Group Headquarters & Group Services
Development of operations
millions of € |
|
|
|
|
|
||
|---|---|---|---|---|---|---|---|
|
2023 |
2022 |
Change |
Change |
2021 |
||
Revenue |
2,305 |
2,407 |
(102) |
(4.2) |
2,515 |
||
Service revenuea |
1,024 |
1,026 |
(2) |
(0.2) |
1,078 |
||
EBITDA |
(522) |
(361) |
(161) |
(44.6) |
(300) |
||
Special factors affecting EBITDA |
(199) |
(234) |
35 |
15.0 |
(182) |
||
EBITDA (adjusted for special factors) |
(323) |
(128) |
(195) |
n.a. |
(118) |
||
EBITDA AL |
(808) |
(672) |
(136) |
(20.2) |
(622) |
||
Special factors affecting EBITDA AL |
(199) |
(234) |
35 |
15.0 |
(182) |
||
EBITDA AL (adjusted for special factors) |
(609) |
(437) |
(172) |
(39.4) |
(440) |
||
Depreciation, amortization and impairment losses |
(1,352) |
(1,476) |
124 |
8.4 |
(1,463) |
||
Profit (loss) from operations (EBIT) |
(1,874) |
(1,837) |
(37) |
(2.0) |
(1,764) |
||
Cash capex |
(969) |
(973) |
4 |
0.4 |
(1,007) |
||
Cash capex (before spectrum investment) |
(969) |
(973) |
4 |
0.4 |
(1,007) |
||
|
|||||||
Revenue, service revenue
Revenue in our Group Headquarters & Group Services segment decreased in the reporting year by 4.2 %, mainly as a result of lower intragroup revenues from land and buildings due to the ongoing optimized use of space as well as to lower intragroup service revenues at Deutsche Telekom IT on account of a reduced revenue-relevant cost basis. By contrast, the reassignment of units in connection with the bundling of finance functions at Deutsche Telekom Services Europe, which were still assigned to the Germany operating segment in the first quarter of 2022, had an increasing effect on revenue. Against this background, organic revenue decreased by 2.7 % compared with the prior-year period.
Adjusted EBITDA AL, EBITDA AL
Adjusted EBITDA AL in the Group Headquarters & Group Services segment declined by EUR 172 million in the reporting year to EUR ‑609 million, mainly due to income from the disposal of non-current assets recognized in the prior year in connection with the further optimization of our real estate portfolio, as well as higher intragroup reimbursements, and lower revenue from land and buildings due to the ongoing optimized use of space. These effects, which had a negative impact on EBITDA AL, were partially offset by lower operating expenses in our Group Services, especially relating to land and buildings. Overall, EBITDA AL was negatively impacted in the reporting year by special factors amounting to EUR 199 million, especially for staff-related measures. In the prior-year period, EBITDA AL had been reduced by negative net special factors of EUR 234 million, with expenses for staff-related and non-staff-related restructuring measures being offset by the positive effect from the reduction in other provisions, in particular in connection with a measurement effect arising from the obligation to make additional capital contributions for defined benefit obligations vis-à-vis former employees and with the termination of legal proceedings.
Profit/loss from operations (EBIT)
The year-on-year decrease of EUR 37 million in EBIT to EUR ‑1,874 million was largely due to the decline in EBITDA AL. Depreciation, amortization and impairment losses were down by contrast, largely due to lower capitalization in connection with declines both in the licensing of the Group-wide ERP system and in land and buildings due to the ongoing optimization of our real estate portfolio. Impairment losses on software used by the Systems Solutions operating segment were lower than in the prior year.
Cash capex (before spectrum investment), cash capex
Our cash capex remained at the prior-year level. Higher cash capex for vehicles was offset by lower capital expenditure in the Technology and Innovation Board of Management department.