Selected notes to the consolidated statement of financial position

Trade receivables

At EUR 15.9 billion, trade receivables decreased by EUR 0.5 billion against the 2024 year-end level. This was mainly due to lower receivables in the Germany operating segment. Receivables also decreased in the United States operating segment. While negative exchange rate effects, primarily from the translation from U.S. dollars into euros, reduced the carrying amount, effects of changes in the composition of the Group from the acquisitions of UScellular, Vistar Media, and Blis increased the carrying amount of receivables.

For further information on the acquisitions of UScellular, Vistar Media, and Blis, please refer to the section “Changes in the composition of the Group and other transactions.”

Contract assets

The carrying amount of contract assets increased by EUR 0.2 billion against December 31, 2024 to EUR 2.9 billion. Contract assets relate to receivables that have not yet legally come into existence, which arise from the earlier – as compared to billing – recognition of revenue, in particular from the sale of goods and merchandise. Furthermore, receivables from long-term construction contracts are recognized under contract assets.

Inventories

The carrying amount of inventories increased by EUR 0.4 billion against the 2024 year-end level to EUR 2.9 billion. Stockpiling, including for the market launch of high-value mobile terminal equipment, primarily in the United States operating segment, increased the carrying amount, as did effects of changes in the composition of the Group resulting from the acquisition of UScellular. By contrast, exchange rate effects, primarily from the translation from U.S. dollars into euros, decreased the carrying amount.

For further information on the acquisition of UScellular, please refer to the section “Changes in the composition of the Group and other transactions.”

Intangible assets

The carrying amount of intangible assets decreased by EUR 15.5 billion compared to December 31, 2024 to EUR 133.6 billion. Exchange rate effects of EUR 14.7 billion, primarily from the translation of U.S. dollars into euros, and depreciation, amortization and impairment losses of EUR 5.0 billion decreased the carrying amount. Reclassifications of intangible assets to non-current assets and disposal groups held for sale also reduced the carrying amount by EUR 5.1 billion. In the United States operating segment, this related to the agreed sale of spectrum licenses to Grain for EUR 3.1 billion, and the sale of spectrum licenses to N77 for EUR 1.7 billion, as described in the following section. In addition, further agreements were entered in the reporting period for the exchange of spectrum licenses. Disposals reduced the carrying amount by EUR 0.3 billion, mainly due to the write-off of not-in-service capitalized software development costs related to a billing system in the United States operating segment. By contrast, investments increased the carrying amount by EUR 6.6 billion. EUR 1.4 billion of this related to the acquisition of mobile spectrum, of which EUR 1.0 billion related to the acquisition of mobile spectrum in the United States operating segment. This included EUR 0.5 billion for the acquisition of the remaining Channel 51 licenses, as described in the following section. A further EUR 0.2 billion related to the Germany operating segment and the extension of the allocation of licenses by the Bundesnetzagentur in the 800 MHz, 1,800 MHz, and 2,600 MHz spectrum bands. In the Europe operating segment, Poland and Slovakia acquired mobile spectrum for a total of EUR 0.4 billion. A further EUR 1.3 billion of the investments related to the acquisition of customer bases outside of business combinations, mainly from Metronet. Effects of changes in the composition of the Group resulting from the acquisition of UScellular, Vistar Media, and Blis increased the carrying amount by EUR 3.1 billion, with goodwill accounting for EUR 0.6 billion of this.

For further information on the Vistar Media, UScellular, Blis, and Metronet transactions, please refer to the section “Changes in the composition of the Group and other transactions.”

Agreements on spectrum licenses

On August 8, 2022, T‑Mobile US entered into agreements with Channel 51 License Co, LLC and LB License Co, LLC (Sellers) for the acquisition of spectrum licenses in the 600 MHz band in exchange for a total cash consideration of USD 3.5 billion (EUR 3.2 billion). On March 30, 2023, the contractual parties had further agreed that the transaction be divided into two separate tranches. On December 29, 2023, the Federal Communications Commission (FCC) approved the transfer of the licenses in the first tranche. This transfer was concluded on June 24, 2024. The corresponding purchase price payment of USD 2.4 billion (EUR 2.2 billion) was made on August 5, 2024. On October 22, 2024, the FCC approved the transfer of certain licenses from the second tranche. These licenses were transferred and the associated purchase price of USD 0.5 billion (EUR 0.5 billion) paid on December 6, 2024. The transaction for the remaining licenses from the second tranche was closed on June 2, 2025 with the purchase price payment of USD 0.6 billion (EUR 0.5 billion), following regulatory approvals by the FCC.

