Financial position of the Group

As of June 30, 2025, our total assets amounted to EUR 281.5 billion, which was down EUR 23.4 billion against the level as of December 31, 2024. Exchange rate effects, primarily from the translation from U.S. dollars into euros, in particular had a decreasing effect on the carrying amount of total assets.

On the assets side, cash and cash equivalents increased by EUR 2.0 billion against the end of the prior year to EUR 10.4 billion.

For further information, please refer to the section “Notes to the consolidated statement of cash flows” in the interim consolidated financial statements.

At EUR 14.9 billion, trade receivables decreased by EUR 1.5 billion against the 2024 year-end level. This resulted from lower receivables in the United States operating segment, mainly due to negative exchange rate effects. Receivables also declined as a result of the lower number of new contracts with equipment installment plans. By contrast, effects of changes in the composition of the Group from the acquisitions of Vistar Media and Blis in the United States operating segment increased the carrying amount of receivables. Receivables also decreased in the Germany operating segment.

Intangible assets decreased by EUR 18.4 billion compared to December 31, 2024 to EUR 130.7 billion. Exchange rate effects of EUR 14.6 billion, primarily from the translation of U.S. dollars into euros, and depreciation, amortization and impairment losses of EUR 3.3 billion decreased the carrying amount. Reclassifications of intangible assets to non-current assets and disposal groups held for sale also reduced the carrying amount by EUR 5.1 billion. In the United States operating segment, this related to the agreed sale of spectrum licenses to Grain for EUR 3.1 billion and the sale of spectrum licenses to N77 for EUR 1.7 billion. In addition, further agreements were made in the reporting period for the exchange of spectrum licenses. Disposals reduced the carrying amount by EUR 0.1 billion, while investments increased it by EUR 3.8 billion. EUR 1.4 billion of this related to the acquisition of mobile spectrum, of which EUR 1.0 billion related to the acquisition of mobile spectrum in the United States operating segment. This included EUR 0.5 billion for the acquisition of the remaining Channel 51 licenses. A further EUR 0.2 billion related to the Germany operating segment and the extension of the allocation of licenses by the Bundesnetzagentur. The Europe operating segment acquired mobile spectrum for EUR 0.2 billion, primarily in the spectrum auction ended in Poland. Effects of changes in the composition of the Group resulting from the acquisition of Vistar Media and Blis in the United States operating segment increased the carrying amount by EUR 0.8 billion, with goodwill accounting for EUR 0.4 billion of this.

For further information on spectrum awards and agreements on spectrum licenses in the United States, please refer to the section “The economic environment.”

For further information on the acquisitions of Vistar Media and Blis, please refer to the section “Group organization, strategy, and management.”

Property, plant and equipment decreased by EUR 3.8 billion compared with December 31, 2024 to EUR 62.8 billion. Depreciation and impairment losses totaling EUR 5.8 billion, exchange rate effects of EUR 3.3 billion, primarily from the translation of U.S. dollars into euros, and disposals of EUR 0.1 billion decreased the carrying amount. Additions, primarily for the upgrade and build-out of the network (broadband, fiber-optic, and mobile infrastructure) increased the carrying amount by EUR 5.2 billion. Reclassifications of right-of-use assets upon expiry of the contractual lease term to property, plant and equipment, primarily for network technology in the United States operating segment, increased the carrying amount by EUR 0.3 billion.

Right-of-use assets decreased by EUR 4.1 billion compared with December 31, 2024 to EUR 28.1 billion. Exchange rate effects, primarily from the translation of U.S. dollars into euros, decreased the carrying amount by EUR 3.0 billion. Depreciation, amortization and impairment losses also reduced the carrying amount by EUR 2.7 billion. The previously mentioned reclassifications to property, plant and equipment also reduced the carrying amount by EUR 0.3 billion. The carrying amount was increased by additions of EUR 1.9 billion.

Investments accounted for using the equity method increased by EUR 1.7 billion compared to December 31, 2024, to EUR 9.0 billion. This was mainly attributable to the acquisition of a 50 % equity stake in the fiber-to-the-home platform Lumos in the United States operating segment for a purchase price of EUR 0.8 billion. Furthermore, reversals of impairment losses were recognized in the reporting period of EUR 0.5 billion and EUR 0.2 billion, respectively, on the carrying amounts of the investments in GD Towers and GlasfaserPlus. These reversals of impairment losses were due to declines in industry-specific financing costs and the resulting lower discount rates, while retaining the existing business plans.

