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Depreciation and amortisation, non-operating results

In CHF million, except where indicated   31.3.2017   31.3.2016   Change
Operating income before depreciation and amortisation (EBITDA)   1,073   1,081   –0.7%
Depreciation, amortisation and impairment losses   (523)   (546)   –4.2%
Operating income (EBIT)   550   535   2.8%
Net interest result   (36)   (39)   –7.7%
Other financial income and expense, net   (13)   (40)   –67.5%
Share of results of associates   (1)      
Income before income taxes   500   456   9.6%
Income tax expense   (127)   (92)   38.0%
Net income   373   364   2.5%
Share of net income attributable to equity holders of Swisscom Ltd   373   365   2.2%
Share of net income attributable to non-controlling interests     (1)    
             
Earnings per share (in CHF)   7.20   7.05   2.1%

Depreciation and amortisation decreased by CHF 23 million or 4.2% to CHF 523 million in comparison with the previous year, mainly reflecting the lower amortisation of intangible assets related to company takeovers. The scheduled amortisation relating to company takeovers for the first quarter of 2017 amounted to CHF 19 million (prior year: CHF 35 million).

Net interest expense was CHF 3 million lower at CHF 36 million as a result of the lower average interest costs for financial debt. At CHF 13 million, other net financial expense fell by CHF 27 million. Net financial expense in the previous year was affected by negative effects of CHF 26 million arising from the fair value adjustment of interest rate swaps.

Income tax expense amounted to CHF 127 million (prior year: CHF 92 million), corresponding to an effective income tax rate of 25.4% (prior year: 20.2%). The increase in the effective income tax rate is primarily attributable to the effect of income taxes of prior periods. Excluding non-recurring items, the long-term expectation continues to be that the income tax rate will remain at a level of around 21%.

Swisscom’s net income rose by CHF 9 million or 2.5% to CHF 373 million. 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 7.05 to CHF 7.20.