Date: Thursday 14 Aug 2014
LONDON (ShareCast) - Bingo and casino operator Rank Group blamed tough markets and competition for a full-year revenue fall in its Grosvenor casino and Mecca bingo businesses, although acquisitions boosted profits.
Rank said like-for-like revenue from Grosvenor venues dropped by 4% although digital revenue lifted 38%. Mecca like-for-like venue revenue fell 5% and online revenue dipped 4%.
But Grosvenor's total revenue lifted 30% to £391.2m, driven by a £107.2m revenue contribution from acquired casinos, fuelling a 20% rise in operating profit to £56.8m.
Mecca's revenue decreased 3% to £288.2m as customer visits decreased in the year. Lower revenues and higher digital IT costs resulted in total brand profit declining 16% to £37m.
The impact of the acquired casinos drove group revenue 13% higher to £707.7m while group underlying pre-tax earnings before exceptional items rose 7% to £116m.
Adjusted pre-tax profit fell 4% to £62.5m, adjusted earnings per share were unchanged at 12.4p, net debt increased 32% to £137m but the group hiked its dividend per share by a tenth to 4.5p from 4.1p.
Rank said cost-cutting and tighter capital spending had resulted in a 21% rise in second half operating profit against a tough first half.
Chief executive Henry Birch said Rank was well-placed for growth after a government cut in bingo duty, major capital investment programmes planned at its Nottingham, Bournemouth and Luton casinos and full year benefits from the £8.9m investment in new products in the acquired casinos.
"In the short term, the introduction of a digital point of consumption tax will impact performance, but our strong brands and market leading positions ensure that the group is well placed and provide long-term opportunities."
Shares in Rank fell 2p or 1.2% to 168p at 08:07 in London.
PW
Email this article to a friend
or share it with one of these popular networks:
Currency | UK Pounds |
Share Price | 84.40p |
Change Today | 0.000p |
% Change | 0.00 % |
52 Week High | 103.40 |
52 Week Low | 62.50 |
Volume | 78,836 |
Shares Issued | 468.43m |
Market Cap | £395.35m |
RiskGrade | 325 |
Value |
---|
Price Trend |
---|
Income |
---|
Growth |
---|
Strong Buy | 2 |
Buy | 2 |
Neutral | 0 |
Sell | 0 |
Strong Sell | 0 |
Total | 4 |
Latest | Previous | |
---|---|---|
Interim | Final | |
Ex-Div | 13-Feb-20 | 19-Sep-19 |
Paid | 13-Mar-20 | 29-Oct-19 |
Amount | 2.80p | 5.50p |
Time | Volume / Share Price |
16:35 | 9,885 @ 84.40p |
16:35 | 1 @ 84.40p |
16:35 | 461 @ 84.40p |
16:35 | 1,370 @ 84.40p |
16:35 | 90 @ 84.40p |
You are here: research