Depreciation and amortisation, non-operating results

In CHF million, except where indicated   31.03.2022   31.03.2021   Change
Operating income before depreciation and amortisation (EBITDA)   1,137   1,124   1.2%
Depreciation and amortisation of property, plant and equipment and intangible assets   (522)   (538)   –3.0%
Depreciation of right-of-use assets   (66)   (70)   –5.7%
Operating income (EBIT)   549   516   6.4%
Net interest expense on financial assets and liabilities   (15)   (17)   –11.8%
Interest expense on lease liabilities   (11)   (11)   –%
Gain from transactions with equity-accounted investees     207   –100.0%
Other financial result   28   45   –37.8%
Result of equity-accounted investees   (1)      
Income before income taxes   550   740   –25.7%
Income tax expense   (103)   (102)   1.0%
Net income   447   638   –29.9%
Attributable to equity holders of Swisscom Ltd   447   638   –29.9%
Attributable to non-controlling interests        
Earnings per share (in CHF)   8.63   12.32   –30.0%

At CHF 447 million, net income was 29.9% or CHF 191 million lower than in the prior year. Earnings per share fell accordingly from CHF 12.32 to CHF 8.63. This decline in net income was due to positive non-recurring items in the prior year’s financial result. These include the transfer of a participation of Fastweb and the sale of Swisscom’s participation in Belgacom International Carrier Services. Without these non-recurring items, net income would have increased.

Operating income (EBIT) increased by 6.4% or CHF 33 million to CHF 549 million. This was attributable to higher operating income before depreciation and amortisation (EBITDA) and lower depreciation and amortisation. The decrease in depreciation and amortisation of property, plant and equipment, intangible assets and right-of-use assets is mainly due to the lower CHF/EUR exchange rate. The prior year’s financial result includes gains of CHF 207 million from transactions with equity-accounted investees. As part of its strategic partnership with TIM, Fastweb transferred its stake in Flash Fiber as a capital contribution to the newly established fibre-optic company FiberCop. This resulted in an upward revaluation of the participation recognised in the income statement of CHF 169 million. In addition, Swisscom realised a gain of CHF 38 million on the sale of its investment in Belgacom International Carrier Services. Income tax expense stood at CHF 103 million (prior year: CHF 102 million), which corresponds to an effective income tax rate of 18.7% (prior year: 13.8%).