On September 10, 2024, T‑Mobile US and N77 License Co. LLC (N77) entered into an agreement on the sale of spectrum licenses, pursuant to which N77 had the option to purchase all or a portion of T‑Mobile US’ remaining 3.45 GHz licenses for a certain range of cash consideration. The number of licenses sold was determined based upon the amount of committed financing granted to N77. On April 30, 2025, T‑Mobile US completed the sale of a portion of the licenses in exchange for a purchase price of USD 2.0 billion (EUR 1.8 billion). The sale, which followed regulatory approvals by the U.S. Federal Communications Commission (FCC), generated income of EUR 0.1 billion. The licenses transferred as part of the transaction, which had a carrying amount totaling EUR 1.7 billion, were recognized in non-current assets and disposal groups held for sale after being reclassified as a result of the agreement, and up to the point at which the transaction was consummated.

The following agreements will have an impact on the presentation of Deutsche Telekom’s results of operations and financial position in the future:

On May 30, 2025, T‑Mobile US entered into an agreement on the sale of 800 MHz spectrum licenses to Grain Management, LCC (Grain) in exchange for cash consideration of USD 2.9 billion (EUR 2.5 billion) and the receipt of Grain’s 600 MHz spectrum licenses. It has been further agreed that T‑Mobile US will additionally receive a share of future proceeds from transactions entered into by Grain that monetize the 800 MHz spectrum licenses, subject to certain terms and conditions. Since June 30, 2025, the licenses concerned have been reported as held for sale with a carrying amount of EUR 3.1 billion. The transaction is subject to regulatory approvals by the FCC and certain other customary closing conditions, and is currently expected to close in the fourth quarter of 2025 or the first quarter of 2026.

On September 12, 2023, T‑Mobile US agreed with U.S. cable network operator Comcast Corporation (Comcast) to acquire spectrum in the 600 MHz band in exchange for total cash consideration of between USD 1.2 billion and USD 3.3 billion (EUR 1.0 billion and EUR 2.8 billion), depending on the number of underlying licenses. The final purchase price will be determined at the time the parties make the required transfer filings with the FCC. At the same time, T‑Mobile US and Comcast have concluded exclusive leasing arrangements. The leasing rights for T‑Mobile US will apply for at least two years, regardless of whether Comcast decides to remove part of its licenses from the purchase agreement. On January 13, 2025, T‑Mobile US and Comcast entered into an amendment to the license purchase agreement pursuant to which T‑Mobile US will acquire additional spectrum. As a consequence of the amendment, the total cash consideration amounts to between USD 1.2 billion and USD 3.4 billion (EUR 1.0 billion and EUR 2.9 billion). A partial acquisition of spectrum licenses with a value of approximately USD 45 million (EUR 38 million) is expected in the first half of 2026. The acquisition of the remaining licenses is then expected to close in the first half of 2028.

For further information, please refer to the section “Other financial obligations.”

Property, plant and equipment

The carrying amount of property, plant and equipment decreased by EUR 2.5 billion compared with December 31, 2024 to EUR 64.1 billion. Depreciation and impairment losses totaling EUR 8.7 billion, exchange rate effects of EUR 3.4 billion, primarily from the translation of U.S. dollars into euros, and disposals of EUR 0.2 billion decreased the carrying amount. Additions, primarily for the upgrade and build-out of the network (broadband, fiber-optic, and mobile infrastructure) increased the carrying amount by EUR 8.3 billion. Effects of changes in the composition of the Group, mainly resulting from the acquisition of UScellular, increased the carrying amount by EUR 1.0 billion. Reclassifications of right-of-use assets upon expiry of the contractual lease term to property, plant and equipment, primarily for network technology in the United States operating segment, also increased the carrying amount by EUR 0.5 billion.

