REG - GVC Holdings PLC - Notification of Transfer to a Premium Listing <Origin Href="QuoteRef">GVC.L</Origin> - Part 5
01/07/2016 07:07
- Part 5: For the preceding part double click ID:nRSA8980Cd
that arose on acquisitions prior to the introduction of IFRS 3 (revised).
Due to their short term nature, the carrying values of cash and cash equivalents, joint venture and associate investments,
short term investments, trade and other receivables, trade and other payables, client liabilities and progressive prize
pools approximates their fair value and are classified in level 3 of the fair value hierarchy.
Financial instruments measured at fair value
The fair value hierarchy of financial instruments measured at fair value is provided below:
Financial instrument Level 1 Level 2 Level 3
2015 2014 2015 2014 2015 2014
Year ended 31 December Emillion Emillion Emillion Emillion Emillion Emillion
Financial assets
Investments 3.1 6.7 - - 11.3 2.0
Deferred and contingent
consideration - - - - 12.6 10.6
Derivative financial assets - - 1.2 1.9 - -
As at 31 December 3.1 6.7 1.2 1.9 23.9 12.6
Financial liabilities
Contingent consideration - - - - 0.4 0.4
Other payables - - - - - 9.2
As at 31 December - - - - 0.4 9.6
Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the
fair value measurement of the relevant asset or liability as follows:
Level 1 - valued using quoted prices in active markets for identical assets
Level 2 - valued by reference to valuation techniques using observable inputs other than quoted prices included within
level 1
Level 3 - valued by reference to valuation techniques using inputs that are not based on observable market data.
There were no transfers between levels during the period.
The valuation techniques and significant unobservable inputs used in determining the fair value measurement of level 3
financial instruments are set out in the table below.
Financial instrument Valuation techniques used Significant unobservable inputs
Investments Discounted cash flow forecasts Weighted average costs of capital, cash flow forecasts and long term growth rates
Contingent consideration Discounted cash flow forecasts Weighted average cost of capitaland expected cash flows
- receivables
Contingent consideration Discounted cash flow forecasts Weighted average cost of capitaland expected cash flows
- payables
Other payables Discounted cash flow forecasts Weighted average cost of capital and expected cash flows
In respect of the investment in Visa Europe Limited which is carried at fair value and recorded within level 3, the
directors have arrived at a valuation which they believe to be within a reasonable range, based on information available.
The expected consideration should the transaction complete which based on available information the directors believe will
be the case and hence the basis for arriving at fair value is split between cash, potentially convertible shares in Visa
Inc and contingent consideration payable on the fourth anniversary of the potential transaction completing. The conversion
of the shares in Visa Inc are dependent on the eventual outcome of certain litigation matters facing Visa Europe Limited
and may not be convertible and capable of being realised for a period of up to 12 years. Consequently management have
applied a discount to the expected proceeds to reflect the risk that the shares may not convert and the contingent
consideration may not be payable.
The reconciliation of the opening and closing fair value balance of level 3 financial assets is as follows:
Financial Assets
Contingent
Investments consideration Total
Emillion Emillion Emillion
As at 1 January 2014 4.0 10.9 14.9
Additional investments 0.4 - 0.4
Total gains or losses
in profit or loss (2.2) (0.3) (2.5)
in other comprehensive income (0.2) - (0.2)
As at 31 December 2014 2.0 10.6 12.6
Additional investments 0.3 - 0.3
Total gains or losses
in profit or loss (1.6) 1.7 0.1
in other comprehensive income 10.6 0.3 10.9
As at 31 December 2015 11.3 12.6 23.9
The reconciliation of the opening and closing fair value balance of level 3 financial liabilities is as follows:
Financial liabilities
Contingent Other
consideration payables Total
Emillion Emillion Emillion
As at 1 January 2014 0.4 9.3 14.1
New consideration arrangement 11.3 - 11.3
Total gains or losses in profit or loss (11.3) (0.1) (11.5)
As at 31 December 2014 0.4 9.2 13.9
Total gains or losses
in profit or loss - (0.4) (0.4)
in other comprehensive income - - -
Settlements (paid) - (8.8) (8.8)
As at 31 December 2015 0.4 - 0.4
Management controls and procedures
The Board has overall responsibility for the determination of the Group's risk management objectives and policies and,
whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating the required
processes that ensure the effective implementation of the objectives and policies to the Group's treasury department under
the auspices of the Group Treasury Committee (see below). As such, the Group's funding, liquidity and exposure to interest
rate and foreign exchange rate risks are managed by the Group's treasury department. The treasury department is mandated to
execute conventional forward foreign exchange contracts and swaps in order to manage these underlying risks. No other
derivatives may be executed without written authority from the Board at which point an explanation of the accounting
implications would also be given.
