Results of operations of the Group

In order to increase the informative value of the prior-year comparatives based on changes to the Company’s structure or exchange rate effects, we also describe the change in selected figures in organic terms, by adjusting the figures for the prior-year period for changes in the composition of the Group, exchange rate effects, and other effects. Positive effects of changes in the composition of the Group mainly related to the corporate transactions concluded in the United States operating segment. Negative exchange rate effects were primarily attributable to the translation of U.S. dollars to euros.

For further information on corporate transactions, please refer to the section “Group organization, strategy, and management.”

Revenue, service revenue

In the first three quarters of 2025, we generated net revenue of EUR 87.4 billion, which was up 3.0 % or EUR 2.5 billion year-on-year. In organic terms, revenue increased by 3.7 % against the prior-year level, with changes in the composition of the Group having an increasing effect of EUR 0.9 billion and exchange rate effects having a net reducing effect of EUR 1.5 billion. Service revenue in the Group increased by EUR 2.3 billion or 3.2 % year-on-year to EUR 74.0 billion. In organic terms, service revenue increased by 3.7 %.

In our domestic market of Germany, revenue declined by 1.5 % year-on-year, mainly due to lower mobile terminal equipment revenues. By contrast, service revenues increased year-on-year. In our United States operating segment, revenue was up 4.7 % against the prior-year level. In organic terms, it increased by 5.8 %, due to both higher service revenues and higher terminal equipment revenues. In our Europe operating segment, revenue increased by 2.3 % year-on-year. In organic terms, it increased by 2.7 %, primarily due to the increase in service revenues in the mobile and fixed-network business. Revenue in our Systems Solutions operating segment was up 2.4 % year-on-year, mainly due to growth in the Digital and Road Charging areas.

For further information, please refer to the section “Development of business in the operating segments.”

Contribution of the segments to net revenue ^a, b

%

Breakdown of revenue by region ^c

%

^a For further information on net revenue, please refer to the section “Segment reporting” in the interim consolidated financial statements.
^b Following the sale of the GD Towers business entity in the 2023 financial year, the Group Development operating segment no longer provides a significant contribution to net revenue.
^c The calculation of the international share was adjusted effective September 30, 2025. Prior-year comparatives have been adjusted retrospectively.

Our United States operating segment made by far the largest contribution to net revenue, with 65.4 % (Q1-Q3 2024: 64.3 %). The proportion of net revenue generated internationally increased to 77.9 % (Q1-Q3 2024: 77.0 %) ^c.

Adjusted EBITDA AL, EBITDA AL

In the first three quarters of 2025, we generated adjusted EBITDA AL of EUR 33.4 billion, which was up 3.2 % or EUR 1.0 billion year-on-year. In organic terms, adjusted EBITDA AL increased by 4.4 %, with the changes in the composition of the Group having an increasing effect of EUR 0.2 billion and exchange rate effects having a net decreasing effect of EUR 0.6 billion.

Our Germany operating segment contributed to the increase thanks to high-value service revenue growth and improved cost efficiency with 1.4 % higher adjusted EBITDA AL. Adjusted EBITDA AL in our United States operating segment increased by 3.3 %, or 5.2 % in organic terms. This rise is primarily attributable to higher service and terminal equipment revenues, offset by increases in some costs. In our Europe operating segment, adjusted EBITDA AL increased by 5.6 % on the back of the sound revenue trend and a positive net margin, or 5.9 % in organic terms. In our Systems Solutions operating segment, adjusted EBITDA AL increased by 13.7 %, mainly due to revenue growth in the Digital and Road Charging areas and to increased margins and cost optimizations in the Cloud area.

