Selected notes to the consolidated statement of financial position

Trade receivables

At EUR 15.9 billion, trade receivables decreased by EUR 0.5 billion against the 2024 year-end level. This was due to lower receivables in the United States operating segment due to a lower number of new contracts with equipment installment plans. Furthermore, receivables declined in the Germany operating segment. Exchange rate effects, mainly from the translation of U.S. dollars into euros, also decreased the carrying amount. By contrast, effects of changes in the composition of the Group from the acquisitions of Vistar Media and Blis in the United States operating segment increased the carrying amount of receivables.

For further information on the acquisitions of Vistar Media and Blis, please refer to the section “Changes in the composition of the Group and other transactions.”

Contract assets

The carrying amount of contract assets remained unchanged at the level of December 31, 2024 of EUR 2.7 billion. Contract assets relate to receivables that have not yet legally come into existence, which arise from the earlier – as compared to billing – recognition of revenue, in particular from the sale of goods and merchandise. Furthermore, receivables from long-term construction contracts are recognized under contract assets.

Inventories

The carrying amount of inventories increased by EUR 0.2 billion against the 2024 year-end level to EUR 2.7 billion, due to stockpiling for the market launch of high-value mobile terminal equipment, primarily in the United States operating segment. By contrast, exchange rate effects, mainly from the translation from U.S. dollars into euros, decreased the carrying amount.

Intangible assets

The carrying amount of intangible assets decreased by EUR 6.5 billion compared to December 31, 2024 to EUR 142.7 billion. Exchange rate effects of EUR 5.1 billion, primarily from the translation of U.S. dollars into euros, and depreciation, amortization and impairment losses of EUR 1.7 billion decreased the carrying amount. Reclassifications of intangible assets to non-current assets and disposal groups held for sale also reduced the carrying amount by EUR 2.0 billion. Of this, EUR 1.9 billion was attributable to the United States operating segment and related to the agreement between T‑Mobile US and N77, described in the section “Agreements on spectrum licenses,” and to the transactions agreed in the reporting period for the exchange of spectrum licenses. Investments increased the carrying amount by EUR 1.6 billion, EUR 0.2 billion of which related to the acquisition of mobile spectrum in the United States operating segment. Effects of changes in the composition of the Group resulting from the acquisition of Vistar Media and Blis in the United States operating segment increased the carrying amount by EUR 0.8 billion, with goodwill accounting for EUR 0.4 billion of this.

For further information on the acquisitions of Vistar Media and Blis, please refer to the section “Changes in the composition of the Group and other transactions.”

Agreements on spectrum licenses

On August 8, 2022, T‑Mobile US entered into agreements with Channel 51 License Co LLC and LB License Co, LLC (Sellers) for the acquisition of spectrum licenses in the 600 MHz band in exchange for a total cash consideration of USD 3.5 billion (EUR 3.2 billion). The licenses are to be acquired without any associated network assets. T‑Mobile US currently utilizes these licenses under an existing arrangement with the Sellers covering fixed-term spectrum leases. On March 30, 2023, the contractual parties further agreed that the transaction be divided into two separate tranches. On December 29, 2023, the Federal Communications Commission (FCC) approved the transfer of the licenses in the first tranche. The first tranche was concluded on June 24, 2024. The corresponding purchase price payment of USD 2.4 billion (EUR 2.2 billion) was made on August 5, 2024. On October 22, 2024, the FCC approved the transfer of certain licenses from the second tranche. These licenses were transferred and the associated purchase price of USD 0.5 billion (EUR 0.5 billion) paid on December 6, 2024. The transfer of the remaining licenses in accordance with the agreements is subject to regulatory approvals and certain other customary closing conditions. The transaction for the remaining licenses from the second tranche of USD 0.6 billion (EUR 0.6 billion) is expected to close in the second quarter of 2025.

