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Rank Group Publish Profit Slump

rankplcGaming and sports betting operator – Rank Group PLC, announced a pretax loss of £6.2M (€7.2M) for its operational performance for the six months ended 31 December 2013. The profit slump published by the operator, see’s Rank Group report a loss 23.5% on its 2012 performance reporting.

The Interim results published on the 31st of January 2014. Rank Group. Key performance highlights and driver published by Rank included:

  • Performance during the six months to 31 December 2013 was characterised by a 26% like-for-like fall in operating profit at its Grosvenor Casinos venues and a 38% fall in operating profit in Mecca, in line with management’s expectations and the Group’s Q1 Interim Management Statement (“IMS”)
  • Adjusted profit before tax was down 23% to £27.7m (H1 2012/13: £36.1m) due to trading performance, higher costs and interest charges arising on the acquisition finance
  • As previously stated, cost reduction and revenue enhancement actions are in place to improve results in the second half
  • The Group has successfully completed the integration f the 19 casinos acquired from Gala in May 2013 and invested £11.9m in new product and casino refurbishments – the acquired portfolio is trading well
  • Interim dividend up 8% to 1.35p reflecting the Board’s confidence in the Group’s outlook
  • Loss per share from continuing operations was 0.4 pence, compared to profit of 4.8 pence, last year. Earnings per share to equity shareholders was 0.3 pence, compared to 4.6 pence, last year.
  • Adjusted profit before tax was 27.7 million pounds, compared to 36.1 million pounds, prior year. Adjusted earnings per share was 5.3 pence, compared to 6.8 pence.
  • Group EBITDA before exceptional items decreased year-over-year to 54.2 million pounds, from 57.6 million pounds.
  • Statutory revenue from continuing operations was 337.0 million pounds, compared to 290.6 million pounds. Group revenue from continuing operations increased to 352.4 million pounds, from 304.4 million pounds, as restated, last year.
  • The Board of Rank Group declared an interim dividend for 2013/14 of 1.35 pence per share to be paid on 21 March 2014 to shareholders on the register at 21 February 2014, an increase of 8% on the previous period. Rank Group said its trading in the four weeks since the start of the second half has been in line with internal expectations and shows a positive trend over the first half. The Group anticipates operating profit in the second half of the financial year, excluding the impact of the acquired casinos, will be broadly in line with the comparable period.

 

Ian Burke, chief executive of The Rank Group Plc commented: “As previously guided, the first half of the current financial year was challenging with like-for-like brand performances down on the same period last year. Our London Park Tower casino has underperformed against a strong comparative period; this casino’s performance has been the principal cause of a 2.9 percentage point fall in London win margin and a 6% fall in London handle in the period. The very challenging bingo market has contributed to a decl ine in the Mecca brand’s performance as customer visits fell by 8% i n the period”