Selected notes to the consolidated income statement
Net revenue
Net revenue breaks down into the following revenue categories:
millions of € |
|
|
|
Q1 2025 |
Q1 2024 |
---|---|---|
Service revenues |
24,957 |
23,485 |
Germany |
5,591 |
5,515 |
United States |
16,081 |
14,827 |
Europe |
2,564 |
2,455 |
Systems Solutions |
1,008 |
973 |
Group Development |
0 |
0 |
Group Headquarters & Group Services |
243 |
236 |
Reconciliation |
(530) |
(522) |
Non-service revenues |
4,799 |
4,458 |
Germany |
628 |
783 |
United States |
3,719 |
3,182 |
Europe |
489 |
503 |
Systems Solutions |
1 |
20 |
Group Development |
2 |
2 |
Group Headquarters & Group Services |
306 |
311 |
Reconciliation |
(347) |
(342) |
Net revenue |
29,755 |
27,942 |
The service revenues essentially comprise predictable and/or recurring revenues from Deutsche Telekom’s core activities. These relate to revenues that are generated from services (i.e., revenues from fixed and mobile network voice services, incoming and outgoing calls, as well as data services) plus roaming revenues, monthly basic charges and visitor revenues, as well as revenues from the ICT business. Service revenue also includes revenues earned in connection with premium services for customers, such as reinsurance for device insurance policies and extended warranties.
In the reporting period, revenue from insurance contracts in the scope of IFRS 17 of EUR 1.2 billion (Q1 2024: EUR 1.1 billion) and insurance service expenses of EUR 0.7 billion (Q1 2024: EUR 0.8 billion) were recognized in the Group.
Non-service revenues mainly comprise one-time and variable revenues, e.g., revenue from the sale or rental of fixed-network or mobile devices, from value-added services, from application and contract services, revenue with virtual network operators, one-time revenue from the build-out of technical infrastructure, and revenue from vehicle and property leasing.
Net revenue includes revenue from the use of entity assets by others in the scope of IFRS 16 in the amount of EUR 0.2 billion (Q1 2024: EUR 0.2 billion). Of the revenue from the use of entity assets by others reported in net revenue, EUR 0.2 billion (Q1 2024: EUR 0.2 billion) relates to service revenues and EUR 0.0 billion (Q1 2024: EUR 0.1 billion) to non-service revenues.
For further information, please refer to the section “Development of business in the Group” in the interim Group management report.
Other operating income
millions of € |
|
|
|
Q1 2025 |
Q1 2024 |
---|---|---|
Income from the disposal of non-current assets |
46 |
61 |
Income from reimbursements |
31 |
30 |
Income from insurance compensation |
124 |
20 |
Income from ancillary services |
10 |
8 |
Miscellaneous other operating income |
112 |
127 |
Of which: gains resulting from deconsolidations and from the sale of stakes accounted for using the equity method |
0 |
0 |
|
323 |
246 |
Income from insurance compensation in the first quarter of 2025 mainly related to refunds from insurance companies for expenses incurred in connection with the cyberattack on T‑Mobile US in August 2021.
Other operating expenses
millions of € |
|
|
---|---|---|
|
Q1 2025 |
Q1 2024 |
Impairment losses on financial assets, contract assets, and lease assets |
(363) |
(325) |
Gains (losses) from the write-off of financial assets measured at amortized cost |
(3) |
(3) |
Other |
(970) |
(989) |
Of which: legal and audit fees |
(103) |
(127) |
Of which: losses from asset disposals |
(35) |
(63) |
Of which: other taxes |
(125) |
(162) |
Of which: cash and guarantee transaction costs |
(126) |
(117) |
Of which: insurance expenses |
(47) |
(44) |
Of which: miscellaneous other operating expenses |
(534) |
(475) |
|
(1,335) |
(1,317) |
Miscellaneous other operating expenses include expenses of EUR 0.2 billion (Q1 2024: EUR 0.2 billion) for data storage in data centers, in cloud applications, or other IT services, and of EUR 0.1 billion (Q1 2024: EUR 0.1 billion) for regulatory duties in the United States operating segment.
Depreciation, amortization and impairment losses
At EUR 6.0 billion, depreciation, amortization and impairment losses on intangible assets, property, plant and equipment, and right-of-use assets were EUR 0.1 billion lower in the first quarter of 2025 than in the prior-year period, which was mainly attributable to depreciation and amortization. In the United States operating segment, depreciation on property, plant and equipment decreased due to accelerations of certain technology assets in the prior year as part of T‑Mobile US modernizing its network, technology systems and platforms. By contrast, depreciation and amortization increased slightly in the Germany operating segment due to rising volumes in the fiber-optic and mobile communications build-out. No significant impairment losses were recorded either in the reporting period or in the prior-year period.
Profit/loss from financial activities
Loss from financial activities decreased year-on-year from EUR 1.4 billion to EUR 0.9 billion, mainly due to the factors described below.
The share of profit of associates and joint ventures included in the consolidated financial statements accounted for using the equity method increased by EUR 0.6 billion compared with the prior-year period to EUR 0.6 billion. This was primarily attributable to reversals of impairment losses recognized in the reporting period of EUR 0.4 billion and EUR 0.2 billion, respectively, on the carrying amounts of the investments in the GD tower companies and in GlasfaserPlus. These reversals of impairment losses were due to declines in industry-specific financing costs and the resulting lower discount rates, while retaining the existing business plans. Level 3 input parameters were used to determine the pro rata recoverable amounts – as fair value less costs of disposal – of EUR 6.0 billion for the GD tower companies and of EUR 1.1 billion for GlasfaserPlus (after deduction of net debt). Discount rates of 6.25 % for the GD tower companies and 5.02 % for GlasfaserPlus were used.
Finance costs and other financial income/expense both declined slightly by EUR 0.1 billion.
For further information, please refer to the section “Disclosures on financial instruments.”
Income taxes
A tax expense of EUR 1.5 billion was recorded in the first quarter of 2025. The tax amount essentially reflects the shares of the different countries in profit before income taxes and their respective national tax rates. However, the effective tax rate decreased marginally by the recognized reversals of impairment losses on the carrying amounts of the stakes in the GD tower companies and GlasfaserPlus that had no effect on tax.