Deutsche Telekom at a glance
- Growth trend continued: Net revenue grew by EUR 2.1 billion to EUR 37.5 billion – increase of 5.9 percent.
- Our United States operating segment remained the Groupʼs growth driver with revenue increasing by 13.8 percent.
- Revenue also grew slightly by 1.5 percent in our Europe operating segment and by 0.4 percent in our Germany operating segment. In our Systems Solutions operating segment, revenue decreased by 5.2 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 4.3 percent.
- Adjusted EBITDA grew by 8.2 percent to EUR 11.5 billion.
- Due to the ongoing success of T-Mobile US, we generated an increase in adjusted EBITDA of 23.2 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 30.6 percent, the Groupʼs adjusted EBITDA margin increased slightly against the prior-year level of 30.0 percent. The EBITDA margin was 38.7 percent in Germany, 32.5 percent in Europe, and 27.6 percent in the United States.
- EBIT decreased by EUR 0.5 billion to EUR 5.6 billion.
- In the reporting period, EBIT included positive net special factors of EUR 0.5 billion, mainly attributable to the sale of Strato (EUR 0.5 billion) and further shares in Scout24 AG (EUR 0.2 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). Special factors in connection with staff-related measures amounted to EUR 0.2 billion, EUR 0.7 billion lower than the level reported in the prior-year period.
- At EUR 6.3 billion, depreciation, amortization and impairment losses were at the same level as in the prior-year period.
- Net profit decreased by EUR 2.1 billion to EUR 1.6 billion.
- Loss from financial activities increased by EUR 2.0 billion, mainly in connection with the EUR 1.1 billion impairment of our financial stake in BT recognized in profit and loss, as well as negative remeasurement effects from the exercise and subsequent measurement of embedded derivatives in T-Mobile US bonds.
- The tax expense of EUR 0.6 billion was EUR 0.4 billion lower than in the prior-year period. Profit attributable to non-controlling interests increased by EUR 0.1 billion.
- The equity ratio increased by 1.1 percentage points to 27.3 percent.
- Total assets decreased by EUR 7.0 billion compared with the end of 2016, largely due to exchange rate effects, primarily from the translation of U. S. dollars into euros, and the repayment of financial liabilities.
- Shareholdersʼ equity decreased slightly from EUR 38.8 billion at December 31, 2016 to EUR 38.6 billion. Profit after taxes of EUR 2.0 billion had an increasing effect. Shareholdersʼ equity was reduced by dividend payments to Deutsche Telekomʼs shareholders for the 2016 financial year (EUR 2.8 billion). The capital increase of EUR 1.4 billion carried out to grant our shareholders the option of converting their dividend entitlements into shares increased equity. Currency translation effects (EUR 1.2 billion) recognized directly in equity in particular also had a reducing effect.
- Cash capex (including spectrum investment) increased by EUR 6.9 billion to EUR 13.5 billion.
- In the reporting period, mobile spectrum licenses were acquired for a total of EUR 7.3 billion in the United States operating segment. Of this, EUR 7.2 billion was attributable to the spectrum auction that ended in April 2017. 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 0.7 billion, primarily in the Germany and United States 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 2.5 billion.
- The year-on-year increase of EUR 1.1 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 0.7 billion in cash capex (before spectrum investment) reduced free cash flow.
- Net debt increased from EUR 50.0 billion at the end of 2016 to EUR 55.2 billion.
- The increase was attributable to the spectrum acquisition (EUR 7.3 billion) and the dividend payments – including to non-controlling interests – (EUR 1.5 billion), which were only partially offset by the positive effects from free cash flow (EUR 2.5 billion) and the sale of Strato (EUR 0.6 billion) and further shares in Scout24 AG (EUR 0.3 billion). Exchange rate effects of EUR 1.7 billion also had a positive effect.
For a more detailed explanation, please refer to the section “Development of business in the Group".