Looking forward to 2026
Magyar Telekom has reported a strong set of results for 2024 on Tuesday as the adjustednet profit came in at HUF 162.6bn. The BoD proposed a POR of 80%, including a DPS of
100 and a SBB program of up to HUF 39.1bn, totalling 142 HUF/sh. More importantly, the
BoD upgraded its dividend policy, allowing a POR of 100% from 2025.
Following MTEL’s conference call, we update our earnings forecast for 2025. We raise our
12-m ex-div TP to HUF 2,029 and our recommendation from Accumulate to Buy, implying
a 24% upside potential. Considering the total shareholder remuneration after 2024 results
and the remaining HUF 1.7bn SBB from last year, it implies a 33% TR upside potential.
New TP reflects the impressive 2025 EBITDAaL and FCF guidance, as well as the improved
outlook for shareholder remuneration. In addition, we eliminate the earlier used 5% DLOM
from our valuation methods given a potential MSCI EM Index inclusion. Magyar Telekom
currently trades at 7.3x P/E and 4.2x EV/EBITDA multiples based on our 2025 estimates.
We conservatively assume a total POR of 80% from 2025, out of which 30% might be
allocated to SBB programs going forward. This supports our DDM-based valuation.
Magyar Telekom is engaged in the providing fixed line and mobile telecommunication services for public and business customers. Co. provides voice and non-voice (SMS, MMS, internet, data and content provision) within mobile services; voice, data, internet and TV services within fixed line services. In addition, Co. sells equipment needed for using fixed line and mobile services (telephones, tablets, notebooks, TV sets etc.).
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.