![](//www.4rfv.com/images/no_image.jpg)
MAGYAR TELEKOM RESULTS FOR THE FOURTH QUARTER OF 2023
Budapest, February 22, 2024 17:35
Magyar Telekom today reported its consolidated financial results for the fourth quarter and full year of 2023, in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU. The financial report contains unaudited figures for each reporting period.
Highlights:
Total revenue increased by 15.1% year-on-year to HUF 229.2 billion in Q4 2023 , primarily driven by continued growth in mobile data and fixed broadband revenue, reflecting the underlying business growth as well as the positive impact of the inflation-based fee adjustment implemented to the Hungarian subscription fees from March 1, 2023. These increases were coupled with year-on-year higher equipment sales and SI/IT revenues at the Hungarian operation that more than offset the lower contribution from North Macedonia due to the weakening of the Macedonian denar vs the Hungarian forint.
Mobile revenue rose by 14.8% year-on-year to HUF 131.7 billion in Q4 2023 , thanks to the increase in service revenues coupled with higher equipment sales.
Fixed line revenue increased by 16.0% year-on-year, to HUF 72.2 billion in Q4 2023. This improvement was primarily driven by increases in fixed broadband and TV revenues that were also coupled with higher equipment sales revenues.
System Integration and IT ( SI/IT') revenue increased by 13.9% to HUF 25.3 billion in Q4 2023, as a result of higher revenue at the Hungarian operation thanks to increased revenue from high value projects.
Direct costs were up by 14.2% year-on-year at HUF 106.7 billion in Q4 2023, driven by higher bad debt expenses and other direct costs.
Interconnect costs were lower by 6.5% year-on-year, at HUF 5.8 billion in Q4 2023, reflecting lower outgoing traffic volumes, especially at the Hungarian operation.
SI/IT service-related costs were up by 16.4% year-on-year at HUF 18.5 billion in Q4 2023, in line with the higher revenue.
Impairment losses and gains on financial assets and contract assets (bad debt expenses) was up by HUF 3.0 billion year-on-year, amounting to HUF 6.9 billion in Q4 2023 reflecting partly the higher revenue base as well as the HUF 3.5 billion additional forward-looking impairment recognized at the Hungarian operation in relation to the outstanding installment sales receivables due to the increased probability of deteriorating recovery rates. This was partly offset by lower bad debt expenses at the North Macedonian operation driven by favorable change in the local impairment rates.
Telecom tax was lower moderately year-on-year, amounting to HUF 6.4 billion in Q4 2023, reflecting the declining mobile voice usage.
Other direct costs were up by 13.5% year-on-year to HUF 69.2 billion in Q4 2023, driven by higher equipment costs and TV content fees.
Gross profit improved by 15.8% year-on-year to HUF 122.5 billion in Q4 2023, thanks primarily to a higher contribution from telecommunication services.
Indirect costs rose by 15.4% year-on-year, to HUF 49.7 billion in Q4 2023, reflecting higher employee-related expenses, energy costs and supplementary telecommunication tax expense at the Hungarian operations.
Employee-related expenses amounted to HUF 22.7 billion in Q4 2023, representing a 17.9% increase year-on-year. This was the combined result of the wage increases implemented at the Hungarian operation and the higher expenses at the North Macedonian operation following the insource of certain maintenance functions.
Supplementary telecommunication tax was recognized in the amount of HUF 7.7 billion in Q4 2023, reflecting the annual revenue development.
Other operating expenses (excluding the utility tax and the supplementary telecommunication tax) rose by 6.5% year-on-year to HUF 21.9 billion in Q4 2023, reflecting higher energy costs and further inflation-driven cost pressures at the Hungarian operation partly mitigated by cost efficiency measures and favorable year-on-year development in the North Macedonian energy costs.
Other operating income increased by 8.4% year-on-year to HUF 2.6 billion in Q4 2023, reflecting accrual reversals as well as earned income of the energy saving certificates from the energy efficiency obligation system in relation to the Company's energy efficiency projects.
EBITDA increased by 16.0% year-on-year to HUF 72.8 billion and EBITDA AL was up by 17.4% year-on-year to HUF 65.4 billion in Q4 2023 driven by the improvement in gross profit that offset higher indirect costs.
