Development of selected financial data

Net revenue, service revenue

• Net revenue increased by 6.5 % to EUR 29.8 billion. In organic terms, net revenue increased by 3.8 %. Service revenue was up 6.3 % to EUR 25.0 billion. In organic terms, net revenue increased by 3.5 %.
• Revenue in the Germany segment decreased by 1.3 % on account of lower terminal equipment sales. High-value service revenue grew by 1.4 %.
• Revenue in the United States segment increased by 9.9 %, in part due to the positive development of service and terminal equipment revenue.
• Revenue in our Europe segment grew by 3.2 % on account of higher service revenue.
• Revenue in the Systems Solutions segment was up 1.7 %, on the back of growth in the Digital and Road Charging areas.

billions of €

EBITDA AL (adjusted for special factors)

• Adjusted EBITDA AL grew by 7.9 % to EUR 11.3 billion. In organic terms, it increased by 5.3 %.
• Adjusted EBITDA AL in the Germany segment increased by 2.3 %, driven by high-value service revenue growth and enhanced cost efficiency.
• Adjusted EBITDA AL in the United States segment grew by 10.0 % due to higher service and terminal equipment revenues.
• Adjusted EBITDA AL in the Europe segment grew by 6.7 % due to a positive net margin.
• In the Systems Solutions segment, adjusted EBITDA AL increased by 4.4 % due to revenue growth in the Digital and Road Charging areas.
• The adjusted EBITDA AL margin improved by 0.5 percentage points to 38.0 %. The adjusted EBITDA AL margin was 42.4 % in the Germany segment, 38.5 % in the United States segment, and 37.4 % in the Europe segment.

billions of €

Profit/loss from operations (EBIT)

• EBIT increased substantially by 19.0 % to EUR 6.8 billion.
• Special factors were down by EUR 0.2 billion, and had an impact of EUR ‑0.1 billion on EBITDA AL. Special factors in the prior-year period included costs associated with the integration of Sprint.
• EBITDA AL also increased substantially, by 10.0 % to EUR 11.2 billion.
• At EUR 6.0 billion, depreciation, amortization and impairment losses were slightly less than in the prior-year period, mainly due to lower depreciation and amortization in the United States segment.

billions of €

Net profit

• Net profit increased substantially by 43.5 % to EUR 2.8 billion.
• Loss from financial activities decreased from EUR ‑1.4 billion to EUR ‑0.9 billion, mainly as a result of the reversals of impairment losses on our investments in GD Towers in the amount of EUR 0.4 billion and in GlasfaserPlus in the amount of EUR 0.2 billion.
• Tax expense increased by EUR 0.3 billion to EUR 1.5 billion.
• Profit attributable to non-controlling interests increased by EUR 0.3 billion to EUR 1.5 billion; this increase was primarily attributable to the United States segment.
• Adjusted earnings per share rose from EUR 0.45 to EUR 0.50.

billions of €

Equity ratio

• The equity ratio decreased by 0.2 percentage points to 32.1 %. Shareholders’ equity decreased by EUR 0.9 billion to EUR 97.8 billion, while total assets/total liabilities held steady at EUR 305.0 billion.
• Shareholders’ equity was reduced in particular by transactions with owners (EUR 2.4 billion), mainly in connection with T‑Mobile US’ share buy-back program, as well as other comprehensive income (EUR 2.0 billion), T‑Mobile US’ dividend payments (EUR 0.5 billion), and by Deutsche Telekom AG’s share buy-backs (EUR 0.4 billion).
• Profit in particular had an increasing effect on shareholders’ equity (EUR 4.3 billion).

%

Net debt ^a

• Net debt decreased by EUR 5.4 billion to EUR 131.9 billion.
• The main factors reducing net debt were free cash flow (before dividend payments and spectrum investment) of EUR 6.9 billion and exchange rate effects (EUR 4.2 billion).
• Net debt increased in particular due to the share buy-back program at T‑Mobile US (EUR 2.4 billion). Additions to lease liabilities and to right-of-use assets (EUR 0.8 billion) and corporate transactions (EUR 0.8 billion) also had an increasing effect.

billions of €

Cash capex (before spectrum investment)

• Cash capex (before spectrum investment) decreased from EUR 4.7 billion to EUR 4.3 billion.
• Cash capex in the Germany segment decreased by EUR 0.2 billion, mainly on account of the timing of the allocation of investments in the fiber build-out. In the United States segment, cash capex decreased by EUR 0.1 billion.
• Cash capex (including spectrum investment) decreased from EUR 4.7 billion to EUR 4.5 billion. In the reporting period, payments totaling EUR 0.1 billion were made for mobile spectrum licenses in the United States and Europe operating segments. In the prior-year period, EUR 0.1 billion was paid for mobile spectrum licenses in the United States segment.

billions of €

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

• Free cash flow AL was up by EUR 1.9 billion to EUR 5.6 billion.
• Free cash flow AL was positively affected by the strong development of the operating business, lower cash capex (before spectrum investment), lower costs associated with the integration of Sprint in the United States, and lower tax payments.
• By contrast, higher net interest payments had a decreasing effect.

billions of €

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

For further information, please refer to the sections “Development of business in the Group” and “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 2024 combined management report (2024 Annual Report) and to our Investor Relations website.