Deutsche Telekom at a glance
- Growth trend continued: Net revenue grew by EUR 1.0 billion to EUR 18.6 billion – increase of 5.8 percent.
- Our United States operating segment remained the Group’s growth driver with revenue increasing by 14.9 percent.
- Revenue also increased slightly, by 0.7 percent, in our Europe operating segment, while our Germany operating segment saw revenue remain stable with an increase of 0.2 percent. In our Systems Solutions operating segment, revenue decreased by 8.3 percent.
- On a comparable basis, i.e., excluding exchange rate effects and effects from changes in the composition of the Group, net revenue increased by 3.9 percent.
- Adjusted EBITDA grew by 7.5 percent to EUR 5.6 billion.
- Due to the ongoing success of T-Mobile US, we generated an increase in adjusted EBITDA of 25.1 percent in the United States operating segment.
- Adjusted EBITDA in our Germany operating segment grew slightly, whereas our Systems Solutions and Europe operating segments recorded a decline.
- At 29.8 percent, the Group’s adjusted EBITDA margin increased slightly against the prior-year level of 29.3 percent. The EBITDA margin was 38.4 percent in Germany and 32.0 percent in Europe.
- EBIT decreased from EUR 4.5 billion to EUR 2.8 billion.
- In the reporting period, EBIT included positive net special factors of EUR 0.4 billion, mainly attributable to the sale of Strato (EUR 0.5 billion). The prior-year period had profited from higher positive special factors, primarily from the sale of our stake in the EE joint venture (EUR 2.5 billion) and from transactions for the exchange of spectrum licenses in the United States (EUR 0.4 billion).
- Depreciation, amortization and impairment losses amounted to EUR 3.2 billion, slightly above the figure in the prior-year period, largely due to the ongoing 4G/LTE network build-out at T-Mobile US.
- Net profit decreased by EUR 2.4 billion to EUR 0.7 billion as a result of the aforementioned effects.
- Our loss from financial activities increased by EUR 1.8 billion, primarily as a result of negative remeasurement effects from the exercise and subsequent measurement of embedded derivatives in T-Mobile US bonds and the EUR 0.7 billion impairment of our financial stake in BT, which was recognized in profit and loss.
- The tax benefit amounted to EUR 0.1 billion, while in the prior-year period there had been a tax expense of EUR 0.9 billion. Profit attributable to non-controlling interests decreased by EUR 0.2 billion.
- The equity ratio increased by 0.6 percentage points to 26.8 percent.
- Total assets grew by a marginal EUR 0.1 billion compared with the end of 2016.
- Shareholders’ equity increased by EUR 1.0 billion compared with December 31, 2016 to EUR 39.8 billion. Profit after taxes of EUR 0.8 billion had an increasing effect.
- Cash capex (including spectrum investment) decreased by EUR 0.6 billion to EUR 3.3 billion.
- In the prior-year period, mobile spectrum licenses were acquired for a total of EUR 1.1 billion, primarily in the United States and Europe operating segments.
- Excluding the effects of spectrum acquisitions, cash capex increased by EUR 0.4 billion primarily in the United States and Germany operating segments. In both cases, this was due to investments we have made in the build-out and modernization of our networks.
FREE CASH FLOW (BEFORE DIVIDEND PAYMENTS AND SPECTRUM INVESTMENT)
- Free cash flow was up by EUR 0.4 billion to EUR 1.2 billion.
- The year-on-year increase of EUR 0.9 billion in net cash from operating activities, which profited mainly from the positive business development of the United States operating segment, had an increasing effect.
- The year-on-year increase of EUR 0.4 billion in cash capex (before spectrum investment) reduced free cash flow.
- Net debt remained stable compared with the end of 2016.
- The positive effect of free cash flow (EUR 1.2 billion) was partially offset by effects from embedded derivatives at T-Mobile US and the increase in liabilities from finance leases.
For a more detailed explanation, please refer to the section “Development of business in the Group”.