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Our strategy

Rank's aim is to be the UK's leading multi-channel operator. The Group looks to meet this goal through delivering against its five strategic pillars:

 

1. Creating a compelling multi-channel offer

In the markets where we operate, Rank is one of the few gaming companies in a position to provide customers a genuine multi-channel gaming offer. We have a number of key assets, including a portfolio of 149 venues, our membership-based models, our loyalty and reward programmes and the high levels of engagement that our team members enjoy with customers.

2017/18 progress

  • Trial of Grosvenor’s single account and wallet, Grosvenor One, in Grosvenor’s Stockport casino;
  • Dual play launched, the live streaming of electronic roulette and baccarat at the Victoria casino to the Group’s digital channels;
  • Roll-out of a new affiliate programme rewarding Grosvenor employees for converting retail customers to digital play; and
  • Mobile ordering of F&B in Mecca successfully trialled in seven additional venues; further roll-out currently under review.

2018/19 current plans:

  • Grosvenor One to be rolled out across Grosvenor’s casinos with a full marketing programme to be launched in H2; and
  • Continue development of an omni-channel service for Mecca customers.

Relevant risks:

  • Laws and regulations
  • Taxation
  • Changing consumer needs
  • Strategic projects
  • Customer data management

 

2. Building digital capability

Rank has built strong positions in venue-based gaming which we seek to replicate across our digital channels (online and mobile). In 2017/18, our digital operations generated 17% of Group revenue whereas digital channels now represent around 35% of Great Britain’s gambling market (excluding National Lottery), presenting a significant growth opportunity. We continue to enhance our capability in this area such that we can leverage our active retail customer base and meet their changing needs.

2017/18 progress

  • Acquisition of YoBingo to increase Rank’s digital presence in a high-growth and regulated Spanish digital market;
  • Enracha.es soft launched;
  • New Live Casino app successfully launched in August 2017 and performing well;
  • New Grosvenor and Mecca android apps launched with positive results;
  • Relaunch of Bellacasino.com on the new content management system; and
  • Launch new customer relationship management system, Adobe Campaign.

2018/19 current plans:

  • Support the ongoing growth of YoBingo;
  • Launch new content management system for grosvenorcasinos.com;
  • Deliver a suite of improvements to our promotion and bonus tools;
  • Appointment of new digital games suppliers to provide our customers with bespoke and exclusive games; and
  • Increase customer acquisition marketing investment underpinned by strong return on investment analytics.

Relevant risks:

  • Laws and regulations
  • Taxation
  • Changing consumer needs
  • Strategic projects
  • Customer data management
  • Third-party supply chain
  • Cyber security and resilience

 

3. Developing our venues

Our casino and bingo venues remain a material part of Rank’s business, providing entertainment for millions of customers each year and generating the majority of the Group’s revenue and profits. By continuing to invest in our venues (in terms of product, environment and service) and by creating new concepts, we are constantly evolving and enhancing the experiences that we offer to customers.

2017/18 progress

  • Opened three experimental Luda venues. Ongoing reviews of each venue is underway to address underperformance with a focus on their local market;
  • Utilisation of three unused casino licences (Glasgow and London);
  • Completion of refurbishments at The Rialto (formerly The Piccadilly) and The Golden Horseshoe casinos in London and the Soames casino in Manchester;
  • Refurbishment of the VIP area at the Barracuda casino completed;
  • Enhancement of The St Giles casino commenced with the installation of new high-impact signage and experiential gaming product;
  • External refurbishment of Mecca Beeston completed and new F&B offer launched;
  • Roll-out of 470 new digital gaming machines in Mecca’s venues incorporating server-based gaming and Ticket-In-Ticket-Out functionality;
  • Roll-out of new bingo concepts to additional bingo venues, with a total of 63 events held during the year;
  • £2.2m of property savings realised in the year following negotiations with landlords;
  • Condensed Mecca F&B menu rolled out across the estate with three different menu types (premium, core and reduced); and
  • Renewal of Belgium casino concession for another 15 years.

