Rank Group reports profit decline

Total revenue at the firm, which owns Grosvenor Casinos and Mecca Bingo, declined from £709m to £707m in the year to June 30. Profit before tax fell 7% to £79.7m. Rank said that on an adjusted basis profits were up 2%.

Rank’s casino division reported a 3% revenue decline, with operating profits also down by 14%. The company attributed the decline to a “challenging” consumer environment. It explained that “a combination of macro-economic conditions, customer due diligence, venue closures and competitor openings” caused a 13% fall in the number of customers. Revenue and profit also fell at its Mecca Bingo halls.

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Total sales dipped 4% and operating profit was down 9%.

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But it wasn’t all bad news. Rank Group’s digital brands posted a strong performance. Total revenue rose 15% and operating profit rose 63%. The company attributed the goos news to “good cost control”.

Speaking of the results, Rank CEO Henry Birch said, “After a challenging first half of our financial year, we are very pleased with our second half performance, especially with our digital business which delivered 63% growth in operating profit for the year. We are excited about the roll-out of our new Luda bingo concept following the opening of the first venue on 7 August 2017.

Additionally, the Group has put in place a number of digital, product and venue-based initiatives launching in the current financial year which we expect to drive top line revenues. The new financial year has started well and the Board looks to the future with confidence.”