Cash flows

In CHF million
  1st half-year
  1st half-year
Operating income before depreciation and amortisation (EBITDA)   2,260   2,227   33
Capital expenditure   (1,057)   (1,193)   136
Proceeds from sale of tangible and other intangible assets   2   19   (17)
Change in defined benefit obligations   (24)   31   (55)
Change in net working capital and other cash flow from operating activities   (161)   (288)   127
Dividends paid to non-controlling interests   (8)   (8)  
Operating free cash flow   1,012   788   224
Net interest paid   (21)   (18)   (3)
Income taxes paid   (235)   (257)   22
Free cash flow   756   513   243
Other cash flows from investing activities   (52)     (52)
Issuance and repayment of financial liabilities, net   441   730   (289)
Dividends paid to equity holders of Swisscom Ltd   (1,140)   (1,140)  
Other cash flows from financing activities   (18)   (33)   15
(Net decrease) Net increase in cash and cash equivalents   (13)   70   (83)

Free cash flow increased year-on-year by CHF 243 million to CHF 756 million, mainly due to higher operating free cash flow. Operating free cash flow rose by CHF 224 million to CHF 1,012 million. This increase was mainly due to the payment of the Competition Commission penalty as part of the ongoing proceedings regarding broadband services in the prior year. Swisscom does not consider the sanction justified and has lodged an appeal with the Federal Court. Swisscom paid the penalty of CHF 186 million in the first quarter of 2016, as no suspensive effect was granted. Excludingthis payment, operating free cash flow rose by CHF 38 million versus the previous year, due primarily to lower capital expenditure. Capital expenditure decreased by CHF 136 million or 11.4% to CHF 1,057 million compared to the previous year, largely due to delays in network expansion by Swisscom Switzerland. In the second quarter of 2017, the Swisscom pension fund (comPlan) received a one-time payment of CHF 50 million as a result of the regulatory changes communicated in October 2016.

In the second quarter of 2017, Swisscom issued a debenture bond with a nominal amount of CHF 350 million. The coupon amounts to 0.375% and has a term of 10 years. The funds raised were used to repay existing debts.