Rank boosts digital revenue with transformation plan

Rank Group, digital revenue, transformation, financials
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Rank Group has reported its revenue for the second six months of 2018 fell 2.5 percent to $480.7m, following “venue declines” across its UK Grosvenor sites where takings fell by 3.9 percent.

However, the company reported Q2 digital revenue for FY18/19 rose 5.1 percent to $90.8m, following significant investment in a group transformation plan throughout the latter part of the year.
“The first half of our financial year has been a tough trading period, I am however encouraged by the group’s improved performance in Q2,” said CEO John O’Reilly.
“The three-year transformation programme that we outlined at our Full Year results in August 2018 is now well underway with nearly 300 initiatives identified and tasked.”
Growth for the period was led by the firm’s Mecca Bingo online site, and Spanish-facing YoBingo! domain, acquired by Rank in May 2018 for $26.1m, and now delivering a 41 percent increase in revenue year-on-year, with its share of the Spanish digital bingo market rising 5 percent to 42.1 percent.
The digital growth strategy, helmed by chief transformation officer Jim Marsh, will see both Mecca and Grosvenor expand their online presence through the introduction of an omni-channel service in H218/19, with O’Reilly stating “the management team is positive about what can be achieved.”
Despite the positive outlook, operating profit for the digital segment dell 1.9 percent due to an increase in UK remote gaming duty on customer bonuses, with incremental RGD hitting $1.1m for the period.

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