20 Net revenue

Net revenue breaks down into the following revenue categories:

In light of the IFRS Interpretations Committee’s agenda decision published in May 2022 on transactions involving the commercial resale of software, Deutsche Telekom has implemented comprehensive changes to its accounting practices with respect to distinguishing between gross and net revenues, effective the start of the third quarter of 2022. Prior-year comparatives were adjusted retrospectively.

For further information on the aforementioned business transactions, please refer to the section “Changes in accounting policies and changes in the reporting structure” under “Summary of accounting policies.”

Net revenue for the reporting year was EUR 114.2 billion, up EUR 6.6 billion on the prior-year level. The United States operating segment in particular contributed to the positive revenue trend with an increase, mainly due to exchange rate effects. The Germany operating segment also recorded a positive development on the back of increased mobile and fixed-network service revenues. Contrasting developments were recorded in the Europe operating segment (mainly due to the sale of the Romanian fixed-network business on September 30, 2021) and in the Group Development operating segment (mainly due to the sale of T‑Mobile Netherlands on March 31, 2022).

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 (partially) not been fulfilled at the end of the reporting year (hereinafter: outstanding transaction price) amounts to EUR 25.6 billion (2021: EUR 20.0 billion).

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 subsequent operation phase has a duration of 12 years, with the additional option for Viapass to extend the term three times by 1 year. Satellic has no entitlement to the toll revenue collected but receives 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 85 million in the reporting year (2021: EUR 75 million, 2020: EUR 79 million).