Financial position of the Group

Total assets amounted to EUR 295.2 billion as of March 31, 2024, up by EUR 4.9 billion against December 31, 2023. Exchange rate effects, primarily from the translation of U.S. dollars into euros, increased the carrying amount, among other factors.

On the assets side, cash and cash equivalents increased by EUR 3.6 billion against the end of the prior year to EUR 10.8 billion.

For further information, please refer to the section “Notes to the consolidated statement of cash flows” in the interim consolidated financial statements.

At EUR 15.1 billion, trade receivables decreased by EUR 1.0 billion against the 2023 year-end level, mainly due to lower receivables in the United States and Germany operating segments. By contrast, exchange rate effects, mainly from the translation from U.S. dollars into euros, increased the carrying amount.

Intangible assets increased by EUR 2.2 billion compared to December 31, 2023 to EUR 138.2 billion. Exchange rate effects, primarily from the translation of U.S. dollars into euros, increased the carrying amount by EUR 2.6 billion. Additions increased the carrying amount by EUR 1.3 billion, EUR 0.1 billion of which related to mobile spectrum in the United States operating segment. Amortization and impairment losses of EUR 1.7 billion reduced the carrying amount.

Property, plant and equipment increased from EUR 65.0 billion as of December 31, 2023 to EUR 65.1 billion. Additions, primarily for the upgrade and build-out of the network (broadband, fiber-optic, and mobile infrastructure) increased the carrying amount by EUR 2.4 billion. Exchange rate effects, primarily from the translation of U.S. dollars into euros, also increased the carrying amount by EUR 0.7 billion. Reclassifications of lease assets upon expiry of the contractual lease term to property, plant and equipment, primarily for network technology in the United States operating segment, increased the carrying amount by EUR 0.2 billion. By contrast, depreciation and impairment losses totaling EUR 3.1 billion and disposals of EUR 0.1 billion decreased the carrying amount.

Compared with December 31, 2023, right-of-use assets increased by EUR 0.1 billion to EUR 32.9 billion. The carrying amount was increased by additions of EUR 0.9 billion. Exchange rate effects, primarily from the translation of U.S. dollars into euros, increased the carrying amount by EUR 0.6 billion. Depreciation and impairment losses reduced the carrying amount by EUR 1.3 billion. The previously mentioned reclassifications of lease assets to property, plant and equipment also reduced the carrying amount by EUR 0.2 billion.

Investments accounted for using the equity method increased by EUR 0.1 billion compared to December 31, 2023, to EUR 4.7 billion, mainly due to a capital increase in the investment in GlasfaserPlus.

Current and non-current financial assets decreased by EUR 0.2 billion to EUR 9.4 billion. Originated loans and receivables decreased by EUR 0.3 billion, partly as a result of the decline in receivables in the United States operating segment.

Miscellaneous assets increased by EUR 0.6 billion to EUR 12.8 billion. Current and non-current other assets contributed EUR 0.4 billion to this increase, due in part to an increase in various advance payments, mainly in connection with agreements on services for certain mobile communications equipment. In addition, current recoverable income taxes and contract assets each increased by EUR 0.1 billion.

On the liabilities and shareholders’ equity side, current and non-current financial liabilities increased by EUR 4.7 billion compared with the end of 2023 to EUR 109.3 billion. Bonds and other securitized liabilities increased overall by EUR 4.6 billion, primarily as a result of senior notes issued by T‑Mobile US with a total volume of USD 3.0 billion (EUR 2.7 billion), the issue of a EUR bond by Deutsche Telekom AG with a volume of EUR 0.7 billion, and the issue of asset-backed securities (ABS notes) with a volume of USD 0.5 billion (EUR 0.5 billion) by T‑Mobile US. Exchange rate effects additionally increased the carrying amount by EUR 1.7 billion. By contrast, the carrying amount was reduced by the scheduled repayment of a EUR bond in the amount of EUR 0.8 billion. Other non-interest-bearing liabilities increased by EUR 0.4 billion, mainly due to the stake of the cash dividend of USD 0.65 per share – declared by T‑Mobile US on March 15, 2024 – attributable to non-controlling interests in T‑Mobile US. Furthermore, liabilities with the right of creditors to priority repayment in the event of default decreased by EUR 0.2 billion, and other interest-bearing liabilities by EUR 0.2 billion.