Right-of-use assets

The carrying amount of the right-of-use assets decreased by EUR 3.2 billion compared to December 31, 2024 to EUR 29.0 billion. Depreciation and impairment losses reduced the net carrying amount by EUR 4.0 billion. Furthermore, exchange rate effects, primarily from the translation of U.S. dollars into euros, reduced the carrying amount by EUR 3.1 billion. The previously mentioned reclassifications to property, plant and equipment also reduced the carrying amount by EUR 0.5 billion. The carrying amount was increased by additions of EUR 3.4 billion and effects of changes in the composition of the Group of EUR 1.1 billion, mainly from the acquisition of UScellular. Right-of-use assets totaling EUR 0.9 billion were recognized in connection with a master license agreement concluded by T‑Mobile US for the lease of new space on UScellular towers and the extension of lease terms for space already being leased on further UScellular towers. This included right-of-use assets of EUR 0.7 billion for towers that were not already being leased by T‑Mobile US before the date of acquisition of UScellular, reported as additions from changes in the composition of the Group.

For further information on the master license agreement with UScellular, please refer to the section “Changes in the composition of the Group and other transactions.”

Capitalized contract costs

As of September 30, 2025, the carrying amount of capitalized contract costs remained at the level as of December 31, 2024 at EUR 3.7 billion. The capitalized contract costs primarily relate to the United States and Germany operating segments.

Investments accounted for using the equity method

The carrying amount of investments accounted for using the equity method increased by EUR 4.3 billion compared with December 31, 2024, to EUR 11.6 billion, mainly due to the acquisition of 50 % of the equity interests in the joint ventures Metronet and Lumos in the United States operating segment for the purchase prices of EUR 2.7 billion and EUR 0.8 billion, respectively. Furthermore, reversals of impairment losses were recognized in the reporting period of EUR 0.5 billion and EUR 0.2 billion, respectively, 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.

For further information on the acquisitions of Metronet and Lumos, please refer to the section “Changes in the composition of the Group and other transactions.”

Other financial assets

The carrying amount of current and non-current other financial assets increased by EUR 0.7 billion compared to December 31, 2024 to EUR 8.4 billion. Exchange rate effects reduced the carrying amount by EUR 0.3 billion.

The net total of originated loans and receivables increased by EUR 0.8 billion to EUR 5.9 billion. This increase in the carrying amount was mainly due to higher receivables from grants still to be received from publicly funded projects in the Germany operating segment (EUR 0.4 billion), the increase in receivables in connection with device insurance policies (EUR 0.2 billion), dividend receivables from associates and joint ventures accounted for using the equity method (EUR 0.1 billion), and effects of changes in the composition of the Group, primarily from the acquisition of UScellular (EUR 0.1 billion). Exchange rate effects reduced the carrying amount by EUR 0.2 billion.

The carrying amount of derivatives without a hedging relationship decreased by EUR 0.4 billion, in particular in connection with the measurement of cross-currency swaps, due to a fall in the USD/EUR exchange rate. By contrast, the carrying amount of derivatives with a hedging relationship increased by EUR 0.2 billion.

For information on cash collateral deposited and on derivatives, please refer to the section “Disclosures on financial instruments.”

Other assets

The carrying amount of current and non-current other assets increased by EUR 0.7 billion to EUR 4.5 billion. As of September 30, 2025, this included various advance payments, totaling EUR 3.4 billion (December 31, 2024: EUR 3.3 billion), mainly relating to advance payments for maintenance, repairs, and in connection with agreements on services for certain mobile communications and fixed-network equipment that do not fall under the scope of IFRS 16. Non-current other assets also included a defined benefit asset of EUR 0.5 billion as of September 30, 2025 (December 31, 2024: EUR 0.1 billion). Receivables from other taxes increased by EUR 0.2 billion.

For further information on the defined benefit asset, please refer to the section “Provisions for pensions and other employee benefits.”

