Magyar Telekom Távközlesi Nyilvánosan Müködö Reszvenytársaság financial results for the fourth quarter of 2025

Rékasi Tibor

André Lenz

ANALYSIS OF THE FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED DECEMBER 31, 2025

Budapest - February 25, 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 fourth quarter and full year of 2025, 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 9

      5. Contingencies and commitments 9

      6. Material events 10

   2. Segment reports 10

      1. MT-Hungary 11

      2. North Macedonia 12

3. APPENDIX 14

   1. Basis of preparation and initial application, interpretations and amendments of IFRS Accounting Standards 14

   2. Macroeconomic environment and critical accounting estimates, climate disclosures 14

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

   4. Consolidated Statement of Profit or Loss and Other Comprehensive Income - year-to-date comparison 16

   5. Revenue breakdown - quarterly year-on-year comparison 17

   6. Revenue breakdown - year-to-date comparison 17

   7. Operating expenses breakdown - quarterly year-on-year comparison 18

   8. Operating expenses breakdown - year-to-date comparison 18

   9. Consolidated Statement of Financial Position - Assets 19

   10. Consolidated Statement of Financial Position - Liabilities and Equity 20

   11. Consolidated Statement of Cash Flows 21

   12. Net debt reconciliation to changes in Statement of Cash Flows 22

   13. Consolidated Statement of Changes in Equity 23

   14. Exchange rate information 24

   15. Segment information 24

   16. Fair value of financial instruments - financial assets 25

   17. Fair value of financial instruments - financial liabilities 25

   18. EBITDA reconciliation 26

   19. Adjusted profit attributable to owners of the parent reconciliation 26

   20. Capex from Consolidated Statement of Cash Flows 26

   21. Capex from Consolidated Statement of Financial Position 27

4. DECLARATION 28

1. ‌HIGHLIGHTS

   (HUF millions, except ratios)	Q4 2024	Q4 2025	Change (%)	1-12 months 2024	1-12 months 2025	Change (%)
   Revenue	256,510	258,112	0.6%	967,478	983,939	1.7%
   Operating profit	50,687	58,476	15.4%	223,459	274,541	22.9%
   Profit attributable to:
   Owners of the parent	36,253	42,903	18.3%	157,797	208,440	32.1%
   Non-controlling interests	1,542	1,775	15.1%	5,599	7,111	27.0%
   	37,795	44,678	18.2%	163,396	215,551	31.9%
   Adjusted profit attributable to owners of the parent	34,586	41,768	20.8%	162,632	207,407	27.5%
   Gross profit	148,980	148,633	(0.2%)	587,668	606,409	3.2%
   EBITDA	85,484	94,844	10.9%	363,401	417,798	15.0%
   EBITDA AL	77,641	87,118	12.2%	333,077	386,763	16.1%
   Free cash flow				166,324	220,859	32.8%
   Free cash flow excl. spectrum licenses				165,101	220,859	33.8%
   Capex after lease	43,526	52,637	20.9%	113,303	135,092	19.2%
   Capex after lease excl. spectrum licenses	43,526	52,637	20.9%	113,303	135,092	19.2%
   Number of employees (closing full equivalent)				6,704	6,531	(2.6%)
   				Dec 31, 2024	Dec 31, 2025	Change (%)
   Net debt						(26.1%)
   				335,681	248,112
   Net debt / EBITDA				0.92	0.59	n.a.

   • Group revenue increased 0.6% YoY in Q4 2025, driven by growth in telecommunication revenues, which was partially offset by lower revenue from System Integration and IT ('SI/IT') services.
   • Gross profit for the quarter remained broadly stable YoY, as growth from telecommunication services was offset by lower contribution from SI/IT, consistent with revenue trends.
   • EBITDA AL increased 12.2% YoY in Q4 2025, attributable primarily to the absence of the supplementary telecommunication tax expense.
   • Adjusted net income rose by 20.8% YoY to HUF 41.8 billion in Q4 2025, and by 27.5% YoY to HUF 207.4 billion for the full year, driven by the higher EBITDA contribution and a decline in financial expenses.
   • Capex after leases increased 19.2% to HUF 135.1 billion in 2025, reflecting continued strategic investment in fixed and mobile networks across both countries of operation, reinforcing the Company's commitment to network quality and long-term competitiveness. This trend also incorporates a higher YoY asset retirement obligation in Hungary.
   • Free cash flow grew by HUF 54.5 billion YoY to HUF 220.9 billion in 2025, primarily attributable to strong improvement in profitability and the cash inflow related to the sale of ViDaNet.
   • The Board of Directors proposes a dividend payment of HUF 136.4 billion for the 2025 financial year, subject to approval at the Company's Annual General Meeting on April 8, 2026. Additionally, the Board envisages a share buyback of up to HUF 50.0 billion, which, together with dividends, implies a payout ratio of up to ca. 90% of the Group's adjusted net income.
   Tibor Rékasi, Magyar Telekom CEO, commented:

   "2025 marked an important year for Magyar Telekom. Consistent execution against our strategic priorities - digital transformation, a strong customer-centric approach and operational resilience - translated into robust financial performance. Continued investment in our fixed network, including the rollout of an additional 250,000 gigabit-capable access points, expanded our footprint to over 4.0 million gigabit-capable access points by year-end.

   Successfully addressing accelerating demand for data and connectivity was a key achievement, with refreshed fixed and mobile propositions tailored to evolving customer needs translating into positive customer base momentum. This performance, combined with disciplined cost management and the elimination of the supplementary telecommunication tax, delivered year-on-year EBITDA AL growth of 16.1% and an increase in Group adjusted net income of 27.5%, reinforcing the strength of our operating model and our ability to generate sustainable shareholder value.

   On the back of this strong performance, the Board has proposed a record-high total shareholder remuneration for FY25, comprising dividend payments of HUF 136.4 billion and a share buyback of up to HUF 50.0 billion.

   Looking ahead to 2026, our strategic priorities remain unchanged. The progress achieved in digital transformation provides a strong foundation for continued value creation. Supported by further growth in service revenue, and notwithstanding risks affecting certain other revenue streams, we expect low-single-digit growth in Group revenue and EBITDA AL in FY26. Adjusted net income is expected to grow at a mid-single-digit rate, with projected free cashflow generation of approximately HUF 200 billion."

   Guidance:

   	2025 Actual	Guidance for 2026
   Revenue	HUF 983.9 billion	low-single-digit growth
   EBITDA AL	HUF 386.8 billion	low-single-digit growth
   Adjusted net income	HUF 207.4 billion	mid-single-digit growth
   FCF1	HUF 220.9 billion	at least HUF 200 billion

   1Excluding spectrum licenses

2. ‌MANAGEMENT REPORT

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

         (HUF millions)	Q4 2024	Q4 2025	Change	Change (%)	1-12 months 2024	1-12 months 2025	Change	Change (%)
         Mobile revenue	148,903	152,869	3,966	2.7%	565,480	581,468	15,988	2.8%
         Fixed line revenue	80,777	80,802	25	0.0%	307,603	312,939	5,336	1.7%
         SI/IT revenue	26,830	24,441	(2,389)	(8.9%)	94,395	89,532	(4,863)	(5.2%)
         Revenue	256,510	258,112	1,602	0.6%	967,478	983,939	16,461	1.7%
         Direct costs	(107,530)	(109,479)	(1,949)	(1.8%)	(379,810)	(377,530)	2,280	0.6%
         Gross profit	148,980	148,633	(347)	(0.2%)	587,668	606,409	18,741	3.2%
         Indirect costs	(63,496)	(53,789)	9,707	15.3%	(224,267)	(188,611)	35,656	15.9%
         EBITDA	85,484	94,844	9,360	10.9%	363,401	417,798	54,397	15.0%
         Depreciation and amortization	(34,797)	(36,368)	(1,571)	(4.5%)	(139,942)	(143,257)	(3,315)	(2.4%)
         Operating profit	50,687	58,476	7,789	15.4%	223,459	274,541	51,082	22.9%
         Net financial result	(5,121)	(4,570)	551	10.8%	(29,236)	(20,920)	8,316	28.4%
         Share of associates' and joint ventures' results	-	-	-	-	-	-	-	n.a.
         Profit before income tax	45,566	53,906	8,340	18.3%	194,223	253,621	59,398	30.6%
         Income tax	(7,771)	(9,228)	(1,457)	(18.7%)	(30,827)	(38,070)	(7,243)	(23.5%)
         Profit for the period	37,795	44,678	6,883	18.2%	163,396	215,551	52,155	31.9%
         Profit attributable to non-controlling interests	1,542	1,775	233	15.1%	5,599	7,111	1,512	27.0%
         Profit attributable to owners of the parent	36,253	42,903	6,650	18.3%	157,797	208,440	50,643	32.1%

