UK gambling operator The Rank Group Plc today posted information about the financial performance of its multi-channel brands during the six months ended December 31, 2016. The company highlighted the strong growth of its digital business and noted that despite the challenging trading environment, it managed to register a year-over-year improvement.
Group revenue amounted to £378.6 million during the reported period, up 2% from the prior-year six months. Revenue from brick-and-mortar facilities accounted for the bulk of the overall figure reported. Rank’s land-based properties generated a total of £326.2 million during the first half of the operator’s 2016/17 fiscal year, up slightly from £325.8 million. Digital revenue totaled £52.4 million during the reported period, reflecting an increase of 11%.
Group EBITDA before exceptional items dropped 5% year-on-year to £59.7 million. Operating profit before exceptional items amounted to £36.6 million, down 9% from the prior-year period. Adjusted profit before taxes also dropped. It amounted to £34.5 million, down 8% from the first half of the 2015/16 financial year.
Rank’s operations are split into three brands – Grosvenor Casinos, Mecca, and Enracha. The Grosvenor Casinos brand operates UK’s largest network of land-based casinos as well as a gambling website. Mecca is Rank’s bingo business. That brand, too, operates both in the retail and digital channels. Last but not least, the Enracha brand operates nine gaming clubs across Spain and a gambling website that has recently added slots to its offering.
Grosvenor Casinos reported revenue of £202 million during the reviewed six months, down 2% year-on-year. Customer visits dropped to around 4 million in the first half of the 2016/17 year from around 4.2 million in the prior-year period. Casino games were the most popular offering at the Grosvenor-branded casinos. Those generated revenue of £126.2 million.
Revenue from the Grosvenor Casino online gambling brand increased 39% year-on-year to £19.3 million. The growth was attributed to the launch of a Kambi-powered sportsbook and improved poker offering.
Mecca generated revenue of £108 million during the reported six months, down 2% year-on-year. Customer visits decreased 6% year-on-year to around 5.4 million. Interval games were the most popular offering across the Mecca bingo club. Revenue from those amounted to £42.4 million, reflecting a 3% decrease from a year earlier.
The Mecca Bingo website generated revenue of £33.1 million during the reviewed period, down slightly from the £33.2 million reported for the same period of the 2015/16 financial year.
The Enracha brand reported an 11% increase in half-year revenue to €18.8 million. The Enracha clubs across Spain were visited by 982,000 people during the reviewed six months. Bingo games were the most popular among players, generating revenue of €10.4 million. Enracha’s improved revenue was attributed to “a stronger Spanish economy.”
The gambling group also listed several of its priorities for the second half of its financial year. Rank will focus on the launch of a new multi-channel bingo brand, the addition of roulette offering at more land-based casinos, the launch of a single account and wallet solution across said casinos, and the roll-out of new digital brands, among many others.
