Magyar Telekom Telecommunications Plc

Quarterly Report • Aug 6, 2025

Rékasi Tibor André Lenz

MAGYAR TELEKOM

HALF-YEAR REPORT

ANALYSIS OF THE FINANCIAL STATEMENTS FOR THE SECOND QUARTER ENDED JUNE 30, 2025

1.		HIGHLIGHTS	3
2.		MANAGEMENT REPORT	6
	2.1.	Consolidated IFRS Group Results6
	2.1.1	Group Profit and Loss6
	2.1.2	Group Cash Flows8
	2.1.3	Consolidated Statements of Financial Position 9
	2.1.4	Related party transactions 10
	2.1.5	Contingencies and commitments 10
	2.1.6	Material events 10
	2.2.	Segment reports10
	2.2.1	MT-Hungary11
	2.2.2	North Macedonia13
	2.3.	Sustainability 14
3.		APPENDIX15
	3.1.	Basis of preparation and initial application, interpretations and amendments of IFRS Accounting Standards 15
	3.2.	Macroeconomic environment and critical accounting estimates, climate disclosures15
	3.3.	Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income – quarterly year-on-year
		comparison 16
	3.4.	Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income – year-to-date comparison17
	3.5.	Revenue breakdown – quarterly year-on-year comparison18
	3.6.	Revenue breakdown – year-to-date comparison18
	3.7.	Operating expenses breakdown – quarterly year-on-year comparison19
	3.8.	Operating expenses breakdown – year-to-date comparison19
	3.9.	Interim Consolidated Statement of Financial Position - Assets20
	3.10.	Interim Consolidated Statement of Financial Position – Liabilities and Equity21
	3.11.	Interim Consolidated Statement of Cash Flows 22
	3.12.	Net debt reconciliation to changes in Statement of Cash Flows 23
	3.13.	Interim Consolidated Statement of Changes in Equity 24
	3.14.	Exchange rate information 25
	3.15.	Segment information 25
	3.16.	Fair value of financial instruments – financial assets26
	3.17.	Fair value of financial instruments – financial liabilities26
	3.18.	EBITDA reconciliation 27
	3.19.	Adjusted profit attributable to owners of the parent reconciliation27
	3.20.	Capex from Interim Consolidated Statement of Cash Flows 27
	3.21.	Capex from Interim Consolidated Statement of Financial Position28
4.		DECLARATION 29

Company name:	Magyar Telekom Plc.	Company address: E-mail address:	H-1097 Budapest Könyves Kálmán krt. 36. investor.relations@telekom.hu
IR contacts:	Position:	Telephone:	E-mail address:
Diána Párkányi-Várkonyi Rita Walfisch Gabriella Pászti	Capital Market Relations Hub Lead Investor Relations manager Investor Relations manager	+36-1-481-7676 +36-1-457-6084 +36-1-458-0332	varkonyi.diana.annamaria@telekom.hu walfisch.rita@telekom.hu paszti.gabriella@telekom.hu

1. HIGHLIGHTS

	Q2 2024	Q2 2025	Change	1-6 months 2024	1-6 months 2025	Change
(HUF millions, except ratios)			(%)			(%)
Revenue	240,607	241,291	0.3%	464,836	482,923	3.9%
Operating profit	61,245	73,032	19.2%	110,585	142,948	29.3%
Profit attributable to:
Owners of the parent	43,361	56,040	29.2%	77,040	110,204	43.0%
Non-controlling interests	1,280	1,687	31.8%	2,617	3,190	21.9%
	44,641	57,727	29.3%	79,657	113,394	42.4%
Adjusted profit attributable to owners of the parent	44,000	55,865	27.0%	82,054	110,437	34.6%
Gross profit	151,467	153,884	1.6%	286,925	303,894	5.9%
EBITDA	97,150	109,348	12.6%	181,743	214,574	18.1%
EBITDA AL	89,808	101,546	13.1%	166,775	199,034	19.3%
Free cash flow				36,694	85,997	134.4%
Free cash flow excl. spectrum licenses				36,694	85,997	134.4%
Capex after lease	26,564	27,688	4.2%	46,303	49,183	6.2%
Capex after lease excl. spectrum licenses	26,564	27,688	4.2%	46,303	49,183	6.2%
Number of employees (closing full equivalent)				6,747	6,587	(2.4%)
				Dec 31, 2024	June 30, 2025	Change
						(%)
Net debt				335,681	377,368	12.4%
Net debt / EBITDA				0.92	0.95	n.a.

• Group revenue remained broadly stable year-on-year (YoY) in Q2 2025, as a continued increase in service revenues driven by sustained demand for data and connectivity was offset by lower System Integration and IT ('SI/IT') revenues, declines in equipment sales and the impact of ViDaNet fixed-line subsidiary deconsolidation.
• Gross profit improved by 1.6% YoY in Q2 2025, reflecting higher telecommunication service revenues coupled with lower bad debt and telecom tax expenses.
• EBITDA AL increased by 13.1% year-on-year in Q2 2025, thanks to improvements in gross profit, the absence of the supplementary telecommunication tax expense as well as the one-off gain from the sale of ViDaNet.
• Adjusted net income rose to HUF 55.9 billion (+27.0% YoY) in Q2 2025, and to HUF 110.4 billion (+34.6% YoY) in H1 2025, driven by the higher EBITDA contribution.
• Capex after lease increased by 4.2% year-on-year to HUF 27.7 billion in Q2 2025, reflecting increased network related investments in both countries of operation coupled with temporarily higher TV-content capitalization costs in North Macedonia.
• Free cash flow increased by HUF 49.3 billion YoY to HUF 86.0 billion in H1 2025, driven by robust profitability and positive movements in receivables as well as the cash inflow from the sale of ViDaNet.
• During Q2 2025, Magyar Telekom completed a dividend payment of HUF 90.9 billion and returned HUF 39.1 billion to shareholders through share buybacks.
• Despite the dividend payment and share buybacks, net debt to EBITDA remained at a healthy level of 0.95x as of end-June 2025.

Tibor Rékasi, Magyar Telekom CEO, commented:

"During the second quarter of 2025, we made significant progress toward our strategic goal of delivering a gigabit experience across both our fixed and mobile networks to an increasing number of customers.

We further expanded the coverage of our optical network and carried out upgrades on our mobile network, boosting capacity and enabling our 5G network to reach 86% population-based coverage. Such investments in our network infrastructure remain essential to capturing growth and meeting the needs of more customers. To showcase the benefits of the upgraded networks, we made both the gigabit fixed network and the 5G network available free of charge to all eligible customers during the summer months.

Our consistent operational performance is clearly reflected in our financial results for the quarter. We continued to deliver strong profit uplift with EBITDA AL up by 13.1% year-on-year and adjusted net income up by 27%, allowing us to upgrade our full-year guidance. We now expect EBITDA AL to reach the upper end of our previously guided range for the year. We anticipate adjusted net income and free cash flow to reach at least HUF 200 billion."