Non-current assets and disposal groups held for sale

The carrying amount of non-current assets and disposal groups held for sale as of September 30, 2025 was EUR 3.5 billion, up EUR 3.3 billion on the level of December 31, 2024. The increase mainly related to the United States operating segment and resulted from the agreed sale of spectrum licenses to Grain for EUR 3.1 billion. The carrying amount was also increased by the agreed sale of Telekom Romania Mobile Communications (TKRM), which was assigned to the Europe operating segment. The agreement on the sale of spectrum licenses to N77 initially led to an increase in the carrying amount of EUR 1.7 billion during the course of the year. The sale of these licenses, consummated in April 2025, then reduced the carrying amount by EUR 1.7 billion.

For further information on the agreements between T‑Mobile US and Grain and N77, please refer to the section “Intangible assets.”

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.”

Financial liabilities and lease liabilities

The following table shows the composition and maturity structure of financial liabilities and lease liabilities as of September 30, 2025:

The carrying amount of current and non-current financial liabilities decreased by EUR 3.9 billion compared with year-end 2024 to EUR 108.3 billion, primarily due to the factors described below. This also includes exchange rate effects that reduced the carrying amount by EUR 10.3 billion, primarily from the translation of U.S. dollars into euros.

The carrying amount of bonds and other securitized liabilities decreased by EUR 3.6 billion to EUR 91.1 billion. Exchange rate effects decreased the carrying amount of bonds and other securitized liabilities by EUR 9.2 billion. In addition, the carrying amount was reduced by scheduled repayments of a USD bond of USD 3.0 billion (EUR 2.7 billion) by T‑Mobile US and of a EUR bond of EUR 0.4 billion of Deutsche Telekom International Finance B.V., as well as by the scheduled repayment of a USD bond of USD 0.5 billion (EUR 0.4 billion) by T‑Mobile US. The carrying amount was increased by USD bonds issued by T‑Mobile US in the reporting period with a volume of USD 3.5 billion (EUR 3.2 billion) with terms ending between 2032 and 2055 and bearing interest of between 5.13 % and 5.88 %, and by EUR bonds with a volume of EUR 2.8 billion with terms ending between 2032 and 2045 and bearing interest of between 3.15 % and 3.80 %. It was also increased by senior notes assumed in connection with the acquisition of UScellular in the amount of USD 1.7 billion (EUR 1.4 billion), which were then exchanged under exchange offers into T‑Mobile US USD bonds with a total value of USD 1.7 billion (EUR 1.4 billion) with terms ending between 2033 and 2070 and bearing interest of between 5.50 % and 6.70 %. The carrying amount was also increased by the issue of EUR bonds of EUR 1.5 billion by Deutsche Telekom AG, with terms ending between 2032 and 2045 and bearing interest of 3.00 % to 3.63 % and of a NOK bond by Deutsche Telekom AG of NOK 1.5 billion (EUR 0.1 billion) with a term ending in 2037 and bearing interest of 4.57 %.

The asset-backed securities collateralized by trade receivables of EUR 1.7 billion (December 31, 2024: EUR 1.5 billion) are bonds issued by T‑Mobile US. Trade receivables were provided as collateral for these bonds, hence they constitute a separate class of financial instruments. Issues in the reporting period in the amount of EUR 0.9 billion when translated into euros increased the carrying amount. By contrast, repayments of EUR 0.5 billion when translated into euros had a decreasing effect on the carrying amount. Exchange rate effects also decreased the carrying amount by EUR 0.2 billion. As of the reporting date, trade receivables with a carrying amount of EUR 2.1 billion when translated into euros (December 31, 2024: EUR 1.8 billion) were pledged as collateral for these bonds.

The carrying amount of liabilities to banks increased by EUR 0.9 billion compared with December 31, 2024 to EUR 3.1 billion, mainly due to T‑Mobile US utilizing a credit line backed by an export credit agency (ECA Facility) to finance network equipment-related purchases amounting to USD 0.9 billion (EUR 0.8 billion).

