Group organization, strategy, and management
With regard to our Group organization, strategy, and management, please refer to the explanations in the combined management report in the 2021 Annual Report. The following changes and/or additions were recorded from the Group’s point of view:
Group organization
Sale of T‑Mobile Netherlands. On September 6, 2021, Deutsche Telekom and Tele2 signed an agreement with WP/AP Telecom Holdings IV, a private equity consortium advised by Apax Partners and Warburg Pincus, on the sale of our subsidiary T‑Mobile Netherlands. The transaction was consummated on March 31, 2022 after obtaining the necessary approvals from the authorities and satisfying the other closing conditions. The sale price is based on an enterprise value of EUR 5.1 billion. The cash proceeds – based on our shareholding of 75 % – amounted to EUR 3.6 billion. In financial terms, excluding the partial settlement of intragroup shareholder loans and other intragroup transactions, the transaction resulted in value added of EUR 4.0 billion. The gain on deconsolidation resulting from the sale amounted to EUR 0.9 billion. Until the transaction was closed, the entity had been assigned to the Group Development operating segment.
Increase in the stake in T‑Mobile US. As announced, Deutsche Telekom used part of the cash proceeds from the sale of T‑Mobile Netherlands to further increase its stake in T‑Mobile US and, on April 12, 2022, exercised further stock options received from SoftBank to acquire around 21.2 million shares in T‑Mobile US from SoftBank for a purchase price of USD 2.4 billion (EUR 2.2 billion). Through this transaction Deutsche Telekom raised its stake in T‑Mobile US by 1.7 percentage points to 48.4 %.
Joint venture GlasfaserPlus with IFM. On November 5, 2021, Deutsche Telekom announced that IFM Global Infrastructure Fund – advised by IFM Investors – would acquire a stake of 50 % in GlasfaserPlus, a fiber-optic build-out entity. The sale of a 50 % stake in GlasfaserPlus was consummated on February 28, 2022, after the EU Commission approved the transaction on January 25, 2022 and the other closing conditions had been satisfied. The sale price came to EUR 0.9 billion, half of which was paid upon completion of the transaction and the other half of which will arise in stages upon achieving certain build-out milestones. The resulting joint venture is to build out an additional four million gigabit-capable FTTH lines in rural and development areas by 2028. Following the loss of control as a result of the transaction, the GlasfaserPlus entities were deconsolidated as of February 28, 2022. The resulting deconsolidation gain amounted to EUR 1.7 billion. Until the transaction was closed, the entities had been assigned to the Germany operating segment. The stakes in the joint venture are included in the consolidated financial statements using the equity method.
Management of the Group
A reconciliation of net revenue disclosed in the interim consolidated financial statements, including its breakdown into revenue categories, to the “service revenue” financial performance indicator can be found in the following table:
billions of € |
|
|
|
|
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|---|---|---|---|---|---|---|---|---|---|---|
|
Q1 2022 |
Q1 2021 |
Change % |
FY 2021 |
||||||
Net revenue |
28.0 |
26.4 |
6.2 |
108.8 |
||||||
Revenue from the sale of goods and merchandise |
(5.0) |
(4.7) |
(6.8) |
(19.6) |
||||||
Revenue from the use of entity assets by others |
(0.7) |
(1.2) |
39.7 |
(4.1) |
||||||
Revenue from the rendering of services |
22.3 |
20.5 |
8.8 |
85.1 |
||||||
+/- Reconciliation to service revenue as financial performance indicator |
|
|
|
|
||||||
Adjustment of revenue from the rendering of servicesa |
(0.3) |
(0.5) |
48.2 |
(2.2) |
||||||
Adjustment of revenue from the sale of goods and merchandiseb |
0.1 |
0.1 |
(2.6) |
0.3 |
||||||
Adjustment of revenue from the use of entity assets by othersc |
0.2 |
0.2 |
(14.0) |
0.9 |
||||||
Service revenue |
22.3 |
20.3 |
10.0 |
84.1 |
||||||
|
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As of January 1, 2022, we extended our definition of service revenue. Essentially, since then, our service revenue has additionally included certain customer charges in the United States operating segment – primarily in order to create better comparability with T‑Mobile US’ service revenue as determined in accordance with U.S. GAAP – and other revenue of lesser significance, mainly in the United States and Systems Solutions operating segments. This increases service revenue by EUR 0.4 billion in the reporting period. Comparative figures for the prior year have not been adjusted retrospectively.
Governance
On December 15, 2021, the Supervisory Board of Deutsche Telekom AG resolved to cancel Timotheus Höttges’ appointment as Chairman of the Board of Management effective December 31, 2021, and reappointed Mr. Höttges as Chairman of the Board of Management for the period from January 1, 2022 through December 31, 2026.