Results centre

“We delivered a strong H1 performance and are well positioned for the rest of the year.”

Results in brief
Key points
Outlook
Results in brief
Key points
Outlook
H1 2016 H1 2015 Change

Number of transactions (bn)

7.2 6.3 +15%

Transaction value (£bn)

217.1 196.5 +11%

Revenue (£m)

2,135.6 1,940.3 +10%

Net revenue1 (£m)

539.7 465.7 +16%

Underlying EBITDA2 (£m)

217.9 182.6 +19%

Profit before tax (£m)

168.6 0.3 +£168.3m

Earnings per share (p)

2.9 0.2 +2.7p

Free cash flow3 (£m)

82.9 20.0 +£62.9m
1 Net revenue is defined as revenue less interchange and scheme fees.
2 Underlying EBITDA is defined as earnings before interest, tax, depreciation and amortisation. It also excludes separately disclosed items which are discussed in note 3 to the condensed financial statements.
3 Free cash flow represents the Group’s net inflow from operating activities (£167.0m), less net capital expenditure (£81.6m) and underlying finance costs (£23.2m). It excludes any working capital movements associated with the IPO (£20.7m).
  • Strong net revenue growth of 16% (14% at constant currency): expansion of business with existing customers, roll-out of enhanced capabilities and innovation, and new customer wins
    • Global eCom net revenue grew 25%: driven by growth in existing customer portfolio and a good contribution from new customers; also reflects very strong acquiring and treasury performance; we expect a moderation to more normal growth levels in the second half
    • Worldpay UK net revenue grew 12%: continue to increase customer numbers and product penetration through cross selling; also benefited from the overall positive effect on product propositions and pricing following the reduction in interchange costs
    • Worldpay US performance improving: net revenue growth of 11% (5% at constant currency); transaction volume up 10%; encouraging progress in the transformation of the US business
  • Underlying EBITDA grew 19% (18% at constant currency), driven by revenue growth, and by strong cost management and improved efficiency in Worldpay UK, partly offset by continued investment in Global eCom and Worldpay US
  • Success in growing our share of existing customer business and winning customer contracts giving increased visibility on longer-term growth prospects
  • Further strengthening our capabilities to help our customers prosper, including through the addition of new payment types and transformational products and services
  • Have begun boarding customers onto our new acquiring platform; boarding of all UK and Global eCom customers expected to be completed in the next 12 months

We are well positioned to deliver a good performance in the second half of the year, in line with our medium-term guidance which remains unchanged. While the UK’s vote to leave the EU has resulted in increased uncertainty, we do not expect it to have a material effect on Worldpay’s trading performance.

If current foreign exchange rates are maintained, these are likely to provide further benefits from the translation of our second half overseas earnings into Sterling. However, we expect the very strong Global eCom acquiring and treasury management performance we saw in the first half to moderate to more normal growth levels in the remainder of the year. In addition, we do not expect an incremental benefit to Worldpay UK in the second half of 2016 from the reduction in interchange costs. These reductions principally occurred in the second half of 2015, with the benefits mainly seen in that period and the first half of 2016.

Our guidance for the medium-term is unchanged: we continue to expect net revenue growth of approximately 9% to 11% CAGR over the medium to long term, and stronger operating leverage and cash flow from the second half of 2017 onwards. Our confidence in our prospects is reflected in the declaration of our maiden interim dividend of 0.65p per share.

2016
2015
2016
2015
Date Title Statement Webcast Presentation
09 Aug 2016 2016 Half year results
Date Title Statement Webcast Presentation
01 Jul 2015 2015 Half year results
08 Mar 2016 Final Results 2015
Date Title Statement Webcast Presentation
2015
2014
2016

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