Financial position of the Group

As of March 31, 2025, our total assets amounted to EUR 305.0 billion, which was almost at the level as of December 31, 2024.

On the assets side, cash and cash equivalents increased by EUR 8.5 billion against the end of the prior year to EUR 17.0 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 15.9 billion, trade receivables decreased by EUR 0.5 billion against the 2024 year-end level. This was the result of 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.

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 1.7 billion related to the agreement between T‑Mobile US and N77. 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 agreement between T‑Mobile US and N77, please refer to “Agreements on spectrum licenses” under “The economic environment.”

For further information on the acquisitions of Vistar Media and Blis, please refer to the section “Group organization, strategy, and management.”

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 decreased by EUR 1.7 billion compared with 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.

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 GD Towers 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.

Current and non-current financial assets decreased by EUR 0.1 billion to EUR 7.7 billion. The carrying amount of the derivatives without a hedging relationship decreased by EUR 0.2 billion, in particular in connection with the measurement of cross-currency swaps. Exchange rate effects also reduced the carrying amount by EUR 0.1 billion. The net total of originated loans and receivables increased by EUR 0.2 billion.

Non-current assets and disposal groups held for sale increased by EUR 1.9 billion to EUR 2.1 billion. EUR 1.7 billion of the increase related to the agreement for the sale of spectrum licenses between T‑Mobile US and N77, and EUR 0.2 billion to the exchange of spectrum licenses agreed between T‑Mobile US and other telecommunications companies.

Miscellaneous assets increased by EUR 0.4 billion to EUR 13.5 billion. EUR 0.2 billion of this increase was attributable to higher inventories of high-value mobile terminal equipment in the United States operating segment. Current and non-current other assets also contributed EUR 0.2 billion to this increase, due in part to an increase in receivables from other taxes.

On the liabilities and shareholders’ equity side, current and non-current financial liabilities increased by EUR 4.7 billion compared with the end of 2024 to EUR 116.8 billion.

Bonds and other securitized liabilities increased by a total of EUR 4.4 billion, mainly due to USD bonds of USD 3.5 billion (EUR 3.3 billion) issued by T‑Mobile US and EUR bonds of EUR 2.8 billion. The carrying amount was also increased by the issue of EUR bonds of EUR 1.5 billion by Deutsche Telekom AG. Exchange rate effects decreased the carrying amount of bonds and other securitized liabilities by EUR 3.3 billion.

Liabilities to banks increased by EUR 1.2 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. Other interest-bearing liabilities decreased by EUR 0.4 billion and liabilities with the right of creditors to priority repayment in the event of default by EUR 0.3 billion.

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 a 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 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.

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 decreased by EUR 0.6 billion to EUR 7.2 billion compared with the end of 2024. 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.

Miscellaneous liabilities increased by EUR 0.7 billion compared to December 31, 2024 to EUR 9.7 billion, with other liabilities increasing by EUR 0.3 billion, mainly due to an increase in liabilities from other taxes. In addition, income tax liabilities increased by EUR 0.3 billion and contract liabilities by EUR 0.1 billion.

Shareholders’ equity decreased by EUR 0.9 billion as of December 31, 2024 to EUR 97.8 billion, with transactions with owners reducing shareholders’ equity by EUR 2.4 billion. This mainly related to the T‑Mobile US 2025 share buy-back program. Other comprehensive income decreased the carrying amount by EUR 2.0 billion. 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.

For further information, 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 decreased by EUR 5.4 billion in the first quarter of 2025 to EUR 131.9 billion, due to free cash flow (before dividend payments and spectrum investment) and exchange rate effects. By contrast, the main factors increasing net debt were the share buy-back program at T‑Mobile US, additions to lease liabilities and to right-of-use assets, and the corporate transactions in the United States operating segment. Other effects included the acquisition of spectrum of EUR 0.1 billion.

Free cash flow AL (before dividend payments and spectrum investment) increased by EUR 1.9 billion year-on-year to EUR 5.6 billion. The following effects impacted on this development:

Net cash from operating activities increased by EUR 1.6 billion to EUR 11.2 billion as a result of the strong development of the operating business. Lower cash outflows in connection with the integration of Sprint in the United States also had an increasing effect, as did lower tax payments of EUR 0.2 billion. By contrast, the increase in net interest payments of EUR 0.1 billion had a reducing effect.

Cash capex (before spectrum investment) decreased by EUR 0.3 billion to EUR 4.3 billion. In the Germany operating segment, cash capex totaled around EUR 1.2 billion in the reporting year, a decline of EUR 0.2 billion compared with the prior-year period. This was primarily due to the timing of the allocation of investments in the fiber build-out. In the United States operating segment, cash capex decreased by EUR 0.1 billion to EUR 2.3 billion. In the Europe operating segment, cash capex stood at EUR 0.5 billion, which was on a par with the prior-year period. We continue to invest here in the provision of broadband and fiber-optic technology and in 5G as part of our integrated network strategy. In the Systems Solutions operating segment, cash capex remained on a par with the prior-year period at EUR 0.1 billion.

A decrease of EUR 0.1 billion in cash outflows – in particular in the United States operating segments – for the repayment of lease liabilities had an increasing effect on free cash flow AL.

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