18 Oct 2018 07:00
18 October 2018
The Rank Group Plc
LEI: 213800TXKD6XZWOFTE12
Trading statement
At today's Annual General Meeting, The Rank Group Plc (LSE: RNK) (Rank or the Group) will announce the following trading update for the 16 weeks to 14 October 2018.
Rank today announces Group like-for-like revenue for the 16 weeks to 14 October 2018 has declined by 4.9%. On a channel basis, digital revenue grew by 1.7% and venues revenue fell by 6.1%.
Grosvenor Casinos' venues like-for-like revenue was down 7.2% in the period driven by a reduction in handle and margin from high spending customers. Mecca's venues like-for-like revenue was down 5.0% driven by a fall in visits.
Mecca's digital channel continues to perform well with revenue up 6.4% in the period. Grosvenor Casinos' digital channel was impacted by the more stringent customer due diligence implemented from September 2017, which contributed to a revenue decline of 5.2% in the period.
YoBingo, a Spanish digital bingo operation, was acquired in May 2018 and is excluded from the like-for-like digital revenue numbers above. In the 16-week period YoBingo continued to perform strongly with like-for-like revenue up 46.0%. Total Group digital revenue, including YoBingo's contribution in the current period, grew 13.5% in the 16-week period.
The transformation programme has identified some early cost savings for the full year which, in part, are expected to mitigate Grosvenor Casinos venues' revenue shortfall in the 16-week period.
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Forthcoming announcements
Rank will announce its half year results on 31 January 2019.
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The information contained within this announcement constitutes inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.
Ends
Contacts:
Rank
Sarah Powell - investor relations Tel: +44 1628 504 303
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Media Enquiries:
FTI Consulting LLP (PR adviser to Rank)
Edward Bridges Tel: +44 20 3727 1067
Alex Beagley Tel: +44 20 3727 1045
Notes to editors:
1. Figures are not adjusted for customer incentives.
2. Like-for-like excludes the effects of club openings, closures, relocations and the contribution from YoBingo's operations acquired in May 2018.
3. All comparisons are with the same 16-week period in 2017.
4. YoBingo's like-for-like revenue compares the revenue generated in the 16-week period under Rank's ownership with the same 16-week period in the previous year not under Rank's ownership.