         Total revenue was up by 0.6% year-on-year, amounting to HUF 258.1 billion in Q4 2025, thanks to the continued growth in telecommunication service revenue driven by further uptake of mobile data and fixed broadband services as well as the YoY increase in equipment sales, which combined, offset the YoY decline in SI/IT revenue.
         • Mobile revenue increased by 2.7% year-on-year, amounting to HUF 152.9 billion in Q4 2025, driven by the positive impact of the continued growth in mobile data revenue and higher mobile equipment sales.
           • Voice retail revenue was broadly stable year-on-year at HUF 35.3 billion in Q4 2025, reflecting broadly similar usage levels YoY.
           • Voice wholesale revenue declined by 7.6% year-on-year to HUF 1.8 billion in Q4 2025 due to lower incoming traffic volumes at the North Macedonian operation.
           • Data revenue rose by 6.3% year-on-year to HUF 63.0 billion in Q4 2025, driven primarily by the continued growth in usage levels.
           • SMS revenue was 8.5% lower year-on-year, amounting to HUF 7.0 billion in Q4 2025, due to some decline in usage among the residential customer base at the Hungarian operation.
           • Mobile equipment revenue was up 4.9% year-on-year, amounting to HUF 40.9 billion in Q4 2025, primarily driven by increase in the volume of sold handsets in the Hungarian operation, which impact more than offset the YoY decline in revenues from third party export sales.
           • Other mobile revenue decreased by 13.2% year-on-year to HUF 4.9 billion in Q4 2025, driven by lower interest income

             in relation to earlier periods' equipment sale on installment.

         • Fixed line revenue remained at the same level year-on-year, amounting to HUF 80.8 billion in Q4 2025 as increases in fixed broadband and equipment revenues were offset by lower voice retail and TV revenues, both of the latter partially reflecting the deconsolidation impact of ViDaNet.
           • Voice retail revenue decreased by 10.0% year-on-year to HUF 8.1 billion in Q4 2025, driven by the erosion in the customer base and lower usage level in Hungary.
           • Broadband retail revenue increased by 2.9% year-on-year to HUF 30.4 billion in Q4 2025, 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 lower by 5.3% year-on-year, amounting to HUF 19.5 billion in Q4 2025, due to the combined result of some underlying price erosion and a drop in the customer base in Hungary. Reduction in the subscriber base reflects the impacts of the phase-out of the satellite TV service and the deconsolidation of ViDaNet, which combined, offset the YoY growth in the IPTV user base.
           • Fixed equipment revenue was up by 20.5% year-on-year, amounting to HUF 8.7 billion in Q4 2025, driven by seasonal promotions at the Hungarian operation.
           • Data, wholesale and other fixed line revenue declined by 2.4% year-on-year to HUF 14.0 billion in Q4 2025, reflecting lower wholesale revenue at the North Macedonian operation.
         • System Integration and IT revenue was lower by 8.9% year-on-year, amounting to HUF 24.4 billion in Q4 2025. The decline reflects weaker demand in the Hungarian market, including the absence of major projects, which were present in the base period. Direct costs were higher by 1.8% year-on-year, at HUF 109.5 billion in Q4 2025, as a result of higher equipment costs which was also coupled with an increase in bad debt expense.
         • Interconnect costs were lower by 6.9% year-on-year, amounting to HUF 4.6 billion in Q4 2025, reflecting the lower incoming traffic in both operations.
         • SI/IT service-related costs were lower by 7.9% YoY, amounting to HUF 19.0 billion in Q4 2025, in line with the year-on-year lower project volumes.
         • Impairment losses and gains on financial assets and contract assets (bad debt expenses) were up by 21.6% or HUF 0.8 billion YoY, amounting to HUF 4.3 billion in Q4 2025, driven by higher equipment sales volumes resulting in higher related impairment recognition as well as a one-off expense relating to a retrospective calculation methodology change.
         • Telecom tax declined by 4.6% year-on-year, amounting to HUF 5.9 billion in Q4 2025, primarily due to the lower mobile voice traffic generated by business customers.
         • Other direct costs were up by 4.8% year-on-year, amounting to HUF 75.7 billion in Q4 2025, driven by the higher equipment sales related costs. Gross profit was broadly unchanged year-on-year, amounting to HUF 148.6 billion in Q4 2025, as higher gross profit from telecommunication services was offset by the decline in SI/IT service contribution. Indirect costs were lower by 15.3% or HUF 9.7 billion year-on-year, at HUF 53.8 billion in Q4 2025, primarily driven by the positive impact from the elimination of the supplementary telecommunication tax.
         • Employee-related expenses were higher by 2.4% year-on-year, amounting to HUF 30.4 billion in Q4 2025, as a result of the implemented wage increase coupled with recognition of one-time remuneration in Q4 2025. These increases were partly offset by year-on-year lower incentive accruals.
         • Supplementary telecommunication tax was eliminated effective from January 1, 2025, resulting in a HUF 9.2 billion improvement year-on-year in Q4 2025.
         • Other operating expenses (excluding supplementary telecommunication tax) declined by 7.8% year-on-year, amounting to HUF

           25.8 billion in Q4 2025, thanks to year-on-year lower costs on several categories coupled with the one-off decline in retail tax expenses related to the retrospective change in the tax legislation in Hungary.

         • Other operating income amounted to HUF 2.4 billion in Q4 2025. EBITDA increased by 10.9% year-on-year to HUF 94.8 billion in Q4 2025, reflecting the absence on the supplementary telecommunication tax; EBITDA AL was up by 12.2% year-on-year to HUF 87.1 billion in Q4 2025. Depreciation and amortization ('D&A') expenses increased by 4.5% year-on-year, to HUF 36.4 billion in Q4 2025, reflecting higher software-related depreciation expenses. Profit for the period rose by 18.2% year-on-year to HUF 44.7 billion in Q4 2025, driven primarily by the growth in EBITDA.
           • Net financial result improved from a loss of HUF 5.1 billion in Q4 2024 to a loss of HUF 4.6 billion in Q4 2025. Year-on-year lower net interest expense was primarily attributable to higher interest received related to the liquidity balances.
             • Income tax expenses were up by 18.7% year-on-year at HUF 9.2 billion in Q4 2025, driven by the year-on-year higher profit levels and a one-off tax expense.
           Profit attributable to non-controlling interests increased by 15.1% year-on-year, amounting to HUF 1.8 billion in Q4 2025, reflecting improvement in profitability at the North Macedonian operation. Adjusted net income (adjusted profit attributable to owners of the parent) was up at HUF 41.8 billion in Q4 2025.
      2. ‌Group Cash Flows

         HUF millions	1-12 months 2024	1-12 months 2025	Change
         Net cash generated from operating activities	302,311	362,230	59,919
         Net cash used in investing activities	(86,415)	(116,454)	(30,039)
         Less: (Payments for) / Proceeds from other financial assets	(15,605)	7,646	23,251
         Investing cash flow excluding Payments for / Proceeds
         from other financial assets - net	(102,020)	(108,808)	(6,788)
         Repayment of lease and other financial liabilities	(33,967)	(32,563)	1,404
         Free cash flow	166,324	220,859	54,535
         (Payments for) / Proceeds from other financial assets - net	15,605	(7,646)	(23,251)
         Proceeds from / (Repayment of) loans and other borrowings - net	(108,075)	(77,849)	30,226
         Dividends paid to Owners of the parent and Non-controlling interests	(47,955)	(97,336)	(49,381)
         Treasury share purchase	(22,363)	(40,789)	(18,426)
         Exchange differences on cash and cash equivalents	960	(820)	(1,780)
         Change in cash and cash equivalents	4,496	(3,581)	(8,077)

         Free cash flow (FCF) amounted to HUF 220.9 billion cash inflow in 2025 (2024: HUF 166.3 billion cash inflow) mainly due to the reasons described below.

