European casino and bingo operator Rank Group has revealed that its operating profits have grown by 63% year-on-year in its full year results for the 12 months ending 30 June 2017.
Operating profits from its digital business jumped from £13.9m in 2015/16 to over £22.7m in the period 2016/17.The companies UK digital revenue also increased by 15% from £96.7m to £111.5m.
However, group operating profit before exceptional items and group like-for-like revenue only grew by 1% during the twelve month period.
Like-for-like revenue and operating profit at its UK venues dropped by 1% and 9% respectively, which the company attributed this to a “Challenging UK retail environment”.
The Group's Spanish operations, trading under the Enracha brand had a very strong year, with revenue and operating profit of €38.2m and €7.2m, growing by 7% and 53% respectively over the prior year.
Earlier this month, the company opened the first of its new Luda bingo halls in Walsall, Birmingham. Luda halls will offer bingo, slots, arcade games, combining this with a coffee shop and bar area, aiming to target a different demographic than its current Mecca offering.
Two more Luda venues are due to open in Leeds and Weston-super-Mare later this year with the company set to launch its Luda.com website towards the start of next year.
In a statement accompanying the results, Henry Birch, Chief Executive of The Rank Group Plc said:"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% 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."