Germany

Customer development

Total

In Germany we continue to be market leader both in terms of fixed-network and mobile revenues. This success is attributable to our high-performance networks, a broad product portfolio, and good service. We want to offer our customers a seamless and technology-neutral telecommunications experience. We regularly adapt our product portfolio to address the needs of our customers.

The fixed-network broadband market hosts a large number of players with differing infrastructures – from national through to regional providers. In order to consolidate our position on the market as Germany’s leading telecommunications provider, we continue to add new offerings to our portfolio.

Mobile communications

The number of high-value mobile contract customers under the Telekom and congstar brands grew by 592 thousand customers overall. Sustained high demand for mobile rate plans with data volumes continues to drive this trend. The number of prepaid customers grew by 3.1 million against the start of 2024, particularly with regard to M2M SIM cards used in the automotive industry.

Fixed network

Demand remained high for our fiber-optic-based lines, with the total number increasing to 20.6 million since the end of 2023. This strong growth is driven by demand for higher bandwidths.

The number of retail broadband lines remained at a high level, increasing to 15.1 million compared with December 31, 2023. 48.2 % of the customers have subscribed to a rate plan with speeds of 100 Mbit/s or higher. The number of fixed-network lines stood at 17.3 million.

Wholesale

As of June 30, 2024, fiber-optic-based lines accounted for 70.4 % of all lines – 3.0 percentage points more than at the end of 2023. This growth is a result of the demand for our commitment agreements. Ongoing demand among retail customers for higher-bandwidth lines also contributed to the increase. The number of unbundled local loop lines decreased by 346 thousand compared with the end of the prior year, while fiber-optic-based lines increased by 203 thousand. These developments result partly from the shift to higher-value fiber-optic-based lines and partly from consumers switching to other providers. In addition, our wholesale partners are migrating their retail customers to their own infrastructures. The total number of wholesale lines at the end of June 2024 was 10.7 million.

Development of operations

Revenue, service revenue

In the first half of 2024, we generated revenue of EUR 12.7 billion, which was up by 3.1 % against the prior-year period. This was mainly attributable to growth in service revenues of 2.0 %, due to increased revenue in the fixed-network core business, largely driven by broadband and IT business, and to higher mobile service revenues. Another revenue driver was the 11.6 % increase in non-service revenues, primarily from mobile terminal equipment revenues.

Revenue from Consumers increased by 6.1 % compared with the prior-year period. Revenue from broadband business continued to grow, due in part to the positive effects from customer appreciation for reliable networks and high bandwidths. Volume-driven declines in revenue from voice components continued to impact on traditional fixed-network business. The mobile business increased due to higher service revenues, mainly as a result of positive customer development.

Revenue from Business Customers was down 5.5 % against the prior-year period, primarily due to certain revenues being recognized under Wholesale since January 1, 2024. In organic terms, revenue was on a par with the prior-year level at 0.2 %, due in part to the positive trends in IT business and mobile service revenues, with the latter driven mainly by sustained growth in the customer base.

Wholesale revenue was up in the first half of 2024 by 19.4 % year-on-year as a result of the change in disclosure of revenues described under Business Customers. On an organic basis, revenue was slightly higher than in the prior-year period.

Adjusted EBITDA AL, EBITDA AL

Adjusted EBITDA AL increased by EUR 0.1 billion or 2.2 % year-on-year. The main reasons for this increase are a sound operational development, driven by high-value revenue growth, and enhanced cost efficiency, primarily as a result of the lower headcount and the ongoing implementation of efficiency enhancement and digitalization measures. This trend was negatively affected by one-time effects, in particular the premium to compensate for inflation under the scope of the collective agreement. Our adjusted EBITDA AL margin amounted to 40.5 %.

EBITDA AL remained at the level of the prior-year period of EUR 4.7 billion. The effects described with regard to adjusted EBITDA AL included special factors in the amount of EUR 0.4 billion, including for socially responsible staff restructuring.

Profit/loss from operations (EBIT)

Profit from operations amounted to EUR 2.9 billion, a decrease of 0.8 % against the first half of the prior year. The positive development of EBITDA was offset by a year-on-year increase of EUR 72 million in depreciation, amortization and impairment losses, which were mainly attributable to the sale and leaseback of passive network infrastructure in Germany in connection with the sale of GD Towers.

Cash capex (before spectrum investment), cash capex

Cash capex increased by EUR 254 million or 11.0 % compared with the prior-year period. Cash capex totaled around EUR 2.6 billion in the first half of 2024, in particular for the fiber-optic build-out. The number of households passed by our fiber-optic network had increased to 8.8 million by the end of June 2024. In mobile communications, 97.0 % of German households can already use 5G.