sold off or given to NGOs. Staff costs were reduced as quickly as possible, using Government furlough schemes where available. Where there was no alternative, staff were transferred into different segments or let go;
In Benefits & Rewards Services, underlying operating profi t was down -26.9%, or -16.6% excluding currency impacts. At 26.2%, the margin was down -480 bps and -300 bps excluding the currency mix effect of the weakness in the Brazilian real. In the first half, the margin had started to recover strongly in the first half, as digital investments had started to plateau, and costs were being managed very strictly. The second half margin was impacted very significantly due to the lower merchant revenues generally due to the closure of restaurants, and the very competitive environment and falling interest rates in Brazil. As reimbursement was lower the float grew during the period.
Other operating income and expenses amounted to 503 million euro compared to 141 million euro in the previous year.
As part of the rigorous measures implemented during the sanitary crisis, the Group has taken pro active actions in anticipation of the end of government support programs in several countries, to reinforce its agility to adapt to the new business environment and to seize the related market opportunities. As a result, restructuring costs were increased substantially in the second half to 158 million euro, to reach a total of 191 million euro for the year, versus 46 million euro in the previous year.
Additionally, given the deterioration in the short and mid-term performance of some assets due to Covid-19, impairment of acquired intangible assets, goodwill and non-current assets in the second half were 249 million euro, principally linked to assets in the Sports & Leisure and Education segments.
| (in millions of euro) | H1 | S2 | FISCAL 2020 | FISCAL 2019 |
|---|---|---|---|---|
| UNDERLYING OPERATING PROFIT | UNDERLYING OPERATING PROFIT H1 685 | UNDERLYING OPERATING PROFIT S2 (116) | UNDERLYING OPERATING PROFIT FISCAL 2020 569 | UNDERLYING OPERATING PROFIT FISCAL 2019 1 200 |
| OTHER OPERATING INCOME | OTHER OPERATING INCOME H1 5 | OTHER OPERATING INCOME S2 2 | OTHER OPERATING INCOME FISCAL 2020 7 | OTHER OPERATING INCOME FISCAL 2019 11 |
| Gains related to consolidation scope changes | Gains related to consolidation scope changes H1 2 | Gains related to consolidation scope changes S2
| Gains related to consolidation scope changes FISCAL 2020 2 | Gains related to consolidation scope changes FISCAL 2019 9 |
| Gains on changes of post-employment benefits | Gains on changes of post-employment benefits H1 4 | Gains on changes of post-employment benefits S2 (2) | Gains on changes of post-employment benefits FISCAL 2020 2 | Gains on changes of post-employment benefits FISCAL 2019 1 |
| Other | Other H1 - | Other S2 3 | Other FISCAL 2020 3 | Other FISCAL 2019 1 |
| OTHER OPERATING EXPENSES | OTHER OPERATING EXPENSES H1 (71) | OTHER OPERATING EXPENSES S2 (439) | OTHER OPERATING EXPENSES FISCAL 2020 (510) | OTHER OPERATING EXPENSES FISCAL 2019 (152) |
| Restructuring and rationalization costs | Restructuring and rationalization costs H1 (33) | Restructuring and rationalization costs S2 (158) | Restructuring and rationalization costs FISCAL 2020 (191) | Restructuring and rationalization costs FISCAL 2019 (46) |
| Acquisition-related costs | Acquisition-related costs H1 (5) | Acquisition-related costs S2 (4) | Acquisition-related costs FISCAL 2020 (9) | Acquisition-related costs FISCAL 2019 (11) |
| Losses related to consolidation scope changes | Losses related to consolidation scope changes H1 (1) | Losses related to consolidation scope changes S2 (13) | Losses related to consolidation scope changes FISCAL 2020 (14) | Losses related to consolidation scope changes FISCAL 2019 - |
| Losses on changes of post-employment benefits | Losses on changes of post-employment benefits H1 (2) | Losses on changes of post-employment benefits S2 (2) | Losses on changes of post-employment benefits FISCAL 2020 (4) | Losses on changes of post-employment benefits FISCAL 2019 (4) |
| Amortization of acquired intangible assets and impairment of goodwill and non-current assets | Amortization of acquired intangible assets and impairment of goodwill and non-current assets H1 (20) | Amortization of acquired intangible assets and impairment of goodwill and non-current assets S2 (253) | Amortization of acquired intangible assets and impairment of goodwill and non-current assets FISCAL 2020 (273) | Amortization of acquired intangible assets and impairment of goodwill and non-current assets FISCAL 2019 (85) |
| Other | Other H1 (11) | Other S2 (8) | Other FISCAL 2020 (19) | Other FISCAL 2019 (6) |
| OTHER OPERATING INCOME AND EXPENSES | OTHER OPERATING INCOME AND EXPENSES H1 (66) | OTHER OPERATING INCOME AND EXPENSES S2 (437) | OTHER OPERATING INCOME AND EXPENSES FISCAL 2020 (503) | OTHER OPERATING INCOME AND EXPENSES FISCAL 2019 (141) |
| OPERATING PROFIT | OPERATING PROFIT H1 619 | OPERATING PROFIT S2 (553) | OPERATING PROFIT FISCAL 2020 65 | OPERATING PROFIT FISCAL 2019 1,059 |
As a result, the Operating Profit was 65 million euro compared to 1,059 million euro in the previous year.
Net financial expenses for the year rose to 291 million euro compared to 100 million euro in the previous year. The increase is principally due to 150 million euro make-whole for the reimbursement of the 1.4 billion euro USPP in the fourth quarter, first implementation of IFRS 16 for a total of 25 million euro in the year, a decline in interest income due to lower rates and some currency fluctuations. As a result of the two bond issues in euro in April and July (raising 2.5 billion euro) and the USPP reimbursement, the blended cost of debt at year end was 1.6% against 2.6% at the end of Fiscal 2019, and the average debt maturity is 5.7 years.
