Magyar Telekom stock balances Q3 growth with weaker cash flow

Published on 11/07/2026 at 12:01 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Magyar Telekom stock enters the weekend after stronger third-quarter operating results. Management still expects to meet its 2026 targets despite weaker cash generation.

Growth Meets Cash Flow Pressure

Third-quarter revenue and adjusted earnings rose as service demand, fee adjustments and IT sales supported operations.
Nine-month free cash flow declined as investment, working capital and tax payments increased.
Management maintained its 2026 targets and expects stronger fourth-quarter EBITDA momentum.

Magyar Telekom, HU0000073507, Illustration mit AI erstellt.

Magyar Telekom reported stronger third-quarter operating results on November 4, while lower nine-month free cash flow kept investment and working capital in focus. The company also held its earnings call on November 5, outlining the factors supporting its full-year targets.

Service Demand Supports Growth

According to Magyar Telekom, group service revenue increased 5.2 percent year on year in the third quarter. Total revenue rose 7.4 percent to HUF 261.0 billion, supported by telecommunications services, IT activity and equipment sales. EBITDA AL increased 6.6 percent, while adjusted net income rose 11.3 percent.

Mobile revenue grew 6.5 percent to HUF 154.2 billion. The company attributed the performance to stronger data demand, customer activity and the inflation-linked fee adjustment introduced on July 1. The earnings release said the adjustment supported service revenue growth alongside higher demand for data and broadband services.

Cash Generation Remains The Drag

Free cash flow excluding spectrum licenses reached HUF 146.3 billion in the first nine months, down 18.7 percent from a year earlier. Higher capital expenditure, working capital requirements and income-tax payments outweighed the benefit from improved profitability, while proceeds from subsidiary sales recorded in the prior-year period did not recur.

On the November 5 earnings call, Chief Financial Officer Andre Lenz said management continued to expect at least HUF 200 billion of 2026 free cash flow excluding spectrum. He also pointed to a partial reversal of working-capital outflows and stronger fourth-quarter EBITDA as support for the outlook. Management expects some SI/IT contributions to be more modest in the fourth quarter.