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RANK GROUP ISSUES TRADING UPDATE

Friday October 19, 2012 :  RANK GROUP ISSUES TRADING UPDATE
 
Group combines online and land results under its main brands
 
The UK publicly listed Rank Group has moved to brand-based reporting in its latest trading update; combining online and land based performances together under the group's principal brands Mecca, Grosvenor, Blue Square and Top Rank Espana.
 
The current update covers the 15 week period to October 14 2012 and features a 4 percent revenue growth driven principally by strong trading in Mecca's digital channel and Grosvenor Casinos land and digital operations.
 
Grosvenor Casinos brand grew total revenue by 8 percent, with growth across both channels and land venues reporting a 13 percent growth in spend per visits, which more than offset a 5 percent drop in customer visits.  The growth in digital revenue is encouraging, but comprised less than 3 percent of the overall brand revenue.
 
The Mecca brand grew total revenue by 1 percent, with a strong performance from the digital channel. Meccabingo.com continued to show strong growth at 11 percent, supported by a GBP 400,000 TV campaign. Mecca's land venues delivered flat revenue but a 3 percent increase in spend per visit offsetting a 2 percent decline in customer visits.
 
Top Rank Espana has held Euro revenue in line with the same period last year, in spite of the worsening economic situation in Spain.  In sterling terms, revenue fell by 9 percent due to adverse foreign exchange rates.
 
Blue Square Bet achieved a 19 percent increase in revenue partly driven by a GBP 2 million brand awareness campaign including TV advertising. This brand has commenced a transformational project to upgrade its sports products at an expected total capital cost of GBP 3.5 million.  This will accommodate an expected shift in sports betting customers to mobile as a device of choice. The investments specifically include:
 
• A partnership with the leading sports platform operator, Openbet, for an industry leading sports betting platform;
 
• The creation of a faster and more flexible multi-channel experience to support the 'no nonsense' brand proposition and to enable Blue Square Bet to offer sports products to over 2 million active customers of the other Rank brands; and
 
•  Improving the quality, content and range of its sports products
 
The update gives the latest developments on Rank Group's attempted acquisition of the Gala Coral group, noting that the company is assisting the UK Competition Commission with its inquiry into the proposed acquisition. Gala Coral Group and Rank are continuing their discussions in relation to appropriate amendments to the previously agreed terms in light of the reference to the Competition Commission.
 
Rank is still embroiled in a debate with the tax authorities regarding VAT on amusement machine revenues. The case has been referred back to the First Tier Tribunal and could take longer than originally anticipated to resolve, with a GBP 26.4 million VAT overpayment already paid back to Rank (see previous InfoPowa reports) at stake, augmented by a  GBP 4.4 million interest claim.

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Gambling News :

Is Gibraltar Out of Luck in US Tax Challenge - Gibraltar's challenge to the UK 15 percent point-of-consumption tax on online gambling operator revenues has already failed in the UK High Court, and it looks as if it may be rejected by the European Court of Justice too.

Quickspin are now available in Denmark - #quickspin The roll-out strengthens the long-standing partnership between the supplier and the operator, with Quickspin games already available on Vera&John’s websites around the world.

UCypher Launches - Indian entertainment and media entrepreneur Ronnie Screwvala has announced the formation of UCypher, an eSports tournament in which ten teams will compete.

Extreme Live Gaming In deal With Betsson - Extreme Live Gaming, a subsidiary of the Novomatic Interactive group, has announced a live dealer product deal with the Betsson online gambling group, with an initial launch planned for Betsson.com, followed by other brands in the Swedish group's portfolio.

Expansion Mode For BoyleSports - The Bambury premises are situated in Kildare, Meath and Dublin and will be refurbished and rebranded after acquisition, with the total of 31 staff remaining in employment..

Safecharge Q4-2016 - Online e-cash processing firm Safecharge, where Playtech's Teddy Sagi is a majority shareholder, released a trading update on its Q4-2016 performance Thursday, flagging record transaction processing volumes and revenues.

ASA Most Controversial Ads of 2016 - Paddy Power's penchant for advertisements that cause a stir saw the betting company mentioned twice in the Top Ten most controversial adverts of 2016 released by the Advertising Standards Authority in the UK Thursday.

Yggdrasi To Enter Italian Gambling Market - Yggdrasil’s Italian offering will include the company's collection of in-game promotional tools, BOOST, improving gamification, and the social sharing tool, BRAG. The company’s mobile product will also be available on its HTML5 iSense 2 platform.

888sport is the latest to join sports betting integrity body ESSA - Major operator 888sport is the latest to join sports betting integrity body ESSA with the company adding its customer base and betting market platforms to ESSA’s global anti-fraud alert and reporting system.

First partypoker live event to be held in Russia - Partypoker’s new live tour will kick off in Russia on March 24, 2017 at Sochi Casino and Resort in association with Club Poker Management. Online Day 1’s will start on partypoker on March 12, 2017.

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