Magyar Telekom Telecommunications PlcBET: MTELEKOM

Magyar Telekom Távközlesi Nyilvánosan Müködö Reszvenytársaság financial results for the first quarter of 2026

· Issued by Magyar Telekom Telecommunications Plc


Rékasi Tibor

2026-05-12 06:39:54 +0200

André Lenz

2026-05-12 07:44:25 +0200



MAGYAR TELEKOM QUARTERLY FINANCIAL REPORT

ANALYSIS OF THE FINANCIAL STATEMENTS FOR THE FIRST QUARTER ENDED MARCH 31, 2026

Budapest - May 12, 2026 - Magyar Telekom (Reuters: MTEL.BU and Bloomberg: MTELEKOM HB, hereinafter: Company), the leading Hungarian telecommunications service provider, today reported its Consolidated financial results for the first quarter of 2026, in accordance with IFRS Accounting Standards as endorsed by the EU (hereinafter: quarterly financial report). The quarterly financial report contains unaudited figures for each reporting period.

TABLE OF CONTENTS

  1. HIGHLIGHTS 3

  2. MANAGEMENT REPORT 5

    1. Consolidated IFRS Group Results 5

      1. Group Profit and Loss 5

      2. Group Cash Flows 7

      3. Consolidated Statements of Financial Position 8

      4. Related party transactions 8

      5. Contingencies and commitments 8

      6. Material events 9

    2. Segment reports 9

      1. MT-Hungary 10

      2. North Macedonia 11

  3. APPENDIX 13

    1. Basis of preparation and initial application, interpretations and amendments of IFRS Accounting Standards 13

    2. Macroeconomic environment and critical accounting estimates 14

    3. Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income - quarterly year-on-year comparison 15

    4. Revenue breakdown - quarterly year-on-year comparison 16

    5. Operating expenses breakdown - quarterly year-on-year comparison 16

    6. Interim Consolidated Statement of Financial Position - Assets 17

    7. Interim Consolidated Statement of Financial Position - Liabilities and Equity 18

    8. Interim Consolidated Statement of Cash Flows 19

    9. Net debt reconciliation to changes in Statement of Cash Flows 20

    10. Interim Consolidated Statement of Changes in Equity 21

    11. Exchange rate information 22

    12. Segment information 22

    13. Fair value of financial instruments - financial assets 23

    14. Fair value of financial instruments - financial liabilities 23

    15. EBITDA reconciliation 24

    16. Adjusted profit attributable to owners of the parent reconciliation 24

    17. Capex from Interim Consolidated Statement of Cash Flows 24

    18. Capex from Interim Consolidated Statement of Financial Position 25

  4. DECLARATION 26

Company name:

Magyar Telekom Plc.

Company address:

E-mail address:

H-1097 Budapest Könyves Kálmán krt. 36.

investor.relations@telekom.hu

IR contacts:

Position:

Telephone:

E-mail address:

Diána Párkányi-Várkonyi

Capital Market Relations Hub Lead

+36-1-481-7676

varkonyi.diana.annamaria@telekom.hu

Rita Walfisch

Investor Relations manager

+36-1-457-6084

walfisch.rita@telekom.hu

Gabriella Pászti

Investor Relations manager

+36-1-458-0332

paszti.gabriella@telekom.hu

  1. ‌HIGHLIGHTS

    (HUF millions, except ratios)

    Q1 2025

    Q1 2026

    Change

    (%)

    Revenue

    241,632

    238,056

    (1.5%)

    Operating profit

    69,916

    74,304

    6.3%

    Profit attributable to:

    Owners of the parent

    54,164

    58,976

    8.9%

    Non-controlling interests

    1,503

    1,468

    (2.3%)

    55,667

    60,444

    8.6%

    Adjusted profit attributable to owners of the parent

    54,572

    58,661

    7.5%

    Gross profit

    150,010

    155,310

    3.5%

    EBITDA

    105,226

    109,215

    3.8%

    EBITDA AL

    97,488

    101,366

    4.0%

    Free cash flow

    28,493

    35,554

    24.8%

    Free cash flow excl. spectrum licenses

    28,493

    35,554

    24.8%

    Capex after lease

    21,495

    40,436

    88.1%

    Capex after lease excl. spectrum licenses

    21,495

    25,348

    17.9%

    Number of employees (closing full equivalent)

    6,645

    6,565

    (1.2%)

    Dec 31, 2025

    Mar 31, 2026

    Change

    (%)

    Net debt

    (8.6%)

    248,112

    226,721

    Net debt / EBITDA

    0.59

    0.54

    n.a.

    • Continued favorable trends in ARPU supported positive service revenue performance throughout Q1 2026.
    • Total revenue declined by 1.5% YoY, primarily driven by lower IT sales and the ongoing downscaling of handset export activities.
    • Gross profit increased by 3.5% YoY, reflecting growth in telecommunication services and improved margin contribution from IT, despite lower sales volumes.
    • EBITDA AL rose by 4.0% YoY in Q1 2026, resulting in a 7.5% YoY increase in adjusted net income.
    • Capex after leases (excluding spectrum) increased by 17.9% to HUF 25.3 billion, reflecting accelerated investment in fixed and mobile networks, as well as expansion of data center capacity in Hungary.
    • Spectrum capex amounted to HUF 15.1 billion, reflecting the recent renewal of the Company's spectrum usage rights for 2x10MHz blocks in the 2100 MHz frequency band.
    • Free cash flow rose to HUF 35.6 billion, primarily driven by improved profitability and favorable impact of the timing of capex-related creditor payments.
    Tibor Rékasi, Magyar Telekom CEO, commented:

    "We have started 2026 with strong momentum, driven by disciplined execution and sustained demand for our core services. Continued fiber uptake and growing mobile data usage supported solid underlying trends and the quality of our revenues, while our commercial focus enabled stable ARPU development. During the quarter, we also strengthened our infrastructure and capabilities through targeted investments in fiber and data centre capacity, and renewed our 2100 MHz spectrum license on favourable terms.

    While total revenues saw a modest year-on-year decline, our focus on value over volume and cost discipline translated into stronger profitability, with EBITDA AL up 4.0% and adjusted net income increasing by 7.5% year-on-year. Reflecting this strong start to the year and our confidence in continued execution, we are upgrading our full-year 2026 guidance to mid-single-digit growth in EBITDA AL and an around 10% increase in adjusted net income. Projected free cash flow generation is at least HUF 200 billion."

    Guidance:

    2025 Actual

    Updated guidance for 2026

    Revenue

    HUF 983.9 billion

    low-single-digit growth

    EBITDA AL

    HUF 386.8 billion

    mid-single-digit growth

    Adjusted net income

    HUF 207.4 billion

    ca. 10%

    FCF1

    HUF 220.9 billion

    at least HUF 200 billion

    1 Excluding spectrum licenses

  2. ‌MANAGEMENT REPORT

    1. ‌Consolidated IFRS Group Results
      1. ‌Group Profit and Loss

        (HUF millions)

        Q1 2025

        Q1 2026

        Change

        Change (%)

        Mobile revenue

        140,553

        140,459

        (94)

        (0.1%)

        Fixed line revenue

        78,073

        78,273

        200

        0.3%

        SI/IT revenue

        23,006

        19,324

        (3,682)

        (16.0%)

        Revenue

        241,632

        238,056

        (3,576)

        (1.5%)

        Direct costs

        (91,622)

        (82,746)

        8,876

        9.7%

        Gross profit

        150,010

        155,310

        5,300

        3.5%

        Indirect costs

        (44,784)

        (46,095)

        (1,311)

        (2.9%)

        EBITDA

        105,226

        109,215

        3,989

        3.8%

        Depreciation and amortization

        (35,310)

        (34,911)

        399

        1.1%

        Operating profit

        69,916

        74,304

        4,388

        6.3%

        Net financial result

        (5,169)

        (3,812)

        1,357

        26.3%

        Share of associates' and joint ventures' results

        -

        -

        -

        -

        Profit before income tax

        64,747

        70,492

        5,745

        8.9%

        Income tax

        (9,080)

        (10,048)

        (968)

        (10.7%)

        Profit for the period

        55,667

        60,444

        4,777

        8.6%

        Profit attributable to non-controlling interests

        1,503

        1,468

        (35)

        (2.3%)