Our EBITDA AL increased by EUR 1.5 billion year-on-year to EUR 32.4 billion. Expenses from special factors affecting EBITDA AL decreased by EUR 0.5 billion to EUR ‑1.0 billion, with expenses incurred in connection with staff restructuring measures decreasing by EUR 0.2 billion year-on-year. In the prior-year period, net expenses of EUR 0.6 billion were recorded as special factors under effects of deconsolidations, disposals, and acquisitions. This included the expenses from the forgone contingent consideration receivable from IFM Global Infrastructure Fund in the Germany operating segment. In the reporting period, the expenses totaled EUR 0.3 billion and mainly related to integration costs arising from the acquisition of UScellular in the United States operating segment. Other special factors affecting EBITDA AL remained on a par with the prior-year period at EUR 0.1 billion. They included the write-off of not-in-service capitalized software development costs related to a billing system in the United States operating segment. By contrast, in addition to the income from the sale of spectrum licenses to N77, legal-related insurance recoveries were recognized in relation to the cyberattack on T‑Mobile US in August 2021.

For further information, please refer to the section “Development of business in the operating segments.”

Profit/loss from operations (EBIT)

Group EBIT increased significantly to EUR 19.4 billion, up EUR 1.6 billion against the level of the prior-year period. This increase is due in particular to the effects described under adjusted EBITDA AL and EBITDA AL.

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 offset by higher depreciation expense from assets acquired in the UScellular Acquisition. 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 0.1 billion in the reporting period and mainly related to the Romania cash-generating unit.

Profit before income taxes

Profit before income taxes increased by EUR 1.1 billion to EUR 15.8 billion. Loss from financial activities included in this increased year-on-year from EUR 3.1 billion to EUR 3.6 billion, mainly due to the EUR 0.5 billion decrease in the share of profit of associates and joint ventures included in the consolidated financial statements using the equity method. 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 GD Towers 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 GD Towers 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. Finance costs declined by EUR 0.1 billion, while other financial income/expense increased by EUR 0.1 billion.

Net profit, adjusted net profit

Net profit increased year-on-year by EUR 0.9 billion to EUR 7.9 billion. Tax expense increased by EUR 0.1 billion to EUR 3.7 billion. Profit attributable to non-controlling interests increased by EUR 0.2 billion to EUR 4.2 billion; this increase was primarily attributable to the United States operating segment. Adjusted net profit amounted to EUR 7.6 billion compared with EUR 7.1 billion in the prior-year period.

For further information on tax expense, please refer to the section “Income taxes” in the interim consolidated financial statements.

Earnings per share, adjusted earnings per share

Earnings per share is calculated as net profit divided by the weighted average number of ordinary shares outstanding, which totaled 4,879 million as of September 30, 2025. This resulted in earnings per share of EUR 1.62, up from EUR 1.42 in the prior-year period. Adjusted earnings per share amounted to EUR 1.56 compared with EUR 1.43 in the prior-year period.

Employees

The Group’s headcount grew by 1.6 % compared with the end of the prior year as a result of a higher headcount in the United States. The total number of full-time equivalent employees in our United States operating segment increased by 9.0 % compared to December 31, 2024, which includes the impact of the acquisition of UScellular in the third quarter of 2025 as well as the acquisitions of Vistar Media and Blis in the first quarter of 2025. In our Germany operating segment, the number of employees declined by 1.9 % against the end of the prior year. Employees continued to take up socially responsible instruments as part of staff restructuring activities, such as phased retirement. In our Europe operating segment, the headcount was down by 2.1 % compared with the end of the prior year, in particular in Greece, Hungary, and Poland. The headcount in our Systems Solutions operating segment was down 1.9 % against year-end 2024, mainly due to a workforce reduction in traditional infrastructure business. The headcount in the Group Headquarters & Group Services segment was down 2.5 % compared with the end of the prior year, mainly due to the continued staff restructuring measures.

Reconciliations of financial performance indicators from the IFRS consolidated financial statements

A reconciliation of the definition of EBITDA to the “after leases” indicator (EBITDA AL) can be found in the following table:

The following table presents the reconciliation of net profit to net profit adjusted for special factors:

The following table presents a reconciliation of EBITDA AL, EBIT, and net profit to the respective figures adjusted for special factors: