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Customer development

Customer development – United States

thousands

 

 

 

 

 

 

Mar. 31, 2026

Dec. 31, 2025

Change
Mar. 31, 2026/
Dec. 31, 2025 
%

Mar. 31, 2025

Change
Mar. 31, 2026/
Mar. 31, 2025 
%

Postpaid accounts a,b,c,d

34,439

34,240

0.6

31,099

10.7

a

In the first quarter of 2026, we recognized a base adjustment to decrease postpaid accounts by 18 thousand, primarily due to combining certain business accounts that have multiple billing account numbers.

b

In the third quarter of 2025, we acquired 1.4 million postpaid accounts through the UScellular Acquisition, which includes the impact of certain base adjustments to align the policies of UScellular and T‑Mobile US.

c

In the third quarter of 2025, we acquired 633 thousand postpaid accounts from Metronet and other acquisitions.

d

In the second quarter of 2025, we acquired 85 thousand postpaid accounts from Lumos.

Postpaid accounts

At March 31, 2026, the United States operating segment (T‑Mobile US) had 34.4 million postpaid accounts, compared to 31.1 million at March 31, 2025.

Postpaid net account additions were 217 thousand in the first quarter of 2026, compared to 205 thousand in the first quarter of 2025. Postpaid net account additions increased primarily from higher gross account additions, including fiber account additions following the acquisitions of Metronet and Lumos. The increase in postpaid net account additions was partially offset by higher account deactivations driven by higher industry switching and the impact of a growing account base, including following the UScellular Acquisition.

Development of operations

Development of operations – United States

millions of €

 

 

 

 

 

 

 

 

Q1 2026

Q1 2025

Change

Change
%

FY 2025

Revenue

 

19,744

19,800

(56)

(0.3)

78,097

Service revenue

 

16,112

16,081

31

0.2

63,176

EBITDA

 

8,319

8,874

(554)

(6.2)

33,186

Special factors affecting EBITDA

 

(567)

20

(587)

n.a.

(861)

EBITDA (adjusted for special factors)

 

8,886

8,853

33

0.4

34,046

EBITDA AL

 

6,921

7,636

(715)

(9.4)

28,336

Special factors affecting EBITDA AL

 

(818)

13

(830)

n.a.

(917)

EBITDA AL (adjusted for special factors)

 

7,738

7,623

115

1.5

29,252

EBITDA AL margin (adjusted for special factors)

%

39.2

38.5

 

 

37.5

Depreciation, amortization and impairment losses

 

(4,342)

(3,926)

(416)

(10.6)

(15,508)

Profit (loss) from operations (EBIT)

 

3,977

4,947

(971)

(19.6)

17,677

EBIT margin

%

20.1

25.0

 

 

22.6

Cash capex

 

(2,272)

(2,390)

118

4.9

(11,060)

Cash capex (before spectrum investment)a

 

(2,260)

(2,325)

65

2.8

(8,889)

a

Excluding cash outflows for investments in the acquisition of customer bases.

Revenue, service revenues

Total revenue for the United States operating segment of EUR 19.7 billion in the first quarter of 2026 decreased by 0.3 % due to currency exchange effects, compared to EUR 19.8 billion in the first quarter of 2025. In U.S. dollars, T‑Mobile US’ total revenue increased by 10.9 % during the same period. Total revenue increased primarily due to higher service and equipment revenues. The components of these changes are described below.

Service revenues increased in the first quarter of 2026 by 0.2 % to EUR 16.1 billion. In U.S. dollars, T‑Mobile US’ service revenues increased by 11.5 % during the same period. This increase resulted from higher postpaid revenues, primarily due to higher average postpaid accounts, including following the acquisitions of the UScellular Wireless Business, Metronet and Lumos, and higher postpaid Average Revenue per Account (ARPA). The increase in service revenues was partially offset by lower prepaid revenues. This decrease was primarily from lower average revenue per customer, primarily from dilution from promotional activity and rate plan mix, partially offset by higher average prepaid customers.

Equipment revenues decreased in the first quarter of 2026. In U.S. dollars, T‑Mobile US’ equipment revenues increased. The increase was driven by an increase in device sales revenue, primarily from higher average revenue per device sold, net of promotions. The increase in average revenue per device sold, net of promotions, was primarily driven by an increase in the high-end phone mix. The increase in equipment revenues was also driven by an increase in liquidation revenue, primarily due to a higher number of liquidated devices and an increase in the high-end phone mix.

Other revenues were essentially flat.

