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Depreciation and amortisation, non-operating results


In CHF million, except where indicated
  2. quarter
2021
  2. quarter
2020
 
Change
  1st half-year
2021
  1st half-year
2020
 
Change
Operating income before depreciation and amortisation (EBITDA)   1,193   1,097   8.8%   2,317   2,208   4.9%
Depreciation and amortisation of property, plant and equipment and intangible assets   (549)   (541)   1.5%   (1,087)   (1,078)   0.8%
Depreciation of right-of-use assets   (71)   (77)   –7.8%   (141)   (147)   –4.1%
Operating income (EBIT)   573   479   19.6%   1,089   983   10.8%
Net interest expense on financial assets and liabilities   (16)   (18)   –11.1%   (33)   (30)   10.0%
Interest expense on lease liabilities   (11)   (11)   –%   (22)   (22)   –%
Other financial result   (35)   (38)   –7.9%   217   (52)    
Result of equity-accounted investees   (4)   2       (4)   3    
Income before income taxes   507   414   22.5%   1,247   882   41.4%
Income tax expense   (99)   (72)   37.5%   (201)   (146)   37.7%
Net income   408   342   19.3%   1,046   736   42.1%
Attributable to equity holders of Swisscom Ltd   407   343   18.7%   1,045   738   41.6%
Attributable to non-controlling interests   1   (1)       1   (2)    
                         
Earnings per share (in CHF)   7.86   6.62   18.7%   20.17   14.25   41.5%

Net income increased by 42.1% or CHF 310 million to CHF 1,046 million, mainly as a result of non-recurring items in EBITDA and the financial result. EBITDA for the second quarter of 2021 includes one-off income from the adjustment of pension liabilities in the amount of CHF 60 million as well as the additions to provisions for litigation in the amount of CHF 22 million. The non-recurring items in the financial result originate from the first quarter of 2021. As part of its strategic partnership with TIM, Fastweb transferred its stake in FlashFiber 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 201 million (previous year CHF 146 million), which corresponds to an effective income tax rate of 16.1% (previous year 16.6%). Swisscom anticipates a future effective consolidated tax rate of about 19%.