REG - Paddy Power plc - 2014 Interim Results Announcement <Origin Href="QuoteRef">PAP.I</Origin> - Part 3
29/10/2014 15:47
- Part 3: For the preceding part double click ID:nRSb1654Qb
Duty (which was introduced on 1
February 2013) and Goods and Services Tax ('GST') on Online Australia segment gross win.
Software supplier costs comprise direct costs incurred under supplier agreements for the provision of online casino, bingo,
poker, fixed odds gaming services and retail betting machines.
Other direct betting costs comprise payments to third parties for new online customers acquired, product and racefield fees
payable to Australian state racing authorities, data rights which mainly comprise costs incurred in respect of British
Horseracing Board and UK statutory levies, customer bad debt charges and other miscellaneous direct betting costs.
6. Financial income and expense
Six months ended 30 June 2014E'000 Six months ended 30 June 2013E'000
Recognised in profit or loss:
Financial income
On financial assets at amortised cost:
Interest income on short term bank deposits 1,570 1,763
Unwinding of discount on non-current assets 60 36
1,630 1,799
Financial expense
On financial liabilities at amortised cost:
Interest on bank guarantees and bank facilities, and other interest payable 11 114
Unwinding of the discount on non-current liabilities 51 65
62 179
Recognised in other comprehensive income:
Effective portion of changes in fair value of cash flow hedges (3,160) 4,943
Fair value of foreign exchange cash flow hedges transferred to income statement 1,996 (3,337)
Net change in fair value of cash flow hedge reserve (1,164) 1,606
Foreign exchange gain / (loss) on translation of the net assets of foreign currency denominated subsidiaries 7,758 (13,451)
6,594 (11,845)
7. Taxation
Income tax is accrued for the interim reporting period using management's best estimate of the weighted average tax rate
that is expected to be applicable to estimated total annual earnings. This expected annual effective income tax rate is
applied to the taxable income of the interim period.
The Group's effective tax rate for the period was 13.0% (six months ended 30 June 2013: 13.0%), which compares to the
standard Irish corporation tax rate of 12.5%.
8. Earnings per share
The Group presents basic and diluted earnings per share ('EPS') data for its ordinary shares. Basic EPS is calculated by
dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary
shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary
shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential
ordinary shares, which include awards under the Long Term Incentive Plan and share options granted to employees.
The calculation of basic and diluted EPS is as follows:
Six months ended 30 June 2014 Six months ended 30 June 2013
Numerator in respect of basic and diluted earnings per share (E'000):
Profit attributable to equity holders of the Company 53,613 66,995
Denominator in respect of basic earnings per share (in '000s):
Ordinary shares in issue at the beginning of the period 50,977 50,851
Adjustments for weighted average number of:
- ordinary shares issued during the period 30 6
- ordinary shares held in treasury (1,734) (1,734)
- ordinary shares held by long term incentive plan trust (1,096) (1,066)
Weighted average number of ordinary shares in issue during the period 48,177 48,057
Adjustments to derive denominator in respect of diluted earnings per share (in '000s):
Dilutive effect of Share Option Schemes, Sharesave Scheme, Long Term Incentive Plan and shares held by long term incentive plan trust 316 814
Adjusted weighted average number of ordinary shares in issue during the period 48,493 48,871
Basic earnings per share E1.113 E1.394
Diluted earnings per share E1.106 E1.371
9. Goodwill
The following cash generating units, being the lowest level of asset for which there are separately identifiable cash
flows, have the following carrying amounts of goodwill:
Online (ex Australia) E`000 Online Australia E`000 UK Retail E`000 Irish Retail E`000 Total E`000
Balance at 1 January 2013 13,303 60,723 14,224 8,332 96,582
Arising on acquisitions during the year - - 4,270 2,554 6,824
Foreign currency translation adjustment - (10,674) (178) - (10,852)
Balance at 31 December 2013 13,303 50,049 18,316 10,886 92,554
Arising on acquisitions during the period - - 1,699 4,192 5,891
(Note 10)
Foreign currency translation adjustment - 3,051 331 - 3,382
Balance at 30 June 2014 13,303 53,100 20,346 15,078 101,827
4,192
5,891
Foreign currency translation adjustment
-
3,051
331
-
3,382
Balance at 30 June 2014
13,303
53,100
20,346
15,078
101,827
The Group reviews the carrying value of goodwill for impairment semi-annually (or more frequently if there are indications
that the value of goodwill may be impaired) by comparing the carrying values of these cash generating units with their
recoverable amounts (being the higher of value in use and fair value less costs to sell). Management performed such an
impairment review at 30 June 2014 and, on the basis of this review, are satisfied that the carrying amount of the Group's
goodwill at 30 June 2014 is not less than its recoverable amount.
