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UK – Rank’s operating profit down by five per cent

By - 27 January 2017

British operator Rank Group saw its operating profit drop by five per cent during the first half of the fiscal year due to increased inflationary and employment costs.

Operating profit dropped to £59.7m with the introduction of the national living wage, increased property costs and general cost inflation being highlighted as reasons for the decline by the company. Group revenue increased by two per cent for the six months ended December 31, 2016.

The owner of Grosvenor casinos and Mecca bingo hall believes its operating profit will improve during the second half and expects full-year results will be in line with market predictions. Digital revenue was up 11 per cent with the ‘digital platform stable and performing well’ whilst the company highlighted ‘improving trends in retail casino and UK digital in Q2 over Q1.’

Henry Birch, Chief Executive of Rank, said: “The first half of the Group’s financial year has seen challenging trading conditions for both our retail casino and bingo businesses, with strong comparable figures in the previous year. That being said, both businesses showed a year-on-year improvement from quarter to quarter. Our digital business continues to grow strongly and there remains significant potential for this channel as we deliver improvements in H2. 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. As a result, the Board expects that the full year results will be in line with market forecasts.”

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