Rank H1 digital profit up 75%
Mecca Bingo and Grosvenor Casino brands post 16% increase in revenue after a strong performance from casino
Rank Group’s digital business this morning posted a 16% increase in revenues and a 75% hike in operating profit for the six months ended 31 December 2014 as both bingo and casino benefit from ongoing overhaul.
Digital revenues across its Mecca Bingo and Grosvenor Casino brands totalled £41.4m, up on the £35.6m recorded across the same period last year, while operating profit came in at £10.3m compared to the £5.9m posted in FY13-14.
Mecca Bingo’s digital EBITDA climbed 15% year-on-year to £9.1m on the back of a 6% rise in revenues and an increase in customer numbers attributed to the brand’s recent TV campaign and competitive sign-up bonus.
Product improvements have also seen the release of a new bespoke iPad app for Mecca, however the group did note a 4% slide in average customer spend per visit from £12.83 to £12.26 as a result of a growth in revenues derived from mobile devices.
Rank’s Grosvenor Casino continued to grow from its small base and turned a profit of £1.9m in the period, a stark contrast to the £0.9m loss incurred in H1 2014.
Digital revenue for the casino brand soared 71% year-on-year to £9.9m for the period, which Rank partly attributed to improved customer management at the business.
The group also revealed it will launch new television advertising campaigns over the course of the next six months and is to migrate to Bede Gaming’s digital platform while maintaining the option to acquire a stake in the platform supplier.
Rank Group chief executive Henry Birch praised the “strong set of results” and spoke of the new senior management team’s – completed with the appointment of Martin Pugh as Mecca Bingo MD earlier this month – potential to drive future growth.
“These appointments further strengthen the Group’s management team and ensure that we are well placed to take advantage of future growth,” Birch said.
Peel Hunt analyst Nick Batram said the group’s digital performance was “well ahead of expectations” despite the introduction of a Point of Consumption tax in the UK market, while Cenkos Securities analyst Simon French said current trading was in line with first half trends.