Rank Group increases revenue, board confident on outlook

Rank Group’s revenue for first 15 weeks of its new financial year has risen by 7%, giving the board confidence in the company’s prospects for the full period.

The FTSE 250 casino and bingo company released a trading statement on Thursday that showed revenue from its 58 Grosvenor Casinos led the charge, posting an increase in revenue of 12% compared to the same period last year.

That was driven by a 56% increase in digital revenue for the period.

The company’s 88 Mecca bingo clubs saw much smaller revenue growth, rising just 1% for the period.

However excluding the impact of clubs openings, closures and relocations, Mecca posted a like-for-like revenue growth of 3%.

“The board is encouraged that all of the group's businesses continue to make progress in line with management's expectations,” the statement noted, “and it remains confident in the group's prospects for the year.”

Rank Group chief executive Henry Birch said the group has had a good start to the financial year.

“We are seeing a continued strong performance from our Grosvenor Casinos brand, particularly in its digital channel and London casinos, as well as an improving admissions trend in our Mecca venues combined with good growth in Mecca's digital business.”

Birch said the company is continuing to work on its five strategic priorities, particularly the development of its new digital platform which is on track to be launched in the first quarter of 2016.