Depreciation and amortisation, non-operating results
| In CHF million, except where indicated | 2019 | 2018 | Change | |||
|---|---|---|---|---|---|---|
| Operating income before depreciation and amortisation (EBITDA) | 4,358 | 4,213 | 3.4% | |||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (2,166) | (2,144) | 1.0% | |||
| Depreciation of right-of-use assets | (282) | – | ||||
| Operating income (EBIT) | 1,910 | 2,069 | –7.7% | |||
| Net interest expense for financial assets and liabilities | (62) | (104) | –40.4% | |||
| Interest expense on lease liabilities | (42) | (24) | 75.0% | |||
| Other financial result | (54) | (30) | 80.0% | |||
| Result of equity-accounted investees | (28) | 5 | ||||
| Income before income taxes | 1,724 | 1,916 | –10.0% | |||
| Income tax expense | (55) | (395) | –86.1% | |||
| Net income | 1,669 | 1,521 | 9.7% | |||
| Share of net income attributable to equity holders of Swisscom Ltd | 1,672 | 1,527 | 9.5% | |||
| Share of net income attributable to non-controlling interests | (3) | (6) | –50.0% | |||
| Earnings per share (in CHF) | 32.28 | 29.48 | 9.5% |
Due to the application of IFRS 16 Leases as of 1 January 2019, right-of-use assets are recognised and depreciated. In 2019, the depreciation of right-of-use assets amounted to CHF 282 million. The depreciation and amortisation of property, plant and equipment and intangible assets increased by CHF 22 million or 1.0% year-on-year to CHF 2,166 million, mainly reflecting an increase in depreciation and amortisation at Swisscom Switzerland and at Fastweb. Net interest expense excluding lease fell from CHF 104 million to CHF 62 million as a result of lower average interest costs. Negative effects of CHF 23 million from the change in the fair value of interest rate swaps and foreign exchange losses of CHF 12 million impacted the other financial result in 2019. Income tax expense amounted to CHF 55 million (prior year: CHF 395 million) as a result of the positive tax effects related to the adoption of the Swiss tax reform. Swisscom’s net income increased by CHF 148 million or 9.7% to CHF 1,669 million, and earnings per share rose accordingly from CHF 29.48 to CHF 32.28.