27 Depreciation, amortization and impairment losses
The following table provides a breakdown of depreciation, amortization and impairment losses:
millions of € |
|
|
|
|
2024 |
2023 |
2022 |
|---|---|---|---|
Amortization and impairment of intangible assets |
6,666 |
6,580 |
6,931 |
Of which: impairment losses |
33 |
101 |
180 |
Of which: impairment losses on mobile licenses |
4 |
4 |
19 |
Of which: amortization of mobile licenses |
563 |
554 |
559 |
Depreciation and impairment of property, plant and equipment |
11,946 |
11,954 |
13,603 |
Of which: impairment losses |
85 |
110 |
668 |
Depreciation and impairment of right-of-use assets |
5,415 |
5,441 |
7,102 |
Of which: impairment losses |
3 |
10 |
308 |
|
24,027 |
23,975 |
27,635 |
Impairment losses break down as follows:
millions of € |
|
|
|
||||
|
2024 |
2023 |
2022 |
||||
|---|---|---|---|---|---|---|---|
Intangible assets |
33 |
101 |
180 |
||||
Of which: in connection with the ad hoc impairment test in the Romania cash-generating unit |
17 |
0 |
32 |
||||
Of which: in connection with the ad hoc impairment test in the Systems Solutions cash-generating unita |
15 |
96 |
119 |
||||
Of which: in connection with the ad hoc impairment tests of assets of the fiber-optic-based fixed network in the United Statesb |
0 |
0 |
27 |
||||
Property, plant and equipment |
85 |
110 |
668 |
||||
Of which: in connection with the ad hoc impairment test in the Romania cash-generating unit |
71 |
0 |
85 |
||||
Of which: in connection with the ad hoc impairment test in the Systems Solutions cash-generating unit |
0 |
54 |
24 |
||||
Of which: in connection with the ad hoc impairment tests of assets of the fiber-optic-based fixed network in the United Statesb |
0 |
28 |
528 |
||||
Right-of-use assets |
3 |
10 |
308 |
||||
Of which: in connection with the ad hoc impairment tests of assets of the fiber-optic-based fixed network in the United Statesb |
0 |
8 |
272 |
||||
|
120 |
221 |
1,156 |
||||
|
|||||||
Depreciation, amortization and impairment losses on intangible assets, property, plant and equipment, and right-of-use assets remained on the prior-year level at EUR 24.0 billion.
Depreciation and amortization increased from EUR 23.8 billion to EUR 23.9 billion. In the Germany operating segment, depreciation and amortization increased due to rising volumes in the fiber-optic and mobile communications build-out, and from the mobile network infrastructure leased from the GD towers companies. In the United States operating segment, higher depreciation expense in connection with accelerations of certain technology assets as part of T‑Mobile US modernizing its network, technology systems and platforms, and in connection with the ongoing build-out of the nationwide 5G network, was partly offset by lower depreciation of right-of-use assets.
Impairment losses amounted to EUR 0.1 billion in the reporting period and mainly related to the Europe operating segment. These related to the Romania cash-generating unit, which operates in the structurally challenging and highly competitive Romanian market. Impairment losses on intangible assets and property, plant and equipment totaling EUR 88 million were recognized here. The impairment losses recognized in the prior year of EUR 0.2 billion related primarily to the Systems Solutions operating segment and the Group Headquarters & Group Services segment. They related to follow-up investments in connection with assets previously impaired in the 2020, 2021, and 2022 financial years. Furthermore, despite the business outlook remaining positive, the increase in the cost of capital in 2023 prompted further impairment losses to be recognized on non-current assets at the end of 2023.
Reductions in useful lives resulted in additional depreciation and amortization of EUR 354 million. Of this total, EUR 31 million applied to intangible assets, EUR 254 million to property, plant and equipment, and EUR 69 million to right-of-use assets.
For further information, please refer to Note 6 “Intangible assets,” Note 7 “Property, plant and equipment,” and Note 8 “Right-of-use assets – lessee relationships.”