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Depreciation and amortisation, non-operating results


In CHF million, except where indicated
  2. quarter
2020
  2. quarter
2019
 
Change
  1st half-year
2020
  1st half-year
2019
 
Change
Operating income before depreciation and amortisation (EBITDA)   1,097   1,121   –2.1%   2,208   2,240   –1.4%
Depreciation and amortisation of property, plant and equipment and intangible assets   (541)   (550)   –1.6%   (1,078)   (1,097)   –1.7%
Depreciation of right-of-use assets   (77)   (69)   11.6%   (147)   (136)   8.1%
Operating income (EBIT)   479   502   –4.6%   983   1,007   –2.4%
Net interest expense on financial assets and liabilities   (18)   (16)   12.5%   (30)   (31)   –3.2%
Interest expense on lease liabilities   (11)   (7)   57.1%   (22)   (15)   46.7%
Other financial result   (38)   (28)   35.7%   (52)   (25)   108.0%
Result of equity-accounted investees   2         3   2   50.0%
Income before income taxes   414   451   –8.2%   882   938   –6.0%
Income tax expense   (72)   (54)   33.3%   (146)   (158)   –7.6%
Net income   342   397   –13.9%   736   780   –5.6%
Attributable to equity holders of Swisscom Ltd   343   397   –13.6%   738   782   –5.6%
Attributable to non-controlling interests   (1)         (2)   (2)   –%
                         
Earnings per share (in CHF)   6.62   7.66   –13.6%   14.25   15.10   –5.6%

Net income posted by Swisscom declined by CHF 44 million or 5.6% to CHF 736 million, largely due to the lower EBITDA. Earnings per share declined accordingly from CHF 15.10 to CHF 14.25. The depreciation and amortisation of property, plant and equipment and intangible assets decreased by CHF 19 million or 1.7% year-on-year to CHF 1,078 million, mainly reflecting a decrease in depreciation and amortisation at Swisscom Switzerland and the other operating segments. Net interest expenses excluding leasing remained practically stable compared to the previous year at CHF 30 million. The deterioration in other financial expenses to CHF 52 million resulted primarily from the present value adjustment of provisions. Income tax expense was CHF 146 million (prior year: CHF 158 million), corresponding to an effective income tax rate of 16.6% (prior year: 16.8%). Income tax expense for the first half of 2020 includes positive tax effects of CHF 20 million (previous year: CHF 33 million) as a result of the revaluation of deferred income tax items in connection with the Swiss tax reform. Swisscom anticipates a future effective consolidated tax rate of 19.5%.