Treasury operations are conducted within a framework of policies and guidelines reviewed and approved by the Board on an
annual basis which are recommended and subsequently monitored by the Group Treasury Committee. The Group Treasury Committee
is chaired by the Group Finance Director. These polices include benchmark exposures and hedge cover levels for key areas of
treasury risk. The Group risk management policies would also be reviewed by the Board following, for example, significant
changes to the Group's business. Exposures are monitored and reported to management on a monthly basis, together with
required actions when tolerance limits are exceeded. The internal control procedures and risk management processes of the
treasury department are also reviewed periodically by the internal audit function. The last internal control review was
reported during 2014 and the procedures and processes were deemed satisfactory.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible, without unduly affecting
the Group's competitiveness and flexibility. Further details regarding these policies are set out below:
Liquidity risk
Liquidity risk arises from the Group's management of its working capital as well as the finance charges and principal
repayments on its debt instruments. In essence, it is the risk that the Group will encounter difficulty in meeting its
financial obligations as they fall due.
The Group's treasury department ensures that the Group's cash and cash equivalents, and amounts due from payment service
providers ('PSPs') exceed its combined client liabilities at all times. This excess is defined as the Client Liability
Cover. Client liabilities principally represent customer deposits and progressive prize pools.
The Group Treasury Committee is advised of cash balances, investments, foreign currency exposures, interest income,
interest expense, amounts due from PSPs, Client Liability Cover and counterparty exposures on a monthly basis, or more
frequently if required.
In the year under review the Group continued to impose a maximum debt limit of E200 million that may mature in any one year
to ensure that there is no significant concentration of refinancing risk.
Management monitors liquidity to ensure that sufficient liquid resources are available to the Group. The Group's principal
financial assets are cash, bank deposits and trade and other receivables.
As at 31 December 2014 the Group had a £30 million 3 year amortising term loan with a drawn balance of £25m. The Group also
had a £50m revolving credit facility for managing liquidity risk. This facility was available for the Group to draw upon
until December 2016. As at 31 December 2014 the drawn balance on the facility was £20m.
In June 2015 the remaining balances of £25m and £20m respectively were rolled into a newly agreed revolving credit facility
of up to £75m, withdrawable in both sterling and euros. As at 31 December 2015 the drawn balance on this facility was £30m
and E16m. On completion of the acquisition of the Group in 2016 (see note 33), these facilities along with any accrued
interest were repaid in their entirety and cancelled.
The following table sets out the maturities of financial liabilities:
Undiscounted 6 months
cash flows or less 6-12 months 1-5 years
As at 31 December 2015 Emillion Emillion Emillion Emillion
Trade and other payables 110.1 99.6 10.5 -
Contingent consideration 6.0 - 1.0 5.0
Client liabilities and progressive prize pools 115.0 115.0 - -
Loans and borrowings 61.3 7.7 1.1 52.5
Financial liabilities 292.4 222.3 12.6 57.5
Undiscounted 6 months
As at 31 December 2014 cash flows or less 6-12 months 1-5 years
Emillion Emillion Emillion Emillion
Trade and other payables 106.4 82.9 9.4 14.1
Contingent consideration 5.8 0.2 - 5.6
Client liabilities and progressive prize pools 116.1 116.1 - -
Loans and borrowings 57.6 - 32.0 25.6
Financial liabilities 285.9 199.2 41.4 45.3
Capital risk
In common with many internet companies that have few physical assets, the Group has no policy as to the level of equity
capital and reserves other than to address statutory requirements. The primary capital risk to the Group is the level of
debt relative to the Group's net income. Accordingly, the Group's policy is that net debt should not exceed E300 million
and that the leverage ratio of net debt/clean EBITDA should be less than 1.5x. For the purposes of these limits net debt is
defined as borrowings plus client liability less cash.
