Annual Report 2013

Overview of the 2013 financial year.

Net revenue.

  • Net revenue increased by 3.4 percent.
  • The United States operating segment in particular contributed to this revenue trend as a result of the inclusion of MetroPCS since May 1, 2013 and continued strong customer additions.
  • Revenue in the Europe operating segment continues to be negatively affected by a persistently difficult economic environment, significant regulation-induced price adjustments and high competitive pressure.
  • Adjusted for changes in the composition of the Group and negative exchange rate effects, net revenue increased by EUR 0.3 billion year-on-year.
G 05
Net revenue.
billions of €
Net revenue

Adjusted EBITDA.a

  • Adjusted EBITDA decreased by 3.1 percent.
  • Positive impact: the focus on high-value revenue in connection with TV services and mobile data revenues.
  • Negative impact: negative exchange rate effects of EUR 0.2 billion, higher market investments in the United States, fixed-network lines lost to competitors, price changes imposed by regulatory authorities, special levies, and national austerity programs. The negative effects were only partially offset by our comprehensive cost management.
G 06
Adjusted EBITDA.a
billions of €
Adjusted EBITDA

Net profit/loss.a

  • Net profit increased by EUR 6.3 billion.
  • Net profit was increased by lower depreciation, amortization and impairment losses, attributable in particular to the impairment loss of around EUR 7.4 billion after taxes recognized on goodwill, other intangible assets and property, plant and equipment at T-Mobile USA in the third quarter of 2012 and lower depreciation due to the expiry of the economic useful life of parts of the outside plant in the Germany operating segment.
  • Adjusted net profit increased from EUR 2.5 billion to EUR 2.8 billion.
G 07
Net profit/loss.a
billions of €
Net profit/loss

Equity ratio.a

  • Total assets increased by 9.5 percent, in particular due to the first-time inclusion of MetroPCS.
  • Shareholders’ equity increased by 5.0 percent to EUR 32.1 billion. This increase was primarily attributable to the first-time inclusion of MetroPCS (EUR 2.0 billion), net profit (EUR 0.9 billion) and the capital increase (EUR 1.1 billion) carried out to grant shareholders the possibility of exchanging their dividend entitlements for shares (dividend in kind). Dividend payments for the 2012 financial year to Deutsche Telekom AG shareholders (EUR 3.0 billion), in particular, had an offsetting effect.
  • The equity ratio decreased to 27.1 percent, thus remaining within our target range of 25 to 35 percent.
G 08
Equity ratio.a
Equity ratio

For a more detailed explanation, please refer to the section “Development of business in the Group”.

a The prior-year comparatives were adjusted retrospectively due to the application of IAS 19 (amended) as of January 1, 2013. ROCE was only adjusted for 2012.
b And before AT&T transaction and compensation payments for MetroPCS employees.