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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. Total revenue in the United States operating segment increased by 11.7 % year-on-year. This increase was mainly attributable to higher service and terminal equipment revenues. In the Germany operating segment, total revenue was up 1.6 % against the prior year. This increase was primarily driven by service revenues in the fixed network and mobile business. Total revenue rose by 0.4 % compared with the previous year in the Europe operating segment. In organic terms, i.e., adjusted for the sale of the Romanian fixed-network business as of September 30, 2021 and assuming constant exchange rates, revenue increased by 2.4 % against the prior-year level. Organic growth was mainly driven by the strong performance of the mobile business. Total revenue in our Systems Solutions operating segment was down 3.4 % year-on-year. This decrease was mainly driven by the expected decline in traditional IT infrastructure business, due in part to deliberate business decisions such as the reduction in end-user services. By contrast, our growth areas grew significantly, especially Public Cloud (+19.2 %), Digital Solutions (+13.5 %), and Road Charging (+13.4 %). Total revenue in our Group Development operating segment increased by 9.8 % year-on-year. In organic terms, i.e., adjusted for the sale of the Dutch cell tower business as of June 1, 2021, the transfer of the Austrian cell tower business as of January 1, 2021, as well as the acquisition of the Dutch MVNO and SIM provider Simpel as of December 1, 2020, revenue increased by 4.6 %.

Deutsche Telekom AG reported income after taxes for the 2021 financial year of EUR 3.6 billion. Alongside the operating business, the development of business in the reporting year was affected by a large number of other factors, including a capital repayment based on fair values by T‑Mobile Global Holding GmbH, Bonn, to T‑Mobile Global Zwischenholding GmbH, Bonn.

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
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