Grosvenor improvements see Rank delivering on Transformation agenda

Publishing its Q3 2018/19 trading update (quarter period ending 31 March), the governance of London-listed gambling group Rank Group Plc details that its transformation programme is delivering on ‘expected cost savings’.

Reflecting previous trading updates, Rank details that it has recorded improved digital revenues (+2%), whilst its venue like-for-like revenues remain flat.

Nevertheless, the UK gambling group reports an improvement for its ‘Grosvenor venues’ which has stopped its like-for-like declines recorded in the first two-quarters of 2018/19.

For Grosvenor venues, Rank details that ‘strong London trading in the quarter was offset by a disappointing provincial performance’.

Meanwhile, Rank’s ‘Mecca venues’ like-for-like revenue was down 1% in the quarter, with the company detailing that ‘lower customer visits partially offset by higher spend per visit’.

Rank maintains a positive momentum with regards to its digital division (+2%), reporting that ‘Grosvenor digital’ grew GGR 6% in the quarter with net gaming revenue (‘NGR’) up 15% following targeted action to manage bonus expenditure more efficiently.

Further online growth saw ‘Mecca digital’ NGR up10% in the quarter on flat GGR.

Rank’s digital division is yet to incorporate the like-for-like comparatives of Spanish online gaming site YoBingo (acquired May 2018), with Rank detailing that the asset’s performance is in-line with expectations.

Concluding its update, Rank governance declares that expectations for the full year remain unchanged.