Group Headquarters & Group Services
Development of operations
millions of € |
|
|
|
|
|
||
|---|---|---|---|---|---|---|---|
|
2021 |
2020 |
Change |
Change |
2019 |
||
Total revenue |
2,515 |
2,556 |
(41) |
(1.6) |
2,627 |
||
Service revenuea |
984 |
970 |
14 |
1.4 |
n.a. |
||
Profit (loss) from operations (EBIT) |
(1,764) |
(1,655) |
(109) |
(6.6) |
(1,631) |
||
Depreciation, amortization and impairment losses |
(1,463) |
(1,304) |
(159) |
(12.2) |
(1,143) |
||
EBITDA |
(300) |
(350) |
50 |
14.3 |
(488) |
||
Special factors affecting EBITDA |
(182) |
(277) |
95 |
34.3 |
(237) |
||
EBITDA (adjusted for special factors) |
(118) |
(73) |
(45) |
(61.6) |
(251) |
||
EBITDA AL |
(622) |
(707) |
85 |
12.0 |
(887) |
||
Special factors affecting EBITDA AL |
(182) |
(277) |
95 |
34.3 |
(237) |
||
EBITDA AL (adjusted for special factors) |
(440) |
(429) |
(11) |
(2.6) |
(650) |
||
Cash capex |
(1,007) |
(990) |
(17) |
(1.7) |
(1,010) |
||
|
|||||||
Total revenue, service revenue
Total revenue in our Group Headquarters & Group Services segment decreased in 2021 by 1.6 % year-on-year, mainly as a result of lower revenue from land and buildings due to the ongoing optimization of space. Higher intragroup service revenues at Deutsche Telekom IT from the licensing of the ERP system had an offsetting effect.
Adjusted EBITDA AL, EBITDA AL
Adjusted EBITDA AL at Group Headquarters & Group Services decreased by EUR 11 million year-on-year to EUR ‑440 million, largely as a result of falling revenue from land and buildings, and lower income from real estate sales. Increased service revenues at Deutsche Telekom IT from the licensing of the ERP system and from lower operating expenses at our Group Services had a positive effect.
Overall, EBITDA AL was negatively impacted in the reporting year by special factors amounting to EUR 182 million, especially for staff-related measures. This contrasts with special factors of EUR 277 million in the prior-year period, also in particular for staff-related measures.
EBIT
The year-on-year decline in EBIT of EUR 109 million to EUR ‑1.8 billion was largely a result of two contrasting effects: the significant increase in depreciation and amortization 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. In addition, depreciation, amortization and impairment losses increased due to higher capitalization in connection with the licensing of the ERP system. By contrast, depreciation, amortization and impairment losses from land and buildings decreased as a result of our continued optimization of the real estate portfolio. Impairment losses were also recognized by the Group Headquarters & Group Services segment in the reporting year totaling EUR 21 million on software used by the Systems Solutions operating segment. In the prior year, EUR 44 million had related to the Group Headquarters & Group Services segment in this connection.
Cash capex
Cash capex increased year-on-year by EUR 17 million. Increased investment at Group Headquarters contrasted with lower cash capex for vehicles and lower investment in technology and innovation, mainly for development activities.