         Operating cash flow

         Net cash generated from operating activities significantly improved to a cash inflow of HUF 362.2 billion in 2025, compared to cash inflow of HUF 302.3 billion in 2024, attributable to the reasons outlined as follows:

         • HUF 54.4 billion positive impact due to higher EBITDA in 2025.

         • HUF 8.4 billion positive change in active working capital, mainly as a result of:

           • favorable change in net portfolio of installment receivables in 2025 compared to 2024 (positive impact ca. HUF 7.0 billion) as a result of different year-end-seasonality,

           • favorable change in the trade receivables in North Macedonia boosted by the significant effect of the strengthening of HUF vs MKD in 2025 as opposed to the weakening of HUF vs MKD in 2024 (positive impact: ca. HUF 3.4 billion),

           • different project seasonality led to favorable changes in SI/IT trade receivables (positive impact: ca. HUF 1.9 billion) in 2025 compared to 2024 in Hungary,

           • unfavorable change in handset inventory balances in Hungary in 2025 compared to 2024 (negative impact: ca. HUF 4.5 billion) primarily due to different within-year procurement dynamics.

         • HUF 3.0 billion negative change in provisions, mainly reflecting higher employee-related provision payouts in 2025 compared to 2024.

         • HUF 8.6 billion positive change in passive working capital, primarily driven by:

           • favorable change in the balances of handset creditors in Hungary (positive impact: ca. HUF 10.9 billion) due to lower outpayments in 2025 compared to 2024,

           • favorable change in the balances of invoiced and non-invoiced trade creditors in Hungary (positive impact: ca. HUF 9.8 billion) due to seasonality,

           • unfavorable change in balance of taxes not related to income taxes (negative impact: ca. HUF 7.2 billion) mainly due to elimination of supplementary telecommunication tax from 2025,

           • unfavorable change in liabilities to employees (negative impact: ca. HUF 5.5 billion) driven by different payment dynamics of monthly wage transfer in 2025 compared to 2024.

         • HUF 13.7 billion negative change in income taxes paid in 2025 compared to 2024, mainly reflecting higher local business tax and higher corporate income tax payment due to improving profit figures.

         • HUF 2.5 billion positive change in interest and other financial charges paid in 2025 compared to 2024, mainly reflecting the lower level of the loan portfolio and different timing of interest payment.

         • HUF 2.7 billion positive change in interest received in 2025 compared to 2024 due to more favorable liquidity positions.

         • No material YoY changes in other non-cash items, as the significant foreign exchange rate movements leading to higher FX gains in 2025 versus 2024 counterbalanced the impacts of one-off gains on the sale of PPEs and subsidiary, ViDaNet in 2025.

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

           Net cash used in investing activities amounted to HUF 108.8 billion in 2025, compared to HUF 102.0 billion in 2024.
         • Payment for property plant and equipment and intangible assets increased by HUF 15.4 billion YoY reflecting higher investments in fiber rollout and higher outpayments to Capex creditors in Hungary, coupled with higher network development in North Macedonia.
         • Proceeds from disposal of PPE and intangible asset increased by HUF 1.1 billion YoY thanks to real-estate sales in Hungary that resulted in a positive effect during 2025.

         • The sale of subsidiary, ViDaNet resulted HUF 7.6 billion one-off positive cash flow effect. The sales price was partly settled by loan assignment between the parties classified as a non-cash transaction amounting to HUF 6.4 billion, which was eliminated between the Investing and Financing part of the Consolidated Statement of Cash flows. At the date of loss of control, the amount of cash and cash equivalents in ViDaNet was HUF 45 million. The cash flow from disposal of ViDaNet is presented net of cash and cash equivalents disposed of.

           Repayment of lease and other financial liabilities

           Repayment of lease and other financial liabilities improved to HUF 32.6 billion in 2025 from HUF 34.0 billion in 2024, primarily driven by the absence of cash outflow related to trade payables with extended payment term. Cash and cash equivalents deteriorated by HUF 8.1 billion in 2025 compared to 2024. Besides the favorable change in FCF the deterioration in Cash and cash equivalents is attributable to the followings:
         • Proceeds from loans and other borrowings deteriorated by HUF 30.9 billion due to combined effect of the lower drawdown of DT Group loans and the increase of proceeds from inhouse DT Group funds in 2025 compared to 2024.
         • Repayments of loans and other borrowings improved by HUF 61.2 billion due to lower repayment amounts of DT Group loans partly mitigated by the higher level of repayments of inhouse DT Group funds in 2025 compared to 2024.

         • HUF 18.4 billion higher cash outflow related to treasury share purchase in 2025 compared to 2024.

         • HUF 49.4 billion higher dividend was paid in 2025 versus 2024.

         • Exchange differences on cash and cash equivalents deteriorated by HUF 1.8 billion due to the MKD/HUF foreign exchange rate movement during 2025 versus 2024.

           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, 2024 to December 31, 2025 (see Appendix 3.9 and 3.10) can be observed in the following lines:

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

         • Property, plant and equipment

         • Other intangible assets

         • Financial liabilities to related parties (current and non-current combined)

         • Corporate bonds (current and non-current combined)

         • Current income tax payable

         • Provisions (current and non-current combined)

         • Other liabilities (current and non-current combined)

         • Treasury stock

           Other financial assets (current and non-current combined) increased by HUF 53.5 billion from December 31, 2024 to December 31, 2025 mainly as a result of HUF 52.7 billion increase in cash pool receivables. Property, plant and equipment increased by HUF 30.6 billion from December 31, 2024 to December 31, 2025 mainly due to fixed network development through optical rollout, 5G coverage developments, upgrading and greening the infrastructure of technological buildings, partially offset by assets related to disposal of ViDaNet. Other intangible assets declined by HUF 24.7 billion from December 31, 2024 to December 31, 2025, reflecting the amortization and shortening of useful life of some software. Financial liabilities to related parties (current and non-current combined) decreased by HUF 28.4 billion from December 31, 2024 to December 31, 2025 mainly driven by repayment of DT Group loans.

           At December 31, 2025 the carrying amount of Corporate bonds (current and non-current) is HUF 69.5 billion (at December 31, 2024 is HUF 69.2 billion), of which HUF 34.8 billion presented under short-term liabilities as the first repayment of corporate bonds due in 2026.

           Current income tax payable increased by HUF 10.9 billion from December 31, 2024 to December 31, 2025, reflecting mainly the higher corporate income tax liability in line with improving profit figures. Provisions (current and non-current combined) increased by HUF 12.1 billion from December 31, 2024 to December 31, 2025, reflecting higher asset retirement obligations arising not only in connection with telecommunication structures located on third-party properties, but also from the general legal requirement, as regulated in section 97/A of Electronic Communications Act effective from 2025 in Hungary. Accordingly, such obligations may relate to assets situated both on the Company's own sites and on third-party premises. Other liabilities (current and non-current combined) decreased by HUF 13.2 billion from December 31, 2024 to December 31, 2025, reflecting mainly the elimination of supplementary telecommunication tax liability and different payment dynamics of monthly wage transfer. Treasury stock increased from December 31, 2024 to December 31, 2025 as a result of HUF 40.8 billion purchase of total of 22,821,515 Magyar Telekom ordinary shares.

           There has not been any other material change in the items of the Consolidated Statement of Financial Position in the period from December 31, 2024 to December 31, 2025. 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 2025 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 3.13 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 2025.

      6. ‌Material events

         In January 2026, Magyar Telekom Plc. signed a Purchase Agreement to acquire telecommunications networks and their associated customer contracts for a purchase price of HUF 2.25 billion. The closing of the transaction will take place in the first quarter of 2026.

