Notes to the consolidated statement of cash flows

Net cash from operating activities

Net cash from operating activities increased by EUR 0.2 billion year-on-year to EUR 9.6 billion. This positive trend is attributable to sound business development. Lower cash outflows in connection with the integration of Sprint in the United States also had a positive effect, as did exchange rate effects. By contrast, the increase in net interest payments of EUR 0.3 billion and the increase in tax payments of EUR 0.1 billion had a reducing effect.

Net cash from/used in investing activities

At EUR 4.8 billion, cash outflows for investments in intangible assets and property, plant and equipment were EUR 2.3 billion lower than in the prior year. In the reporting period, the United States operating segment acquired spectrum licenses for a total amount of EUR 0.1 billion. In the prior year, this item had included cash outflows for the acquisition of mobile spectrum licenses of EUR 2.5 billion in the United States operating segment. Excluding investments in mobile spectrum licenses, cash outflows for investments in intangible assets and property, plant and equipment were up EUR 0.1 billion year-on-year. In the Germany operating segment, cash outflows increased by EUR 0.3 billion in connection with the fiber-optic build-out. Cash outflows in the Europe operating segment increased by EUR 0.1 billion. By contrast, cash outflows in the United States operating segment decreased by EUR 0.2 billion, in particular due to higher cash outflows for investments in the prior year as a result of the accelerated build-out of the 5G network and the integration of Sprint.

Net cash used in/from financing activities

Non-cash transactions

In the reporting period, Deutsche Telekom leased assets totaling EUR 2.8 billion, mainly network equipment, cell sites, and land and buildings. As a result, these assets are recognized in the statement of financial position under right-of-use assets and the related liabilities under lease liabilities. Future repayments of the liabilities will be recognized in net cash used in/from financing activities. In the prior-year period, EUR 6.6 billion had related to the modification of the arrangements with Crown Castle, resulting in an increase in the same amount in the carrying amount of the right-of-use assets and the lease liabilities. Excluding this effect, asset leases were up EUR 1.8 billion against the prior-year period, mainly due to the leaseback of passive network infrastructure in Germany and Austria under the sale-and-leaseback agreement in connection with the sale of the GD tower companies.

For further information on the sale of the GD tower companies, please refer to the section “Changes in the composition of the Group and other transactions.”

Consideration for the acquisition of broadcasting rights is paid by Deutsche Telekom in accordance with the terms of the contract on the date of its conclusion or spread over the term of the contract. Financial liabilities of EUR 0.1 billion were recognized in the reporting period for future consideration for acquired broadcasting rights (prior-year period: EUR 0.1 billion). The payment of the consideration will be recognized in net cash used in/from financing activities.

In the United States operating segment, mobile terminal equipment was only recognized to a marginal extent under property, plant and equipment in the reporting period (prior-year period: EUR 0.1 billion). This relates to the terminal equipment lease model at T‑Mobile US, under which customers do not purchase the devices but lease them. The cash outflows are presented under net cash from operating activities. The decline was primarily due to the withdrawal from the terminal equipment lease model.