Rank Share News (RNK)

* Focus on expanding online business with new products * Rank still scouting for M&A across the board - CEO * Online revenue rises 11 pct * Shares rise as much as 7.5 pct (Adds CEO, analyst comments, details, background) By Rahul B and Noor Zainab Hussain Aug 23 (Reuters) - British casino operator Rank Group Plc is still on the lookout for M&A opportunities aftertalks over a joint bid for William Hill Plc ended lastweek, and will expand its online services to strengthen itsbusiness. Gambling faces higher taxes and tighter regulations inEurope, and a series of mergers has intensified competition asfirms market themselves to younger sports fans betting viamobile apps. Rank and online gambling firm 888 Holdings Plc hadwanted to jointly take over rival William Hill but they gave uptheir pursuit on Thursday, saying they had not been able tomeaningfully engage with William Hill's board. Rank, whose business is predominantly in Britain where itowns the Mecca Bingo and Grosvenor Casinos chains, was stillscouting for deals, its head said on Tuesday, after the companyposted a 4 percent rise in annual profit but lifted itsfull-year dividend by 16 percent. "The company has been looking at M&A for the last 18 monthsand continues to do so and there is definitely a focus on thedigital arena for that," CEO Henry Birch told Reuters. He declined to say whether Rank was now pursuing a two-waydeal with 888. Adjusted profit before tax rose 4 percent to 77.4 millionpounds ($102 mln) in the year ended June 30, helped by effortsto strengthen its multi-channel offer. Revenue rose just 2 percent to 743 million pounds, butonline revenue grew 11 percent, Rank said. Birch said Rank would introduce a single account and singlewallet across its retail and online businesses, allowing itscustomers greater on-the-go access. It would also launch a newonline bingo brand in the second half of the financial yearending next June. Trading in the seven weeks to Aug. 14 had been "positive"and in line with management's expectations, the company said,adding it expected Britain's vote in June to leave the EuropeanUnion would have little or no direct impact on Rank'sperformance. "Rank management and, we infer, the majority shareholder,has made it clear that Rank is open to participating in theconsolidation of the sector. Today's results show that it willbe ready when the right offer comes along," Peel Hunt analystIvor Jones said in a client note. Rank is 56 percent owned by Hong Leong Company (Malaysia)Berhad, according to Reuters data. Rank shares rose as much as 7.5 percent after the companysaid it would pay a final dividend of 4.70 pence per share,pushing its full-year payout up 16 percent. Its dividend cover,however, was 2.4, down from 2.6 last year. The shares later paired gains to trade up 2.8 percent at227.8 pence by 0846 GMT. ($1 = 0.7580 pounds) (Reporting Noor Zainab Hussain and by Rahul B in Bengaluru,writing by Esha Vaish; Editing by Gopakumar Warrier and SusanFenton)