Rank has reported a good start to the year, with revenue up 7% and Grosvenor Casinos performing particularly well. Our recent initiation report highlighted Rank’s opportunity to leverage its brands with an improved multi-channel offering. Digital revenues continue to grow at c 20% with migration to the new IT platform on schedule for early 2016. Our estimates are unchanged, with the potential for organic growth to be augmented by acquisitions at some stage given the group’s balance sheet strength. Yet the FY16e EV/EBITDA is still undemanding at 8.5x.
