The digital business was the star performer for Rank Group (RNK). Revenue in this division was up 15 per cent to £111.5m, with a 63 per cent improvement in operating profit to £22.7m. This was primarily driven by the 44 per cent increase in revenue to £43.9m from the Grosvenor casinos website, where a new digital sports offer was introduced. The gambling company is looking to expand its digital range with the launch of a live casino app and new mobile products for android.
Rank’s physical venues – which includes bingo halls – had a tougher time. Operating profit across its 151 sites fell 9 per cent to £88.2m, but management is determined to make improvements. This month the Luda bingo brand will open its first retail venue, with two more scheduled by December. It's also looking to redevelop the gaming machines in its bingo venues to encourage new customers to visit. Chief executive Henry Birch said only around 3 per cent of casino visitors use digital products, so a single 'wallet' product that can be used at venues and online will be launched this year to encourage customers to play at both.
Analysts at Peel Hunt expect EPS of 16p for the year to June 2018, flat on FY2017.
RANK GROUP (RNK) | ||||
ORD PRICE: | 238p | MARKET VALUE: | £929m | |
TOUCH: | 234-236p | 12-MONTH HIGH: | 244p | LOW: 181p |
DIVIDEND YIELD: | 3.1% | PE RATIO: | 15 | |
NET ASSET VALUE: | 100p* | NET DEBT: | 3% |
Year to 30 Jun | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
2013 | 625 | 42.7 | 7.4 | 4.1 |
2014 | 708 | 14.4 | 4.5 | 4.5 |
2015 | 701 | 74.5 | 15.1 | 5.6 |
2016 | 709 | 85.5 | 19.1 | 6.5 |
2017 | 707 | 79.7 | 16.1 | 7.3 |
% change | - | -7 | -16 | +12 |
Ex-div: | 21 Sep | |||
Payment: | 31 Oct | |||
*Includes intangible assets of £412m or 105p per share |