Group profile

Deutsche Telekom is one of the world's leading integrated telecommunications companies, with some 151 million mobile customers, 30 million fixed-network lines, and more than 17 million broadband lines.

We provide fixed-network/broadband, mobile, Internet, and IPTV products and services for consumers, and information and communication technology (ICT ) solutions for business and corporate customers.

Deutsche Telekom operates in more than 50 countries. With a staff of some 228,000 employees throughout the world, we generated revenue of 62.7 billion euros in the 2014 financial year, more than 60 percent of it outside Germany.

So that we can continue to be successful, we are already evolving from a traditional telephone company into an entirely new kind of service company. Our core business, i.e., the operation and sale of networks and connections, remains the basis. But at the same time we are proactively committing to business areas that open up new growth opportunities for us.

We believe that economic, social and ecological perspectives can be reconciled. Sustainability underpins all of our business activities. The fact that we are the first DAX-30 company to introduce a quota for women in management, or that we cover our entire power requirements in Germany from regenerative sources are just two examples of this. In other words, we have a clearly defined objective: We want to be a business enterprise that delights its customers, creates value for its investors, and in which employees enjoy their work.

Group revenue increased considerably by 4.2 percent in the financial year 2014. The United States operating segment in particular contributed to this revenue trend as a result of the inclusion of MetroPCS since May of last year and continued strong customer additions. Our Germany operating segment sustained slight revenue losses. Decisions by regulatory authorities and competition-induced price reductions adversely affected our revenue in the Europe operating segment. The contribution to revenue made by our Systems Solutions segment decreased as a result of the realignment of the business model to generate sustainable growth.

Net profit/loss
Net profit increased substantially to  2.9 billion euros. The increase was due in particular to income from the sale of the Scout24 group totaling 1.7 billion euros. Income of some 0.4 billion euros from a transaction completed in the United States concerning the acquisition and exchange of mobile spectrum also had a positive effect. Expenses of some 0.3 billion euros from the decommissioning of the MetroPCS CDMA network had a negative effect. Impairment losses recognized on goodwill and other non-current assets were down by 0.7 billion euros year-on-year at 0.1 billion euros. This decrease was partially offset by a 0.4 billion euros increase in depreciation and amortization, especially in the United States operating segment.

You will find more detailed information on Telekom's financial data in our 2014 Annual Report.

The following graphic provides an overview of organizational structure of our Group, which we will explain below.

The organizational structure at a glance
The organizational structure at a glance

  • Germany: The Germany operating segment comprises all fixed-network and mobile activities in Germany. In addition, it provides intermediate telecommunications services for the Group's other operating segments.
  • United States: The United States operating segment combines all mobile activities in the U.S. market.
  • Europe: comprises all fixed-network and mobile operations of the national companies in Greece, Romania, Hungary, Poland, the Czech Republic, Croatia, the Netherlands, Slovakia, Austria, Albania, the F.Y.R.O. Macedonia, and Montenegro. The EE joint venture in the United Kingdom, which had previously been assigned to the Europe operating segment, was transferred to the Group Headquarters & Group Services segment as of January 1, 2014. In addition to consumer business, individual national companies also offer ICT  solutions to business customers. On May 30, 2014, we completed the acquisition of GTS Central Europe Group (GTS). Since then, GTS has been helping us to further develop the international business customer segment. The Europe operating segment also comprises the units International Carrier Sales & Solutions (ICSS), Group Technology, and the Global Network Factory (GNF): ICSS mainly provides intermediate  telecommunications services for other operating segments in our Group; Group Technology ensures efficient and customized provision of technologies, platforms, and services for mobile and fixed-network communications; and GNF designs and operates a global network for providing wholesale customers with voice and data communications.
     
  • Systems Solutions: Drawing on a global infrastructure of data centers and networks, the Systems Solutions operating segment operates information and communication technology (ICT ) systems for multinational corporations and public sector institutions. On this basis, T-Systems provides its customers with integrated solutions for the future of a connected business world and society. But it also offers small and medium-sized enterprises ICT  solutions for an increasingly complex digital world. The offering primarily includes services from the cloud, M2M and security solutions, complementary, highly standardized mobile and fixed-network products, as well as solutions for virtual collaboration and IT platforms. They form the basis for the digital business models of corporate customers.
  • Group Headquarters & Group Services: The Group Headquarters & Group Services segment comprises Service Headquarters and those subsidiaries of Deutsche Telekom AG that are not allocated to the operating segments.