Net assets of the Group

Total assets amounted to EUR 304.9 billion as of December 31, 2024, up by EUR 14.6 billion against December 31, 2023. Exchange rate effects, primarily from the translation from U.S. dollars into euros, in particular had an increasing effect on the carrying amount of total assets. Our investments in spectrum licenses, the reversal of impairment losses recognized in the prior year on FCC licenses, reversals of impairment losses recognized on investments, and the issue of bonds, also had an increasing effect.

On the assets side, cash and cash equivalents increased by EUR 1.2 billion year-on-year to EUR 8.5 billion.

For further information, please refer to Note 37 “Notes to the consolidated statement of cash flows” in the notes to the consolidated financial statements.

At EUR 16.4 billion, trade receivables increased by EUR 0.3 billion against the 2023 year-end level, mainly as a result of exchange rate effects, primarily from the translation of U.S. dollars to euros. Excluding exchange rate effects, receivables in the United States operating segment declined. This is due to a lower number of new contracts with equipment installment plans, as well as lower receivables due to the termination of government assistance programs and from wholesale partners.

Intangible assets increased by EUR 13.1 billion to EUR 149.1 billion, mainly due to capital expenditure of EUR 9.6 billion, EUR 4.3 billion of which related to the acquisition of mobile spectrum in the United States operating segment. EUR 2.7 billion of this related to the acquisition of spectrum licenses in the 600 MHz band from Channel 51. In addition, T‑Mobile US received spectrum licenses worth a net EUR 0.2 billion in transactions for the exchange of spectrum licenses. Also in the United States operating segment, the reversal of impairment losses recognized on FCC licenses in prior years increased the carrying amount by EUR 2.6 billion. Effects of changes in the composition of the Group resulting from the acquisition of Ka’ena increased the carrying amount by another EUR 1.4 billion, EUR 0.7 billion of which related to the goodwill acquired in this connection. Exchange rate effects, primarily from the translation of U.S. dollars into euros, increased the carrying amount by EUR 7.3 billion. By contrast, depreciation, amortization and impairment losses decreased the carrying amount by EUR 6.7 billion. Disposals of EUR 0.2 billion also decreased the carrying amount.

Property, plant and equipment increased by EUR 1.6 billion to EUR 66.6 billion compared to December 31, 2023. Additions, primarily for the upgrade and build-out of the network (broadband, fiber-optic, and mobile infrastructure) increased the carrying amount by EUR 11.6 billion. Exchange rate effects, primarily from the translation of U.S. dollars into euros, also increased the carrying amount by EUR 1.7 billion. Reclassifications of right-of-use assets upon expiry of the contractual lease term to property, plant and equipment, primarily for network technology in the United States operating segment, increased the carrying amount by EUR 0.6 billion. Amortization and impairment losses reduced the net carrying amount by EUR 11.9 billion. This includes impairment losses of EUR 0.1 billion. Disposals also decreased the carrying amount by EUR 0.4 billion.

Right-of-use assets decreased by EUR 0.6 billion compared with December 31, 2023 to EUR 32.2 billion. Amortization and impairment losses reduced the net carrying amount by EUR 5.4 billion. The previously mentioned reclassifications to property, plant and equipment also reduced the carrying amount by EUR 0.6 billion, and disposals by EUR 0.1 billion. The carrying amount was increased by additions of EUR 3.8 billion and exchange rate effects of EUR 1.6 billion, mainly from the translation of U.S. dollars into euros.

Investments accounted for using the equity method increased by EUR 2.7 billion compared to December 31, 2023, to EUR 7.3 billion. This was mainly attributable to reversals of impairment losses in the reporting year of EUR 2.1 billion and EUR 0.3 billion, respectively, on the carrying amounts of the investments in GD Towers and in GlasfaserPlus. These reversals of impairment losses were, at GD Towers, due to lower discount rates and improved planning, and at GlasfaserPlus, almost entirely due to lower discount rates. Capital increases in the investments in GlasfaserPlus and Glasfaser NordWest also increased the respective carrying amount by EUR 0.1 billion.

Current and non-current financial assets decreased by EUR 1.8 billion to EUR 7.7 billion. The net total of originated loans and receivables decreased by EUR 1.4 billion, mainly due to lower receivables in connection with device insurance policies (EUR 0.5 billion), lower receivables from collateral agreements as surety for credit risks in connection with forward-payer swaps (EUR 0.2 billion), unscheduled repayments of shareholder loans to GD Towers (EUR 0.2 billion), and lower receivables from grants still to be received from publicly funded projects (EUR 0.3 billion). The carrying amount of debt instruments declined by EUR 0.4 billion due to the forgone contingent consideration receivable from the IFM Global Infrastructure Fund. Derivatives without a hedging relationship decreased by EUR 0.2 billion, in particular in connection with the options to acquire additional T‑Mobile US shares exercised in the financial year. Exchange rate effects increased the carrying amount of other financial assets by EUR 0.2 billion.

Non-current assets and disposal groups held for sale increased from EUR 0.2 billion compared with December 31, 2023 to EUR 0.3 billion. This increase is primarily attributable to a transaction agreed between T‑Mobile US and another telecommunications company for the exchange of spectrum licenses.

