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Magyar Telekom Q2 net income climbs to HUF 13.5 bln

Telco

Magyar Telekom had a second-quarter net income of HUF 13.5 bln, up from HUF 10.5 bln in the base period, as an increase in revenue outpaced the growth of direct costs, an earnings report published after the closing bell on Tuesday shows.

Revenue rose 5.7% to HUF 166.1 bln with mobile revenues climbing by 8.6%, fixed-line revenues rising by 3.7% and IT revenues declining by 2.5%. 

Direct cost of sales increased 4% to HUF 69.7 bln. 

Gross profit was up 7% at HUF 96.5 bln. Indirect costs rose 9.4% to HUF 37.2 bln. EBITDA was up 5.6% at HUF 59.3 bln.

The financial loss of the company moderated to HUF 4 bln, compared to HUF 5.4 bln in the base period. 

In H1 total revenue rose 3.8% annually to HUF 328.4 bln while direct costs increased by 3.5% to HUF 138.8 bln.

Gross profit for the first six months was up 4% at HUF 189.6 bln and net financial losses dropped to HUF 5.6 bln from a HUF 16.4 bln loss in H1 2020.

Net income in H1 was up at HUF 22.4 bln from HUF 8.9 bln.

Free cash flow excluding one-time spectrum license fees amounted to HUF 10.3 bln in H1, representing an increase of HUF 6.9 bln from the base period.
 

    In its public guidance MTel said it expects revenue to grow by around 3pc in 2021 and EBITDA to grow by at least 3pc.
 

    In an outlook for 2021-2024, it put the potential increase in revenue and EBITDA at around 1pc with further upside potential.

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