Reporting on its preliminary 2014/15 corporate performance (year ending 30 June), FTSE 250 listed gambling operator Rank Group Plc was pleased to announce top line growth on all key performance metrics.
A strong 2014/15 performance would see the operator record a 4% uplift in group revenues to £738 million, Rank Group would report year-end operating profits of £84 million up 16% on the corresponding periods £72.4 million.
Detailing performance insights, Rank Group governance were pleased to note that its operations had recorded growth in both its retail and digital business divisions.
Rank’s digital operations saw a 66% surge in revenues to £22.3 million (2013/14 – £13.5 million). A stronger revenue performance would see Rank post digital profits of £3.1 million (2013/14 loss of £900,000).
Its positive digital performance had been driven by increased player activity, with Rank noting improved operational efficiencies which helped improve cross-over player engagements from retail to its digital businesses.
Retail operations which accounted for 94% of corporate revenues, saw a 6% increase in yearly revenues combined with profits of £34 million (2014/15 – £27.9 million). The operator detailed that it had seen recorded a strong customer footfall on venues, highlighting strong uplifts in the London area.
Net profits of the division had been aided by improved win margins in H2 combined with a better management systems of VIP (high-value) customers. Rank governance further noted that its Mecca Bingo retail operations had been helped by a 50% cut on bingo duty announced by Chancellor George Osbourne in March 2014.
CEO Henry Birch was pleased with the operational improvements undertaken by all business divisions in Rank Group. Birch maintained that the operator had recorded yearly growth in both divisions despite increased costs, new tax charges and a more competitive business conditions.
“I am delighted to be announcing a significant improvement in our performance with a strong set of results and profit growth across all our brands,”
“We firmly believe that alongside growth in digital gambling, there will continue to be sustained demand for venue-based gambling in bingo clubs and casinos which offer an experience that cannot be digitised,”
“Moreover, we believe that consumer trends will increasingly favour companies that can offer services across digital and retail channels and successfully offer a joined-up experience to our customers.”
Rank Group 2014/15 Performance Overview