The following agreements will have an impact on the presentation of Deutsche Telekom’s results of operations and financial position in the future:

On September 12, 2023, T‑Mobile US agreed with U.S. cable network operator Comcast Corporation (Comcast) to acquire spectrum in the 600 MHz band in exchange for total cash consideration of between USD 1.2 billion and USD 3.3 billion (EUR 1.1 billion and EUR 3.0 billion), depending on the number of underlying licenses. The final purchase price will be determined at the time the parties make the required transfer filings with the FCC. At the same time, T‑Mobile US and Comcast have agreed exclusive leasing arrangements. The leasing rights for T‑Mobile US will apply for at least two years, regardless of whether Comcast decides to remove part of its licenses from the purchase agreement. The transaction is expected to be closed in the first half of 2028. On January 13, 2025, T‑Mobile US and Comcast entered into an amendment to the license purchase agreement pursuant to which T‑Mobile US will acquire additional spectrum. As a consequence of the amendment, the total cash consideration amounts to between USD 1.2 billion and USD 3.4 billion (EUR 1.1 billion and EUR 3.1 billion).

For further information, please refer to the section “Other financial obligations.”

On September 10, 2024, T‑Mobile US and N77 License Co. LLC (N77) entered into an agreement on the sale of spectrum licenses, pursuant to which N77 has the option to purchase all or a portion of T‑Mobile US’ remaining 3.45 GHz licenses for a certain range of cash consideration. The number of licenses sold will be determined based upon the amount of committed financing granted to N77. As of March 31, 2025, licenses with a carrying amount of EUR 1.7 billion were included in connection with this agreement, following a corresponding reclassification to non-current assets and disposal groups held for sale. The transaction was consummated on April 30, 2025 (after the reporting period) in exchange for a purchase price of USD 2.0 billion (EUR 1.8 billion), and following regulatory approvals by the U.S. Federal Communications Commission (FCC).

On March 20, 2025, T‑Mobile US entered into a non-binding term sheet on the sale of 800 MHz spectrum licenses to Grain Management, LLC (Grain). This term sheet stipulates that T‑Mobile US would receive a cash consideration and spectrum in the 600 MHz range from Grain in exchange for its licenses. No definitive agreement has been executed so far. The transaction, if finalized, would be subject to approval by the U.S. Federal Communications Commission (FCC) and certain other customary closing conditions.

Property, plant and equipment

The carrying amount of property, plant and equipment decreased by EUR 1.5 billion compared with December 31, 2024 to EUR 65.1 billion. Depreciation and impairment losses totaling EUR 2.9 billion, exchange rate effects of EUR 1.1 billion, primarily from the translation of U.S. dollars into euros, and disposals of EUR 0.1 billion decreased the carrying amount. Additions, primarily for the upgrade and build-out of the network (broadband, fiber-optic, and mobile infrastructure) increased the carrying amount by EUR 2.5 billion. Reclassifications of right-of-use 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.

Right-of-use assets

The carrying amount of the right-of-use assets decreased by EUR 1.7 billion compared to December 31, 2024 to EUR 30.5 billion. Depreciation and impairment losses reduced the net carrying amount by EUR 1.4 billion. Furthermore, exchange rate effects, primarily from the translation of U.S. dollars into euros, reduced the carrying amount by EUR 1.0 billion. The previously mentioned reclassifications to property, plant and equipment also reduced the carrying amount by EUR 0.2 billion. The carrying amount was increased by additions of EUR 0.8 billion.

Capitalized contract costs

As of March 31, 2025, the carrying amount of capitalized contract costs remained at the level as of December 31, 2024 of EUR 3.7 billion. The capitalized contract costs primarily relate to the United States and Germany operating segments.

Investments accounted for using the equity method

The carrying amount of investments accounted for using the equity method increased by EUR 0.7 billion compared to December 31, 2024, to EUR 8.0 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.

Other financial assets

The carrying amount of current and non-current other financial assets decreased by EUR 0.1 billion compared to December 31, 2024 to EUR 7.7 billion. The carrying amount of derivatives without a hedging relationship decreased by EUR 0.2 billion, in particular in connection with the measurement of cross-currency swaps, due to a fall in the USD/EUR exchange rate. Exchange rate effects reduced the carrying amount by EUR 0.1 billion. The net total of originated loans and receivables increased by EUR 0.2 billion to EUR 5.3 billion.

For information on cash collateral deposited and on derivatives, please refer to the section “Disclosures on financial instruments.”

Other assets

The carrying amount of current and non-current other assets increased by EUR 0.2 billion to EUR 4.0 billion. As of March 31, 2025, this included various advance payments, totaling EUR 3.3 billion (December 31, 2024: EUR 3.3 billion), mainly relating to advance payments for maintenance, repairs, and in connection with agreements on services for certain mobile communications and fixed-network equipment that do not fall under the scope of IFRS 16. Receivables from other taxes increased by EUR 0.2 billion.

