Higher Revenue, Improved Margins Lift Magyar Telekom Earnings

Analysis

First-quarter net income of Magyar Telekom rose to HUF 33.7 billion from HUF 10.5 bln in the base period, climbing on higher revenue and improved margins, state news wire MTI writes, citing an earnings report released after the closing bell on Wednesday.

Revenue increased 15% to HUF 224.2 bln. Direct costs rose 9% to HUF 88.8 bln.

MTel said the revenue increase was supported by continued growth in mobile data and fixed broadband service uptake and the positive effects of inflation-based fee adjustments in Hungary.

Indirect costs fell 9pc on lower energy costs as well as the positive impact of the elimination of the utility tax which together offset increases in payroll costs and the supplementary telecommunications tax, it added.

CAPEX after leases and excluding spectrum licenses fell 16% to HUF 19.7 bln.

MTel affirmed its guidance for 2024 revenue growth of 5-10% and a 20-25% increase of EBTIDA after leases. It raised guidance for adjusted net income to around HUF 140 bln from about HUF 130 bln.

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