Depreciation and amortization ( D&A') expenses were 4.8% higher year-on-year, amounting to HUF 36.0 billion in Q4 2023, reflecting higher software fee and IFRS 16 lease liability related depreciation expenses.
Profit for the period rose by 38.7% year-on-year to HUF 24.3 billion in Q4 2023 driven by the higher EBITDA.
Net financial result deteriorated from a loss of HUF 7.2 billion in Q4 2022 to a loss of HUF 8.1 billion in Q4 2023. Net interest expense decreased driven by a legal case related provision reversal and lower interest related to installment sales transactions. At the same time, other finance expense was higher year-on-year primarily reflecting less favorable results related to derivatives mostly attributable to the different shifts in the relevant yield curves.
Income tax expenses were up by 20.4% year-on-year at HUF 4.5 billion in Q4 2023, reflecting the year-on-year increase in the profit before tax partly mitigated by higher amount of tax credits booked.
Profit attributable to non-controlling interests increased by 66.0% year-on-year to HUF 1.1 billion in Q4 2023 , driven by year-on-year decline of D&A expenses at the North Macedonian subsidiary.
Adjusted net income (profit attributable to owners of the parent) was HUF 25.8 billion in Q4 2023 and amounted to HUF 93.6 bill
More from Magyar Telekom (T Mobile)
04/12/2024
CHANGES IN MAGYAR TELEKOMS TOP MANAGEMENT
Budapest, December 4, 2024 08:10
Daria Dodonova, Chief Financial Officer and Board Member of Magyar Telekom, leav...
13/11/2024
MAGYAR TELEKOM RESULTS FOR THE THIRD QUARTER OF 2024
Budapest, November 13, 2024 17:30
Magyar Telekom today reported its consolidated financial results fo...
07/11/2024
TELEKOM HELLO BIZNISZ IS RENEWED: TUNING UP FOR BUSINESSES, TUNING UP FOR THE CO...
15/08/2024
T- ESPORTS CHAMPIONSHIP: TUNED-UP FIGHTS AND A PRIZE OF 100,000 EUROS AWAIT THE ...
07/08/2024
MAGYAR TELEKOM RESULTS FOR THE SECOND QUARTER OF 2024
Budapest, August 7, 2024 17:35
Magyar Telekom today reported its consolidated financial results for t...
15/05/2024
MAGYAR TELEKOM RESULTS FOR THE FIRST QUARTER OF 2024
Budapest, May 15, 2024 17:35
Magyar Telekom today reported its consolidated financial results for the...
16/04/2024
MAGYAR TELEKOM (THE COMPANY ) HELD ITS ANNUAL GENERAL MEETING ( GENERAL MEETING...
22/02/2024
TIBOR R KASI REAPPOINTED AS CEO OF MAGYAR TELEKOM
Budapest, February 22, 2024 16:45
Magyar Telekoms Board of Directors approved the extension of Tibor R kas...
22/02/2024
MAGYAR TELEKOM ANNOUNCES SHAREHOLDER REMUNERATION PROPOSAL FOR 2023 RESULTS
Budapest, February 22, 2024 17:30
Magyar Telekom (Reuters: MTEL.BU and Bloomberg...
22/02/2024
MAGYAR TELEKOM RESULTS FOR THE FOURTH QUARTER OF 2023
Budapest, February 22, 2024 17:35
Magyar Telekom today reported its consolidated financial results fo...
13/02/2024
AFTER A TEST PERIOD OF ONE AND A HALF YEARS, TELEKOM CLOSES THE 4-DAY WORKING WE...
04/12/2023
This years esport CUP powered by Telekom ended with a gigantic clash of streamer...
08/11/2023
Magyar Telekom results for the third quarter of 2023
Budapest, November 8, 2023 17:35
Magyar Telekom today reported its consolidated financial results for ...
17/10/2023
Latest Research: Albeit Being Afraid Of It, Small Entrepreneurs Would Use AI
Budapest, October 17, 2023 15:00
Most micro and small businesses - although th...
16/10/2023
Legendary experience on the Telekom network - the esport CUP by Telekom is here ...
02/10/2023
Telco company in the second hand device market - refurbished devices from Teleko...
