Rank Group has posted more than double profit in the second half of the last year. The UK Gambling Operator posted flying numbers after the transformation program started providing results.
Rank Group released the figures on Thursday. The net revenue of the Rank’s rose almost by 14% and totaled to around £397.4mn. The figure is for the last six months ending on December 31st, 2019. The operating profit was increased by a huge 117% to £56.1mn. The after-tax profit rose by 113% as per the data to £39.8mn. As per the report, the share of the company increased by 1.6% after Thursday.
After a prolonged decline, the dominant venues of Rank Group posted a 10% revenue jump to £312.3mn. The changes made to the retail casino model seem to be the reason behind the great results. Rank Group said that the changes made would ensure a stunning £19mn annual savings.
The Grosvenor Casinos Division reported 15% year on year growth and posted £198.1mn. Both the player stakes and the win margins saw an increase at the London venues. The international venues of the Rank Group also posted a 9% revenue jump to £24.6mn. The revenue jump could be one of the outcomes of the investment of Spanish Enracha. However, Mecca venues did not fare well. The business fell by 1% to £89.6mn. The customer traffic has reduced at Mecca business.
The digital revenue has boosted by 14% to £65.2mn. The digital marketing spending almost doubled for Rank Group in the recent past to £11.1mn. The digital revenue for Mecca however increased by 13%, the Grosvenor saw an increase of 21% in digital revenue as well. The YoBingo brand in Spain fell by 2% on a year-on-year basis, however, Rank Group is quite hopeful that it would turnaround.
Rank Group officially acquired Online Bingo and Casino, Stride Gaming in October. The group said that the Stride gaming contributed to £18.1mn in revenue and £1.4mn to operating profits.
The Stride Gaming revenue fell by 2% in the last quarter of 2019. However, if the results are compared, this is a better figure. Stride recorded a 15% year on year decline in the last quarter prior to the acquisition. It is believed that Stride Gaming would be able to make its way after the integration and achieves of the Rank group are implemented. Rank Group has planned to put £13mn synergies.
Rank Group made some personal changes as well. Alex Thursby was appointed Chairman after Ian Bruke departed. Karen Whitworth was also appointed as the Non-Executive Director.