Sophos 2016 interim results

DividendMax Ltd.

Sophos 2016 interim results

H1 like-for-like billings growth of 24.2 percent year-over-year ("YOY") with growth across all major regions and product categories

Reported billings grew 12.8 percent YOY, reflecting significant currency headwinds including the devaluation of the Euro and Sterling against the US Dollar

Billings growth driven by both strong new customer wins and an improvement in the retention rate of existing customers

Reported revenue up 8.9 percent YOY, estimated 17 percent YOY growth at constant currency

Twelve months to September weighted average contract length6 consistent YOY at 27.9 months

Reported Cash EBITDA up 8.9 percent, 23.0 percent YOY growth at constant currency

Operating (Loss) / Profit lower YOY mainly reflecting $17.6 million of exceptional items connected with the Group's initial public offering of shares and a YOY variance in unrealised foreign exchange gains of $7.6 million

Unlevered Free Cash Flow lower YOY due to phasing of capital expenditure, but above internal expectations

Net Cash Flow from Operating Activities lower YOY mainly reflecting the $17.6 million of costs incurred on the Group's initial public offering of shares

Interim dividend of 0.7 US cents per share; the Group is targeting a full year dividend payment of 20 percent of free cash flow

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