Very strong results: net revenue and underlying EBITDA up 15%; five-fold increase in cash flow
Number of transactions (bn)
Transaction value1 (£bn)
Net revenue (£m)
Underlying EBITDA (£m)
Profit before tax (£m)
Diluted earnings/(loss) per share (p)
Dividend per share (p)
Free cash flow (£m)
- 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 had a very strong 2016, both in terms of financial performance and strategic progress, and we’re starting 2017 better placed than we’ve ever been. The substantial investments we’ve made in leading edge technology, innovative products, deep market reach and talented people are delivering real benefits for our customers, and our momentum with them is in turn further increasing our confidence in delivering our medium-term growth ambitions. We are continuing to strengthen our global leadership position in payments, and we are well positioned to capitalise on the opportunities for further growth we see in our markets”, Philip Jansen, Chief Executive Officer.
2015 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.
 Net revenue is defined as revenue less interchange and scheme fees.
 Underlying 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.
 Free 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.