Results centre

“We had a very strong 2016 and we’re better placed than we’ve ever been.”

Results in brief
Key points
Outlook
Results in brief
Key points
Outlook
FY 2016 FY 2015 Change
Number of transactions1 (bn) 14.9 13.1 +14%
Transaction value1 (£bn) 451.1 404.2 +12%
Revenue (£m) 4,540.8 3,963.0 +15%
Net revenue2 (£m) 1,124.2 981.7 +15%
Underlying EBITDA3 (£m) 467.6 406.1 +15%
Profit before tax (£m) 264.1 19.1 +£245.0m
Diluted earnings/(loss) per share (p) 6.6 (1.8) +8.4p
Dividend per share (p) 2.0 - n/a
Free cash flow4 (£m) 170.9 32.4 +£138.5m
12015 transaction numbers and value have been restated to include the SecureNet numbers following integration of their operational reporting. This impacts Group and WPUS segmental KPIs.
2Net revenue is defined as revenue less interchange and scheme fees.
3Underlying EBITDA is defined as earnings before interest, tax, depreciation and amortisation. It also excludes separately disclosed items which are discussed in the Financial review. A table showing how underlying EBITDA reconciles to profit before tax is also provided in the Financial review.
4Free cash flow reflects the net cash flow from operating activities of £318.6m (2015: £337.1m) adjusted to remove the working capital and other movements associated with the IPO (2016: £(21.4)m; 2015: £25.0m) and the tax paid in respect of the CVR holders’ 90% share of the taxable gain in relation to the Visa Europe transaction (2016: £(44.1)m; 2015: nil); less net capital expenditure of £160.8m (2015: £179.0m) and underlying net finance costs paid of £52.4m (2015: £100.7m). A table showing how free cash flow reconciles to the net increase/(decrease) in own cash and cash equivalents is provided in the Financial review.
  • Very strong financial performance: net revenue and underlying EBITDA growth of 15%
  • Substantial increase in free cash flow to £170.9m, despite high levels of investment
  • Significant progress on our strategy: further strengthened our customer relationships, product offering, market reach, people capabilities and technology
  • Thousands of customers successfully transacting on the new acquiring platform; expect majority of customers to be migrated by end of 2017; some more complex customers migrating in 2018
  • Strengthened leadership team with new appointments to the Board and Executive Committee
  • Medium-term guidance unchanged: continue to expect net revenue to grow c.9% to 11% CAGR
  • Expect modest underlying EBITDA margin improvement in 2H 2017 with full year benefit in 2018
  • Continue to expect capex to reduce to c.10% of net revenue in 2018

We delivered a very strong financial performance in 2016, and our guidance for the medium term, which includes targeting compound annual net revenue growth of approximately 9% to 11%, remains unchanged.

2017 has started well and as we look forward, we believe we are well placed to take advantage of the many opportunities we see in our markets, given our robust business model and the investments we are making in our capabilities and resources to support our strategy. We therefore remain confident in our future prospects and our ability to continue to deliver strong, visible and recurring shareholder returns.

2016
2015
2016
2015
Date Title Statement Webcast Presentation
07 Mar 2017 Final results 2016
09 Aug 2016 2016 Half year results
Date Title Statement Webcast Presentation
08 Mar 2016 Final Results 2015
01 Jul 2015 2015 Half year results
Date Title Statement Webcast Presentation
2016
2015
2014

Delivered by Investis - link to website (opens in a new window)