Magyar Telekom stock posts Q3 growth as free cash flow drops

Magyar Telekom reported stronger operating performance for the third quarter and first nine months of 2026 on Wednesday, November 4. The company's investor release said the figures were unaudited and prepared under IFRS.

Group service revenue rose 5.2 percent year-on-year in the third quarter, supported by continued demand for data and broadband services. The inflation-based fee adjustment introduced on July 1 also supported the increase. Total revenue grew 7.4 percent, helped by telecommunications services as well as stronger IT and equipment sales.

Revenue growth broadens across operations

Gross profit increased 6.0 percent from the prior-year quarter, while EBITDA AL advanced 6.6 percent. Adjusted net income rose 11.3 percent as stronger operating performance more than offset higher financial expenses. Capital expenditure after leases and excluding spectrum licenses increased 5.2 percent year-on-year in the quarter, reflecting higher network investment.

Chief Executive Tibor Rékasi said the subscriber base continued to expand and that the fee adjustment supported average revenue per user. He also said the company had begun a comprehensive transformation of its customer-service operations, with priorities including better service quality, greater operational agility and more personalized offers.

Cash generation remains the pressure point

Free cash flow excluding spectrum licenses reached HUF 146.3 billion in the first nine months, down 18.7 percent from the same period a year earlier. Magyar Telekom attributed the decline to higher working-capital requirements, increased capital expenditure and income-tax payments, as well as the absence of proceeds from subsidiary sales recorded in the previous year.

The figures leave cash conversion as a key issue for investors. Stronger service demand and operating earnings support the business outlook, while network investment and working-capital needs can limit the cash available for balance-sheet flexibility and shareholder distributions. The customer-service transformation adds an operational execution issue to the financial picture.

Magyar Telekom stock traded at 7.90 euros on Lang & Schwarz at 11:44 CET on Friday, November 6, 2026.

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