        Profit attributable to owners of the parent

        54,164

        58,976

        4,812

        8.9%

        Total revenue declined by 1.5% year-on-year, amounting to HUF 238.1 billion in Q1 2026, as the continued growth in telecommunication service revenue driven by further uptake of mobile data and fixed broadband services was offset by the YoY decline in SI/IT and equipment revenues.
        • Mobile revenue was broadly unchanged year-on-year, amounting to HUF 140.5 billion in Q1 2026, reflecting continued growth in mobile data revenue counterbalanced by the lower mobile equipment sales.
          • Voice retail revenue rose moderately year-on-year to HUF 35.3 billion in Q1 2026, driven by the increase recorded in the Hungarian operation as a result of the repricing in the new portfolio structure.
          • Voice wholesale revenue declined by 5.9% year-on-year to HUF 1.8 billion in Q1 2026, due to lower incoming traffic volumes at the North Macedonian operation.
          • Data revenue rose by 7.7% year-on-year to HUF 64.4 billion in Q1 2026, driven by the continued growth in usage levels coupled with a one-off impact.
          • SMS revenue was 12.4% lower year-on-year, amounting to HUF 6.5 billion in Q1 2026, due to lower use of the service among the residential customer base at the Hungarian operation.
          • Mobile equipment revenue was down 11.9% year-on-year, amounting to HUF 27.8 billion in Q1 2026. Decline was driven by the impact of the downscaling of the third-party export sales, which was partially compensated by the increase in the volume of sold handsets in both operations.
          • Other mobile revenue decreased by 4.9% year-on-year to HUF 4.6 billion in Q1 2026, driven by lower interest income

            in relation to earlier periods' equipment sale on installment.

        • Fixed line revenue increased moderately year-on-year, to HUF 78.3 billion in Q1 2026 as increases in fixed broadband and equipment revenues offset the decline in voice retail and data revenues.
          • Voice retail revenue decreased by 9.3% year-on-year to HUF 7.9 billion in Q1 2026, driven mostly by the erosion in the customer base and lower usage level in Hungary.
          • Broadband retail revenue increased by 3.7% year-on-year to HUF 31.0 billion in Q1 2026, as the revenue growth from the continued expansion of the customer base coupled with further increases in ARPU levels, at both operations, outweighed the negative impact stemming from the deconsolidation of ViDaNet.
          • TV revenue was moderately lower year-on-year, amounting to HUF 19.8 billion in Q1 2026, reflecting the negative impact from the deconsolidation of ViDaNet which was mostly offset by the underlying growth witnessed in both countries.
          • Fixed equipment revenue was up by 20.1% year-on-year, amounting to HUF 6.4 billion in Q1 2026, driven by higher sales volumes as a result of more favorable offers at the Hungarian operation.
          • Data, wholesale and other fixed line revenue declined by 7.1% year-on-year to HUF 13.2 billion in Q1 2026, driven by lower wholesale data revenues.
        • System Integration and IT revenue was lower by 16.0% year-on-year, amounting to HUF 19.3 billion in Q1 2026. The decline reflects different in-year project distribution dynamic and the absence of major projects which were present in the base period in Hungary. These combined offset the improvement in the North Macedonia SI/IT revenue. Direct costs were lower by 9.7% year-on-year, at HUF 82.7 billion in Q1 2026, primarily driven by the reduction in SI/IT sales related and equipment costs.
        • Interconnect costs were lower by 10.4% year-on-year, amounting to HUF 4.2 billion in Q1 2026, reflecting the lower traffic volumes in both operations.
        • SI/IT service-related costs were lower by 25.0% YoY, amounting to HUF 12.8 billion in Q1 2026, in line with the year-on-year lower project volumes.
        • Impairment losses and gains on financial assets and contract assets (bad debt expenses) improved by 21.0% YoY, to HUF 2.4 billion in Q1 2026, as a result of more favorable aging of receivables which offset increases stemming from higher installment sales.
        • Telecom tax declined by 4.2% year-on-year, amounting to HUF 5.8 billion in Q1 2026, primarily due to the lower mobile voice traffic generated by business customers.
        • Other direct costs were lower by 5.3% year-on-year, amounting to HUF 57.5 billion in Q1 2026, driven by the lower equipment costs in line with lower related sales. Gross profit rose by 3.5% year-on-year, to HUF 155.3 billion in Q1 2026, thanks to higher gross profit from telecommunication services as well as the increase in the IT service contribution, despite its lower revenue base. Indirect costs were up by 2.9% YoY, at HUF 46.1 billion in Q1 2026, stemming from increase in employee related expenses.
        • Employee-related expenses were higher by 4.6% year-on-year, amounting to HUF 26.1 billion in Q1 2026, as a result of the wage increase implemented in March 2025 in the Hungarian operation.
        • Other operating expenses remained broadly unchanged YoY, amounting to HUF 20.8 billion in Q1 2026, as savings in energy costs compensated for the increases related to subcontractor services.
        • Other operating income amounted to HUF 0.8 billion in Q1 2026. EBITDA increased by 3.8% year-on-year to HUF 109.2 billion in Q1 2026, thanks to improvements in gross profit; EBITDA AL was up by 4.0% year-on-year to HUF 101.4 billion in Q1 2026. Depreciation and amortization ('D&A') expenses were moderately down year-on-year, at HUF 34.9 billion in Q1 2026. Profit for the period rose by 8.6% year-on-year to HUF 60.4 billion in Q1 2026, reflecting the combined improvement in operating profit and financial results.
          • Net financial result improved from a loss of HUF 5.2 billion in Q1 2025 to a loss of HUF 3.8 billion in Q1 2026. Year-on-higher interest income was primarily attributable to higher interest received related to the liquidity balances whilst improvement in other finance expenses was driven by lower unrealized FX losses vs Q1 2025.
            • Income tax expenses were up by 10.7% year-on-year at HUF 10.0 billion in Q1 2026, driven by the year-on-year higher profit level.
          Profit attributable to non-controlling interests remained broadly unchanged YoY, amounting to HUF 1.5 billion in Q1 2026, as improvement in profitability at the North Macedonian operation was counterbalanced by the YoY weakening of the Macedonian denar against the forint. Adjusted net income (adjusted profit attributable to owners of the parent) was up at HUF 58.7 billion in Q1 2026.
      2. ‌Group Cash Flows

        HUF millions

        1-3 months 2025

        1-3 months 2026

        Change

        Net cash generated from operating activities

        74,572

        74,884

        312

        Net cash used in investing activities

        (40,973)

        (34,244)

        6,729

        Less: (Payments for) / Proceeds from other financial assets

        2,977

        905

        (2,072)

        Investing cash flow excluding Payments for / Proceeds

        from other financial assets - net

        (37,996)

        (33,339)

        4,657

        Repayment of lease and other financial liabilities

        (8,083)

        (5,991)

        2,092

        Free cash flow

        28,493

        35,554

        7,061

        (Payments for) / Proceeds from other financial assets - net

        (2,977)

        (905)

        2,072

        Proceeds from / (Repayment of) loans and other borrowings - net

        (29,405)

        (35,050)

        (5,645)

        Dividends paid to Owners of the parent and Non-controlling interests

        (7)

        (2)

        5

        Treasury share purchase

        (1,657)

        -

        1,657

        Exchange differences on cash and cash equivalents

        (295)

        (30)

        265

        Change in cash and cash equivalents

        (5,848)

        (433)

        5,415

        Free cash flow (FCF) amounted to HUF 35.6 billion cash inflow in Q1 2026 (Q1 2025: HUF 28.5 billion cash inflow) mainly due to the reasons described below.

        Operating cash flow

        Net cash generated from operating activities slightly improved to a cash inflow of HUF 74.9 billion in Q1 2026, compared to cash inflow of HUF 74.6 billion in Q1 2025, attributable to the reasons outlined as follows:

        • HUF 4.0 billion positive impact due to higher EBITDA in Q1 2026.

        • HUF 8.2 billion negative change in active working capital, mainly as a result of:

          • higher increase in handset inventory balances in Hungary in Q1 2026 compared to Q1 2025 (negative impact: ca. HUF 5.3 billion) primarily due to precautionary inventory buildup to mitigate potential limited availability of memory cards,

          • different project seasonality led to unfavorable changes in SI/IT trade receivables (negative impact: ca. HUF 3.6 billion) in Q1 2026 compared to Q1 2025,

          • lower level of decline in net portfolio of installment receivables in Q1 2026 compared to Q1 2025 (negative impact ca. HUF 2.9 billion) as a result of increase in domestic handset sales,

          • favorable change in telecommunication customer related trade receivables in Hungary in Q1 2026 compared to Q1 2025 (positive impact: ca. HUF 5.2 billion) thanks to improvement in the aging.

