Table:
|  | FY19 | FY18 |
| --- | --- | --- |
|  | $m | $m |
| Operating cashflow | 836.3 | 868.3 |
| Tax | (128.6) | (194.5) |
| IRU / finance lease payments | (5.5) | (34.1) |
| Capex - BAU | (198.7) | (258.0) |
| Capex - mobile spectrum | (352.4) | (597.3) |
| Capex - mobile networks (Aus) | (86.1) | (38.7) |
| Capex - mobile networks (Sg) | (80.1) | (62.3) |
| Free cashflow | (15.1) | (316.6) |
Paragraphs:
Free cashflow
The Group achieved another year of strong cashflow performance with operating cashflow for FY19 of $836.3m again exceeding EBITDA. Tax payments in FY19 were significantly lower than the prior year because FY18 included tax paid on the capital gain realised on the sale of investments in FY17.
Capital expenditure
Business as usual (‘BAU’) capital expenditure of $198.7m was $59.3m lower than last year principally due to the substantial completion in the prior year of the build for the VHA fibre contract.
Mobile spectrum capex of $352.4m in FY19 reflects the payment during the year of the second instalment for the Australian 700MHz spectrum acquired at auction in April 2017. The first instalment of $597.3m was paid in FY18 and the third and final instalment of $352.4m is payable in January 2020. A further $86.1m of capex was also incurred in FY19 in relation to the Australian mobile network rollout up until the project ceased. This expenditure on spectrum and mobile assets in Australia was partly impaired as part of the impairment review that was undertaken following the cessation of the project as described above.
Capex for the mobile network build in Singapore in FY19 was $80.1m taking the aggregate capex incurred on the project up to $147m (excluding spectrum).
Question:
Why was there a change in tax payments from FY18 to FY19?
Answer: Because FY18 included tax paid on the capital gain realised on the sale of investments in FY17.