UK-listed gambling operator Rank Group’s digital division reported a 56% rise in operating profit despite new taxes on customer bonus offers.
On Thursday, Rank released its fiscal H1 report, which saw like-for-like revenue (before customer incentives) essentially flat at £378m in the six months ending December 31, 2017.
H1 earnings (pre-exceptional items) improved 6% to £63.3m and operating profit gained 14% to £41.7m. Meanwhile, statutory results showed pre-tax profits falling 7% to £32.8m, thanks mainly to nearly £6m in impairment charges from two Grosvenor Casinos in Dundee and Didsbury.
However you wish to slice it, Rank’s UK digital operations were the belle of its ball, reporting revenue rising 16% to £60.6m and operating profit up 56% to £11.4m. Rank CEO Henry Birch hailed the “particularly strong” digital results, especially following the recent application of gaming duties on customer bonuses.