Current and non-current financial assets increased by EUR 0.2 billion to EUR 7.9 billion, with the net total of originated loans and receivables increasing by EUR 0.4 billion. By contrast, derivative financial assets decreased by EUR 0.2 billion.

Non-current assets and disposal groups held for sale increased by EUR 3.1 billion to EUR 3.4 billion. The increase related to the United States operating segment and resulted from the agreed sale of spectrum licenses to Grain for EUR 3.1 billion.

Miscellaneous assets increased by EUR 0.2 billion to EUR 13.3 billion. Current and non-current other assets contributed EUR 0.4 billion to this increase, due in part to higher receivables from other taxes. By contrast, inventories and capitalized contract costs both declined by EUR 0.1 billion.

On the liabilities and shareholders’ equity side, current and non-current financial liabilities decreased by EUR 4.5 billion compared with the end of 2024 to EUR 107.7 billion, mainly due to exchange rate effects.

Bonds and other securitized liabilities declined by EUR 4.0 billion overall. This was entirely attributable to exchange rate effects, primarily from the translation of U.S. dollars into euros, of EUR 9.0 billion. The carrying amount was also reduced by scheduled repayments of a USD bond by T‑Mobile US in the amount of USD 3.0 billion (EUR 2.7 billion) and of a EUR bond in the amount of EUR 0.4 billion. By contrast, the carrying amount was increased by USD bonds issued by T‑Mobile US of USD 3.5 billion (EUR 3.2 billion) and by EUR bonds of EUR 2.8 billion. The carrying amount was also increased by the issue of EUR bonds of EUR 1.5 billion by Deutsche Telekom AG as well as the net issue of commercial papers in the amount of EUR 0.6 billion.

Other interest-bearing liabilities decreased by EUR 0.5 billion, liabilities with the right of creditors to priority repayment in the event of default by EUR 0.3 billion, and other non-interest-bearing liabilities by EUR 0.3 billion. By contrast, liabilities to banks increased by EUR 1.0 billion, mainly due to T‑Mobile US utilizing a credit line backed by an export credit agency (ECA Facility) to finance network equipment-related purchases amounting to EUR 0.8 billion.

Current and non-current lease liabilities decreased by EUR 4.7 billion compared with December 31, 2024 to EUR 35.6 billion. Exchange rate effects, in particular from the translation of U.S. dollars into euros, reduced the carrying amount by EUR 3.6 billion. In addition, lease liabilities decreased by EUR 0.8 billion in the United States operating segment, mainly due to a lower number of new contracts following the decommissioning of the former Sprint’s wireless network and other synergies from the Sprint Merger. Lease liabilities in the Germany operating segment and in the Group Headquarters & Group Services segment decreased by a total of EUR 0.3 billion.

Trade and other payables decreased by EUR 0.6 billion to EUR 8.9 billion. This was due to lower liabilities in the United States and Europe operating segments, mainly as a result of exchange rate effects, in particular from the translation of U.S. dollars to euros. By contrast, effects of changes in the composition of the Group from the acquisitions of Vistar Media and Blis in the United States operating segment increased the carrying amount. Liabilities increased in the Germany and Systems Solutions operating segments.

Provisions for pensions and other employee benefits decreased by EUR 1.0 billion compared with December 31, 2024 to EUR 2.2 billion. Overall, the remeasurement of defined benefit plans resulted in an actuarial gain of EUR 0.9 billion to be recognized directly in equity, mainly due to the increase in the fair values of plan assets and the increase in the discount rate compared with December 31, 2024. Benefits paid directly by the employer in the reporting period also contributed to the reduction in the carrying amount.

