Development of selected financial data

Net revenue, service revenue

• Net revenue increased by 3.7 % to EUR 58.4 billion. In organic terms, net revenue increased by 3.9 %. Service revenue was up 3.7 % to EUR 49.3 billion. In organic terms, the increase was likewise 3.7 %.
• Revenue in the Germany segment decreased by 1.3 % on account of lower terminal equipment sales. Service revenue grew by 1.2 %.
• Revenue in the United States segment increased by 5.8 %. In organic terms, revenue increased by 6.0 % due to the positive development of service and terminal equipment revenues.
• Revenue in our Europe segment increased by 2.3 %. In organic terms, the increase was 2.9 %, on account of higher service revenue.
• Revenue in the Systems Solutions segment was up 2.5 %, on the back of growth in the Digital and Road Charging areas.

billions of €

EBITDA AL (adjusted for special factors)

• Adjusted EBITDA AL grew by 4.7 % to EUR 22.3 billion. In organic terms, it increased by 5.2 %.
• Adjusted EBITDA AL in the Germany segment increased by 2.1 %, driven by service revenue growth and enhanced cost efficiency.
• Adjusted EBITDA AL in the United States segment increased by 5.3 %. In organic terms, the increase was 6.0 %, on account of higher service and terminal equipment revenues.
• Adjusted EBITDA AL in the Europe segment increased by 6.2 %. In organic terms, the increase was 6.7 %, due to a positive net margin.
• In the Systems Solutions segment, adjusted EBITDA AL grew by 7.5 % due to revenue and margin increases in the Cloud area.
• The adjusted EBITDA AL margin improved by 0.4 percentage points to 38.2 %. The adjusted EBITDA AL margin was 41.9 % in the Germany segment, 38.9 % in the United States segment, and 37.4 % in the Europe segment.

billions of €

Profit/loss from operations (EBIT)

• EBIT increased substantially by 14.9 % to EUR 13.4 billion.
• Special factors were down by EUR 0.5 billion, and had an impact of EUR ‑0.3 billion on EBITDA AL. Expenses incurred in connection with staff restructuring measures decreased by EUR 0.2 billion. Special factors in the prior-year period had also included costs associated with the integration of Sprint.
• EBITDA AL also increased substantially, by 7.3 % to EUR 22.0 billion.
• At EUR 11.8 billion, depreciation, amortization and impairment losses were EUR 0.3 billion less than in the prior-year period, mainly due to lower depreciation and amortization in the United States segment.

billions of €

Net profit

• Net profit increased substantially by 34.1 % to EUR 5.5 billion.
• Loss from financial activities decreased from EUR ‑2.7 billion to EUR ‑2.2 billion, mainly as a result of the reversals of impairment losses on our investments in GD Towers in the amount of EUR 0.5 billion and in GlasfaserPlus in the amount of EUR 0.2 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 segment.
• Adjusted earnings per share rose from EUR 0.95 to EUR 1.01.

billions of €

Equity ratio

• The equity ratio decreased by 0.4 percentage points to 31.9 %. Shareholders’ equity decreased by EUR 8.9 billion to EUR 89.7 billion, while total assets/total liabilities decreased by EUR 23.4 billion to EUR 281.5 billion.
• Shareholders’ equity was reduced in particular by other comprehensive income (EUR 6.6 billion), which was impacted significantly by currency translation effects. Further factors reducing shareholder’s equity were dividend payments to our shareholders (EUR 4.4 billion) and to other shareholders of subsidiaries (EUR 1.2 billion), as well as transactions with owners (EUR 4.6 billion), mainly in connection with T‑Mobile US’ share buy-back program. Deutsche Telekom AG’s share buy-backs (EUR 0.9 billion) also reduced shareholders’ equity.
• Profit in particular had an increasing effect on shareholders’ equity (EUR 8.4 billion).

%

Net debt ^a

• Net debt decreased by EUR 10.8 billion to EUR 126.5 billion.
• The main factors reducing net debt were free cash flow (before dividend payments and spectrum investment) of EUR 12.9 billion and exchange rate effects (EUR 11.3 billion).
• Net debt increased in particular due to dividend payments – including to non-controlling interests (EUR 5.4 billion) – and the share buy-back program at T‑Mobile US (EUR 4.6 billion). Additions to lease liabilities and to right-of-use assets (EUR 1.9 billion) and corporate transactions (EUR 1.6 billion) also had an increasing effect.

billions of €

Cash capex (before spectrum investment)

• Cash capex (before spectrum investment) decreased by EUR 0.1 billion to EUR 8.2 billion.
• Cash capex in the Germany segment decreased by EUR 0.3 billion, mainly on account of the intra-year allocation of investments in the fiber build-out. Cash capex increased slightly in both the United States and Europe segments.
• Cash capex (including spectrum investment) increased by EUR 0.6 billion to EUR 9.2 billion. In the reporting period, payments totaling EUR 1.0 billion were made for mobile spectrum licenses, mainly in the United States and Europe operating segments. In the prior-year period, EUR 0.2 billion were paid for mobile spectrum licenses, mainly in the United States.

billions of €

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

• Free cash flow AL was up by EUR 1.6 billion to EUR 10.5 billion.
• Free cash flow AL was positively affected by the strong development of the operating business, lower cash capex (before spectrum investment), lower cash outflows in connection with the integration of Sprint in the United States, and a decrease in cash outflows for the repayment of lease liabilities.
• By contrast, higher net interest payments had a decreasing effect.

billions of €

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

For further information, please refer to the sections “Development of business in the Group” and “Development of business in the operating segments” in the interim Group management report, and to the IR backup 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 2024 combined management report (2024 Annual Report) and to our Investor Relations website.