Publishing its H1 2018/19 interim results (period ending 31 December), the governance of Rank Group Plc states that it has identified a number of core efficiency-led directives that it will undertake, as part of its ongoing corporate transformation programme.
The London-listed operator’s performance continues to suffer from ‘venue declines’ as its flagship Grosvenor properties adjust to a tougher UK retail back-drop, featuring stringent KYC checks and a reduced contribution from VIP players.
The tough adjustments see Rank record like-for-like group revenues of £366 million (H12017/18 – £375m), alongside a 17% EBITDA decline to £52 million (£63m).
Seeking to reverse Grosvenor declines, Rank governance details that it has focused on improving its casino infrastructure, trailing a Grosvenor ‘single account and wallet offer’ – Grosvenor One, during the trading period.
Despite its venue woes, Rank continues to record robust digital growth with period revenues up 15% to £70 million (H12017/18 -£61m), with governance detailing that new Spanish market asset YoBingo is performing ‘ahead of target’.
In its outlook, Rank governance details to investors that it has identified £10 million in corporate cost savings that it will implement within the first six months of 2019.
John O’Reilly, Chief Executive of Rank Group Plc said: “The first half of our fiscal year has been a tough trading period, I am however encouraged by the Group’s improved performance in Q2. “
“The three-year transformation programme that we outlined at our Full Year results in August 2018 is now well underway with nearly 300 initiatives identified and tasked. The programme will gain further momentum in H2 2018/19 and the management team is positive about what can be achieved. While there is lots to be done to deliver the revenue improvements and cost efficiencies identified, I am confident in the outlook for Rank and excited about the opportunities that exist.”