10. Business combinations
Six months ended 30 June 2014
Shop property business acquisitions
In 2014, the Group, in the absence of available comparable sites for organic shop openings, acquired a number of licensed
bookmaking businesses in Great Britain and Ireland.
Details of the net assets acquired and the goodwill arising on these acquisitions under IFRS are as follows:
Provisional fair values 30 June 2014
E'000
Identifiable net assets acquired:
Property, plant and equipment 923
923
Goodwill arising on acquisition - UK Retail and Irish Retail 5,891
Consideration 6,814
The consideration is analysed as:
Cash consideration 6,177
Contingent deferred consideration 637
6,814
The principal factors contributing to the UK and Irish Retail goodwill balance are the well-established nature of the
acquired businesses within the locations in which they operate and the potential synergies, rebranding opportunities and
operational efficiencies achievable for the acquired businesses within the Paddy Power group.
Information in respect of income, operating profit and cash flows for the acquired businesses in respect of the period from
acquisition and for the period ended 30 June 2014 has not been presented on the basis of immateriality.
Contingent deferred consideration is payable to the vendors by reference to the acquired businesses' performance against
agreed targets for the next 12 months following the date of acquisition. The contingent deferred consideration amount of
E637,000 at 30 June 2014 represents management's best estimate of the fair value of the amounts that will be payable.
During 2014, the Group also paid a total of E8,000 in respect of contingent deferred consideration for a 2013 UK Retail
acquisition (see below).
10. Business combinations (continued)
Six months ended 30 June 2013
Shop property business acquisitions
In 2013, the Group, in the absence of available comparable sites for organic shop openings, acquired a number of licensed
bookmaking businesses in Great Britain and Ireland.
Details of the net assets acquired and the goodwill arising on these acquisitions under IFRS are as follows:
Fair values 30 June 2013
E'000
Identifiable net assets acquired:
Property, plant and equipment 251
251
Goodwill arising on acquisition - UK Retail and Irish Retail 2,602
Consideration 2,853
The consideration is analysed as:
Cash consideration 2,415
Contingent deferred consideration 438
2,853
The principal factors contributing to the UK and Irish Retail goodwill balance are the well-established nature of the
acquired businesses within the locations in which they operate and the potential synergies, rebranding opportunities and
operational efficiencies achievable for the acquired businesses within the Paddy Power group.
Information in respect of income, operating profit and cash flows for the acquired businesses in respect of the period from
acquisition and for the period ended 30 June 2013 has not been presented on the basis of immateriality.
Contingent deferred consideration is payable to the vendors by reference to the acquired businesses' performance against
agreed targets for the next three years following the date of acquisition. The contingent deferred consideration amount of
E438,000 at 30 June 2013 represents management's best estimate of the fair value of the amounts that will be payable.
During 2013, the Group also paid a total of E88,000 in respect of contingent deferred consideration for a 2012 UK Retail
acquisition (see below).
Net cash outflow from purchase of businesses
Six months ended 30 June 2014 Six months ended 30 June 2013
E'000 E'000
Cash consideration - acquisitions in the period 6,177 2,415
Cash consideration - acquisitions in previous periods 8 88
6,185 2,503
Analysed for the purposes of the statement of cash flows as:
Purchase of businesses 6,177 2,415
Payment of contingent deferred consideration 8 88
6,185 2,503
11. Financial assets and cash and cash equivalents
30 June 2014E'000 31 December 2013E'000
Non-current
Financial assets - restricted cash - 993
- 993
Current
Financial assets - restricted cash 53,541 52,806
Financial assets - deposits - 13,686
Cash and cash equivalents 190,865 161,359
244,406 227,851
Total 244,406 228,844
Cash and cash equivalents consist of the following for the purposes of the statement of cash flows:
30 June 2014E'000 31 December 2013E'000
Cash 75,821 61,181
Short term bank deposits - with an original maturity of less than three months 115,044 100,178
Cash and cash equivalents in the statement of cash flows 190,865 161,359
The directors believe that all short term bank deposits can be withdrawn without significant penalty.
