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Cash flows


In CHF million
  1st half-year
2018
  1st half-year
2017
 
Change
Operating income before depreciation and amortisation (EBITDA)   2,143   2,260   (117)
Capital expenditure in property, plant and equipment and intangible assets   (1,069)   (1,057)   (12)
Change in defined benefit obligations   30   (24)   54
Change in net working capital and other cash flows from operating activities   (352)   (159)   (193)
Dividends paid to non-controlling interests   (1)   (8)   7
Operating free cash flow   751   1,012   (261)
Net interest paid   (17)   (21)   4
Income taxes paid   (272)   (235)   (37)
Free cash flow   462   756   (294)
Net expenditures for company acquisitions and disposals   (37)   (74)   37
Other cash flows from investing activities, net   16   10   6
Issuance and repayment of financial liabilities, net   687   441   246
Dividends paid to equity holders of Swisscom Ltd   (1,140)   (1,140)  
Other cash flows from financing activities   (5)   (6)   1
Net decrease in cash and cash equivalents   (17)   (13)   (4)

Free cash flow declined year-on-year by CHF 294 million to CHF 462 million, due to lower operating free cash flow. Operating free cash flow declined by CHF 261 million to CHF 751 million, fuelled by lower operating income before depreciation and amortisation as well as the higher net working capital. Net working capital increased by CHF 358 million compared to the end of 2017, mainly as a result of seasonal effects due to accruals for prepaid expenses for the financial year 2018 as well as lower trade payables. In the second quarter of 2017, the Swisscompension fund (comPlan) received a one-time payment of CHF 50 million as a result of the regulatory changes communicated in October 2016. Capital expenditure increased year-on-year by CHF 12 million or 1.1% to CHF 1,069 million.

In the first quarter of 2018, Swisscom issued a debenture bond for CHF 150 million. It has a coupon of 1.0% and matures in 2035. In addition, in April 2018 Swisscom issued a debenture bond for EUR 500 million. It has a coupon of 1.125% and matures in 2026. The funds received were applied to repay existing debt.