Group Headquarters & Group Services
Development of operations
millions of € |
|
|
|
|
|
|
|
|
|
|---|---|---|---|---|---|---|---|---|---|
|
Q1 2021 |
Q2 2021 |
Q3 2021 |
Q3 2020 |
Change % |
Q1-Q3 2021 |
Q1-Q3 2020 |
Change % |
FY 2020 |
Total revenue |
625 |
671 |
617 |
625 |
(1.3) |
1,913 |
1,910 |
0.2 |
2,556 |
Profit (loss) from operations (EBIT) |
(357) |
(378) |
(392) |
(430) |
8.8 |
(1,127) |
(1,140) |
1.1 |
(1,655) |
Depreciation, amortization and impairment losses |
(330) |
(382) |
(354) |
(358) |
1.1 |
(1,066) |
(978) |
(9.0) |
(1,304) |
EBITDA |
(27) |
4 |
(38) |
(73) |
47.9 |
(62) |
(162) |
61.7 |
(350) |
Special factors affecting EBITDA |
(26) |
(55) |
(32) |
(75) |
57.3 |
(113) |
(214) |
47.2 |
(277) |
EBITDA (adjusted for special factors) |
(2) |
59 |
(6) |
2 |
n.a. |
51 |
52 |
(1.9) |
(73) |
EBITDA AL |
(110) |
(75) |
(119) |
(164) |
27.4 |
(304) |
(434) |
30.0 |
(707) |
Special factors affecting EBITDA AL |
(26) |
(55) |
(32) |
(75) |
57.3 |
(113) |
(214) |
47.2 |
(277) |
EBITDA AL (adjusted for special factors) |
(84) |
(21) |
(86) |
(90) |
4.4 |
(191) |
(220) |
13.2 |
(429) |
Cash capex |
(250) |
(222) |
(230) |
(223) |
(3.1) |
(702) |
(693) |
(1.3) |
(990) |
Total revenue
Total revenue in our Group Headquarters & Group Services segment remained at the prior-year level in the reporting period. Higher intragroup revenue at Deutsche Telekom IT from the licensing of the ERP system had a positive effect. By contrast, revenue from land and buildings declined due to the ongoing optimization of space.
Adjusted EBITDA AL, EBITDA AL
Adjusted EBITDA AL in the Group Headquarters & Group Services segment improved by EUR 29 million year-on-year in the reporting period to EUR ‑191 million. This trend was mainly the result of increased revenues at Deutsche Telekom IT from the licensing of the ERP system and from lower operating expenses at our Group Services. By contrast, lower income from real estate sales and lower revenue from land and buildings had a negative impact on adjusted EBITDA AL.
Overall, EBITDA AL was negatively impacted in the reporting period by special factors amounting to EUR 113 million, especially for staff-related measures. This contrasts with special factors of EUR 214 million in the prior-year period, also in particular for staff-related measures.
EBIT
The year-on-year improvement in EBIT of EUR 13 million to EUR ‑1,127 million was largely a result of two contrasting effects: the positive development of EBITDA AL on the one hand, and the increase in depreciation, amortization and impairment losses on the other. The latter is mainly attributable to the increased volume of output in connection with the introduction of agile processes and shorter project runtimes at Deutsche Telekom IT. In addition, depreciation, amortization and impairment losses increased due to higher capitalization in connection with the licensing of the ERP system. By contrast, depreciation, amortization and impairment losses from land and buildings decreased as a result of our continued optimization of the real estate portfolio. An impairment loss was also recognized in the first quarter of 2021 in the amount of EUR 14 million on software used by the Systems Solutions operating segment. This impairment loss was a consequence of the ad hoc impairment testing carried out in the Systems Solutions cash-generating unit in the third quarter of the prior year. At that time, EUR 44 million related to the Group Headquarters & Group Services segment in this connection.
Cash capex
Cash capex increased by EUR 9 million year-on-year, primarily owing to higher investment in technology and innovation.