        • HUF 1.1 billion positive change in provisions, mainly reflecting lower employee-related provision payouts in Q1 2026 compared to Q1 2025.

        • HUF 3.6 billion positive change in passive working capital, primarily driven by:

          • favorable change in liabilities to employees (positive impact: ca. HUF 3.9 billion) driven by different payment dynamics of monthly wage transfer in Q1 2026 compared to Q1 2025,

          • favorable changes in contract liabilities aggregate balances in Q1 2026 compared to Q1 2025 (positive impact: ca. HUF 2.0 billion) mainly driven by the seasonal impact of projects,

          • increase in the balances of handset creditors in Hungary (positive impact: ca. HUF 1.6 billion) due to higher inventory balances in relation with measures to avoid potential supply disruption Q1 2026 compared to Q1 2025,

          • decrease in the balances of SI/IT creditors in Hungary (negative impact: ca. HUF 3.1 billion) due to seasonality.

        • HUF 1.8 billion increase in income taxes paid in Q1 2026 compared to Q1 2025, mainly reflecting higher local business tax and higher corporate income tax payment due to improving profit figures.

          Investing cash flow excluding payments for / proceeds from other financial assets - net

          Net cash used in investing activities amounted to HUF 33.3 billion in Q1 2026, compared to HUF 38.0 billion in Q1 2025.
        • Payment for property plant and equipment and intangible assets decreased by HUF 6.9 billion YoY mainly driven by the combined effect of higher investments in fiber rollout and lower outpayments to Capex creditors in Hungary.
        • Payments for subsidiaries and business units increased by HUF 2.0 billion YoY reflecting acquisition of telecommunications networks and their associated customer contracts in Q1 2026.

          Repayment of lease and other financial liabilities

          Repayment of lease and other financial liabilities improved to HUF 6.0 billion in Q1 2026 from HUF 8.1 billion in Q1 2025, primarily driven by different dynamics of lease payments. Cash and cash equivalents improved by HUF 5.4 billion in Q1 2026 compared to Q1 2025. The improvement in FCF of HUF 7.1 billion YoY was counterbalanced mainly by the followings:
        • Proceeds from loans and other borrowings decreased by HUF 6.8 billion due to the absence of inhouse DT Group funds utilization in Q1 2026 compared to Q1 2025.
        • Repayments of loans and other borrowings improved by HUF 1.1 billion due to lower level of repayments of inhouse DT Group funds in Q1 2026 compared to Q1 2025.

        • Different timing of Treasury share purchase resulted in HUF 1.7 billion lower cash outflow in Q1 2026 vs. Q1 2025.

          The financial and operating statistics are available on the following website: http://www.telekom.hu/about_us/investor_relations/financial

      3. ‌Consolidated Statements of Financial Position

        The most significant changes in the balances of the Consolidated Statements of Financial Position from December 31, 2025 to March 31, 2026 (see Appendix 3.6 and 3.7) can be observed in the following lines:

        • Other financial assets (current and non-current combined)

        • Other intangible assets

        • Trade payables

        • Other financial liabilities (current and non-current combined)

          Other financial assets (current and non-current combined) increased by HUF 36.5 billion from December 31, 2025 to March 31, 2026 mainly as a result of HUF 35.0 billion increase in cash pool receivables. Other intangible assets increased by HUF 10.5 billion from December 31, 2025 to March 31, 2026, mainly reflecting the renewal of the radio spectrum usage right of Magyar Telekom's 2*10 MHz frequency blocks in the 2100 MHz frequency band in March 2026. Trade payables decreased by HUF 32.7 billion from December 31, 2025 to March 31, 2026, reflecting a decrease in outstanding balances to handset, SI/IT, Capex and OPEX suppliers. Other financial liabilities (current and non-current combined) increased by HUF 13.6 billion from December 31, 2025 to March 31, 2026, mainly due to the recognition of discounted one-time fee and future band fee of renewed radio spectrum usage right.

          There has not been any other material change in the items of the Consolidated Statement of Financial Position in the period from December 31, 2025 to March 31, 2026. The less significant changes in balances of the Consolidated Statements of Financial Position are largely explained by the items of the Consolidated Statement of Cash Flows for 2026 and the related explanations provided above in section 2.1.2 Group Cash Flows. The changes in Equity are disclosed in the Equity movement table in section 3.10 Consolidated Statements of Changes in Equity.

      4. ‌Related party transactions

        The significant changes in the volume of related party transactions have been disclosed in sections 2.1.2 Group Cash Flows and 2.1.3 Consolidated Statement of Financial Position. There have not been any other significant changes in related party transactions since the most recent annual financial report.

      5. ‌Contingencies and commitments Contingent assets

        A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence of uncertain future events not within the control of the Group. These assets are not recognized in the statement of financial position. The Group has no contingencies where the inflow of economic benefits would be probable and material.

        Contingent liabilities

        No provision has been recognized for these cases as management estimates that it is unlikely that these claims originating from past events would result in any material economic outflows from the Group, or the amount of the obligation cannot be measured with sufficient reliability. The Group has no contingencies where the outflow of economic benefits would be probable and material.

        Guarantees

        Magyar Telekom is also exposed to risks that arise from the possible drawdown of guarantees that in aggregation amounted to a nominal amount of HUF 15.3 billion as at December 31, 2025. The guarantees were issued as collateral to secure the fulfillment of the Group's certain contractual or tender-related obligations.

        The Group has been doing its best to deliver on its contractual obligations and expects to continue to do so in the future. Even so disputes may emerge from time to time with our partners and sometimes these can result in the drawdown of the guarantees. These utilizations of the guarantees are not related and have no significant effect on the solvency of the Group.

        Commitments

        There has been no material change in the nature and amount of our commitments in 2026.

      6. ‌Material events

        Magyar Telekom started preparation for the implementation of the inflation-based fee adjustment. In accordance with its earlier communications and practices, as of July 1, 2026, the Company will implement a fee adjustment amounting to 4.4%, in line with the 2025 average consumer price index published by the Hungarian Statistical Office. Customer contracts for tariff plans offered from March 12, 2026, are not affected by the fee adjustment, and prices of these offers will remain also unchanged from July 1, 2026.

        For any material event that occurred between the end of the quarter (March 31, 2026) and the date of publishing this quarterly financial report, please see our Investor Relations website:

        http://www.telekom.hu/about_us/investor_relations/investor_news

    2. ‌Segment reports

      From 2020 the Chief Executive Officer (CEO) and the other Chief Officers together (Chief Officers) fulfill the chief operating decision maker (CODM) function in the Group. The Group's segments are reported in a manner consistent with the internal reporting provided to the CODMs, the key management of Magyar Telekom Plc. The Chief Officers assess the performance of the Group and make their decisions. Magyar Telekom's operating segments are: MT-Hungary and North Macedonia.

      The MT-Hungary segment operates in Hungary, providing mobile and fixed line telecommunications, TV distribution, information communication and system integration services to millions of residential and business customers under the Telekom brand. Residential, Small and Medium sized business as well as business customers (corporate and public sector customers) are now served by the unified Telekom brand. The MT-Hungary segment is also responsible for the wholesale of mobile and fixed line services within Hungary, and performs strategic and cross-divisional management, as well as support functions on behalf of the Group, including Procurement, Treasury, Real Estate, Accounting, Tax, Legal and Internal Audit. This segment is also responsible for the Group's points of presence in Bulgaria and Romania, where it primarily provides wholesale services to local companies and operators.

      The North Macedonia segment is responsible for the Group's full-scale mobile and fixed line telecommunications operations in North Macedonia.

      The following tables present financial information related to these reportable segments. Such information is regularly provided to the Company's Management and reconciled with the corresponding Group numbers. This information includes several key indicators of profitability that are considered for the purposes of assessing performance and allocating resources. It is the Management's belief that Revenue, EBITDA, EBITDA AL and Capex, Capex AL are the most appropriate indicators for monitoring each segment's performance and are most consistent with how the Group's results are reported in the statutory financial statements.

