Interactive revenues highlight Rank H2s
Talks ongoing over potential acquisition of Gala casinos.
Rank Interactive recorded a year-on-year revenue increase of almost 25% for the six months ended 31 December 2011, parent company Rank Group has announced in its results for the period.
Online operating profit for the egaming arm rose 14.3% for the half and 15.2% for the full year, coming in at £6.4m and £9.1m respectively.
The company cited the strong performance of the Mecca Bingo brand, which – along with fellow Rank Interactive brands Blue Square and Grosvenor Casinos – won the rights to distribute X-Factor branded content in December.
Meanwhile the operator’s talks to acquire Gala’s land-based casinos, first announced last month, are ongoing, with Rank explaining that “A further announcement will be made in due course”.
Overall group operating profit was up 3.4% for the full year, rising to £64.1m, with an 89% decline in Spanish profits following the country’s smoking ban having a noticeable impact.
The second half of the year also saw Rank receive a £253m tax windfall after the European Union found in its favour on an overpaid VAT claim.
Nick Batram, analyst with Peel Hunt, retained his firm’s ‘Buy’ recommendation, describing the company as being “At a point of inflection.
“Over the next 12 months the group will either succeed in acquiring Gala Casinos, or indicate its position on repaying excess capital back to shareholders. Either outcome should be positive for the share price,” added Batram.
The operator’s share price has risen 9% since the Gala casinos announcement in late January and 12.6% since the start of the year, sitting at 143 pence a share at the time of writing.