Cash flows

Cash flows

In CHF million20142013Change
Operating income before depreciation and amortisation (EBITDA)4,4134,302111
Capital expenditure in property, plant and equipment and other intangible assets(2,436)(2,396)(40)
Change in net working capital and other cash flows from operating activities(117)72(189)
Operating free cash flow1,8601,978(118)
Net interest paid(235)(243)8
Income taxes paid(386)(278)(108)
Free cash flow1,2391,457(218)
Net cash outflow from acquisition of PubliGroupe 1(385)(385)
Other cash flows from investing activities, net147(152)299
Issuance and repayment of financial liabilities, net(265)37(302)
Dividends paid to equity holders of Swisscom Ltd(1,140)(1,140)
Other cash flows(19)(18)(1)
(Net decrease) Net increase in cash and cash equivalents(423)184(607)
1 Acquisition cost of CHF 474 million less remaining minority interests of CHF 8 million, acquired cash and cash equivalents of CHF 16 million and proceeds of CHF 65 million from sale of securities and media participations.
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Free cash flow dropped by CHF 218 million or 15.0% to CHF 1,239 million as a result of the lower operating free cash flow and higher income tax payments, which increased by CHF 108 million year-on-year to CHF 386 million.

The reduction of CHF 118 million or 6.0% in operating free cash flow to CHF 1,860 million is chiefly a result of the increase in net working capital, which could not be offset by the improvement in EBITDA and higher income from the sale of property, plant and equipment. After deducting payments already received, proceeds from the sale of real estate in 2014 amounted to CHF 85 million (prior year: 25 million). Net working capital grew by CHF 167 million compared to the end of 2013 (prior year: reduction of CHF 78 million), chiefly due to lower trade payables. Capital expenditure was CHF 40 million or 1.7% higher at CHF 2,436 million, mainly as a result of the expansion of network infrastructure in Switzerland.

In September 2014, ­Swisscom acquired PubliGroupe Ltd for a purchase price of CHF 474 million. Less the acquired cash and cash equivalents, the deferred payment of the purchase price for outstanding shares and the sale of securities and media interests, the net outflow for this transaction amounted to CHF 385 million. Total dividends paid by ­Swisscom to its shareholders in 2014 remained unchanged from the prior year at CHF 1,140 million.