Financial position of the Group

As of March 31, 2026, our total assets amounted to EUR 293.5 billion, which was up EUR 3.7 billion against the level as of December 31, 2025. Exchange rate effects, primarily from the translation from U.S. dollars into euros, in particular had an increasing effect on the carrying amount of total assets.

On the assets side, cash and cash equivalents increased by EUR 1.1 billion against the end of the prior year to EUR 8.9 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 16.8 billion, trade receivables decreased by EUR 0.1 billion against the 2025 year-end level, with receivables declining in the Germany operating segment. By contrast, receivables increased slightly in the Europe operating segment. In the United States operating segment, receivables remained more or less on a par with the level as of December 31, 2025, despite an increasing exchange rate effect.

Intangible assets increased by EUR 1.7 billion compared to December 31, 2025 to EUR 135.3 billion. Exchange rate effects increased the carrying amount by EUR 2.5 billion. Investments also increased it by EUR 1.4 billion, with EUR 0.1 billion of this relating to investments in mobile spectrum. Amortization and impairment losses of EUR 1.7 billion reduced it. Reclassifications of intangible assets to non-current assets and disposal groups held for sale also reduced the carrying amount by EUR 0.4 billion. This related to agreements concluded in the reporting period for the exchange of spectrum licenses in the United States operating segment.

Property, plant and equipment decreased by EUR 0.3 billion compared with December 31, 2025 to EUR 64.5 billion. Depreciation and impairment losses reduced the carrying amount by EUR 3.2 billion. The carrying amount was increased by additions of EUR 2.4 billion, primarily in connection with the network modernization and the network build-out (broadband, fiber-optic, and mobile infrastructure), as well as exchange rate effects of EUR 0.6 billion.

Right-of-use assets decreased by EUR 0.2 billion compared with December 31, 2025 to EUR 28.4 billion. Depreciation and impairment losses reduced the net carrying amount by EUR 1.6 billion, while additions totaling EUR 0.9 billion and exchange rate effects of EUR 0.5 billion increased it.

Investments accounted for using the equity method increased from EUR 11.1 billion at December 31, 2025 to EUR 11.2 billion. A capital increase at our investment in GlasfaserPlus and exchange rate effects increased the carrying amount, while proportionate losses from T-Mobile US’ investments in Metronet and Lumos had a decreasing effect.

Current and non-current financial assets decreased by EUR 0.2 billion to EUR 8.3 billion, with the net total of originated loans and receivables decreasing by EUR 0.3 billion. This was mainly due to lower receivables from collateral agreements as surety for credit risks in connection with forward-payer swaps due to normal fluctuations in fair value (EUR 0.2 billion), and payments received from GD Towers in connection with dividends from shareholders’ equity (EUR 0.2 billion).

Non-current assets and disposal groups held for sale increased by EUR 0.5 billion compared with December 31, 2025 to EUR 3.7 billion. EUR 0.4 billion of the increase resulted from agreements concluded in the reporting period for the exchange of spectrum licenses in the United States operating segment. The carrying amount also included spectrum licenses of EUR 3.1 billion in connection with the sale agreed between T‑Mobile US and Grain.

Other assets increased by EUR 1.1 billion compared to December 31, 2025 to EUR 15.7 billion. Current and non-current other assets contributed EUR 0.9 billion to this increase, due in part to an increase in defined benefit assets as well as higher receivables from other taxes. Capitalized contract costs increased by EUR 0.1 billion.

On the liabilities and shareholders’ equity side, current and non-current financial liabilities increased by EUR 2.5 billion compared with the end of 2025 to EUR 112.8 billion, mainly due to exchange rate effects.

Bonds and other securitized liabilities increased by EUR 1.8 billion. USD bonds amounting to EUR 1.7 billion issued by T‑Mobile US and EUR bonds of EUR 2.5 billion, as well as CHF bonds of EUR 0.3 billion issued by Deutsche Telekom AG, increased the carrying amount. By contrast, the carrying amount was reduced by scheduled repayments of USD bonds of EUR 2.4 billion by T‑Mobile US and of a EUR bond of EUR 0.4 billion of Deutsche Telekom AG, as well as by the early repayment of a USD bond of EUR 1.3 billion by T‑Mobile US.

Liabilities collateralized by existing and anticipated trade receivables (including asset-backed securities) increased by EUR 0.9 billion to EUR 2.6 billion. These were liabilities of T‑Mobile US. The carrying amount was increased by issues of EUR 1.3 billion. By contrast, early repayments of EUR 0.4 billion had a decreasing effect on the carrying amount.