2015 2014
As at 31 December Emillion Emillion
Loans and borrowings 56.5 56.9
Client liabilities 115.0 116.1
Gross debt 171.5 173.0
Cash and cash equivalents 150.3 164.4
Net debt (surplus) 21.2 8.6
A review of net debt is as follows:
2015 2014
As at 31 December Emillion Emillion
Net debt (Emillion) 21.2 8.6
Clean EBITDA (Emillion) 108.5 101.2
Headroom (Emillion) 66.3 47.2
Ratio 0.2 0.1
Details of the Group's dividend policy is disclosed within note 31
Credit risk
Operational: The Group's operational credit risk is primarily attributable to receivables from PSPs and from customers who
dispute their deposits made after playing on the Group's websites. Prior to accepting new PSPs and wherever practicable,
credit checks are performed using a reputable external source. Senior management monitors PSP balances on a weekly basis,
including aged debtor analysis, and promptly takes corrective action if pre-agreed limits are exceeded. For PSPs that do
not have a formal credit rating, an internal rating system is used, based on such factors as industry knowledge, their
statement of financial position, profitability, customer diversification, geographic diversification, long-term stability,
management credibility, potential regulatory risk and historic payment track record.
These internal ratings are monitored and reviewed on a quarterly basis. An internal rating of one is assessed as very
strong whilst a rating of five is assessed as weak.
2015 2014
As at 31 December Emillion Emillion
1 (Very Strong) 25.1 15.4
2 (Strong) 2.8 12.6
3 (Good) 3.6 3.1
4 (Satisfactory) 0.9 1.3
PSPs amounts due 32.4 32.4
Management consider the maximum credit exposure on amounts due from PSPs to be the carrying amount.
As at 31 December 2015 and 31 December 2014 there were no overdue amounts due from PSPs which the Directors considered
required impairment, nor were there any partially impaired amounts or any impairment expense for the period. There is an
inherent concentration of risk with PSPs, which are not investment grade banks, in that the majority derive most of their
income from the online gaming sector. To this end, where practicable and economic, the Group seeks to substitute
non-investment grade PSPs with investment grade, or, at least, better quality PSPs.
Cash investments: The Group only invest cash with a small number of very strong European financial institutions. The Group
also invests cash in instant access pooled money market funds with a minimum long-term credit rating of AAA on the
principal, as defined by Moody's rating agency. The Group can also purchase commercial paper provided the issuer is not a
financial institution and has a one year credit default swap, as quoted by Bloomberg, of no more than 1%.
Investments are allowed only in highly liquid securities. The Group maintains monthly operational balances with strong
local banks in Gibraltar, UK, France, Malta, Italy, Israel, Bulgaria, Austria, USA and India to meet local salaries,
expenses and legal requirements. In Italy, Spain and France the Group maintains domestic segregated player funds accounts
as required by the respective regulatory authorities. Cash is also held as security in Austria, Italy and UK primarily to
support bank guarantees and as reserves for credit and debit card chargebacks. Other than this, non-central cash balances
are kept to a minimum.
As at 31 December 2015 and 31 December 2014 all cash and short term investment balances were held at banks.
The treasury department may only make the following cash investments, without prior written authority by the Board:
> cash deposits;
> pooled money market funds;
> certificates of deposit; and
> commercial paper.
The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of
financial position.
Market risk
Market risk arises from the Group's use of interest-bearing, tradable and foreign currency financial instruments. It is the
risk that the fair value of future cash flows on its long-term debt finance and cash investments through the use of a
financial instrument will fluctuate because of changes in interest rates (interest rate risk), foreign exchange rates
(currency risk) or other market factors (other price risk).
Currency and Interest rate risk
The Group's current net cash position is maintained primarily on a floating rate basis. In the event of a strategic change
in the debt position of the Group, the interest rate management policy would be reviewed.
Transaction and currency liability exposures: The Group's policy is that all material transaction and currency liability
exposures are economically and fully hedged using foreign exchange contracts and/or by holding cash in the relevant
currency. Additionally, the Group has discretion to hedge some or all of its forecast sterling operational costs in
Gibraltar and the UK for up to 12 months. No other forecast cash flows are hedged. The Group may also economically hedge
material committed exposures such as capital expenditure unless the period between commitment and payment is short (less
than one month). Currency exposures are monitored by the Group Treasury Committee on a monthly basis. A E5 million currency
tolerance limit between euros and US dollar, sterling and Canadian dollar (reduced to E3m between euro and any other
currency) is permitted in order to avoid executing low value and uneconomic foreign exchange contracts.
