Depreciation and amortisation, non-operating results
In CHF million, except where indicated |
3. quarter 2020 |
3. quarter 2019 |
Change |
1.1.–30.9. 2020 |
1.1.–30.9. 2019 |
Change |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income before depreciation and amortisation (EBITDA) | 1,148 | 1,120 | 2.5% | 3,356 | 3,360 | –0.1% | ||||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (538) | (529) | 1.7% | (1,616) | (1,626) | –0.6% | ||||||
| Depreciation of right-of-use assets | (70) | (69) | 1.4% | (217) | (205) | 5.9% | ||||||
| Operating income (EBIT) | 540 | 522 | 3.4% | 1,523 | 1,529 | –0.4% | ||||||
| Net interest expense on financial assets and liabilities | (20) | (13) | 53.8% | (50) | (44) | 13.6% | ||||||
| Interest expense on lease liabilities | (12) | (9) | 33.3% | (34) | (24) | 41.7% | ||||||
| Other financial result | 23 | (26) | –% | (29) | (51) | –43.1% | ||||||
| Result of equity-accounted investees | 1 | (1) | –% | 4 | 1 | 300.0% | ||||||
| Income before income taxes | 532 | 473 | 12.5% | 1,414 | 1,411 | 0.2% | ||||||
| Income tax expense | (102) | (72) | 41.7% | (248) | (230) | 7.8% | ||||||
| Net income | 430 | 401 | 7.2% | 1,166 | 1,181 | –1.3% | ||||||
| Attributable to equity holders of Swisscom Ltd | 431 | 401 | 7.5% | 1,169 | 1,183 | –1.2% | ||||||
| Attributable to non-controlling interests | (1) | – | –% | (3) | (2) | 50.0% | ||||||
| Earnings per share (in CHF) | 8.32 | 7.74 | 7.5% | 22.57 | 22.84 | –1.2% |
Net income posted by Swisscom declined by CHF 15 million or 1.3% to CHF 1,166 million, largely due to the higher income tax expense. Earnings per share declined accordingly from CHF 22.84 to CHF 22.57. The depreciation and amortisation of property, plant and equipment and intangible assets decreased by CHF 10 million or 0.6% year on year to CHF 1,616 million, mainly reflecting a decrease in depreciation and amortisation at Swisscom Switzerland and the Other Operating Segments. Higher interest expense was offset by an improved other financial result. The other financial result for the third quarter of 2020 includes one-off income of CHF 31 million from the measurement difference of financial assets that have been replaced. Income tax expense was CHF 248 million (prior year: CHF 230 million), corresponding to an effective income tax rate of 17.5% (prior year: 16.3%). Income tax expense for the first nine months of 2020 includes positive tax effects of CHF 21 million (previous year: CHF 62 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%.