Group Development
The sale of T‑Mobile Netherlands was consummated on March 31, 2022. As such, T‑Mobile Netherlands has not been part of the Group since April 1, 2022. The contributions for the first quarter of 2022 are still included in operational development due to the cumulative view.
For further information on the closing of the transaction, please refer to the section “Group organization” and to the section “Changes in the composition of the Group and other transactions” in the consolidated financial statements.
On July 13, 2022, Deutsche Telekom reached an agreement with DigitalBridge and Brookfield on the sale of a 51.0 % stake in GD Towers, comprising its tower assets in Germany and Austria, assigned to the Group Development operating segment. This transaction was consummated on February 1, 2023. The GD Towers business entity has been recognized in the consolidated financial statements as a discontinued operation since the third quarter of 2022. According to the management approach, however, we continue to include the contributions by GD Towers in the management-relevant financial performance indicators explained here.
For further information on the agreement with DigitalBridge and Brookfield on GD Towers, and the presentation of GD Towers according to the management approach, please refer to the sections “Group organization” and “Management of the Group.”
Customer development
thousands |
|
|
|
|
|
|
|---|---|---|---|---|---|---|
|
|
Dec. 31, 2022 |
Dec. 31, 2021 |
Change |
Change |
Dec. 31, 2020 |
T‑Mobile Netherlands |
Mobile customers |
0 |
6,939 |
(6,939) |
(100.0) |
6,803 |
Fixed-network lines |
0 |
739 |
(739) |
(100.0) |
682 |
|
Broadband customers |
0 |
728 |
(728) |
(100.0) |
668 |
Development of operations
millions of € |
|
|
|
|
|
|
||
|---|---|---|---|---|---|---|---|---|
|
|
2022 |
2021 |
Change |
Change |
2020 |
||
Net revenue |
|
1,708 |
3,165 |
(1,457) |
(46.0) |
2,883 |
||
Of which: T‑Mobile Netherlands |
|
536 |
2,071 |
(1,535) |
(74.1) |
1,946 |
||
Of which: GD Towers |
|
1,154 |
1,112 |
42 |
3.8 |
989 |
||
Service revenue |
|
411 |
1,621 |
(1,210) |
(74.6) |
1,468 |
||
EBITDA |
|
2,106 |
1,790 |
316 |
17.7 |
1,343 |
||
Special factors affecting EBITDA |
|
992 |
173 |
819 |
n.a. |
(43) |
||
EBITDA (adjusted for special factors) |
|
1,113 |
1,618 |
(505) |
(31.2) |
1,386 |
||
Of which: T‑Mobile Netherlands |
|
201 |
757 |
(556) |
(73.4) |
639 |
||
Of which: GD Towers |
|
943 |
894 |
49 |
5.5 |
786 |
||
EBITDA AL |
|
1,956 |
1,479 |
477 |
32.3 |
1,058 |
||
Special factors affecting EBITDA AL |
|
992 |
173 |
819 |
n.a. |
(43) |
||
EBITDA AL (adjusted for special factors) |
|
964 |
1,307 |
(343) |
(26.2) |
1,101 |
||
Of which: T‑Mobile Netherlands |
|
190 |
668 |
(478) |
(71.6) |
554 |
||
Of which: GD Towers |
|
804 |
669 |
135 |
20.2 |
587 |
||
EBITDA AL margin (adjusted for special factors) |
% |
56.4 |
41.3 |
|
|
38.2 |
||
Depreciation, amortization and impairment losses |
|
(195) |
(706) |
511 |
72.4 |
(780) |
||
Profit (loss) from operations (EBIT) |
|
1,911 |
1,084 |
827 |
76.3 |
562 |
||
Cash capex |
|
(343) |
(572) |
229 |
40.0 |
(699) |
||
Cash capex (before spectrum investment) |
|
(343) |
(572) |
229 |
40.0 |
(499) |
||
|
||||||||
Net revenue, service revenue
Revenue in our Group Development operating segment decreased in the 2022 financial year by 46.0 % year-on-year to EUR 1.7 billion. In organic terms, revenue changed in the prior-year period due to the sale of T‑Mobile Netherlands as of March 31, 2022 and increased by 6.5 % year-on-year. This increase resulted from the operational and structural growth of our GD Towers business entity, which includes the German and Austrian cell tower business. The positive trend is down to an increase in the number of sites we have in Germany and was further strengthened by the Austrian cell tower business. Service revenue also decreased substantially due to the sale of T‑Mobile Netherlands. The GD Towers business does not generate any service revenues.
Adjusted EBITDA AL, EBITDA AL
Adjusted EBITDA AL decreased by 26.2 % to EUR 964 million. Here too, the decline was attributable to the sale of T‑Mobile Netherlands. In organic terms, adjusted EBITDA AL grew by 26.4 %. The GD Towers business posted consistent growth on the back of a rising number of cell tower sites and was further strengthened by the Austrian cell tower business. An operational increase in adjusted EBITDA AL was also achieved through revenue growth. Adjusted EBITDA AL was positively impacted by the suspension of the amortization of right-of-use assets due to the fact that the GD Towers business entity has been held for sale since July 13, 2022. EBITDA AL was positively influenced by net special factors of EUR 992 million, which mainly related to the gains on deconsolidation due to the sale of T‑Mobile Netherlands (EUR 0.9 billion) and the deconsolidation of DIV II (EUR 0.1 billion). EBITDA AL increased by EUR 477 million compared with the prior-year period to EUR 2.0 billion.
Profit/loss from operations (EBIT)
EBIT increased by EUR 0.8 billion year-on-year to EUR 1.9 billion, mainly as a result of the development described under EBITDA AL. Depreciation, amortization and impairment losses were down year-on-year, primarily in connection with the fact that T‑Mobile Netherlands had been held for sale until it was sold, and, accordingly, the related depreciation and amortization had been suspended, and its subsequent sale. In addition, depreciation and amortization were suspended for the GD Towers business entity, which has been held for sale since July 13, 2022.
Cash capex (before spectrum investment), cash capex
Cash capex was significantly down on the prior-year level at EUR 343 million and hence slightly below our expectations. The reduction is mainly due to the sale of T‑Mobile Netherlands and lower build-out investments made by GD Towers compared with the prior year.