Rank Group reports marginal digital growth in Q3
The Rank Group has reported marginal revenue growth across its digital business in the third quarter of its financial year, though group revenue remained flat due to a lack of growth across its land-based operations.
Digital revenue at the Mecca Bingo and Grosvenor Casino operator increased by 2% on a year-on-year, like-for-like basis, during the three months to March 31. Rank only provided figures on the percentage changes in revenue for the period.
Grosvenor digital gross gaming revenue climbed 6% in the quarter while net gaming revenue was also up by 15%, following what Rank described as “targeted action to manage bonus expenditure more efficiently”.
Meanwhile, the Mecca digital business saw net gaming revenue increase by 10% in the quarter, with gross gaming revenue unchanged from the prior year figure.
However, the operator's land-based operations remained flat in Q3. The Grosvenor venues segment improved marginally following declines in both the first and second quarters, but failed to post any year-on-year growth for the period.
Revenue from Mecca venues was down 1%, reflecting a similar performance in Q2, but an improvement on a 6% revenue drop in Q1. International venues revenue was flat for the third quarter.
Rank noted that the results are posted on a like-for-like basis and do not include of club openings, closures, relocations and the contribution from YoBingo, which it acquired in May 2018.
The operator also said as its transformation programme delivered the expected cost savings in the quarter and remains on track, management forecasts for the full year remain unchanged.
Meanwhile, Rank has confirmed that Ian Burke is to step down as its chairman. Burke will not stand for re-election at the Annual General Meeting in October and the operator will now commence a search for a successor.
Burke joined Rank as CEO in 2006, going on to become executive chairman in 2011 and then non-executive chairman in 2014.
“I have enjoyed my time at Rank immensely and am extremely proud of what we have achieved as a company,” Burke said. “I have decided to step down as chairman in the knowledge that Rank has a strong management team and board which will take the business forward through its transformation programme.”
CEO John O’Reilly added: "Ian has played a key role at Rank for many years. I would like to thank him personally for his invaluable support and counsel since I joined the company last year.”
Burke’s impending departure comes after Rank last month also confirmed that Alan Morgan will leave his role as managing director retail on July 31 this year in order to pursue other opportunities.
Morgan joined Rank in September 2016 as managing director of the Mecca Bingo business, before taking on responsibility for the entire retail estate in November 2017.