Guidance:

	2024 Actual	Guidance for 2025	Updated guidance for 2025
Revenue	HUF 967.5 billion	1% - 3% growth	1% - 3% growth
EBITDA AL	HUF 333.1 billion	12% -15% growth	ca. 15% growth
Adjusted net income	HUF 162.6 billion	ca. HUF 190 billion	at least HUF 200 billion
FCF1	HUF 165.1 billion	ca. HUF 180 billion	at least HUF 200 billion

¹Excluding spectrum licenses

2. MANAGEMENT REPORT

2.1. Consolidated IFRS Group Results

2.1.1Group Profit and Loss

	Q2 2024	Q2 2025	Change	Change	1-6 months	1-6 months	Change	Change
(HUF millions)				(%)	2024	2025		(%)
Mobile revenue	140,647	143,240	2,593	1.8%	271,556	283,793	12,237	4.5%
Fixed line revenue	76,886	76,547	(339)	(0.4%)	149,457	154,620	5,163	3.5%
SI/IT revenue	23,074	21,504	(1,570)	(6.8%)	43,823	44,510	687	1.6%
Revenue	240,607	241,291	684	0.3%	464,836	482,923	18,087	3.9%
Direct costs	(89,140)	(87,407)	1,733	1.9%	(177,911)	(179,029)	(1,118)	(0.6%)
Gross profit	151,467	153,884	2,417	1.6%	286,925	303,894	16,969	5.9%
Indirect costs	(54,317)	(44,536)	9,781	18.0%	(105,182)	(89,320)	15,862	15.1%
EBITDA	97,150	109,348	12,198	12.6%	181,743	214,574	32,831	18.1%
Depreciation and amortization	(35,905)	(36,316)	(411)	(1.1%)	(71,158)	(71,626)	(468)	(0.7%)
Operating profit	61,245	73,032	11,787	19.2%	110,585	142,948	32,363	29.3%
Net financial result	(7,900)	(5,638)	2,262	28.6%	(15,705)	(10,807)	4,898	31.2%
Share of associates' and joint ventures' results	-	-	-	-	-	-	-	n.a.
Profit before income tax	53,345	67,394	14,049	26.3%	94,880	132,141	37,261	39.3%
Income tax	(8,704)	(9,667)	(963)	(11.1%)	(15,223)	(18,747)	(3,524)	(23.1%)
Profit for the period	44,641	57,727	13,086	29.3%	79,657	113,394	33,737	42.4%
Profit attributable to non-controlling interests	1,280	1,687	407	31.8%	2,617	3,190	573	21.9%
Profit attributable to owners of the parent	43,361	56,040	12,679	29.2%	77,040	110,204	33,164	43.0%

Total revenue remained broadly unchanged year-on-year, amounting to HUF 241.3 billion in Q2 2025. Service revenue continued to increase driven by the sustained growth of mobile data and fixed broadband revenues. These increases were mostly offset by the YoY decline in SI/IT revenue and lower equipment sales.

• Mobile revenue rose by 1.8% year-on-year to HUF 143.2 billion in Q2 2025, driven by the continued growth in mobile data usage.
  • Voice retail revenue decreased by 2.4% year-on-year to HUF 35.3 billion in Q2 2025, reflecting lower average prices in both operations.
  • Voice wholesale revenue remained broadly stable year-on-year at HUF 1.9 billion in Q2 2025.
  • Data revenue rose by 8.4% year-on-year to HUF 62.0 billion in Q2 2025, driven by the continued growth in usage levels.
  • SMS revenue was 2.4% lower year-on-year, amounting to HUF 7.4 billion in Q2 2025, due to some decline in usage among the residential customer base.
  • Mobile equipment revenue was down 3.3% year-on-year, amounting to HUF 31.3 billion in Q2 2025, reflecting lower sales volumes and decline in average handset prices in the Hungarian operation.
  • Other mobile revenue decreased by 2.6% year-on-year to HUF 5.3 billion in Q2 2025, driven by lower interest income in relation to earlier periods' equipment sale on installment partly offset by higher visitor revenue.
• Fixed line revenue was moderately lower year-on-year, amounting to HUF 76.5 billion in Q2 2025, as increases in fixed broadband revenue was offset by lower voice retail and TV revenues.
  • Voice retail revenue decreased by 8.5% year-on-year to HUF 8.6 billion in Q2 2025, driven by the erosion in the customer base and lower usage level in Hungary.
  • Broadband retail revenue increased by 4.5% year-on-year to HUF 29.9 billion in Q2 2025, as the positive impact of the continued organic growth in the customer base coupled with further increases in ARPU levels at both operations offset the negative impact stemming from the deconsolidation of ViDaNet.
  • TV revenue was lower by 5.2% year-on-year, amounting to HUF 19.7 billion in Q2 2025, due to the combined result of underlying price erosion and a drop in the customer base. 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 growth in the IPTV user base.

• Fixed equipment revenue was broadly unchanged year-on-year, amounting to HUF 5.0 billion in Q2 2025.
• Data, wholesale and other fixed line revenue was flat year-on-year at HUF 13.5 billion in Q2 2025, as the continued increase in leased line fixed internet service revenue at the Hungarian operation was offset by the lower TV-content resale revenue in North Macedonia.
• System Integration and IT revenue was lower by 6.8% year-on-year, amounting to HUF 21.5 billion in Q2 2025, reflecting different seasonal dynamics of the projects in Hungary.

Direct costs were lower by 1.9% year-on-year, atHUF 87.4 billion in Q2 2025, thanks to lower SI/IT service-related costs and decline in bad debt and telecom tax expenses.

• Interconnect costs remained stable year-on-year at HUF 4.9 billion in Q2 2025.
• SI/IT service-related costs were lower by 10.5% YoY, amounting to HUF 13.8 billion in Q2 2025, in line with the year-on-year lower project volumes.
• Impairment losses and gains on financial assets and contract assets (bad debt expenses) improved by 12.4% YoY to HUF 2.7 billion in Q2 2025, thanks to more favorable aging of the receivables, especially related to some major partners, compared to the base period.
• Telecom tax declined by 6.3% year-on-year, amounting to HUF 6.0 billion in Q2 2025, reflecting primarily the lower mobile voice traffic generated by business customers.
• Other direct costs were up by 1.1% year-on-year at HUF 60.0 billion in Q2 2025, primarily driven by higher roaming outpayments.

Gross profit improved by 1.6% year-on-year to HUF 153.9 billion in Q2 2025, thanks to improvement in service revenue contribution coupled with lower bad debt and telecom tax expenses.

Indirect costs were lower by 18.0% or HUF 9.8 billion year-on-year, at HUF 44.5 billion in Q2 2025, reflecting the positive impact from the elimination of the supplementary telecommunication tax and the higher operating income. These more than offset the increase in employee-related expenses.

• Employee-related expenses increased by 6.7% year-on-year, amounting to HUF 26.6 billion in Q2 2025, primarily as a result of wage increase in effect from March 2025 at the Hungarian operation and from April 2025 at the North Macedonian operation.
• Supplementary telecommunication tax was eliminated effective from January 1, 2025, resulting in a HUF 9.1 billion improvement year-on-year in Q2 2025.
• Other operating expenses (excluding supplementary telecommunication tax) increased moderately year-on-year, amounting to HUF 21.4 billion in Q2 2025, as the reduction in energy expenses coupled with the positive impacts from efficiency measures could mostly compensate for the inflationary price pressure impacting several cost lines.
• Other operating income amounted to HUF 3.5 billion in Q2 2025, as a result of the ca. HUF 1.5 billion gain in relation to the sale of ViDaNet coupled with one-off gains on real estate sales.

EBITDA increased by 12.6% year-on-year to HUF 109.3 billion in Q2 2025, driven by the improvement in gross profit coupled with lower indirect costs; EBITDA AL was up by 13.1% year-on-year to HUF 101.5 billion in Q2 2025.

Depreciation and amortization ('D&A') expenses were moderately higher year-on-year, amounting to HUF 36.3 billion in Q2 2025, as the IT simplification measures in Hungary led to shortening of useful life of some software.

Profit for the period rose by 29.3% year-on-year to HUF 57.7 billion in Q2 2025, driven primarily by the growth in EBITDA.

• Net financial resultimproved from a loss of HUF 7.9 billion in Q2 2024 to a loss of HUF 5.6 billion in Q2 2025. Year-on-year lower net interest expense was primarily attributable to a reduction in the overall debt levels, lower average interest rates as well as higher interest received related to the liquidity balances. The favorable change in other finance expense year-on-year primarily reflects the more favorable FX change-related results.
• Income tax expenses were up by 11.1% year-on-year at HUF 9.7 billion in Q2 2025, driven by the year-on-year higher profit levels.

Profit attributable to non-controlling interests increased by 31.8% year-on-year to HUF 1.7 billion in Q2 2025, reflecting YoY higher profit generation at the North Macedonian subsidiary.

Adjusted net income (adjusted profit attributable to owners of the parent) was up at HUF 55.9 billion in Q2 2025 and increased to an overall HUF 110,4 billion in H1 2025.

2.1.2Group Cash Flows

HUF millions	1-6 months 2024	1-6 months 2025	Change
Net cash generated from operating activities	105,520	149,187	43,667
Net cash used in investing activities	(37,674)	(51,738)	(14,064)
Less: (Payments for) / Proceeds from other financial assets	(12,960)	5,779	18,739
Investing cash flow excluding Payments for / Proceeds
from other financial assets - net	(50,634)	(45,959)	4,675
Repayment of lease and other financial liabilities	(18,192)	(17,231)	961
Free cash flow	36,694	85,997	49,303
(Payments for) / Proceeds from other financial assets - net	12,960	(5,779)	(18,739)
Proceeds from / (Repayment of) loans and other borrowings - net	12,600	47,883	35,283
Dividends paid to Owners of the parent and Non-controlling interests	(41,475)	(90,863)	(49,388)
Proceeds from corporate bonds	-	-	-
Treasury share purchase	(22,363)	(40,789)	(18,426)
Exchange differences on cash and cash equivalents	319	(393)	(712)
Change in cash and cash equivalents	(1,265)	(3,944)	(2,679)

Free cash flow (FCF) amounted to HUF 86.0 billion cash inflow in H1 2025 (H1 2024: HUF 36.7 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 149.2 billion in H1 2025, compared to cash inflow of HUF 105.5 billion in H1 2024, attributable to the reasons outlined as follows:

• HUF 32.8 billion positive impact due to higher EBITDA in H1 2025.
• HUF 27.0 billion positive change in active working capital, mainly as a result of:
  • favorable change in receivables from taxes not related to income taxes (positive impact: ca. HUF 12.2 billion) mainly due to elimination of supplementary telecommunication tax from 2025,
  • favorable change in net portfolio of installment receivables in H1 2025 compared to H1 2024 (positive impact ca. HUF 7.2 billion) as a result of lower handset-related sales volume,
  • favorable change in the development of balances of telecommunication customer related trade receivables in Hungary (positive impact: ca. HUF 4.5 billion) thanks to improvement in the aging of receivables,
  • favorable change in the trade receivables (positive impact: ca. HUF 2.1 billion) in North Macedonia boosted by the significant effect of the strengthening of HUF vs MKD in H1 2025 as opposed to the weakening of HUF vs MKD in H1 2024,
  • different project seasonality led to favorable changes in SI/IT inventories (positive impact: ca. HUF 1.4 billion) in H1 2025 compared to H1 2024 in Hungary.
• HUF 1.5 billion negative change in provisions, mainly reflecting higher employee related provisions in H1 2025 compared to H1 2024.
• HUF 9.0 billion negative change in passive working capital, primarily driven by:
  • unfavorable change in liabilities to employees (negative impact: ca. HUF 6.9 billion) driven by different payment dynamics of monthly wage transfer in H1 2025 compared to H1 2024,
  • unfavorable change in the balances of handset, SI/IT, invoiced and non-invoiced trade creditors mainly in Hungary (negative impact: ca. HUF 5.3 billion) due to different seasonality in H1 2025 compared to H1 2024,
  • favorable change in balance of taxes not related to income taxes (positive impact: ca. HUF 1.6 billion) mainly due to increase of balance of value added tax liability in H1 2025 compared to H1 2024.
• HUF 9.5 billion negative change in income taxes paid in H1 2025 compared to H1 2024, mainly reflecting higher local business tax and higher corporate income tax payment due to improving profit figures.

• HUF 2.6 billion positive change in interest and other financial charges paid in H1 2025 compared to H1 2024, mainly reflecting the lower level of the loan portfolio and different timing of interest payment.
• HUF 0.9 billion positive change in interest received in H1 2025 compared to H1 2024 due to more favorable liquidity positions.
• HUF 0.2 billion positive change in other non-cash items, mainly due to more significant foreign exchange rate movements leading to FX gains in H1 2025 versus losses in H1 2024, partially offset by one-off gain on the sale of subsidiary, ViDaNet.

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

Net cash used in investing activities amounted to HUF 46.0 billion in H1 2025, compared to HUF 50.6 billion in H1 2024 reflecting partly the higher outpayments to Capex creditors and higher network related investments in Hungary and North Macedonia. This was offset by real-estate sales in Hungary that resulted in a positive effect of HUF 1.6 billion during H1 2025.

Besides the change above, HUF 5.2 billion one-off positive cash flow effect was realized on the sale of subsidiary, ViDaNet. Furthermore, the sales price is partly settled by loan assignment between the parties 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. The remaining part of the receivable related to the ViDaNet sale transaction in the amount of HUF 2.4 billion was settled as cash transaction in July 2025.

Repayment of lease and other financial liabilities

Repayment of lease and other financial liabilities improved to HUF 17.2 billion in H1 2025 from HUF 18.2 billion in H1 2024, primarily driven by the absence of cash outflow related to trade payables with extended payment term.

Cash and cash equivalents deteriorated by HUF 2.7 billion in H1 2025 compared to H1 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 30.6 billion due to combined effect of the lower drawdown of DT Group loans and the increase of proceeds from inhouse DT Group funds in H1 2025 compared to H1 2024.
• Repayments of loans and other borrowings improved by HUF 65.9 billion due to the decrease of repayments of DT Group loans partly mitigated by the higher level of repayments of inhouse DT Group funds in H1 2025 compared to H1 2024.
• HUF 18.4 billion higher cash outflow related to treasury share purchase in H1 2025 compared to H1 2024.
• HUF 49.4 billion higher dividend was paid in H1 2025 versus H1 2024.
• Exchange differences on cash and cash equivalents deteriorated by HUF 0.7 billion due to the MKD/HUF foreign exchange rate movement during H1 2025.

The financial and operating statistics are available on the following website: http://www.telekom.hu/about\_us/investor\_relations/financial

2.1.3Consolidated Statements of Financial Position

The most significant changes in the balances of the Consolidated Statements of Financial Position from December 31, 2024 to June 30, 2025 (see Appendix 3.9 and 3.10) can be observed in the following lines:

• Other financial assets (current and non-current combined)
• Assets held for sale
• Other intangible assets
• Trade payables
• Treasury stock

Other financial assets (current and non-current combined) decreased by HUF 42.9 billion from December 31, 2024 to June 30, 2025 mainly as a result of HUF 48.2 billion decrease in cash pool receivables.

Assets held for sale decreased by HUF 2.1 billion from December 31, 2024 to June 30, 2025 mainly due to the sale of the usage right of 2x5 MHz frequency block in the 2100 MHz band to Yettel Hungary Ltd. coupled with real-estate sale.

Other intangible assets declined by HUF 13.3 billion from December 31, 2024 to June 30, 2025, reflecting the amortization and shortening of useful life of some software.

Trade payables decreased by HUF 50.0 billion from December 31, 2024 to June 30, 2025 reflecting a decrease in outstanding balances to handset, SI/IT, Capex and OPEX suppliers.

Treasury stock increased from December 31, 2024 to June 30, 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 June 30, 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.

2.1.4 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.

2.1.5 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 17.7 billion as at December 31, 2024. 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.

2.1.6 Material events

For any material event that occurred between the end of the quarter (June 30, 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

2.2. 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.

