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Digital growth helps Rank overcome falling visitor numbers
Rank Group reported a 14% rise in first-half operating profit as growth in digital revenues helped make up for falling visitor numbers at casinos and bingo halls.
Operating profit for the six months to the end of December rose to £41.7m from £36.6m a year earlier as like-for-like revenue rose 1% to £378.1m. Pre-tax profit fell 7% to £32.8m as statutory revenue remained flat at £354.2m.
Revenue from online bingo and gambling increased 16% to £60.6m, fuelling a 56% increase in operating profit at the digital division to £11.4m. Declines of 7% in visits to Rank's Grosvenor casinos and Mecca bingo halls caused like-for-like revenues to fall at both businesses. Mecca's operating profit fell 5% but Grosvenor's profit increased 15% as the business cut costs by £8.8m, mainly due to lower employment costs.
Henry Birch, Rank's chief executive, said: "We are pleased to report a good set of results. We remain confident in the outlook for the group with management's expectations for the full year unchanged."
Rank's shares were down 0.7% to 225.5p at 0938 GMT.
The gaming industry has faced intense criticism for encouraging vulnerable consumers to gamble. Rank said it would experiment with setting limits on slot machines in 2018, carry out a "cultural change programme" for its senior managers and introduce responsible gambling features at its digital business.