Results of operations of the Group

In order to increase the informative value of the prior-year comparatives based on changes to the Company’s structure or exchange rate effects, we also describe the change in selected figures in organic terms, by adjusting the figures for the prior-year period for changes in the composition of the Group, exchange rate effects, and other effects. Changes in the composition of the Group mainly related to the acquisitions in the United States operating segment of Kaʼena as of May 1, 2024, Vistar Media as of February 3, 2025, and Blis as of March 3, 2025. Negative exchange rate effects were primarily attributable to the translation of U.S. dollars to euros.

Revenue, service revenue

In the first half of 2025, we generated net revenue of EUR 58.4 billion, which was up EUR 2.1 billion or 3.7 % year-on-year. In organic terms, revenue increased by 3.9 % against the prior-year level, with exchange rate effects having a net decreasing effect of EUR 0.4 billion and effects of changes in the composition of the Group an increasing effect of EUR 0.3 billion. Service revenue in the Group increased by EUR 1.8 billion or 3.7 % year-on-year to EUR 49.3 billion. In organic terms, service revenue also increased by 3.7 %.

In our domestic market of Germany, revenue declined by 1.3 % year-on-year, mainly due to lower mobile terminal equipment revenues. By contrast, service revenues increased year-on-year. In our United States operating segment, revenue was up 5.8 % against the prior-year level. In organic terms, it increased by 6.0 %, due to both higher service revenues and higher terminal equipment revenues. In our Europe operating segment, revenue increased by 2.3 % year-on-year. In organic terms, it increased by 2.9 %, primarily due to the increase in service revenues in the mobile and fixed-network business. Revenue in our Systems Solutions operating segment was up 2.5 % year-on-year, mainly due to growth in the Digital and Road Charging areas.

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

Contribution of the segments to net revenue ^{a, b}

%

Breakdown of revenue by region

%

^a For further information on net revenue, please refer to the section “Segment reporting” in the interim consolidated financial statements.  
^b Following the sale of the GD Towers business entity in the 2023 financial year, the Group Development operating segment no longer provides a significant contribution to net revenue.

Our United States operating segment made by far the largest contribution to net revenue, with 65.7 % (H1 2024: 64.4 %). The proportion of net revenue generated internationally increased to 77.0 % (H1 2024: 75.9 %).

Adjusted EBITDA AL, EBITDA AL

Adjusted EBITDA AL increased by EUR 1.0 billion or 4.7 % year-on-year to EUR 22.3 billion in the first half of 2025. In organic terms, adjusted EBITDA AL increased by 5.2 %, with exchange rate effects having a net decreasing effect of EUR 0.2 billion and changes in the composition of the Group having a positive effect of EUR 0.1 billion.

Our Germany operating segment contributed to the increase thanks to high-value service revenue growth and improved cost efficiency with 2.1 % higher adjusted EBITDA AL. Adjusted EBITDA AL in our United States operating segment increased by 5.3 %, or 6.0 % in organic terms. This rise is primarily attributable to higher service and terminal equipment revenues, offset by increases in some costs. In our Europe operating segment, adjusted EBITDA AL increased by 6.2 % on the back of the sound revenue trend, or 6.7 % in organic terms, with a positive net margin sufficient to more than offset the slightly higher indirect costs. In our Systems Solutions operating segment, adjusted EBITDA AL increased by 7.5 %, mainly due to revenue growth in the Digital and Road Charging areas and to increased margins in the Cloud area.