2.2.1MT-Hungary

	Q2 2024	Q2 2025	Change	Change	1-6 months	1-6 months	Change	Change
				(%)	2024	2025		(%)
HUF millions
Voice	34,072	33,425	(647)	(1.9%)	63,924	66,558	2,634	4.1%
Non-voice	60,082	64,007	3,925	6.5%	114,081	126,058	11,977	10.5%
Equipment	29,408	28,434	(974)	(3.3%)	58,735	56,825	(1,910)	(3.3%)
Other mobile revenue	4,651	4,564	(87)	(1.9%)	9,301	8,776	(525)	(5.6%)
Mobile revenue	128,213	130,430	2,217	1.7%	246,041	258,217	12,176	4.9%
Voice retail	8,043	7,255	(788)	(9.8%)	15,668	14,680	(988)	(6.3%)
Broadband retail	26,809	27,919	1,110	4.1%	50,832	55,906	5,074	10.0%
TV	19,395	18,204	(1,191)	(6.1%)	37,288	36,704	(584)	(1.6%)
Equipment	4,758	4,926	168	3.5%	9,970	10,225	255	2.6%
Other	11,041	11,430	389	3.5%	22,132	23,481	1,349	6.1%
Fixed line revenue	70,046	69,734	(312)	(0.4%)	135,890	140,996	5,106	3.8%
SI/IT revenue	22,692	20,627	(2,065)	(9.1%)	43,118	43,542	424	1.0%
Revenue	220,951	220,791	(160)	(0.1%)	425,049	442,755	17,706	4.2%
Direct costs	(83,491)	(81,084)	2,407	2.9%	(166,053)	(166,723)	(670)	(0.4%)
Gross profit	137,460	139,707	2,247	1.6%	258,996	276,032	17,036	6.6%
Indirect costs	(39,217)	(39,063)	154	0.4%	(75,607)	(78,310)	(2,703)	(3.6%)
Supplementary telecommunication tax	(9,120)	-	9,120	n.a.	(17,994)	-	17,994	n.a.
EBITDA	89,123	100,644	11,521	12.9%	165,395	197,722	32,327	19.5%
EBITDA AL	82,086	93,145	11,059	13.5%	151,034	182,788	31,754	21.0%
Segment Capex AL excl. spectrum licenses	24,423	23,045	(1,378)	(5.6%)	42,092	41,904	(188)	(0.4%)
Spectrum licenses	-	-	-	-	-	-	-	-

	June 30	June 30	Change
Operational statistics – access numbers	2024	2025	(%)
Number of SIM cards	6,389,130	6,555,583	2.6%
Postpaid share in total	59.5%	57.6%	n.a.
Total fixed voice access	1,232,137	1,150,635	(6.6%)
Total retail fixed broadband customers	1,621,919	1,633,135	0.7%
Total TV customers	1,435,238	1,381,306	(3.8%)

Operational statistics – ARPU (HUF)	Q2 2024	Q2 2025	Change	1-6 months	1-6 months	Change
			(%)	2024	2025	(%)
Blended mobile ARPU	4,910	4,992	1.7%	4,676	4,953	5.9%
Postpaid ARPU	7,643	7,994	4.6%	7,218	7,917	9.7%
Prepaid ARPU	1,398	1,538	10.0%	1,339	1,469	9.7%
M2M ARPU	254	246	(2.8%)	253	245	(3.2%)
Blended fixed voice ARPU	2,160	2,071	(4.1%)	2,085	2,077	(0.4%)
Blended fixed broadband ARPU	5,480	5,589	2.0%	5,218	5,577	6.9%
Blended TV ARPU	4,509	4,334	(3.9%)	4,342	4,329	(0.3%)

Total revenue for the MT-Hungary segment was flat year-on-year at HUF 220.8 billion in Q2 2025, as the continued increase in mobile data and fixed broadband revenues was mitigated by declines in voice, TV and SI/IT revenue. In the first half of 2025, total revenue was up by 4.2% YoY, still reflecting the impact of the inflation-based fee adjustment implemented in March 2024.

• Mobile revenue was up by 1.7% year-on-year in Q2 2025, thanks primarily to further growth of mobile data revenue that could more than compensate for the lower voice and equipment sales revenues. Mobile data revenue growth continued to be driven by the increases in usage coupled with expansion of the residential user base. Equipment sales revenue decline YoY was driven by decline in the related sales volumes and average price levels as well as lower revenue from third party export sales.
• Fixed line revenue was down by 0.4% year-on-year in Q2 2025, with improvement in broadband revenues offset by lower voice and TV revenues. Voice revenue decline was the combined results of the lower subscriber base and declining usage levels, whilst the lower TV revenue reflects decline in the ARPU levels and the reduction of the user base as well. 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, both resulting in some inorganic decline in the TV RPC base.
• SI/IT revenue was down by 9.1% year-on-year in Q2 2025, reflecting different seasonal dynamics of the projects.

Gross profit was up moderately year-on-year in Q2 2025, thanks to overall increase in service revenues, coupled with lower bad debt and telecommunication tax expenses.

EBITDA increased by 12.9% year-on-year and EBITDA AL was up by 13.5% year-on-year in Q2 2025, driven by higher gross profit coupled with the favorable impact of the elimination of the supplementary telecommunication tax from January 2025.

Capex AL excluding spectrum licenses was lower by 5.6% year-on-year in Q2 2025, as the impact of the higher investments toward the fiber as well as the mobile networks were offset by the absence of the one-off asset retirement obligation recognized in the base period.

Outlook: Economic, business and competitive developments in Hungary have raised many challenges in the past years whilst there are considerable uncertainties with regards to the outlook. Magyar Telekom closely monitors the development of its external environment to take proactive steps, leverage opportunities and mitigate risks arising from any change in the environment.

2.2.2 North Macedonia

	Q2 2024	Q2 2025	Change	Change	1-6 months	1-6 months	Change	Change
HUF millions				(%)	2024	2025		(%)
Voice	4,002	3,835	(167)	(4.2%)	7,770	7,593	(177)	(2.3%)
Non-voice	4,700	5,385	685	14.6%	9,189	10,581	1,392	15.1%
Equipment	2,952	2,863	(89)	(3.0%)	6,353	6,011	(342)	(5.4%)
Other mobile revenue	783	728	(55)	(7.0%)	1,484	1,393	(91)	(6.1%)
Mobile revenue	12,437	12,811	374	3.0%	24,796	25,578	782	3.2%
Voice retail	1,305	1,300	(5)	(0.4%)	2,604	2,616	12	0.5%
Broadband retail	1,763	1,935	172	9.8%	3,476	3,835	359	10.3%
TV	1,353	1,458	105	7.8%	2,701	2,906	205	7.6%
Equipment	23	25	2	8.7%	53	45	(8)	(15.1%)
Other	1,958	1,719	(239)	(12.2%)	3,716	3,422	(294)	(7.9%)
Fixed line revenue	6,402	6,437	35	0.5%	12,550	12,824	274	2.2%
SI/IT revenue	382	877	495	129.6%	705	1,144	439	62.3%
Revenue	19,221	20,125	904	4.7%	38,051	39,546	1,495	3.9%
Direct costs	(5,691)	(6,355)	(664)	(11.7%)	(11,936)	(12,339)	(403)	(3.4%)
Gross profit	13,530	13,770	240	1.8%	26,115	27,207	1,092	4.2%
Indirect costs	(5,534)	(5,172)	362	6.5%	(10,153)	(10,226)	(73)	(0.7%)
EBITDA	7,996	8,598	602	7.5%	15,962	16,981	1,019	6.4%
EBITDA AL	7,691	8,295	604	7.9%	15,355	16,375	1,020	6.6%
Segment Capex AL excl. spectrum licenses	1,888	4,643	2,755	145.9%	3,891	7,279	3,388	87.1%
Spectrum licenses	-	-	-	-	-	-	-	-
Operational statistics – access numbers	June 30	June 30		Change

Operational statistics – access numbers
	2024	2025	(%)
Number of mobile SIMs	1,272,358	1,269,586	(0.2%)
Postpaid share in total	46.7%	48.1%	n.a.
Total fixed voice access	229,527	235,290	2.5%
Total fixed retail broadband customers	213,016	221,240	3.9%
Total TV customers	153,157	164,018	7.1%

Total revenue in North Macedonia was up by 4.7% year-on-year to HUF 20.1 billion in Q2 2025 in forint terms, as increases in service revenue coupled with a rise in SI/IT sales offset lower equipment sales and decline in TV content resale related revenues.

• Mobile revenue rose by 3.0% year-on-year in Q2 2025 in forint terms, whilst it was broadly stable in local currency. Mobile data revenue continued to increase thanks to the further expansion of the postpaid customer base and increasing usage, however it was mitigated by the declines in voice revenue and the lower equipment sales revenues.
• Fixed line revenue was up by 0.5% year-on-year in Q2 2025 in forint terms, whilst declined moderately in local currency, as increases in broadband and TV revenues, in line with the expansion of the relevant customer base, were offset by a decline in TV-content resale revenue.
• SI/IT revenue more than doubled year-on-year in Q2 2025, thanks to smart lightening project revenues.

