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Depreciation and amortisation, non-operating results


In CHF million, except where indicated
  3. quarter
2022
  3. quarter
2021
 
Change
  1.1.–30.9.
2022
  1.1.–30.9.
2021
 
Change
Operating income before depreciation and amortisation (EBITDA)   1,150   1,148   0.2%   3,341   3,465   –3.6%
Depreciation and amortisation of property, plant and equipment and intangible assets   (525)   (527)   –0.4%   (1,583)   (1,614)   –1.9%
Depreciation of right-of-use assets   (67)   (70)   –4.3%   (201)   (211)   –4.7%
Operating income (EBIT)   558   551   1.3%   1,557   1,640   –5.1%
Net interest expense on financial assets and liabilities   (13)   (13)   –%   (46)   (46)   –%
Interest expense on lease liabilities   (11)   (11)   –%   (33)   (33)   –%
Other financial result   (10)         32   217   –85.3%
Result of equity-accounted investees   (1)   (1)   –%   (2)   (5)   –60.0%
Income before income taxes   523   526   –0.6%   1,508   1,773   –14.9%
Income tax expense   (94)   (36)   161.1%   (294)   (237)   24.1%
Net income   429   490   –12.4%   1,214   1,536   –21.0%
Attributable to equity holders of Swisscom Ltd   429   490   –12.4%   1,213   1,535   –21.0%
Attributable to non-controlling interests       –%   1   1   –%
                         
Earnings per share (in CHF)   8.28   9.46   –12.5%   23.42   29.63   –21.0%

Net income fell by 21.0% or CHF 322 million to CHF 1,214 million as a result of non-recurring items in EBITDA, in the financial result and in the income tax expense. Provisions for legal proceedings of CHF 82 million were recognised in EBITDA for the current year. The previous year’s EBITDA includes one-off income from the adjustment of pension liabilities in the amount of CHF 60 million and the recognition of provisions for legal proceedings in the amount of CHF 52 million. The non-recurring items in the financial result originate from the previous year. 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 investment of CHF 169 million 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. The tax expense in 2021 was positively impacted by the capitalisation of deferred tax assets in connection with a change in Italian tax laws. If it were not for these non-recurring items, net income would have been higher.