Depreciation and amortisation, non-operating results
| In CHF million, except where indicated | 31.03.2020 | 31.03.2019 | Change | |||
|---|---|---|---|---|---|---|
| Operating income before depreciation and amortisation (EBITDA) | 1,111 | 1,119 | –0.7% | |||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (537) | (547) | –1.8% | |||
| Depreciation of right-of-use assets | (70) | (67) | 4.5% | |||
| Operating income (EBIT) | 504 | 505 | –0.2% | |||
| Net interest expense on financial assets and liabilities | (12) | (15) | –20.0% | |||
| Interest expense on lease liabilities | (11) | (8) | 37.5% | |||
| Other financial result | (14) | 3 | ||||
| Result of equity-accounted investees | 1 | 2 | –50.0% | |||
| Income before income taxes | 468 | 487 | –3.9% | |||
| Income tax expense | (74) | (104) | –28.8% | |||
| Net income | 394 | 383 | 2.9% | |||
| Share of net income attributable to equity holders of Swisscom Ltd | 395 | 385 | 2.6% | |||
| Share of net income attributable to non-controlling interests | (1) | (2) | –50.0% | |||
| Earnings per share (in CHF) | 7.63 | 7.43 | 2.7% |
The depreciation and amortisation of property, plant and equipment and intangible assets decreased by CHF 10 million or 1.8% year-on-year to CHF 537 million, mainly reflecting a decrease in depreciation and amortisation at Swisscom Switzerland and the Other Operating Segments. Net interest expense excluding leases declined from CHF 15 million to CHF 12 million as a result of lower average interest expense. Income tax expense was CHF 74 million (prior year: CHF 104 million), corresponding to an effective income tax rate of 15.8% (prior year: 21.4%). Income tax expense for the first quarter of 2020 includes positive tax effects of CHF 19 million as a result of the revaluation of deferred income tax items due to lower income tax rates. Swisscom anticipates a future effective consolidated tax rate of 19.5%. As a result of the lower income tax expense, Swisscom’s net income increased by CHF 11 million or 2.9% to CHF 394 million, and earnings per share rose accordingly from CHF 7.43 to CHF 7.63.