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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.