The liabilities with the right of creditors to priority repayment in the event of default of EUR 0.8 billion (December 31, 2024: EUR 1.3 billion) relate primarily to bonds issued by Sprint. Collateral was provided for these bonds, hence they constitute a separate class of financial instruments. The main factor reducing the carrying amount was repayments made in the reporting period in the amount of EUR 0.4 billion when translated into euros. At the reporting date, cash and cash equivalents with a carrying amount of EUR 71 million (December 31, 2024: EUR 70 million) when translated into euros were pledged as collateral for these bonds. Exchange rate effects decreased the carrying amount of liabilities with the right of creditors to priority repayment in the event of default by EUR 0.1 billion.

The carrying amount of other interest-bearing liabilities decreased by EUR 0.4 billion compared with December 31, 2024 to EUR 6.0 billion. Exchange rate effects decreased the carrying amount of other interest-bearing liabilities by EUR 0.4 billion. In addition, the carrying amount in the Germany operating segment was reduced by scheduled repayments of loans for the acquisition of 5G licenses (EUR 0.2 billion) and by liabilities for broadcasting rights (EUR 0.1 billion). By contrast, the carrying amount was increased in connection with liabilities incurred for the acquisition of spectrum in the Germany (EUR 0.2 billion for the extension of the allocation of licenses by the Bundesnetzagentur) and Europe (EUR 0.1 billion for the acquisition of mobile spectrum in Slovakia) operating segments. In connection with cash collateral received for derivative financial instruments – primarily forward-payer swaps – the carrying amount of other interest-bearing liabilities increased by EUR 0.2 billion.

The carrying amount of other non-interest-bearing liabilities decreased by EUR 0.2 billion to EUR 1.9 billion, due in part to exchange rate effects.

The carrying amount of derivative financial liabilities decreased by EUR 0.3 billion compared with December 31, 2024 to EUR 2.4 billion. It was mainly reduced by measurement effects from derivatives in cash flow hedges, which decreased the carrying amount by EUR 0.3 billion.

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

The carrying amount of current and non-current lease liabilities decreased by EUR 3.7 billion compared with December 31, 2024 to EUR 36.5 billion. Exchange rate effects, in particular from the translation of U.S. dollars into euros, reduced the carrying amount by EUR 3.7 billion. In addition, lease liabilities decreased by EUR 0.6 billion in the United States operating segment, mainly due to a lower number of new contracts following the decommissioning of the former Sprint’s wireless network and other synergies from the Sprint Merger. Lease liabilities in the Germany and Europe operating segments and in the Group Headquarters & Group Services segment decreased by a total of EUR 0.4 billion. By contrast, effects of changes in the composition of the Group, mainly resulting from the acquisition of UScellular, increased the carrying amount by EUR 1.1 billion. Lease liabilities totaling EUR 0.9 billion were recognized in connection with a master license agreement concluded by T‑Mobile US for the lease of new space on UScellular towers and the extension of lease terms for space already being leased on further UScellular towers. Of this, lease liabilities of EUR 0.7 billion for the cell towers that were not already being leased by T‑Mobile US before the date of acquisition of UScellular were reported as additions from changes in the composition of the Group.

For further information on the master license agreement with UScellular, please refer to the section “Changes in the composition of the Group and other transactions.”

Trade and other payables

The carrying amount of trade and other payables decreased by EUR 0.3 billion to EUR 9.2 billion. This was due to lower liabilities in the United States and Europe operating segments, mainly as a result of exchange rate effects, in particular from the translation of U.S. dollars to euros. By contrast, effects of changes in the composition of the Group from the acquisitions of UScellular, Vistar Media, and Blis in the United States operating segment increased the carrying amount. Liabilities increased in the Germany and Systems Solutions operating segments.

For further information on the acquisitions of UScellular, Vistar Media, and Blis, please refer to the section “Changes in the composition of the Group and other transactions.”

