Rank Group’s bingo growth stagnates as emphasis shifts to digital

Rank Group’s bingo growth stagnates as emphasis shifts to digital

Monday, October 23, 2017 Posted by Michael Lawson
The results bear many similarities to the Group's H1 performance from earlier in the year

The Rank Group Plc’s quarterly trade statement has thrown up mixed results for the entertainment giant, with stagnating venue revenue contrasting with strong digital channel growth.

Announced at their recent AGM, Rank Group’s Mecca Bingo venues witnessed a 2% drop in like-for-like revenue.

This conflicted with considerable revenue growth of 11% for the Mecca’s digital channels.

Similar results were reflected in Rank’s H1 2017 performance, where they detailed a “challenging period” for retail while recording a 15% increase in digital revenue.

Many of these challenges stemmed from multiple cost increases for both Mecca and Grosvenor venues.

The statement also included structural and personnel changes that occurred during the period.

The Group commenced the creation of a single leadership team across its retail businesses, with the appointment of Alan Morgan as Retail Managing Director covering both Mecca and Grosvenor Casinos.

Morgan’s strengthened leadership team is made up of a string of new appointments: Debbie Husband joins from Travelodge as Grosvenor National Operations Director; Olly Raeburn assumes the role of Chief Marketing Officer having joined from Ladbrokes Coral; while Darren Wainwright joins from RNIB and Brighthouse as the Group Property Director.

There was also a departure announcement, with Grosvenor Managing Director Martin Pugh opting to leave the business at the end of the year.

Totally Gaming says: The Rank Group’s quarterly statement very much follows the trend outlined in its H1 2017 performance. Retail bingo has witnessed stagnation and minor revenue decreases, while the digital markets have seen sizeable growth. While the figures for digital will be viewed as a cause for celebration, the firm’s overall profit decline is an unavoidable issue. The Group must work hard to fight against the tide and improve this area, or risk further revenue decline.

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