Comparison of the Group’s expectations with actual figures
In the 2022 Annual Report, we outlined expectations for the 2023 financial year for our financial and non-financial key performance indicators anchored in our management system. The following tables summarize the pro forma figures for 2022, the results expected for the reporting year, and the actual results achieved in 2023. The performance indicators that we also forecast in the 2022 Annual Report and their development are presented in the individual sections.
The comparison shown in the table of the pro forma figures for 2022 and the expectations formulated on this basis for 2023 with the results actually generated for 2023 is not like for like, i.e., these figures are not based on comparable exchange rates or a comparable composition of the Group. Below, we describe the results achieved on a like-for-like basis, i.e., at comparable exchange rates and excluding the results of GD Towers up to the date of deconsolidation on February 1, 2023.
We can once again look back with satisfaction on a successful financial year. Overall, we met or significantly exceeded our expectations. Despite lower equipment revenues in the United States operating segment, our revenue increased slightly in organic terms, i.e., adjusted for exchange rate effects and changes to the composition of the Group, while revenues decreased slightly on an inorganic basis. Our service revenue grew substantially by 3.6 % on an organic basis. Adjusted EBITDA AL increased in organic terms by 4.0 %, despite the strategic withdrawal from the terminal equipment lease business model in the United States. Taking the premises we formulated for our guidance into account, i.e., excluding the results of GD Towers and negative exchange rate effects, we met our most recently communicated guidance of around EUR 41.1 billion. In line with our strong operational performance, adjusted earnings per share met our guidance at EUR 1.60, when taking into account the exchange rate assumed when formulating our guidance. As expected, we also recorded a strong increase of 9.0 % for ROCE due to income from the sale of shares in GD Towers. At EUR 16.1 billion, free cash flow AL (before dividend payments and spectrum investment) clearly exceeded our latest guidance of over EUR 16.1 billion, taking negative exchange rate effects into account. Cash capex (before spectrum investment), taking negative exchange rate effects into account, was as expected.
We are also largely on track with our non-financial performance indicators. In our domestic market of Germany, we even recorded a strong increase of 13.2 % in mobile customers, due in part to the high-value contract customer business under the Deutsche Telekom and congstar brands. Fixed-network and broadband lines developed as expected. In the United States operating segment, postpaid and prepaid customer numbers increased in line with our expectations. Our Europe operating segment recorded growth in customer numbers as expected, with fixed-network lines even recording an increase, thanks primarily to a strong increase in the Czech Republic. Order entry in our Systems Solutions operating segment fell short of the stated guidance, mainly due to the high-volume deals concluded in the prior year. Furthermore, the original planning did not take into account the reassignment of Multimedia Solutions to the Germany operating segment.
At the end of the reporting year, customer satisfaction came in at 76.2 points compared with an adjusted baseline figure of 75.0 points at the start of the year. Following changes to the revenue shares contributed by each country and in order to create an equivalent basis for comparing the Group’s expectations with actual figures, we recalculated the baseline figure for 2023 on the basis of the new structures these changes entailed. The new baseline thus diverges from the figure of 76.0 reported as of December 31, 2022. The Germany, Europe, and Systems Solutions operating segments contributed to the ongoing positive development with improvements in customer loyalty. Employee satisfaction remained at a high level of 76 points in 2023, although this is down slightly against the prior year. The slight dip in the engagement score is attributable in part to transformation processes in some business units, which have been challenging for parts of the workforce as they have entailed, for example, a need for adjustments in skills development. The Group’s energy consumption and CO2 emissions recorded an encouraging decline instead of the expected slight increase or increase, respectively, because in particular the United States was able to achieve greater savings than expected in the original planning.
For further information on the trends in our main financial and non-financial performance indicators, please refer to the relevant passages in this section as well as in the section “Development of business in the operating segments.”