OIBDA or also called operating income before depreciation and amortization is a financial measure used to represent specific type of an income. There are many types of income and each of those has some advantages and disadvantages. In the practice all the kinds of profits can be used in profitability analysis but OIBDA is mostly used to replace EBITDA.
OIBDA vs. EBITDA
EBITDA and OIBDA are very similar measures. If to calculate those by the precise methodology as accountant does, then OIBDA and EBITDA will differ by other non-operating (and non-financial as well) income and expenses. If there are no non-operating-non-financial income and expenses then OIBDA and EBITDA will be equal. Normally such non-operating income and expenses are non-recurring (one-off) type events and it is normal to not include those in financial calculations. In this way OIBDA is more exact measure than EBITDA.
However, in practice OIBDA and EBITDA may be treated equally because many analysts (but not accountants) are eliminating non-recurring income and expenses from EBITDA calculations as well.
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