Group Headquarters & Group Services
Development of operations
millions of € |
|
|
|
|
|
||||
|---|---|---|---|---|---|---|---|---|---|
|
2020 |
2019 |
Change |
Change |
2018 |
||||
Total revenue |
2,556 |
2,627 |
(71) |
(2.7) |
2,735 |
||||
Profit (loss) from operations (EBIT) |
(1,655) |
(1,631) |
(24) |
(1.5) |
(1,646) |
||||
Depreciation, amortization and impairment losses |
(1,304) |
(1,143) |
(161) |
(14.1) |
(812) |
||||
EBITDA |
(350) |
(488) |
138 |
28.3 |
(833) |
||||
Special factors affecting EBITDA |
(277) |
(237) |
(40) |
(16.9) |
(318) |
||||
EBITDA (adjusted for special factors) |
(73) |
(251) |
178 |
70.9 |
(515) |
||||
EBITDA ALa |
(707) |
(887) |
180 |
20.3 |
(917) |
||||
Special factors affecting EBITDA ALa |
(277) |
(237) |
(40) |
(16.9) |
(318) |
||||
EBITDA AL (adjusted for special factors)a |
(429) |
(650) |
221 |
34.0 |
(599) |
||||
Cash capexb |
(990) |
(1,010) |
20 |
2.0 |
n.a. |
||||
|
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Total revenue
Total revenue in our Group Headquarters & Group Services segment decreased in 2020 by 2.7 % year-on-year as a result of lower revenue from land and buildings, largely due to the ongoing optimization of space. Lower intragroup revenues at Deutsche Telekom IT on account of a reduced revenue-relevant cost basis also had an effect.
Adjusted EBITDA AL, EBITDA AL
Adjusted EBITDA AL at Group Headquarters & Group Services increased by EUR 221 million year-on-year to EUR -429 million. This increase was mainly due to lower operating expenses at our Group Services, higher income from real estate sales, and the reduced headcount at Vivento as a result of the continued staff restructuring. Furthermore, lower IT-related costs at Deutsche Telekom IT had a positive impact. By contrast, lower revenue from land and buildings had a negative impact on adjusted EBITDA AL.
Overall, EBITDA AL was negatively impacted in the reporting year by special factors amounting to EUR 277 million, especially for staff-related measures. This contrasts with special factors of EUR 237 million in the prior-year period, also in particular for staff-related measures.
EBIT
The moderate year-on-year decline in EBIT of EUR 24 million to EUR -1.7 billion was largely a result of two contrasting effects: the increase in depreciation, amortization and impairment losses on the one hand, and the positive development of EBITDA AL on the other. The increase in depreciation, amortization and impairment losses is mainly attributable to the increased volume of output in connection with the introduction of agile processes and shorter project runtimes at Deutsche Telekom IT. Depreciation and amortization also rose following the decision to capitalize newly commissioned domestic intragroup development services at Deutsche Telekom IT since January 2016 instead of charging them internally. An impairment loss was also recognized in the amount of EUR 44 million on software used by the Systems Solutions operating segment. This was a consequence of the ad hoc impairment testing carried out in the Systems Solutions cash-generating unit. By contrast, depreciation, amortization and impairment losses from land and buildings decreased as a result of our continued optimization of the real estate portfolio.
Cash capex
Cash capex decreased by EUR 20 million year-on-year, primarily owing to decreased investment in real estate-related construction and project services and lower cash capex for vehicles.