Rank Group (RNK)

Business description

Rank is a gaming-based leisure and entertainment company. Its Grosvenor and Mecca brands are market leaders in UK multi-channel gaming and it also has operations in Spain and Belgium. In FY17, 85% of revenues came from its venues and 15% from its digital operations.

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 753.0 128.2 77.4 15.4 15.6 8.5
2017A 755.1 128.8 79.3 16.3 14.7 8.1
2018E 785.4 131.1 79.6 16.1 14.9 7.5
2019E 816.4 137.7 86.7 17.5 13.7 7.1

Last updated on 06/12/2017

Investment summary

Rank Group aims to be the UK’s leading omni-channel gaming operator, with its Mecca Bingo and Grosvenor Casino brands. FY17 results highlighted the potential for Digital, which grew 15.3%, with a 20.4% operating margin. A recent trading update (16 weeks to 15 October) also demonstrated a pick-up in Mecca digital. The launch of the single wallet (piloting in autumn 2017) could be a game-changer for Grosvenor digital. Meanwhile, the Venues businesses are being reorganised with numerous cost-savings initiatives and remain highly cash-generative.

Last updated on 13/12/2017

Industry outlook

The DCMS has launched a 12-week consultation process (ending 23 January) after the findings of the triennial review. A stake reduction in FOBTs will not affect Rank, although other proposals (responsible gambling obligations, advertising guidelines) will have an impact on all online operators. Cost pressures include the National Living Wage and the extension of the UK 15% POC tax to gaming 'free play' (retrospective enforcement from 1 August 2017).

Last updated on 13/12/2017

Key management

Ian Burke, Chairman
Henry Birch, CEO
Clive Jennings, FD
Sarah Powell, Head of Treasury & Investor Relations
Paul Richardson, Group Director - Strategy & Development

Company address

Statesman House
Stafferton Way
Maidenhead
SL6 1AY
United Kingdom
01628 504000
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