      1. ‌MT-Hungary

        HUF millions

        Q1 2025

        Q1 2026

        Change

        Change (%)

        Voice

        33,133

        33,606

        473

        1.4%

        Non-voice

        62,051

        65,538

        3,487

        5.6%

        Equipment

        28,391

        24,556

        (3,835)

        (13.5%)

        Other mobile revenue

        4,212

        3,987

        (225)

        (5.3%)

        Mobile revenue

        127,787

        127,687

        (100)

        (0.1%)

        Voice retail

        7,425

        6,701

        (724)

        (9.8%)

        Broadband retail

        27,987

        29,034

        1,047

        3.7%

        TV

        18,500

        18,316

        (184)

        (1.0%)

        Equipment

        5,299

        6,366

        1,067

        20.1%

        Other

        12,051

        11,452

        (599)

        (5.0%)

        Fixed line revenue

        71,262

        71,869

        607

        0.9%

        SI/IT revenue

        22,915

        19,027

        (3,888)

        (17.0%)

        Revenue

        221,964

        218,583

        (3,381)

        (1.5%)

        Direct costs

        (85,639)

        (76,549)

        9,090

        10.6%

        Gross profit

        136,325

        142,034

        5,709

        4.2%

        Indirect costs

        (39,247)

        (40,911)

        (1,664)

        (4.2%)

        EBITDA

        97,078

        101,123

        4,045

        4.2%

        EBITDA AL

        89,643

        93,592

        3,949

        4.4%

        Segment Capex AL excl. spectrum licenses

        18,859

        22,979

        4,120

        21.8%

        Spectrum licenses

        -

        15,088

        15,088

        -

        Operational statistics - access numbers

        March 31

        2025

        March 31

        2026

        Change

        (%)

        Number of SIM cards Postpaid share in total Total fixed voice access

        Total retail fixed broadband customers

        6,464,351 6,583,406

        58.4% 57.3%

        1,177,762 1,104,240

        1,666,238 1,678,014

        1.8%

        n.a. (6.2%)

        0.7%

        (0.6%)

        Total TV customers 1,417,912 1,409,327

        Operational statistics - ARPU (HUF)

        Q1 2025

        Q1 2026

        Change

        (%)

        Blended mobile ARPU

        4,912

        5,014

        2.1%

        Postpaid ARPU

        7,840

        8,152

        4.0%

        Prepaid ARPU

        1,401

        1,497

        6.8%

        M2M ARPU

        243

        254

        4.5%

        Blended fixed voice ARPU

        2,082

        2,010

        (3.5%)

        Blended fixed broadband ARPU

        5,566

        5,733

        3.0%

        Blended TV ARPU

        4,324

        4,346

        0.5%

        Total revenue for the MT-Hungary segment was down by 1.5% year-on-year at HUF 218.6 billion in Q1 2026, as the continued increases in mobile data and fixed broadband revenues were offset by the YoY lower equipment sales and SI/IT revenue.
        • Mobile revenue was broadly unchanged year-on-year in Q1 2026, resulting from the combined impact of increasing service revenues and the decline in equipment sales. Service revenue increase was primarily driven by the continued increase in mobile data revenues. At the same time, the new portfolio structure introduced in April 2025, resulted in a revenue shift from SMS towards voice, with now SMS being an add-on element whilst previously it was built in as a bundle to the voice packages. Decline in equipment sales YoY was driven by the significant reduction in third-party export sales, which outweighed the positive impacts from the increases in the volume of customer sale transactions.
        • Fixed line revenue was up moderately year-on-year in Q1 2026, with improvement in broadband revenues and higher equipment sales offsetting the decline in voice and TV revenues, both including the deconsolidation impact of ViDaNet. Broadband revenue growth continued to be driven by the further uptake of the fiber broadband service parallel to the expansion of the network reach. At the same time, voice revenue decline remained to be the combined result of the erosion in the subscriber base and declining usage levels, whilst YoY lower TV revenue reflects the deconsolidation impact of ViDaNet.
        • SI/IT revenue was down by 17.0% year-on-year in Q1 2026, reflecting different in-year project distribution dynamic and the absence of major projects which were present in the base period. Gross profit was up by 4.2% year-on-year in Q1 2026, thanks to the increase in telecommunication as well as IT service margins. EBITDA increased by 4.2% year-on-year and EBITDA AL was up by 4.4% year-on-year in Q1 2026, driven by the higher gross profit partly mitigated by increase in employee related expenses. Capex AL excluding spectrum licenses was higher by 21.8% year-on-year in Q1 2026, amounting to HUF 23.0 billion, due to higher investments towards the fixed and mobile networks as well as data center capacity expansions. Outlook: The global economic outlook remains uncertain, and the Hungarian economic, business, and competitive environment continues to evolve. Magyar Telekom actively monitors these trends and adapts its strategy and operations accordingly.
      2. ‌North Macedonia

        HUF millions

        Q1 2025

        Q1 2026

        Change

        Change (%)

        Voice

        3,758

        3,489

        (269)

        (7.2%)

        Non-voice

        5,196

        5,401

        205

        3.9%

        Equipment

        3,148

        3,233

        85

        2.7%

        Other mobile revenue

        665

        650

        (15)

        (2.3%)

        Mobile revenue

        12,767

        12,773

        6

        0.0%

        Voice retail

        1,316

        1,231

        (85)

        (6.5%)

        Broadband retail

        1,900

        1,954

        54

        2.8%

        TV

        1,448

        1,484

        36

        2.5%

        Equipment

        20

        20

        0

        0.0%

        Other

        1,703

        1,583

        (120)

        (7.0%)

        Fixed line revenue

        6,387

        6,272

        (115)

        (1.8%)

        SI/IT revenue

        267

        297

        30

        11.2%

        Revenue

        19,421

        19,342

        (79)

        (0.4%)

        Direct costs

        (5,984)

        (6,231)

        (247)

        (4.1%)

        Gross profit

        13,437

        13,111

        (326)

        (2.4%)

        Indirect costs

        (5,054)

        (4,999)

        55

        1.1%

        EBITDA

        8,383

        8,112

        (271)

        (3.2%)

        EBITDA AL

        8,080

        7,794

        (286)

        (3.5%)

        Segment Capex AL excl. spectrum licenses

        2,636

        2,369

        (267)

        (10.1%)

        Spectrum licenses

        -

        -

        -

        -

        Operational statistics - access numbers

        March 31

        2025

        March 31

        2026

        Change

        (%)

        Number of mobile SIMs Postpaid share in total Total fixed voice access

        Total fixed retail broadband customers

        1,259,804 1,283,724

        48.2% 48.7%

        233,612 238,959

        218,752 226,454

        1.9%

        n.a. 2.3%

        3.5%

        6.1%

        Total TV customers 161,496 171,428

        Total revenue in North Macedonia was moderately down year-on-year to HUF 19.3 billion in Q1 2026 in forint terms, whilst in local currency revenues increased by 5.8% YoY, with difference arising from the 6.0% strengthening of the forint against the Macedonian denar year-on-year. Underlying revenue growth was the result of higher service revenues, coupled with an increase in mobile equipment sales.
        • Mobile revenue was flat year-on-year in forint terms in Q1 2026, whilst was up by 6.4% in denar, driven primarily by the continued increase in data revenue thanks to the further expansion of the user base, and strong increase in equipment sales. Voice revenue declined due to considerably lower voice wholesale revenue as a result of reduction in incoming traffic volumes.
        • Fixed line revenue was down by 1.8% year-on-year in forint terms in Q1 2026, whilst it increased by 4.3% YoY in local currency. Underlying improvement was driven by the growth in both fixed broadband and TV revenues, in line with the expansion of the relevant customer bases, but was partly mitigated by the reduction in wholesale revenue because of the lower international incoming traffic volume.
        • SI/IT revenue rose by 11.2% year-on-year in forint terms in Q1 2026, mostly reflecting different annual project dynamics. Gross profit while was down by 2.4% year-on-year in forint terms in Q1 2026, it rose by 3.7% year-on-year in Macedonian denar, thanks to higher telecommunication service contribution, which more than offset the increase in equipment costs. EBITDA was down by 3.2% year-on-year and EBITDA AL by 3.5% year-on-year in Q1 2026 in forint terms, whilst improved by 2.8% and 2.5% respectively in local currency. Gross profit improvement was partially offset by higher indirect costs, such as marketing and maintenance expenses. CAPEX AL was lower by 10.1% YoY in Q1 2026, reflecting temporarily lower investment towards the fixed network. Outlook: Looking ahead, competition is expected to intensify further with the possible entrance of a new operator to the North Macedonian telecommunication market which may exert pressure on the profitability.

