Operator News
Rank – Tighter controls take a hold of Rank’s revenues
By Phil - 17 August 2017
Rank said that tighter regulations on money laundering alongside a drop in play at its bingo halls brought its full-year profits down.
Like for like revenues were up one per cent over the year with the group reporting overall revenues of £754m compared to £743.9m.
Rank highlighted the effects of ‘more stringent customer due diligence to address money laundering, proceeds of crime and problem gambling’ as a main course of its fall in profits.
Henry Birch, Chief Executive, said: “There is quite rightly increased pressure on all gambling companies to know their customers and know their sources of funds. This has affected business because in many cases, we get to the point of asking very big spenders to show us evidence of payslips or bank statements and they choose to go elsewhere with their money.”
The group said that it had strong second half operating profit performance generating £46.9m against £36.6m in the first half of the year.
UK digital revenue was up 15 per cent with profit increasing 63 per cent but a challenging UK retail environment led to a one per cent fall in like-for-like venues revenue.
Rank launched its first new retail bingo format, Luda, on 7 August 2017, with two more opening in planned for in the next months.
Two new digital brands were developed with Bellacasino.com soft-launched in July 2017 and Luda.com to be launched in 2017/18.
Rank’s new digital sports offer saw a refreshed digital poker offering launched in the year.
A new retail management system is in place in Grosvenor’s casinos which it described as an ‘essential building block for single account and wallet.’
It has signed a two-year grosvenorcasinos.com sponsorship deal with Fulham Football Club. Other highlights saw successful refurbishments of casinos in Nottingham and Leeds Westgate.
Mr Birch added: “After a challenging first half of our financial year, we are very pleased with our second half performance, especially with our digital business which delivered 63 per cent growth in operating profit for the year. We are excited about the roll-out of our new Luda bingo concept following the opening of the first venue on 7 August 2017. Additionally, the Group has put in place a number of digital, product and venue-based initiatives launching in the current financial year which we expect to drive top line revenues. The new financial year has started well and the Board looks to the future with confidence.”
