Selected financial data of the Group
Net revenuea, b
- Net revenue increased by 6.9 % to EUR 84.6 billion. In organic terms, it increased by 0.6 %. Service revenue increased by 11.0 % to EUR 68.2 billion; in organic terms, the increase was 4.0 %.
- Revenue growth in the United States of 12.4 % was mainly attributable to exchange rate effects. In organic terms, revenue was down 0.5 % against the prior year.
- Our Germany segment increased revenue by 2.2 %, on the back of strong business performance.
- In the Europe segment, revenue declined by 1.7 % due to the sale of the Romanian fixed-network business as of September 30, 2021, but grew on an organic basis by 4.5 %.
- Revenue in Systems Solutions remained almost stable at the prior-year level.
- In Group Development, revenue declined by 40.0 % due to the sale of T‑Mobile Netherlands as of March 31, 2022, but was up 6.3 % against the prior year on an organic basis.
billions of €
EBITDA AL (adjusted for special factors)a
- Adjusted EBITDA AL grew by 6.8 % to EUR 30.2 billion. In organic terms, it increased by 0.7 %.
- In the United States, adjusted EBITDA AL increased by 11.5 %, mainly due to exchange rate effects. In organic terms, it decreased by 1.2 %. Adjusted core EBITDA AL grew by 20.9 % to EUR 18.1 billion.
- In our Germany segment, adjusted EBITDA AL was up 3.2 %, driven by high-value revenue growth and enhanced cost efficiency.
- Adjusted EBITDA AL in the Europe segment decreased by 1.3 %, but increased by 3.9 % in organic terms.
- In Systems Solutions, adjusted EBITDA AL grew by 13.9 %, due to efficiency effects from our transformation program and revenue increases in the growth areas.
- The sale of T‑Mobile Netherlands as of March 31, 2022 resulted in a decrease of 24.1 % in adjusted EBITDA AL in Group Development. In organic terms, it increased by 21.1 %.
- At 35.7 %, the Group’s adjusted EBITDA AL margin remained at the same high level posted in the prior year. The adjusted EBITDA AL margin was 40.6 % in the Germany segment, 36.4 % in the Europe segment, and 34.5 % in the United States segment.
billions of €
Profit/loss from operations (EBIT)a
- EBIT increased by 13.2 % to EUR 12.1 billion.
- EBITDA AL grew by 2.9 % to EUR 27.1 billion. Special factors had a negative effect of EUR 3.2 billion. Deconsolidations, acquisitions, and disposals resulted in expenses totaling EUR 1.6 billion. Expenses for staff restructuring amounted to EUR 0.9 billion. In addition, impairment losses of EUR 0.3 billion were recognized on right-of-use assets, and other special factors affecting EBITDA AL were recognized in the same amount. In the prior-year period, the special factors affecting EBITDA AL totaled EUR -2.0 billion.
- At EUR 21.4 billion, depreciation, amortization and impairment losses were 3.5 % higher than in the prior-year period, with depreciation and amortization decreasing slightly by EUR 0.1 billion. Impairment losses increased to EUR 0.9 billion and were mainly attributable to the former Sprint’s fiber-optic-based wireline assets.
billions of €
Net profit
- Net profit increased substantially by 88.6 % to EUR 7.0 billion.
- Our loss from financial activities decreased by EUR 1.1 billion to EUR 2.6 billion, with other financial income/expense improving in particular in connection with the measurement of derivatives. The interest component from the measurement of provisions and liabilities increased by EUR 0.5 billion. By contrast, finance costs increased by EUR 0.4 billion.
- Tax expense increased by EUR 0.1 billion to EUR 1.8 billion.
- Profit attributable to non-controlling interests decreased by EUR 0.9 billion to EUR 0.7 billion, a trend mainly attributable to the United States segment.
- Adjusted earnings per share rose from EUR 0.97 to EUR 1.43.
billions of €
Equity ratio
- The equity ratio increased by 0.5 percentage points against December 31, 2021 to 29.4 %.
