Guidance upgrade after robust Q2 results

Magyar Telekom has doubled its net profit in Q2 2024 compared to the same period
one year earlier. Given the second consecutive strong result, mgmt. elevated the
expectations for FY 2024, guiding HUF 150bn for adjusted net profit and HUF 140bn
free cashflow now.
 Group revenues increased by 15.6% YoY and 7.3% QoQ in Q2/24, thanks to the
unbeatable impact of the inflation-based fee adjustments and stronger revenues from
SI/IT segment. Mobile revenues were up by 15.9% YoY, mainly driven by the fee
increases for the postpaid subscribers as Postpaid ARPU shows a 12.5% QoQ
increase, while the number of both pre-and postpaid SIMs decreased in Q2. In the
Fixed segment broadband and TV customers growth was weaker than in Q1, though
the strong ARPUs contributed to a 14.6% YoY and 5.9% QoQ revenue increase for this
segment as well. Equipment sales were stable, while the SI/IT segment accelerated and
was up by 17.4% YoY thanks to increased investments from large Hungarian
companies.
 Besides the stronger revenue generation, operating costs were kept under control,
hence EBITDA margin improved to 40.4% which is 2.7% higher compared to the
previous quarter, resulting in an EBITDA of HUF 97.2bn, up by 28.5% YoY. EBIT
came in 51% YoY at HUF 61bn and reported net profit amounted to HUF 43.4bn,
almost doubling same period results from last year.