Rank Group Profits Fall Despite Digital Growth of 15 Percent
The Rank Group announced mixed results for the last financial year. Visitors were down for both Grosvenor Casinos and Mecca Venues. Grosvenor Casinos recorded a 3 percent drop on revenues to £397 m while Mecca venues saw a 4 percent decline to £213.6 million.
On the positive side digital revenues were up 15% to £111.5m and a 63% increase in UK digital operating profit to £22.7 million which made things look better after a group pre-tax profit after exceptional items fell 7 percent to £79.7 million.
Rank explained the declines of their brick and mort casinos Grosvenor and Mecca Venues were down due to combination of “macro-economic conditions, customer due diligence, venue closures and competitor openings” which led to a 5% decline in customer visits.
CEO Henry Birch said that their second half was an improvement following their “ challenging” first six month, In a statement to the media he said, After a challenging first half of our financial year, we are very pleased with our second half performance, especially with our digital business which delivered 63 per cent growth in operating profit for the year. We are excited about the roll-out of our new Luda bingo concept following the opening of the first venue.”