Notes to the consolidated statement of cash flows
Net cash from operating activities
Net cash from operating activities increased by EUR 1.3 billion year-on-year to EUR 28.6 billion. This positive trend is attributable to sound business development. Lower cash outflows in connection with the integration of Sprint in the United States also had a positive effect. The increase in net interest payments of EUR 0.2 billion and the increase in tax payments of EUR 0.2 billion had a reducing effect.
Net cash used in/from investing activities
millions of € |
|
|
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Q1-Q3 2023 |
Q1-Q3 2022 |
||||||||||
Cash outflows for investments in intangible assets |
(3,711) |
(6,204) |
||||||||||
Cash outflows for investments in property, plant and equipment |
(9,990) |
(12,004) |
||||||||||
Proceeds from the disposal of property, plant and equipment, and intangible assets |
82 |
243 |
||||||||||
Payments for publicly funded investments in the broadband build-out |
(237) |
(267) |
||||||||||
Proceeds from public funds for investments in the broadband build-out |
244 |
249 |
||||||||||
Cash outflows for short-term investments in government bonds, net |
(100) |
0 |
||||||||||
Net cash flows for collateral deposited and hedging transactions |
68 |
(1,224) |
||||||||||
Other changes in cash and cash equivalents in connection with the acquisition of control of subsidiaries and associates |
(4) |
(52) |
||||||||||
Changes in cash and cash equivalents in connection with the sale of the 51 % stake in the GD tower companiesa |
7,598 |
0 |
||||||||||
Changes in cash and cash equivalents in connection with the sale of the 75 % stake in T‑Mobile Netherlandsb |
0 |
3,642 |
||||||||||
Changes in cash and cash equivalents in connection with the sale of the 50 % stake in GlasfaserPlusc |
0 |
432 |
||||||||||
Changes in cash and cash equivalents in connection with the loss of control over DIV IId |
0 |
108 |
||||||||||
Changes in cash and cash equivalents in connection with the sale of T‑Mobile US’ fiber-optic-based wireline businesse |
13 |
0 |
||||||||||
Other changes in cash and cash equivalents in connection with the loss of control of subsidiaries and associates |
15 |
7 |
||||||||||
Other |
(76) |
(441) |
||||||||||
Net cash (used in) from investing activities |
(6,100) |
(15,511) |
||||||||||
Of which: from discontinued operation |
(17) |
(168) |
||||||||||
|
||||||||||||
At EUR 13.7 billion, cash outflows for investments in intangible assets and property, plant and equipment were EUR 4.5 billion lower than in the prior year. In the United States operating segment, mobile spectrum licenses were acquired for a total of EUR 0.3 billion and in the Europe operating segment, mobile spectrum licenses were acquired for a total of EUR 0.2 billion in the reporting period. In the prior year, this item had included cash outflows for the acquisition of mobile spectrum licenses of EUR 3.0 billion in the United States operating segment. Excluding investments in mobile spectrum licenses, cash outflows for investments in intangible assets and property, plant and equipment were down EUR 2.0 billion year-on-year. Cash outflows in the United States operating segment decreased by EUR 2.5 billion, in particular due to higher cash outflows for investments in the prior year in connection with the accelerated build-out of the 5G network and the integration of Sprint. By contrast, cash outflows increased by EUR 0.5 billion in the Germany operating segment, in particular for the fiber-optic build-out, due to different seasonal effects, and by EUR 0.1 billion in the Europe operating segment.
Net cash used in/from financing activities
millions of € |
|
|
|---|---|---|
|
Q1-Q3 2023 |
Q1-Q3 2022 |
Issuance of bonds |
7,880 |
3,020 |
Repayment of bonds |
(9,224) |
(2,997) |
Commercial paper, net |
(2,280) |
0 |
Loans taken out with the EIB |
0 |
150 |
Repayment of EIB loans |
(298) |
(523) |
Overnight borrowings from banks, net |
(200) |
509 |
Repayment of liabilities with the right of creditors to priority repayment in the event of default |
(537) |
(376) |
Repayment of liabilities from 5G spectrum acquired in Germany |
(195) |
(195) |
Repayment of financial liabilities for media broadcasting rights |
(260) |
(279) |
Principal portion of repayment of lease liabilities |
(4,442) |
(3,715) |
Changes in cash and cash equivalents in connection with the sale and leaseback of the passive network infrastructure of the GD tower companies |
3,069 |
0 |
Net cash flows for hedging transactions |
23 |
122 |
Cash flows from continuing involvement factoring, net |
4 |
17 |
Dividend payments (including to other shareholders of subsidiaries) |
(3,701) |
(3,385) |
Cash inflows from transactions with non-controlling entities |
|
|
T‑Mobile US stock options |
8 |
5 |
Cellnex Netherlands capital contributions |
0 |
17 |
Other cash inflows |
15 |
6 |
|
22 |
27 |
Cash outflows from transactions with non-controlling entities |
|
|
Increase of the stake in T‑Mobile US |
0 |
(2,210) |
T‑Mobile US share buy-back/share-based payment |
(10,313) |
(764) |
OTE share buy-back |
(129) |
(215) |
Other payments |
(130) |
(97) |
|
(10,572) |
(3,287) |
Other |
(187) |
(592) |
Net cash (used in) from financing activities |
(20,899) |
(11,505) |
Of which: from discontinued operation |
(74) |
(177) |
Non-cash transactions
In the reporting period, Deutsche Telekom leased assets totaling EUR 5.1 billion, mainly network equipment, cell sites, and land and buildings. These assets are recognized in the statement of financial position under right-of-use assets and the related liabilities under lease liabilities. Future repayments of the liabilities will be recognized in net cash used in/from financing activities. In the prior-year period, EUR 6.6 billion had related to the modification of the arrangements with Crown Castle, resulting in an increase in the same amount in the carrying amount of the right-of-use assets and the lease liabilities. Excluding this effect, asset leases were up EUR 1.3 billion against the prior-year period, mainly due to the leaseback of passive network infrastructure in Germany and Austria under the sale-and-leaseback agreement in connection with the sale of the GD tower companies. In the United States operating segment, asset leases were down by EUR 0.2 billion year-on-year, mainly due to synergies from the decommissioning of Sprint’s old mobile network and the associated lower lease liabilities for network technology.
For further information on the sale of the GD tower companies, please refer to the section “Changes in the composition of the Group and other transactions.”
Consideration for the acquisition of broadcasting rights is paid by Deutsche Telekom in accordance with the terms of the contract on the date of its conclusion or spread over the term of the contract. Financial liabilities of EUR 0.2 billion were recognized in the reporting period for future consideration for acquired broadcasting rights (prior-year period: EUR 0.3 billion). The payment of the consideration will be recognized in net cash used in/from financing activities.
In the United States operating segment, EUR 0.1 billion was recognized for mobile terminal equipment under property, plant and equipment in the reporting period (prior-year period: EUR 0.3 billion). This relates to the terminal equipment lease model at T‑Mobile US, under which customers do not purchase the devices but lease them. The cash outflows are presented under net cash from operating activities. The decline was primarily due to the strategic withdrawal from the terminal equipment lease model.