- The increase in shareholders’ equity from EUR 81.5 billion to EUR 94.5 billion is primarily attributable to profit of EUR 7.7 billion and to other comprehensive income of EUR 12.4 billion. This mainly includes effects from currency translations (EUR 10.8 billion) and the remeasurement of defined benefit plans (EUR 1.8 billion).
- Shareholders’ equity was reduced in particular by the dividend payments to our shareholders (EUR 3.2 billion) and other shareholders of subsidiaries (EUR 0.2 billion), as well as the purchase of T‑Mobile US shares to further increase the stake in T‑Mobile US (EUR 2.7 billion). The sale of T‑Mobile Netherlands reduced shareholders’ equity (EUR 0.6 billion).
%
Net debtc
- Net debt increased by EUR 19.6 billion to EUR 151.7 billion compared with the end of 2021.
- The increase was attributable in particular to exchange rate effects of EUR 15.7 billion, as well as to the modification of the arrangements between T‑Mobile US and Crown Castle, which resulted in an increase of EUR 6.6 billion in right-of-use assets and of EUR 0.8 billion in property, plant and equipment. This effect is mirrored by growth in net debt of EUR 7.4 billion. Additions of lease liabilities and right-of-use assets (EUR 3.9 billion), the dividend payment – including to non-controlling interests – (EUR 3.4 billion), spectrum acquisitions primarily in the United States (EUR 3.1 billion), and the increase of the stake in T‑Mobile US (EUR 2.2 billion) also had an increasing effect.
- The main factors reducing net debt were free cash flow (before dividend payments and spectrum investment) of EUR 12.3 billion and the corporate transactions involving T‑Mobile Netherlands and GlasfaserPlus totaling EUR 4.7 billion.
billions of €
Cash capex (before spectrum investment)
- Cash capex (before spectrum investment) increased by 17.7 % to EUR 15.2 billion.
- This increase is largely attributable to the ongoing 5G network build-out in the United States and exchange rate effects.
- Cash capex (including spectrum investment) decreased by 14.4 % to EUR 18.2 billion. Spectrum licenses were purchased for EUR 3.0 billion in the reporting period, in particular FCC mobile licenses in the United States segment. In the prior-year period, cash capex had included the cash outflows for mobile licenses – primarily at the C-band auction in the United States segment – totaling EUR 8.3 billion.
billions of €
Free cash flow AL (before dividend payments and spectrum investment)
- Free cash flow AL increased by 13.9 % to EUR 9.4 billion.
- The basis for this increase was the strong business performance in the operating segments. The decrease of EUR 1.7 billion in the principal portion of repayment of lease liabilities also had a positive effect.
- By contrast, higher cash capex (before spectrum investment), higher cash outflows in connection with the integration of Sprint in the United States, and an increase of EUR 0.2 billion in net interest payments had a decreasing effect.
billions of €
For a reconciliation for the organic development of key figures for the prior-year comparative period, please refer to the section “Additional information.”
For further information, please refer to the section “Development of business in the Group” in the interim Group management report.
For further information on the development of business in the operating segments, please refer to the section “Development of business in the operating segments” in the interim Group management report and to the IR back-up on our Investor Relations website.
a aSince the third quarter of 2022, the GD Towers entity, which operates the cell tower business in Germany and Austria, currently assigned to the Group Development operating segment, has been recognized in the interim consolidated financial statements as a discontinued operation. 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 information on the agreement with DigitalBridge and Brookfield on GD Towers, please refer to the section “Group organization, strategy, and management” in the interim Group management report and the section “Changes in the composition of the Group and other transactions” in the interim consolidated financial statements.
b bThe prior-year comparatives were adjusted retrospectively to take account of changes to the principal/agent policy regarding the recognition of gross and net revenues as of the third quarter of 2022. For further information, please refer to the section “Development of business in the Group” in the interim Group management report and the section “Accounting policies” in the interim consolidated financial statements.
c cIncluding net debt included under liabilities directly associated with non-current assets and disposal groups held for sale.