Rank Group working to provide "multi-channel gaming offer"

Rank Group, the British casino and bingo hall operator, is looking to go it alone and continue to “transform its business” with a focus on improving its digital offerings after the collapse of efforts to purchase bookmaker William Hill last week.

Despite criticising William Hill earlier this month for ignoring the opportunities offered by a merger with Rank and fellow gaming group 888, the company made no reference to any acquisition efforts in its annual results today, with Rank chief executive Henry Birch – who would have become boss of the proposed merged group – saying the company has “a clear strategy for long-term growth.”

“

“

The statement came as Rank announced full-year results slightly behind expectations

”

Revenues in the twelve months to June 30 increased 2 per cent to £753m, short of the £757m analyst consensus compiled by Bloomberg.

Statutory pre-tax profit grew 15 per cent, to £85.5m, but adjusted profit, a commonly-used figure in the gaming industry, increased only 4 per cent to £77.4m, just shy of expectations of £78m.

Mr Birch said he was “pleased” with the “solid set of results,” adding that “the board continues to look to the future with confidence.”

“

“

The company said it is one of the few gaming companies in a position to provide customers with a genuine multi-channel gaming offer, and outlined plans to improve digital options including launching its own digital sports book

”

Investors on all sides appeared to breathe a sigh of relief after the merger was abandoned, pushing shares up. But shares in Rank are still down 22 per cent in the year to date, and the deal’s failure leaves the future of all three companies uncertain as consolidation continues in the wider gaming sector.

Rivals Betfair and Paddy Power joined forces in March while the merger of Ladbrokes and Gala Coral is expected to be finalised shortly. GVC, owner of Sportingbet, bought Bwin last year. William Hill has been involved in a number of smaller deals including the takeover of betting software company OpenBet.