         For any material event that occurred between the end of the quarter (December 31, 2025) 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	Q4 2024	Q4 2025	Change	Change (%)	1-12 months 2024	1-12 months 2025	Change	Change (%)
         Voice	33,406	33,532	126	0.4%	131,118	133,875	2,757	2.1%
         Non-voice	61,798	64,618	2,820	4.6%	237,241	255,781	18,540	7.8%
         Equipment	35,273	36,347	1,074	3.0%	125,096	120,332	(4,764)	(3.8%)
         Other mobile revenue	4,912	4,227	(685)	(13.9%)	20,020	18,141	(1,879)	(9.4%)
         Mobile revenue	135,389	138,724	3,335	2.5%	513,475	528,129	14,654	2.9%
         Voice retail	7,696	6,880	(816)	(10.6%)	31,276	28,628	(2,648)	(8.5%)
         Broadband retail	27,636	28,482	846	3.1%	105,704	112,365	6,661	6.3%
         TV	19,093	18,016	(1,077)	(5.6%)	75,771	72,760	(3,011)	(4.0%)
         Equipment	7,227	8,720	1,493	20.7%	22,164	24,883	2,719	12.3%
         Other	11,599	12,984	1,385	11.9%	44,796	47,923	3,127	7.0%
         Fixed line revenue	73,251	75,082	1,831	2.5%	279,711	286,559	6,848	2.4%
         SI/IT revenue	26,089	23,901	(2,188)	(8.4%)	92,450	87,581	(4,869)	(5.3%)
         Revenue	234,729	237,707	2,978	1.3%	885,636	902,269	16,633	1.9%
         Direct costs	(100,417)	(101,967)	(1,550)	(1.5%)	(355,420)	(351,683)	3,737	1.1%
         Gross profit	134,312	135,740	1,428	1.1%	530,216	550,586	20,370	3.8%
         Indirect costs	(47,978)	(49,327)	(1,349)	(2.8%)	(163,847)	(167,868)	(4,021)	(2.5%)
         Supplementary telecommunication tax	(9,246)	-	9,246	n.a.	(36,390)	-	36,390	n.a.
         EBITDA	77,088	86,413	9,325	12.1%	329,979	382,718	52,739	16.0%
         EBITDA AL	69,547	78,980	9,433	13.6%	300,865	352,884	52,019	17.3%
         Segment Capex AL excl. spectrum licenses	36,321	45,596	9,275	25.5%	99,490	118,070	18,580	18.7%
         Spectrum licenses	-	-	-	-	-	-	-	-

         Operational statistics - access numbers	December 31 2024	December 31 2025	Change (%)
         Number of SIM cards Postpaid share in total Total fixed voice access Total retail fixed broadband customers	6,454,319 6,610,232 58.5% 57.3% 1,197,345 1,118,839 1,653,562 1,664,584		2.4% n.a. (6.6%) 0.7% (2.6%)
         Total TV customers 1,438,353 1,401,103

         Operational statistics - ARPU (HUF)	Q4 2024	Q4 2025	Change (%)	1-12 months 2024	1-12 months 2025	Change (%)
         Blended mobile ARPU	4,935	4,968	0.7%	4,813	4,973	3.3%
         Postpaid ARPU	7,816	8,056	3.1%	7,506	7,993	6.5%
         Prepaid ARPU	1,421	1,542	8.5%	1,389	1,521	9.6%
         M2M ARPU	250	250	0.1%	251	256	1.8%
         Blended fixed voice ARPU	2,123	2,036	(4.1%)	2,111	2,062	(2.3%)
         Blended fixed broadband ARPU	5,542	5,679	2.5%	5,374	5,616	4.5%
         Blended TV ARPU	4,420	4,308	(2.5%)	4,400	4,327	(1.7%)

         Total revenue for the MT-Hungary segment was up by 1.3% year-on-year to HUF 237.7 billion in Q4 2025, as the continued increase in mobile data and fixed broadband revenues, coupled with YoY higher equipment sales revenues, mitigated the declines in voice, TV, and SI/IT revenue.
         • Mobile revenue increased by 2.5% year-on-year in Q4 2025, driven primarily by the continued increase in mobile data revenues and the YoY higher equipment sales. With voice revenue stable year-on-year, service revenue growth continued to be fueled by the higher mobile data revenues stemming from increasing mobile data usage and expansion of the residential

           user base. Equipment sales YoY was up as increases in the volume of customer sale transactions, supported by the seasonal promotions, outweighed the decline stemming from scaling back the third-party export sales.

         • Fixed line revenue was up by 2.5% year-on-year in Q4 2025, 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 equally reflects the lower ARPU levels and the reduction of the user base. Lower TV subscriber base year-on-year is driven by two one-off factors: the impact of the satellite TV phase-out and the sale of the subsidiary ViDaNet. In addition to these, retrospective change in the retail tax legislation in Hungary led to a one-off improvement in the segment other revenues.
         • SI/IT revenue was down by 8.4% year-on-year in Q4 2025, reflecting weaker demand in the Hungarian market, including the absence of major projects, which were present in the base period. Gross profit was up by 1.1% year-on-year in Q4 2025, thanks to the increase in telecommunication service revenue coupled with the one-off positive impact related to the retail tax that offset increase in bad debt and lower SI/IT service contribution. EBITDA increased by 12.1% year-on-year and EBITDA AL was up by 13.6% year-on-year in Q4 2025, driven by higher gross profit coupled with the favorable impact of the elimination of the supplementary telecommunication tax from January 2025, which combined, offset the increase in indirect costs. Capex AL excluding spectrum licenses was higher by HUF 9.3 billion year-on-year in Q4 2025 and was up by HUF 18.6 billion, amounting to 118.1 billion for the full year of 2025. Increases were partially driven by higher investments towards the fixed and mobile networks but also reflect HUF 11.3 billion cost recognized in 2025, related to the asset retirement obligation. Outlook: There are considerable uncertainties with regard to the outlook of economic, business and competitive developments in Hungary. Magyar Telekom closely monitors the development of its external environment and makes its decisions and implements measures according. It will consider these developments as well, when deciding on the implementation of the inflation-based fee adjustment for the period following June 30, 2026.
      2. ‌North Macedonia

         HUF millions	Q4 2024	Q4 2025	Change	Change (%)	1-12 months 2024	1-12 months 2025	Change	Change (%)
         Voice	3,945	3,566	(379)	(9.6%)	15,807	15,268	(539)	(3.4%)
         Non-voice	5,123	5,364	241	4.7%	19,540	21,764	2,224	11.4%
         Equipment	3,718	4,546	828	22.3%	12,845	13,398	553	4.3%
         Other mobile revenue	730	674	(56)	(7.7%)	3,096	2,917	(179)	(5.8%)
         Mobile revenue	13,516	14,150	634	4.7%	51,288	53,347	2,059	4.0%
         Voice retail	1,352	1,260	(92)	(6.8%)	5,269	5,156	(113)	(2.1%)
         Broadband retail	1,912	1,936	24	1.3%	7,230	7,749	519	7.2%
         TV	1,458	1,456	(2)	(0.1%)	5,548	5,834	286	5.2%
         Equipment	28	23	(5)	(17.9%)	110	90	(20)	(18.2%)
         Other	1,865	1,694	(171)	(9.2%)	7,371	7,026	(345)	(4.7%)
         Fixed line revenue	6,615	6,369	(246)	(3.7%)	25,528	25,855	327	1.3%
         SI/IT revenue	565	540	(25)	(4.4%)	1,769	2,127	358	20.2%
         Revenue	20,696	21,059	363	1.8%	78,585	81,329	2,744	3.5%
         Direct costs	(7,058)	(7,548)	(490)	(6.9%)	(24,450)	(25,954)	(1,504)	(6.2%)
         Gross profit	13,638	13,511	(127)	(0.9%)	54,135	55,375	1,240	2.3%
         Indirect costs	(5,484)	(5,058)	426	7.8%	(21,338)	(20,127)	1,211	5.7%
         EBITDA	8,154	8,453	299	3.7%	32,797	35,248	2,451	7.5%
         EBITDA AL	7,852	8,160	308	3.9%	31,587	34,047	2,460	7.8%
         Segment Capex AL excl. spectrum licenses	7,325	7,036	(289)	(3.9%)	13,613	17,017	3,404	25.0%
         Spectrum licenses	-	-	-	-	-	-	-	-