Current and non-current other provisions decreased by EUR 1.0 billion to EUR 6.9 billion compared with the end of 2024. Other provisions for personnel costs decreased by EUR 0.7 billion, primarily in connection with the performance-based remuneration components for the prior year paid out to employees in the first half of 2025 and due to an interest rate-based decline in the carrying amount of the provision recognized for the Civil Service Health Insurance Fund (Postbeamtenkrankenkasse – PBeaKK). Furthermore, provisions for restoration obligations decreased by EUR 0.2 billion, and provisions for procurement and sales support by EUR 0.1 billion.

Miscellaneous liabilities increased by EUR 0.2 billion compared to December 31, 2024 to EUR 9.2 billion, with other liabilities increasing by EUR 0.1 billion, mainly due to an increase in liabilities from other taxes. In addition, income tax liabilities increased by EUR 0.1 billion.

Shareholders’ equity decreased by EUR 8.9 billion as of December 31, 2024 to EUR 89.7 billion. Other comprehensive income decreased the carrying amount by EUR 6.6 billion. Shareholders’ equity was reduced in connection with dividend payments for the 2024 financial year to Deutsche Telekom AG shareholders in the amount of EUR 4.4 billion and to other shareholders of subsidiaries in the amount of EUR 1.2 billion. The latter figure includes cash dividends paid by T‑Mobile US to non-controlling interests, as declared in the reporting period. Transactions with owners also decreased the carrying amount by EUR 4.6 billion, mainly in connection with the T‑Mobile US 2025 share buy-back program. The carrying amount was also reduced by Deutsche Telekom AG’s share buy-back program that started in January 2025 with share buy-backs of EUR 0.9 billion, with profit of EUR 8.4 billion and capital increases from share-based payments of EUR 0.4 billion having an increasing effect.

For further information, please refer to the section “Selected notes to the consolidated statement of financial position” in the interim consolidated financial statements.

Changes in net debt

millions of €

Net debt decreased by EUR 10.8 billion in the first half of 2025 to EUR 126.5 billion, mainly due to free cash flow (before dividend payments and spectrum investment), exchange rate effects, and the sale of spectrum licenses by T‑Mobile US to N77. By contrast, the main factors increasing net debt were the dividend payments (including to non-controlling interests), the share buy-back program at T‑Mobile US, additions to lease liabilities and right-of-use assets, and the corporate transactions, primarily in the United States operating segment. The acquisition of spectrum in the United States and Europe operating segments and the share buy-back program at Deutsche Telekom AG also had an increasing effect. Other effects included the sale of T‑Mobile US shares by Deutsche Telekom of EUR 0.2 billion.

Free cash flow AL (before dividend payments and spectrum investment) increased by EUR 1.6 billion year-on-year to EUR 10.5 billion. The following effects impacted on this development:

Net cash from operating activities increased by EUR 1.0 billion to EUR 20.9 billion as a result of the strong development of the operating business. Lower cash outflows in connection with the integration of Sprint in the United States also had an increasing effect. By contrast, the increase in net interest payments of EUR 0.2 billion had a reducing effect.

Cash capex (before spectrum investment) decreased by EUR 0.1 billion to EUR 8.2 billion. In the Germany operating segment, cash capex totaled EUR 2.3 billion in the reporting year, a decline of EUR 0.3 billion compared with the prior-year period. This was primarily due to the intra-year allocation of investments in the fiber build-out. Cash capex in the United States operating segment increased by EUR 0.1 billion year-on-year to EUR 4.5 billion, and increased slightly in the Europe operating segment to EUR 1.0 billion. In the Systems Solutions operating segment, cash capex remained on a par with the prior-year period at EUR 0.1 billion.

The sale of spectrum licenses by T‑Mobile US to N77 generated cash proceeds of EUR 1.8 billion. Excluding this transaction, proceeds from the disposal of intangible assets (excluding goodwill and spectrum) and property, plant and equipment amounted to EUR 0.1 billion.

A decrease of EUR 0.3 billion in cash outflows – in particular in the United States operating segments – for the repayment of lease liabilities had an increasing effect on free cash flow AL.

For further information, please refer to the section “Notes to the consolidated statement of cash flows” in the interim consolidated financial statements.

Rating

Deutsche Telekom’s credit rating with Standard & Poorʼs was upgraded on May 28, 2025, standing at BBB+ with a positive outlook as of June 30, 2025. We are therefore still a solid investment-grade company with access to the international capital markets.