Group Headquarters & Group Services

For information on changes resulting from the first-time application of the IFRS 16 “Leases” accounting standard, please refer to the section “Group organization, strategy, and management.”

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

651

0.0

2,735

Loss from operations (EBIT)

(393)

(324)

(69)

(21.3)

(1,662)

Depreciation, amortization and impairment losses

(260)

(162)

(98)

(60.5)

(825)

EBITDA

(132)

(162)

18.5

(837)

EBITDA AL^a

(234)

(184)

(50)

(27.2)

(923)

Special factors affecting EBITDA

(97)

(92)

(5)

(5.4)

(322)

EBITDA (adjusted for special factors)

(35)

(70)

50.0

(515)

EBITDA AL (ADJUSTED FOR SPECIAL FACTORS)^a

(137)

(92)

(45)

(48.9)

(601)

CASH CAPEX

(274)

(248)

(26)

(10.5)

(1,078)

Total revenue

Total revenue in our Group Headquarters & Group Services segment remained at the prior-year level in the first quarter of 2019. A slight negative factor resulted from the fact that, as of January 2016, the costs of intragroup development services newly commissioned from Deutsche Telekom IT in Germany are no longer charged internally. This was contrasted mainly by a slight increase in intragroup revenue from land and buildings.

EBITDA AL, adjusted EBITDA AL

Adjusted EBITDA AL in the Group Headquarters & Group Services segment decreased by EUR 45 million year-on-year in the reporting period, mainly as a result of lower income from real estate sales.

Overall, EBITDA AL was negatively impacted by special factors amounting to EUR 97 million, especially for staff-related measures. By contrast, special factors of EUR 92 million had been recorded in the prior-year period.

EBIT

The year-on-year decrease of EUR 69 million in EBIT was mainly due to the effects described under EBITDA AL. 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. The increase in other depreciation, amortization and impairment losses was due, in particular, to higher depreciation and amortization caused by increased levels of capitalization at Deutsche Telekom IT. The latter were attributable to the fact that the costs of newly commissioned intragroup development services in Germany are no longer charged internally. This development was partially offset by lower depreciation, amortization and impairment losses from land and buildings as a result of our continued optimization of the real estate portfolio.

Cash capex

Cash capex increased by EUR 26 million year-on-year, primarily owing to increased investment in technology and innovation, mainly for development activities.