Long-time basket case Rank Group PLC (LON:RNK) delivered strong growth in first-half profits on the back of a double-digit percentage increase in net gaming revenue.
A 73% increase in underlying pre-tax profit to £52.9mln in the six months to the end of December from £30.5mln in the corresponding period of 2018 prompted chief executive officer (CEO) John O’Reilly to boast that the company’s transformation programme is delivering the right results.
The group’s underlying net gaming revenue (NGR) rose 10% to £377.5mln from £342.4mln the year before, with digital revenue up 14% to £65.2mln from £57.3mln the previous year while underlying NGR from its venues rose 10% to £312.3mln from £285.1mln.
The casinos operator said its Grosvenor venues increased NGR by 15% year-on-year in the period but the Mecca venues saw their combined NGR ease by 1%. NGR from international venues rose 9%.
The interim dividend was bumped up to 2.8p from 2.15p.
Current trading has been in line with the group’s recent trading update. Rank said it expects underlying operating profit for the full year to be between £113mln and £123mln including the impact of the new accounting standard, IFRS 16.
“The revenue growth in our digital business and across our Grosvenor and Enracha venues shows that we are moving in the right direction in key areas of our business,” O’Reilly said.
“We remain on track and are confident in our ability to deliver operational and financial improvements underscored by a relentless commitment to delivering exciting, entertaining and safe gambling environments and experiences for our customers,” the CEO added.
Shares in Rank were up 2.5% at 287.5p.