         Operational statistics - access numbers	December 31 2024	December 31 2025	Change (%)
         Number of mobile SIMs	1,281,667	1,303,100	1.7%
         Postpaid share in total	47.1%	47.7%	n.a.
         Total fixed voice access	233,297	238,319	2.2%
         Total fixed retail broadband customers	217,881	225,372	3.4%
         Total TV customers	158,750	168,822	6.3%

         Total revenue in North Macedonia was up by 1.8% year-on-year to HUF 21.1 billion in Q4 2025 in forint terms, whilst in local currency the increase amounted to 7.5%, difference arising from the 5.7% strengthening of the forint against the Macedonian denar year-on-year. Revenue growth was the result of higher mobile data and fixed service revenue and a strong increase in mobile equipment sales, which combined, offset declines in fixed and mobile wholesale revenues.
         • Mobile revenue rose by 4.7% year-on-year in forint terms in Q4 2025, driven primarily by the continued increase in data revenue thanks to the further expansion of the user base, and strong increase in equipment sales, fueled by the seasonal promotions. 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 3.7% year-on-year in forint terms in Q4 2025, whilst it increased moderately 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 base, but was partly mitigated by the reduction in wholesale revenue because of the lower international incoming traffic volume.
         • SI/IT revenue declined by 4.4% year-on-year in forint terms in Q4 2025 and was broadly unchanged in local currency. Gross profit was moderately down year-on-year in forint terms in Q4 2025, whilst was up by 5.1% year-on-year in Macedonian denar, thanks to higher telecommunication service contribution and decline in bad debt expenses, which combined more than offset the increase in equipment costs. EBITDA rose by 3.7% year-on-year and EBITDA AL was up by 3.9% year-on-year in Q4 2025 in forint terms, and improved by 9.9% and 10.2% respectively in local currency, in line with gross profit developments. CAPEX AL was up 25.0% year-on-year in 2025 as a result of higher investments towards the fixed and mobile networks. 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, 2024, which were prepared in accordance with IFRS Accounting Standards as adopted 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, 2024 were audited and the audit reports were unqualified. They were approved by the shareholders at the Annual General Meeting on April 15, 2025 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 estimates in applying accounting policies are consistent with those disclosed in the consolidated financial statements for the year ended December 31, 2024. There was not any new accounting principle amendments or interpretations applicable for the Group effective for 2025.

   2. ‌Macroeconomic environment and critical accounting estimates, climate disclosures

      Management continuously monitors the progress in the Hungarian economic environment, as well as the effects of the war and other global mechanisms, 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 2025, during the annual revision of expected credit loss calculation, the management evaluated the effects of the negative tendency of the global macroeconomic environment on the Hungarian economy. The roll-over impact of inflation has a negative impact on the solvency of the households and the monetization of receivables. Annual reassessment revealed that there is no reason to modify the impairment rates applied previously for the portfolios.

      Based on considered forward-looking information the management concluded that one-time impairment loss recognized on installment and service-related receivables in prior year, has to be slightly increased by HUF 0.1 billion. No other financial assets have been impacted materially.

      During the preparation of the annual financial report, management updated its goodwill impairment test taking into account the year-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.

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

      (HUF millions, except per share amounts)	Q4 2024 (unaudited)	Q4 2025 (unaudited)	Change	Change (%)
      Mobile revenue	148,903	152,869	3,966	2.7%
      Fixed line revenue	80,777	80,802	25	0.0%
      SI/IT revenue	26,830	24,441	(2,389)	(8.9%)
      Revenue	256,510	258,112	1,602	0.6%
      Interconnect costs	(4,957)	(4,615)	342	6.9%
      SI/IT service related costs	(20,586)	(18,952)	1,634	7.9%
      Impairment losses and gains on financial assets and contract assets	(3,572)	(4,345)	(773)	(21.6%)
      Telecom tax	(6,167)	(5,882)	285	4.6%
      Other direct costs	(72,248)	(75,685)	(3,437)	(4.8%)
      Direct costs	(107,530)	(109,479)	(1,949)	(1.8%)
      Employee-related expenses	(29,662)	(30,372)	(710)	(2.4%)
      Depreciation and amortization	(34,797)	(36,368)	(1,571)	(4.5%)
      Other operating expenses	(28,023)	(25,839)	2,184	7.8%
      Supplementary telecommunication tax	(9,236)	-	9,236	n.a.
      Operating expenses	(209,248)	(202,058)	7,190	3.4%
      Other operating income	3,425	2,422	(1,003)	(29.3%)
      Operating profit	50,687	58,476	7,789	15.4%
      Interest income	1,160	2,279	1,119	96.5%
      Interest expense	(4,738)	(5,445)	(707)	(14.9%)
      Other finance expense - net	(1,543)	(1,404)	139	9.0%
      Net financial result	(5,121)	(4,570)	551	10.8%
      Share of associates' and joint ventures' results	-	-	-	-
      Profit before income tax	45,566	53,906	8,340	18.3%
      Income tax	(7,771)	(9,228)	(1,457)	(18.7%)
      Profit for the period	37,795	44,678	6,883	18.2%
      Other comprehensive income:
      Items to be reclassified to profit or loss in subsequent periods:
      Exchange differences on translating foreign operations	3,568	(1,391)	(4,959)	n.m.
      Items not to be reclassified to profit or loss in subsequent periods:
      Revaluation of financial assets at FV OCI	457	18	(439)	(96.1%)
      Other comprehensive income for the year, net of tax	4,025	(1,373)	(5,398)	n.m.
      Total comprehensive income for the period	41,820	43,305	1,485	3.6%
      Profit attributable to:
      Owners of the parent	36,253	42,903	6,650	18.3%
      Non-controlling interests	1,542	1,775	233	15.1%
      	37,795	44,678	6,883	18.2%
      Total comprehensive income attributable to:
      Owners of the parent	38,740	42,003	3,263	8.4%
      Non-controlling interests	3,080	1,302	(1,778)	(57.7%)
      	41,820	43,305	1,485	3.6%
      Earnings per share (EPS) information:
      Profit attributable to the owners of the Company	36,253	42,903
      Weighted average number of common stock outstanding
      used for basic/diluted EPS	908,581,084	885,759,569
      Basic / diluted earnings per share (HUF)	39.90	48.44	8.54	21.4%

   4. ‌Consolidated Statement of Profit or Loss and Other Comprehensive Income - year-to-date comparison

      (HUF millions, except per share amounts)	1-12 months 2024 (unaudited)	1-12 months 2025 (unaudited)	Change	Change (%)
      Mobile revenue	565,480	581,468	15,988	2.8%
      Fixed line revenue	307,603	312,939	5,336	1.7%
      SI/IT revenue	94,395	89,532	(4,863)	(5.2%)
      Revenue	967,478	983,939	16,461	1.7%
      Interconnect costs	(19,198)	(19,044)	154	0.8%
      SI/IT service related costs	(68,192)	(63,651)	4,541	6.7%
      Impairment losses and gains on financial assets and contract assets	(13,743)	(12,893)	850	6.2%
      Telecom tax	(25,077)	(23,961)	1,116	4.5%
      Other direct costs	(253,600)	(257,981)	(4,381)	(1.7%)
      Direct costs	(379,810)	(377,530)	2,280	0.6%
      Employee-related expenses	(101,747)	(106,254)	(4,507)	(4.4%)
      Depreciation and amortization	(139,942)	(143,257)	(3,315)	(2.4%)
      Other operating expenses	(92,543)	(90,811)	1,732	1.9%
      Supplementary telecommunication tax	(36,363)	-	36,363	n.a.
      Operating expenses	(750,405)	(717,852)	32,553	4.3%
      Other operating income	6,386	8,454	2,068	32.4%
      Operating profit	223,459	274,541	51,082	22.9%
      Interest income	4,600	7,334	2,734	59.4%
      Interest expense	(20,753)	(19,070)	1,683	8.1%
      Other finance expense - net	(13,083)	(9,184)	3,899	29.8%
      Net financial result	(29,236)	(20,920)	8,316	28.4%
      Share of associates' and joint ventures' results	-	-	-	n.a.
      Profit before income tax	194,223	253,621	59,398	30.6%
      Income tax	(30,827)	(38,070)	(7,243)	(23.5%)
      Profit for the period	163,396	215,551	52,155	31.9%
      Other comprehensive income:
      Items to be reclassified to profit or loss in subsequent periods:
      Exchange differences on translating foreign operations	7,997	(7,733)	(15,730)	n.m.
      Items not to be reclassified to profit or loss in subsequent periods:
      Revaluation of financial assets at FV OCI	1,449	(41)	(1,490)	n.m.
      Other comprehensive income for the year, net of tax	9,446	(7,774)	(17,220)	n.m.
      Total comprehensive income for the period	172,842	207,777	34,935	20.2%
      Profit attributable to:
      Owners of the parent	157,797	208,440	50,643	32.1%
      Non-controlling interests	5,599	7,111	1,512	27.0%
      	163,396	215,551	52,155	31.9%
      Total comprehensive income attributable to:
      Owners of the parent	163,614	203,355	39,741	24.3%
      Non-controlling interests	9,228	4,422	(4,806)	(52.1%)
      	172,842	207,777	34,935	20.2%
      Earnings per share (EPS) information:
      Profit attributable to the owners of the Company	157,797	208,440
      Weighted average number of common stock outstanding
      used for basic/diluted EPS	918,686,597	895,244,267
      Basic / diluted earnings per share (HUF)	171.76	232.83	61.07	35.6%

