Development of selected financial data

Net revenue, service revenue ^a

• Net revenue increased by 2.7 % to EUR 84.8 billion. In organic terms, net revenue increased by 2.9 %. Service revenue increased by 3.9 % to EUR 71.7 billion; in organic terms, the increase was 4.0 %.
• The Germany segment increased revenue by 2.9 % year-on-year on the back of the strong development of service revenues.
• In the United States segment, revenue grew by 2.1 %; in organic terms, revenue was up 2.3 %, driven in part by the strong development of service revenue.
• Revenue in our Europe segment increased by 5.3 %. In organic terms, the increase was 5.5 %, on account of higher service revenues.
• Revenue in the Systems Solutions segment was up 3.5 % year-on-year, on the back of growth in the Cloud, Digital, and Road Charging areas.

billions of €

EBITDA AL (adjusted for special factors) ^a

• Adjusted EBITDA AL grew by 6.2 % to EUR 32.4 billion. In organic terms, it increased by 6.3 %.
• In the Germany segment, adjusted EBITDA AL increased by 2.7 % on the back of high-value revenue growth and enhanced cost efficiency.
• In the United States segment, adjusted EBITDA AL was up by 7.7 % due to higher service revenue and lower costs. In organic terms, adjusted EBITDA AL increased by 7.4 %. Adjusted core EBITDA AL grew by 8.6 %.
• Adjusted EBITDA AL in the Europe segment increased by 8.2 %. In organic terms, the increase was 8.4 %, due to a positive net margin.
• In the Systems Solutions segment, adjusted EBITDA AL grew by 8.8 % due to increased revenue in the Cloud and Digital areas.
• The adjusted EBITDA AL margin improved from 36.9 % to 38.2 %. The adjusted EBITDA AL margin was 41.1 % in the Germany segment, 39.2 % in the United States segment, and 36.7 % in the Europe segment.

billions of €

Profit/loss from operations (EBIT) ^a

• EBIT decreased substantially to EUR 17.8 billion, mainly as a result of the gain on deconsolidation from the sale of GD Towers recognized in the prior year.
• Special factors were down by EUR 12.5 billion on the prior-year period, and had an impact of EUR -1.5 billion on EBITDA AL. In the prior-year period, mainly gains on deconsolidations as well as disposals and additions totaling EUR 12.3 billion on a net basis were recognized, primarily from the sale of GD Towers.
• Correspondingly, EBITDA AL declined by 25.6 % to EUR 30.9 billion.
• At EUR 17.9 billion, depreciation, amortization and impairment losses were up slightly by EUR 0.1 billion year-on-year. The increase primarily related to the United States and Germany segments.

billions of €

Net profit

• Net profit decreased significantly to EUR 7.0 billion, mainly due to the gain on deconsolidation from the sale of GD Towers in the prior year.
• Loss from financial activities decreased by EUR 1.3 billion to EUR 3.1 billion. This was mainly attributable to reversals of impairment losses recognized in the reporting period of EUR 1.0 billion and EUR 0.3 billion, respectively, on the carrying amounts of the investments in GD Towers and in GlasfaserPlus.
• Tax expense increased by EUR 1.3 billion to EUR 3.6 billion.
• Profit attributable to non-controlling interests increased by EUR 0.9 billion to EUR 4.1 billion; a trend mainly attributable to the United States segment.
• Adjusted earnings per share rose from EUR 1.23 to EUR 1.43.

billions of €

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

Equity ratio

• The equity ratio increased by 0.6 percentage points against December 31, 2023 to 32.0 %, due to the decrease of EUR 1.7 billion in total assets/total liabilities and shareholders’ equity to EUR 288.6 billion and the increase of EUR 1.2 billion to EUR 92.4 billion in shareholders’ equity.
• The increase in shareholders’ equity is primarily attributable to profit (EUR 11.1 billion) and to capital increases from share-based payments (EUR 0.5 billion).
• Shareholders’ equity was reduced in particular by dividend payments to our shareholders (EUR 3.8 billion) and to other shareholders of subsidiaries (EUR 1.7 billion) – including cash dividends paid by T‑Mobile US (EUR 1.5 billion) – as well as by transactions with owners (EUR 3.2 billion), mainly in connection with T‑Mobile US’ share buy-backs. Deutsche Telekom AG’s share buy-backs (EUR 1.5 billion) and other comprehensive income (EUR 0.2 billion) also reduced shareholders’ equity.

%

Net debt ^b

• Net debt decreased by EUR 3.6 billion compared with the end of 2023 to EUR 128.7 billion.
• This decrease was mainly attributable to free cash flow (before dividend payments and spectrum investment) of EUR 18.9 billion, and to the sale of T‑Mobile US shares by Deutsche Telekom in the amount of EUR 3.6 billion.
• The main factors increasing net debt were the share buy-back program at T‑Mobile US (EUR 6.0 billion) and dividend payments – including to non-controlling interests (EUR 5.1 billion). Additions to lease liabilities and to right-of-use assets (EUR 2.8 billion), the acquisition of spectrum (EUR 2.4 billion), the share buy-back program at Deutsche Telekom AG (EUR 1.5 billion), and corporate transactions (EUR 1.1 billion) also had an increasing effect.

billions of €

Cash capex (before spectrum investment)

• Cash capex (before spectrum investment) decreased by EUR 1.3 billion to EUR 11.9 billion.
• In the United States segment, cash capex decreased by EUR 1.4 billion, mainly as a result of higher cash outflows for the accelerated build-out of the 5G network in the prior years. By contrast, cash capex in the Germany segment increased by EUR 0.2 billion.
• Cash capex (including spectrum investment) increased by EUR 0.7 billion to EUR 14.4 billion. In the reporting period, cash outflows for spectrum licenses in the amount of EUR 2.4 billion were recorded in the United States segment. In the prior-year period, payments were made for mobile spectrum licenses in the amount of EUR 0.3 billion in the United States segment, and of EUR 0.2 billion in the Europe segment.

billions of €

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

• Free cash flow AL was up by EUR 3.3 billion to EUR 15.1 billion.
• This was attributable to the strong development of the operating business and lower cash capex (before spectrum investment).
• By contrast, higher tax payments had a decreasing effect.

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 2023 combined management report (2023 Annual Report) and to our Investor Relations website.