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

About this update from 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 HIGHLIGHTS 3 MANAGEMENT REPORT 5 Consolidated IFRS Group Results 5 Group Profit and Loss 5 Group Cash Flows 7 Consolidated Statements of Financial Position 8 Related party transactions 8 Contingencies and commitments 8 Material events 9 Segment reports 9 MT-Hungary 10 North Macedonia 11 APPENDIX 13 Basis of preparation and initial application, interpretations and amendments of IFRS Accounting Standards 13 Macroeconomic environment and critical accounting estimates 14 Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income - quarterly year-on-year comparison 15 Revenue breakdown - quarterly year-on-year comparison 16 Operating expenses breakdown - quarterly year-on-year comparison 16 Interim Consolidated Statement of Financial Position - Assets 17 Interim Consolidated Statement of Financial Position - Liabilities and Equity 18 Interim Consolidated Statement of Cash Flows 19 Net debt reconciliation to changes in Statement of Cash Flows 20 Interim Consolidated Statement of Changes in Equity 21 Exchange rate information 22 Segment information 22 Fair value of financial instruments - financial assets 23 Fair value of financial instruments - financial liabilities 23 EBITDA reconciliation 24 Adjusted profit attributable to owners of the parent reconciliation 24 Capex from Interim Consolidated Statement of Cash Flows 24 Capex from Interim Consolidated Statement of Financial Position 25 DECLARATION 26 Company name: Magyar Telekom Plc. Company address: E-mail address: H-1097 Budapest Könyves Kálmán krt. 36. [email protected] IR contacts: Position: Telephone: E-mail address: Diána Párkányi-Várkonyi Capital Market Relations Hub Lead +36-1-481-7676 [email protected] Rita Walfisch Investor Relations manager +36-1-457-6084 [email protected] Gabriella Pászti Investor Relations manager +36-1-458-0332 [email protected] ‌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% FCF 1 HUF 220.9 billion at least HUF 200 billion 1 Excluding spectrum licenses ‌MANAGEMENT REPORT ‌Consolidated IFRS Group Results ‌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. ‌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 capita l, 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 ‌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. ‌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. ‌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. ‌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 ‌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. ‌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. ‌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. ‌APPENDIX ‌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 ‌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. ‌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%) ‌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% ‌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% ‌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% ‌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 ‌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) ‌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 ‌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 ‌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 ‌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 ‌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. ‌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 ‌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 ‌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. ‌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.

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