Current and non-current lease liabilities decreased by EUR 0.2 billion compared with December 31, 2025 to EUR 36.2 billion. In the Germany and United States operating segments, lease liabilities decreased by EUR 0.1 billion in each case. Lease liabilities in the United States operating segment declined by EUR 0.7 billion, mainly due to the lower number of new contracts and the decommissioning of defunct cell sites and network technology. Exchange rate effects of EUR 0.6 billion reduced the carrying amount.

Trade and other payables decreased by EUR 0.2 billion to EUR 9.4 billion. This was due to lower liabilities in the United States and Europe operating segments. Liabilities increased in the Germany and Systems Solutions operating segments, with exchange rate effects also increasing the carrying amount.

Provisions for pensions and other employee benefits decreased by EUR 0.1 billion compared with December 31, 2025 to EUR 1.8 billion. Overall, the remeasurement of defined benefit plans resulted in an actuarial gain of EUR 0.4 billion to be recognized directly in equity, mainly due to the increase in the fair values of plan assets and the increase in the discount rate compared with December 31, 2025. Benefits paid directly by the employer in the reporting period of EUR 0.2 billion also contributed to the reduction in the carrying amount. The EUR 0.5 billion increase in the pension surplus at Deutsche Telekom AG compared with December 31, 2025 had an increasing effect, which resulted in an additional defined benefit asset under other non-current assets.

Current and non-current other provisions increased by EUR 0.1 billion compared with the end of 2025 to EUR 8.0 billion, mainly due to exchange rate effects. Provisions for termination benefits increased in particular in connection with the 2025–2026 Workforce Transformation at T‑Mobile US. By contrast, other provisions for personnel costs and the provisions for sales and procurement support decreased in connection with the bonuses paid out to employees and sales partners in the United States operating segment.

Miscellaneous liabilities increased by EUR 0.7 billion compared to December 31, 2025 to EUR 9.8 billion, with other liabilities increasing by EUR 0.4 billion, mainly due to an increase of EUR 0.4 billion in liabilities from other taxes. By contrast, liabilities in connection with publicly-funded projects in the Germany operating segment decreased by EUR 0.1 billion. Income tax liabilities increased by EUR 0.2 billion and contract liabilities by EUR 0.1 billion.

Shareholders’ equity decreased by EUR 0.2 billion as of December 31, 2025 to EUR 92.0 billion. Transactions with owners reduced shareholders’ equity by EUR 4.3 billion, and related mainly to the buy-back of shares by T‑Mobile US. The carrying amount was also reduced by Deutsche Telekom AG’s 2026 share buy-back program with share buy-backs of EUR 0.5 billion. Furthermore, cash dividends paid by T‑Mobile US to non-controlling interests, as declared in the reporting period, reduced shareholders’ equity by EUR 0.4 billion, while profit of EUR 3.1 billion and capital increases from share-based payments of EUR 0.2 billion had an increasing effect. Other comprehensive income also increased the carrying amount by EUR 1.7 billion.

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 €

Free cash flow AL (before dividend payments and spectrum investment) increased slightly against the prior-year period to EUR 5.7 billion. The following effects impacted on this development:

Net cash from operating activities declined by EUR 0.3 billion to EUR 10.9 billion. The continued strong development of operations was offset by negative exchange rate effects and higher cash outflows for integration measures as a result of corporate transactions completed in the prior year (primarily the UScellular Acquisition) and for the 2025–2026 Workforce Transformation in the United States operating segment.

Cash capex (before spectrum investment) decreased by EUR 0.5 billion to EUR 3.8 billion. In the Germany operating segment, cash capex totaled EUR 0.8 billion in the reporting period, EUR 0.4 billion less than in the prior-year period. This was primarily due to the timing of investments in the fiber build-out. In the United States operating segment, cash capex stood at EUR 2.3 billion, EUR 0.1 billion less than in the prior-year period due to exchange rate effects. Excluding these effects, cash outflows in the United States operating segment increased, in particular due to higher investments in the continued network build-out and additional capex as a result of the UScellular Acquisition. In the Europe operating segment, cash capex decreased slightly against the level of the prior-year period to EUR 0.5 billion. Cash capex also decreased slightly in the Systems Solutions operating segment.

Proceeds from the disposal of intangible assets (excluding goodwill) and property, plant and equipment increased by EUR 0.1 billion.

An increase of EUR 0.3 billion in cash outflows – in particular in the Germany and United States operating segments – for the repayment of lease liabilities reduced 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.