Emphasise underlying results as significant merger costs stripped out
Paddy Power Betfair plc has released impressive preliminary results for the year ended December 31, 2016 delivering double-digit growth across all four operating divisions.
Key performance highlights include:
– An 18 percent increase in revenue to GBP 1,551 million.
– Removing the effects of the merger exceptional costs not associated with usual business activity, underlying EBITDA was up 35 percent to GBP 400 million with EBITDA margin increased to 26 percent from 22 percent.
– Underlying operating profit and EPS both increased 44 percent, to GBP 330 million and 331p per share, respectively.
– Revenue growth was boosted by a GBP 78 million currency exchange benefit regarding non-UK revenues vs. sterling.
– Separately disclosed items totaled GBP 318 million, which include the significant merger costs incurred during 2016.
– Final dividend of 113p per share results in total dividends for the year of 165p per share.
The company will focus on integrating the Group's technology platforms in 2017, unlocking even further potential after achieving significant cost synergies in 2016.
"2016 was a transformational year for Paddy Power Betfair with much of the integration of the businesses completed sooner and more efficiently than expected," Breon Corcoran, chief executive, reported.
"We have created a business with considerable scale that is stronger and better able to compete than either of the individual legacy companies. The Group is well positioned to deliver sustainable, profitable growth".
Current trading is strong and in line with the Board's expectations, the group concluded.
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