Development of selected financial data

Net revenue, service revenue^a

• Net revenue decreased by 2.4 % to EUR 82.6 billion; on an organic basis, it remained virtually stable. High-value service revenue increased by 1.1 % to EUR 69.0 billion; in organic terms, the increase was 3.3 %.
• Our Germany segment increased revenue by 2.5 % year-on-year, and by 1.8 % on an organic basis, on the back of the strong development of service revenues.
• In the United States segment, revenue declined by 3.9 %, partly due to exchange rate effects. In organic terms, the decline of 1.7 % was due in part to the decrease in terminal equipment revenue, which was in line with expectations.
• Revenue in our Europe segment grew by 5.1 %, and by 4.5 % on an organic basis, on account of higher mobile service revenues.
• Revenue in Systems Solutions was up 2.5 % year-on-year, and by 5.5 % in organic terms, on the back of growth in the Road Charging, Digital, and Advisory portfolio areas.
• In Group Development, revenue declined significantly due to the sale of T‑Mobile Netherlands and GD Towers; on an organic basis, net revenue remained stable.

billions of €

EBITDA AL (adjusted for special factors)^a

• Adjusted EBITDA AL grew by 0.8 % to EUR 30.5 billion. In organic terms, it increased by 3.7 %.
• In our Germany segment, adjusted EBITDA AL was up 4.0 %, driven by high-value revenue growth and enhanced cost efficiency.
• In the United States, adjusted EBITDA AL increased by 3.6 %. In organic terms, the increase was largely due to a 4.9 % cut in costs. Adjusted core EBITDA AL grew by 8.5 % to EUR 19.6 billion.
• Adjusted EBITDA AL in the Europe segment grew by 3.2 %, and by 2.4 % in organic terms.
• In Systems Solutions, adjusted EBITDA AL grew by 6.5 % due to efficiency effects and increased revenue in our Road Charging portfolio area.
• In Group Development, adjusted EBITDA AL declined significantly due to the sale of T‑Mobile Netherlands and GD Towers.
• At 36.9 %, the Group’s adjusted EBITDA AL margin held steady at a high level. The adjusted EBITDA AL margin was 41.1 % in the Germany segment, 37.2 % in the United States segment, and 35.7 % in the Europe segment.

billions of €

For a reconciliation for the organic development of key figures for the prior-year comparative period, please refer to the section “Additional information.”

Profit/loss from operations (EBIT)^a

• EBIT increased substantially to EUR 28.7 billion, mainly as a result of the gain on deconsolidation from the sale of GD Towers.
• Special factors had a positive effect of EUR 11.0 billion on EBITDA AL. Deconsolidations, disposals, and acquisitions generated proceeds of EUR 12.3 billion, most of which was attributable to the sale of GD Towers. In the prior-year period, the special factors affecting EBITDA AL totaled EUR ‑1.6 billion.
• EBITDA AL thus increased by EUR 14.4 billion to EUR 41.5 billion.
• At EUR 17.8 billion, depreciation, amortization and impairment losses were EUR 3.6 billion lower than in the prior-year period, with the decrease being almost exclusively attributable to the United States and Group Development operating segments.

billions of €

For a reconciliation for the organic development of key figures for the prior-year comparative period, please refer to the section “Additional information.”

Net profit

• Our net profit increased significantly to EUR 18.8 billion due to the sale of GD Towers.
• Loss from financial activities increased by EUR 1.9 billion to EUR 4.4 billion, with other financial income/expense decreasing in particular in connection with the measurement of provisions and liabilities, as well as gains/losses from financial instruments. Finance costs increased by EUR 0.4 billion to EUR 4.3 billion.
• Tax expense increased by EUR 0.4 billion to EUR 2.2 billion.
• Profit attributable to non-controlling interests increased by EUR 2.4 billion to EUR 3.1 billion; a trend mainly attributable to the United States segment.
• Adjusted earnings per share decreased from EUR 1.43 to EUR 1.23.

billions of €

Equity ratio

• The equity ratio increased by 2.7 percentage points against December 31, 2022 to 31.9 %.
• The increase in shareholders’ equity from EUR 87.3 billion to EUR 96.6 billion is primarily attributable to profit (EUR 22.0 billion) and to other comprehensive income (EUR 1.2 billion).
• Shareholders’ equity was reduced in particular by transactions with owners (EUR 10.4 billion), which largely relate to T‑Mobile US’ 2022 share buy-back program, and the cash dividend declared by T‑Mobile US for the fourth quarter of 2023. Dividend payments to our shareholders (EUR 3.5 billion) and to other shareholders of subsidiaries (EUR 0.5 billion) also reduced shareholders’ equity.

%

Net debt^b

• Net debt decreased by EUR 5.3 billion compared with the end of 2022 to EUR 137.1 billion.
• The main factors reducing net debt were free cash flow (before dividend payments and spectrum investment) of EUR 15.4 billion and cash proceeds of EUR 10.7 billion from the sale of GD Towers.
• Net debt was increased in particular by T‑Mobile US’ 2022 share buy-back program (EUR 10.1 billion), the dividend payment – including to non-controlling interests – (EUR 3.7 billion), additions of lease liabilities and right-of-use assets (EUR 3.1 billion), and the sale-and-leaseback transaction in connection with the sale of GD Towers (EUR 3.0 billion). Exchange rate effects (EUR 0.8 billion) and the acquisition of spectrum (EUR 0.5 billion) also increased net debt.

billions of €

Cash capex (before spectrum investment)

• Cash capex (before spectrum investment) decreased by EUR 2.0 billion to EUR 13.2 billion.
• In the United States segment, cash capex decreased by EUR 2.5 billion as a result of higher cash outflows in the prior year for the accelerated build-out of the 5G network and the integration of Sprint. By contrast, cash capex in the Germany segment increased by EUR 0.5 billion due to different seasonal effects.
• Cash capex (including spectrum investment) decreased by EUR 4.5 billion to EUR 13.7 billion. Spectrum licenses were acquired in the United States operating segment for a total of EUR 0.3 billion and in the Europe segment for a total of EUR 0.2 billion in the reporting period. In the prior-year period, the United States segment had acquired spectrum licenses for a total amount of EUR 3.0 billion.

billions of €

Free cash flow AL (before dividend payments and spectrum investment)

• Free cash flow AL increased from EUR 9.4 billion to EUR 11.8 billion.
• The sound business performance in the operating segments had an increasing effect on net cash from operating activities. Lower cash outflows in connection with the integration of Sprint in the United States and lower cash capex (before spectrum investment) also had a positive impact.
• Free cash flow AL was reduced by an increase of EUR 0.7 billion in cash outflows for the repayment of lease liabilities, mainly in the United States and Germany segments, an increase of EUR 0.2 billion in net interest payments, and an increase of EUR 0.2 billion in tax payments.

billions of €

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

For further information on the development of business in the operating segments, please refer to the section “Development of business in the operating segments” in the interim Group management report and to the IR back-up on our Investor Relations website.

For further information on our performance indicators and alternative performance measures, please refer to the section “Management of the Group” in the 2022 combined management report (2022 Annual Report) and our Investor Relations website.