Development of business at Deutsche Telekom AG

Deutsche Telekom AG prepares its annual financial statements in accordance with the principles of German GAAP, as specified in the German Commercial Code (Handelsgesetzbuch – HGB) and the German Stock Corporation Act (Aktiengesetz – AktG).

As the Headquarters of the Deutsche Telekom Group, we perform strategic and cross-segment management functions and provide services for other Group companies. The profits and losses of our subsidiaries and Group financing measures have a material effect on our financial position and results of operations. In our home market, revenue was at a comparable level with the prior year. Mobile revenues increased year-on-year, while higher IT and broadband revenues almost compensated for the decrease in revenue from the traditional fixed-network business. In our Systems Solutions operating segment, we recorded an upward trend in revenue in our growth business (in particular in cloud, , digital solutions, toll collection, and SAP), which, however, was offset by a year-on-year decrease in revenues from the traditional IT business. A positive revenue trend in our growth areas, but also lower charges and ongoing intense competition had an impact on the Europe operating segment in 2018. In the United States operating segment, revenue increased as a result of higher . This increase was attributable to continued growth in existing and greenfield markets, the growing success of new business areas, along with lower churn, and higher connected devices.

Deutsche Telekom AG reported income after taxes for the 2018 financial year of EUR 4.2 billion. In addition to the operating business, the development of business in the reporting year was influenced by a number of very different factors, including the intragroup restructuring within the DFMG group, the equity repayment by T-Mobile Global Holding GmbH, Bonn, to T-Mobile Global Zwischenholding GmbH, Bonn, calculated at fair value, and the agreement in the Toll Collect arbitration proceedings.

IOT - Internet of Things
The IoT enables the intelligent networking of things like sensors, devices, machines, vehicles, etc., with the aim of automating applications and decision-making processes. Deutsche Telekom’s IoT portfolio ranges from SIM cards and flexible data rate plans to IoT platforms in the cloud and complete solutions from a single source.
Refers to the use of a communication device or just a subscriber identity in a visited network rather than one’s home network. This requires the operators of both networks to have reached a roaming agreement and switched the necessary signaling and data connections between their networks. Roaming comes into play when cell phones and smartphones are used across national boundaries.
Service revenues
Revenues generated with mobile customers from services (i.e., revenues from voice services – incoming and outgoing calls – and data services), plus roaming revenues, monthly charges, and visitor revenues.
Customers who pay for communication services after receiving them (usually on a monthly basis).