Rank sees digital growth offset by land-based decline

Rank sees digital growth offset by land-based decline

Thursday, October 18, 2018 Posted by News Team
Finance
Trading update does not include contribution from Spanish YoBingo business

Rank Group has announced a 4.9% decline in revenue for the 16 weeks to October 14th, in a trading update ahead of its Annual General Meeting (AGM) later today. 

The fall in revenue comes primarily as a result of a 6.1% decline in revenue from its casino business, with digital revenue up 1.7% for the period. 

Grosvenor Casinos’ venues revenue was down 7.2% on a like-for-like basis, with the operator blaming the poor performance on reductions in handle and margin from high-spending customers. 

Rank said that its ongoing transformation programme had identified some early cost savings, which it said would mitigate Grosvenor Casinos’ venues decline.

Mecca’s venues, meanwhile, saw revenue fall 5% due to a decline in customer visits. 

Despite the retail struggle, the Mecca’s digital channel performed strongly, with revenue up 6.4% for the 16-week period. However Grosvenor Casinos’ online channel was impacted by stricter customer due diligence processes implemented from September 2017, with contributed to a 5.2% fall in revenue. 

The results do not include a contribution from YoBingo, the Spanish online bingo business acquired by Rank in May this year. Over the period YoBingo saw revenue growth 46%, and total group digital revenue would have been up 13.5% for the 16 weeks, had its contribution been included. 

The operator is to announce its half-year results on January 31st, 2019.

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