      ‌3.5. Revenue breakdown - quarterly year-on-year comparison
      	Q4 2024		Q4 2025	Change	Change
      (HUF millions)					(%)
      Voice retail	35,404		35,299	(105)	(0.3%)
      Voice wholesale	1,947		1,799	(148)	(7.6%)
      Data	59,300		63,010	3,710	6.3%
      SMS	7,621		6,972	(649)	(8.5%)
      Equipment	38,991		40,893	1,902	4.9%
      Other mobile revenue	5,640		4,896	(744)	(13.2%)
      Mobile revenue	148,903		152,869	3,966	2.7%
      Voice retail	9,048		8,140	(908)	(10.0%)
      Broadband retail	29,548		30,418	870	2.9%
      TV	20,551		19,472	(1,079)	(5.3%)
      Equipment	7,255		8,743	1,488	20.5%
      Data, wholesale and other fixed line revenue	14,375		14,029	(346)	(2.4%)
      Fixed line revenue	80,777		80,802	25	0.0%
      SI/IT revenue	26,830		24,441	(2,389)	(8.9%)
      Revenue	256,510		258,112	1,602	0.6%
      ‌3.6. Revenue breakdown - year-to-date comparison
      	1-12 months 2024		1-12 months 2025	Change	Change
      (HUF millions)					(%)
      Voice retail	140,075		141,715	1,640	1.2%
      Voice wholesale	7,573		7,428	(145)	(1.9%)
      Data	227,289		248,545	21,256	9.4%
      SMS	29,492		29,000	(492)	(1.7%)
      Equipment	137,941		133,730	(4,211)	(3.1%)
      Other mobile revenue	23,110		21,050	(2,060)	(8.9%)
      Mobile revenue	565,480		581,468	15,988	2.8%
      Voice retail	36,556		33,784	(2,772)	(7.6%)
      Broadband retail	112,979		120,114	7,135	6.3%
      TV	81,351		78,594	(2,757)	(3.4%)
      Equipment	22,274		24,973	2,699	12.1%
      Data, wholesale and other fixed line revenue	54,443		55,474	1,031	1.9%
      Fixed line revenue	307,603		312,939	5,336	1.7%
      SI/IT revenue	94,395		89,532	(4,863)	(5.2%)
      Revenue	967,478		983,939	16,461	1.7%

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

         (HUF millions)	Q4 2024	Q4 2025	Change	Change (%)
         Direct costs	(107,530)	(109,479)	(1,949)	(1.8%)
         Employee-related expenses	(29,662)	(30,372)	(710)	(2.4%)
         Depreciation and amortization	(34,797)	(36,368)	(1,571)	(4.5%)
         Other operating expenses	(28,023)	(25,839)	2,184	7.8%
         Supplementary telecommunication tax	(9,236)	-	9,236	n.a.
         Operating expenses	(209,248)	(202,058)	7,190	3.4%

      2. ‌Operating expenses breakdown - year-to-date comparison

         (HUF millions)	1-12 months 2024	1-12 months 2025	Change	Change (%)
         Direct costs	(379,810)	(377,530)	2,280	0.6%
         Employee-related expenses	(101,747)	(106,254)	(4,507)	(4.4%)
         Depreciation and amortization	(139,942)	(143,257)	(3,315)	(2.4%)
         Other operating expenses	(92,543)	(90,811)	1,732	1.9%
         Supplementary telecommunication tax	(36,363)	-	36,363	n.a.
         Operating expenses	(750,405)	(717,852)	32,553	4.3%

      3. ‌Consolidated Statement of Financial Position - Assets

         (HUF millions)	Dec 31, 2024 (unaudited)	Dec 31, 2025 (unaudited)	Change	Change (%)
         ASSETS
         Cash and cash equivalents	18,010	14,429	(3,581)	(19.9%)
         Trade receivables within one year	211,411	210,272	(1,139)	(0.5%)
         Other current assets	9,214	9,354	140	1.5%
         Derivative financial instruments contracted
         with related parties	1,804	63	(1,741)	(96.5%)
         Other current financial assets	52,092	106,847	54,755	105.1%
         Contract assets	16,903	18,313	1,410	8.3%
         Current income tax receivable	135	107	(28)	(20.7%)
         Inventories	28,756	29,620	864	3.0%
         	338,325	389,005	50,680	15.0%
         Assets held for sale	2,788	712	(2,076)	(74.5%)
         Total current assets	341,113	389,717	48,604	14.2%
         Property, plant and equipment	497,728	528,344	30,616	6.2%
         Right-of-use assets	129,733	128,551	(1,182)	(0.9%)
         Goodwill	212,713	211,958	(755)	(0.4%)
         Other intangible assets	293,626	268,891	(24,735)	(8.4%)
         Investments in associates and joint ventures	-	-	-	-
         Deferred tax assets	114	201	87	76.3%
         Trade receivables over one year	25,149	26,513	1,364	5.4%
         Derivative financial instruments contracted
         with related parties	6,733	969	(5,764)	(85.6%)
         Other non-current financial assets	6,907	5,616	(1,291)	(18.7%)
         Contract assets	4,089	4,657	568	13.9%
         Other non-current assets	12,168	12,733	565	4.6%
         Total non-current assets	1,188,960	1,188,433	(527)	(0.0%)
         Total assets	1,530,073	1,578,150	48,077	3.1%

      4. ‌Consolidated Statement of Financial Position - Liabilities and Equity

      (HUF millions)	Dec 31, 2024 (unaudited)	Dec 31, 2025 (unaudited)	Change	Change (%)
      LIABILITIES
      Financial liabilities to related parties	26,734	614	(26,120)	(97.7%)
      Derivative financial instruments contracted
      with related parties	74	59	(15)	(20.3%)
      Lease liabilities	27,866	26,672	(1,194)	(4.3%)
      Corporate bonds	-	34,843	34,843	n.a.
      Trade payables	158,058	165,816	7,758	4.9%
      Other financial liabilities	10,093	10,291	198	2.0%
      Current income tax payable	5,942	16,821	10,879	183.1%
      Provisions	5,922	6,647	725	12.2%
      Contract liabilities	16,231	14,814	(1,417)	(8.7%)
      Other current liabilities	29,212	16,727	(12,485)	(42.7%)
      	280,132	293,304	13,172	4.7%
      Liabilities held for sale	-	-	-	n.a.
      Total current liabilities	280,132	293,304	13,172	4.7%
      Financial liabilities to related parties	60,059	57,756	(2,303)	(3.8%)
      Lease liabilities	119,174	116,138	(3,036)	(2.5%)
      Corporate bonds	69,183	34,676	(34,507)	(49.9%)
      Other financial liabilities	94,404	88,402	(6,002)	(6.4%)
      Deferred tax liabilities	17,669	18,430	761	4.3%
      Provisions	19,470	30,850	11,380	58.4%
      Contract liabilities	343	276	(67)	(19.5%)
      Other non-current liabilities	1,129	450	(679)	(60.1%)
      Total non-current liabilities	381,431	346,978	(34,453)	(9.0%)
      Total liabilities	661,563	640,282	(21,281)	(3.2%)
      EQUITY Common stock	93,862	93,862	-	0.0%
      Capital reserves	24,644	24,644	-	0.0%
      Treasury stock	(26,354)	(67,143)	(40,789)	(154.8%)
      Retained earnings	691,652	809,234	117,582	17.0%
      Accumulated other comprehensive income	39,353	34,268	(5,085)	(12.9%)
      Total equity of the owners of the parent	823,157	894,865	71,708	8.7%
      Non-controlling interests	45,353	43,003	(2,350)	(5.2%)
      Total equity	868,510	937,868	69,358	8.0%
      Total liabilities and equity	1,530,073	1,578,150	48,077	3.1%