Net investment exposures: The Group has the flexibility to hold debt in currencies other than euros in order to hedge
non-euro investments up to 50% of the net investment value. In managing the mix of on-going debt exposure the Group takes
into account prevailing interest rates in particular currencies and the potential impact on Group earnings ratios.
Sensitivity analysis to currency and interest rate risk
The Group has adopted a sensitivity analysis that measures the change to the fair value of the Group's financial
instruments arising from a 10% strengthening or weakening in the reporting currency against all other currencies from the
rates applicable at 31 December. The Group is exposed to currency movements in the euro, arising out of changes in the fair
value of financial instruments which are held in non-euro currencies. This analysis is for illustrative purposes only, as
in practice, market rates rarely change in isolation.
Whilst the Group is exposed to interest rate movements since it holds significant amounts of cash at floating rates as well
as cash equivalents and other assets to meet client liability obligations that are non-interest bearing and LIBOR based
loans (see note 21), the exposure is actually not significant as the Group's interest bearing assets and liabilities are
naturally hedged. Therefore, interest rate sensitivity analysis has been omitted from the table below.
The amounts generated from the sensitivity analysis are estimates of the possible impact of market risk, assuming that
specified changes occur. Actual results in the future may differ materially from these results due to other developments in
financial markets that may cause fluctuations in interest and exchange rates to vary from the hypothetical amounts
disclosed in the following table, which therefore should not be considered as a projection of likely future events and
losses.
(Decrease) increase in fairvalue of financial instruments Impact onearnings gain (loss)
As at 31 December 2015 2014 2015 2014
Emillion Emillion Emillion Emillion
10% weakening in the reporting currency (2.3) (3.4) (1.8) (2.8)
10% strengthening in the reporting currency 2.5 3.1 1.9 2.5
Insurance
The Group purchases insurance for commercial or, where required, for legal or contractual reasons. The Group also retains
certain insurable risk where external insurance is not considered an economic means of mitigating these risks.
30. Share-based payments
2015 2014
Year ended 31 December Emillion Emillion
Total Shareholder Return based 14.7 1.5
Clean EBITDA/Clean EBITDA growth based 7.5 4.5
Other 9.3 3.6
Orneon acquisition 0.0 0.2
Associated taxes 1.7 0.0
33.2 9.8
Due to the acquisition by GVC there was an acceleration of the vesting of share options resulting in an increased
share-based payments charge. Included within the share-based payments charge and current liabilities is E15.2m (2014: Enil)
related to cash-settled share options that would otherwise have been settled in shares.
The Group has adopted and granted awards as a reward and retention incentive for employees, including the Executive
Directors. The Group has used the Black-Scholes option pricing model to value these options unless the Monte Carlo option
pricing model is deemed more appropriate. An appropriate discount has been applied to reflect the fact that dividends are
not paid on options that have not vested or have vested and have not been exercised.
bwin.party digital entertainment plc 2014 Incentive Plan ('BIP')
The BIP was approved by the Company's shareholders on 24 February 2014 and succeeds the Bonus Banking Plan ('BBP') and
Value Creation Plan ('VCP'), which reached the end of their three year period of operation on 31 December 2013. The BIP is
split into two separate elements. Element A is virtually identical to the BBP except with a reduced maximum annual
contribution (250% instead of 300%). Element B of the BIP, which replaces the VCP, allows for the annual grant of
restricted shares dependent on the extent to which the Company has completed strategic and transformational objectives
during the previous year, these projects having been set by the Remuneration Committee at the beginning of that previous
year. Any award made under Element B is made in the form of a restricted share award or nil-cost share option. The shares
vest on the third anniversary of grant, but are only eligible for sale on the fifth anniversary of grant. Unlike the VCP
which did not cap awards, an annual Element B award may not exceed 300% of salary.
