Development of selected financial data

Net revenue, service revenue

• Net revenue increased by 2.9 % to EUR 119.1 billion, despite negative exchange rate effects. In organic terms, net revenue increased by 4.2 %. Service revenue increased by 2.9 % to EUR 99.4 billion. In organic terms, net revenue increased by 3.8 %.
• Revenue in the Germany segment decreased by 0.4 % on account of lower mobile terminal equipment revenues. Service revenue grew by 1.0 %.
• In the United States segment, higher service and terminal equipment revenues generated revenue growth of 4.1 %, or 6.0 % on an organic basis.
• Revenue in our Europe segment grew by 2.5 %, or by 2.9 % on an organic basis, on account of higher service revenues.
• Revenue in the Systems Solutions segment was up 2.5 %, on the back of growth in the Digital and Road Charging areas.

billions of €

EBITDA AL (adjusted for special factors)

• Adjusted EBITDA AL grew by 2.8 % to EUR 44.2 billion. In organic terms, it increased by 4.7 %.
• Adjusted EBITDA AL in the Germany segment increased by 1.7 %, driven by service revenue growth and enhanced cost efficiency.
• In the United States segment, adjusted EBITDA AL grew by 2.5 %. In organic terms, the increase was 5.3 %, on account of higher service and terminal equipment revenues.
• In the Europe segment, adjusted EBITDA AL increased by 5.6 % on the back of the revenue growth and a positive net margin, or 5.4 % in organic terms.
• In the Systems Solutions segment, adjusted EBITDA AL increased by 15.7 % due to margin increases and cost optimizations in the Cloud area, as well as to revenue growth in the Digital and Road Charging areas.
• The adjusted EBITDA AL margin remained stable at 37.2 %. The adjusted EBITDA AL margin was 41.8 % in the Germany segment, 37.5 % in the United States segment, and 37.0 % in the Europe segment.

billions of €

Profit/loss from operations (EBIT)

• EBIT declined by EUR 1.5 billion to EUR 24.8 billion, mainly due to the reversal recognized in the prior year of impairment losses on FCC licenses of T‑Mobile US.
• At EUR ‑1.8 billion, special factors affecting EBITDA AL were down by EUR 2.6 billion against the prior year. In the prior year, these special factors mainly included the reversal of impairment losses on FCC licenses of EUR 2.6 billion.
• At EUR 24.0 billion, depreciation, amortization and impairment losses were on a par with the prior-year level.

billions of €

Net profit (adjusted for special factors)

• Adjusted net profit increased by EUR 0.4 billion to EUR 9.7 billion.
• Adjusted earnings per share amounted to EUR 2.00 compared with EUR 1.90 in the prior year.
• This positive development allows a proposed dividend of EUR 1.00 per dividend-bearing share for the 2025 financial year, up from EUR 0.90 in the prior year.
• Unadjusted net profit decreased by EUR 1.6 billion to EUR 9.6 billion, mainly due to the reversal of impairment losses on FCC licenses in the prior year. Loss from financial activities, which increased by EUR 2.0 billion to EUR 5.3 billion also contributed to this decline. This was primarily due to higher reversals of impairment losses on our investments in GD Towers and GlasfaserPlus in the prior year.

billions of €

ROCE

• ROCE (return on capital employed) decreased by 1.0 percentage points to 7.5 %, due to a EUR 2.4 billion reduction in net operating profit after taxes (NOPAT) to EUR 19.0 billion, while the average amount of net operating assets (NOA) remained almost constant at EUR 255.1 billion.
• The decline in NOPAT is mainly due to the reversal recognized in the prior year of impairment losses on FCC licenses. The share of profit of associates and joint ventures included in the consolidated financial statements using the equity method also decreased, primarily due to higher reversals in the prior year of impairment losses on our investments in GD Towers and GlasfaserPlus.

%

Net debt ^a

• Net debt decreased by EUR 4.8 billion to EUR 132.5 billion.
• The main factors reducing net debt were free cash flow (before dividend payments and spectrum investment) (EUR 24.1 billion) and exchange rate effects (EUR 11.6 billion).
• The main factors increasing net debt were the corporate transactions in the United States segment (EUR 10.4 billion) and the share buy-backs by T‑Mobile US (EUR 8.9 billion) and Deutsche Telekom AG (EUR 2.0 billion). Net debt was also increased by dividend payments including non-controlling interests (EUR 6.4 billion) and additions of lease liabilities and of right-of-use assets (EUR 4.6 billion).

billions of €

Cash capex (before spectrum investment) ^b

• Cash capex (before spectrum investment) increased by EUR 0.9 billion to EUR 16.9 billion.
• In the United States segment, cash capex increased by EUR 0.6 billion, in particular due to higher investments in the continued network build-out and the UScellular Acquisition. In the Europe segment, cash capex was up EUR 0.2 billion and in the Germany segment it was up EUR 0.1 billion against the prior year.
• Cash capex (including spectrum investment) increased by EUR 0.1 billion to EUR 19.3 billion. Cash outflows of EUR 1.3 billion were recorded in the reporting year for the acquisition of customer bases by T‑Mobile US. Furthermore, EUR 1.1 billion in total was invested in mobile spectrum licenses, mainly in the United States and Europe operating segments. In the prior year, EUR 3.2 billion was paid for mobile spectrum licenses, mainly in the United States.

billions of €

Free cash flow AL (before dividend payments and spectrum investment) ^b, c

• Free cash flow AL (before dividend payments and spectrum investment) increased from EUR 19.2 billion to EUR 19.5 billion.
• Free cash flow AL was positively affected by the strong development of the operating business, lower cash outflows in connection with the integration of Sprint in the United States, and a decrease in cash outflows for the repayment of lease liabilities.
• Currency translation effects, higher cash capex (before spectrum investment), and marginally higher tax payments and net interest payments had a decreasing effect.

billions of €

For a reconciliation for the organic development of key figures for the prior year, please refer to the section “Additional information.”

For further information, please refer to the sections “Development of business in the Group” and “Development of business in the operating segments” in the combined management report, and to the IR back-up on our Investor Relations website.

For further information on our performance indicators and alternative performance measures, please refer to the section “Management of the Group” in the combined management report and our Investor Relations website.