  3. ‌APPENDIX

    1. ‌Basis of preparation and initial application, interpretations and amendments of IFRS Accounting Standards

      This condensed consolidated financial information was prepared in accordance with IAS 34 (Interim Financial Reporting) and should be read in conjunction with the Consolidated financial statements for the year ended December 31, 2025, which were prepared in accordance with IFRS Accounting Standards as endorsed by the European Union. This consolidated interim financial information has not been audited.

      The Consolidated and Separate financial statements of Magyar Telekom for December 31, 2025 were audited and the audit reports were unqualified. They were approved by the shareholders at the Annual General Meeting on April 8, 2026 and have been published electronically on the sites required by the relevant laws and regulations.

      The principal accounting policies followed by the Group and the critical accounting estimates in applying accounting policies are consistent with those disclosed in the consolidated annual financial statements for the year ended December 31, 2025 with the following exception:

      Pronouncement

      Title

      To be applied from

      Changes

      Expected impact on the Group's financial

      statement

      IFRS Accounting Standards endorsed by the EU

      Amendments to IFRS 9 and

      IFRS 7

      Amendments to the Classification and Measurement of Financial Instruments

      Jan 1,

      2026

      The amendments of IFRS 7 and IFRS 9 mainly clarify the requirements for classifying and measuring financial instruments to make financial reporting more consistent and transparent.

      The changes in IFRS 9 relate to derecognition to simplify the process for derecognizing financial liabilities settled electronically and to classification providing more guidance on classifying financial assets with non-recourse features and contractually linked instruments.

      Changes of IFRS 7 enhance disclosure requirements for fair value through other comprehensive income and contractual terms impacting cash flows.

      No material impact.

      Annual Improvements Volume 11

      Jan 1,

      2026

      The IASB issued narrow amendments to IFRS Accounting Standards as part of its regular maintenance of the Standards. These amendments include clarifications, simplifications, corrections and changes aimed at improving the consistency of several IFRS Accounting Standards.

      No material impact.

      Pronouncement

      Title

      To be applied from

      Changes

      Expected impact on the Group's financial

      statement

      IFRS Accounting Standards endorsed by the EU

      Amendments to IFRS 9 and IFRS 7

      Contracts Referencing Nature-dependent Electricity

      Jan 1, 2026

      Amendments to IFRS 9 Financial Instruments:

      No material impact.

      Amendments to IFRS 7 Financial Instruments: Disclosures and IFRS 19 Subsidiaries without Public Accountability: Disclosures:

      The IASB amends IFRS 7 and IFRS 19 to introduce disclosure requirements about contracts for nature-dependent electricity with specified characteristics.

      • the own-use requirements in IFRS 9 are amended to include the factors an entity is required to consider when applying IFRS 9 2.4 to contracts to buy and take delivery of renewable electricity for which the source of production of the electricity is nature-dependent; and

      • the hedge accounting requirements in IFRS 9 are amended to permit an entity using a contract for nature-dependent renewable electricity with specified characteristics as a hedging instrument

    2. ‌Macroeconomic environment and critical accounting estimates

      Management continuously monitors the progress in the Hungarian economic environment, as well as the effects of the wars and other global developments, particularly on the macroeconomic trends and current market conditions. The associated risks are monitored and assessed by the Group through the quarterly risk reporting process with risk owners.

      In April 2026, the election of the members of the Hungarian Parliament was held, resulting in the formation of a new state administration. It is not yet possible to predict the effects of this change on the Group.

      The intensification of global conflicts may lead to additional rise in energy prices and more disruption on supply chains and more limited availability of memory cards, which may have a negative impact on Magyar Telekom.

      In preparing the interim financial report, management has made judgments and estimates about the future:

      • During the updating of the goodwill impairment test the management has taken into account the period-end book values, EUR/HUF exchange rate, and weighted average cost of capital and as a result of that, no impairment was needed to be recognized.

      • Considering the general economic factors, the solvency of customers has been assessed and management concluded that there was no need to recognize further allowance for bad debts in the first quarter of 2026.

      • No further material impairment needed to be recognized in the first quarter of 2026.

      Altogether, the Group continues to meet the increased demand for connectivity through its network and has not identified any events which could jeopardize the going concern of its operation, furthermore, based on the management's assessment of future cashflows, no underperformance is expected in the long term.

    3. ‌Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income - quarterly year-on-year comparison

      (HUF millions, except per share amounts)

      Q1 2025

      (unaudited)

      Q1 2026

      (unaudited)

      Change

      Change (%)

      Mobile revenue

      140,553

      140,459

      (94)

      (0.1%)

      Fixed line revenue

      78,073

      78,273

      200

      0.3%

      SI/IT revenue

      23,006

      19,324

      (3,682)

      (16.0%)

      Revenue

      241,632

      238,056

      (3,576)

      (1.5%)

      Interconnect costs

      (4,674)

      (4,186)

      488

      10.4%

      SI/IT service related costs

      (17,018)

      (12,767)

      4,251

      25.0%

      Impairment losses and gains on financial assets and contract assets

      (3,056)

      (2,413)

      643

      21.0%

      Telecom tax

      (6,089)

      (5,831)

      258

      4.2%

      Other direct costs

      (60,785)

      (57,549)

      3,236

      5.3%

      Direct costs

      (91,622)

      (82,746)

      8,876

      9.7%

      Employee-related expenses

      (24,986)

      (26,128)

      (1,142)

      (4.6%)

      Depreciation and amortization

      (35,310)

      (34,911)

      399

      1.1%

      Other operating expenses

      (20,859)

      (20,770)

      89

      0.4%

      Operating expenses

      (172,777)

      (164,555)

      8,222

      4.8%

      Other operating income

      1,061

      803

      (258)

      (24.3%)

      Operating profit

      69,916

      74,304

      4,388

      6.3%

      Interest income

      1,758

      2,421

      663

      37.7%

      Interest expense

      (4,495)

      (4,454)

      41

      0.9%

      Other finance expense - net

      (2,432)

      (1,779)

      653

      26.9%

      Net financial result

      (5,169)

      (3,812)

      1,357

      26.3%

      Share of associates' and joint ventures' results

      -

      -

      -

      -

      Profit before income tax

      64,747

      70,492

      5,745

      8.9%

      Income tax

      (9,080)

      (10,048)

      (968)

      (10.7%)

      Profit for the period

      55,667

      60,444

      4,777

      8.6%

      Other comprehensive income:

      Items to be reclassified to profit or loss in subsequent periods:

      Exchange differences on translating foreign operations

      (3,006)

      (317)

      2,689

      89.5%

      Items not to be reclassified to profit or loss in subsequent periods:

      Revaluation of financial assets at FV OCI

      96

      (12)

      (108)

      n.m.

      Other comprehensive income for the year, net of tax

      (2,910)

      (329)

      2,581

      88.7%

      Total comprehensive income for the period

      52,757

      60,115

      7,358

      13.9%

      Profit attributable to:

      Owners of the parent

      54,164

      58,976

      4,812

      8.9%

      Non-controlling interests

      1,503

      1,468

      (35)

      (2.3%)

      55,667

      60,444

      4,777

      8.6%

      Total comprehensive income attributable to:

      Owners of the parent

      52,319

      58,803

      6,484

      12.4%

      Non-controlling interests

      438

      1,312

      874

      199.5%

      52,757

      60,115

      7,358

      13.9%

      Earnings per share (EPS) information:

      Profit attributable to the owners of the Company

      54,164

      58,976

      Weighted average number of common stock outstanding

      used for basic/diluted EPS

      908,451,889

      885,759,569

      Basic / diluted earnings per share (HUF)

      59.62

      66.58

      6.96

      11.7%

      ‌3.4. Revenue breakdown - quarterly year-on-year comparison

      Q1 2025

      Q1 2026

      Change

      Change

      (HUF millions)

      (%)

      Voice retail

      34,991

      35,307

      316

      0.9%

      Voice wholesale

      1,900

      1,788

      (112)

      (5.9%)

      Data

      59,800

      64,419

      4,619

      7.7%

      SMS

      7,447

      6,520

      (927)

      (12.4%)

      Equipment

      31,539

      27,789

      (3,750)

      (11.9%)

      Other mobile revenue

      4,876

      4,636

      (240)

      (4.9%)

      Mobile revenue

      140,553

      140,459

      (94)

      (0.1%)

      Voice retail

      8,741

      7,932

      (809)

      (9.3%)