Adjusted EBITDA AL, EBITDA AL

In euros, adjusted EBITDA AL increased by 1.5 % to EUR 7.7 billion in the first quarter of 2026, compared to EUR 7.6 billion in the first quarter of 2025, which includes the impact of currency exchange effects. The adjusted EBITDA AL margin increased to 39.2 % in the first quarter of 2026, compared to 38.5 % in the first quarter of 2025. In U.S. dollars, adjusted EBITDA AL increased by 12.9 % during the same period. Adjusted EBITDA AL increased primarily due to higher total service revenues and higher equipment revenues. This increase was partially offset by higher costs following the acquisition of the UScellular Wireless Business, higher equipment costs, primarily from a higher average cost per device sold, primarily driven by an increase in the high-end phone mix. The increase in adjusted EBITDA AL was also partially offset by higher wholesale network access costs and amortization of customer installation fees paid to Metronet and Lumos, higher bad debt expense, higher advertising expense, and an increase in liquidations costs, primarily due to a higher number of liquidated devices and an increase in the high-end phone mix.

EBITDA AL in the first quarter of 2026 included special factors of EUR ‑818 million compared to EUR 13 million in the first quarter of 2025. The change in special factors was primarily due to higher UScellular Merger-related costs, including accelerated lease amortization, higher severance and restructuring costs related to the 2025–2026 Workforce Transformation, legal-related insurance recoveries recognized in the first quarter of 2025 related to the August 2021 cyberattack, and higher costs related to network restructuring. Overall, EBITDA AL decreased by 9.4 % to EUR 6.9 billion in the first quarter of 2026, compared to EUR 7.6 billion in the first quarter of 2025, primarily due to the factors described above, including special factors.

Profit/loss from operations (EBIT)

EBIT decreased by 19.6 % to EUR 4.0 billion in the first quarter of 2026, compared to EUR 4.9 billion in the first quarter of 2025, primarily due to currency exchange effects and higher depreciation, amortization, and impairment losses, partially offset by higher EBITDA AL as discussed above. In U.S. dollars, EBIT decreased by 10.6 % during the same period. In euros, depreciation, amortization and impairment losses increased by 10.6 % during the same period. In U.S. dollars, depreciation, amortization and impairment losses increased by 23.1 % in the same period primarily from higher depreciation expense from the acceleration of certain network and technology assets in the current period, including UScellular restructuring, and higher depreciation expense from assets acquired in the acquisition of the UScellular Wireless Business and the continued build-out of the nationwide 5G network.

Cash capex (before spectrum investment), cash capex

Cash capex (before spectrum investment) decreased due to currency exchange effects by 2.8 % to EUR 2.3 billion in the first quarter of 2026, compared to EUR 2.3 billion in the first quarter of 2025. In U.S. dollars, cash capex (before spectrum investment) increased by 7.1 % during the same period due to an increase in purchases of intangible assets and an increase in purchases of property and equipment, including for the continued build-out of the nationwide 5G network and incremental capital expenditures following the acquisition of the UScellular Wireless Business.

Cash capex decreased by 4.9 % to EUR 2.3 billion in the first quarter of 2026, compared to EUR 2.4 billion in the first quarter of 2025. In U.S. dollars, cash capex increased by 4.8 % during the same period primarily due to an increase in purchases of property and equipment and incremental capital expenditures following the acquisition of the UScellular Wireless Business as discussed above.

5G
Refers to the mobile communications standard launched in 2020, which offers data rates in the gigabit range, mainly over the 3.6 GHz and 2.1 GHz bands, converges fixed-network and mobile communications, and supports the Internet of Things.
Glossary
AL – After Leases
Since the start of the 2019 financial year, Deutsche Telekom has taken the effects of the first-time application of IFRS 16 “Leases” into account when determining financial performance indicators. “EBITDA after leases” (EBITDA AL) is calculated by adjusting EBITDA for depreciation of the right-of-use assets and for interest expenses on recognized lease liabilities. When determining “free cash flow after leases” (free cash flow AL), free cash flow is adjusted for the repayment of lease liabilities.
Glossary
Postpaid
Customers who pay for communication services after receiving them (usually on a monthly basis).
Glossary
Prepaid
In contrast to postpaid contracts, prepaid communication services are services for which credit has been purchased in advance with no fixed-term contractual obligations.
Glossary
Wholesale
Refers to the business of selling services to telecommunications companies which sell them to their own retail customers either directly or after further processing.
Glossary

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