Gaming company Rank Group (LON:RNK) released interim results for the six months ending 31st December that revealed a bumper increase in underlying operating profits.
Underlying operating profit pre IFRS jumped 70% helped by stronger digital revenues, cost savings and the acquisition of Stride.
Rank group said the Stride acquisition contributed £1.4m of operating in the period.
Like for like sales were also strong with the Grosvenor brand up 21% and Mecca seeing revenue rise by 13%.
“Rank Group figures look strong, as does the share price. Although, despite a bumper increase in underlying profit before tax of £52.9m vs 30.5m, they have remained cautious over the post-transition relationship with the EU,” said John Woolfitt, Director of Trading at Atlantic Capital Markets.m
“Generally Rank Group are in a very healthy position, and with the share price up in a market that is down today, it certainly looks like investors agree.”
“The market is pleased to see steady growth in their digital revenues driving a 70% increase in underlying operating profits. Today’s results pay testament to the confidence in the Rank Group share price over the past 12 months.”
“Despite reservations from the board over Brexit, investors are certainly betting Rank Group can continue their strong performance through 2020.”
John O’Reilly, Chief Executive of The Rank Group was also upbeat on the results saying “we are pleased with The Group’s first half performance which demonstrates that the transformation programme is delivering the right results. The revenue growth in our digital business and across our Grosvenor and Enracha venues shows that we are moving in the right direction in key areas of our business. We remain on track and are confident in our ability to deliver operational and financial improvements underscored by a relentless commitment to delivering exciting, entertaining and safe gambling environments and experiences for our customers.
The successful integration of Stride into our business will ensure that we benefit from strong synergies, proprietary technology and a first-class digital team, all of which will position us well for the second half of the year. These are a good set of numbers and are a testament to our committed and talented colleagues across the Group who have worked hard to deliver them.”
Shares in Rank Group (LON:RNK) were up 1.4% in Thursday morning trade.