Gross profit rose by 1.8% year-on-year in Q2 2025 in forint terms, and remained broadly stable in local currency, as the increase in service revenue and lower bad debt level was offset by higher equipment costs.

EBITDA grew by 7.5% year-on-year and EBITDA AL was up by 7.9% year-on-year in Q2 2025, thanks to lower employee related and other indirect costs.

CAPEX AL more than doubled year-on-year and amounted to HUF 4.6 billion in Q2 2025 as a result of increased network related investments and temporarily higher TV-content capitalization costs.

Outlook: Looking ahead, competition is expected to intensify further with the possible entrance of a new operator to the North Macedonian telecommunication market and which may exert pressure on the profitability.

2.3. Sustainability

Magyar Telekom Group's operations continued to be guided by its 5th sustainability strategy in the first half of 2025, based on the three pillars of climate protection, digitalization, furthermore, inclusion and diversity. The strategy remains unchanged from the last reporting period, with its main goal being for the Group to maintain its leading position in sustainability by utilizing digitalization to serve the development of people, families and businesses, as well as environmental protection. Long-term goals are currently set until 2030.

In the first half of 2025, the Group implemented measures to realize its current sustainability strategy, as follows:

Key measures under the climate protection pillar:

• Electricity consumption continues to be covered by 100% renewable energy sources.
• Measures to further increase the share of onsite renewable energy.
• Energy efficiency investments in MT-Hungary buildings and infrastructure.
• Gradual green transition and electrification of the vehicle fleet.
• Green transition of data centers in line with EU taxonomy recommendations.
• Mobile device collection programs and sale of refurbished devices.

Key measures under the digitalization pillar:

• Increased outdoor 5G coverage for residential customers with a modernized mobile network.
• Increased number of Gigabit-capable access points in the fixed network.
• Programs and initiatives aimed at developing digital skills and business competitiveness.

Key measures under the inclusion and diversity pillar:

• Programs by employee resource groups supporting the implementation of inclusive workplace
• A series of events organized within the framework of Diversity Month, aimed at reducing prejudices, increasing empathy, and promoting social understanding.
• Optimization of active support for those on long-term leave, ensuring personal meetings for them.
• Continuous support for colleagues with altered working capacity, continuation of accessibility processes and initiatives.

Looking ahead, the Group will continue to operate in line with the previously defined strategic pillars and will provide detailed sustainability data in the Magyar Telekom Group's 2025 Consolidated sustainability statement for the 2025 business year, according to material sustainability topics.

3. APPENDIX

3.1. 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 material 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 standard, amendments or interpretations applicable for the Group effective from 2025.

3.2. 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 wars 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 preparing the interim financial report, management has made judgments and estimates about the future:

• During the updating of the goodwill impairment test the management has taken into account the period-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.
• Considering the general economic factors, the solvency of customers has been assessed and management concluded that there was no need to recognize further one-off allowance for bad debts in the second quarter of 2025.
• No further material impairment needed to be recognized in the second quarter of 2025.

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.

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

	Q2 2024	Q2 2025	Change	Change
	(unaudited)	(unaudited)		(%)
(HUF millions, except per share amounts)
Mobile revenue	140,647	143,240	2,593	1.8%
Fixed line revenue	76,886	76,547	(339)	(0.4%)
SI/IT revenue	23,074	21,504	(1,570)	(6.8%)
Revenue	240,607	241,291	684	0.3%
Interconnect costs	(4,850)	(4,867)	(17)	(0.4%)
SI/IT service related costs	(15,439)	(13,816)	1,623	10.5%
Impairment losses and gains on financial assets and contract assets	(3,059)	(2,679)	380	12.4%
Telecom tax	(6,453)	(6,046)	407	6.3%
Other direct costs	(59,339)	(59,999)	(660)	(1.1%)
Direct costs	(89,140)	(87,407)	1,733	1.9%
Employee-related expenses	(24,955)	(26,632)	(1,677)	(6.7%)
Depreciation and amortization	(35,905)	(36,316)	(411)	(1.1%)
Other operating expenses	(21,012)	(21,418)	(406)	(1.9%)
Supplementary telecommunication tax	(9,120)	-	9,120	n.a.
Operating expenses	(180,132)	(171,773)	8,359	4.6%
Other operating income	770	3,514	2,744	356.4%
Operating profit	61,245	73,032	11,787	19.2%
Interest income	1,161	1,885	724	62.4%
Interest expense	(5,051)	(4,438)	613	12.1%
Other finance expense - net	(4,010)	(3,085)	925	23.1%
Net financial result	(7,900)	(5,638)	2,262	28.6%
Share of associates' and joint ventures' results	-	-	-	-
Profit before income tax	53,345	67,394	14,049	26.3%
Income tax	(8,704)	(9,667)	(963)	(11.1%)
Profit for the period	44,641	57,727	13,086	29.3%
Other comprehensive income:
Items to be reclassified to profit or loss in subsequent periods:
Exchange differences on translating foreign operations	(458)	(670)	(212)	(46.3%)
Items not to be reclassified to profit or loss in subsequent periods:
Revaluation of financial assets at FV OCI Other comprehensive income for the year, net of tax	345 (113)	(100) (770)	(445) (657)	n.m. (581.4%)
Total comprehensive income for the period	44,528	56,957	12,429	27.9%
Profit attributable to:
Owners of the parent	43,361	56,040	12,679	29.2%
Non-controlling interests	1,280	1,687	407	31.8%
	44,641	57,727	13,086	29.3%
Total comprehensive income attributable to:
Owners of the parent	43,313	55,460	12,147	28.0%
Non-controlling interests	1,215	1,497	282	23.2%
	44,528	56,957	12,429	27.9%
Earnings per share (EPS) information:
Profit attributable to the owners of the Company	43,361	56,040
Weighted average number of common stock outstanding
used for basic/diluted EPS	928,025,171	901,359,634
Basic / diluted earnings per share (HUF)	46.72	62.17	15.45	33.1%

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

	1-6 months 2024	1-6 months 2025	Change	Change
	(unaudited)	(unaudited)		(%)
(HUF millions, except per share amounts)
Mobile revenue	271,556	283,793	12,237	4.5%
Fixed line revenue	149,457	154,620	5,163	3.5%
SI/IT revenue	43,823	44,510	687	1.6%
Revenue	464,836	482,923	18,087	3.9%
Interconnect costs	(9,179)	(9,541)	(362)	(3.9%)
SI/IT service related costs	(30,540)	(30,834)	(294)	(1.0%)
Impairment losses and gains on financial assets and contract assets	(6,457)	(5,735)	722	11.2%
Telecom tax	(12,758)	(12,135)	623	4.9%
Other direct costs	(118,977)	(120,784)	(1,807)	(1.5%)
Direct costs	(177,911)	(179,029)	(1,118)	(0.6%)
Employee-related expenses	(46,735)	(51,618)	(4,883)	(10.4%)
Depreciation and amortization	(71,158)	(71,626)	(468)	(0.7%)
Other operating expenses	(42,149)	(42,277)	(128)	(0.3%)
Supplementary telecommunication tax	(17,977)	-	17,977	n.a.
Operating expenses	(355,930)	(344,550)	11,380	3.2%
Other operating income	1,679	4,575	2,896	172.5%
Operating profit	110,585	142,948	32,363	29.3%
Interest income	2,677	3,643	966	36.1%
Interest expense	(10,460)	(8,933)	1,527	14.6%
Other finance expense - net	(7,922)	(5,517)	2,405	30.4%
Net financial result	(15,705)	(10,807)	4,898	31.2%
Share of associates' and joint ventures' results	-	-	-	n.a.
Profit before income tax	94,880	132,141	37,261	39.3%
Income tax Profit for the period	(15,223) 79,657	(18,747) 113,394	(3,524) 33,737	(23.1%) 42.4%
Other comprehensive income:
Items to be reclassified to profit or loss in subsequent periods:
Exchange differences on translating foreign operations	3,554	(3,676)	(7,230)	n.m.
Items not to be reclassified to profit or loss in subsequent periods:
Revaluation of financial assets at FV OCI	744	(4)	(748)	n.m.
Other comprehensive income for the year, net of tax	4,298	(3,680)	(7,978)	n.m.
Total comprehensive income for the period	83,955	109,714	25,759	30.7%
Profit attributable to:
Owners of the parent	77,040	110,204	33,164	43.0%
Non-controlling interests	2,617	3,190	573	21.9%
	79,657	113,394	33,737	42.4%
Total comprehensive income attributable to:
Owners of the parent	79,689	107,779	28,090	35.2%
Non-controlling interests	4,266	1,935	(2,331)	(54.6%)
	83,955	109,714	25,759	30.7%
Earnings per share (EPS) information:
Profit attributable to the owners of the Company	77,040	110,204
Weighted average number of common stock outstanding
used for basic/diluted EPS Basic / diluted earnings per share (HUF)	928,903,160 82.94	904,886,170 121.79	38.85	46.8%

