Rank buoyed by 15% digital revenue growth in full-year results

Rank Group recorded UK digital revenue growth of 15% to £111.5m for the 12 months ended 30 June 2017.

Digital operating profit for the year jumped 63% to £22.7m, driven by a strong performance by Grosvenorcasinos.com which saw a 44% increase in revenues.

Group CEO Henry Birch said Grosvenorcasinos.com’s live casino product performed particularly well following the launch of a new digital sports product and a refreshed poker offer.

Mecca’s online arm, which made up 60% of overall digital revenues, put in a more muted performance with a revenue increase of 2% to £67.6m.

But Birch added that a focus on slots and VIPs meant that growth accelerated in the second half.

The operator will further ramp up its online offering with new slots-led brand bellacasino.com and the digital arms of Enracha and new retail venue Luda set to launch in early 2018.

Group revenue was up just 1% as land-based revenues continued to slide with revenues down 3% to £397.2m for Grosvenor Casinos and 4% to £213.6m for Mecca Bingo halls.

Birch attributed the decrease to lower gaming margins and stricter customer protection measures.

Despite this drop, operating profits for Spanish brand Enracha rose 72% to £6.2m during the period.

Two venues in Glasgow and Leeds were closed in the 12 month period, however the firm is plotting to relocate the two licences. A further venue in Belgium is to be shut down in September.

Rank’s share price had dropped 2.5% to 234.5p at the time of writing this article.