Development of business in the Group
Since April 1, 2020, Sprint has been included in Deutsche Telekom’s consolidated financial statements as a fully consolidated subsidiary. As a result, the remeasured assets and liabilities were recognized as of this date, and all income and expenses generated from the date of first-time consolidation have been included in Deutsche Telekom’s consolidated income statement. In the first quarter of 2021, this continued to impact on the comparability of the presentation of the results of operations and financial position for the reporting period with the figures for the prior-year period.
For further information on the business combination of T‑Mobile US and Sprint, please refer to the section “Changes in the composition of the Group and other transactions” in the interim consolidated financial statements.
Effective January 1, 2021, Deutsche Telekom reassigned the responsibility for business and profit and loss for Deutsche Telekom IoT GmbH from the Systems Solutions operating segment to the business customer unit in the Germany operating segment. The Group subsidiary is responsible for the IoT business of Deutsche Telekom. Prior-year comparatives in both of the segments affected (development of operations, customer development, headcount development, and order entry) were adjusted retrospectively. There were no adjustments at overall Group level.
For further information on the reassignment of the IoT business, please refer to the section “Group organization, strategy, and management.”
The coronavirus pandemic affected our business in several of our business areas, impacting on revenues and earnings. For example, temporary travel restrictions have resulted in lower roaming and visitor revenues. Our terminal equipment business also felt the squeeze, as did our corporate customer business. At the same time, we recorded an increase in the volume of voice calls, both in mobile communications and in the fixed network.