Group Headquarters & Group Services For information on changes in the organizational structure, please refer to the section “Group organization, strategy, and management.” Development of operations (XLS:) Download millions of € Q1 2018 Q2 2018 Q3 2018 Q3 2017 Change % Q1–Q3 2018 Q1–Q3 2017 Change % FY 2017 TOTAL REVENUE 651 767 677 741 (8.6) 2,096 2,262 (7.3) 2,935 Loss from operations (EBIT) (324) (281) (366) (307) (19.2) (971) (851) (14.1) (1,437) Depreciation, amortization and impairment losses (162) (269) (184) (159) (15.7) (615) (500) (23.0) (657) EBITDA (162) (12) (182) (148) (23.0) (356) (352) (1.1) (780) Special factors affecting EBITDA (92) (54) (68) (46) (47.8) (214) (61) n. a. (119) EBITDA (ADJUSTED FOR SPECIAL FACTORS) (70) 41 (114) (102) (11.8) (143) (291) 50.9 (661) CASH CAPEX (248) (247) (253) (231) (9.5) (748) (711) (5.2) (1,005) Total revenue Total revenue in our Group Headquarters & Group Services segment decreased in the reporting period by 7.3 percent year-on-year. This decline was mainly due to the fact that, as of January 2016, the costs of intragroup development services newly commissioned from Deutsche Telekom IT in Germany are no longer charged internally. Other reasons for the decrease were forgone revenue from DeTeMedien, which was sold effective June 2017, and lower revenue from land and buildings, essentially due to further optimization of the use of space. Higher intragroup revenue at Deutsche Telekom IT from the licensing of the Group-wide ERP system had a positive effect. EBITDA, adjusted EBITDA Adjusted EBITDA in the Group Headquarters & Group Services segment improved by EUR 148 million year-on-year in the reporting period, mainly due to higher revenue at Deutsche Telekom IT from the licensing of the Group-wide ERP system, which does not impact on earnings at Group level. The reduction in headcount brought about by ongoing restructuring of the Vivento workforce also had a positive effect. By contrast, lower revenue from land and buildings had a negative impact on adjusted EBITDA. Overall, negative net special factors of EUR 214 million affected EBITDA in the reporting period. Expenses for staff-related measures were partially offset by the positive effect of the reversal of provisions for legal risks in connection with the Toll Collect arbitration proceedings. In the prior-year period, negative net special factors totaled EUR 61 million and mainly comprised expenses for staff-related measures on the one hand and income from the sale of DeTeMedien on the other. EBIT EBIT declined by EUR 120 million year-on-year largely as a result of the same effects described under EBITDA and a EUR 115 million increase in depreciation, amortization and impairment losses. This increase was due, in particular, to higher depreciation and amortization caused by increased levels of capitalization at Deutsche Telekom IT. The latter were attributable to the fact that the costs of newly commissioned intragroup development services in Germany are no longer charged internally. This development was partially offset by lower depreciation, amortization and impairment losses from land and buildings as a result of our continued optimization of the real estate portfolio. Cash capex Cash capex increased by EUR 37 million year-on-year, primarily owing to increased investment in technology and innovation, mainly for development activities. For further details, please refer to our (PDF:) IR Backup (PDF).
