Rank Group eyes further growth as revenue and profit rises across all divisions
Net gaming revenue hit £795.4m, a rise of 8 per cent year-on year.
UK.- Rank Group has published its preliminary full-year results for the 12 months ending June 30, showing a rise in both revenue and net profit across all divisions. Net gaming revenue hit £795.4m, a rise of 8 per cent year-on year. On a like-for-like basis, excluding the impact of new openings, closures and currency fluctuations, net gaming revenue was up by 11 per cent at £795.3m.
The pace of revenue growth outstripped a rise in costs, leading to a 272 per cent rise in net profit to £44.6m. Operating profit was up 128% at £67m and pre-tax profit up 248 per cent to £53.9m.
The digital segment saw revenue climb by 10 per cent to £235.7m. UK online revenue was up by 12 per cent at £208.8m, with growth of 22 per cent at Grosvenor and 11 per cent at Mecca. Other brands on Rank’s proprietary tech platform saw revenue dip by 5 per cent. In Spain, digital performance was flat due to platform limitations affecting YoBingo’s ability to host large prize bingo rooms from Q2. An expansion into Portugal has been held up but a licence is expected soon.
Land-based gaming on the up after strategic investments
As for land-based gaming, Grosvenor Casino venues generated revenue of £378.4m, a rise of 14 per cent year-on-year. Venues in London venues contributed £117.5m of that, rising 9 per cent. Overall visitation was up by 3 per cent and spend per visit by 11 per cent. Rank put the success down to venue upgrades and improved product offerings.
Mecca bingo venues saw revenue rise by 5 per cent to £140.3m. Visitation was steady but spend per visit rose by 5 per cent. Gaming machine revenue rose by 9 per cent and accounted for 41 per cent of all Mecca’s net gaming revenue.
In Spain, Enracha venues saw a 9 per cent rise in like-for-like revenue to £40.9m amid a 3 per cent increase in visitors and a 6 per cent rise in spend per visit. The refurbished Seville venue stood out, with revenue climbing by 14 per cent.
Looking forward, Rank expects to benefit from the UK’s recent land-based gaming reforms. The changes are allowing it to roll out more gaming machines and introduce sports betting at its venues.
CEO John O’Reilly said: “We have had another successful year, delivering revenue growth and profit ahead of our expectations. Both online and in our venues the customer reaction to the investments we are making in our businesses has been excellent. We are growing profitability and have a strong net cash position which will enable both continued investment and progressive dividend returns for our shareholders.
“With the long-awaited legislative reforms for casinos now delivered, the Group is at an exciting
inflection point. The Grosvenor business will benefit from the higher gaming machine allocations and
the introduction of sports betting which will better meet existing customer needs and increase the
attractiveness of casinos to a broader base of consumers.
“Our bingo businesses continue to strengthen as we invest in the quality and value of the customer offering. Our online business is tracking to the expected 8-12 per cent revenue growth rate as we drive the benefits of our proprietary technology and develop seamless cross-channel experiences for our customers. We have a very strong roadmap of opportunity to build further success for the Rank Group over the coming years.”
