I am pleased to report that the Group delivered a
strong financial performance in 2016. Pro forma
numbers are provided as, in the Board's opinion,
they give a more useful comparative of the underlying
performance of the Group.
Pro forma NGR for the year ended 31 December 2016
rose 9% to €894.6m, with the growth in constant
currency registering 12%. Approximately 69% of NGR
was derived from markets either regulated (including
those in the process of regulating) and/or locally taxed.
Clean EBITDA on a pro forma basis was €205.7m,
an increase of 26% on the €163.2m achieved in
2015. This represented a strong improvement in
the Clean EBITDA margin to 23% from 20%, with
acquisition synergies and organic revenue growth
helping to mitigate increased regulatory costs.
A statutory loss before tax of €138.6m reflects
one-off costs in the year of €117.8m, largely related
to the acquisition of bwin.party, finance expense of
€65.3m and depreciation and amortisation charges of
€136.5m. Many of these costs relate to the acquisition
of bwin.party and are forecast to reduce in 2017
following the synergies attached to the acquisition and
the attainment of a significantly cheaper financing
arrangement entered into.
A key driver of the business in 2016 was the
performance of the bwin sports label across its core
European markets. Whilst sports results were generally
positive, this was just one component part of bwin's
success in 2016. During the year the value of first
time deposits across the acquired bwin sports labels
rose 37%, while improved product and more effective
cross sell saw games revenues from sports customers
increase 26% on pro forma 2015. However, it wasn't
just about bwin, with all core sports labels delivering
growth in 2016.
Also pleasing in 2016 was the performance of Games
Labels. Although pro forma NGR from Games Labels
for the full year declined to €203.5m from €211.8m
(flat in constant currency), in the second half of 2016
we reversed this trend and returned it to growth.
In H2 pro forma Games Labels NGR grew by 4% in
Historically, partypoker and partycasino were some of
the most challenged parts of bwin.party. Between 2010
and 2015, NGR from these brands declined by over
60%. In part this reflected the structural challenge
presented by the poker market, however, it is fair to
say that product development lagged key competitors,
whilst the business suffered from a lack of focus.
In 2016, NGR from partypoker increased 14% in
constant currency. This much improved performance
was the result of a change in management, increased
investment and a more focused approach.
23 March 2017
Pro forma NGR grew by 12% on a
constant currency basis in 2016.
Sports wagers 4,553.6 4,389.7 4 7 4,331.3 1,683.0
Sports margin % 9.6% 8.5% 9.6% 9.2%
Net Gaming Revenue 894.6 822.2 9 12 843.4 247.7
Revenue 873.2 807.9 8 11 823.3 246.5
Contribution 464.0 442.8 5 437.5 135.4
Contribution margin 52% 54% 52% 55%
Clean EBITDA 205.7 163.2 26 193.5 54.1
Clean EBITDA margin 23% 20% 23% 22%
Adjusted PBT 93.8 46.4
Statutory (loss)/profit before tax (138.6) 25.5
Adjusted fully diluted EPS cents 26 70
DPS cents 30 56
Numbers may not sum in financial tables and charts throughout this document due to the effect of rounding.