3.5. Revenue breakdown – quarterly year-on-year comparison

(HUF millions)	Q2 2024	Q2 2025	Change	Change (%)
Voice retail	36,210	35,333	(877)	(2.4%)
Voice wholesale	1,864	1,927	63	3.4%
Data	57,196	61,988	4,792	8.4%
SMS	7,586	7,404	(182)	(2.4%)
Equipment	32,360	31,297	(1,063)	(3.3%)
Other mobile revenue	5,431	5,291	(140)	(2.6%)
Mobile revenue	140,647	143,240	2,593	1.8%
Voice retail	9,348	8,555	(793)	(8.5%)
Broadband retail	28,572	29,854	1,282	4.5%
T V	20,748	19,662	(1,086)	(5.2%)
Equipment	4,781	4,951	170	3.6%
Data, wholesale and other fixed line revenue	13,437	13,525	88	0.7%
Fixed line revenue	76,886	76,547	(339)	(0.4%)
SI/IT revenue	23,074	21,504	(1,570)	(6.8%)
Revenue	240,607	241,291	684	0.3%

3.6. Revenue breakdown – year-to-date comparison

(HUF millions)	1-6 months 2024	1-6 months 2025	Change	Change (%)
Voice retail	68,660	70,324	1,664	2.4%
Voice wholesale	3,757	3,827	70	1.9%
Data	108,894	121,788	12,894	11.8%
SMS	14,376	14,851	475	3.3%
Equipment	65,088	62,836	(2,252)	(3.5%)
Other mobile revenue	10,781	10,167	(614)	(5.7%)
Mobile revenue	271,556	283,793	12,237	4.5%
Voice retail	18,283	17,296	(987)	(5.4%)
Broadband retail	54,353	59,741	5,388	9.9%
T V	40,021	39,610	(411)	(1.0%)
Equipment	10,023	10,270	247	2.5%
Data, wholesale and other fixed line revenue	26,777	27,703	926	3.5%
Fixed line revenue	149,457	154,620	5,163	3.5%
SI/IT revenue	43,823	44,510	687	1.6%
Revenue	464,836	482,923	18,087	3.9%

3.7. Operating expenses breakdown – quarterly year-on-year comparison

(HUF millions)	Q2 2024	Q2 2025	Change	Change (%)
Direct costs	(89,140)	(87,407)	1,733	1.9%
Employee-related expenses	(24,955)	(26,632)	(1,677)	(6.7%)
Depreciation and amortization	(35,905)	(36,316)	(411)	(1.1%)
Other operating expenses	(21,012)	(21,418)	(406)	(1.9%)
Supplementary telecommunication tax	(9,120)	-	9,120	n.a.
Operating expenses	(180,132)	(171,773)	8,359	4.6%

3.8. Operating expenses breakdown – year-to-date comparison

(HUF millions)	1-6 months 2024	1-6 months 2025	Change	Change (%)
Direct costs	(177,911)	(179,029)	(1,118)	(0.6%)
Employee-related expenses	(46,735)	(51,618)	(4,883)	(10.4%)
Depreciation and amortization	(71,158)	(71,626)	(468)	(0.7%)
Other operating expenses	(42,149)	(42,277)	(128)	(0.3%)
Supplementary telecommunication tax	(17,977)	-	17,977	n.a.
Operating expenses	(355,930)	(344,550)	11,380	3.2%

3.9. Interim Consolidated Statement of Financial Position - Assets

	Dec 31, 2024 (unaudited)	June 30, 2025 (unaudited)	Change	Change (%)
(HUF millions)
ASSETS
Cash and cash equivalents	18,010	14,066	(3,944)	(21.9%)
Trade receivables within one year	211,411	205,347	(6,064)	(2.9%)
Other current assets	9,214	8,617	(597)	(6.5%)
Derivative financial instruments contracted
with related parties	1,804	1,157	(647)	(35.9%)
Other current financial assets	52,092	9,333	(42,759)	(82.1%)
Contract assets	16,903	19,893	2,990	17.7%
Current income tax receivable	135	119	(16)	(11.9%)
Inventories	28,756	23,343	(5,413)	(18.8%)
	338,325	281,875	(56,450)	(16.7%)
Assets held for sale	2,788	707	(2,081)	(74.6%)
Total current assets	341,113	282,582	(58,531)	(17.2%)
Property, plant and equipment	497,728	493,754	(3,974)	(0.8%)
Right-of-use assets	129,733	127,644	(2,089)	(1.6%)
Goodwill	212,713	211,769	(944)	(0.4%)
Other intangible assets	293,626	280,371	(13,255)	(4.5%)
Investments in associates and joint ventures	-	-	-	-
Deferred tax assets	114	38	(76)	(66.7%)
Trade receivables over one year	25,149	21,623	(3,526)	(14.0%)
Derivative financial instruments contracted
with related parties	6,733	4,180	(2,553)	(37.9%)
Other non-current financial assets	6,907	6,728	(179)	(2.6%)
Contract assets	4,089	3,780	(309)	(7.6%)
Other non-current assets	12,168	12,404	236	1.9%
Total non-current assets	1,188,960	1,162,291	(26,669)	(2.2%)
Total assets	1,530,073	1,444,873	(85,200)	(5.6%)

3.10.Interim Consolidated Statement of Financial Position – Liabilities and Equity

	Dec 31, 2024 (unaudited)	June 30, 2025 (unaudited)	Change	Change (%)
(HUF millions)
LIABILITIES
Financial liabilities to related parties	26,734	26,720	(14)	(0.1%)
Derivative financial instruments contracted
with related parties	74	759	685	n.m.
Lease liabilities	27,866	28,204	338	1.2%
Trade payables	158,058	108,103	(49,955)	(31.6%)
Other financial liabilities Current income tax payable	10,093 5,942	10,486 10,570	393 4,628	3.9% 77.9%
Provisions	5,922	2,997	(2,925)	(49.4%)
Contract liabilities	16,231	13,364	(2,867)	(17.7%)
Other current liabilities	29,212	27,809	(1,403)	(4.8%)
	280,132	229,012	(51,120)	(18.2%)
Liabilities held for sale	-	-	-	n.a.
Total current liabilities	280,132	229,012	(51,120)	(18.2%)
Financial liabilities to related parties	60,059	59,147	(912)	(1.5%)
Lease liabilities	119,174	115,134	(4,040)	(3.4%)
Corporate bonds	69,183	69,350	167	0.2%
Other financial liabilities	94,404	92,124	(2,280)	(2.4%)
Deferred tax liabilities	17,669	18,610	941	5.3%
Provisions	19,470	20,407	937	4.8%
Contract liabilities	343	384	41	12.0%
Other non-current liabilities	1,129	900	(229)	(20.3%)
Total non-current liabilities	381,431	376,056	(5,375)	(1.4%)
Total liabilities	661,563	605,068	(56,495)	(8.5%)
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	710,998	19,346	2.8%
Accumulated other comprehensive income	39,353	36,928	(2,425)	(6.2%)
Total equity of the owners of the parent	823,157	799,289	(23,868)	(2.9%)
Non-controlling interests	45,353	40,516	(4,837)	(10.7%)
Total equity	868,510	839,805	(28,705)	(3.3%)
Total liabilities and equity	1,530,073	1,444,873	(85,200)	(5.6%)

