Group Development For information on changes resulting from the first-time application of the IFRS 16 “Leases” accounting standard and changes in the organizational structure, please refer to the section “Group organization, strategy, and management.” Since the spin-off from T-Mobile Netherlands on January 1, 2019, the cell tower business of T-Mobile Netherlands has been reported under GD Towers, the new unit set up in the Group Development operating segment. This unit comprises DFMG and the cell tower business of T-Mobile Netherlands. Prior-year comparatives were not adjusted. Customer development (XLS:) Download thousands Mar. 31, 2019 Dec. 31, 2018 ChangeMar. 31, 2019/Dec. 31, 2018% Mar. 31, 2018 ChangeMar. 31, 2019/Mar. 31, 2018% NETHERLANDS Mobile customers 5,382 4,021 33.8 3,905 37.8 Fixed-network lines 557 241 n.a. 198 n.a. Broadband customers 557 241 n.a. 198 n.a. The number of mobile and fixed-network customers increased significantly compared with the end of 2018 due to the customer base acquired in connection with Tele2 Netherlands. There was also clear customer growth in the operating business. Despite intense competition, customer additions were recorded in particular in mobile communications thanks to our attractive rate plan portfolio offering large data packages through to unlimited data volumes. The number of fixed-network consumers also increased further as a result of our attractive rate plan portfolio. Development of operations (XLS:) Download millions of € Q1 2019 Q1 2018 Change Change % FY 2018 a Prior-year comparatives were calculated on a pro-forma basis for the redefined key performance indicators resulting from the introduction of the IFRS 16 accounting standard. TOTAL REVENUE 682 528 154 29.2 2,185 Of which: Netherlands 461 309 152 49.2 1,322 Profit from operations (EBIT) 126 148 (22) (14.9) 560 Depreciation, amortization and impairment losses (200) (78) (122) n.a. (334) EBITDA 325 227 98 43.2 893 EBITDA ALa 249 220 29 13.2 865 Special factors affecting EBITDA (6) (5) (1) (20.0) (27) EBITDA (adjusted for special factors) 332 231 101 43.7 921 Of which: Netherlands 147 108 39 36.1 425 EBITDA AL (ADJUSTED FOR SPECIAL FACTORS)a 255 225 30 13.3 892 Of which: Netherlands 123 104 19 18.3 413 EBITDA AL margin (adjusted for special factors)a % 37.4 42.6 40.8 CASH CAPEX (86) (85) (1) (1.2) (271) Total revenue Total revenue in our Group Development operating segment increased by 29.2 percent year-on-year, primarily due to the inclusion of Tele2 Netherlands since the start of 2019. Both business customer and consumer operations contributed to this revenue growth, on the back of customer growth and a positive trend in business with MVNOs in the Netherlands. The GD Towers unit also recorded a year-on-year increase in revenue, driven by volume-based growth at DFMG. EBITDA AL, adjusted EBITDA AL EBITDA AL increased from EUR 220 million in the prior-year period to EUR 249 million. This growth was mainly attributable to the earnings contributed by Tele2 Netherlands and the aforementioned positive effects on revenue. Efficient cost management also contributed to the growth in EBITDA AL. EBITDA AL of the GD Towers unit is increasing steadily thanks to growing volumes. In addition to the positive effects from the acquisition of Tele2 Netherlands, EBITDA AL of T-Mobile Netherlands was impacted by the transfer of the EBITDA AL contribution of the Dutch cell tower business to GD Towers. Furthermore, earnings from operations increased on the back of revenue growth and efficiency enhancement measures. For the same reasons, adjusted EBITDA AL increased from EUR 225 million to EUR 255 million. The decline in the EBITDA AL margin is attributable to the integration of Tele2 Netherlands. EBIT Due to the consolidation of Tele2 Netherlands at T-Mobile Netherlands and the associated increase in depreciation, amortization and impairment losses, as well as one-time effects resulting from the integration, EBIT decreased by EUR 22 million compared with the first quarter of 2018 to EUR 126 million. GD Towers’ high investments in new cell sites also increased depreciation, amortization and impairment losses. Whereas previously expenses had been recognized in connection with operating leases, the right-of-use assets recognized in this context since the application of accounting standard IFRS 16 as of January 1, 2019 result in particular in higher depreciation charges. Cash capex Cash capex increased by EUR 1 million compared with the prior-year period, primarily due to the additional investments for the integration of Tele2 Netherlands.
