Grosvenor growth helps Rank Group H1 digital revenues rise 11%

Rank Group has reported an 11% year-on-year rise H1 digital revenues, boosted by an improved performance from its Grosvenor Casino brand and a “stable” digital platform.

Digital revenues amounted to £52.4m for the six months ending 31 December 2016, up from £47.1m the previous year, which Rank partly attributed to last year’s migration to the Bede Gaming platform.

Rank’s digital revenue increase was driven largely by a 39% rise from its Grosvenor Casino business, while Mecca Bingo’s revenues remained flat during the six-month period at £33.1m.

The operator said Grosvenor Casino’s new sportsbook was being used by approximately 15% of Grosvenor’s weekly active customer base and had now become an “effective” retention tool.

However, the group recorded a 9% drop in digital operating profit for the period to £7.3m due to “higher operating costs”, but expected operating margins to “improve significantly” during the second half of its financial year.

“Our digital business continues to grow strongly and there remains significant potential for this channel as we deliver improvements in H2,” Henry Birch, chief executive of Rank Group, said.

“Despite increased inflationary and employment costs, we have detailed plans to improve H2 operating profit and remain confident that the Group will make good strategic progress in 2017.”

Group revenues grew 2% compared to the same period last year, amounting to £378.6m, and Birch said the Board expected its full-year results to be in line with market forecasts.