More land-based slots boost Rank Group’s quarterly revenue
Net gaming revenue was up by 9 per cent after Rank quickly rolled out more slots at Grosvenor Casino venues.
UK.- Rank Group, the owner of the Grosvenor’s casino brand and Mecca bingo, posted £210.2m in net gaming revenue (NGR) for the quarter ending September 30. That represents a 9 per cent year-on-year increase.
The uplift was largely driven by continued momentum in the group’s digital segment, which saw like-for-like revenue climb 13 per cent to £61.6m. Revenue from Grosvenor’s online platform rose by 31 per cent, while Mecca’s digital revenue grew by 9 per cent.
In contrast, Rank’s Spanish operations experienced a 1 per cent dip in NGR, attributed to previously disclosed platform limitations. The company anticipates a rebound in Q2 following the rollout of a new bingo platform for Enracha.
However, there was also significant growth on the land-based side, Grosvenor Casino venues generated £102.7m in NGR, an 8 per cent increase year-on-year, making it the group’s top-performing segment.
This was supported by a 5 per cent rise in customer visits and a 3 per cent uptick in spend per visit. Performance outside London was particularly strong, with 10 per cent growth, while London venues saw a more modest 4 per cent increase. A quieter summer in the capital was offset by gains at Victoria Casino, which reopened in July after a major refurbishment.
Grosvenor’s electronic table gaming revenue rose 11 per cent and revenue from traditional table games edged up 3 per cent, while gaming machine revenue jumped 12 per cent amid the rapid deployment of more B1 machines following the introduction of new UK casino regulations in August.
Mecca venues posted a 5 per cent revenue increase despite a 1 per cent decline in footfall, thanks to a 6 per cent rise in spend per customer. Meanwhile, Enracha venues in Spain also delivered a 5 per cent revenue boost.
Chief executive John O’Reilly expressed confidence in the group’s trajectory, stating that Rank remains on course to meet its full-year profit targets despite rising costs from national insurance, wage adjustments, and a new statutory levy.
He confirmed that 850 new gaming machines are expected to be installed across Grosvenor venues by the end of the current half. Rank is also exploring options to take advantage of a regulatory change that allows British casinos to host sportsbooks.
The Hippodrome Casino in London this month became the first land-based casino in the UK with a sportsbook after the change in regulations. Sports betting at the venue is being run by Flutter’s Paddy Power.
As with Entain’s results call, which also took place today, mention was made of the possibility of a gambling tax rise in the UK. O’Reilly stressed Rank’s existing tax contributions, saying the group paid £188m in taxes and reported £44.6m in post-tax profit last year. He said Rank is engaging with the Treasury to assess the impact of any changes on its operations, workforce and investment plans.
