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 2023 and the first half of 2022.

For further information, please refer to the section “Development of business in the operating segments” in the interim Group management report.

Effective July 1, 2022, Deutsche Telekom Security GmbH and the security business in Germany, Austria, Switzerland, Hungary, and Slovakia were reassigned from the Systems Solutions operating segment to the Germany operating segment. Prior-year comparatives were adjusted retrospectively.

As a result of the agreement concluded on July 13, 2022, the GD tower companies, which operated the cell tower business in Germany and Austria in the Group Development operating segment, had been recognized as a discontinued operation in the interim consolidated financial statements from the third quarter of 2022 until their sale effective February 1, 2023. The relevant comparative period in the consolidated income statement was adjusted with retrospective effect.

In response to the IFRS Interpretations Committee’s agenda decision published in May 2022 on transactions involving the commercial resale of software, Deutsche Telekom has implemented comprehensive changes to its accounting practices with respect to the recognition of gross vs. net revenues, effective the start of the third quarter of 2022. The prior-year comparatives for revenue and goods and services purchased were adjusted accordingly with retrospective effect.

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 also in the creditor company’s segment financial statements and measured at fair value through profit or loss.