BIP Number Number
million million
Year end 31 December 2015 2014
Outstanding at beginning of year 3.1 -
Shares over which options granted during the year 3.7 3.7
Shares in respect of options lapsed during the year (0.3) (0.4)
Exercised during the year (0.3) (0.2)
Outstanding at end of year 6.2 3.1
Exercisable at the end of year 0.0 0.0
Shares over which options granted during the period (number) 3,727,742 3,675,416
Percentage of total issued share capital 0.45% 0.45%
Weighted average remaining contractual life of options outstanding
upon satisfaction of performance conditions where relevant (days) 32 3,288
Bonus and Share Plan ('BSP')
The BSP plan also covers a three year period with annual performance targets set at the beginning of each year. If the
targets are met the participant will receive nil-cost share-options which vest in equal instalments over the next three
years.
Bonus and share plan Number Number
million million
Year end 31 December 2015 2014
Outstanding at beginning of year 1.5 1.6
Shares over which options granted during the year 1.3 1.4
Shares in respect of options lapsed during the year - (0.1)
Exercised during the year (1.6) (1.4)
Outstanding at end of year 1.2 1.5
Exercisable at the end of year 0.3 0.4
Shares over which options granted during the period (number) 1,312,320 1,448,985
Percentage of total issued share capital 0.16% 0.18%
Weighted average remaining contractual life of options outstanding upon
satisfaction of performance conditions where relevant (days) 32 2,997
Other share plans
bwin.party
rollover plan GSP plan FMV plan Nil-Cost plan
Number Number Number Number
Year end 31 December 2015 million million million million
Outstanding at beginning of year 20.6 6.5 2.2 0.2
Shares over which options granted during
the year - 6.1 - 0.0
Shares in respect of options lapsed during
the year (1.5) (0.5) (1.3) -
Exercised during the year (0.2) (4.8) - -
Outstanding at end of year 18.9 7.3 0.9 0.2
Exercisable at the end of year 18.9 2.5 0.9 0.2
Shares over which options granted during
the period (number) - 6,099,466 - 26,880
Percentage of total issued share capital n/a 0.7% n/a 0.0%
Weighted average remaining contractual life of options outstanding upon satisfaction of performance conditions where relevant (days)
32 32 32 32
bwin.party
rollover plan GSP plan FMV plan Nil-Cost plan
Number Number Number Number
Year end 31 December 2014 million million million million
Outstanding at beginning of year 22.0 9.7 2.6 0.4
Shares over which options granted during
the year - 1.7 - -
Shares in respect of options lapsed during
the year (0.6) (0.8) (0.4) -
Exercised during the year (0.8) (4.1) - (0.2)
Outstanding at end of year 20.6 6.5 2.2 0.2
Exercisable at the end of year 20.6 2.5 2.2 0.2
Shares over which options granted during
the period (number) - 1,670,323 - -
Percentage of total issued share capital n/a 0.2% n/a n/a
Weighted average remaining contractual
life of options outstanding upon
satisfaction of performance conditions
where relevant (days)
845 2,908 1,313 1,628
bwin.party Rollover Plan
These options were granted as a result of the Merger to replace the existing bwin options at the time using the same
exchange ratio as for Shares. They are subject to the original vesting conditions and have no performance conditions. No
new awards are to be granted under this plan.
Global Share Plan ('GSP')
Awards of free shares worth up to a maximum of £25,000 (or equivalent) may be made to each eligible employee each year. The
award may be subject to performance conditions. There is flexibility to grant different types of free share award including
nil-cost options, conditional awards of shares and restricted shares where the employee is the owner of the shares from the
date of award.
Additionally, where employees buy shares up to a maximum of £1,500 each, they may be awarded additional free shares on a
matching basis, up to a maximum of two matching shares for each purchased share. Purchased shares must be held for a
minimum of three years for the matching shares to vest.
Directors are not eligible to receive any awards under this plan.
FMV Plan
Options granted under this plan during the period generally vest in instalments over a three year period. There are no
performance conditions attached to options issued by the Group under the terms of the FMV Plan. Directors are not eligible
to receive any awards under this plan. No new awards are to be granted under this plan.
Nil-Cost Plan
These options are not generally subject to performance conditions as this is regarded as detracting from their attraction
and retention capabilities and instead usually vest on a phased basis over a four to five year period. No new awards are to
be granted under this plan.
Orneon acquisition
As part of the Orneon acquisition the Group granted share options to key management of the acquired entities. These options
are not subject to performance conditions but require continued employment for a period of two years from the date of
acquisition.
