Comparison of the Group’s expectations with actual figures
In the 2023 Annual Report, we outlined expectations for the 2024 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 2023, the results expected for the reporting year, and the actual results achieved in 2024. The performance indicators that we also forecast in the 2023 Annual Report and their development are presented in the individual sections.
The comparison shown in the table of the pro forma figures for 2023 and the expectations formulated on this basis for 2024 with the results actually generated for 2024 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., using constant exchange rates and a comparable consolidated group. However, the differences from the results actually generated are of minor relevance, since the average U.S. dollar exchange rate was unchanged in 2024 at USD 1.08 and the changes to the composition of the Group were minimal.
We can once again look back on a successful financial year. We met or exceeded our expectations. In organic terms, i.e., adjusted for exchange rate effects and changes to the composition of the Group, revenue increased as expected by 3.3 %. Our service revenue grew even more substantially than revenue, increasing by 3.7 % on an organic basis. Our adjusted EBITDA AL increased by 6.0 % in organic terms, despite the strategic withdrawal from the terminal equipment lease business model in the United States, thereby meeting our most recently stated guidance of around EUR 43.0 billion as well. As expected, EBIT declined significantly in 2024, due to income recognized in 2023 in connection with the sale of shares in GD Towers. Owing to our favorable operational development and a number of non-recurring effects, adjusted earnings per share surpassed our expectations, reaching EUR 1.90. ROCE declined less sharply than expected due to unplanned reversals of impairment losses on FCC licenses at T‑Mobile US and on our investments in GD Towers and GlasfaserPlus. At EUR 19.2 billion, free cash flow AL (before dividend payments and spectrum investment) even exceeded our latest guidance of around EUR 19.0 billion. Cash capex (before spectrum investment) was more or less as expected.
We are also well on track with our non-financial performance indicators. In our domestic market of Germany, we even recorded a strong increase of 11.6 % in mobile customers, attributable to both prepaid customer business, primarily due to M2M SIM cards used in the automotive industry, and 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 above our expectations. Our Europe operating segment recorded growth in customer numbers, as expected. The growth in mobile customers was primarily attributable to the increase in the number of contract customers. Since January 1, 2024, customers of a wholesale service provider are reported as prepaid customers in Austria. Without this adjustment, the number of prepaid customers remained at the prior-year level. The increase in order entry in our Systems Solutions operating segment was mainly due to deals concluded in the Cloud and Digital portfolio areas.
At the end of the reporting year, customer satisfaction came in at 77.6 points compared with 76.2 points at the end of the prior year. The Germany, Europe, and Systems Solutions operating segments contributed to the ongoing positive development with improvements in customer loyalty. Employee satisfaction was most recently measured in November 2024 and increased year-on-year from 76 to 77 points, thus remaining steadfastly high, as expected. The Group’s energy consumption recorded an encouraging decline instead of the expected slight increase, because in particular the United States was able to achieve greater savings than expected in the original planning. The decline in CO2 emissions was in line with our expectations (regardless of whether or not changes in methods and structure are taken into account).
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.”
For further information on the expected trends in our main financial and non-financial performance indicators in 2025 and 2026, please refer to the section “Forecast.”