      ‌3.11. Consolidated Statement of Cash Flows
      	1-12 months 2024	1-12 months 2025	Change	Change
      (HUF millions)	(unaudited)	(unaudited)		(%)
      Cash flows from operating activities
      Profit for the period	163,396	215,551	52,155	31.9%
      Depreciation and amortization	139,942	143,257	3,315	2.4%
      Income tax expense	30,827	38,070	7,243	23.5%
      Net financial result	29,236	20,920	(8,316)	(28.4%)
      Share of associates' and joint ventures' result	-	-	-	-
      Change in assets carried as working capital	(12,160)	(3,768)	8,392	69.0%
      Change in provisions	2,914	(115)	(3,029)	n.m.
      Change in liabilities carried as working capital	(7,738)	882	8,620	n.m.
      Income tax paid	(21,902)	(35,555)	(13,653)	(62.3%)
      Dividend received	111	154	43	38.7%
      Interest and other financial charges paid	(25,876)	(23,367)	2,509	9.7%
      Interest received	4,478	7,175	2,697	60.2%
      Other non-cash items	(917)	(974)	(57)	(6.2%)
      Net cash generated from operating activities	302,311	362,230	59,919	19.8%
      Cash flows from investing activities
      Payments for property plant and equipment (PPE) and intangible assets	(102,831)	(118,238)	(15,407)	(15.0%)
      Proceeds from disposal of PPE and intangible assets	1,081	2,138	1,057	97.8%
      Payments for subsidiaries and business units	(270)	(322)	(52)	(19.3%)
      Cash acquired through business combinations	-	-	-	-
      Proceeds from disposal of subsidiaries and business units	-	7,614	7,614	-
      Payments for other financial assets	-	(7,837)	(7,837)	-
      Proceeds from other financial assets	15,605	191	(15,414)	(98.8%)
      Payments for interests in associates and joint ventures	-	-	-	-
      Net cash used in investing activities	(86,415)	(116,454)	(30,039)	(34.8%)
      Cash flows from financing activities
      Dividends paid to Owners of the parent and Non-controlling interests	(47,955)	(97,336)	(49,381)	(103.0%)
      Proceeds from loans and other borrowings	174,164	143,221	(30,943)	(17.8%)
      Repayment of loans and other borrowings	(282,239)	(221,070)	61,169	21.7%
      Proceeds from corporate bonds	-	-	-	-
      Repayment of lease and other financial liabilities	(33,967)	(32,563)	1,404	4.1%
      Treasury share purchase	(22,363)	(40,789)	(18,426)	(82.4%)
      Net cash used in financing activities	(212,360)	(248,537)	(36,177)	(17.0%)
      Exchange differences on cash and cash equivalents	960	(820)	(1,780)	n.m.
      Change in cash and cash equivalents	4,496	(3,581)	(8,077)	n.m.
      Cash and cash equivalents, beginning of period	13,514	18,010	4,496	33.3%
      Cash and cash equivalents, end of period	18,010	14,429	(3,581)	(19.9%)

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

         HUF millions	Opening Balance at January 1, 2025	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 December 31, 2025
         						Proceeds from loans and borrowings	Repayment of loans and other borrowings	Repayment of lease and other financial liabilities	Other
         Related party loans	86,793	-	423	(3,696)	-	195,920	(221,070)	-	-	58,370
         Derivatives from related parties	74	-	-	3,166	(3,181)	-	-	-	-	59
         Spectrum fee payable	96,047	-	(3,743)	3,743	-	-	-	(4,929)	-	91,118
         Bonds	69,183	-	(128)	464	-	-	-	-	-	69,519
         Lease liabilities	147,040	-	(7,459)	28,941	-	-	-	(25,712)	-	142,810
         Debtors overpayment	1,490	-	(103)	-	-	-	-	-	-	1,387
         Other financial liabilities	6,960	-	(1,244)	2,245	-	-	-	(1,773)	-	6,188
         - Less cash and cash equivalent	(18,010)	3,581	-	-	-	-	-	-	-	(14,429)
         - Less other current financial assets and
         derivative financial instruments	(53,896)	-	(119)	2,963	(3,010)	(52,699)	-	(149)	-	(106,910)
         Net debt	335,681	3,581	(12,373)	37,826	(6,191)	143,221	(221,070)	(32,563)	-	248,112

         Treasury share purchase (40,789)

         Dividends paid to Owners of the parent and Non-

         controlling interest (97,336)

         Net Cash used in financing activities

         (248,537)

         Shares of common stock outstanding

         885,759,569

      2. ‌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, 2024

         971,558,867

         97,156

         25,509

         (18,600)

         585,866

         32,918

         618

         723,467

         42,202

         765,669

         Dividend declared to Owners of the parent	-	-	-	-	(41,561)	-	-	(41,561)	-	(41,561)
         Dividend declared to Non-controlling interests	-	-	-	-	-	-	-	-	(6,077)	(6,077)
         Treasury share purchase	-	-	-	(22,363)	-	-	-	(22,363)	-	(22,363)
         Capital decrease with cancellation of treasury share	(32,941,370)	(3,294)	(865)	14,609	(10,450)	-	-	-	-	-
         Transactions with owners in their capacity as owners	(32,941,370)	(3,294)	(865)	(7,754)	(52,011)	-	-	(63,924)	(6,077)	(70,001)
         Other comprehensive income	-	-	-	-	-	4,997	820	5,817	3,629	9,446
         Profit or loss	-	-	-	-	157,797	-	-	157,797	5,599	163,396
         Total comprehensive income	-	-	-	-	157,797	4,997	820	163,614	9,228	172,842
         Balance at December 31, 2024	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	-	-	-	-	(90,858)	-	-	(90,858)	-	(90,858)
         Dividend declared to Non-controlling interests	-	-	-	-	-	-	-	-	(6,772)	(6,772)
         Treasury share purchase	-	-	-	(40,789)	-	-	-	(40,789)	-	(40,789)
         Capital decrease with cancellation of treasury share	-	-	-	-	-	-	-	-	-	-
         Transactions with owners in their capacity as owners	-	-	-	(40,789)	(90,858)	-	-	(131,647)	(6,772)	(138,419)
         Other comprehensive income	-	-	-	-	-	(5,060)	(25)	(5,085)	(2,689)	(7,774)
         Profit or loss	-	-	-	-	208,440	-	-	208,440	7,111	215,551
         Total comprehensive income	-	-	-	-	208,440	(5,060)	(25)	203,355	4,422	207,777
         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
         Of which treasury stock	(52,857,928)

      3. ‌Exchange rate information

         	Q4 2024	Q4 2025	Change (%)	1-12 months 2024	1-12 months 2025	Change (%)
         HUF/EUR beginning of period	397.56	391.11	(1.6%)	382.78	410.09	7.1%
         HUF/EUR period-end	410.09	385.40	(6.0%)	410.09	385.40	(6.0%)
         HUF/EUR cumulative monthly average	408.46	385.92	(5.5%)	396.20	397.78	0.4%
         HUF/MKD beginning of period	6.47	6.34	(2.0%)	6.22	6.67	7.2%
         HUF/MKD period-end	6.67	6.27	(6.0%)	6.67	6.27	(6.0%)
         HUF/MKD cumulative monthly average	6.64	6.26	(5.7%)	6.44	6.46	0.3%

