Development of selected financial data

Net revenue, service revenue

• Net revenue increased by 3.0 % to EUR 87.4 billion. In organic terms, net revenue increased by 3.7 %. Service revenue was up 3.2 % to EUR 74.0 billion. In organic terms, the increase was 3.7 %.
• Revenue in the Germany segment decreased by 1.5 % on account of lower mobile terminal equipment sales. Service revenue grew by 0.9 %.
• Revenue in the United States segment increased by 4.7 %. In organic terms, revenue increased by 5.8 % due to the positive development of service and terminal equipment revenues.
• Revenue in our Europe segment increased by 2.3 %. In organic terms, the increase was 2.7 %, on account of higher service revenue.
• Revenue in the Systems Solutions segment was up 2.4 %, on the back of growth in the Digital and Road Charging areas.

billions of €

EBITDA AL (adjusted for special factors)

• Adjusted EBITDA AL grew by 3.2 % to EUR 33.4 billion. In organic terms, it increased by 4.4 %.
• Adjusted EBITDA AL in the Germany segment increased by 1.4 %, driven by service revenue growth and enhanced cost efficiency.
• Adjusted EBITDA AL in the United States segment increased by 3.3 %. In organic terms, the increase was 5.2 %, on account of higher service and terminal equipment revenues.
• Adjusted EBITDA AL in the Europe segment increased by 5.6 %. In organic terms, the increase was 5.9 %, driven by the sound revenue trend and a positive net margin.
• In the Systems Solutions segment, adjusted EBITDA AL grew by 13.7 % on the back of the revenue growth as well as margin increases and cost optimizations in the Cloud area.
• The adjusted EBITDA AL margin remained stable at 38.2 %. The adjusted EBITDA AL margin was 42.3 % in the Germany segment, 38.7 % in the United States segment, and 37.9 % in the Europe segment.

billions of €

Profit/loss from operations (EBIT)

• EBIT increased substantially by 9.2 % to EUR 19.4 billion.
• Special factors were down by EUR 0.5 billion, and had an impact of EUR ‑1.0 billion on EBITDA AL. Expenses incurred in connection with deconsolidations, disposals, and acquisitions decreased by EUR 0.4 billion and in the reporting year related mainly to integration costs in connection with the acquisition of UScellular. Expenses incurred in connection with staff restructuring measures decreased by EUR 0.2 billion.
• EBITDA AL grew by 4.9 % to EUR 32.4 billion.
• At EUR 17.7 billion, depreciation, amortization and impairment losses were EUR 0.2 billion lower than in the prior-year period.

billions of €

Net profit

• Net profit increased substantially by 12.2 % to EUR 7.9 billion.
• Loss from financial activities increased by EUR 0.5 billion, mainly due to the declining share of profit of associates and joint ventures included in the consolidated financial statements using the equity method. This was primarily attributable to reversals of impairment losses 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, compared with EUR 1.0 billion and EUR 0.3 billion, respectively, in the prior-year period.
• 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 segment.
• Adjusted earnings per share rose from EUR 1.43 to EUR 1.56.

billions of €

Equity ratio

• The equity ratio decreased by 0.4 percentage points to 31.9 %. Shareholders’ equity decreased by EUR 7.0 billion to EUR 91.6 billion, while total assets/total liabilities decreased by EUR 17.7 billion to EUR 287.2 billion.
• Shareholders’ equity was reduced in particular by other comprehensive income (EUR 6.4 billion), which was impacted by currency translation effects. Dividend payments – including to non-controlling interests – (EUR 6.0 billion) as well as transactions with owners (EUR 5.9 billion), mainly as a result of T‑Mobile US’ share buy-backs, likewise had a reducing effect. Deutsche Telekom AG’s share buy-backs (EUR 1.5 billion) also reduced shareholders’ equity.
• Profit in particular had an increasing effect on shareholders’ equity (EUR 12.1 billion).

%

Net debt ^a

• Net debt decreased by EUR 4.5 billion to EUR 132.8 billion.
• The main factors reducing net debt were free cash flow (before dividend payments and spectrum investment) of EUR 19.6 billion and exchange rate effects (EUR 11.5 billion).
• The main factors increasing net debt were corporate transactions in the United States segment (EUR 10.5 billion), T‑Mobile US’ share buy-backs (EUR 6.7 billion), dividend payments – including to non-controlling interests – (EUR 6.0 billion), and additions of lease liabilities and right-of-use assets (EUR 3.4 billion).

billions of €

Cash capex (before spectrum investment) ^b

• Cash capex (before spectrum investment) increased by EUR 0.3 billion to EUR 12.2 billion.
• In the United States segment, cash capex increased by EUR 0.6 billion, in particular due to higher investments in the continued network build-out. Cash capex in the Germany segment decreased by EUR 0.3 billion, mainly on account of the intra-year allocation of investments in the fiber build-out.
• Cash capex (including spectrum investment) increased by EUR 0.2 billion to EUR 14.6 billion. Cash outflows of EUR 1.3 billion were recorded in the reporting period for the acquisition of customer bases by T‑Mobile US. A further EUR 1.1 billion in total was invested in mobile spectrum licenses, mainly in the United States and Europe operating segments. In the prior-year period, EUR 2.4 billion was paid for mobile spectrum licenses, mainly in the United States.

billions of €

Free cash flow AL (before dividend payments and spectrum investment) ^{b, c}

• Free cash flow AL was up by EUR 1.0 billion to EUR 16.1 billion.
• Free cash flow AL was positively affected by the strong development of the operating business, lower cash outflows in connection with the integration of Sprint in the United States, and a decrease in cash outflows for the repayment of lease liabilities.
• Currency translation effects, higher cash capex (before spectrum investment), and marginally higher tax payments and net interest payments had a decreasing effect.

billions of €

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

For further information, please refer to the sections “Development of business in the Group” and “Development of business in the operating segments” in the interim Group management report, and to the IR backup 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 2024 combined management report (2024 Annual Report) and to our Investor Relations website.