Development of business at Deutsche Telekom AG
Deutsche Telekom AG prepares its annual financial statements in accordance with the principles of the 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 2.1 % against the prior year. This was mainly attributable to growth in service revenues in the fixed-network core business and mobile business. Total revenue in the United States operating segment increased by 3.6 % year-on-year. In U.S. dollars, T‑Mobile US’ total revenues also rose by 3.6 %. Total revenue increased primarily due to higher service revenues, offset by a decline in other revenues. Revenue in our Europe operating segment climbed by 4.7 % year-on-year. Growth in service revenues was due on the one hand to the strong performance of the mobile business. On the other hand, the year-on-year increase in fixed-network service revenues additionally contributed to this growth. Revenue in our Systems Solutions operating segment was up 2.8 % year-on-year, mainly due to growth in the Digital, Cloud, and Road Charging portfolio areas.
Deutsche Telekom AG reported net income for the 2024 financial year of EUR 20.6 billion. This includes book gains of EUR 12.8 billion arising from the use of hidden reserves in connection with the intragroup aggregation of shares in the multi-level holding structure for the investment in T‑Mobile US after Deutsche Telekom AG had exercised call options to acquire additional shares of T‑Mobile US in the reporting year and previous financial years. EUR 0.6 billion of this figure relates to the intragroup transfer of the acquired T‑Mobile US shares to Deutsche Telekom Holding B.V., Maastricht, which thus consolidates all T‑Mobile US shares held in the Group, while EUR 12.2 billion relates to the subsequent transfer of shares in an intermediate holding company. A further EUR 5.7 billion stems from an intragroup capital repayment by Deutsche Telekom Holding B.V., Maastricht. The capital repayment mainly included proceeds from the sale of T‑Mobile US shares and dividends from T‑Mobile US at the level of Deutsche Telekom Holding B.V., Maastricht.