United States Customer development (XLS:) Download thousands Dec. 31, 2018 Dec. 31, 2017 Change Change % Dec. 31, 2016 a Due to certain acquisitions by T-Mobile US at the beginning of 2018, the number of branded postpaid customers as of the first quarter of 2018 included an adjustment of 13 thousand and the number of branded prepay customers as of the first quarter of 2018 included an adjustment of 9 thousand. b T-Mobile US believes current and future regulatory changes have made the Lifeline program offered by T-Mobile US’ wholesale partners uneconomical. T-Mobile US will continue to support its wholesale partners offering the Lifeline program, but has excluded the Lifeline customers from the reported wholesale subscriber base resulting in the removal of 4,528 thousand reported wholesale customers in 2017. Mobile customers 79,651 72,585 7,066 9.7 71,455 Branded customersa 63,656 58,715 4,941 8.4 54,240 Branded postpaida 42,519 38,047 4,472 11.8 34,427 Branded prepaya 21,137 20,668 469 2.3 19,813 Wholesale customersb 15,995 13,870 2,125 15.3 17,215 For information on changes in the organizational structure, please refer to the section “Group organization”. Total At December 31, 2018, the United States operating segment (T-Mobile US) had 79.7 million customers, compared to 72.6 million customers at December 31, 2017. Net customer additions were 7.0 million for the year ended December 31, 2018, compared to 5.7 million net customer additions for the year ended December 31, 2017 due to the factors described below. Branded customers. Branded postpaid net customer additions were 4,459 thousand for the year ended December 31, 2018, compared to 3,620 thousand branded postpaid net customer additions for the year ended December 31, 2017. The increase in branded postpaid net customer additions was due primarily to higher gross customer additions from wearables, specifically the Apple watch, lower churn, continued growth in existing and greenfield markets, and the growing success of new customer segments such as T-Mobile ONE™ Unlimited 55+, T-Mobile ONE Military and T-Mobile for Business. These increases were partially offset by the impact from more aggressive service promotions and the launch of Un-carrier Next – All Unlimited (with taxes and fees) in the first quarter of 2017. Branded prepay net customer additions were 460 thousand for the year ended December 31, 2018, compared to 855 thousand branded prepay net customer additions for the year ended December 31, 2017. The decrease was due primarily to increased competitive activity in the marketplace, partially offset by lower migrations to branded postpaid plans. Wholesale customers. Wholesale net customer additions were 2,125 thousand for the year ended December 31, 2018, compared to 1,183 thousand for the year ended December 31, 2017. The increase was due primarily to lower deactivations driven by the removal of Lifeline program customers during 2017. Development of operations (XLS:) Download millions of € 2018 2017 Change Change % 2016 TOTAL REVENUE 36,522 35,736 786 2.2 33,738 Profit from operations (EBIT) 4,634 5,930 (1,296) (21.9) 3,685 EBIT margin % 12.7 16.6 10.9 Depreciation, amortization and impairment losses (5,294) (5,019) (275) (5.5) (5,282) EBITDA 9,928 10,949 (1,021) (9.3) 8,967 Special factors affecting EBITDA (160) 1,633 (1,793) n. a. 406 EBITDA (ADJUSTED FOR SPECIAL FACTORS) 10,088 9,316 772 8.3 8,561 EBITDA margin (adjusted for special factors) % 27.6 26.1 25.4 CASH CAPEX (4,661) (11,932) 7,271 60.9 (5,855) Total revenue Total revenue for the United States operating segment of EUR 36.5 billion in 2018 increased by 2.2 percent, compared to EUR 35.7 billion in 2017. In U.S. dollars, T-Mobile US’ total revenues increased by 6.8 percent year-on-year due primarily to growth in service revenue from increases in T-Mobile US’ average branded customer base primarily from the continued growth in existing and greenfield markets, the growing success of new customer segments such as T-Mobile ONETM Unlimited 55+, T-Mobile ONE Military, and T-Mobile for Business, along with lower postpaid churn in 2018, and higher connected devices, partially offset by lower branded postpaid Average Revenue per User (ARPU). Additionally, the increase in equipment revenues from a higher average revenue per device sold due to an increase in the high-end device mix and a positive impact from IFRS 15 since January 1, 2018, partially offset by a decrease in the number of devices sold and lower volumes of purchased leased devices at the end of the lease term, also contributed to the increase in total revenues. EBITDA, adjusted EBITDA In euros, adjusted EBITDA increased by 8.3 percent to EUR 10.1 billion in 2018, compared to EUR 9.3 billion in 2017. Adjusted EBITDA margin increased to 27.6 percent in 2018, compared to 26.1 percent in 2017. In U.S. dollars, adjusted EBITDA increased by 13.6 percent during the same period. Adjusted EBITDA increased due primarily to higher total revenues as discussed above, the positive impact of the reimbursements from our insurance carriers, net of costs incurred related to hurricanes, for 2018 of USD 247 million, compared to costs incurred related to hurricanes for 2017 of USD 294 million, as well as from the positive impact from IFRS 15 and lower losses on equipment sales. These increases were partially offset by higher employee-related costs, costs related to managed services, higher lease, employee-related and repair and maintenance costs associated with network expansion, higher commissions, and lower gains on the disposal of spectrum. EBITDA for 2018 included special factors of EUR -0.2 billion compared to special factors of EUR 1.6 billion for 2017. Special factors in 2018 mainly included costs related to the proposed Sprint transaction. The decrease in special factors was primarily due to a spectrum impairment reversal in 2017. Overall, EBITDA decreased by 9.3 percent to EUR 9.9 billion in 2018, compared to EUR 10.9 billion in 2017, due to the factors described above, including special factors. EBIT EBIT decreased to EUR 4.6 billion in 2018 compared to EUR 5.9 billion in 2017 driven by lower EBITDA and higher depreciation related to the continued build-out of our 4G LTE network, and the implementation of the first component of our new billing system. Cash capex Cash capex decreased to EUR 4.7 billion in 2018, compared to EUR 11.9 billion in 2017. In U.S. dollars, cash capex decreased to USD 5.5 billion compared to USD 13.2 billion in 2017, due primarily to spectrum licenses acquired in 2017. Excluding the effects of spectrum acquisitions, the increase in cash capex from 2017 to 2018 was not significant. Cash capex in 2018 was related to network build and the continued deployment of 600 MHz. schließen Postpaid Customers who pay for communication services after receiving them (usually on a monthly basis). schließen Carrier A telecommunications network operator. schließen Prepay/prepaid In contrast to postpay contracts, prepay communication services are services for which credit has been purchased in advance with no fixed-term contractual obligations. schließen 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. schließen 4G Refers to the fourth-generation mobile communications standard that supports higher transmission rates (see LTE). schließen LTE - Long Term Evolution New generation of 4G mobile communications technology using, for example, wireless spectrum on the 800 MHz band freed up by the digitization of television. Powerful TV frequencies enable large areas to be covered with far fewer radio masts. LTE supports speeds of over 100 Mbit/s downstream and 50 Mbit/s upstream, and facilitates new services for cell phones, smartphones, and tablets.