Publishing its half-year H1 2017/18 results (6-month period ending 31 December), FTSE-listed gambling operator Rank Group Plc has detailed continued digital growth combined with solid returns from its venues performance.
Updating the market, Rank reports strong financial KPI growth for its trading period, declaring group adjusted profits of £40 million, up 17% on corresponding H1 2016/17’s £34.5 million.
The FTSE operator, continues its strong online momentum, reporting UK digital revenues of £60 million, which would see its digital assets record operating profits of £11.4 million (H1 2016/17: £7.3 million).
Further pleasing metrics for Rank investors are displayed in the firm’s venue performance, which has recovered under the group’s recently implemented ‘retail cost control program’.
Period venue like-for-like revenues were sustained at £317 million. However, retail/venue efficiencies implemented by Rank governance saw the company report a 9% increase in period venue profits of £46 million (2016/17: £42.5 million).
Commenting on H1 2017/18 corporate performance Henry Birch, Chief Executive of Rank Group Plc said:
“We are pleased to report a good set of results with adjusted profit before tax up 17% and a particularly strong digital performance, with revenues up 16% and operating profit up 56%, despite the introduction of new gaming duty rules on customer bonuses. Along with much of the high street, we have faced a more challenging retail trading environment in the first half, but our combined venues businesses delivered an impressive 9% growth in operating profit.”
A further trading highlight for Rank investors, saw the FTSE firm decrease its corporate net debt by £37m to a current net cash position of £4 million.
Moving forward, Rank governance will continue to emphasise digital growth combined with venue refinements as its core strategy.
The operator has invested in the refurbishment of Grosvenor’s Piccadilly and Golden Horseshoe casinos in London and further expects solid customer uptake for its new multi-channel product “Dual Play”, Rank’s live streaming of roulette from Grosvenor’s Victoria casino to the Group’s digital channel.
“2018 promises to be a busy year with continued positive changes, including the launch of a single account and wallet product across Grosvenor’s retail and digital businesses. We remain confident in the outlook for the Group with management’s expectations for the full year unchanged.”
Rank Group H1 2017/18 KPI Overview