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Group Headquarters & Group Services

Development of operations

Development of operations – Group Headquarters & Group Services

millions of €

 

 

 

 

 

 

2025

2024

Change

Change
%

2023

Revenue

2,163

2,226

(63)

(2.8)

2,305

Service revenue

982

972

10

1.0

1,024

EBITDA

(682)

(816)

134

16.4

(522)

Special factors affecting EBITDA

(146)

(301)

156

51.7

(199)

EBITDA (adjusted for special factors)

(537)

(515)

(22)

(4.2)

(323)

EBITDA AL

(914)

(1,103)

189

17.1

(808)

Special factors affecting EBITDA AL

(146)

(301)

156

51.7

(199)

EBITDA AL (adjusted for special factors)

(768)

(801)

33

4.1

(609)

Depreciation, amortization and impairment losses

(1,155)

(1,242)

87

7.0

(1,352)

Profit (loss) from operations (EBIT)

(1,837)

(2,058)

221

10.7

(1,874)

Cash capex

(861)

(833)

(29)

(3.4)

(969)

Cash capex (before spectrum investment)

(861)

(833)

(29)

(3.4)

(969)

Revenue, service revenue

Revenue in our Group Headquarters & Group Services segment decreased in the reporting year by 2.8 %, mainly as a result of lower intragroup revenue from land and buildings due to the ongoing optimization of space. This was offset by increased service revenue owing to a higher cost basis for intragroup settlements and additional issues at Deutsche Telekom IT.

Adjusted EBITDA AL, EBITDA AL

In the reporting year, adjusted EBITDA AL of EUR ‑768 million was slightly up against the prior-year level. We were able to almost entirely offset the decline in intragroup revenue from land and buildings due to the ongoing optimization of space, mainly due to lower operating expenses at our Group Services. Overall, special factors negatively affecting EBITDA AL – in particular due to socially responsible staff-related measures – totaled EUR 146 million in the reporting year and EUR 301 million in the prior year.

Profit/loss from operations (EBIT)

The year-on-year improvement in EBIT by EUR 221 million to EUR ‑1.8 billion was largely due to the positive development of EBITDA, which in the prior year had been negatively impacted by the aforementioned higher special factors. Furthermore, depreciation, amortization and impairment losses decreased, mainly in the area of land and buildings as a result of the ongoing optimization of our real estate portfolio, and due to a lower capitalization rate for own capitalized costs in connection with IT projects.

Cash capex (before spectrum investment), cash capex

Cash capex increased year-on-year by EUR 29 million, primarily due to higher cash capex for vehicles.

AL – After Leases
Since the start of the 2019 financial year, Deutsche Telekom has taken the effects of the first-time application of IFRS 16 “Leases” into account when determining financial performance indicators. “EBITDA after leases” (EBITDA AL) is calculated by adjusting EBITDA for depreciation of the right-of-use assets and for interest expenses on recognized lease liabilities. When determining “free cash flow after leases” (free cash flow AL), free cash flow is adjusted for the repayment of lease liabilities.
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