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Annual Report & Accounts 2016 - Notes
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86 Financial statements continued GVC Holdings PLC Annual Report 2016 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED for the year ended 31 December 2016 7. EARNINGS PER SHARE 7.1 Basic earnings per share and adjusted earnings per share Basic earnings per share has been calculated by taking the profit attributable to ordinary shareholders and dividing by the weighted average number of shares in issue. 2016 2015 (Loss) profit for the year attributable to ordinary shareholders (€m) (138.3) 24.7 Weighted average number of shares (millions) 271.8 61.3 BASIC (LOSS) EARNINGS PER SHARE (€) (0.51) 0.40 The performance measure of earnings per share used internally by management to manage the operations of the business and remove the impact of one-off and certain non-cash items is adjusted earnings per share. Management believes that this better reflects the underlying performance. Adjusted earnings per share has been calculated by taking the (loss) profit before tax and adding back the following items in the year and dividing by the weighted average number of shares in issue. 2016 2015 (Loss) profit before tax attributable to ordinary shareholders (€m) (138.3) 25.5 Exceptional items 117.8 24.5 Impairment of available for sale asset 4.2 1.2 Changes in the fair value of derivative financial instruments (15.0) (4.8) Dividend income (3.1) - Amortisation on acquired intangible assets 109.5 - - Effect of tax thereon (14.3) - Amortisation of early repayment option on loan (4.3) - Amortisation of loan fees 23.4 - Taxation (8.2) (1.5) ADJUSTED EARNINGS 71.7 44.9 Weighted average number of shares (millions) 271.8 61.3 ADJUSTED EARNINGS PER SHARE (€) 0.26 0.73 7.2 Diluted earnings per share and adjusted earnings per share Diluted earnings per share has been calculated by taking the profit attributable to ordinary shareholders and dividing by the weighted average number of shares in issue as diluted by share options. Adjusted diluted earnings per share has been calculated by taking the adjusted earnings as above and dividing by the weighted average number of shares in issue, as diluted by share options. 2016 2015 (Loss) profit for the year attributable to ordinary shareholders (€m) (138.3) 24.7 Weighted average number of shares (millions) 271.8 61.3 Effect of dilutive share options (millions) 7.5 3.1 Weighted average number of dilutive shares (millions) 279.3 64.4 DILUTED EARNINGS PER SHARE1 (€) (0.51) 0.38 Adjusted earnings (€m) 71.7 44.9 ADJUSTED DILUTED EARNINGS PER SHARE1 (€) 0.26 0.70 1. A diluted EPS calculation may not increase a basic EPS calculation when the basic EPS is a loss. Share options that could potentially dilute basic earnings per share but were not included because they are anti-dilutive for the year ending 31 December 2016 amounted to nil effective shares (2015: nil).