Group Headquarters & Group Services

For more information on our Group Headquarters & Group Services segment, please refer to the section “Group organization,” and to Note 31 “Segment reporting” in the notes to the consolidated financial statements.

Group Headquarters & Group Services comprises all Group units that cannot be allocated directly to one of our operating segments.

DEVELOPMENT OF OPERATIONS

millions of €          
  2016 2015 Change Change % 2014
Total revenue 2,212 2,275 (63) (2.8) % 2,516
Profit (loss) from operations (EBIT) 1,001 (860) 1,861 n. a. (109)
Depreciation, amortization and impairment losses (521) (627) 106 16.9 % (671)
EBITDA 1,522 (233) 1,755 n. a. 562
Special factors affecting EBITDA 2,098 319 1,779 n. a. 1,229
EBITDA (adjusted for special factors) (576) (552) (24) (4.3) % (667)
Cash Capex (268) (342) 74 21.6 % (381)

Total revenue

Total revenue in our Group Headquarters & Group Services segment in 2016 decreased by 2.8 percent year-on-year. This was mainly due to revenues lost as a result of the sale of our online platform t-online.de and our digital marketing company InteractiveMedia in November 2015, as well as the realignment of our Group Innovation+ unit. In addition, we continued to optimize the use of land and buildings, which resulted in a decline in intragroup revenue. By contrast, we recorded a revenue increase in connection with the structural further development of our Multi-Shared Service Center.

EBITDA, adjusted EBITDA

Adjusted EBITDA in our Group Headquarters & Group Services segment decreased by EUR 24 million year-on-year in the reporting year, mainly due to income of EUR 175 million recorded in the first quarter of 2015 resulting from an agreement to settle a complaints procedure under anti-trust law. Excluding this one-time effect, adjusted EBITDA was up EUR 151 million compared with the prior year, primarily due to lower personnel costs as a result of the continued staff restructuring at Vivento, as well as lower operating expenses at our Group Services. The reversal of provisions, the realignment of our Group Innovation+ unit, and higher income from the real estate sales also had a positive effect. The following factors had a negative impact: lower revenues from land and buildings, reduced income from reimbursements in connection with the sale of our EE joint venture to the UK company BT in January 2016, and the loss of contributions as a result of the sale of t-online.de and InteractiveMedia.

Overall, positive special factors of EUR 2.1 billion affected EBITDA in 2016. These factors resulted primarily from the sale of our EE joint venture to the UK company BT, which was completed in January 2016. We generated income of some EUR 2.5 billion from this sale. The sales of shares in Scout24 AG in April and December 2016 also generated income of some EUR 0.1 billion. By contrast, EBITDA was negatively affected by expenses, especially for staff-related measures, of some EUR 0.5 billion in the reporting year. In 2015, the special factors, which totaled some EUR 0.3 billion, consisted primarily of income of around EUR 0.3 billion from the sale of shares in connection with the IPO of Scout24 AG and income of EUR 0.3 billion from the sale of our online platform t-online.de and our digital marketing company InteractiveMedia, offset by a negative effect on EBITDA in 2015 from expenses of some EUR 0.3 billion, especially for staff-related measures.

EBIT

The increase in EBIT by EUR 1.9 billion compared with 2015 is primarily attributable to income from the disposal of our EE joint venture recorded in 2016. Depreciation, amortization and impairment losses were down EUR 0.1 billion on the prior-year level, due in particular to lower depreciation and impairment losses on land and buildings as a result of our continued efforts to optimize our real estate portfolio.

Cash capex

Cash capex decreased year-on-year by EUR 74 million, due to the purchase of fewer vehicles and licenses.