The Rank Group Plc
Half-year results for the six months ended 31 December 2012
Key highlights
Rank has delivered a good performance in a challenging economic environment during the six months to 31 December 2012, driven by a 33% rise in operating profit at its Grosvenor Casinos venues and by an 11% rise in revenue at meccabingo.com
Group customer visits grew by 1% driven by success in its digital channels
Our fastest growing channel of distribution was mobile, which increased revenue by 172%
Adjusted profit before tax was down 4% due largely to one off additional marketing costs in Blue Square Bet and higher operating costs in Mecca venues
The Group has continued to focus its investment in its Grosvenor Casinos venues and across the Group's UK digital channels, with £13.1m invested during the period
The Competition Commission announced in December that its final report on our proposed acquisition of Gala Casinos is expected by 20 February 2013
Strong financial position with net cash of £62.6m
Ian Burke, chief executive of The Rank Group Plc said:
"Rank has delivered a satisfactory set of results in what is a challenging economic environment. Growth in customer numbers, visits and spend per visit across the Group has been achieved by strong performances in our Grosvenor Casinos venues and in meccabingo.com. Whilst adjusted profit before tax is slightly lower than last year, this is largely due to the increased marketing spend incurred by Blue Square Bet and higher operating costs in our Mecca venues.
Our focus remains on generating sustainable returns for our shareholders. This will be achieved by developing further our gaming-based entertainment brands as well as engaging positively with Governments to ensure that our activities make positive social and economic contributions to the jurisdictions in which we operate.
Allowing for the slow start to the second half we remain confident in our prospects for the remainder of the year and in our longer-term growth strategy."
