Depreciation and amortisation, non-operating results
In CHF million, except where indicated |
2. quarter 2017 |
2. quarter 2016 |
Change |
1st half-year 2017 |
1st half-year 2016 |
Change |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income before depreciation and amortisation (EBITDA) | 1,187 | 1,146 | 3.6% | 2,260 | 2,227 | 1.5% | ||||||
| Depreciation, amortisation and impairment losses | (534) | (546) | –2.2% | (1,057) | (1,092) | –3.2% | ||||||
| Operating income (EBIT) | 653 | 600 | 8.8% | 1,203 | 1,135 | 6.0% | ||||||
| Net interest expense | (37) | (42) | –11.9% | (73) | (81) | –9.9% | ||||||
| Other financial income and expense, net | (12) | (24) | –50.0% | (25) | (64) | –60.9% | ||||||
| Share of results of associates | (2) | – | – | (3) | – | – | ||||||
| Income before income taxes | 602 | 534 | 12.7% | 1,102 | 990 | 11.3% | ||||||
| Income tax expense | (136) | (110) | 23.6% | (263) | (202) | 30.2% | ||||||
| Net income | 466 | 424 | 9.9% | 839 | 788 | 6.5% | ||||||
| Share of net income attributable to equity holders of Swisscom Ltd | 467 | 424 | 10.1% | 840 | 789 | 6.5% | ||||||
| Share of net income attributable to non-controlling interests | (1) | – | – | (1) | (1) | – | ||||||
| Earnings per share (in CHF) | 9.02 | 8.19 | 10.1% | 16.22 | 15.23 | 6.5% |
Depreciation and amortisation decreased by CHF 35 million or 3.2% to CHF 1,057 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 half of 2017 amounted to CHF 33 million (prior year: CHF 64 million).
Net interest expense was CHF 8 million lower at CHF 73 million as a result of the lower average interest costs for financial debt. At CHF 25 million, other net financial expense improved by CHF 39 million. Net financial expense in the previous year was affected by negative effects of CHF 42 million arising from the fair value adjustment of interest rate swaps.
Income tax expense amounted to CHF 263 million (prior year: CHF 202 million), corresponding to an effective income tax rate of 23.9% (prior year: 20.4%). The increase in the effective income tax rate is primarily attributable to the effects 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%.
Net income posted by Swisscom rose by CHF 51 million or 6.5% to CHF 839 million, largely due to the higher operating income. 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 15.23 to CHF 16.22.