3.11.Interim Consolidated Statement of Cash Flows

(HUF millions)	1-6 months 2024 (unaudited)	1-6 months 2025 (unaudited)	Change	Change (%)
Cash flows from operating activities
Profit for the period	79,657	113,394	33,737	42.4%
Depreciation and amortization	71,158	71,626	468	0.7%
Income tax expense	15,223	18,747	3,524	23.1%
Net financial result	15,705	10,807	(4,898)	(31.2%)
Share of associates' and joint ventures' result	-	-	-	-
Change in assets carried as working capital	(15,219)	11,746	26,965	n.m.
Change in provisions	(1,065)	(2,529)		(1,464) (137.5%)
Change in liabilities carried as working capital	(35,155)	(44,117)	(8,962)	(25.5%)
Income tax paid	(13,027)	(22,496)	(9,469)	(72.7%)
Dividend received	109	154	45	41.3%
Interest and other financial charges paid	(13,298)	(10,663)	2,635	19.8%
Interest received	2,558	3,476	918	35.9%
Other non-cash items	(1,126)	(958)	168	14.9%
Net cash generated from operating activities	105,520	149,187	43,667	41.4%
Cash flows from investing activities
Payments for property plant and equipment (PPE) and intangible assets	(51,040)	(53,166)	(2,126)	(4.2%)
Proceeds from disposal of PPE and intangible assets	406	1,994	1,588	391.1%
Payments for subsidiaries and business units	-	-	-	-
Cash acquired through business combinations	-	-	-	-
Proceeds from disposal of subsidiaries and business units	-	5,213	5,213	-
Payments for other financial assets	(2,333)	(5,815)		(3,482) (149.2%)
Proceeds from other financial assets	15,293	36	(15,257)	(99.8%)
Payments for interests in associates and joint ventures	-	-	-	-
Net cash used in investing activities	(37,674)	(51,738)	(14,064)	(37.3%)
Cash flows from financing activities
Dividends paid to Owners of the parent and Non-controlling interests	(41,475)	(90,863)		(49,388) (119.1%)
Proceeds from loans and other borrowings	146,447	115,866	(30,581)	(20.9%)
Repayment of loans and other borrowings	(133,847)	(67,983)	65,864	49.2%
Proceeds from corporate bonds	-	-	-	-
Repayment of lease and other financial liabilities	(18,192)	(17,231)	961	5.3%
Treasury share purchase	(22,363)	(40,789)	(18,426)	(82.4%)
Net cash used in financing activities	(69,430)	(101,000)	(31,570)	(45.5%)
Exchange differences on cash and cash equivalents	319	(393)	(712)	n.m.
Change in cash and cash equivalents	(1,265)	(3,944)		(2,679) (211.8%)
Cash and cash equivalents, beginning of period	13,514	18,010	4,496	33.3%
Cash and cash equivalents, end of period	12,249	14,066	1,817	14.8%

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

				Changes in financial liabilities without cash movement		Changes	Changes affecting cash flows from financing activities
HUF millions	Opening Balance at January 1, 2025	Changes in cash and cash equivalents	Changes affecting cash flows from operating activities		affecting cash flows from investing activities	Proceeds from loans and borrowings	Repayment of loans and other borrowings	Repayment of lease and other financial liabilities	Other	Closing Balance at June 30, 2025
Related party loans
Derivatives from related parties	86,793	-	592	(1,203)	-	67,668	(67,983)	-	-	85,867
Spectrum fee payable	74 96,047	-	- - (1,895)	1,866 1,898	(1,181) -	- -	- -	- (2,441)	- -	759 93,609
Bonds	69,183	-	(1,077)	1,244	-	-	-	-	-	69,350
Lease liabilities	147,040	-	(3,639)	13,607	-	-	-	(13,670)	-	143,338
Debtors overpayment	1,490	-	(259)	-	-	-	-	-	-	1,231
Contingent consideration	-		- -	-	-	-	-	-	-	-
Other financial liabilities	6,960	-	(1,305)	3,086	-	-	-	(971)	-	7,770
- Less cash and cash equivalent	(18,010)	3,944	-	-	-	-	-	-	-	(14,066)
- Less other current financial assets and
derivative financial instruments	(53,896)	-	(2,281)	1,306	(3,668)	48,198	-	(149)	-	(10,490)
Net debt	335,681	3,944	(9,864)	21,804	(4,849)	115,866	(67,983)	(17,231)	-	377,368
Treasury share purchase									(40,789)
Dividends paid to Owners of the parent and
Non-controlling interest									(90,863)
Net Cash used in financing activities									(101,000)

3.13. Interim Consolidated Statement of Changes in Equity

	pieces	HUF millions
							Accumulated Other
						Comprehensive Income
	Shares of common stock	Common stock	Capital reserves	Treasury stock	Retained earnings	Cumulative translation adjustment	Revaluation reserve for FVOCI financial assets – net of tax	Equity of the owners of the parent	Non controlling interests	Total Equity
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	-	-	-	-	-	2,227	422	2,649	1,649	4,298
Profit or loss	-	-	-	-	77,040	-	-	77,040	2,617	79,657
Total comprehensive income	-	-	-	-	77,040	2,227	422	79,689	4,266	83,955
Balance at June 30, 2024	938,617,497	93,862		24,644 (26,354) 610,895		35,145	1,040	739,232	40,391	779,623
Dividend declared to Owners of the parent	-	-	-	-	-	-	-	-	-	-
Dividend declared to Non-controlling interests	-	-	-	-	-	-	-	-	-	-
Treasury share purchase	-	-	-	-	-	-	-	-	-	-
Capital decrease with cancellation of treasury share	-	-	-	-	-	-	-	-	-	-
Transactions with owners in their capacity as owners	-	-	-	-	-	-	-	-	-	-
Other comprehensive income	-	-	-	-	-	2,770	398	3,168	1,980	5,148
Profit or loss	-	-	-	-	80,757	-	-	80,757	2,982	83,739
Total comprehensive income	-	-	-	-	80,757	2,770	398	83,925	4,962	88,887
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	-	-	-	-	-	(2,421)	(4)	(2,425)	(1,255)	(3,680)
Profit or loss	-	-	-		- 110,204	-	-	110,204	3,190	113,394
Total comprehensive income	-	-	-		- 110,204	(2,421)	(4)	107,779	1,935	109,714
Balance at June 30, 2025	938,617,497	93,862		24,644 (67,143) 710,998		35,494	1,434	799,289	40,516	839,805
Of which treasury stock	(52,857,928)
Shares of common stock outstanding	885,759,569

3.14. Exchange rate information

	Q2 2024	Q2 2025	Change (%)	1-6 months 2024	1-6 months 2025	Change (%)
HUF/EUR beginning of period	395.83	401.90	1.5%	382.78	410.09	7.1%
HUF/EUR period-end	395.15	399.30	1.1%	395.15	399.30	1.1%
HUF/EUR cumulative monthly average	392.00	403.09	2.8%	390.72	403.95	3.4%
HUF/MKD beginning of period	6.44	6.51	1.1%	6.22	6.67	7.2%
HUF/MKD period-end	6.42	6.48	0.9%	6.42	6.48	0.9%
HUF/MKD cumulative monthly average	6.37	6.54	2.7%	6.35	6.56	3.3%