         Total Segment Capex AL excl. spectrum licenses	43,646	52,632	113,103	135,087
         Measurement differences to Group Capex AL excl. spectrum licenses	(120)	5	200	5
         Total Capex AL excl. spectrum licenses of the Group	43,526	52,637	113,303	135,092

      4. ‌Segment information

         HUF millions	Q4 2024	Q4 2025	1-12 months 2024	1-12 months 2025
         Total MT-Hungary revenue	234,729	237,707	885,636	902,269
         Less: MT-Hungary revenue from other segments	(36)	(27)	(114)	(116)
         MT-Hungary revenue from external customers	234,693	237,680	885,522	902,153
         Total North Macedonia revenue	20,696	21,059	78,585	81,329
         Less: North Macedonia revenue from other segments	(13)	(12)	(54)	(43)
         North Macedonia revenue from external customers	20,683	21,047	78,531	81,286
         Total consolidated revenue of the segments	255,376	258,727	964,053	983,439
         Measurement differences to Group revenue	1,134	(615)	3,425	500
         Total revenue of the Group	256,510	258,112	967,478	983,939
         Segment results (EBITDA) Hungary	77,088	86,413	329,979	382,718
         North Macedonia	8,154	8,453	32,797	35,248
         Total EBITDA of the segments	85,242	94,866	362,776	417,966
         Measurement differences to Group EBITDA	242	(22)	625	(168)
         Total EBITDA of the Group	85,484	94,844	363,401	417,798
         Segment Capex AL excl. spectrum licenses Hungary	36,321	45,596	99,490	118,070
         North Macedonia	7,325	7,036	13,613	17,017

      5. ‌Fair value of financial instruments - financial assets

         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

         December 31, 2024 HUF millions	Financial assets				Carrying amount	Fair value
         	Amortized cost	FVOCI (Level 1)	FVTPL (Level 2)	FVTPL (Level 3)

         Cash and cash equivalents	18,010	-	-	-	18,010	18,010
         Bank deposits with original maturities over 3 months	-	-	-	-	-	-
         Cash-pool receivables	51,170	-	-	-	51,170	51,170
         Trade receivables within one year	211,411	-	-	-	211,411	211,411
         Trade receivables over one year	25,149	-	-	-	25,149	23,281
         Derivative financial instruments contracted with related parties	-	-	8,537	-	8,537	8,537
         Finance lease receivable	1,181	-	-	-	1,181	1,113
         Equity instruments	-	3,445	-	1,400	4,845	4,845
         Other current receivables	576	-	-	-	576	576
         Other non-current receivables	1,227	-	-	-	1,227	1,218
         Total	308,724	3,445	8,537	1,400	322,106	320,161

      6. ‌Fair value of financial instruments - financial liabilities

         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

         December 31, 2024 HUF millions	Financial liabilities			Carrying amount	Fair value
         	Measured at amortized cost	FVTPL (Level 2)	FVTPL (Level 3)
         Financial liabilities to related parties	86,793	-	-	86,793	91,830
         Derivative financial instruments contracted with related parties	-	74	-	74	74
         Trade payables	158,058	-	-	158,058	158,058
         Frequency fee payable	96,047	-	-	96,047	72,278
         Bonds	69,183	-	-	69,183	61,444
         Lease liabilities	147,040	-	-	147,040	134,071
         Debtors' overpayment	1,490	-	-	1,490	1,490
         Other current liabilities	3,667	-	-	3,667	3,667
         Other non-current liabilities	3,293	-	-	3,293	3,195
         Total	565,571	74	-	565,645	526,107

      7. ‌EBITDA reconciliation

         (HUF millions)

         Q4 2024 MT Group

         Q4 2024 MT-Hungary

         Q4 2024 North Macedonia

         Q4 2025 MT Group

         Q4 2025 MT-Hungary

         Q4 2025 North Macedonia

         EBITDA 85,484 77,088 8,154 94,844 86,413 8,453

         IFRS 16 related D&A IFRS 16 related Interest	(5,986) (1,857)	(5,728) (1,813)	(258) (44)	(5,843) (1,883)	(5,587) (1,846)	(256) (37)
         EBITDA after lease	77,641	69,547	7,852	87,118	78,980	8,160

         Other D&A (unallocated) Other Financial result (unallocated)	(28,811) (3,264)	n.a. n.a.	n.a. n.a.	(30,525) (2,687)	n.a. n.a.	n.a. n.a.
         Profit before tax	45,566	n.a.	n.a.	53,906	n.a.	n.a.

         (HUF millions)

         1-12 months 2024 MT Group

         1-12 months 2024 MT-Hungary

         1-12 months 2024 North Macedonia

         1-12 months 2025 MT Group

         1-12 months 2025 MT-Hungary

         1-12 months 2025 North Macedonia

         EBITDA 363,401 329,979 32,797 417,798 382,718 35,248

         IFRS 16 related D&A IFRS 16 related Interest	(23,256) (7,068)	(22,207) (6,907)	(1,049) (161)	(23,576) (7,459)	(22,532) (7,302)	(1,044) (157)
         EBITDA after lease	333,077	300,865	31,587	386,763	352,884	34,047

         Other D&A (unallocated) Other Financial result (unallocated)	(116,686) (22,168)	n.a. n.a.	n.a. n.a.	(119,681) (13,461)	n.a. n.a.	n.a. n.a.
         Profit before tax	194,223	n.a.	n.a.	253,621	n.a.	n.a.

      8. ‌Adjusted profit attributable to owners of the parent reconciliation

         (HUF millions)	Q4 2024	Q4 2025	Change	Change (%)	1-12 months 2024	1-12 months 2025	Change	Change (%)
         Profit attributable to the owners of the parent	36,253	42,903	6,650	18.3%	157,797	208,440	50,643	32.1%
         Changes in depreciation and amortization	-	-	-	-	-	-	-	-
         Changes in net financial result*	(1,667)	(1,135)	532	31.9%	4,835	(1,033)	(5,868)	n.m.
         Changes in income tax	-	-	-	-	-	-	-	-
         Total adjusting factors	(1,667)	(1,135)	532	31.9%	4,835	(1,033)	(5,868)	n.m.
         Adjusted profit attributable to owners of the parent	34,586	41,768	7,182	20.8%	162,632	207,407	44,775	27.5%

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

      9. ‌Capex from Consolidated Statement of Cash Flows

         (HUF millions)

         1-12 months 2024 MT Group

         1-12 months 2025 MT Group

         Payments for PPE and intangible assets Less spectrum payments	102,831 -	118,238 -
         Payments for PPE and intangible assets excl. spectrum payments	102,831	118,238
         +/- Cash adjustments	10,472	16,854
         Capex AL excl. spectrum	113,303	135,092

         ROU capex Spectrum capex	32,741 -	25,976 -
         Capex	146,044	161,068

      10. ‌Capex from Consolidated Statement of Financial Position

      (HUF millions)

      Q4 2024 MT Group

      Q4 2024 MT-Hungary*

      Q4 2024 North Macedonia*

      Q4 2025 MT Group

      Q4 2025 MT-Hungary*

      Q4 2025 North Macedonia*

      Capex AL excl. spectrum licenses ROU capex Spectrum capex	43,526 11,405 -	36,199 11,048 -	7,327 357 -	52,637 6,703 -	45,601 5,843 -	7,036 860 -
      Capex	54,931	47,247	7,684	59,340	51,444	7,896

      (HUF millions)

      1-12 months 2024 MT Group

      1-12 months 2024 MT-Hungary*

      1-12 months 2024 North Macedonia*

      1-12 months 2025 MT Group

      1-12 months 2025 MT-Hungary*

      1-12 months 2025 North Macedonia*

      Capex AL excl. spectrum licenses ROU capex Spectrum capex	113,303 32,741 -	99,435 31,828 -	13,868 913 -	135,092 25,976 -	118,075 24,516 -	17,017 1,460 -
      Capex	146,044	131,263	14,781	161,068	142,591	18,477

      *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 relating to future events.

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, February 25, 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, 2024, 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.