Online growth boosts Rank Group numbers
Increase in marketing spend sees digital revenues up 70% over the 18-week period ended 5 May
Revenues from Rank Group’s online business grew by 70% in the first 18 weeks of 2013, contributing to a 2% increase in overall turnover.
The operator, which today confirmed the acquisition of 19 Gala Casinos from Gala Coral Group, reported that strong growth in digital continues with revenues in the 18- and 44-week periods up 70% and 64% respectively, albeit from a low base.
Its land-based business was affected badly by freezing weather conditions at the start of the year. For the 18 weeks to 5 May, Rank Group’s over year-on-year revenues were down 2%, however continuing turnover was up 2%.
Ian Burke, chairman and chief executive of Rank Group (pictured), said he “remains confident” in the operator’s long-term growth strategy and its “increasing focus on the growth areas of digital and casino venues”.
The London-listed company made £5m last month when it sold its loss-making sports betting business Blue Square to Betfair. The deal saw Betfair acquire around 120,000 sports betting and gaming customers, while also obtaining all Blue Square brand assets, however no technology or personnel were included in the deal.
It was given the green light to acquire 19 of Gala Coral’s 23 land-based casinos following the publication of a report from the UK Competition Commission in February. These properties are said by the operator to contribute around £4m of EBITDA per annum.