Group Development

The sale of T‑Mobile Netherlands was consummated on March 31, 2022. As such, T‑Mobile Netherlands has not been part of the Group since April 1, 2022. The contributions for the first quarter of 2022 are still included in operational development due to the cumulative view.

For further information on the closing of the transaction, please refer to the sections “Group organization, strategy, and management” and “Changes in the composition of the Group and other transactions” in the interim consolidated financial statements.

On July 13, 2022, Deutsche Telekom reached an agreement with DigitalBridge and Brookfield on the sale of a 51.0 % stake in GD Towers, comprising its tower assets in Germany and Austria, currently assigned to the Group Development operating segment. This transaction has not yet been consummated. The GD Towers entity has been recognized in the interim consolidated financial statements as a discontinued operation since the third quarter of 2022. According to the management approach, however, we continue to include the contributions by GD Towers in the management-relevant financial performance indicators explained here.

For further information on the agreement with DigitalBridge and Brookfield on GD Towers, and the presentation of GD Towers according to the management approach, please refer to the section “Group organization, strategy, and management.”

Customer development

Development of operations

Total revenue, service revenue

Total revenue in our Group Development operating segment decreased in the first nine months of 2022 by 40.0 % year-on-year to EUR 1.4 billion. In organic terms, revenue changed in the prior-year period due to the sale of T‑Mobile Netherlands as of March 31, 2022 and increased 6.3 % year-on-year. This revenue increase resulted from the operational and structural growth of our GD Towers entity, which includes the German and Austrian cell tower business. The positive trend is down to an increase in the number of sites we have in Germany and was further strengthened by the Austrian cell tower business. Service revenue also decreased substantially due to the sale of T‑Mobile Netherlands. The GD Towers business does not generate any service revenues.

Adjusted EBITDA AL, EBITDA AL

Adjusted EBITDA AL decreased by 24.1 % to EUR 740 million. Here too, the decline was attributable to the sale of T‑Mobile Netherlands. In organic terms, adjusted EBITDA AL grew by 21.1 %. The GD Towers business posted consistent growth on the back of a rising number of cell tower sites and was further strengthened by the Austrian cell tower business. An operational increase in adjusted EBITDA AL was also achieved through revenue growth and cost transformation. Adjusted EBITDA AL was positively impacted by the suspension of the amortization of right-of-use assets due to the fact that the GD Towers entity has been held for sale since July 13, 2022. EBITDA AL was positively influenced by net special factors of EUR 1.0 billion, which mainly related to the gains on deconsolidation due to the sale of T‑Mobile Netherlands and the deconsolidation of DIV II. EBITDA AL increased by EUR 612 million compared with the prior-year period to EUR 1.7 billion.

Profit/loss from operations (EBIT)

EBIT increased by EUR 0.9 billion year-on-year to EUR 1.7 billion, mainly as a result of the development described under EBITDA AL. Depreciation, amortization and impairment losses were down year-on-year, primarily in connection with the fact that T‑Mobile Netherlands had been held for sale until it was sold, and, accordingly, the related depreciation and amortization had been suspended, and its subsequent sale. In addition, depreciation and amortization were suspended for the GD Towers entity, which has been held for sale since July 13, 2022.

Cash capex

Cash capex stood at EUR 230 million and thus well below the prior-year level. The reduction is mainly due to the sale of T‑Mobile Netherlands and lower build-out investments made by GD Towers compared with the prior-year period.