Selected notes to the consolidated income statement

Net revenue

Net revenue breaks down into the following revenue categories:

The service revenues essentially comprise predictable and/or recurring revenues from Deutsche Telekom’s core activities. These relate to revenues that are generated from services (i.e., revenues from fixed and mobile network voice services, incoming and outgoing calls, as well as data services) plus roaming revenues, monthly basic charges and visitor revenues, as well as revenues from the ICT business. Service revenue also includes revenues earned in connection with premium services for customers, such as reinsurance for device insurance policies and extended warranties.

In the reporting period, revenue from insurance contracts in the scope of IFRS 17 of EUR 3.3 billion (Q1‑Q3 2024: EUR 3.4 billion) and insurance service expenses of EUR 2.2 billion (Q1‑Q3 2024: EUR 2.3 billion) were recognized in the Group.

Non-service revenues mainly comprise one-time and variable revenues, e.g., revenue from the sale or rental of fixed-network or mobile devices, from value-added services, from application and contract services, revenue with virtual network operators, one-time revenue from the build-out of technical infrastructure, and revenue from vehicle and property leasing.

Net revenue includes revenue from the use of entity assets by others in the scope of IFRS 16 in the amount of EUR 0.5 billion (Q1-Q3 2024: EUR 0.7 billion). Of the revenue from the use of entity assets by others reported in net revenue, EUR 0.5 billion (Q1-Q3 2024: EUR 0.5 billion) relates to service revenues and EUR 0.1 billion (Q1-Q3 2024: EUR 0.1 billion) to non-service revenues.

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

Other operating income

EUR 0.1 billion of the income from the disposal of non-current assets resulted from the sale, consummated on April 30, 2025, of spectrum licenses to N77. Income from insurance compensation in the first three quarters of 2025 mainly related to legal-related insurance recoveries incurred in connection with the cyberattack on T‑Mobile US in August 2021.

Other operating expenses

The losses from asset disposals include EUR 0.2 billion for the write-off of not-in-service capitalized software development costs related to a billing system in the United States operating segment. Miscellaneous other operating expenses include expenses of EUR 0.6 billion (Q1-Q3 2024: EUR 0.5 billion) for data storage in data centers, in cloud applications, or other IT services, and of EUR 0.3 billion (Q1-Q3 2024: EUR 0.3 billion) for regulatory duties in the United States operating segment.

Depreciation, amortization and impairment losses

At EUR 17.7 billion, depreciation, amortization and impairment losses on intangible assets, property, plant and equipment, and right-of-use assets were EUR 0.2 billion lower in the first three quarters of 2025 than in the prior-year period, due in particular to lower depreciation and amortization. In the United States operating segment, depreciation and amortization decreased due to the accelerated depreciation of certain technology assets in the prior year. This was contrasted by higher depreciation and amortization on non-current assets assumed in connection with the acquisition of UScellular. In the Germany operating segment, depreciation and amortization increased slightly due to rising volumes in the fiber-optic build-out.

Impairment losses amounted to EUR 59 million in the reporting period, compared with EUR 24 million in the prior-year period. Impairment losses totaling EUR 50 million were recognized in the Europe operating segment in the first three quarters of 2025 following ad hoc impairment tests at the Romania cash-generating unit. Overall, EUR 27 million of the impairment losses related to right-of-use assets, EUR 20 million to property, plant and equipment, and EUR 3 million to intangible assets.

In the first half of 2025, impairment losses of EUR 40 million were recognized in the Europe operating segment following an ad hoc impairment test at the Romania cash-generating unit. The subsidiary in Romania operated in a structurally challenging and highly competitive market. The fair value less costs of disposal was calculated at EUR 17 million, which is EUR 40 million lower than the carrying amount of the cash-generating unit. The fair value was derived on the basis of purchase offers.

As of September 30, 2025, the assets and liabilities of the Romania cash-generating unit were reclassified to assets and disposal groups held for sale and liabilities directly associated with non-current assets and disposal groups held for sale, as per the agreement dated September 19, 2025 concerning their sale. The impairment test conducted in this connection resulted in the recognition of further impairment losses of EUR 10 million. The fair value less costs of disposal was calculated at EUR ‑3 million, which is EUR 10 million lower than the carrying amount of the cash-generating unit.

For further information on the sale of Telekom Romania Mobile Communications, please refer to the section “Changes in the composition of the Group and other transactions.”

Profit/loss from financial activities

Loss from financial activities increased year-on-year from EUR 3.1 billion to EUR 3.6 billion, mainly due to the factors described below.

The share of profit of associates and joint ventures included in the consolidated financial statements accounted for using the equity method decreased by EUR 0.5 billion compared with the prior-year period to EUR 0.8 billion. This was primarily attributable to higher reversals of impairment losses recognized in the prior-year period of EUR 1.0 billion and EUR 0.3 billion, respectively, on the carrying amounts of the investments in the GD tower companies and in GlasfaserPlus. In the reporting period, further reversals of impairment losses of EUR 0.5 billion and EUR 0.2 billion, respectively, were recognized on the carrying amounts of the investments in the GD tower companies and in GlasfaserPlus. These reversals of impairment losses were due to declines in industry-specific financing costs and the resulting lower discount rates, while retaining the existing business plans. Level 3 input parameters were used to determine the pro rata recoverable amounts – as fair value less costs of disposal – of EUR 7.5 billion for the GD tower companies and of EUR 1.1 billion for GlasfaserPlus (after deduction of net debt). Discount rates of 5.79 % for the GD tower companies and 5.02 % for GlasfaserPlus were used.

Finance costs declined by EUR 0.1 billion, while other financial income/expense increased by EUR 0.1 billion.

For further information, please refer to the section “Disclosures on financial instruments.”

Income taxes

In the first three quarters of 2025, a tax expense of EUR 3.7 billion was recorded. The tax amount essentially reflects the shares of the different countries in profit before income taxes and their respective national tax rates. However, the effective tax rate decreased by the reversals of impairment losses on the carrying amounts of the stakes in the GD tower companies and GlasfaserPlus that had no effect on tax. In addition, the remeasurement of deferred taxes in the third quarter of 2025 due to the future reduction of the corporate income tax rate in connection with the change in taxation laws in Germany also reduced the tax rate, as did a further measurement adjustment of deferred tax assets in the Europe operating segment.