      Broadband retail

      29,887

      30,988

      1,101

      3.7%

      TV

      19,948

      19,800

      (148)

      (0.7%)

      Equipment

      5,319

      6,386

      1,067

      20.1%

      Data, wholesale and other fixed line revenue

      14,178

      13,167

      (1,011)

      (7.1%)

      Fixed line revenue

      78,073

      78,273

      200

      0.3%

      SI/IT revenue

      23,006

      19,324

      (3,682)

      (16.0%)

      Revenue

      241,632

      238,056

      (3,576)

      (1.5%)

      1. ‌Operating expenses breakdown - quarterly year-on-year comparison

        (HUF millions)

        Q1 2025

        Q1 2026

        Change

        Change

        (%)

        Direct costs

        (91,622)

        (82,746)

        8,876

        9.7%

        Employee-related expenses

        (24,986)

        (26,128)

        (1,142)

        (4.6%)

        Depreciation and amortization

        (35,310)

        (34,911)

        399

        1.1%

        Other operating expenses

        (20,859)

        (20,770)

        89

        0.4%

        Operating expenses

        (172,777)

        (164,555)

        8,222

        4.8%

      2. ‌Interim Consolidated Statement of Financial Position - Assets

        (HUF millions)

        Dec 31, 2025

        (unaudited)

        Mar 31, 2026

        (unaudited)

        Change

        Change (%)

        ASSETS

        Cash and cash equivalents

        14,429

        13,996

        (433)

        (3.0%)

        Trade receivables within one year

        210,272

        203,890

        (6,382)

        (3.0%)

        Other current assets

        9,354

        10,397

        1,043

        11.2%

        Derivative financial instruments contracted

        with related parties

        63

        39

        (24)

        (38.1%)

        Other current financial assets

        106,847

        143,498

        36,651

        34.3%

        Contract assets

        18,313

        18,649

        336

        1.8%

        Current income tax receivable

        107

        2,259

        2,152

        n.m.

        Inventories

        29,620

        31,456

        1,836

        6.2%

        389,005

        424,184

        35,179

        9.0%

        Assets held for sale

        712

        712

        -

        0.0%

        Total current assets

        389,717

        424,896

        35,179

        9.0%

        Property, plant and equipment

        528,344

        531,115

        2,771

        0.5%

        Right-of-use assets

        128,551

        127,467

        (1,084)

        (0.8%)

        Goodwill

        211,958

        211,958

        -

        0.0%

        Other intangible assets

        268,891

        279,435

        10,544

        3.9%

        Investments in associates and joint ventures

        -

        -

        -

        -

        Deferred tax assets

        201

        209

        8

        4.0%

        Trade receivables over one year

        26,513

        25,804

        (709)

        (2.7%)

        Derivative financial instruments contracted

        with related parties

        969

        1,635

        666

        68.7%

        Other non-current financial assets

        5,616

        5,471

        (145)

        (2.6%)

        Contract assets

        4,657

        4,403

        (254)

        (5.5%)

        Other non-current assets

        12,733

        13,174

        441

        3.5%

        Total non-current assets

        1,188,433

        1,200,671

        12,238

        1.0%

        Total assets

        1,578,150

        1,625,567

        47,417

        3.0%

      3. ‌Interim Consolidated Statement of Financial Position - Liabilities and Equity

      (HUF millions)

      Dec 31, 2025

      (unaudited)

      Mar 31, 2026

      (unaudited)

      Change

      Change (%)

      LIABILITIES

      Financial liabilities to related parties

      614

      906

      292

      47.6%

      Derivative financial instruments contracted

      with related parties

      59

      94

      35

      59.3%

      Lease liabilities

      26,672

      29,365

      2,693

      10.1%

      Corporate bonds

      34,843

      34,888

      45

      0.1%

      Trade payables

      165,816

      133,083

      (32,733)

      (19.7%)

      Other financial liabilities

      10,291

      13,185

      2,894

      28.1%

      Current income tax payable

      16,821

      20,929

      4,108

      24.4%

      Provisions

      6,647

      6,264

      (383)

      (5.8%)

      Contract liabilities

      14,814

      14,685

      (129)

      (0.9%)

      Other current liabilities

      16,727

      17,333

      606

      3.6%

      293,304

      270,732

      (22,572)

      (7.7%)

      Liabilities held for sale

      -

      -

      -

      n.a.

      Total current liabilities

      293,304

      270,732

      (22,572)

      (7.7%)

      Financial liabilities to related parties

      57,756

      58,153

      397

      0.7%

      Lease liabilities

      116,138

      113,855

      (2,283)

      (2.0%)

      Corporate bonds

      34,676

      34,716

      40

      0.1%

      Other financial liabilities

      88,402

      99,092

      10,690

      12.1%

      Deferred tax liabilities

      18,430

      18,542

      112

      0.6%

      Provisions

      30,850

      31,740

      890

      2.9%

      Contract liabilities

      276

      361

      85

      30.8%

      Other non-current liabilities

      450

      393

      (57)

      (12.7%)

      Total non-current liabilities

      346,978

      356,852

      9,874

      2.8%

      Total liabilities

      640,282

      627,584

      (12,698)

      (2.0%)

      EQUITY

      Common stock

      93,862

      93,862

      -

      0.0%

      Capital reserves

      24,644

      24,644

      -

      0.0%

      Treasury stock

      (67,143)

      (67,143)

      -

      0.0%

      Retained earnings

      809,234

      868,210

      58,976

      7.3%

      Accumulated other comprehensive income

      34,268

      34,095

      (173)

      (0.5%)

      Total equity of the owners of the parent

      894,865

      953,668

      58,803

      6.6%

      Non-controlling interests

      43,003

      44,315

      1,312

      3.1%

      Total equity

      937,868

      997,983

      60,115

      6.4%

      Total liabilities and equity

      1,578,150

      1,625,567

      47,417

      3.0%

      ‌3.8. Interim Consolidated Statement of Cash Flows

      1-3 months 2025

      1-3 months 2026

      Change

      Change

      (HUF millions)

      (unaudited)

      (unaudited)

      (%)

      Cash flows from operating activities

      Profit for the period

      55,667

      60,444

      4,777

      8.6%

      Depreciation and amortization

      35,310

      34,911

      (399)

      (1.1%)

      Income tax expense

      9,080

      10,048

      968

      10.7%

      Net financial result

      5,169

      3,812

      (1,357)

      (26.3%)

      Share of associates' and joint ventures' result

      -

      -

      -

      -

      Change in assets carried as working capital

      10,915

      2,718

      (8,197)

      (75.1%)

      Change in provisions

      (1,119)

      (12)

      1,107

      98.9%

      Change in liabilities carried as working capital

      (30,180)

      (26,583)

      3,597

      11.9%

      Income tax paid

      (6,182)

      (7,986)

      (1,804)

      (29.2%)

      Dividend received

      -

      -

      -

      -

      Interest and other financial charges paid

      (5,048)

      (4,838)

      210

      4.2%

      Interest received

      1,756

      2,412

      656

      37.4%

      Other non-cash items

      (796)

      (42)

      754

      94.7%

      Net cash generated from operating activities

      74,572

      74,884

      312

      0.4%

      Cash flows from investing activities

      Payments for property plant and equipment (PPE) and intangible assets

      (38,257)

      (31,362)

      6,895

      18.0%

      Proceeds from disposal of PPE and intangible assets

      261

      47

      (214)

      (82.0%)

      Payments for subsidiaries and business units

      -

      (2,024)

      (2,024)

      -

      Cash acquired through business combinations

      -

      -

      -

      -

      Proceeds from disposal of subsidiaries and business units

      -

      -

      -

      -

      Payments for other financial assets

      (3,036)

      (905)

      2,131

      70.2%

      Proceeds from other financial assets

      59

      -

      (59)

      (100.0%)

      Payments for interests in associates and joint ventures

      -

      -

      -

      -

      Net cash used in investing activities

      (40,973)

      (34,244)

      6,729

      16.4%

      Cash flows from financing activities

      Dividends paid to Owners of the parent and Non-controlling interests

      (7)

      (2)

      5

      71.4%

      Proceeds from loans and other borrowings

      6,787

      -

      (6,787)

      (100.0%)

      Repayment of loans and other borrowings

      (36,192)

      (35,050)

      1,142

      3.2%

      Proceeds from corporate bonds

      -

      -

      -

      -

      Repayment of lease and other financial liabilities

      (8,083)

      (5,991)