31. Dividend
The Board is not recommending any final dividend. The interim dividend of 1.92 pence per share was paid during the year
ended 31 December 2015 (2014: 3.78p).
32. Non-controlling interests
Non-controlling interests included a 28% holding in BES S.A.S, a company incorporated in France. This minority shareholding
was acquired on 8 July 2015 for E8.8m. The loss attributable to the non-controlling interest to this period was E0.3m (31
December 2014: E1.4m).
It also includes a 10% holding in bwin.party entertainment (NJ) LLC, a company incorporated in the United States. The loss
attributable to the non-controlling interest was E0.5m (2014: E0.8m).
The balance of retained earnings attributable to non-controlling interests is disclosed in the table below:
Emillion
As at 1 January 2014 4.8
Loss attributable to non-controlling interests 2.2
As at 31 December 2014 7.0
Loss attributable to non-controlling interests 0.8
Transferral of minority interests on acquisition of minority interests (6.5)
As at 31 December 2015 1.3
33. Post balance sheet events
On 29 January 2016 the entire issued share capital of the Company was acquired by GVC for total consideration of £1.1bn.
Following this acquisition the company was delisted from the London Stock Exchange and re-registered to a private company
under the ownership of GVC. The group's existing loan facilities were repaid as part of this transaction and the Company
and certain Group subsidiaries became Obligors on the E400m debt facility introduced by the new parent entity, GVC.
As a result of this acquisition it has been agreed that Norbert Teufelberger, Martin Weigold, Elizabeth Catchpole, Sylvia
Coleman and Barry Gibson will resign from the Board on 5 March 2016 following approval of these accounts.
Neil Cotter and Robert Hoskin will be appointed directors of the Company with effect from 5 March 2016.
Company statement of financial position
As at As at
31 December 31 December
2015 2014
Year ended 31 December Notes Emillion Emillion
Non-current assets
Investments in subsidiaries 28 1,461.7 1,245.9
Investments 14 3.5 3.2
1,465.2 1,249.1
Current assets
Trade and other receivables 15 2.4 1.6
Cash and cash equivalents 17 0.2 0.2
2.6 1.8
Total assets 1,467.8 1,250.9
Current liabilities
Trade and other payables 18 (227.9) (144.4)
(227.9) (144.4)
Non-current liabilities
Trade and other payables 18 (4.3) -
(4.3) -
Total liabilities (232.2) (144.4)
Total net assets 1,235.6 1,106.5
Equity
Share capital 25 0.2 0.1
Share premium account 3.3 3.0
Own shares 25 (2.3) (2.1)
Available-for-sale reserve 1.7 1.4
Retained earnings 1,232.7 1,104.1
Equity attributable to equity holders of the parent 1,235.6 1,106.5
The financial statements were approved by the board of directors and authorised for issue on 4 March 2016.
They were signed on its behalf by:
Martin Weigold Elizabeth Catchpole
Director Director
Company statement of changes in equity
Total
compre-
hensive Other
As at Other issue Dividends Purchase of income for share-based As at
Year ended 1 January of shares paid shares the period payments 31 December
31 December 2015 Emillion Emillion Emillion Emillion Emillion Emillion Emillion
Share capital 0.1 0.1 - (0.0) - - 0.2
Share premium
account 3.0 0.3 - - - - 3.3
Own shares (2.1) 0.0 - (0.2) - - (2.3)
Available-for-sale
reserve 1.4 - - - 0.3 - 1.7
Retained earnings 1,104.1 (0.1) (43.2) - 153.8 18.0 1,232.6
Total equity 1,106.5 0.3 (43.2) (0.2) 154.1 18.0 1,235.5
Total
compre-
hensive Other
As at Other issue Dividends Purchase of income for share-based As at
Year ended 1 January of shares paid shares the period payments 31 December
31 December 2014 Emillion Emillion Emillion Emillion Emillion Emillion Emillion
Share capital 0.1 (0.0) - (0.0) - - 0.1
Share premium
account 2.2 0.8 - - - - 3.0
Own shares (5.2) 3.3 - (0.2) - - (2.1)
Available-for-sale
reserve - - - - 1.4 - 1.4
Retained earnings 1,118.7 (2.7) (37.8) (2.0) 18.1 9.8 1,104.1
Total equity 1,115.8 1.4 (37.8) (2.2) 19.5 9.8 1,106.5
Company statement of cashflows
2015 2014
Year ended 31 December Emillion Emillion
Profit for the year 153.8 18.1
Adjustments for:
Reversal of impairment of investments in subsidiaries (200.6) (31.3)
Impairment of investments 0.0 -
Increase in reserves due to share-based payments 2.9 1.1
Dividend income (1.4) -