Provisions for pensions and other employee benefits

The carrying amount of provisions for pensions and other employee benefits decreased by EUR 0.8 billion compared with December 31, 2024 to EUR 2.4 billion. Overall, the remeasurement of defined benefit plans resulted in an actuarial gain of EUR 1.0 billion to be recognized directly in equity, mainly due to the increase in the fair values of plan assets and the increase in the discount rate compared with December 31, 2024. Benefits paid directly by the employer in the reporting period also contributed to the reduction in the carrying amount. By contrast, the EUR 0.4 billion increase in the pension surplus at Deutsche Telekom AG compared with December 31, 2024 had an increasing effect, which resulted in an additional defined benefit asset under other non-current assets.

Current and non-current other provisions

The carrying amount of current and non-current other provisions decreased by EUR 0.5 billion compared with the end of 2024 to EUR 7.4 billion. Other provisions for personnel costs decreased by EUR 0.4 billion, due in part to an interest rate-based decline in the carrying amount of the provision recognized for the Civil Health Insurance Fund (Postbeamtenkrankenkasse – PBeaKK). Exchange rate effects, in particular from the translation of U.S. dollars into euros, reduced the carrying amount by EUR 0.3 billion. By contrast, effects of changes in the composition of the Group, mainly resulting from the acquisition of UScellular, increased the carrying amount by EUR 0.2 billion.

For further information on the acquisition of UScellular, please refer to the section “Changes in the composition of the Group and other transactions.”

Other liabilities

The carrying amount of current and non-current other liabilities increased by EUR 0.3 billion to EUR 5.2 billion, mainly due to an increase of EUR 0.3 billion in liabilities in connection with publicly funded projects in the Germany operating segment and an increase of EUR 0.2 billion in liabilities from other taxes. By contrast, liabilities from early retirement arrangements for civil servants decreased by EUR 0.2 billion.

Current and non-current contract liabilities

The carrying amount of current and non-current contract liabilities increased by EUR 0.2 billion compared with December 31, 2024 to EUR 3.6 billion. These substantially include deferred revenues. In the United States operating segment, contract liabilities increased by EUR 0.2 billion, mainly due to effects of changes in the composition of the Group in connection with the acquisition of UScellular. By contrast, exchange rate effects, primarily from the translation from U.S. dollars into euros, decreased the carrying amount.

Shareholders’ equity

The carrying amount of shareholders’ equity decreased by EUR 7.0 billion compared with December 31, 2024 to EUR 91.6 billion. Shareholders’ equity was reduced in connection with dividend payments for the 2024 financial year to Deutsche Telekom AG shareholders in the amount of EUR 4.4 billion and to other shareholders of subsidiaries in the amount of EUR 1.6 billion. The latter figure includes cash dividends paid by T‑Mobile US to non-controlling interests, as declared in the reporting period. Transactions with owners also decreased the carrying amount by EUR 5.9 billion, and related mainly to the buy-back of shares by T‑Mobile US. The carrying amount was also reduced by Deutsche Telekom AG’s 2025 share buy-back program with share buy-backs of EUR 1.5 billion, with profit of EUR 12.1 billion and capital increases from share-based payments of EUR 0.7 billion having an increasing effect. Other comprehensive income decreased the carrying amount by EUR 6.4 billion, mainly due to currency translation effects recognized directly in equity of EUR -7.7 billion and income taxes relating to components of other comprehensive income of EUR -0.3 billion. The remeasurement of defined benefit plans of EUR 1.0 billion and gains from hedging instruments of EUR 0.4 billion had an increasing effect.

On August 19, 2025, the Board of Management resolved, with the authorization of the Shareholders’ Meeting from April 9, 2025, to cancel 81,268,383 shares that had been acquired as part of the 2024 share buy-back program. The cancellation resulted in the decrease of the share capital by around EUR 208 million. Deutsche Telekom AG’s share capital now amounts to approximately EUR 12.6 billion and is divided into 4,905,190,213 no par value registered shares. This results in a calculated value of EUR 2.56 per share. Each share entitles the holder to one vote.

For further information on the share buy-back programs of Deutsche Telekom AG and T‑Mobile US, please refer to the section “Other transactions that had no effect on the composition of the Group.”

The following table shows the changes in the composition of the Group and the development of transactions with owners: