Rank continues double-digit online growth in strong trading update
Grosvenor Casinos online arm reports 35% boost in revenues as retail slips 1%
Rank this morning reported a 19% rise in digital revenues for the 16 weeks to 15 October 2017.
Grosvenor Casinos led the firm’s growth, with digital revenues up 34%, while Mecca digital recorded an increase of 11%.
CEO Henry Birch told investors both brands “grew strongly in the period”.
Retail revenues fell 1% as the management’s expectations for the full year remained unchanged.
During the period, the retail business underwent a management restructure, with the formation of a single management team across the two core brands.
The new structure will retain distinct operations for Mecca and Grosvenor, but will allow for improved synergies and additional capability in key functions and roles.
A similar shift was made within the digital business earlier in the year, saving on operational costs.
In an analyst note this morning, Regular Partners wrote: “There is still a clear indication that online is pushing on an open door of growth.
“Retail/omni-channel businesses are now starting to restructure in order to address new consumer realities.
“While it might be tempting to see two retail teams into one as a cost exercise, the key to long-term relevance (even survival) is for retail gaming to recognise that it must do far more than sleepily provide the product that the licensing class prescribes.”