Interest income (0.7) -
Interest expense 0.4 -
Operating cashflows before movements in working capital and provisions (45.6) (12.1)
Decrease in trade and other receivables (0.8) 105.1
Increase in trade and other payables 44.6 (54.4)
Net cash inflow from operating activities (1.8) 38.6
Investing activities
Purchase of investments - (0.4)
Dividend income received 1.4 -
Loan advanced to subsidiary (30.5) -
Loan repaid by subsidiary 30.5 -
Interest received 0.7 -
Net cash generated by (used in) investing activities 2.1 (0.4)
Financing activities
Issue of ordinary shares 0.3 1.4
Purchase of own shares (0.2) (2.2)
Dividends paid (43.2) (37.8)
Loans received 43.2 -
Interest paid (0.4) -
Net cash used in financing activities (0.3) (38.6)
Net decrease in cash and cash equivalents (0.0) (0.4)
Exchange differences - -
Cash and cash equivalents at beginning of year 0.2 0.6
Cash and cash equivalents 0.2 0.2
Glossary
'Active player days' aggregate number of days in the given period in which active players have contributed to rake and/or placed a wager. This can be calculated by multiplying average active players by the number of days in the period
'active player' or 'active real money' in relation to the Group's products, a player who has contributed to rake and/or placed a wager
'average active players' or 'Daily average players' the daily average number of players who contributed to rake and/or placed a wager in the given period. This can be calculated by dividing active player days in the given period, by the number of days in that period
'B2B' business-to-business
'B2C' business-to-consumer
'Board' or 'Directors' the Directors of the Company
'bwin' bwin Interactive Entertainment AG, its subsidiaries and its associated companies
'bwin.party' bwin.party digital entertainment plc, the name of the Group formed by the Merger of PartyGaming Plc and bwin Interactive Entertainment AG
'bwin.party Shares' the Company's existing Shares and the new shares issued to the bwin shareholders in conjunction with the completion of the Merger
'Cashcade' Cashcade Limited and its subsidiaries
'Clean EBITDA and 'Clean EPS' EBITDA adjusted for exchange differences, reorganisation expenses, income or expenses that relate to exceptional items, and non-cash charges relating to impairments and share-based payments (see reconciliation of Clean EBITDA to operating profit/(loss) and reconciliation of Clean EPS to Basic EPS within this release)
'Company' or 'PartyGaming' or 'bwin.party' PartyGaming Plc prior to completion of the Merger and bwin.party digital entertainment plc ('bwin.party') after the Merger. Following the takeover by GVC, the Company reregistered as bwin.party digital entertainment Limited.
'EBITDA' earnings before interest, tax, depreciation and amortisation
'Employee Trust' the bwin.party Shares Trust, a discretionary share ownership trust established by the Company in which the potential beneficiaries include all of the current and former employees and self-employed consultants of the Group
'Foxy Bingo' www.foxybingo.com, one of Europe's largest active bingo sites that was acquired as part of the purchase of Cashcade
'Gioco Digitale' www.giocodigitale.it, one of the Group's principal bingo websites
'gross win margin' gross win as a percentage of the amount wagered
'gross win' customer stakes less customer winnings
'gross gaming revenue' or 'GGR' gross win added to rake
'Group' or 'bwin.party Group' the Company and its consolidated subsidiaries and subsidiary undertakings
'GVC' GVC Holdings Plc
'IAS' International Accounting Standards
'IASB' International Accounting Standards Board
'IFRS' International Financial Reporting Standards
'InterTrader' Our financial markets service, operating on Intertrader.com and Intertraderdirect.com
'Kalixa' The Group's payments business
'KPIs' Key Performance Indicators such as active player days and yield per active player day
'Merger' the merger of bwin Interactive Entertainment AG and PartyGaming Plc that was completed on 31 March 2011, accounted for under IFRS 3 as an acquisition of bwin
'new player sign-ups' new players who register on the Group's real money sites
'partycasino' www.partycasino.com, the Group's principal casino website
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