"The rating action reflects Magyar Telekom's improving profitability, benefitting from its introduction of inflation-based fee adjustment in early 2023 and from the recently announced memorandum of understanding with the Hungarian government on network roll-outs associated with the upcoming removal of sector-specific taxes in 2024 and 2025," Scope said.
Under the MoU signed earlier in September Magyar Telekom committed to plow HUF 123 billion into network developments in 2024-2027, while the government agreed to scrap the public utility tax for telcos from January 1, 2024, and the windfall profit tax for telcos from January 1, 2025.
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