Despite a strong performance in its digital arm, casino and bingo operator Rank Group saw its profits and revenues fall for the financial year to the end of June.

The UK leisure group, which owns Grosvenor Casinos and Mecca Bingo, reported a slip in total revenues from £709 million (US$913.27 million) to £707 million (US$910.7 million) during the 12-month period, while profits before tax dropped 7 percent to £79.7 million (US$102.66 million).

Pre-tax profits, on an adjusted basis, were up by 2 percent to £79.3 million (US$102.15 million). However, the group’s operating profit before exceptional items and group like-for-like revenue only grew by 1 percent. Meanwhile, a “challenging UK retail environment” has caused the like-for-like revenue and operating profit at Ranks’ venues to drop by 1 percent and 9 percent, respectively.

Revenues in Rank’s casino division fell 3 percent to £397 million (US$511.38 million), while operating profits declined by 14 percent. Rank CEO Henry Birch said one of the reasons for the company’s profit fall was the “more stringent customer due diligence to address money laundering, proceeds of crime and problem gambling.”