2018/19 current plans:

  • Completion of second phase refurbishment at Grosvenor’s Barracuda casino in London; and
  • Continuation of negotiations with venue landlords to re-gear and extend leases whilst reducing property costs.

Relevant risks:

  • Laws and regulations
  • Taxation
  • Changing consumer needs
  • Third-party supply chain

 

4. Investing in our brands and marketing

The development of a group of well-defined, relevant and resonant brands is critical for the success of our ambition. Rank possesses a number of well-known brands with strong levels of affinity amongst customers. Continuing to invest and develop these brands, alongside new ones, is an important part of increasing and sustaining revenues.

2017/18 progress

  • Launch of a new fully integrated ‘Meccarena’ marketing campaign, including TV advertising;
  • New customer relationship management (CRM) system launched;
  • Olly Raeburn appointed as chief marketing officer;
  • Improvements made to the Luda proposition driven by their individual local markets;
  • Development and implementation of more impactful external displays at two London casinos (The Rialto and St Giles);
  • Segmentation of retail estate to improve marketing effectiveness with tailored promotions;
  • Increased focus on customer communications to drive our venue customers to their complementary digital offer; and
  • Clear new customer propositions created for each London casino with bespoke marketing plans.

2018/19 current plans:

  • Increase marketing investment in digital across both meccabingo.com and grosvenorcasinos.com;
  • Comprehensive roll-out of Grosvenor One to Grosvenor’s casino customers to drive omni-channel service;
  • Completion of an integrated CRM and loyalty strategy including the launch of interactive reward pods in Grosvenor’s casinos;
  • Roll-out of new customer propositions for Grosvenor’s London casinos;
  • Continue the roll-out of Project Experience to drive improved customer journeys in both our bingo and casino venues;
  • Roll-out of new VIP strategy following the recent appointment of the new VIP casino team; and
  • New local marketing platform to be rolled out in H1 2018/19 providing clubs with better support and consistency over local promotional activity.

Relevant risks:

  • Laws and regulations
  • Changing consumer needs
  • Strategic projects
  • Customer data management
  • Third-party supply chain

 

5. Using technology to drive efficiency and improve customer experience

The customer is at the heart of our focus on increasing the use of technology in our business and driving efficiency. Improved customer experience and operating margins can help create a competitive advantage. We have identified a number of opportunities to harness technological developments to offer our customers more engaging experiences and to achieve sustainable growth in operating margins.

2017/18 progress

  • Four electronic roulette pricing experiments were carried out across eight casinos with the aim of improving efficiency and suitability of the offer;
  • A review of rostering software was carried out and concluded that an upgrade of our current system was appropriate;
  • Roll-out of additional side bets on electronic roulette;
  • Dual play, the live streaming of electronic roulette and baccarat at the Victoria casino to the Group’s digital channels;
  • Broadcast blackjack and baccarat piloted in four casinos to improve customer experience;
  • New bingo side bet launch on Mecca Max in Mecca’s venues; and
  • New product installed in the St Giles casino which includes the creation of a new slots area to accommodate tournament style gaming and the installation of more experiential roulette wheels.

2018/19 current plans:

  • Comprehensive roll-out of Grosvenor One to Grosvenor’s casino customer to drive omni-channel service;
  • Continue development of an omni-channel service for Mecca customers;
  • Refurbishment of 3,500 Mecca Max units;
  • £4.0m investment into new casino gaming machines;
  • Introduction of Ticket-In-Ticket-Out (‘TiTo’) for table gaming;
  • Self-service TiTo cash terminals to be installed across casinos to allow customers to buy in and cash out their TiTo tickets; and
  • Contactless payment at the casino’s cash desk.

Relevant risks:

  • Changing consumer need
  • Strategic projects
  • Customer data management
  • Third-party supply chain

1. Unaudited.