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20 Net revenue

Net revenue breaks down into the following revenue categories:

millions of €

 

 

 

 

2021

2020

2019a

Revenue from the rendering of services

85,087

79,807

65,593

Germany

20,484

20,017

19,821

United States

50,418

45,653

31,313

Europe

9,386

9,428

9,613

Systems Solutions

3,081

3,087

3,277

Group Development

1,634

1,545

1,497

Group Headquarters & Group Services

83

77

71

Revenue from the sale of goods and merchandise

19,595

16,054

12,907

Germany

2,399

2,187

2,298

United States

15,153

11,922

8,569

Europe

1,558

1,484

1,553

Systems Solutions

67

72

93

Group Development

417

389

394

Group Headquarters & Group Services

1

0

0

Revenue from the use of entity assets by others

4,112

5,138

2,031

Germany

694

815

829

United States

2,785

3,631

536

Europe

219

227

229

Systems Solutions

24

78

47

Group Development

281

269

266

Group Headquarters & Group Services

109

118

124

Net revenueb

108,794

100,999

80,531

a

The breakdown of revenue categories for the 2019 financial year was adjusted retrospectively in connection with the realignment of the B2B telecommunications business.

b

Revenue includes interest income of EUR 276 million in the reporting year, calculated using the effective interest method (2020: EUR 278 million, 2019: EUR 345 million). This income is primarily attributable to accrued interest on receivables in connection with handsets sold under installment plans in the United States operating segment.

Net revenue for the reporting year was EUR 108.8 billion, up EUR 7.8 billion on the prior-year level. The United States operating segment in particular contributed to the positive revenue trend, mainly thanks to the positive business performance and the inclusion of Sprint for the full year for the first time. But the other operating segments also achieved positive growth rates, with the only exception being Systems Solutions, where revenue was negatively impacted by the expected decline in traditional IT infrastructure business.

For information on changes in net revenue, please refer to the section “Development of business in the Group” in the combined management report.

The total transaction price attributable to performance obligations that have not been fulfilled or, in some cases, not yet fulfilled at the end of the reporting year (hereinafter: outstanding transaction price) amounts to EUR 19,955 million (2020: EUR 23,055 million; this figure was adjusted retrospectively in the reporting year).

The portion of the outstanding transaction price attributable to performance obligations that have not been fulfilled or not yet completely fulfilled at the end of the reporting year is generally recognized as revenue over the remaining term of the service contracts concluded. Since most service contracts – unless they can be canceled at any time – have a minimum contract term of 24 months, an average remaining term of approximately 12 months can be assumed, provided the course of business in the mass business remains virtually unchanged. The disclosures only refer to transactions within the scope of IFRS 15, i.e., they do not include portions of the transaction price being allocated to performance obligations outside the scope of the standard, e.g., leases.

Deutsche Telekom generally makes use of the practical expedients in IFRS 15, according to which outstanding performance obligations under contracts with an expected original term of no more than one year and revenues recognized in accordance with the billed amounts are exempt from the disclosure requirement. Individual subsidiaries deviate from this general approach and have not made use of these practical expedients for groups of contracts with similar characteristics.

Service concession arrangements

Satellic NV, Machelen, Belgium, is a fully consolidated subsidiary of Deutsche Telekom and on July 25, 2014 signed a contractual arrangement with Viapass, the public agency responsible for toll collection in Belgium, for the set-up, operation, and financing of an electronic toll collection system. After Viapass accepted the system on March 30, 2016, the set-up phase was completed on March 31, 2016. The operation phase that follows will have a duration of 12 years, with the additional option for Viapass to extend the term three times by one year. Satellic has no entitlement to the toll revenue collected but will receive contractually agreed fees for setting up and operating the system. Viapass is authorized to terminate the arrangement giving notice of six months with payment of reasonable compensation. In the event of regular or premature termination of the agreement, Satellic has an obligation to hand over to Viapass, on request, material assets for the operation of the toll collection system that have not yet passed to the ownership of Viapass; in such an event, however, the software platform for toll collection would not be handed over to Viapass. The agreement was classified as a service concession arrangement within the meaning of IFRIC 12. Since the start of the operation phase on April 1, 2016, the separate fees for operation and maintenance services have been recognized as revenue in the respective periods, which totaled EUR 75 million in the reporting year (2020: EUR 79 million, 2019: EUR 66 million).