Non-current assets and disposal groups held for sale

The carrying amount of non-current assets and disposal groups held for sale as of March 31, 2025 was EUR 2.1 billion, up EUR 1.9 billion on the level of December 31, 2024. EUR 1.7 billion of this increase related to the agreement for the sale of spectrum licenses between T‑Mobile US and N77, and EUR 0.2 billion to transactions agreed between T‑Mobile US and other telecommunications companies for the exchange of spectrum licenses.

For further information on the agreement between T‑Mobile US and N77, please refer to the section “Intangible assets.”

Financial liabilities and lease liabilities

The following table shows the composition and maturity structure of financial liabilities and lease liabilities as of March 31, 2025:

The carrying amount of current and non-current financial liabilities increased by EUR 4.7 billion compared with year-end 2024 to EUR 116.8 billion, primarily due to the factors described below. Exchange rate effects, in particular from the translation of U.S. dollars into euros, reduced the carrying amount by EUR 3.7 billion in total.

The carrying amount of bonds and other securitized liabilities increased by EUR 4.4 billion to EUR 99.0 billion. The carrying amount was increased by USD bonds issued by T‑Mobile US in the reporting period with a volume of USD 3.5 billion (EUR 3.3 billion), with terms ending between 2032 and 2055 and bearing interest of between 5.13 % and 5.88 %, and by EUR bonds with a volume of EUR 2.8 billion with terms ending between 2032 and 2045 and bearing interest of between 3.15 % and 3.80 %. The carrying amount was also increased by the issue of EUR bonds of EUR 1.5 billion by Deutsche Telekom AG, with terms ending in 2032 and 2045 and bearing interest of 3.00 % to 3.63 %. Exchange rate effects decreased the carrying amount of bonds and other securitized liabilities by EUR 3.3 billion.

The asset-backed securities collateralized by trade receivables of EUR 1.7 billion (December 31, 2024: EUR 1.5 billion) are bonds issued by T‑Mobile US. Trade receivables were provided as collateral for these bonds, hence they constitute a separate class of financial instruments. Issues in the reporting period in the amount of EUR 0.5 billion when translated into euros increased the carrying amount. By contrast, repayments of EUR 0.2 billion when translated into euros had a decreasing effect on the carrying amount. Exchange rate effects also decreased the carrying amount by EUR 0.1 billion. As of the reporting date, trade receivables with a carrying amount of EUR 2.1 billion when translated into euros (December 31, 2024: EUR 1.8 billion) were pledged as collateral for these bonds.

The carrying amount of liabilities to banks increased by EUR 1.2 billion compared with December 31, 2024 to EUR 3.5 billion, mainly due to T‑Mobile US utilizing a credit line backed by an export credit agency (ECA Facility) to finance network equipment-related purchases amounting to EUR 0.9 billion when translated into euros.

The liabilities with the right of creditors to priority repayment in the event of default of EUR 1.0 billion (December 31, 2024: EUR 1.3 billion) relate primarily to bonds issued by Sprint. Collateral was provided for these bonds, hence they constitute a separate class of financial instruments. The main factor reducing the carrying amount was repayments made in the reporting period in the amount of EUR 0.2 billion when translated into euros. At the reporting date, cash and cash equivalents with a carrying amount of EUR 72 million (December 31, 2024: EUR 70 million) when translated into euros were pledged as collateral for these bonds.

The carrying amount of other interest-bearing liabilities decreased by EUR 0.4 billion compared with December 31, 2024 to EUR 6.0 billion. The carrying amount decreased by EUR 0.2 billion due to scheduled repayments of loans for the acquisition of 5G licenses and broadcasting rights in the Germany operating segment. Exchange rate effects decreased the carrying amount of other interest-bearing liabilities by EUR 0.1 billion.

The carrying amount of other non-interest-bearing liabilities decreased by EUR 0.3 billion to EUR 1.9 billion, due in part to exchange rate effects.

The carrying amount of derivative financial liabilities decreased by EUR 0.2 billion compared with December 31, 2024 to EUR 2.5 billion. It was mainly reduced by measurement effects from interest rate swaps in cash flow hedges, which decreased the carrying amount by EUR 0.2 billion.