Miscellaneous assets increased by EUR 0.9 billion to EUR 13.1 billion. Contract assets of EUR 0.3 billion and higher current recoverable income taxes of EUR 0.2 billion contributed to this increase. Current and non-current other assets also contributed EUR 0.2 billion, partly due to an increase in various advance payments, and higher capitalized contract costs contributed EUR 0.2 billion.

On the liabilities and shareholders’ equity side, current and non-current financial liabilities increased by EUR 7.7 billion compared with the end of 2023 to EUR 112.2 billion.

Bonds and other securitized liabilities increased by a total of EUR 7.6 billion, mainly due to USD bonds of USD 5.5 billion (EUR 5.0 billion) issued by T‑Mobile US and EUR bonds of EUR 2.0 billion. The carrying amount was also increased by the issue of EUR bonds of EUR 1.7 billion by Deutsche Telekom AG. By contrast, scheduled repayments of a USD bond (EUR 2.3 billion), of EUR bonds (EUR 2.0 billion), and of EUR loan notes (EUR 0.1 billion) reduced the carrying amount. The early repayment of a USD bond also reduced the carrying amount by USD 1.5 billion (EUR 1.4 billion). Exchange rate effects increased the carrying amount of bonds and other securitized liabilities by EUR 4.8 billion.

Bonds collateralized by trade receivables increased by EUR 0.8 billion, mainly due to the issue of asset-backed securities by T‑Mobile US. Other non-interest-bearing liabilities increased by EUR 0.5 billion, mainly due to the stake of the cash dividend of USD 0.88 per share – declared by T‑Mobile US on November 21, 2024 – attributable to non-controlling interests in T‑Mobile US. By contrast, liabilities with the right of creditors to priority repayment in the event of default decreased by EUR 0.8 billion, mainly due to the repayment of former Sprint bonds in the United States operating segment. The repayment of an EIB loan reduced the carrying amount of liabilities to banks by EUR 0.4 billion.

Current and non-current lease liabilities decreased by EUR 0.5 billion to a total of EUR 40.2 billion compared with December 31, 2023. Lease liabilities in the United States operating segment decreased by EUR 2.2 billion, mainly due to the decommissioning of the former Sprint’s wireless network and a decline in network and build-out investments, primarily on account of higher capital efficiency resulting from the accelerated build-out of the nationwide 5G network in the prior year. Exchange rate effects, in particular from the translation of U.S. dollars into euros, raised the carrying amount by EUR 2.0 billion. Lease liabilities in the Germany operating segment and in the Group Headquarters & Group Services segment decreased by EUR 0.2 billion in each case.

Trade and other payables decreased by EUR 1.4 billion to EUR 9.5 billion, due in particular to lower liabilities in the United States, Germany, and Europe operating segments. By contrast, exchange rate effects, in particular from the translation from U.S. dollars into euros, increased the carrying amount.

Provisions for pensions and other employee benefits decreased by EUR 0.9 billion compared with December 31, 2023 to EUR 3.2 billion, mainly due to an increase in the fair values of plan assets. By contrast, the decline in the discount rate compared with December 31, 2023 increased the carrying amount.

Current and non-current other provisions decreased by EUR 0.2 billion to EUR 7.9 billion compared with the end of 2023. Provisions for litigation risks decreased by EUR 0.4 billion compared with the prior year, mainly due to payments to settle the consumer class action in the Federal Court in connection with the cyberattack on T‑Mobile US in August 2021. Provisions for termination benefits decreased by EUR 0.2 billion. In the prior year, expenses were recognized in connection with the program to reduce the workforce implemented by T‑Mobile US. The decrease is primarily attributable to the cash outflows resulting from this program in the financial year. By contrast, other provisions for personnel costs increased by EUR 0.4 billion, mainly due to an increase in provisions for short- and long-term variable remuneration components and the provisions for phased retirement.

Miscellaneous liabilities increased from EUR 8.8 billion as of December 31, 2023 to EUR 9.0 billion, mainly due to an increase of EUR 0.6 billion in contract liabilities. By contrast, other liabilities declined by EUR 0.4 billion, primarily as a result of lower liabilities due to existing build-out obligations in connection with grants still to be received from funding projects for the broadband build-out in Germany, as well as declining liabilities from other taxes.

Shareholders’ equity increased by EUR 7.4 billion as of December 31, 2023 to EUR 98.6 billion, with profit of EUR 17.7 billion and other comprehensive income of EUR 4.7 billion having an increasing effect. Higher capital increases from share-based payments also increased the carrying amount of shareholders’ equity by EUR 0.8 billion. Transactions with owners reduced the carrying amount of shareholders’ equity by EUR 7.7 billion, due in particular to the T‑Mobile US share buy-back program from September 2023. The carrying amount was also reduced in connection with dividend payments for the 2023 financial year to Deutsche Telekom AG shareholders in the amount of EUR 3.8 billion and to other shareholders of subsidiaries in the amount of EUR 2.2 billion. The latter figure includes in particular cash dividends paid by T‑Mobile US to non-controlling interests, as declared in the reporting period. The carrying amount was also reduced by Deutsche Telekom AG’s 2024 share buy-back program with share buy-backs of EUR 2.0 billion.