Financial assets (restricted cash and deposits) and cash and cash equivalents are analysed by currency as follows:
30 June 2014 31 December 2013
E'000 E'000
Euro 63,353 76,305
GBP 86,544 73,455
AUD 92,434 77,188
USD 1,583 1,595
Other 492 301
244,406 228,844
At 31 December 2013 included in non-current financial assets was restricted cash totalling E993,000 which was restricted at
that date. This balance related to bank deposits held by the Online Australia business segment to guarantee certain
obligations relating to office accommodation held under operating leases. At 30 June 2014, no such balances were
restricted.
Included in current financial assets - restricted cash at 30 June 2014 are bank deposits totalling E53,541,000 (31 December
2013: E52,806,000) which were either (1) restricted at that date, as they represented client funds balances securing player
funds held by the Group or (2) required to be held to guarantee third party letter of credit facilities.
At 31 December 2013 included in current financial assets - deposits were bank deposits totalling E13,686,000 which had an
initial cost of E13,621,000. The maturity of these investments falls outside the three months' timeframe for
classification as cash and cash equivalents under IAS 7 'Statement of Cash Flows', and, accordingly, the related balances
have been separately reported in the consolidated statement of financial position. At 30 June 2014, no current financial
assets - deposits were held.
12. Trade and other payables and derivative financial liabilities
Current liabilities
30 June 2014E'000 31 December 2013E'000
Trade and other payables
Trade payables 24,884 18,856
Customer balances 69,381 57,290
PAYE and social security 5,523 5,284
Value added tax and goods & services tax 1,565 1,035
Betting duty, data rights and product & racefield fees 12,767 9,349
Employee benefits 23,473 30,363
Contingent deferred consideration - business combinations 4,006 3,375
Accruals and other liabilities 66,329 55,421
207,928 180,973
Derivative financial liabilities
Foreign exchange forward contracts - cash flow hedges 2,632 1,467
Sports betting open positions 24,311 15,581
26,943 17,048
Non-current liabilities
30 June 2014E'000 31 December 2013E'000
Trade and other payables
PAYE and social security 159 501
Employee benefits 3,083 6,499
Contingent deferred consideration - business combinations 3,309 4,701
Accruals and other liabilities 505 588
7,056 12,289
Derivative financial liabilities
Sports betting open positions 403 270
13. Financial instruments
Carrying amounts versus fair values
The following table shows the fair values of financial assets and financial liabilities at 30 June 2014 and 31 December
2013, together with the carrying amounts in the consolidated statement of financial position. It has been determined for
financial instruments carried at amortised cost, that the carrying amount represents a reasonable approximation of fair
value.
30 June 2014 31 December 2013
Carrying amount Fair value Carrying amount Fair value
E'000 E'000 E'000 E'000
Carried at fair value
Current financial liabilities
Non-derivative financial liabilities - contingent deferred consideration (4,006) (4,006) (3,375) (3,375)
Derivative financial liabilities - forward contract cash flow hedges (2,632) (2,632) (1,467) (1,467)
Derivative financial liabilities - sports betting open positions (24,311) (24,311) (15,581) (15,581)
(30,949) (30,949) (20,423) (20,423)
Non-current financial liabilities
Non-derivative financial liabilities - contingent deferred consideration (3,309) (3,309) (4,701) (4,701)
Derivative financial liabilities - sports betting open positions (403) (403) (270) (270)
(3,712) (3,712) (4,971) (4,971)
Net (34,661) (34,661) (25,394) (25,394)
Carried at amortised cost
Non-current financial assets
Financial assets - restricted cash - - 993 993
- - 993 993
Current financial assets
Trade receivables 6,758 6,758 5,725 5,725
Other receivables 1,923 1,923 1,815 1,815
Financial assets - restricted cash 53,541 53,541 52,806 52,806
Financial assets - deposits - - 13,686 13,686
Cash and cash equivalents 190,865 190,865 161,359 161,359
253,087 253,087 235,391 235,391
253,087 253,087 236,384 236,384
Current financial liabilities
Trade and other payables (203,922) (203,922) (177,598) (177,598)
(203,922) (203,922) (177,598) (177,598)
Non-current financial liabilities
Trade and other payables (3,747) (3,747) (7,588) (7,588)
(3,747) (3,747) (7,588) (7,588)
(207,669) (207,669) (185,186) (185,186)
Net 45,418 45,418 51,198 51,198
Total 10,757 10,757 25,804 25,804
13. Financial instruments (continued)
Financial instruments carried at fair value
Fair value hierarchy
The table below analyses recurring fair value measurements for financial assets and financial liabilities. These fair
value measurements are categorised into different levels in the fair value hierarchy based on the inputs to the valuation
method used. The different levels are defined as follows:
· Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the measurement date;
· Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and
· Level 3: unobservable inputs for the asset or liability.
