Rank Group predicts 69% growth for Q1
The UK casino and bingo group expects to report growth across all areas of its business.
UK.- Rank Group has announced that it expects to report annual growth of 69 per cent for the first quarter of its financial year. It said in a trading update that it expected to report growth across all areas, with revenue for the three months ending September 30 to hit £163.1m.
That figure would be in line with expectations. Although it expects to report growth in all areas, the main driver remains Rank’s land-based venues, particularly Grosvenor Casino. It predicts quarterly revenue of £79.2m from the casino brand, up 209 per cent year-on-year after the impact of Covid-19 in 2020.
Rank said that revenue from London casinos is still down due to less tourism, but that non-London venues had recovered to close to pre-pandemic numbers.
Meanwhile, Rank predicts a 41 per cent rise in revenue from Mecca Bingo venues to £34m. The bingo halls have taken longer to recover as older and more frequent players prove slower to return. Rank’s Enracha in Spain is forecast to post revenue of £6.5m, up 20 per cent.
Digital gaming revenue
Rank continues to grow in the digital sector, with revenue expected to rise 4 per cent to £38.2m. Again, Grosvenor proved the strongest driver, with a 12 per cent rise in revenue aided by growth in the number of omni-channel players after the reopening of land-based casinos.
Mecca digital revenue is forecast to have risen by 6 per cent and international digital revenue by 11 per cent.
Rank expects revenue for the full year ending June 30 2022 to come in at between £700m and £750m, and EBIT to reach £50m – £75m.
Rank chief executive John O’Reilly said: “We have seen an excellent response from our customers as they return to our venues, with our colleagues doing a great job in ensuring they are being properly entertained within a safe environment.
“Whilst forecasting remains difficult as we emerge from the pandemic in an environment of volatile costs and numerous supply chain challenges, we are confident that trading will continue to improve across each of our businesses during the remainder of the year.”
Rank Group reported a £93m loss for 2020 due to the impact of the Covid-19 pandemic on land-based casinos and bingo halls. However, it is expecting a refund of £80m for overcharged VAT on B2 gaming machines.
