30 Share of profit/loss of associates and joint ventures accounted for using the equity method
millions of € |
|
|
|
|
2025 |
2024 |
2023 |
|---|---|---|---|
Share of profit (loss) of joint ventures |
721 |
2,561 |
(2,778) |
Share of profit (loss) of associates |
44 |
(27) |
12 |
|
765 |
2,534 |
(2,766) |
The share of profit of associates and joint ventures included in the consolidated financial statements accounted for using the equity method decreased by EUR 1.8 billion compared with the prior year to EUR 0.8 billion.
This was primarily attributable to higher reversals of impairment losses recognized in the prior-year period on the carrying amounts of the investments in the GD tower companies and GlasfaserPlus, which are included as joint ventures.
In the prior year, reversals of impairment losses of EUR 2.1 billion and EUR 0.3 billion, respectively, were recognized on the carrying amounts of the investments in the GD tower companies and in GlasfaserPlus. These reversals of impairment losses were, at the GD tower companies, due to lower discount rates and improved planning, and at GlasfaserPlus, almost entirely due to lower discount rates. Level 3 input parameters were used to determine the pro rata recoverable amounts – as fair value less costs of disposal – of EUR 5.7 billion for the GD tower companies and of EUR 0.7 billion for GlasfaserPlus (after deduction of net debt). Discount rates of 6.38 % for the GD tower companies and 5.14 % for GlasfaserPlus were used.
In the reporting period, further reversals of impairment losses of EUR 0.5 billion and EUR 0.2 billion, respectively, were recognized on the carrying amounts of the investments in the GD tower companies and in GlasfaserPlus. These reversals of impairment losses were due to declines in industry-specific financing costs and the resulting lower discount rates, while retaining the existing business plans. Level 3 input parameters were used to determine the pro rata recoverable amounts – as fair value less costs of disposal – of EUR 7.5 billion for the GD tower companies and of EUR 1.1 billion for GlasfaserPlus (after deduction of net debt). Discount rates of 5.79 % for the GD tower companies and 5.02 % for GlasfaserPlus were used.
For further information, please refer to Note 10 “Investments accounted for using the equity method.”