Development of selected financial data

Net revenue, service revenue ^a

• Net revenue increased by 2.3 % to EUR 56.3 billion. On an organic basis, revenue was up 2.5 % against the prior-year level. Service revenue increased by 3.9 % to EUR 47.6 billion; in organic terms, the increase was 4.1 %.
• The Germany segment increased revenue by 3.1 % year-on-year on the back of the strong development of service revenues.
• In the United States segment, revenue grew by 1.3 %; in organic terms, revenue was up 1.5 %, driven in part by the strong development of service revenue.
• Revenue in our Europe segment grew by 6.1 % on account of higher service revenues.
• Revenue in the Systems Solutions segment was up 3.6 % year-on-year, on the back of growth in the Cloud, Digital, and Road Charging portfolio areas.

billions of €

EBITDA AL (adjusted for special factors) ^a

• Adjusted EBITDA AL grew by 6.5 % to EUR 21.3 billion. In organic terms, it increased by 6.2 %.
• In the Germany segment, adjusted EBITDA AL increased by 2.2 % on the back of high-value revenue growth and enhanced cost efficiency.
• In the United States segment, adjusted EBITDA AL was up by 8.2 % due to higher service revenue and lower costs. Adjusted core EBITDA AL grew by 9.4 %.
• Adjusted EBITDA AL in the Europe segment grew by 8.4 % due to a positive net margin.
• In the Systems Solutions segment, adjusted EBITDA AL grew by 3.4 % due to increased revenue in the Cloud area.
• The adjusted EBITDA AL margin improved from 36.3 % to 37.8 %. The adjusted EBITDA AL margin was 40.5 % in the Germany segment, 39.0 % in the United States segment, and 36.1 % in the Europe segment.

billions of €

Profit/loss from operations (EBIT) ^a

• EBIT decreased substantially to EUR 11.7 billion, mainly as a result of the gain on deconsolidation from the sale of GD Towers recognized in the prior year.
• Special factors of EUR ‑0.8 billion had a negative impact on EBITDA AL. The prior-year period included gains on deconsolidation as well as disposals and additions, totaling EUR 12.4 billion on a net basis, primarily from the sale of GD Towers.
• Correspondingly, EBITDA AL declined by 35.5 % to EUR 20.5 billion.
• At EUR 12.1 billion, depreciation, amortization and impairment losses were EUR 0.2 billion higher than in the prior year. The increase primarily related to the United States and Germany operating segments.

billions of €

Net profit

• Net profit decreased significantly to EUR 4.1 billion, due to the gain on deconsolidation from the sale of GD Towers in the prior year.
• Loss from financial activities decreased by EUR 0.3 billion to EUR 2.7 billion. This was primarily due to the increase in other financial income as a result of higher interest income from the measurement of provisions and liabilities in connection with the subsequent measurement of the provision recognized for the Civil Service Health Insurance Fund (Postbeamtenkrankenkasse – PBeaKK).
• Tax expense increased by EUR 1.1 billion to EUR 2.3 billion.
• Profit attributable to non-controlling interests increased by EUR 0.5 billion to EUR 2.6 billion; a trend mainly attributable to the United States segment.
• Adjusted earnings per share rose from EUR 0.77 to EUR 0.95.

billions of €

For a reconciliation for the organic development of key figures for the prior-year period, please refer to the section “Additional information.”

Equity ratio

• The equity ratio decreased by 0.2 percentage points against December 31, 2023 to 31.2 %, due to the increase of EUR 5.7 billion in total assets/total liabilities and shareholders’ equity. Shareholders’ equity increased by EUR 1.2 billion to EUR 92.4 billion.
• The increase in shareholders’ equity is primarily attributable to profit (EUR 6.7 billion) and to other comprehensive income (EUR 3.0 billion).
• Shareholders’ equity was reduced in particular by dividend payments to our shareholders (EUR 3.8 billion) and to other shareholders of subsidiaries – including cash dividends paid by T‑Mobile US (EUR 1.3 billion), as well as by transactions with owners (EUR 2.6 billion), mainly in connection with T‑Mobile US’ share buy-backs. Deutsche Telekom AG’s share buy-backs (EUR 0.9 billion) also reduced shareholders’ equity.

%

Net debt ^b

• Net debt increased by EUR 2.8 billion compared with the end of 2023 to EUR 135.1 billion.
• This increase was attributable primarily to the share buy-back program at T‑Mobile US (EUR 5.5 billion), dividend payments – including to non-controlling interests (EUR 4.6 billion), and exchange rate effects (EUR 3.3 billion). Additions of lease liabilities and right-of-use assets (EUR 1.8 billion), corporate transactions (EUR 1.1 billion), and the share buy-back program at Deutsche Telekom AG (EUR 0.9 billion) also had an increasing effect.
• The main factors reducing net debt were free cash flow (before dividend payments and spectrum investment) of EUR 11.6 billion, and EUR 3.5 billion from the sale of T‑Mobile US shares by Deutsche Telekom.

billions of €

Cash capex (before spectrum investment)

• Cash capex (before spectrum investment) decreased from EUR 9.2 billion to EUR 8.3 billion.
• In the United States segment, cash capex decreased by EUR 1.0 billion, mainly as a result of higher cash outflows for the accelerated build-out of the 5G network in the prior years. By contrast, cash capex in the Germany segment increased by EUR 0.3 billion.
• Cash capex (including spectrum investment) decreased by EUR 0.9 billion to EUR 8.6 billion. In the reporting period, cash outflows for mobile spectrum licenses in the amount of EUR 0.2 billion were recorded in the United States segment. In the prior-year period, payments were made for mobile spectrum licenses in the amount of EUR 0.1 billion in the United States segment, and of EUR 0.2 billion in the Europe segment.

billions of €

Free cash flow AL (before dividend payments and spectrum investment)

• Free cash flow AL was up by EUR 1.8 billion to EUR 8.9 billion.
• This was attributable to the strong development of the operating business and lower cash capex (before spectrum investment).
• Higher tax payments and net interest payments had an offsetting effect.

billions of €

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

For further information on the development of business in the operating segments, please refer to the section “Development of business in the operating segments” in the interim Group management report and to the IR back-up on our Investor Relations website.

For further information on our performance indicators and alternative performance measures, please refer to the section “Management of the Group” in the 2023 combined management report (2023 Annual Report) and to our Investor Relations website.