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

About this update from Magyar Telekom Telecommunications Plc

Rékasi Tibor André Lenz MAGYAR TELEKOM QUARTERLY FINANCIAL REPORT 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 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 9 Contingencies and commitments 9 Material events 10 Segment reports 10 MT-Hungary 11 North Macedonia 12 APPENDIX 14 Basis of preparation and initial application, interpretations and amendments of IFRS Accounting Standards 14 Macroeconomic environment and critical accounting estimates, climate disclosures 14 Consolidated Statement of Profit or Loss and Other Comprehensive Income - quarterly year-on-year comparison 15 Consolidated Statement of Profit or Loss and Other Comprehensive Income - year-to-date comparison 16 Revenue breakdown - quarterly year-on-year comparison 17 Revenue breakdown - year-to-date comparison 17 Operating expenses breakdown - quarterly year-on-year comparison 18 Operating expenses breakdown - year-to-date comparison 18 Consolidated Statement of Financial Position - Assets 19 Consolidated Statement of Financial Position - Liabilities and Equity 20 Consolidated Statement of Cash Flows 21 Net debt reconciliation to changes in Statement of Cash Flows 22 Consolidated Statement of Changes in Equity 23 Exchange rate information 24 Segment information 24 Fair value of financial instruments - financial assets 25 Fair value of financial instruments - financial liabilities 25 EBITDA reconciliation 26 Adjusted profit attributable to owners of the parent reconciliation 26 Capex from Consolidated Statement of Cash Flows 26 Capex from Consolidated Statement of Financial Position 27 DECLARATION 28 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) 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 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) 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. ‌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 capita l, 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 ‌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. ‌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 2025. ‌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 ‌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 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. ‌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. ‌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, 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. ‌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. ‌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% ‌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% ‌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% ‌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% ‌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% ‌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%) ‌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 ‌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) ‌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 ‌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 ‌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 ‌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 ‌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. ‌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 ‌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 ‌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. ‌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.

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