Magyar Telekom 2026 Q2 Review
- The quarter came in line with expectations. The company posted revenue of HUF 243.3 billion, EBITDA of HUF 108.4 billion and EBITDA AL of HUF 100.9 billion, alongside net profit of HUF 58.0 billion. Revenue matched market consensus, EBITDA fell slightly short of it, while net profit came in above.
- Growth is carried by the Hungarian service business. Hungarian telecommunications service revenue expanded by 2.8%, and did so without any inflation-linked price correction: the growth stems from repricing, a widening customer base and rising ARPU.
- Three factors held revenue back. The systems integration business decreased by 6.6%, and management expects subdued activity for the full year. The strengthening of the forint reduced the North Macedonian segment's revenue as reported in forint by approximately HUF 2 billion; at unchanged exchange rates group revenue would have grown by 1.7%. To this is added the deliberate scaling back of third-party handset exports.
- The decrease in profitability is only apparent. Gross profit rose by 1.2% and the gross margin improved. The jump in indirect costs is caused by the absence of one-off gains recorded in the base period; excluding these, costs increased by barely more than one percent, and the effect of the wage increase moderates further in the second half.
- Guidance reaffirmed, but the trajectory is tight. Earnings per share rose by 2.6%, helped by the lower share count. Management maintained its full-year expectations, yet the half-year performance falls short of the required pace on all three earnings lines; catching up rests on the July price correction and the fading of base effects.