      2,092

      25.9%

      Treasury share purchase

      (1,657)

      -

      1,657

      100.0%

      Net cash used in financing activities

      (39,152)

      (41,043)

      (1,891)

      (4.8%)

      Exchange differences on cash and cash equivalents

      (295)

      (30)

      265

      89.8%

      Change in cash and cash equivalents

      (5,848)

      (433)

      5,415

      92.6%

      Cash and cash equivalents, beginning of period

      18,010

      14,429

      (3,581)

      (19.9%)

      Cash and cash equivalents, end of period

      12,162

      13,996

      1,834

      15.1%

      1. ‌Net debt reconciliation to changes in Statement of Cash Flows

        HUF millions

        Opening Balance at January 1,

        2026

        Changes in cash and cash equivalents

        Changes affecting cash flows from operating activities

        Changes in financial liabilities without cash movement

        Changes affecting cash flows from investing activities

        Changes affecting cash flows from financing activities

        Closing Balance at March 31, 2026

        Proceeds from loans and borrowings

        Repayment of loans and other

        borrowings

        Repayment of lease and other financial

        liabilities

        Other

        Related party loans

        58,370

        -

        341

        378

        -

        35,020

        (35,050)

        -

        -

        59,059

        Derivatives from related parties

        59

        -

        -

        572

        (537)

        -

        -

        -

        -

        94

        Spectrum fee payable

        91,118

        -

        (901)

        15,441

        -

        -

        -

        (1,267)

        -

        104,391

        Bonds

        69,519

        -

        (30)

        115

        -

        -

        -

        -

        -

        69,604

        Lease liabilities

        142,810

        -

        (1,913)

        6,793

        -

        -

        -

        (4,470)

        -

        143,220

        Debtors overpayment

        1,387

        -

        (140)

        -

        -

        -

        -

        -

        -

        1,247

        Other financial liabilities

        6,188

        -

        (91)

        796

        -

        -

        -

        (254)

        -

        6,639

        - Less cash and cash equivalent

        (14,429)

        433

        -

        -

        -

        -

        -

        -

        -

        (13,996)

        - Less other current financial assets and

        derivative financial instruments

        (106,910)

        -

        (1,142)

        (111)

        (354)

        (35,020)

        -

        -

        -

        (143,537)

        Net debt

        248,112

        433

        (3,876)

        23,984

        (891)

        0

        (35,050)

        (5,991)

        -

        226,721

        Treasury share purchase -

        Dividends paid to Owners of the parent and Non-

        controlling interest (2)

        Net Cash used in financing activities

        (41,043)

        Shares of common stock outstanding

        885,759,569

      2. ‌Interim Consolidated Statement of Changes in Equity

        pieces

        HUF millions

        Shares of common stock

        Common stock

        Capital reserves

        Treasury stock

        Retained earnings

        Accumulated Other

        Comprehensive Income

        Equity of the owners of the parent

        Non-controlling interests

        Total Equity

        Cumulative translation adjustment

        Revaluation reserve for FVOCI financial assets -net of tax

        Balance at January 1, 2025

        938,617,497

        93,862

        24,644

        (26,354)

        691,652

        37,915

        1,438

        823,157

        45,353

        868,510

        Dividend declared to Owners of the parent

        -

        -

        -

        - -

        -

        -

        -

        -

        -

        Dividend declared to Non-controlling interests

        -

        -

        -

        - -

        -

        -

        -

        -

        -

        Treasury share purchase

        -

        -

        -

        (1,657) -

        -

        -

        (1,657)

        -

        (1,657)

        Capital decrease with cancellation of treasury share

        -

        -

        -

        - -

        -

        -

        -

        -

        -

        Transactions with owners in their capacity as owners

        -

        -

        -

        (1,657) -

        -

        -

        (1,657)

        -

        (1,657)

        Other comprehensive income

        -

        -

        -

        - -

        (1,898)

        53

        (1,845)

        (1,065)

        (2,910)

        Profit or loss

        -

        -

        -

        - 54,164

        -

        -

        54,164

        1,503

        55,667

        Total comprehensive income

        -

        -

        -

        - 54,164

        (1,898)

        53

        52,319

        438

        52,757

        Balance at March 31, 2025

        938,617,497

        93,862

        24,644

        (28,011)

        745,816

        36,017

        1,491

        873,819

        45,791

        919,610

        Dividend declared to Owners of the parent

        -

        -

        -

        - (90,858)

        -

        -

        (90,858)

        -

        (90,858)

        Dividend declared to Non-controlling interests

        -

        -

        -

        - -

        -

        -

        -

        (6,772)

        (6,772)

        Treasury share purchase

        -

        -

        -

        (39,132) -

        -

        -

        (39,132)

        -

        (39,132)

        Capital decrease with cancellation of treasury share

        -

        -

        -

        - -

        -

        -

        -

        -

        -

        Transactions with owners in their capacity as owners

        -

        -

        -

        (39,132) (90,858)

        -

        -

        (129,990)

        (6,772)

        (136,762)

        Other comprehensive income

        -

        -

        -

        - -

        (3,162)

        (78)

        (3,240)

        (1,624)

        (4,864)

        Profit or loss

        -

        -

        -

        - 154,276

        -

        -

        154,276

        5,608

        159,884

        Total comprehensive income

        -

        -

        -

        - 154,276

        (3,162)

        (78)

        151,036

        3,984

        155,020

        Balance at December 31, 2025

        938,617,497

        93,862

        24,644

        (67,143)

        809,234

        32,855

        1,413

        894,865

        43,003

        937,868

        Dividend declared to Owners of the parent

        -

        -

        -

        - -

        -

        -

        -

        -

        -

        Dividend declared to Non-controlling interests

        -

        -

        -

        - -

        -

        -

        -

        -

        -

        Treasury share purchase

        -

        -

        -

        - -

        -

        -

        -

        -

        -

        Capital decrease with cancellation of treasury share

        -

        -

        -

        - -

        -

        -

        -

        -

        -

        Transactions with owners in their capacity as owners

        -

        -

        -

        - -

        -

        -

        -

        -

        -

        Other comprehensive income

        -

        -

        -

        - -

        (166)

        (7)

        (173)

        (156)

        (329)

        Profit or loss

        -

        -

        -

        - 58,976

        -

        -

        58,976

        1,468

        60,444

        Total comprehensive income

        -

        -

        -

        - 58,976

        (166)

        (7)

        58,803

        1,312

        60,115

        Balance at March 31, 2026

        938,617,497

        93,862

        24,644

        (67,143)

        868,210

        32,689

        1,406

        953,668

        44,315

        997,983

        Of which treasury stock

        (52,857,928)

      3. ‌Exchange rate information

        Q1 2025

        Q1 2026

        Change

        (%)

        HUF/EUR beginning of period

        410.09

        385.40

        (6.0%)

        HUF/EUR period-end

        401.90

        385.85

        (4.0%)

        HUF/EUR cumulative monthly average

        404.81

        381.08

        (5.9%)

        HUF/MKD beginning of period

        6.67

        6.27

        (6.0%)

        HUF/MKD period-end

        6.51

        6.25

        (4.0%)

        HUF/MKD cumulative monthly average

        6.57

        6.18

        (5.9%)

        Total Segment Capex AL excl. spectrum licenses

        21,495

        25,348

        Measurement differences to Group Capex AL excl. spectrum licenses

        -

        -

        Total Capex AL excl. spectrum licenses of the Group

        21,495

        25,348

      4. ‌Segment information

        HUF millions

        Q1 2025

        Q1 2026

        Total MT-Hungary revenue

        221,964

        218,583

        Less: MT-Hungary revenue from other segments

        (27)

        (26)

        MT-Hungary revenue from external customers

        221,937

        218,557

        Total North Macedonia revenue

        19,421

        19,342

        Less: North Macedonia revenue from other segments

        (10)

        (10)

        North Macedonia revenue from external customers

        19,411

        19,332

        Total consolidated revenue of the segments

        241,348

        237,889

        Measurement differences to Group revenue

        284

        167

        Total revenue of the Group

        241,632

        238,056

        Segment results (EBITDA)

        Hungary

        97,078

        101,123

        North Macedonia

        8,383

        8,112

        Total EBITDA of the segments

        105,461

        109,235

        Measurement differences to Group EBITDA

        (235)

        (20)

