Magyar Telekom shares surge as Q1 earnings beat expectations

Published 14/05/2025, 12:36
Magyar Telekom shares surge as Q1 earnings beat expectations

Investing.com - Magyar Telekom (BET:MTEL) reported strong first quarter results on Wednesday that exceeded analyst estimates, sending shares up 4.02% in early trading on Thursday.

The Hungarian telecommunications company saw revenue climb 7.8% year-over-year to 241.6 billion forints ($673 million), driven by robust demand for mobile data and fixed broadband services.

The company’s adjusted net income jumped to 54.6 billion forints in Q1, up from 38.1 billion forints in the same period last year.

This significant 43% increase was primarily attributed to improvements in underlying profitability and lower indirect costs.

Magyar Telekom’s EBITDA (earnings before interest, taxes, depreciation and amortization) rose 24.4% YoY to 105.2 billion forints, benefiting from gross profit growth and reduced indirect costs.

The elimination of the supplementary telecommunication tax, effective January 1, 2025, contributed to an 8.9 billion forint improvement in the company’s financial performance.

The company expanded its gigabit-capable network with an additional 58,000 new access points during the quarter.

Magyar Telekom also began monetizing its recently upgraded CRM system, which is expected to enhance flexibility and resilience.

Following these strong results, Magyar Telekom reiterated its full-year 2025 guidance and strategic priorities.

The positive market reaction suggests investors are optimistic about the company’s continued growth trajectory and ability to capitalize on increasing demand for data and connectivity services.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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