The following is a summary of the Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság (MYTAY) Q4 2023 Earnings Call Transcript:
Financial Performance:
Magyar Telekom reported a year-on-year growth in EBITDA after leases of 17.4% in Q4 2023 and 16.4% in 2023.
Gross profit increased by 15.8% in Q4, primarily due to sustained commercial momentum in telecommunication services and the Hungarian inflation-based fee adjustment, exceeding HUF70 billion in 2023.
The company incurred extra expenses of over HUF5 billion due to an increased tax on supplementary telecommunications.
Adjusted net income grew by 48.7% year-on-year, reaching HUF93.6 billion for the full year 2023.
Free cash flow generation, excluding spectrum-related payments, was comparatively higher than the base period by HUF35.9 billion, a 70% increase.
Business Progress:
Revenue growth was driven by the expansion of their subscriber base and higher usage levels in Hungary and North Macedonia.
Growth noted across all service categories, particularly in broadband and pay TV services.
The company continued to upgrade its fixed/mobile networks in Hungary to meet growing data demand, with mobile network showing 80% readiness and outdoor 5G coverage reaching 65%.
Added over 200,000 new gigabit-capable access points to the fixed network, catering to over 3.6 million households and businesses.
Implemented a strategy to mitigate energy price fluctuations and an energy mapping system reduced electricity consumption by 9%.
The company plans to consolidate its household customer base and enhance the value of services offered for the future.
For 2024, anticipates a revenue growth of 5% to 10% and a 20% to 25% growth in EBITDA after leases, with plans to expand the gigabit network with at least 200,000 additional access points.
The Board of Directors recommends a total dividend payment of HUF41.56 billion for the 2023 financial year, and plans for a buyback value of up to HUF24 billion.
More details: MAGYAR TELEKOM TELECOMMUNICATIONS SPON ADR REP 5 SHS HUF100 IR
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