Through organic and acquisition-driven growth, revenues reached an all-time high of EUR 2,294.1 million during the financial year 2016. This is an increase of 10.0 percent over the previous year.
The largest absolute increase was achieved in the area of gaming machine revenues, which rose by EUR 126.7 million to EUR 1,028.9 million. Apart from the successful acquisition of Talarius in the United Kingdom completed in 2016, the established companies in Italy and Germany as well as the recently acquired companies in the German, Italian and Spanish markets, also contributed to this positive development.
Significant revenue growth was also achieved with betting revenues, which increased by EUR 35.9 million, as well as with sales revenues, which came in EUR 32.2 million higher than the previous year. Rental revenues also saw a slight increase. Compared to previous periods, e-commerce revenues did not increase as a company that was active in this area was sold as of the end of 2015 and no longer made a contribution to revenues in the year under review.
Earnings before interest, taxes, depreciation and amortization (EBITDA) declined by 4.6 percent against the previous year to EUR 588.5 million. This corresponds to an EBITDA margin of 25.7 percent, compared to 29.6 percent in 2015. Operating profit (EBIT) came in at EUR 264.1 million, down from EUR 315.4 million in the previous year.
During the reporting period, equity capital rose by EUR 156.3 million to EUR 1,371.6 million, of which EUR 62.5 million consisted of other shareholders’ shares. In the course of a capital increase, the company’s share capital increased slightly from EUR 26.0 million to EUR 26.6 million. Due to the capital increase, there was a significant increase of EUR 84.4 million in capital reserves to EUR 85.4 million. In addition to this, equity capital is comprised of retained earnings (amounting to EUR 1,245.6 million), the revaluation reserve as per IAS 39 (amounting to EUR 5.2 million) and the currency translation adjustment (amounting to EUR -53.8 million).
NetDebt/EBITDA increased from 0.8x in the previous year to 1.2x.
Across the Group, cash flow from operating activities totaled EUR 429.2 million in 2016, compared to EUR 417.4 million in the previous year. This rise in cash flow from operating activities, despite lower operating profit in the year under review, resulted from lower payments for income taxes, and higher levels of provisions.
Cash flow from investment activities amounted to EUR -519.8 million in the year under review, while the same figure for 2015 amounted to EUR -439.9 million. Apart from an increase in cash outflows for investments in gaming devices produced in-house against the previous year, this significant change was in particular due to the numerous acquisitions in the United Kingdom, Italy, Spain and Germany.
The cash flow from financing activities amounted to EUR 474.5 million during the reporting year, a considerable improvement over the previous year’s value of EUR -105.2 million. While the repayment of a bond that reached maturity in the previous year (volume of EUR 200.0 million) reduced the cash flow from financing activities, the issuance of a bond with a total volume of EUR 500.0 million (benchmark bond) in 2016 led to a considerable increase in cash inflow. Furthermore, lower dividend payments, along with a capital increase of EUR 85.0 million contributed to the improvement in cash flow from financing activities.