Operator News

UK – Rank aiming to be debt free by March 2019

By Phil - 1 February 2018

British bingo and casino operator Rank Group is aiming to pay off debt of £84m by March next year.

Rank, who owns Mecca Bingo and Grosvenor Casinos, had debts of more than £1bn in 2000.

Chief Financial Officer Clive Jennings revealed that the company would pay off its remaining £84m borrowings by March 2019, making it debt free. The news came following mixed six month results with revenues stable at £354m and net debt decreasing by £37m. Rank said it enjoyed continued strong digital growth with revenues up 16 per cent and operating profit up 56 per cent. Group operating profit before exceptional items was up 14 per cent.

The period saw the Grosvenor One single account and wallet solution successfully trialled in Grosvenor’s Stockport casino.
There were also refurbishments at Grosvenor’s Piccadilly and Golden Horseshoe casinos in London and the launch of “Dual Play”, the live streaming of roulette from Grosvenor’s Victoria casino to the Group’s digital channel. The bingo business meanwhile opened three new format “Luda” bingo clubs.

Henry Birch, Chief Executive of The Rank Group, pictured, said: “We are pleased to report a good set of results with adjusted profit before tax up 17 per cent and a particularly strong digital performance, with revenues up 16 per cent and operating profit up 56 per cent, despite the introduction of new gaming duty rules on customer bonuses. Along with much of the high street, we have faced a more challenging retail trading environment in the first half, but our combined venues businesses delivered an impressive nine per cent growth in operating profit.”

“2018 promises to be a busy year with continued positive changes, including the launch of a single account and wallet product across Grosvenor’s retail and digital businesses. We remain confident in the outlook for the Group with management’s expectations for the full year unchanged.”