30 June 2014
Level 1 Level 2 Level 3 Total
E'000 E'000 E'000 E'000
Derivative financial liabilities - (2,632) (24,714) (27,346)
Non-derivative financial liabilities - - (7,315) (7,315)
Total - (2,632) (32,029) (34,661)
31 December 2013
Level 1 Level 2 Level 3 Total
E'000 E'000 E'000 E'000
Derivative financial liabilities - (1,467) (15,851) (17,318)
Non-derivative financial liabilities - - (8,076) (8,076)
Total - (1,467) (23,927) (25,394)
Basis for determining fair values
The following are the significant methods and assumptions used to estimate the fair values of the financial instruments
carried at fair value:
Derivative financial instruments
Derivative financial instruments comprise foreign exchange forward contracts and sports betting open positions.
The fair value of foreign exchange forward contracts (Level 2 above) is determined using quoted forward foreign currency
exchange rates at the balance sheet date.
The fair value of open sports bets at the period end (Level 3 above) has been calculated using the latest available prices
on relevant sporting events. The fair value calculation also includes the impact of any hedging activities in relation to
these open positions.
Non-derivative financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and
interest cash flows, discounted at the market rate of interest at the reporting date.
The contingent deferred consideration payable balance represents management's best estimate of the fair value of the
amounts that will be payable, discounted, as appropriate, using a market interest rate. The fair value is estimated by
assigning probabilities, based on management's current expectations, to the potential payout scenarios.
Sensitivity analysis in respect of Level 3 financial instruments carried at fair value
The following sensitivity analysis has been performed for the Level 3 financial liabilities carried at fair value at 30
June 2014 and 31 December 2013:
Sports betting open positions
The fair value of sports betting open positions is primarily based on expectations as to the results of sporting and other
events on which bets are placed. Changes in those expectations and ultimately the actual results when the events occur
will result in changes in fair value. While it is unlikely that the results of all sporting events would vary against
expectation in a similar linear manner, a 10% positive and negative (from the viewpoint of the results of the Group)
movement in the overall probability estimate of relevant sporting event outcomes would result in a E1,854,000 decrease and
E1,685,000 increase respectively, in the value of open sports bets at 30 June 2014 (31 December 2013: E1,189,000 decrease
and E1,081,000 increase respectively).
13. Financial instruments (continued)
Contingent deferred consideration
The fair value of contingent deferred consideration is primarily dependent on the future performance of both the acquired
businesses and the Group against predetermined targets and on management's current expectations thereof. An increase and
decrease of 10% in management's expectation as to the amounts that will be paid out would increase and decrease the value
of contingent deferred consideration at 30 June 2014 by E745,000 and E775,000 respectively (31 December 2013: E20,000 and
E803,000 respectively).
Movements in the period in respect of Level 3 financial instruments carried at fair value
The movements in respect of the financial assets and liabilities carried at fair value in the six months to 30 June 2014
and year to 31 December 2013 are as follows:
Sports betting open positions Contingent deferred consideration Total
E'000 E'000 E'000
Balance at 1 January 2013 (11,995) (11,797) (23,792)
Arising on acquisition (Note 10) - (598) (598)
Recognised in the income statement (730,037) 502 (729,535)
Settlements 726,181 3,072 729,253
Foreign currency translation adjustment - 745 745
Balance at 1 January 2014 (15,851) (8,076) (23,927)
Arising on acquisition (Note 10) - (637) (637)
Recognised in the income statement (391,269) 1,703 (389,566)
Settlements 382,406 8 382,414
Foreign currency translation adjustment - (313) (313)
Balance at 30 June 2014 (24,714) (7,315) (32,029)
Financial risk management - credit risk of trade and other receivables
The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated
financial statements for the year ended 31 December 2013.