For further information on derivative financial liabilities, please refer to the section “Disclosures on financial instruments.”

The carrying amount of current and non-current lease liabilities decreased by EUR 2.0 billion compared with December 31, 2024 to EUR 38.3 billion. Lease liabilities decreased by EUR 0.5 billion in the United States operating segment, mainly due to the lower number of new contracts following the decommissioning of the former Sprint’s wireless network and other synergies from the Sprint Merger. Exchange rate effects, in particular from the translation of U.S. dollars into euros, reduced the carrying amount by EUR 1.3 billion. Lease liabilities in the Germany operating segment and in the Group Headquarters & Group Services segment decreased by a total of EUR 0.2 billion.

Trade and other payables

The carrying amount of trade and other payables decreased by EUR 0.6 billion to EUR 8.9 billion. This was due to lower liabilities in the United States, Europe, and Germany operating segments. Exchange rate effects, in particular from the translation from U.S. dollars into euros, also decreased the carrying amount. By contrast, effects of changes in the composition of the Group from the acquisitions of Vistar Media and Blis in the United States operating segment increased the carrying amount.

For further information on the acquisitions of Vistar Media and Blis, please refer to the section “Changes in the composition of the Group and other transactions.”

Provisions for pensions and other employee benefits

The carrying amount of provisions for pensions and other employee benefits decreased by EUR 0.6 billion compared with December 31, 2024 to EUR 2.6 billion. Overall, the remeasurement of defined benefit plans resulted in an actuarial gain of EUR 0.5 billion to be recognized directly in equity, mainly due to the increase in the discount rate and in the fair values of plan assets compared with December 31, 2024. 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

The carrying amount of current and non-current other provisions decreased by EUR 0.6 billion compared with the end of 2024 to EUR 7.2 billion. Other provisions for personnel costs decreased by EUR 0.4 billion, primarily in connection with the bonuses paid out to employees in the United States operating segment and an interest rate-based decline in the carrying amount of the provision recognized for the Civil Health Insurance Fund (Postbeamtenkrankenkasse – PBeaKK). Furthermore, provisions for procurement and sales support and provisions for restoration obligations each decreased by EUR 0.1 billion.

Other liabilities

The carrying amount of current and non-current other liabilities increased by EUR 0.3 billion to EUR 5.2 billion, mainly due to an increase in liabilities from other taxes by EUR 0.4 billion. By contrast, liabilities from early retirement arrangements for civil servants decreased by EUR 0.1 billion.

Current and non-current contract liabilities

The carrying amount of current and non-current contract liabilities increased by EUR 0.1 billion compared with December 31, 2024 to EUR 3.5 billion. These substantially include deferred revenues. In the Germany operating segment, contract liabilities increased by EUR 0.2 billion. By contrast, contract liabilities in the United States operating segment decreased by EUR 0.1 billion.

Shareholders’ equity

The carrying amount of shareholders’ equity decreased by EUR 0.9 billion compared with December 31, 2024 to EUR 97.8 billion. Transactions with owners reduced shareholders’ equity by EUR 2.4 billion, mainly in connection with the T‑Mobile US 2025 share buy-back program. Dividend payments to other shareholders of subsidiaries reduced shareholders’ equity by EUR 0.5 billion. This included cash dividends paid by T‑Mobile US to non-controlling interests, as declared in the reporting period. Furthermore, the carrying amount was reduced by Deutsche Telekom AG’s share buy-back program that started in January 2025 with share buy-backs of EUR 0.4 billion, with profit of EUR 4.3 billion and capital increases from share-based payments of EUR 0.1 billion having an increasing effect.

Other comprehensive income decreased the carrying amount by EUR 2.0 billion, mainly due to currency translation effects recognized directly in equity of EUR -2.6 billion and income taxes relating to components of other comprehensive income of EUR -0.1 billion. The remeasurement of defined benefit plans of EUR 0.5 billion and gains from hedging instruments of EUR 0.2 billion had an increasing effect.

For further information on the share buy-back program of Deutsche Telekom AG and T‑Mobile US, please refer to the section “Other transactions that had no effect on the composition of the Group.”

The following table shows the changes in the composition of the Group and the development of transactions with owners: