Segment reporting

The following table provides an overview of Deutsche Telekom’s operating segments and the Group Headquarters & Group Services segment for the first half of 2019 and the first half of 2018.

The acquisition of 100 percent of the shares in the telecommunications provider Tele2 Netherlands Holding N.V. by T-Mobile Netherlands Holding B.V. was consummated on January 2, 2019. Since the acquisition date, Tele2 Netherlands has been allocated to the Group Development operating segment and included in Deutsche Telekom’s consolidated financial statements as a fully consolidated subsidiary.

In accordance with the Company’s own principles of segment management, when loans with embedded derivatives are granted internally to Group entities, the derivative component is recognized separately in the creditor company’s financial statements and measured at fair value through profit or loss.

For details on the development of operations in the operating segments and the Group Headquarters & Group Services segment, please refer to the section “Development of business in the operating segments” in the interim Group management report.