Current and non-current lease liabilities increased by EUR 0.1 billion to EUR 40.9 billion compared with December 31, 2023. Exchange rate effects, in particular from the translation of U.S. dollars into euros, raised the carrying amount by EUR 0.7 billion. By contrast, lease liabilities in the United States operating segment decreased by EUR 0.6 billion mainly due to the decommissioning of the former Sprint’s wireless network and a decline in network and build-out investments, primarily on account of higher capital efficiency resulting from the accelerated build-out of the nationwide 5G network in the prior year.

Trade and other payables decreased by EUR 2.6 billion to EUR 8.3 billion, due in particular to lower liabilities in the United States operating segment, which resulted in part from a lower procurement volume, and in the Germany and Europe operating segments. By contrast, exchange rate effects, in particular from the translation from U.S. dollars into euros, increased the carrying amount.

Provisions for pensions and other employee benefits decreased by EUR 0.2 billion compared with December 31, 2023 to EUR 3.9 billion, mainly due to the increase in the discount rate against year-end 2023. Benefits paid directly by the employer in the reporting period also contributed to the reduction in the carrying amount.

Current and non-current other provisions decreased by EUR 0.5 billion compared with the end of 2023 to EUR 7.6 billion. Other provisions for personnel costs decreased by EUR 0.2 billion, primarily in connection with the bonuses paid out to employees in the United States operating segment and a decline in the carrying amount of the provision recognized for the Civil Health Insurance Fund (Postbeamtenkrankenkasse – PBeaKK). This is primarily due to an increase in the discount rate. Furthermore, provisions for procurement and sales support decreased by EUR 0.1 billion, mainly in connection with the bonuses paid out to sales partners in the United States operating segment. Provisions for termination benefits also decreased by EUR 0.2 billion, mainly as a result of the program implemented to reduce the workforce in the United States operating segment.

Miscellaneous liabilities increased by EUR 0.4 billion compared to December 31, 2023 to EUR 9.1 billion, mainly due to an increase in other liabilities of EUR 0.3 billion, driven primarily by an increase in liabilities from other taxes. Income tax liabilities increased by EUR 0.1 billion compared to December 31, 2023 to EUR 0.8 billion.

Shareholders’ equity increased from EUR 91.2 billion as of December 31, 2023 to EUR 93.2 billion, with profit of EUR 3.1 billion and capital increases from share-based payments of EUR 0.1 billion having an increasing effect. Other comprehensive income also increased the carrying amount by EUR 1.5 billion. Effects arose in connection with the T‑Mobile US shareholder return program from September 2023 – comprising the share buy-back program and the payment of cash dividends – that reduced the carrying amount of shareholders’ equity. The carrying amount of transactions with owners declined by EUR 1.6 billion, due in particular to the share buy-back program at T‑Mobile US. In addition, payments of additional cash dividends of USD 0.65 per share in each case, declared in January and March 2024, reduced the carrying amount by EUR 0.7 billion due to payments to non-controlling interests. Furthermore, the carrying amount was reduced by Deutsche Telekom AG’s share buy-back program that started in January 2024 with share buy-backs of EUR 0.5 billion.

For further information on the statement of financial position, please refer to the section “Selected notes to the consolidated statement of financial position” in the interim consolidated financial statements.

Changes in net debt

millions of €

Net debt increased to EUR 133.1 billion, mainly as a result of the T‑Mobile US share buy-back program and negative exchange rate effects. By contrast, the main factors reducing net debt were free cash flow (before dividend payments and spectrum investment) and the sale of T‑Mobile US shares by Deutsche Telekom.

Free cash flow AL (before dividend payments and spectrum investment) increased by EUR 0.1 billion year-on-year to EUR 3.7 billion. The following effects impacted on this development:

Net cash from operating activities increased by EUR 0.1 billion to EUR 9.6 billion. The strong development of the operating business was offset in part by an increase in tax payments of EUR 0.2 billion, exchange rate effects, and cash outflows from the program implemented by T‑Mobile US to reduce the workforce.

Cash capex (before spectrum investment) decreased by EUR 0.1 billion to EUR 4.7 billion. In the United States operating segment, cash capex decreased by EUR 0.4 billion to EUR 2.4 billion, mainly as a result of higher cash outflows for the accelerated build-out of the 5G network in the prior years. In the Germany operating segment, capital expenditure totaled around EUR 1.5 billion in the reporting period, EUR 0.3 billion more than in the prior-year period, with much of this figure going towards the fiber-optic build-out. In the Europe operating segment, cash capex stood at EUR 0.5 billion, which was on a par with the prior-year period. In the Systems Solutions operating segment, our capital expenditure remained on a par with the prior-year period at EUR 0.1 billion.

For further information on the statement of cash flows, please refer to the section “Notes to the consolidated statement of cash flows” in the interim consolidated financial statements.