Digital the bright spot in latest Rank Group results

Digital operations were the stars of the latest Rank Group results report, covering the 40 week period to April 1 this year, with UK digital revenue growth up 17 percent compared to the same period a year ago.

The group’s land-based operations did not fare as well; like-for-like revenue for Rank’s Mecca venues dropped by two percent, with like-for-like revenue for its Grosvenor venues dropping nine percent as cold weather kept the punters at home, and high rollers scored significant wins.

“The board is cautious about the UK consumer outlook and, as a result, expects the group’s UK venues to continue to be impacted for the remainder of the 2017/18 financial year and into 2018/19. As highlighted in Rank’s recent interim results statement, a number of key operational actions have been identified and are being put into place to improve Grosvenor’s performance over the medium to long term,” management reported.

“Taking all the above into consideration, management now expect the group’s full year operating profit to be in the range of GBP 76 million – GBP 78 million.”

A year ago Rank reported a pre-tax profit of GBP 85.5 million.

The warning comes just a few weeks after chief executive Henry Birch said he was stepping down to join Shop Direct (see previous report).

In the early morning trading Thursday, the company’s shares slumped 15 percent to 182.8p.