Our EBITDA AL increased significantly by EUR 1.5 billion year-on-year to EUR 22.0 billion. Expenses from special factors affecting EBITDA AL decreased by EUR 0.5 billion to EUR ‑0.3 billion, with expenses incurred in connection with staff restructuring measures decreasing by EUR 0.2 billion year-on-year. In the prior-year period, net expenses of EUR 0.2 billion had been recorded as special factors under effects of deconsolidations, disposals and acquisitions, in connection with integration costs incurred as a result of the business combination of T‑Mobile US and Sprint. In the reporting period, the expenses totaled EUR 0.1 billion and mainly related to integration costs arising from the acquisitions of Kaʼena, Blis, and Vistar Media, as well as the agreed acquisition of UScellular. Other special factors affecting EBITDA AL increased by EUR 0.2 billion compared with the prior-year period. In addition to the income from the sale of spectrum licenses to N77, this includes legal-related insurance recoveries recognized in relation to the cyberattack on T‑Mobile US in August 2021.

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

Profit/loss from operations (EBIT)

Group EBIT increased significantly to EUR 13.4 billion, up EUR 1.7 billion against the level of the prior-year period. This increase is due in particular to the effects described under adjusted EBITDA AL and EBITDA AL.

At EUR 11.8 billion, depreciation, amortization and impairment losses on intangible assets, property, plant and equipment, and right-of-use assets were lower in the first half of 2025 than in the prior-year period, by EUR 0.3 billion, due in particular to lower depreciation and amortization. In the United States operating segment, depreciation and amortization decreased due to the accelerated depreciation of certain technology assets in the prior year. By contrast, depreciation and amortization increased slightly in the Germany operating segment due to rising volumes in the fiber-optic build-out.

Profit before income taxes

Profit before income taxes increased by EUR 2.2 billion to EUR 11.2 billion. Loss from financial activities included in this decreased year-on-year from EUR 2.7 billion to EUR 2.2 billion, mainly due to the EUR 0.8 billion increase in the share of profit of associates and joint ventures included in the consolidated financial statements using the equity method. This was primarily attributable to reversals of impairment losses 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 in 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. Other financial income/expense declined by EUR 0.2 billion and finance costs by EUR 0.1 billion.

Net profit, adjusted net profit

Net profit increased year-on-year by EUR 1.4 billion to EUR 5.5 billion. Tax expense increased by EUR 0.5 billion to EUR 2.8 billion. Profit attributable to non-controlling interests increased by EUR 0.4 billion to EUR 3.0 billion. This increase was primarily attributable to the United States operating segment. Adjusted net profit amounted to EUR 4.9 billion compared with EUR 4.7 billion in the prior-year period.

For further information on tax expense, please refer to the section “Income taxes” in the interim consolidated financial statements.

Earnings per share, adjusted earnings per share

Earnings per share is calculated as net profit divided by the weighted average number of ordinary shares outstanding, which totaled 4,887 million as of June 30, 2025. This resulted in earnings per share of EUR 1.12, up from EUR 0.82 in the prior-year period. Adjusted earnings per share amounted to EUR 1.01 compared with EUR 0.95 in the prior-year period.

Employees

The Group’s headcount remained stable against the end of 2024. The total number of full-time equivalent employees in our United States operating segment increased by 3.9 % compared to December 31, 2024, which includes the impact of the acquisitions of Vistar Media and Blis in the first quarter of 2025. In our Germany operating segment, the number of employees declined by 1.1 % against the end of the prior year. Employees continued to take up socially responsible instruments as part of staff restructuring activities, such as phased retirement. In our Europe operating segment, the headcount was down by 1.6 % compared with the end of the prior year, in particular in Greece and Hungary. The headcount in our Systems Solutions operating segment was down 1.4 % against year-end 2024, mainly due to a workforce reduction in traditional infrastructure business. The headcount in the Group Headquarters & Group Services segment was down 1.2 % compared with the end of the prior year, mainly due to the continued staff restructuring measures.

Reconciliations of financial performance indicators from the IFRS consolidated financial statements

A reconciliation of the definition of EBITDA to the “after leases” indicator (EBITDA AL) can be found in the following table:

The following table presents the reconciliation of net profit to net profit adjusted for special factors:

The following table presents a reconciliation of EBITDA AL, EBIT, and net profit to the respective figures adjusted for special factors: