H1 highlights:
- Revenue up 9% to £827m, driven by good stakes growth (Online up 10%, or 15% excluding Euro 2016, and Australia up 16%) and foreign exchange, partially offset by increased investment in pricing and promotions
- Strong Q1 growth driven by more favourable Cheltenham results, with Q2 affected by the absence of a major football tournament and adverse sports results
- Underlying EBITDA up 21% to £220m with EBITDA margin up 3 percentage points to 27%
- Continued strong cash conversion with underlying free cash flow of £172m representing 113% of underlying profit after tax in the period
- Entry into the daily fantasy sports market in the USA with the acquisition of Draft an early-stage operator
Outlook:
- Full year underlying EBITDA, including £15m of losses in DRAFT, expected to be between £445m and £465m
Dividend and capital structure
The Board continues to target a pay-out ratio for the Group's dividend of approximately 50% of underlying profits after tax. The Board has declared an interim dividend of 65p per share (2016: 40p per share, or 52p including the pre-merger stub dividend). This will be paid on 22 September 2017 to shareholders on the register at the close of business on 25 August 2017.
The efficiency of the Group's capital structure is kept under regular review by the Board. Relevant considerations include the Group's strong cash flow generation, its investment plans and general capital market conditions.
