Digital saves the day in Rank Group H2-2017 results

Digital operations were the stars of Rank Group plc’s H2-2017 results released this week, delivering revenues up 16 percent y-o-y at GBP 60.6 million against a backdrop of slow growth in the retail divisions as British punters turned increasingly to the online environment..

Digital operating profit was up 56 percent y-o-y at GBP 11.4 million.

Overall group revenue rose a marginal 1 percent year-on-year at GBP 378.1 million, with statutory revenue flat at GBP 354.2 million.

The group posted overall adjusted profit before tax up 17 percent at GBP 40.2 million on EBITDA of GBP 63.3 million – a y-o-y rise of 6 percent.

CEO Henry Birch said the result was a good one for the company, and singled out the digital division’s strong performance despite the introduction of new taxes on customer bonuses.

He said that Rank had, like its rivals, found the high street retail environment challenging, but that overall operating profit had increased 9 percent.

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,” Birch said, expressing confidence that FY expectations would be realised.

The company said that digital performance had increased the urgency to expand Rank’s internet offering, which would soon include the launch of bellacasino.com, a slots-led digital casino brand, in February and Luda.com, set to complement the new Luda venues, later in 2018.

Overall, the company said trading in the four-week period to January 28 had been in line with its expectations.