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. In the Germany operating segment, total revenue was up 1.9 % against the prior year. This increase was primarily driven by service revenues in the fixed-network and mobile business. Total revenue in the United States operating segment increased by 11.3 % year-on-year. In U.S. dollars, T‑Mobile US’ total revenue decreased slightly year-on-year. Total revenue was primarily impacted by lower equipment revenues, partially offset by higher service revenues. Total revenue in our Europe operating segment decreased by 1.2 % compared with the previous year. 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 3.9 % 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 up 1.4 % year-on-year. The positive revenue trend was attributable to growth particularly in the Digital Solutions (+8.9 %), Road Charging (+23.6 %), and Advisory (+11.3 %) portfolio units. This trend more than compensated for the expected decline in traditional IT infrastructure business, due in part to deliberate business decisions such as the reduction in end user services. Total revenue in our Group Development operating segment decreased by 46.0 % year-on-year as a consequence of the sale of T‑Mobile Netherlands as of March 31, 2022. In organic terms, revenue increased by 6.5 % year-on-year.
Deutsche Telekom AG reported income after taxes for the 2022 financial year of EUR 4.0 billion. Alongside the operating business, the development of business was affected in particular by intragroup disposals of interests at fair value in the reporting year to create the target structure under company law for the sale of a 51.0 % stake in companies of the cell tower business in Germany and Austria to DigitalBridge and Brookfield, which was consummated on February 1, 2023.