Financial position of the Group

As of September 30, 2025, our total assets amounted to EUR 287.2 billion, which was down EUR 17.7 billion against the level as of December 31, 2024. Exchange rate effects, primarily from the translation from U.S. dollars into euros, in particular had a decreasing effect on the carrying amount of total assets. 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 total assets.

On the assets side, cash and cash equivalents decreased by EUR 2.7 billion against the end of the prior year to EUR 5.7 billion.

For further information, please refer to the section “Notes to the consolidated statement of cash flows” in the interim consolidated financial statements.

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 decreased 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.

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 and 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. 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. In 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. In the Europe operating segment, Poland and Slovakia acquired mobile spectrum for a total of EUR 0.4 billion. A further EUR 0.2 billion related to the Germany operating segment and the extension of the allocation of licenses by the Bundesnetzagentur. A further EUR 1.3 billion of the investments related to the acquisition of customer bases, 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 spectrum awards and agreements on spectrum licenses, please refer to the section “The economic environment.”

For further information on the acquisitions of UScellular, Vistar Media, Blis, and Metronet please refer to the section “Group organization, strategy, and management.”

Property, plant and equipment decreased by EUR 2.5 billion compared with December 31, 2024 to EUR 64.1 billion. Depreciation and impairment losses of EUR 8.7 billion, exchange rate effects of EUR 3.4 billion, 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 decreased by EUR 3.2 billion compared with December 31, 2024 to EUR 29.0 billion. Depreciation and impairment losses reduced the net carrying amount by EUR 4.0 billion. Exchange rate effects also 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.

Investments accounted for using the equity method increased by EUR 4.3 billion compared to 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 GD Towers and 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.

Current and non-current financial assets increased by EUR 0.7 billion to EUR 8.4 billion, with the net total of originated loans and receivables increasing by EUR 0.8 billion, mainly due to the increase in receivables in connection with publicly funded projects in the Germany operating segment. By contrast, derivative financial assets decreased by EUR 0.2 billion.

Non-current assets and disposal groups held for sale increased by EUR 3.3 billion to EUR 3.5 billion. 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) in the Europe operating segment.

Miscellaneous assets increased by EUR 1.4 billion to EUR 14.4 billion. Current and non-current other assets contributed EUR 0.7 billion to this increase, due in part to an increase in defined benefit assets as well as higher receivables from other taxes. Inventories increased by EUR 0.4 billion, due in particular to stockpiling, including for the market launch of high-value mobile terminal equipment, primarily in the United States operating segment, and due to effects of changes in the composition of the Group in connection with the acquisition of UScellular. By contrast, exchange rate effects reduced the carrying amount of inventories. Contract assets increased by EUR 0.2 billion.

On the liabilities and shareholders’ equity side, current and non-current financial liabilities decreased by EUR 3.9 billion compared with the end of 2024 to EUR 108.3 billion, mainly due to exchange rate effects. Bonds and other securitized liabilities declined by EUR 3.6 billion overall, mainly due to exchange rate effects of EUR 9.2 billion. The carrying amount was also reduced by scheduled and early repayments of USD bonds by T‑Mobile US in the amount of EUR 3.1 billion and the repayment of a EUR bond in the amount of EUR 0.4 billion. By contrast, the carrying amount was increased by USD bonds issued by T‑Mobile US of EUR 3.2 billion and by EUR bonds of EUR 2.8 billion. The carrying amount was also increased in particular by the issue of EUR bonds of EUR 1.5 billion by Deutsche Telekom AG as well as by USD bonds of EUR 1.4 billion assumed in connection with the acquisition of UScellular. Other interest-bearing liabilities decreased by EUR 0.4 billion, liabilities with the right of creditors to priority repayment in the event of default by EUR 0.4 billion, and other non-interest-bearing liabilities by EUR 0.2 billion. By contrast, liabilities to banks increased by EUR 0.9 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 EUR 0.8 billion.

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 decreased 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 of 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 lease liabilities 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.

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 on account of exchange rate effects. 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.

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 decreased by EUR 0.5 billion to EUR 7.4 billion compared with the end of 2024. Other provisions for personnel costs decreased by EUR 0.4 billion, mainly due 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 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.

Miscellaneous liabilities increased by EUR 0.8 billion compared to December 31, 2024 to EUR 9.8 billion, with other liabilities increasing by EUR 0.3 billion, mainly due to an increase in liabilities in connection with publicly funded projects in the Germany operating segment and higher liabilities from other taxes. By contrast, liabilities from early retirement arrangements for civil servants decreased. In addition, income tax liabilities as well as contract liabilities each increased by EUR 0.2 billion.

Shareholders’ equity decreased by EUR 7.0 billion as of December 31, 2024 to EUR 91.6 billion. Other comprehensive income decreased the carrying amount by EUR 6.4 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 share buy backs 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, while profit of EUR 12.1 billion and capital increases from share-based payments of EUR 0.7 billion had an increasing effect.

For further information, please refer to the section “Selected notes to the consolidated statement of financial position” in the interim consolidated financial statements.

Changes in net debt

millions of €

In addition to the purchase price payments and inflows of cash in connection with the acquisitions of UScellular, Vistar Media, and Blis, and the purchase price payments for the equity interests acquired in the joint ventures Metronet and Lumos, corporate transactions in the United States operating segment included the acquisition of customer bases as well as the senior notes and lease liabilities assumed in connection with the first-time consolidation of UScellular. The acquisition of spectrum relates to the United States, Germany, and Europe operating segments.

Free cash flow AL (before dividend payments and spectrum investment) increased by EUR 1.0 billion year-on-year to EUR 16.1 billion. The following effects impacted on this development:

Net cash from operating activities increased by EUR 1.0 billion to EUR 31.7 billion as a result of the strong development of the operating business. Lower cash outflows in connection with the integration of Sprint in the United States also had an increasing effect. By contrast, exchange rate effects and slight increases in net interest payments and tax payments had a reducing effect.

Excluding cash outflows for investments made by T‑Mobile US to acquire customer bases, cash capex (before spectrum investment) increased by EUR 0.3 billion to EUR 12.2 billion. In the United States operating segment, cash capex increased by EUR 0.6 billion to EUR 6.7 billion, in particular due to higher investments in the continued network build-out. In the Europe operating segment, cash capex increased slightly against the level of the prior-year period to EUR 1.4 billion. In the Germany operating segment, cash capex totaled EUR 3.3 billion in the reporting year, a decline of EUR 0.3 billion compared with the prior-year period. This was primarily due to the intra-year allocation of investments in the fiber build-out. In the Systems Solutions operating segment, at EUR 0.2 billion, cash capex declined slightly year-on-year.

The sale of spectrum licenses by T‑Mobile US to N77 generated cash proceeds of EUR 1.8 billion. Excluding this transaction, proceeds from the disposal of intangible assets (excluding goodwill and spectrum) and property, plant and equipment amounted to EUR 0.1 billion.

A decrease of EUR 0.2 billion in cash outflows – in particular in the United States operating segments – for the repayment of lease liabilities had an increasing effect on free cash flow AL.

For further information, please refer to the section “Notes to the consolidated statement of cash flows” in the interim consolidated financial statements.

Rating

Deutsche Telekom’s credit rating with Standard & Poorʼs was upgraded on May 28, 2025, standing at BBB+ with a positive outlook as of September 30, 2025. On September 26, 2025, the rating agency Moody’s raised our rating, which stood at A3 with a stable outlook as of September 30, 2025. As a solid investment-grade company, we have access to the international capital markets.