Selected notes to the consolidated income statement

Net revenue

Net revenue breaks down into the following revenue categories:

For further information on changes in net revenue, please refer to the section “Development of business in the Group” in the interim Group management report.

Other operating income

In the prior-year period, income from the disposal of non-current assets primarily comprised income from the disposal of real estate previously recognized as non-current assets and disposal groups held for sale. Miscellaneous other operating income includes a large number of individual items accounting for marginal amounts.

Other operating expenses

Miscellaneous other operating expenses include a large number of individual items accounting for marginal amounts.

Depreciation, amortization and impairment losses

At EUR 4.4 billion, depreciation, amortization and impairment losses on intangible assets, property, plant and equipment, and right-of-use assets were EUR 0.2 billion higher overall than in the prior-year period. Depreciation of property, plant and equipment and amortization of intangible assets were EUR 0.1 billion higher than in the prior year, mainly due to the consistently high investment volume. Depreciation of right-of-use assets also increased slightly.

Profit/loss from financial activities

The loss from financial activities increased by EUR 0.6 billion compared with the first quarter of 2019 to EUR 1.0 billion, with other financial expense increasing by EUR 0.5 billion, due in particular to negative measurement effects from embedded derivatives at T‑Mobile US as a result of the increased interest rate risk premium for T‑Mobile US. Overall, finance costs and the share of profit/loss of associates and joint ventures accounted for using the equity method were more or less at the same level as in the prior-year quarter.

For further information on embedded derivatives at T‑Mobile US, please refer to the section “Disclosures on financial instruments.”

Income taxes

A tax expense of EUR 0.5 billion was recognized in the first quarter of 2020. The effective tax rate of 29 percent essentially reflects the shares of the different countries in profit before income taxes and their respective national tax rates. A tax expense of EUR 0.5 billion was also recorded in the prior-year period. With somewhat higher profit before income taxes, the tax rate stood at 28 percent.