Development of selected financial data

Net revenue, service revenue ^a

• Net revenue increased by 0.4 % to EUR 27.9 billion. On an organic basis, revenue was up 1.6 % against the prior-year level. Service revenue increased by 2.9 % to EUR 23.5 billion; in organic terms, the increase was 4.1 %.
• The Germany segment increased revenue by 2.6 % year-on-year on the back of the strong development of service revenues.
• In the United States segment, revenue declined by 1.4 % due to exchange rate effects; in organic terms, revenue was up 0.4 %, driven in part by the strong development of service revenue.
• Revenue in our Europe segment grew by 6.3 % on account of higher service revenues.
• Revenue in the Systems Solutions segment was up 5.0 % year-on-year, on the back of growth in the Cloud and Road Charging portfolio areas.

billions of €

EBITDA AL (adjusted for special factors) ^a

• Adjusted EBITDA AL grew by 5.1 % to EUR 10.5 billion. In organic terms, it increased by 5.8 %.
• In the Germany segment, adjusted EBITDA AL increased by 3.5 % on the back of high-value revenue growth and enhanced cost efficiency.
• In the United States segment, adjusted EBITDA AL was up by 6.1 % due to higher service revenue and lower costs. Adjusted core EBITDA AL grew by 7.8 %.
• Adjusted EBITDA AL in the Europe segment grew by 8.7 % due to a positive net margin.
• In the Systems Solutions segment, adjusted EBITDA AL grew by 2.7 % due to increased revenue in the Cloud portfolio area.
• At 37.5 %, the adjusted EBITDA AL margin held steady at a high level. The adjusted EBITDA AL margin was 40.9 % in the Germany segment, 38.5 % in the United States segment, and 36.1 % in the Europe segment.

billions of €

Profit/loss from operations (EBIT) ^a

• EBIT decreased substantially to EUR 5.7 billion, mainly as a result of the gain on deconsolidation from the sale of GD Towers recognized in the prior year.
• Special factors of EUR ‑0.3 billion had a negative impact on EBITDA AL. The prior-year quarter included gains on deconsolidation, primarily from the sale of GD Towers, as well as disposals and additions, totaling EUR 12.6 billion.
• Correspondingly, EBITDA AL declined by 54.6 % to EUR 10.2 billion.
• At EUR 6.1 billion, depreciation, amortization and impairment losses were 0.7 % higher than in the prior year, and primarily related to the United States and Germany operating segments.

billions of €

Net profit

• Net profit decreased significantly to EUR 2.0 billion, due to the gain on deconsolidation from the sale of GD Towers in the prior year.
• Loss from financial activities increased by 2.7 % to EUR ‑1.4 billion, primarily due to the slight increase in finance costs.
• Tax expense increased by EUR 0.9 billion to EUR 1.2 billion.
• Profit attributable to non-controlling interests increased by EUR 0.1 billion to EUR 1.2 billion; a trend mainly attributable to the United States segment.
• Adjusted earnings per share rose from EUR 0.39 to EUR 0.45.

billions of €

For a reconciliation for the organic development of key figures for the prior-year period, please refer to the section “Additional information.”

Equity ratio

• The equity ratio increased by 0.2 percentage points against December 31, 2023 to 31.6 %.
• The increase in shareholders’ equity from EUR 91.2 billion to EUR 93.2 billion is primarily attributable to profit (EUR 3.1 billion) and to other comprehensive income (EUR 1.5 billion). Capital increases from share-based payments (EUR 0.1 billion) also had an increasing effect.
• Shareholders’ equity was reduced in particular by transactions with owners (EUR 1.6 billion), mainly in connection with T‑Mobile US’ share buy-backs, and by T‑Mobile US’ dividend payments (EUR 0.7 billion). Deutsche Telekom AG’s share buy-backs (EUR 0.5 billion) also reduced shareholders’ equity.

%

Net debt ^b

• Net debt increased by EUR 0.8 billion compared with the end of 2023 to EUR 133.1 billion.
• This increase was attributable primarily to the share buy-back program at T‑Mobile US (EUR 3.3 billion), exchange rate effects (EUR 2.3 billion), and additions of lease liabilities and right-of-use assets (EUR 0.9 billion). Deutsche Telekom AG’s share buy-back program (EUR 0.5 billion) and T‑Mobile US’ dividend payment to non-controlling interests (EUR 0.4 billion) additionally had an increasing effect.
• The main factors reducing net debt were free cash flow (before dividend payments and spectrum investment) of EUR 5.0 billion, and EUR 1.7 billion from the sale of T‑Mobile US shares by Deutsche Telekom.

billions of €

Cash capex (before spectrum investment)

• Cash capex (before spectrum investment) decreased by EUR 0.1 billion to EUR 4.7 billion.
• In the United States segment, cash capex decreased by EUR 0.4 billion, mainly as a result of higher cash outflows for the accelerated build-out of the 5G network in the prior years. By contrast, cash capex in the Germany segment increased by EUR 0.3 billion.
• Cash capex (including spectrum investment) also decreased by EUR 0.1 billion to EUR 4.7 billion. In the reporting period, as in the prior-year period, the United States segment acquired spectrum licenses for a total amount of EUR 0.1 billion.

billions of €

Free cash flow AL (before dividend payments and spectrum investment)

• Free cash flow AL was up by EUR 0.1 billion to EUR 3.7 billion.
• The sound business performance had an increasing effect on net cash from operating activities. The moderate reduction in cash capex (before spectrum investment) also had a positive effect.
• By contrast, higher tax payments and payments made in connection with the 2023 workforce reduction program in the United States had a decreasing effect.

billions of €

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

For further information on the development of business in the operating segments, please refer to the section “Development of business in the operating segments” in the interim Group management report and to the IR back-up on our Investor Relations website.

For further information on our performance indicators and alternative performance measures, please refer to the section “Management of the Group” in the 2023 combined management report (2023 Annual Report) and to our Investor Relations website.