Magyar Telekom (MTELEKOM) Q2 2026 earnings summary

Executive summary

• Strategic investments expanded gigabit-capable access points to 4.2 million in Hungary and completed 2G migration.

• Revenue grew 0.8% year-over-year in Q2 2026, driven by telecommunication service growth offsetting lower IT sales and FX headwinds.

• Service revenue in Hungary grew 2.8% year-over-year in Q2 2026, supported by upselling and portfolio refresh.

• Gross profit increased 1.2% year-over-year, supported by higher telecom service margins.

• FY 2026 guidance reaffirmed, with continued ESG recognition including FTSE4Good Index and MSCI AA rating.

Financial highlights

• Q2 2026 revenue rose 0.8% year-over-year to HUF 243.3 bn, with mobile service revenue growth offset by lower handset exports and IT sales.

• EBITDA AL decreased 0.7% year-over-year to HUF 100.9 bn, mainly due to the absence of one-off gains from subsidiary and real estate sales.

• Adjusted net income declined 1.5% year-over-year to HUF 55.0 bn, impacted by higher income tax and base effects.

• H1 2026 free cash flow increased 5.2% year-over-year to HUF 90.5 bn, driven by EBITDA uplift and working capital improvements.

• Net debt increased to HUF 361.0 billion (+45.5% vs. Dec 2025), net debt/EBITDA at 0.86.

Outlook and guidance

• 2026 guidance: low single-digit revenue growth, mid single-digit EBITDA AL growth, ~10% adjusted net income growth, FCF (excl. spectrum) at least HUF 200 billion.

• Inflation-based fee adjustment introduced in July expected to support H2 performance.