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Annual Report & Accounts 2016 - Notes
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81 2. SEGMENTAL REPORTING Prior to the acquisition of bwin.party, management followed one business line with two operating segments, being Sports and Gaming. Post the acquisition, and reflecting the label-focused basis for bwin.party's segmental analysis, this approach has been revised. There are now five operating segments, being Sports Labels, Gaming Labels, B2B, Non-core and Corporate. These operating segments are monitored and strategic decisions are made on the basis of overall operating results. Although Corporate does not fulfil the definition of an operating segment per IFRS 8, management have elected to separate the results of the corporate support function to aid the users of the financial statements. The segmental analysis below shows the prior year comparative on the new segmental basis of reporting in order to aid comparability. Management also monitors revenue by geographic location of its customers. 2.1 Geographical analysis The Group's revenues and other income from external customers are divided into the following geographic areas: 2016 €m 2015 €m Germany 187.9 34.7 Turkey 100.3 92.9 UK 69.3 9.5 Other 465.8 109.4 TOTAL 823.3 246.5 Revenues from external customers have been identified on the basis of the customer's geographical location. 2.2 Reporting by segment YEAR ENDED 31 DECEMBER 2016 Sports labels €m Games labels €m B2B €m Total core €m Non-core €m Corporate €m Total €m NGR 620.7 188.3 13.3 822.3 21.1 - 843.4 EU VAT (13.9) (6.2) - (20.1) - - (20.1) REVENUE 606.8 182.1 13.3 802.2 21.1 - 823.3 Variable costs (264.3) (99.2) (0.2) (363.7) (22.1) - (385.8) CONTRIBUTION 342.5 82.9 13.1 438.5 (1.0) - 437.5 Contribution margin 55% 44% 98% 53% (5%) n/a 52% Other operating costs: Personnel expenditure (104.6) (11.4) (20.6) (136.6) Professional fees (5.4) (1.0) (12.0) (18.4) Technology costs (68.0) (1.7) (0.3) (70.0) Office, travel and other costs (7.6) (2.2) (12.6) (22.4) Foreign exchange differences 0.2 - 3.2 3.4 CLEAN EBITDA 253.1 (17.3) (42.3) 193.5 YEAR ENDED 31 DECEMBER 2015 Sports labels €m Games labels €m B2B €m Total core €m Non-core €m Corporate €m Total €m NGR 215.1 32.6 - 247.7 - - 247.7 EU VAT (0.5) (0.7) - (1.2) - - (1.2) REVENUE 214.6 31.9 - 246.5 - - 246.5 Variable costs (101.0) (10.1) - (111.1) - - (111.1) CONTRIBUTION 113.6 21.8 - 135.4 - - 135.4 Contribution margin 53% 67% n/a 55% n/a n/a 55% Other operating costs: Personnel expenditure (34.7) - (13.8) (48.5) Professional fees (0.7) - (4.0) (4.7) Technology costs (23.6) - (0.1) (23.7) Office, travel and other costs (3.1) - (0.4) (3.5) Foreign exchange differences (0.4) - (0.5) (0.9) CLEAN EBITDA 72.9 - (18.8) 54.1 Management do not review the performance of each segment below the level of Clean EBITDA.