14. Dividends paid on ordinary shares
Six months ended 30 June 2014 Six months ended 30 June 2013
E'000 E'000
Ordinary shares:
- final dividend of 90.0 cent per share for the year ended 31 December 2013 (31 December 2012: 81.0 cent) 44,392 39,803
44,392 39,803
The directors have proposed an interim dividend of 50.0 cent per share which will be paid on 26 September 2014 to
shareholders on the Company's register of members at the close of business on the record date of 5 September 2014. This
dividend, which amounts to approximately E24,650,000, has not been included as a liability at 30 June 2014. The interim
dividend for the period ended 30 June 2013 was 45.0 cent per share, amounting in total to E22,104,000.
15. Changes in equity
All ordinary shares issued during the six months ended 30 June 2014 and 30 June 2013 were either in respect of share awards
to employees or the exercise of share options granted to employees of the Group under the terms of the Share Option and
Sharesave Schemes.
A total of 1,734,000 shares were held in treasury as of 30 June 2014 (30 June 2013: 1,734,000). All rights (including
voting rights and the right to receive dividends) in the shares held in treasury are suspended until such time as the
shares are reissued. The Group's distributable reserves are restricted by the value of the treasury shares, which amounted
to E34,177,000 as of 30 June 2014 (30 June 2013: E34,177,000). At 30 June 2014, the Company held a further 1,020,372 of
its own shares (30 June 2013: 1,107,378 shares), in respect of potential future awards relating to the Group's Long Term
Incentive Plan ('LTIP'). The Company's distributable reserves at 30 June 2014 and 30 June 2013 are further restricted by
these respective amounts.
As detailed in the consolidated statement of changes in equity, the movement in the share-based payment reserve and in the
shares held by the long term incentive plan trust is due to the equity-settled share-based payments charge, the vesting of
LTIP awards and the purchase of shares by the long term incentive plan trust during the six month period ended 30 June
2014. A total of 352,406 shares in respect of the 2011 LTIP awards and related dividends were vested from the long term
incentive plan trust to senior and certain other management staff during the six months ended 30 June 2014 (six months
ended 30 June 2013: 348,064 shares relating to the 2010 LTIP awards).
The movement in the foreign exchange translation reserve in the six months to 30 June 2014 reflects the strengthening of
the AUD and GBP against the Euro in the period.
The cash flow hedge reserve represents the effective portion of the cumulative net change in the fair value of cash flow
hedging instruments related to hedged transactions that had not yet occurred at that date. The Group has entered into
foreign exchange forward contracts to hedge a portion of GBP exposures expected to arise from GBP denominated income in the
second six months of 2014 and the first five months of 2015. The fair value loss of E2,301,000 at 30 June 2014 (30 June
2013: gain of E1,856,000), which is stated after applicable deferred taxation of E331,000 (30 June 2013: deferred tax
liability of E265,000), arises as the applicable forward contract EUR-GBP rates were weaker than the relevant forward
foreign exchange rate ruling at 30 June 2014 (30 June 2013: the applicable EUR-GBP rates were stronger than the relevant
forward foreign exchange rate ruling at 30 June 2013).
Other reserves comprise a capital redemption reserve fund, a capital conversion reserve fund and a net wealth tax reserve.
16. Commitments and contingencies
(a) Guarantees
The Group has uncommitted working capital overdraft facilities of E15.6m (31 December 2013: E15.3m) with Allied Irish Banks
p.l.c. These facilities are secured by a Letter of Guarantee from Paddy Power plc.
The Group has bank guarantees (1) in favour of certain gaming regulatory authorities to guarantee the payment of player
funds, player prizes, and certain taxes and fees due by a number of Group companies and (2) in respect of certain third
party rental and other property commitments and letter of credit facilities. The maximum amount of the guarantees at 30
June 2014 was E16,443,000 (31 December 2013: E19,249,000). No claims had been made against the guarantees as of 30 June
2014 or 31 December 2013. The guarantees are secured by counter indemnities from Paddy Power plc and certain of its
subsidiary companies, and, at 30 June 2014, were also secured by cash deposits totalling E10,356,000 (31 December 2013:
E18,769,000) over which the guaranteeing banks hold security. The fair value accounting impact of these guarantees is
deemed to be immaterial.
The Group has cash amounts totalling E43,185,000 (31 December 2013: E35,030,000) deposited in client fund accounts held for
the benefit of certain gaming regulatory authorities, of which the Isle of Man Gambling Supervision Commission is the most
significant, as security for player funds owed by certain Group companies and as required under the terms of relevant
gambling licences.
The Australian corporate sports bookmaking licence issued to Sportsbet and IAS require those companies to hold sufficient
cash funds to cover monies owed to customers. At 30 June 2014, the total value of relevant customer balances attributable
to the Online Australia business segment was E32,782,000 (AUD47,655,000) (31 December 2013: E24,660,000 (AUD38,033,000))
and the combined cash and cash equivalent balances held by Sportsbet and IAS at that date totalled E91,132,000
(AUD132,478,000) (31 December 2013: E73,859,000 (AUD113,913,000)).
16. Commitments and contingencies (continued)
The Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within the Group.
The Company considers these to be insurance arrangements and accounts for them as such. The Company treats the guarantee
contract as a contingent liability until such time as it becomes probable that the Company will be required to make a
payment under the guarantee.
(b) Capital commitments
Capital expenditure contracted for at the statement of financial position date but not yet incurred was as follows:
30 June 2014E'000 31 December 2013E'000
Property, plant and equipment 3,071 2,359
Intangible assets 2 183
3,073 2,542
17. Related parties
There were no material transactions with related parties during the six months ended 30 June 2014 or 30 June 2013 or the
year ended 31 December 2013.
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and
are not disclosed in this note.
18. Events after the reporting date
Dividend
In respect of the current period, the directors propose that an interim dividend of 50.0 cent per share (2013: 45.0 cent
per share) be paid to shareholders on 26 September 2014. This dividend has not been included as a liability in these
condensed consolidated interim financial statements. The proposed dividend is payable to all shareholders on the Register
of Members on 5 September 2014. The total estimated dividend to be paid amounts to E24,650,000 (2013: E22,104,000).
Independent Review Report to Paddy Power plc
Introduction
We have been engaged by Paddy Power plc ('the Company') to review the condensed consolidated interim financial statements
in the half yearly financial report for the six months ended 30 June 2014, which comprise the condensed consolidated
interim income statement, the condensed consolidated interim statement of comprehensive income, the condensed consolidated
interim statement of financial position, the condensed consolidated interim statement of cash flows, the condensed
consolidated interim statement of changes in equity and the related explanatory notes. We have read the other information
contained in the half yearly financial report and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed consolidated interim financial statements.
This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting
the requirements of the Transparency (Directive 2004/109/EC) Regulations 2007 ('the TD Regulations') and the Transparency
Rules of the Central Bank of Ireland and the Disclosure and Transparency Rules of the UK's Financial Conduct Authority
('the UK FCA'). Our review has been undertaken so that we might state to the Company those matters we are required to
state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have
reached.
Directors' responsibilities
The half yearly financial report is the responsibility of, and has been approved by, the directors. The directors are
responsible for preparing the half yearly report in accordance with the TD Regulations and the Transparency Rules of the
Central Bank of Ireland and the Disclosure and Transparency Rules of the UK FCA.
As disclosed in Note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by
the EU. The directors are responsible for ensuring that the condensed consolidated interim financial statements have been
prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed consolidated interim financial statements in
the half yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of
Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board.
A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us
to obtain assurance that we would become aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim
financial statements in the half yearly financial report for the six months ended 30 June 2014 are not prepared, in all
material respects, in accordance with IAS 34 as adopted by the EU, the TD Regulations and the Transparency Rules of the
Central Bank of Ireland and the Disclosure and Transparency Rules of the UK FCA.
David Meagher
for and on behalf of KPMG
Chartered Accountants, Statutory Audit Firm
Dublin
27 August 2014
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Flutter Entertainment
See all newsREG - FlutterEntertainment - Holding(s) in Company
AnnouncementREG - FlutterEntertainment - Director/PDMR Shareholding
AnnouncementREG - FlutterEntertainment - Total Voting Rights
AnnouncementREG - FlutterEntertainment - Publication of Annual Report and Accounts 2025
AnnouncementREG - FlutterEntertainment - Q4 and Fiscal Year 2025 Earnings
Announcement