Rank hails digital growth despite group revenue decline
Rank Group has reported a 17% year-on-year increase in digital revenue for the 13 weeks to April 1, 2018, despite suffering an overall drop in revenue.
In a trading statement, Rank said that total group revenue dropped by 2% in the period, with revenue from its Mecca venues down 2% and its Grosvenor Casinos sites dropping 9%.
For the 40-week period to April 1, total group revenue remained flat, with digital revenue up 17% and Mecca and Grosvenor venues revenue down 2% and 3%, respectively.
In a statement, Rank said: “Following the group’s 2017/18 interim results statement, both UK venues businesses have been impacted by weaker than expected visits which have been compounded by two periods of cold weather.
“Grosvenor Casinos’ underperformance has also been exacerbated by a negative contribution from its VIP players.
“The board is cautious about the UK consumer outlook and as a result expects the group’s UK venues to continue to be impacted for the remainder of the 2017-18 financial year and into 2018-19.
“As highlighted in Rank’s recent interim results statement, a number of key operational actions have been identified and are being put into place to improve Grosvenor's performance over the medium to long term.”
Rank said that as a result of this, it expects full-year operating profit to amount to between £76m (€87.1m/$106.9m) and £78m.
The company plans to announce its preliminary results on August 16.
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