Rank Group Posts Like-For-Like Growth across All Brands

Major UK land-based and online gambling operator The Rank Group Plc posted today its financial results for the year ended June 30, 2016. The company highlighted continued like-for-like revenue growth across all brands it manages and all channels it operates in.

Group revenue totaled £753 million during the twelve months ended June 30, 2016, reflecting a 2% growth year-on-year. The Rank Group operates three main brands – Grosvenor Casinos, known to be UK’s largest chain of land-based casinos, Mecca, a chain of bingo facilities across the UK, and the Spanish Enracha brand.

Full-year revenue from the company’s Grosvenor Casinos brand totaled £438.6 million, up from the £423.4 million generated during the previous fiscal year. Land-based venues contributed £408.1 million to the overall figure reported. Digital operations brought in a total of £30.5 million during the reported period.

Mecca generated the total amount of £287.7 million during the twelve months in review, compared to revenue of £289.6 million posted for the prior-year period. Revenue from brick-and-mortar bingo halls totaled £221.5 million, down from £224.4 million in the 2014/2015 fiscal year. Digital operations contributed £66.2 million to the overall figure.

The Enracha brand generated revenue of £26.7 million over the past fiscal year. The brand has brick-and-mortar operations only.

Group EBITDA before exceptional items and excluding the Remote Gaming Duty impact totaled £139.8 million, reflecting a 5% increase. The Rank Group’s operating profit before exceptional items and excluding the impact of the Remote Gaming Duty amounted to £94 million, up 4% year-on-year. The gambling operator generated adjusted profit before tax of £77.4 million, compared to a total of £74.1 million posted for the previous fiscal year.

An important highlight from the reviewed twelve-month period was the continued growth of the company’s online gambling business. Revenue from Rank Group’s digital division increased 11%. What is more, Mecca’s retail business, too, reported continued growth during the 2015/2016 financial year.

During the third quarter of the fiscal year the gambling group successfully migrated its online gaming offering to a new platform. The company said in its full-year report that the integration was completed on schedule and on budget.

Commenting on the operator’s full-year performance, CEO Henry Birch said that he is pleased with the solid set of results reported. The executive pointed out that during the reviewed period, they mainly focused their attention on migrating to a new digital platform, improving their retail casino management system, and investing in a new generation of both casino and bingo devices. Mr. Birch also noted that the company is in a strong financial position to deliver on its strategy for a continued growth.

The Rank Group has been making the headlines lately after confirming that it has joined forces with 888 Holdings to bid for rival William Hill and potentially form a new gambling powerhouse. The two companies approached UK’s largest operator of betting shops with two unofficial offers, but none of them resulted in an acquisition deal. Eventually, the Rank Group and 888 Holdings decided that they would no longer pursue a merger as all involved parties could not come to mutually agreeable terms.

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