Financial position of Deutsche Telekom AG

In addition to shareholders’ equity, our financial position is mainly determined by noncurrent assets as well as by receivables from and payables to Group companies. Loans recognized under financial assets as well as receivables from and payables to affiliated companies primarily resulted from financing relationships between Deutsche Telekom AG and its subsidiaries.

The balance sheet total increased by EUR 10.0 billion year-on-year to EUR 133.4 billion.

The development of total assets was attributable in particular to the increase of EUR 12.5 billion in financial assets and the increase of EUR 0.5 billion in cash and cash equivalents. By contrast, receivables decreased by EUR 2.3 billion and other assets by EUR 0.6 billion.

The increase in financial assets of EUR 12.5 billion mainly resulted from the use of hidden reserves in connection with the intragroup aggregation of shares in the multi-level holding structure for T‑Mobile US through transfers at fair value.

Receivables decreased to EUR 7.6 billion, down by EUR 2.3 billion compared to the prior year. This decline was due in particular to the repayment of cash management receivables from Deutsche Telekom Towers Holding GmbH, Bonn, in the amount of EUR 3.7 billion through a loan repayment to the company. The grant of a short-term loan to Deutsche Telekom International Finance B.V., Maastricht, in the amount of EUR 1.7 billion had an offsetting effect.

The decrease of EUR 0.6 billion in other assets is due primarily to lower receivables from Deutsche Telekom Trust e. V., Bonn, arising from credit balances on securities accounts.

The development of total shareholders’ equity and liabilities was mainly influenced by the increase of EUR 14.9 billion in shareholders’ equity and of EUR 1.3 billion in financial liabilities. The decline of EUR 5.6 billion in remaining liabilities, of EUR 0.3 billion in accruals for pensions and similar obligations, and of EUR 0.2 billion in other accruals had an offsetting effect.

The increase in shareholders’ equity of EUR 14.9 billion was primarily attributable to net income of EUR 20.6 billion for the 2024 financial year. The dividend payment of EUR 3.8 billion for the previous year had a reducing effect. The share buy-back program reduced retained earnings by EUR 1.8 billion and capital stock by EUR 0.2 billion.

Accruals for pensions and similar obligations fell by EUR 0.3 billion. Payments of pension entitlements and the higher fair value of the plan assets offset against obligations more than compensated for the current service cost and interest cost as well as a reimbursement from the plan assets.

Other accruals decreased by EUR 0.2 billion. The prior-year figure had included accruals of EUR 0.4 billion for early retirement arrangements for civil servants. As the statutory regulation has not yet been extended beyond 2024, further early retirement programs for civil servants are currently not in sight.

Financial liabilities increased by EUR 1.3 billion year-on-year to EUR 10.7 billion, due primarily to the issue of new bonds in the amount of EUR 1.7 billion. Repayments of loans reported in the previous year amounting to EUR 0.5 billion had an offsetting effect.

The decrease in remaining liabilities totaling EUR 5.6 billion was attributable primarily to loan repayments to Deutsche Telekom Towers Holding GmbH, Bonn, of EUR 6.3 billion and to Deutsche Telekom International Finance B.V., Maastricht, of EUR 2.2 billion. This was offset by liabilities from cash management. In particular, the repayment of a loan to Deutsche Telekom Towers Holding GmbH, Bonn, as part of the intragroup cash management resulted in the net increase in a corresponding liability of EUR 2.6 billion.

Net cash provided by operating activities increased by EUR 6.9 billion year-on-year to EUR 15.6 billion and was mainly influenced by income related to subsidiaries, associated and related companies and the change in intragroup cash management balances. The increase is due in particular to the change of EUR 6.3 billion in cash management balances vis-à-vis Deutsche Telekom Towers Holding GmbH, Bonn, resulting from the payment of the proceeds from the sale of shares in GD Towers Holding GmbH, Bonn, collected by Deutsche Telekom AG in the prior year.

Net cash used for investing activities amounted to a slightly negative figure of EUR ‑0.2 billion, which corresponds to a change of EUR ‑0.2 billion year-on-year. The main cash inflows resulted from interest received of EUR 1.1 billion and repayments of medium- and long-term loans by subsidiaries in the amount of EUR 0.8 billion. The grant of a short-term loan to Deutsche Telekom International Finance B.V., Maastricht, of EUR 1.7 billion and the acquisition of 6.7 million shares in T‑Mobile US, Inc., Bellevue, for EUR 0.6 billion in connection with the exercise of fixed-price options had an offsetting effect.

Net cash used for financing activities increased by EUR 7.4 billion year-on-year to EUR 14.9 billion. In the reporting year, it mainly included net repayments of financial liabilities to affiliated companies in the amount of EUR 8.2 billion. Net cash used for financing activities also resulted from payment of the dividend for the 2023 financial year of EUR 3.8 billion, from interest paid of EUR 2.1 billion, and from payments for share buy-backs of EUR 2.0 billion. The net issuance of financial liabilities of EUR 1.2 billion had an offsetting effect.

In all, this resulted in an increase in cash and cash equivalents of EUR 515 million in the reporting year.