RANK GROUP REPORTS H2-2016

RANK GROUP REPORTS H2-2016
 
Digital continues to perform but overall profit and EBITDA languish.
 
Online and land gambling company Rank Group plc has released its H2-2016 results to end December 2016, flagging the following key performance figures:
 
* Like-for-like group revenue up 2 percent at GBP 378.6 million;
 
* Digital revenue up 11 percent at GBP 52.4 million, with the digital platform stable and performing well; Digital operations restructured to drive further future growth;
 
* Like-for-like retail revenue flat in the period at GBP 326.2 million;
 
* Improving trends in retail casino and UK digital in Q2 over Q1;
 
* Debt burden 37 percent lower than prior year at GBP 34.5 million with leverage down to 0.3x;
 
* Continued strong dividend growth with interim dividend of 2.0p, up 11 percent year-on-year;
 
* Group EBITDA before exceptional items GBP 59.7 million (down 5 percent);
 
* Group operating profit before exceptional items GBP 36.6 million (down 9 percent);
 
* Adjusted profit before tax GBP 34.5 million (down 8 percent);
 
Henry Birch, chief executive, said:
 
"The first half of the group's financial year has seen challenging trading conditions for both our retail casino and bingo businesses, with strong comparable figures in the previous year. That being said, both businesses showed a year-on-year improvement from quarter to quarter.  Our digital business continues to grow strongly and there remains significant potential for this channel as we deliver improvements in H2." 
 
"Despite increased inflationary and employment costs, we have detailed plans to improve H2 operating profit and remain confident that the group will make good strategic progress in 2017.  As a result, the Board expects that the full year results will be in line with market forecasts."