Selected notes to the consolidated income statement

Net revenue

Net revenue breaks down into the following revenue categories:

The service revenues essentially comprise predictable and/or recurring revenues from Deutsche Telekom’s core activities. These relate to revenues that are generated from services (i.e., revenues from fixed and mobile network voice services as well as data services) plus roaming revenues, monthly basic charges and visitor revenues, as well as revenues from the ICT business. Service revenue also includes revenues earned in connection with premium services for customers, such as reinsurance for device insurance policies and extended warranties.

Change to the definition of service revenue. Since January 1, 2026, certain wholesale voice transit revenues have no longer been included in service revenues due to their unpredictable or non-recurring nature. Instead, they are recognized under non-service revenues. Prior-year comparatives in both of the affected segments, Germany and Europe, were adjusted retrospectively. In the first half of 2025, service revenues declined by EUR 128 million for the Germany operating segment and by EUR 176 million for the Europe operating segment, with total service revenues – after segment consolidation – declining by EUR 274 million. Accordingly, non-service revenues increased by these amounts.

In the reporting period, revenue from insurance contracts in the scope of IFRS 17 of EUR 2.3 billion (H1 2025: EUR 2.2 billion) and insurance service expenses of EUR 1.5 billion (H1 2025: EUR 1.5 billion) were recognized in the Group.

Non-service revenues mainly comprise one-time and variable revenues, e.g., revenue from the sale or rental of fixed-network or mobile devices, from certain wholesale voice transit revenues, from value-added services, from contracted services, revenue with virtual network operators, one-time revenue from the build-out of technical infrastructure, and revenue from vehicle and property leasing.

Net revenue includes revenue from the use of assets by others in the scope of IFRS 16 in the amount of EUR 0.3 billion (H1 2025: EUR 0.4 billion). Of the revenue from the use of assets by others reported in net revenue, EUR 0.3 billion (H1 2025: EUR 0.3 billion) relates to service revenues and EUR 0.0 billion (H1 2025: EUR 0.0 billion) to non-service revenues.

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

Other operating income

In the prior year, EUR 0.1 billion of the income from the disposal of non-current assets resulted from the sale, consummated on April 30, 2025, of 3.45 GHz spectrum licenses to N77. Income from insurance compensation in the first half of 2025 mainly related to refunds from insurance companies for expenses incurred in connection with the cyberattack on T‑Mobile US in August 2021.

Other operating expenses

Miscellaneous other operating expenses include expenses of EUR 0.4 billion (H1 2025: EUR 0.2 billion) for data storage in data centers, in cloud applications, or other IT services, and of EUR 0.2 billion (H1 2025: EUR 0.2 billion) for regulatory duties in the United States operating segment.

Depreciation, amortization and impairment losses

At EUR 12.4 billion, depreciation, amortization and impairment losses on intangible assets, property, plant and equipment, and right-of-use assets were EUR 0.6 billion higher in the first half of 2026 than in the prior-year period, mainly due to higher depreciation of property, plant and equipment and right-of-use assets in the United States operating segment. This resulted from non-current assets assumed in connection with the UScellular Acquisition and the correspondingly higher depreciation base as well as the continued build-out of the 5G network. Depreciation and amortization increased by EUR 0.6 billion in the United States operating segment due to accelerated depreciation of certain network and technology assets. This accelerated depreciation resulted from integration and restructuring activities and mainly related to assets assumed in connection with the UScellular Acquisition. The increase was partially offset by exchange rate effects. No significant impairment losses were recorded either in the reporting period or in the prior-year period.

Profit/loss from financial activities

Loss from financial activities increased year-on-year by EUR 1.0 billion to EUR 3.2 billion, mainly due to the factors described below.

The share of profit of associates and joint ventures accounted for using the equity method decreased, compared with the prior-year period, by EUR 1.0 billion to EUR ‑0.2 billion. This was primarily attributable to reversals of impairment losses recognized in the prior-year period of EUR 0.5 billion and EUR 0.2 billion, respectively, on the carrying amounts of the investments in the GD tower companies 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. Furthermore, the share of profit of associates and joint ventures accounted for using the equity method was reduced by proportionate losses from T‑Mobile US’ investments in Metronet and Lumos in the reporting period. Finance costs and other financial income/expense remained more or less stable at EUR ‑3.0 billion and EUR 0.0 billion, respectively.

For further information, please refer to the section “Disclosures on financial instruments.”

Income taxes

A tax expense of EUR 2.5 billion was recorded in the first half of 2026. The tax amount reflects the share of the different countries in profit before income taxes and their respective national tax rates.