2018 Interim Results 13 September 2018
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Contents Introduction Kenneth Alexander Financial Review Paul Bowtell Integration and Regulatory Paul Bowtell Update Operational Update Kenneth Alexander Summary Kenneth Alexander 3
Overview Strong financial and operational performance • Group NGR 1 +8% (cc 2 +8%) with strong growth in Online 1 +18% (cc 2 +20%) and • European Retail 1 +29% (cc 2 +26%) Underlying EBITDA 1,3 +11%; and operating profit 1,3 +17% • Market share gains in key territories • Completion of Ladbrokes Coral acquisition – integration progressing well and • capex synergies of at least £30m identified JV with MGM leaves the Group very well placed for US sport betting market • Interim dividend confirmed at 16.0p paid (2017 H1: 14.6p) and expected to pay on • a 50:50 (H1/H2) basis Strong current trading 1,4 (Group NGR +14%: Online NGR: +30%) with full year • outlook in line with management expectations [1] Proforma basis [2] Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2018 exchange rates 4 [3] Stated pre separately disclosed items [4] Current trading period: 1 July to 2 September 2018 vs 2017
Paul Bo aul Bowtell ll Chief Financial Officer 5
Financials: Group P&L Reported 1 Proforma 2 • Group Proforma NGR +8% 8% CC 3 2018 2018 2017 2017 Cha hang nge 2018 2018 2017 2017 Cha hang nge CC • Group Proforma £m £m £m £m % £m £m £m £m % % underlying EBITDA +11% 1% NG NGR 1,125.1 386.6 191% 1,717.0 1,591.0 8% 8% Revenue nue 1,105.9 374.8 195% 1,694.3 1,572.8 8% 8% • Adjusted fully diluted EPS 32.2p ( p (+30% 0%) Gross p profit 763.2 272.4 180% 1,163.4 1,098.2 6% Contr tributi tion 582.0 191.7 204% 923.0 908.9 2% • Interim dividend of 16 16.0p Contribution Margin 51.7% 49.6% 2.1pp 53.8% 57.1% (3.3pp) (+10%) %) BITDA 4 Underlying E EBI 235.0 100.7 133% 349.5 314.1 11% • Net debt at 30 June 2018 Profit 4 Ope perating P 188.6 78.6 140% 277.9 236.9 17% £1,887 87.0m 0m • 2.69x 69x Net debt/LTM Me Memo: 2018 2018 2017 2017 EBITDA Number of shares (m) 578.1 300.7 Diluted EPS(p) 24.9 (2.1) Adjusted diluted EPS (p) 5 32.2 24.7 Dividend / share (p) 16.0 14.6 Net Debt (£m) (1,887.0) n/a Net Debt / LTM EBITDA 6 2.69x n/a [1] 2018 and 2017 reported results are unaudited and reflect the acquisition of the Ladbrokes Coral Group plc on 28 March 2018 [2] The Group’s proforma results are unaudited and presented as if the current Group, post the acquisition of Ladbrokes Coral Group plc, had existed since 1 Jan 2017. The results of Crystalbet are included from the date of acquisition (11 April 2018) and the results of Kalixa are excluded from the date of disposal (31 May 2017). [3] Growth on a constant currency basis is calculated by translating both current and prior year 6 performance at the 2018 exchange rates [4] Stated pre separately disclosed items [5] Adjusted for the impact of separately identified items, FX movements on financial indebtedness and gains on derivative financial instruments [6] Proforma basis
Financials: Proforma EBITDA Profit Bridge Stro trong g growth th i in Online a and Euro rope pean R Reta tail £350m 4.8 (0.5) £340m 13.1 Online UK POCT - £6.5m (5.4) Horse Race Levy - £2.5m £330m 32.4 £320m £310m (9.0) £300m £349.5m £290m £314.1m £280m £305.1m £270m £260m £250m H1 FY17 EBITDA Regulatory Adjustments H1 FY17 EBITDA Rebased Online UK Retail European Retail Other Corporate H1 FY18 EBITDA World C Cup up N NGR P Pre-Sub ubstitut ution ( n (£m) H1 H2 Tot otal Number of matches 50 14 64 Online 21.1 16.9 38.0 Uk Retail 6.7 7.1 13.8 European Retail 7.2 4.9 12.1 Other 0.2 - 0.2 7 Total 35.2 28.9 64.1
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