Magyar Telekom Earnings Rise 7% in 2022

Telco

Net income of Magyar Telekom rose 7% to HUF 63 billion in 2022, parallel with climbing revenue, state news wire MTI writes, citing an earnings report published after the closing bell on Wednesday.

Revenue increased 8% to HUF 746.7 bln. Turnover from the mobile business climbed 11% to HUF 433.2 bln and fixed line revenue rose 6% to HUF 237 bln.

Direct costs rose a little under 7% to HUF 324.2 bln, lifting gross profit 9% to HUF 422.5 bln.

MTel booked a HUF 24.8 bln financial loss for the year, well over the HUF 13.7 bln loss in the base period.

"Despite the increasingly turbulent external environment, we have maintained our strong commercial momentum with increased demand for both mobile data and gigabit broadband in 2022," CEO Tibor Rékasi said.

He added that Ebitda after leases rose 2.4%, in spite of inflationary pressure on costs and a windfall profit tax on the telecommunications sector.

MTel said its board will propose payment of a HUF 29.46 bln dividend on 2022 earnings, equivalent to HUF 30.6 per share. The board also envisages a share buyback up to HUF 14.6 bln. 

Looking ahead, Rékasi said MTel expects continued pressure on profitability from "the challenging economic environment, particularly from energy cost pressures and increasing vendor costs".

In guidance in the report, MTel put 2023 revenue growth at 5-10% and projects "moderate growth" for adjusted net income.

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