Depreciation and amortisation, non-operating results
In CHF million, except where indicated |
3rd quarter 2017 |
3rd quarter 2016 |
Change |
1.1.– 30.9.2017 |
1.1.– 30.9.2016 |
Change |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income before depreciation and amortisation (EBITDA) | 1,094 | 1,080 | 1.3% | 3,354 | 3,307 | 1.4% | ||||||
| Depreciation, amortisation and impairment losses | (531) | (524) | 1.3% | (1,588) | (1,616) | –1.7% | ||||||
| Operating income (EBIT) | 563 | 556 | 1.3% | 1,766 | 1,691 | 4.4% | ||||||
| Net interest expense | (36) | (31) | 16.1% | (109) | (112) | –2.7% | ||||||
| Other financial income and expense, net | 16 | (5) | (9) | (69) | –87.0% | |||||||
| Share of results of associates | (3) | 1 | (6) | 1 | ||||||||
| Income before income taxes | 540 | 521 | 3.6% | 1,642 | 1,511 | 8.7% | ||||||
| Income tax expense | (110) | (112) | –1.8% | (373) | (314) | 18.8% | ||||||
| Net income | 430 | 409 | 5.1% | 1,269 | 1,197 | 6.0% | ||||||
| Share of net income attributable to equity holders of Swisscom Ltd | 430 | 410 | 4.9% | 1,270 | 1,199 | 5.9% | ||||||
| Share of net income attributable to non-controlling interests | – | (1) | –100.0% | (1) | (2) | –50.0% | ||||||
| Earnings per share (in CHF) | 8.30 | 7.91 | 4.9% | 24.52 | 23.15 | 5.9% |
Depreciation and amortisation decreased by CHF 28 million or 1.7% to CHF 1,588 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 nine months of 2017 amounted to CHF 41 million (prior year: CHF 85 million).
Net interest expense fell year-on-year by CHF 3 million to CHF 109 million. At CHF 9 million, other net financial expense improved by CHF 60 million. Net financial expense in the previous year was affected by negative effects of CHF 39 million arising from the fair value adjustment of interest rate swaps.
Income tax expense amounted to CHF 373 million (prior year: CHF 314 million), corresponding to an effective income tax rate of 22.7% (prior year: 20.8%). The increase in the effective income tax rate is primarily attributable to the effects of prior periods.
Net income posted by Swisscom rose by CHF 72 million or 6.0% to CHF 1,269 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 23.15 to CHF 24.52.