26/09/2023
Scope Rating GmbH Revises Outlook To Positive On Magyar Telekom's BBB+ Issue...
15/09/2023
The Hungarian Government and Magyar Telekom strengthen their cooperation for the...
16/06/2023
For the fifth year in a row, Telekom is number one in online mobile and tablet s...
13/06/2023
You can double the number of followers with a single post! The Kraft Agency, Tel...
24/05/2023
We switched on. You too - Magyar Telekom increases its 5G outdoor population cov...
10/05/2023
Magyar Telekom results for the first quarter of 2023
Budapest, May 10, 2023 17:30
Magyar Telekom today reported its consolidated financial results for the...
04/04/2023
May i sprinkle? Easter sprinkling parfume created with the help of artificial in...
03/04/2023
Several major Hungarian brands join forces to support SME companies
Budapest, April 3, 2023 11:00
The two digit inflation may remain with us for a while, b...
22/02/2023
Magyar Telekom results for the fourth quarter of 2022
Budapest, February 22, 2023 17:35
Magyar Telekom today reported its consolidated financial results f...
22/02/2023
Magyar Telekom announces shareholder remuneration proposal for 2022 results
Budapest, February 22, 2023 17:35
Magyar Telekom (Reuters: MTEL.BU and Bloombe...
08/11/2022
Magyar Telekom results for the third quarter of 2022
Budapest, November 8, 2022 17:30
Magyar Telekom today reported its consolidated financial results for ...
03/11/2022
The roaming service in Slovakia is now available with VoLTE (4G voice) technolog...
25/10/2022
Speaking from the air, but not into the air - Telekom advised small businesses o...
22/08/2022
Change in Magyar Telekom's management
Budapest, August 22, 2022 15:00
Melinda Szab , Chief Commercial Officer, continues her career at Deutsche Telekom...
09/08/2022
Magyar Telekom results for the second quarter and first half of 2022
Budapest, August 9, 2022 17:30
Magyar Telekom today reported its consolidated financia...
07/07/2022
Faster and more payment at festivals on the dedicated Campus Network of Telekom ...
07/07/2022
With new campaign #WhatWeValue Deutsche Telekom supports Gen Z volunteerism acro...
15/06/2022
Magyar Telekom extends contract with Telekom Veszpr m
Budapest, June 15, 2022 14:30
Magyar Telekom has extended its sponsorship contract with the Telekom V...
13/06/2022
Final stage of disconnecting the 3G network - The most affected customers were d...
27/05/2022
The professionals of the future are trained with the support of Magyar Telekom i...
17/05/2022
The professionals of the future are trained with the support of Magyar Telekom
Budapest, May 17, 2022 09:00
Magyar Telekom started cooperating with technic...
11/05/2022
Magyar Telekom results for the first quarter of 2022
Budapest, May 11, 2022 17:30
Magyar Telekom today reported its consolidated financial results for the ...
02/05/2022
From Ukrainian-language customer service to job search assistance: Magyar Teleko...
20/04/2022
Hungarian small businesses overestimate their safety and underestimate the risk ...
21/03/2022
Digital tools for small businesses from Telekom to have enough time to do other ...
03/03/2022
M rta Holl will join Magyar Telekom as Corporate Communications Director
Budapest, March 3, 2022 11:00
M rta Holl has been appointed to lead Magyar Tele...
03/03/2022
Telekom helps
Budapest, March 3, 2022 11:00
Magyar Telekom is following the events in Ukraine with concern and sympathy. In the current situation the comp...
23/02/2022
Magyar Telekom's Board of Directors approves shareholder remuneration policy...
23/02/2022
Magyar Telekom results for the fourth quarter of 2021
Budapest, February 23, 2022 17:30
Magyar Telekom today reported its consolidated financial results fo...
16/02/2022
Record sized gigabit network development at Telekom in 2021
Budapest, February 16, 2022 09:00
Telekom offers gigabit speeds already to more than 3 million ...
03/02/2022
Another international architecture award won by Telekom Headquarters
Budapest, February 3, 2022 13:30
As a project of the TIBA Architect Studio, the joint ...
11/01/2022
Momentum for the start of the year: 6 GB extra mobile net for Telekom SMB custom...