Depreciation and amortisation, non-operating results

In CHF million, except where indicated   31.03.2021   31.03.2020   Change
Operating income before depreciation and amortisation (EBITDA)   1,124   1,111   1.2%
Depreciation and amortisation of property, plant and equipment and intangible assets   (538)   (537)   0.2%
Depreciation of right-of-use assets   (70)   (70)   –%
Operating income (EBIT)   516   504   2.4%
Net interest expense on financial assets and liabilities   (17)   (12)   41.7%
Interest expense on lease liabilities   (11)   (11)   –%
Gain from transactions with equity-accounted investees   207      
Other financial result   45   (14)    
Result of equity-accounted investees     1   –100.0%
Income before income taxes   740   468   58.1%
Income tax expense   (102)   (74)   37.8%
Net income   638   394   61.9%
Attributable to equity holders of Swisscom Ltd   638   395   61.5%
Attributable to non-controlling interests     (1)   –100.0%
Earnings per share (in CHF)   12.32   7.63   61.5%

Net income rose by 61.9% or CHF 244 million to CHF 638 million as a result of one-off effects in the financial result. This was mainly due to a shareholding that Fastweb transferred as a capital contribution to the newly established fibre-optic company FiberCop as part of the strategic partnership with TIM. This resulted in a revaluation of the participation of CHF 169 million, which was recognised in the income statement. In addition, Swisscom realised a gain of CHF 38 million on the sale of its investment in Belgacom International Carrier Services. Without the gains from the investments, net income would have increased by CHF 37 million. The increase in operating income of CHF 12 million and the improved other financial result of CHF 59 million were offset by higher interest expense of CHF 5 million and increased income tax expense of CHF 28 million. The improvement in the other financial result was due to the better foreign currency result and gains on the valuation of interest rate swaps. Income tax expense was CHF 102 million (prior year: CHF 74 million), corresponding to an effective income tax rate of 13.8% (prior year: 15.8%). Swisscom anticipates a future effective consolidated tax rate of about 19%.