Magyar Telekom Earnings Climb on Improved Margin

First-quarter net income of Magyar Telekom rose 9% year-on-year to HUF 59.0 billion as margins widened and financial losses narrowed, an earnings report released after the closing bell on Tuesday shows.

Revenue edged down 2% to HUF 238.1 billion. Direct costs dropped 10% to HUF 82.7 billion, lifting gross profit 4% to HUF 155.3 billion. Magyar Telekom booked a HUF 3.8 billion net financial loss in Q1, narrowing from a loss of HUF 5.2 billion in the base period. Earnings per share came to HUF 66.6.

Magyar Telekom upgraded full-year guidance to "mid-single-digit" growth for EBIDTA after leases and put adjusted net income growth "around 10%."

Tibor Rékasi, Magyar Telekom CEO, commented that “we have started 2026 with strong momentum, driven by disciplined execution and sustained demand for our core services. Continued fiber uptake and growing mobile data usage supported solid underlying trends and the quality of our revenues, while our commercial focus enabled stable ARPU development. During the quarter, we also strengthened our infrastructure and capabilities through targeted investments in fiber and data center capacity, and renewed our 2100 MHz spectrum license on favorable terms. While total revenues saw a modest year-on-year decline, our focus on value over volume and cost discipline translated into stronger profitability, with EBITDA AL up 4.0% and adjusted net income increasing by 7.5% year-on-year. Reflecting this strong start to the year and our confidence in continued execution, we are upgrading our full-year 2026 guidance to mid-single-digit growth in EBITDA AL and an around 10% increase in adjusted net income. Projected free cash flow generation is at least HUF 200 billion.”