        Total EBITDA of the Group

        105,226

        109,215

        Segment Capex AL excl. spectrum licenses

        Hungary

        18,859

        22,979

        North Macedonia

        2,636

        2,369

      5. ‌Fair value of financial instruments - financial assets

        March 31, 2026 HUF millions

        Financial assets

        Carrying amount

        Fair value

        Amortized cost

        FVOCI

        (Level 1)

        FVTPL

        (Level 2)

        FVTPL

        (Level 3)

        Cash and cash equivalents

        13,996

        -

        -

        -

        13,996

        13,996

        Bank deposits with original maturities over 3 months

        2,314

        -

        -

        -

        2,314

        2,314

        Cash-pool receivables

        138,889

        -

        -

        -

        138,889

        138,889

        Trade receivables within one year

        203,890

        -

        -

        -

        203,890

        203,890

        Trade receivables over one year

        25,804

        -

        -

        -

        25,804

        23,877

        Derivative financial instruments contracted with related parties

        -

        -

        1,674

        -

        1,674

        1,674

        Finance lease receivable

        1,481

        -

        -

        -

        1,481

        1,409

        Equity instruments

        -

        3,171

        -

        1,400

        4,571

        4,571

        Other current receivables

        1,545

        -

        -

        -

        1,545

        1,545

        Other non-current receivables

        169

        -

        -

        -

        169

        166

        Total

        388,088

        3,171

        1,674

        1,400

        394,333

        392,331

        December 31, 2025 HUF millions

        Financial assets

        Carrying amount

        Fair value

        Amortized cost

        FVOCI

        (Level 1)

        FVTPL

        (Level 2)

        FVTPL

        (Level 3)

        Cash and cash equivalents

        14,429

        -

        -

        -

        14,429

        14,429

        Bank deposits with original maturities over 3 months

        1,928

        -

        -

        -

        1,928

        1,928

        Cash-pool receivables

        103,869

        -

        -

        -

        103,869

        103,869

        Trade receivables within one year

        210,272

        -

        -

        -

        210,272

        210,272

        Trade receivables over one year

        26,513

        -

        -

        -

        26,513

        24,791

        Derivative financial instruments contracted with related parties

        -

        -

        1,032

        -

        1,032

        1,032

        Finance lease receivable

        1,288

        -

        -

        -

        1,288

        1,232

        Equity instruments

        -

        3,194

        -

        1,400

        4,594

        4,594

        Other current receivables

        608

        -

        -

        -

        608

        608

        Other non-current receivables

        176

        -

        -

        -

        176

        173

        Total

        359,083

        3,194

        1,032

        1,400

        364,709

        362,929

      6. ‌Fair value of financial instruments - financial liabilities

        March 31, 2026 HUF millions

        Financial liabilities

        Carrying amount

        Fair value

        Measured at amortized cost

        FVTPL

        (Level 2)

        FVTPL

        (Level 3)

        Financial liabilities to related parties

        59,059

        -

        -

        59,059

        61,506

        Derivative financial instruments contracted with related parties

        -

        94

        -

        94

        94

        Trade payables

        133,083

        -

        -

        133,083

        133,083

        Frequency fee payable

        104,391

        -

        -

        104,391

        77,579

        Bonds

        69,604

        -

        -

        69,604

        66,780

        Lease liabilities

        143,220

        -

        -

        143,220

        129,702

        Debtors' overpayment

        1,247

        -

        -

        1,247

        1,247

        Other current liabilities

        4,815

        -

        -

        4,815

        4,815

        Other non-current liabilities

        1,824

        -

        -

        1,824

        1,774

        Total

        517,243

        94

        -

        517,337

        476,580

        December 31, 2025 HUF millions

        Financial liabilities

        Carrying amount

        Fair value

        Measured at amortized cost

        FVTPL

        (Level 2)

        FVTPL

        (Level 3)

        Financial liabilities to related parties

        58,370

        -

        -

        58,370

        61,800

        Derivative financial instruments contracted with related parties

        -

        59

        -

        59

        59

        Trade payables

        165,816

        -

        -

        165,816

        165,816

        Frequency fee payable

        91,118

        -

        -

        91,118

        69,708

        Bonds

        69,519

        -

        -

        69,519

        65,231

        Lease liabilities

        142,810

        -

        -

        142,810

        127,633

        Debtors' overpayment

        1,387

        -

        -

        1,387

        1,387

        Other current liabilities

        3,753

        -

        -

        3,753

        3,753

        Other non-current liabilities

        2,435

        -

        -

        2,435

        2,406

        Total

        535,208

        59

        -

        535,267

        497,793

      7. ‌EBITDA reconciliation

        (HUF millions)

        Q1 2025

        MT Group

        Q1 2025

        MT-Hungary

        Q1 2025

        North Macedonia

        Q1 2026

        MT Group

        Q1 2026

        MT-Hungary

        Q1 2026

        North Macedonia

        EBITDA 105,226 97,078 8,383 109,215 101,123 8,112

        IFRS 16 related D&A

        IFRS 16 related Interest

        (5,909)

        (1,829)

        (5,647)

        (1,788)

        (262)

        (41)

        (5,936)

        (1,913)

        (5,664)

        (1,867)

        (272)

        (46)

        EBITDA after lease

        97,488

        89,643

        8,080

        101,366

        93,592

        7,794

        Other D&A (unallocated)

        Other Financial result (unallocated)

        (29,401)

        (3,340)

        n.a.

        n.a.

        n.a.

        n.a.

        (28,975)

        (1,899)

        n.a.

        n.a.

        n.a.

        n.a.

        Profit before tax

        64,747

        n.a.

        n.a.

        70,492

        n.a.

        n.a.

      8. ‌Adjusted profit attributable to owners of the parent reconciliation

        (HUF millions)

        Q1 2025

        Q1 2026

        Change

        Change

        (%)

        Profit attributable to the owners of the parent

        54,164

        58,976

        4,812

        8.9%

        Changes in depreciation and amortization

        -

        -

        -

        -

        Changes in net financial result*

        408

        (315)

        (723)

        n.m.

        Changes in income tax

        -

        -

        -

        -

        Total adjusting factors

        408

        (315)

        (723)

        n.m.

        Adjusted profit attributable to owners of the parent

        54,572

        58,661

        4,089

        7.5%

        * Related to unrealized FX gains and losses and derivative fair value changes

      9. ‌Capex from Interim Consolidated Statement of Cash Flows

        (HUF millions)

        1-3 months 2025

        MT Group

        1-3 months 2026

        MT Group

        Payments for PPE and intangible assets

        Less spectrum payments

        38,257

        -

        31,362

        -

        Payments for PPE and intangible assets excl. spectrum payments

        38,257

        31,362

        +/- Cash adjustments

        (16,762)

        (6,014)

        Capex AL excl. spectrum

        21,495

        25,348

        ROU capex

        Spectrum capex

        5,074

        -

        5,019

        15,088

        Capex

        26,569

        45,455

      10. ‌Capex from Interim Consolidated Statement of Financial Position

      (HUF millions)

      Q1 2025

      MT Group

      Q1 2025

      MT-Hungary*

      Q1 2025

      North Macedonia*

      Q1 2026

      MT Group

      Q1 2026

      MT-Hungary*

      Q1 2026

      North Macedonia*

      Capex AL excl. spectrum licenses ROU capex

      Spectrum capex

      21,495

      5,074

      -

      18,859

      4,929

      -

      2,636

      145

      -

      25,348

      5,019

      15,088

      22,979

      4,845

      15,088

      2,369

      174

      -

      Capex

      26,569

      23,788

      2,781

      45,455

      42,912

      2,543

      *Deviation versus segment Capex values may occur due to measurement differences.

  4. ‌DECLARATION

We the undersigned declare that to the best of our knowledge this report prepared in accordance with IFRS Accounting Standards as endorsed by the EU, gives a true and fair view of the assets, liabilities, financial position and profit or loss of Magyar Telekom Plc. and its consolidated undertakings. In addition, the report gives a fair view of the position, development and performance of Magyar Telekom Plc. and its consolidated undertakings and contains risk factors and uncertainties.

Independent Auditor's Report was not prepared on the quarterly financial report.

Tibor Rékasi André Lenz

Chief Executive Officer, member of the Board Chief Financial Officer, member of the Board Budapest, May 12, 2026

This investor news contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore should not have undue reliance placed upon them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors are described in, among other things, our annual financial statements for the year ended December 31, 2025, available on our website at http://www.telekom.hu which have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB) and endorsed by the European Union.

Company analysis