Depreciation and amortisation, non-operating results
| In CHF million, except where indicated | 31.3.2019 | 31.3.2018 | Change | |||
|---|---|---|---|---|---|---|
| Operating income before depreciation and amortisation (EBITDA) | 1,119 | 1,058 | 5.8% | |||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (554) | (540) 1 | 2.6% | |||
| Depreciation of right-of-use assets | (60) | – | ||||
| Operating income (EBIT) | 505 | 518 | –2.5% | |||
| Net interest expense for financial assets and liabilities | (15) | (29) | –48.3% | |||
| Interest expense on lease liabilities | (8) | (6) | 33.3% | |||
| Other financial result | 3 | (6) | ||||
| Result of equity-accounted investees | 2 | (2) | ||||
| Income before income taxes | 487 | 475 | 2.5% | |||
| Income tax expense | (104) | (96) | 8.3% | |||
| Net income | 383 | 379 | 1.1% | |||
| Share of net income attributable to equity holders of Swisscom Ltd | 385 | 381 | 1.0% | |||
| Share of net income attributable to non-controlling interests | (2) | (2) | – | |||
| Earnings per share (in CHF) | 7.43 | 7.36 | 1.0% | |||
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1 Including depreciation of assets under finance leases of CHF 7 million.
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Due to the application of IFRS 16 "Leases" effective 1 January 2019, right-of-use assets are capitalised and depreciated. The depreciation of right-of-use assets amounted to CHF 60 million in the first quarter of 2019. The depreciation and amortisation of property, plant and equipment and intangible assets increased by CHF 14 million or 2.6% year-on-year to CHF 554 million, mainly reflecting an increase in depreciation and amortisation at Swisscom Switzerland. Net interest expense excluding leases declined from CHF 29 million to CHF 15 million as a result of lower average interest costs. Income tax expense was CHF 104 million (prior year: CHF 96 million), corresponding to an effective income tax rate of 21.4% (prior year: 20.2%). Swisscom’s net income increased by CHF 4 million or 1.1% to CHF 383 million, and earnings per share rose accordingly from CHF 7.36 to CHF 7.43.