Rank lines up platform switch as tough year awaits
CEO Henry Birch speaks to eGR about his digital plans and news of an "imminent" supplier announcement
New Rank Group CEO Henry Birch says the group is well positioned for a challenging year ahead as plans to overhaul the digital side of the business gather pace.
Speaking to eGaming Review following Rank’s full-year results this morning, Birch said an imminent switch to a new supplier of its core digital platform will be central to its strategy, with an announcement due in the coming weeks.
“I think that [platform announcement] will have a good, positive impact not just on the Mecca business but on the Grosvenor business as well,” Birch said. “That’s a clear area of focus for us in the next year, announcing that decision and then acting on it and putting it into place.”
Rank’s digital businesses have had a mixed year as Mecca Bingo revenues continued to slump despite a much more favourable end to the year, while its Grosvenor Casino brand continued to grow from a small base.
Despite admitting that the last 18 months have been difficult for bingo in general, Birch believes his firm will benefit from the shake-up caused by December’s UK Point of Consumption (PoC) tax which he expects will see smaller bingo firms struggle to remain profitable.
Other UK-facing operators have warned of the PoC regime taking approximately 40% off their bottom lines which, with Rank’s Grosvenor and Mecca digital brands reporting a combined profit of £15m this year, could place renewed importance on the firm’s digital overhaul delivering sooner, rather than later.
“We’re not unduly worried,” Birch said. “There are a number of things in our digital business that we’re looking to do to improve the business and grow it. We’re pretty happy with where are.”
Birch also praised Mecca’s mobile offering which he considered to be outperforming the market. Having extended its contract with Playtech’s Virtue Fusion until 2017 in March, Rank also signed with casino supplier Quickspin to provide a serious of video slots to be integrated onto the Mecca Bingo desktop and mobile offerings.
Rank’s attention has now turned towards resolving platform issues, which Birch says has been needed to be changed “for a while now”, and is one of a number of “building blocks” the firm is getting into place throughout the 2014-15 financial year.
Having recruited former William Hill director of egaming Colin Cole-Johnson to lead its digital business, more digital hires are to be made in order to supplement the team, while improvements look set to be rolled out across the business.
“There are a number of things we’re going to do with regards to the digital business, not just in terms of people but we’ve also highlighted our use of data and data solutions, and improving our marketing as well,” Birch said.
And Birch backed the company’s “fantastic assets”, including the brands it has, to present opportunities for Rank to build on the progress made in H2 and return on the £6.7m investment it plans to make in digital throughout the year. “The challenge is how do we completely maximise the potential we have in the company,” he added.