Telekom Reports Record Revenue Surge and Profit Growth for Q2 2024

Magyar Telekom reported a significant surge in revenues and profits for the second quarter of 2024. Net profit after tax rose nearly 89 percent to HUF 44.6B (EUR 112M) compared to the same period last year. This boost is largely attributed to a subst

By: hungarytoday.hu

Aug 08 2024
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Telekom Reports Record Revenue

This boost is largely attributed to a substantial increase in EBITDA and a 15.6 percent rise in revenue, reaching nearly HUF 241B (EUR 606.8M), surpassing analysts’ forecast of almost HUF 235B (EUR 591M). In the first half of 2024, Magyar Telekom’s revenue totaled almost HUF 465B (EUR 1.17B) marking a 15.1 percent increase year-on-year. The half-year net profit surged 124.7 percent to over HUF 79.6B (EUR 200M).

Fact

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) measures a company’s operating performance by focusing on core earnings, excluding non-operational factors. It is crucial for assessing profitability and cash flow, providing a clear view of business performance.

The company expanded its gigabit-capable fixed technology to 3.8 million households and businesses and increased its 5G network’s outdoor coverage to 70 percent of the population.

Mobile revenues grew from HUF 233.6B (EUR 576M) to HUF 271.5B (EUR 683M), fixed revenues from HUF 130.1B (EUR 330M) to HUF 149.4B (EUR 376M), and system integration and IT revenues from HUF 40.1B (EUR 100M) to HUF 43.8B (EUR 110M). Strong demand for mobile data and fixed broadband services, coupled with inflation-linked tariff adjustments, significantly boosted revenues.

Magyar Telekom has revised its annual forecast upwards, expecting revenue to rise by about 10 percent and net profit to reach around HUF 150B (EUR 377M), up from previous estimates. The positive outlook reflects a favorable trading environment.

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