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Transformation Efforts Boost Rank Profits

Mia Gardner | 26 Aug 2019

It’s been a tough year for The Rank Group, with overall profits showing a marked decrease to the previous year. However, it’s not all doom and gloom thanks to some major transformation programmes that were put in place in the second half of the financial year. These saw a strong halt to the decline and prevented the Group from losing even more money.

The full year may show an overall decrease in profits, but the chief executive of The Rank Group, John O’Reilly, says that he is pleased with the numbers when broken down into the year’s quarters. The entire second half of the year showed growth across the businesses, which means that their changes worked.

Digital Came Out Tops

Of the four reporting segments within The Rank Group, Digital was the clear winner for the financial year. It is the only segment that reported an actual increase on profits from the previous year. The segment managed to show a full increase of 17% on profits, which was unfortunately not enough to offset the decreases in the other segments.

Analysts believe that the main reason for the improvement in this segment was the Group’s major acquisition just before the new financial year began. The Rank Group bought YoBingo in May 2018 and it proved to be a popular purchase.

The other three segments, International, Mecca and Grosvenor, all reported significant decreases in profits for the year. However, they did all also show a major improvement in the second half of the year. This was thanks to the transformation programmes that began in December 2018.

What Did the Transformation Look Like?

One of the major changes that The Rank Group applied to their Grosvenor casinos was their operating model. The aim was to cut costs by making each centre run more efficiently. They improved the management structures and cut down on labour hours. This helped to make each facility operate at a lower cost due to their performances being simplified.

When it came to Mecca, The Rank Group ensured that they kept a tight leash on spending. The Group saw a drop in people visiting the casinos, which lead them to reduce spending on the operating costs of each facility.

Other changes include finding ways to improve their offerings across The Group to all of their customers. This means new games or improved machines in their land-based casinos, as well as better customer service for an improved experience. All of these efforts are set to continue into the new financial year and The Group is hopeful that they will see profits increase accordingly.

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