Group Development

Customer development

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thousands
		Dec. 31, 2020	Dec. 31, 2019	Change	Change %	Dec. 31, 2018
T‑Mobile Netherlands	Mobile customers	6,803	5,610	1,193	21.3	4,021
	Fixed-network lines	682	619	63	10.2	241
	Broadband customers	668	605	63	10.4	241

The number of mobile customers and fixed-network lines in the Netherlands continued to increase steadily on the back of the positive development of operational business. The acquisition of the Dutch MVNO and SIM provider Simpel as of December 1, 2020 increased the mobile customer base by around 1.0 million. In mobile communications, our portfolio of rate plans with large data volumes through to unlimited data continued to win us new customers despite the deteriorated economic situation in consequence of the coronavirus pandemic, as well as intense competition. The number of customers in the fixed-network consumer portfolio also continued to grow.

Development of operations

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millions of €

2020

2019

Change

Change
%

2018

Total revenue

2,883

2,797

3.1

2,185

Of which: T‑Mobile Netherlands

1,946

1,910

1.9

1,322

Of which: GD Towers

989

945

4.7

862

Profit (loss) from operations (EBIT)

562

615

(53)

(8.6)

560

Depreciation, amortization and impairment losses

(780)

(812)

3.9

(334)

EBITDA

1,343

1,427

(84)

(5.9)

893

Special factors affecting EBITDA

(43)

(140)

n.a.

(27)

EBITDA (adjusted for special factors)

1,386

1,330

4.2

921

Of which: T‑Mobile Netherlands

639

591

8.1

425

Of which: GD Towers

786

771

1.9

529

EBITDA AL^a

1,058

1,130

(72)

(6.4)

865

Special factors affecting EBITDA AL^a

(43)

(140)

n.a.

(27)

EBITDA AL (adjusted for special factors)^a

1,101

1,033

6.6

892

Of which: T‑Mobile Netherlands

554

502

10.4

413

Of which: GD Towers

587

563

4.3

509

EBITDA AL margin (adjusted for special factors)^a

38.2

36.9

40.8

Cash capex

(699)

(452)

(247)

(54.6)

(271)

^a	Comparatives for 2018 were calculated on a pro forma basis for the key performance indicators redefined as of January 1, 2019 following the introduction of the IFRS 16 accounting standard.

Total revenue

Total revenue in our Group Development operating segment increased in 2020 by 3.1 % year-on-year to EUR 2.9 billion, thanks to the operational growth of our two subsidiaries, T‑Mobile Netherlands and DFMG. In the Netherlands, customer growth in the mobile and fixed-network business, higher terminal equipment sales, and the acquisition of Simpel effective December 1, 2020 contributed to the revenue growth. The GD Towers unit also recorded a year-on-year increase in revenue, driven by volume-based growth at DFMG.

Adjusted EBITDA AL, EBITDA AL

Adjusted EBITDA AL increased year-on-year from EUR 1.0 billion to EUR 1.1 billion. This growth was attributable to the aforementioned positive revenue trend at T‑Mobile Netherlands, synergies from the takeover of Tele2 Netherlands, and efficient cost management in the company. The GD Towers business continued to post consistent growth on the back of rising volumes. By contrast, EBITDA decreased by 6.4 % to EUR 1.1 billion. This was primarily due to negative special factors of EUR 43 million arising in part from consulting services in connection with the business combination of T‑Mobile US and Sprint and the integration of Tele2 Netherlands at T‑Mobile Netherlands. The prior-year figure included positive net special factors of EUR 97 million, mainly resulting from the allocation of our share of 11 % in Ströer SE & Co. KGaA to Deutsche Telekom Trust e.V.

EBIT

EBIT decreased by 8.6 % year-on-year to EUR 562 million, mainly as a result of the special factors described under adjusted EBITDA AL. Depreciation, amortization and impairment losses were down on the prior-year period.

Cash capex

Cash capex increased by EUR 247 million year-on-year to EUR 699 million, mainly due to the acquisition of mobile licenses by T‑Mobile Netherlands. It also grew as a result of additional investments for the 5G build-out and those required to integrate Tele2 Netherlands and higher capital expenditure at DFMG in connection with building out mobile infrastructure in Germany.

New communications standard (launched from 2020), which offers data rates in the gigabit range, converges fixed-network and mobile communications, and supports the Internet of Things.

Glossary

Fixed-network lines

Lines in operation excluding internal use and public telecommunications, including IP-based lines. The totals reported in the combined management report were calculated on the basis of precise figures and rounded to millions or thousands. Percentages were calculated on the basis of the figures shown.

Glossary

MVNO – Mobile Virtual Network Operator

Company that offers mobile minutes at relatively low prices without subsidized handsets. A mobile virtual network operator does not have its own wireless network, but uses the infrastructure of another mobile operator to provide its services.

Glossary

Mobile customers

In the combined management report, one mobile communications card corresponds to one customer. The totals were calculated on the basis of precise figures and rounded to millions or thousands. Percentages were calculated on the basis of the figures shown (see also SIM card).

Glossary

SIM card – Subscriber Identification Module card

Chip card that is inserted into a cell phone to identify it in the mobile network. Deutsche Telekom counts its customers by the number of SIM cards activated and not churned. Customer totals also include the SIM cards with which machines can communicate automatically with one another (M2M cards). The churn rate is determined and reported based on the local markets of the respective countries.

Glossary

Group Development

Customer development

Development of operations

Total revenue

Adjusted EBITDA AL, EBITDA AL

EBIT

Cash capex

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