magyar Telekom EBITDA AL Up by 13.1% Y-on-Y in Q2 2025

Group revenue remained broadly stable year-on-year in Q2 2025, as a continued increase in service revenues driven by sustained demand for data and connectivity was offset by lower System Integration and IT revenues, declines in equipment sales and the impact of ViDaNet fixed-line subsidiary deconsolidation, the Hungarian telecom company announced on the website of the Budapest Stock Exchange.

Gross profit improved by 1.6% YoY in Q2 2025, reflecting higher telecommunication service revenues coupled with lower bad debt and telecom tax expenses.

EBITDA AL increased by 13.1% year-on-year in Q2 2025, thanks to improvements in gross profit, the absence of the supplementary telecommunication tax expense as well as the one-off gain from the sale of ViDaNet.

Adjusted net income rose to HUF 55.9 billion (+27.0% YoY) in Q2 2025, and to HUF 110.4 billion (+34.6% YoY) in H1 2025, driven by the higher EBITDA contribution.

Capex after lease increased by 4.2% year-on-year to HUF 27.7 billion in Q2 2025, reflecting increased network related investments in both countries of operation coupled with temporarily higher TV-content capitalization costs in North Macedonia.

Free cash flow increased by HUF 49.3 billion YoY to HUF 86.0 billion in H1 2025, driven by robust profitability and positive movements in receivables as well as the cash inflow from the sale of ViDaNet.

During Q2 2025, Magyar Telekom completed a dividend payment of HUF 90.9 billion and returned HUF 39.1 billion to shareholders through share buybacks.

Despite the dividend payment and share buybacks, net debt to EBITDA remained at a healthy level of 0.95x as of end-June 2025.

Tibor Rékasi, Magyar Telekom CEO, commented that “during the second quarter of 2025, we made significant progress toward our strategic goal of delivering a gigabit experience across both our fixed and mobile networks to an increasing number of customers. We further expanded the coverage of our optical network and carried out upgrades on our mobile network, boosting capacity and enabling our 5G network to reach 86% population-based coverage. Such investments in our network infrastructure remain essential to capturing growth and meeting the needs of more customers. To showcase the benefits of the upgraded networks, we made both the gigabit fixed network and the 5G network available free of charge to all eligible customers during the summer months. Our consistent operational performance is clearly reflected in our financial results for the quarter. We continued to deliver strong profit uplift with EBITDA AL up by 13.1% year-on-year and adjusted net income up by 27%, allowing us to upgrade our full-year guidance. We now expect EBITDA AL to reach the upper end of our previously guided range for the year. We anticipate adjusted net income and
free cash flow to reach at least HUF 200 billion.”