Depreciation and amortisation, non-operating results
In CHF million, except where indicated |
2. quarter 2016 |
2. quarter 2015 |
Change |
1st half-year 2016 |
1st half-year 2015 |
Change |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income before depreciation and amortisation (EBITDA) | 1,146 | 1,082 | 5.9% | 2,227 | 2,133 | 4.4% | ||||||
| Depreciation, amortisation and impairment losses | (546) | (521) | 4.8% | (1,092) | (1,028) | 6.2% | ||||||
| Operating income (EBIT) | 600 | 561 | 7.0% | 1,135 | 1,105 | 2.7% | ||||||
| Net interest expense | (42) | (49) | –14.3% | (81) | (96) | –15.6% | ||||||
| Other financial income and expense, net | (24) | 16 | – | (64) | (41) | 56.1% | ||||||
| Share of results of associates | – | 8 | –100.0% | – | 13 | –100.0% | ||||||
| Income before income taxes | 534 | 536 | –0.4% | 990 | 981 | 0.9% | ||||||
| Income tax expense | (110) | (103) | 6.8% | (202) | (197) | 2.5% | ||||||
| Net income | 424 | 433 | –2.1% | 788 | 784 | 0.5% | ||||||
| Share of net income attributable to equity holders of Swisscom Ltd | 424 | 433 | –2.1% | 789 | 784 | 0.6% | ||||||
| Share of net income attributable to non-controlling interests | – | – | – | (1) | – | – | ||||||
| Earnings per share (in CHF) | 8.19 | 8.36 | –2.1% | 15.23 | 15.13 | 0.6% |
Swisscom’s depreciation and amortisation increased by CHF 64 million or 6.2% to CHF 1,092 million in comparison with the prior year, mainly reflecting an increase in depreciation and amortisation at Swisscom Switzerland because of the high capital expenditure level. Intangible assets resulting from company acquisitions were capitalised for purchase price allocation purposes. Depreciation and amortisation for the first half of 2016 includes scheduled amortisation of CHF 64 million (prior year: CHF 60 million) related to company acquisitions.
Net interest expense was CHF 15 million lower at CHF 81 million as a result of the lower average interest costs for financial debt. At CHF 64 million, other net financial expense rose by CHF 23 million compared to the previous year. The net financial expense for the first half of 2016 includes negative effects of CHF 42 million arising from the fair value adjustment of interest rate swaps (prior year: CHF 9 million) and foreign exchange gains of CHF 1 million (prior year: foreign exchange losses of CHF 34 million). The first half of the prior year also includes gains from the sale of subsidiaries in the amount of CHF 19 million.
Income tax expense amounted to CHF 202 million (prior year: CHF 197 million), corresponding to an effective income tax rate of 20.4% (prior year: 20.1%). Excluding non-recurring items, the long-term expectation continues to be that the income tax rate will be around 21%.
Swisscom’s net income rose by CHF 4 million or 0.5% to CHF 788 million. The increase in EBITDA was largely offset by higher depreciation and amortisation and higher net financial expense. Earnings per share is calculated based on the share of net income attributable to equity holders of Swisscom Ltd and the average number of shares outstanding. Earnings per share rose from CHF 15.13 to CHF 15.23.