Germany

Customer development

Total

In Germany we continue to be market leader both in terms of fixed-network and mobile revenues. This success is attributable to our high-performance networks, a broad product portfolio, and good service. We want to offer our customers a seamless and technology-neutral telecommunications experience. We regularly adapt our product portfolio to address the needs of our customers.

Mobile communications

The number of high-value mobile contract customers under the Telekom and congstar brands grew by 1.2 million customers overall against December 31, 2023. Sustained high demand for mobile rate plans with data volumes continues to drive this trend. The number of prepaid customers grew by 5.8 million against the start of 2024, primarily due to M2M SIM cards used in the automotive industry.

Fixed network

Demand remained high for our fiber-optic-based lines, with the total number increasing to 20.8 million since the end of 2023. This strong growth is driven by demand for higher bandwidths.

The number of retail broadband lines remained at a high level, increasing to 15.2 million compared with December 31, 2023. Around 51 % of the customers have subscribed to a rate plan with speeds of 100 Mbit/s or higher. The rise in demand for our TV content drove growth in our TV customer base of 311 thousand against year-end 2023. The number of fixed-network lines stood at 17.2 million.

Wholesale

As of December 31, 2024, fiber-optic-based lines accounted for 72.6 % of all lines -5.1 percentage points more than at the end of 2023. This growth is a result of the demand for our commitment agreements. Ongoing demand among retail customers for higher-bandwidth lines also contributed to the increase. The number of unbundled local loop lines decreased by 640 thousand compared with the end of the prior year, while fiber-optic-based lines increased by 295 thousand. These developments result partly from the shift to higher-value fiber-optic-based lines and partly from consumers switching to other providers. In addition, our wholesale partners are migrating their retail customers to their own infrastructures. The total number of wholesale lines at the end of December 2024 was 10.5 million.

Development of operations

Revenue, service revenue

In 2024, we generated revenue of EUR 25.7 billion, an increase of 2.1 % year-on-year. This was mainly attributable to growth in service revenues of 1.7 %, due to increased revenue in the fixed-network core business, largely driven by broadband and IT business, and in the mobile business.

Revenue from Consumers increased by 4.2 % compared with the prior year. Revenue from broadband business continued to grow, due in part to the positive effects from customer appreciation for reliable networks and high bandwidths. Volume-driven declines in revenue from voice components continued to impact on fixed-network business. The mobile business increased due to higher service revenues, mainly as a result of positive customer development.

Revenue from Business Customers was down 5.7 % against the prior year, primarily due to certain revenues being recognized under Wholesale since January 1, 2024. In organic terms, revenue was on a par with the prior year.

Wholesale revenue was up in 2024 by 20.9 % year-on-year as a result of the change in disclosure of revenues described under Business Customers. In organic terms, revenue was on a par with the prior year.

Adjusted EBITDA AL, EBITDA AL

Adjusted EBITDA AL increased by EUR 0.3 billion or 2.7 % year-on-year. The main reasons for this increase are a sound operational development, driven by high-value service revenue growth and enhanced cost efficiency, primarily as a result of the lower headcount and the ongoing implementation of efficiency enhancement and digitalization measures. This trend was negatively affected in particular by the inflation compensation premium under the scope of the collective agreement. Our adjusted EBITDA AL margin amounted to 40.9 %.

At EUR 9.5 billion, EBITDA AL was below the level of the prior-year period. The effects described with regard to adjusted EBITDA AL included special factors in the amount of EUR 1.1 billion and included socially responsible staff restructuring instruments and the forgone contingent consideration receivable from IFM Global Infrastructure Fund.

Profit/loss from operations (EBIT)

Profit from operations amounted to EUR 5.7 billion, a decrease of 6.2 % year-on-year. In addition to the issues mentioned under EBITDA AL, which had a negative effect on EBITDA, EBIT was also negatively affected by higher depreciation, amortization and impairment losses compared with the prior year, which mainly resulted from rising volumes in the fiber-optic and mobile communications build-out, and from the mobile network infrastructure we lease from GD Towers. In addition, depreciation, amortization and impairment losses increased as a consequence of higher investments in licenses.

Cash capex (before spectrum investment), cash capex

Cash capex (before spectrum investment) increased by EUR 195 million, or 4.3 %, compared with the prior year. Capital expenditure totaled around EUR 4.8 billion in 2024, with much of this figure going towards the build-out of our fiber-optic network. The number of households passed by our fiber-optic network had increased to 10.1 million by the end of 2024. In mobile communications, 98.0 % of German households can already use 5G.