3.15. Segment information

	Q2 2024	Q2 2025	1-6 months 2024	1-6 months 2025
HUF millions
Total MT-Hungary revenue	220,951	220,791	425,049	442,755
Less: MT-Hungary revenue from other segments	(30)	(32)	(53)	(59)
MT-Hungary revenue from external customers	220,921	220,759	424,996	442,696
Total North Macedonia revenue	19,221	20,125	38,051	39,546
Less: North Macedonia revenue from other segments	(14)	(10)	(28)	(20)
North Macedonia revenue from external customers	19,207	20,115	38,023	39,526
Total consolidated revenue of the segments	240,128	240,874	463,019	482,222
Measurement differences to Group revenue	479	417	1,817	701
Total revenue of the Group	240,607	241,291	464,836	482,923
Segment results (EBITDA)
Hungary	89,123	100,644	165,395	197,722
North Macedonia	7,996	8,598	15,962	16,981
Total EBITDA of the segments	97,119	109,242	181,357	214,703
Measurement differences to Group EBITDA	31	106	386	(129)
Total EBITDA of the Group	97,150	109,348	181,743	214,574
Segment Capex AL excl. spectrum licenses
Hungary	24,423	23,045	42,092	41,904
North Macedonia	1,888	4,643	3,891	7,279
Total Segment Capex AL excl. spectrum licenses	26,311	27,688	45,983	49,183
Measurement differences to Group Capex AL excl. spectrum licenses	253	-	320	-
Total Capex AL excl. spectrum licenses of the Group	26,564	27,688	46,303	49,183

3.16. Fair value of financial instruments – financial assets

June 30, 2025 HUF millions		Financial assets
		FVOCI	FVTPL	FVTPL	Carrying amount	Fair value
	cost	(Level 1)	(Level 2)	(Level 3)
Cash and cash equivalents	14,066	-	-	-	14,066	14,066
Bank deposits with original maturities over 3 months	3,034	-	-	-	3,034	3,034
Cash-pool receivables	2,972	-	-	-	2,972	2,972
Trade receivables within one year	205,347	-	-	-	205,347	205,347
Trade receivables over one year	21,623	-	-	-	21,623	20,227
Derivative financial instruments contracted with related parties	-	-	5,337	-	5,337	5,337
Receivables from group companies	83	-	-	-	83	83
Finance lease receivable	1,144	-	-	-	1,144	1,077
Equity instruments	-	3,343	-	1,400	4,743	4,743
Other current receivables	2,878	-	-	-	2,878	2,878
Other non-current receivables	1,207	-	-	-	1,207	1,189
Total	252,354	3,343	5,337	1,400	262,434	260,952

December 31, 2024 HUF millions		Financial assets
		FVOCI (Level 1)	FVTPL (Level 2)	FVTPL (Level 3)	Carrying amount	Fair value
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
Receivables from group companies	-	-	-	-	-	-
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

3.17. Fair value of financial instruments – financial liabilities

	Financial liabilities
June 30, 2025 HUF millions	Measured at amortized cost	FVTPL (Level 2)	FVTPL (Level 3)	Carrying amount	Fair value
Financial liabilities to related parties	85,867	-	-	85,867	90,418
Derivative financial instruments contracted with related parties	-	759	-	759	759
Trade payables	108,103	-	-	108,103	108,103
Frequency fee payable	93,609	-	-	93,609	71,210
Bonds	69,350	-	-	69,350	64,062
Lease liabilities	143,338	-	-	143,338	131,847
Debtors' overpayment	1,231	-	-	1,231	1,231
Other current liabilities	4,212	-	-	4,212	4,212
Other non-current liabilities	3,558	-	-	3,558	3,503
Total	509,268	759	-	510,027	475,345

	Financial liabilities
December 31, 2024 HUF millions	Measured at amortized cost	FVTPL (Level 2)	FVTPL (Level 3)	Carrying amount	Fair value
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

3.18. EBITDA reconciliation

(HUF millions)	Q2 2024 MT Group	Q2 2024 MT-Hungary	Q2 2024 North Macedonia	Q2 2025 MT Group	Q2 2025 MT-Hungary	Q2 2025 North Macedonia
EBITDA	97,150	89,123	7,996	109,348	100,644	8,598
IFRS 16 related D&A	(5,655)	(5,390)	(265)	(5,992)	(5,730)	(262)
IFRS 16 related Interest	(1,687)	(1,647)	(40)	(1,810)	(1,769)	(41)
EBITDA after lease	89,808	82,086	7,691	101,546	93,145	8,295
Other D&A (unallocated)	(30,250)	n.a.	n.a.	(30,324)	n.a.	n.a.
Other Financial result (unallocated)	(6,213)	n.a.	n.a.	(3,828)	n.a.	n.a.
Profit before tax	53,345	n.a.	n.a.	67,394	n.a.	n.a.

	1-6 months 2024	1-6 months 2024	1-6 months 2024	1-6 months 2025	1-6 months 2025	1-6 months 2025
(HUF millions)	MT Group	MT-Hungary	North Macedonia	MT Group	MT-Hungary	North Macedonia
EBITDA	181,743	165,395	15,962	214,574	197,722	16,981
IFRS 16 related D&A	(11,478)	(10,949)	(529)	(11,901)	(11,377)	(524)
IFRS 16 related Interest	(3,490)	(3,412)	(78)	(3,639)	(3,557)	(82)
EBITDA after lease	166,775	151,034	15,355	199,034	182,788	16,375
Other D&A (unallocated)	(59,680)	n.a.	n.a.	(59,725)	n.a.	n.a.
Other Financial result (unallocated)	(12,215)	n.a.	n.a.	(7,168)	n.a.	n.a.
Profit before tax	94,880	n.a.	n.a.	132,141	n.a.	n.a.

3.19. Adjusted profit attributable to owners of the parent reconciliation

(HUF millions)	Q2 2024	Q2 2025	Change	Change (%)	1-6 months 2024	1-6 months 2025	Change	Change (%)
Profit attributable to the owners of the parent	43,361	56,040	12,679	29.2%	77,040	110,204	33,164	43.0%
Changes in depreciation and amortization Changes in net financial result* Changes in income tax Total adjusting factors	- 639 - 639	- (175) - (175)	- (814) - (814)	- n.m. - n.m.	- 5,014 - 5,014	- 233 - 233	- (4,781) - (4,781)	- (95.4%) - (95.4%)
Adjusted profit attributable to owners of the parent	44,000	55,865	11,865	27.0%	82,054	110,437	28,383	34.6%

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

3.20. Capex from Interim Consolidated Statement of Cash Flows

	1-6 months 2024	1-6 months 2025
(HUF millions)	MT Group	MT Group
Payments for PPE and intangible assets	51,040	53,166
Less spectrum payments	-	-
Payments for PPE and intangible assets excl. spectrum payments	51,040	53,166
+/- Cash adjustments	(4,737)	(3,983)
Capex AL excl. spectrum	46,303	49,183
ROU capex	13,096	11,666
Spectrum capex	-	-
Capex	59,399	60,849

3.21. Capex from Interim Consolidated Statement of Financial Position

(HUF millions)	Q2 2024	Q2 2024	Q2 2024	Q2 2025	Q2 2025	Q2 2025
	MT Group	MT-Hungary*	North Macedonia*	MT Group	MT-Hungary*	North Macedonia*
Capex AL excl. spectrum licenses	26,564	24,423	2,141	27,688	23,045	4,643
ROU capex	2,864	2,584	280	6,592	6,373	219
Spectrum capex	-	-	-	-	-	-
Capex	29,428	27,007	2,421	34,280	29,418	4,862

(HUF millions)	1-6 months 2024	1-6 months 2024	1-6 months 2024	1-6 months 2025	1-6 months 2025	1-6 months 2025
	MT Group	MT-Hungary*	North Macedonia*	MT Group	MT-Hungary*	North Macedonia*
Capex AL excl. spectrum licenses	46,303	42,159	4,144	49,183	41,904	7,279
ROU capex	13,096	12,661	435	11,666	11,302	364
Spectrum capex	-	-	-	-	-	-
Capex	59,399	54,820	4,579	60,849	53,206	7,643

*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 adopted 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 half-year report.

Tibor Rékasi André Lenz

Chief Executive Officer, member of the Board Chief Financial Officer, member of the Board

Budapest, August 6, 2025

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 adopted by the European Union.