Rank Group Takes Measures to Recover from Recent Profit Drops
Feb 12, 2014
Profits from Rank Group’s land-based casinos are dropping, so the company is looking to reduce costs.
While online and mobile casino games are becoming more and more popular, British gambling operator Rank Group has reported disappointing results for its land-based casinos, during the first half ending December 31, 2013. Operating profits for Grosvenor Casinos and Mecca bingo have seen a year-to-year drop, going down 23% from GBP36.1 million to GBP27.7 million.
Ian Burke, chief executive officer of Rank Group, stated: “As previously guided, the first half of the current financial year was challenging with like-for-like brand performances down on the same period last year.”
Last May, Rank bought 19 casinos from Gala and this has caused company costs to go up. In addition, the gambling operator spent almost GBP12 million on refurbishing the properties.
Next step: cutting costs
In order to recover from its financial setbacks, the company will now focus on cutting costs, as well as on stabilizing its bingo business and improving the design and offer of its Grosvenor Casinos. Rank Group will also strive to further develop its digital products, especially its mobile casinos.
The company has released a statement detailing its plans for the near future: “As previously stated, cost reduction and revenue enhancement actions are in place to improve results in the second half. Management anticipates operating profit in the second half, excluding the impact of the acquired casinos, will be broadly in line with the comparable period last year.”