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Financial performance

The following charts illustrate the Group’s performance for the 12-month periods to 30 June over the last five years.

Underlying1 Net Gaming Revenue (NGR)

Underlying net gaming revenue (NGR) is an indicator of the Group’s top-line growth. It is revenue retained from the amounts staked after paying out customer winnings and deducting customer incentives.

Underlying NGR decreased by 8% in the year as the strong performance in the first half was offset by the loss of NGR following the temporary closure of the Group’s venues from March 2020 during the COVID-19 pandemic.

Underlying1 operating profit

Underlying operating profit provides a picture of the underlying performance and is a key indicator of the Group’s success in delivering top-line growth while controlling costs.

Underlying operating profit decreased by 32% in the year as the strong performance in the first half was offset by the loss of operating profit following the temporary closure of the Group’s venues from March 2020 during the COVID-19 pandemic.

Net (debt)/cash

Net (debt)/cash is calculated as total borrowings less cash and short-term deposits.

Net debt increased in the year due to the acquisition of Stride Gaming plc and the loss of operational cash inflows following the temporary closure of the Group’s venues from March 2020 during the COVID-19 pandemic.

Net debt for 2019/20 also includes a £234.3m adjustment following the adoption of IFRS 16 with the Group now recognising lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17 Leases.

Prior year numbers have not been restated for the impact of IFRS 16.

 
Underlying1 net (debt)/cash

Underlying net (debt)/cash is calculated as total borrowings less cash and short-term deposits but before the impact of IFRS 16.

Net debt increased in the year due to the acquisition of Stride Gaming plc and the loss of operational cash inflows following the temporary closure of the Group’s venues from March 2020 during the COVID-19 pandemic.

 
Underlying1 EBITDA

Underlying EBITDA is earnings before interest, tax, depreciation, amortisation and separately disclosed items. It is calculated by taking underlying operating profit before separately  disclosed items and adding back depreciation and amortisation.

Underlying EBITDA for the year increased by 8% following the adoption of IFRS 16 in the year. Earnings however were lower in the year following the temporary closure of the venues from March 2020 during the COVID-19 pandemic.

 
Earnings per share

Earnings per share (EPS) is a key indicator of the Group’s growth after allowing for all costs including separately disclosed items.

EPS decreased by 66% reflecting the lower profits generated in the year.

 
Underlying1 earnings per share

Underlying EPS is a key indicator of the Group’s growth before allowing for separately disclosed items.

EPS decreased by 54% due to a lower underlying operating profit for the year.

 
Dividend per share

Dividend per share (DPS) is the sum of declared dividends issued by the Company for every ordinary share outstanding.

In light of the recent COVID-19 pandemic and the material impact to our business the Board will not be proposing a final year dividend.

1. Underlying measures exclude the impact of amortisation of acquired intangibles; profit or loss on disposal of businesses; acquisition and disposal costs including changes to deferred or contingent consideration; impairment charges; reversal of impairment charges; restructuring costs as part of an announced programme and discontinued operations, should they occur in the period. Collectively these items are referred to a Separately Disclosed Items (‘SDIs’).
The Group has changed the adjusted results it discloses on its consolidated income statement in addition to the IFRS-compliant measures. The presentation of the income statement has changed from “before exceptional items” and “exceptional items” in the prior year to “underlying” and “separately disclosed items” in the current year. The 2018/19 comparatives have been restated to reflect this change.

2. Underlying operating profit for 2017/18 and 2018/19 has been restated to reflect the reclassification of amortisation relating to the acquisition of QSB Gaming and its subsidiaries from underlying to separately disclosed items.

3. Underlying EPS for 2017/18 and 2018/19 has been restated to reflect the reclassification of amortisation relating to the acquisition of QSB Gaming and its subsidiaries from underlying to separately disclosed items.