Key performance indicators for financial performance
| Key performance indicator | Definition |
|---|---|
| Revenue | Revenue is defined according to IFRS Accounting Standards. |
| EBITDA after lease expense (EBITDAaL) | EBITDAaL is measured based on operating income before depreciation and amortisation (EBITDA) less lease expense. Treating lease expense as operating costs leads to more relevant management metrics due to industry-specific lease relationships (towers, connection lines) and improves comparability with other telecommunications companies. |
| Capital expenditure (CAPEX) | CAPEX refers to investments in property, plant and equipment, and intangible assets. Investments in financial assets and participations, as well as additions of rights-of-use assets from lease arrangements, are not included in CAPEX. |
| Operating free cash flow (OpFCF) | OpFCF is derived from EBITDAaL less CAPEX. It does not include changes in operating net working capital or payments of income taxes and interest. |
Key financial performance indicators are adjusted for one-off income and expenses. The definition of adjustments and how they are reconciled to the consolidated accounts are presented in the section on alternative performance measures (APM). Another important key indicator for assessing the overall financial performance of the Swisscom Group is consolidated net income.