Rank Group reports 9% rise in revenue for H1
Net gaming revenue reached £362m.
UK.- Rank Group has reported net gaming revenue (NGR) of £362m for the six months ending December 31. That’s a rise of 9 per cent year-on-year. The group, which owns Mecca Bingo and Grosvenor Casino, reported operating profit of £21.7m, partially driven by operational efficiencies.
The group reported growth in all units, with Grosvenor UK revenue up 10 per cent at £167m. Visitor volume at Grosvenor land-based casinos was up 8 per cent and customer spending up 2 per cent. Mecca venues saw a 9 per cent increase in NGR at £67m and broke even after a loss of £4.8m in the same period in 2022. Rank noted that wage inflation has been offset by a drop in energy costs.
Rank Digital revenue rose 8 per cent to £108m, and operating income doubled £10m. The group hopes to improve margins further at the digital unit.
Group CEO John O’Reilly said: “After what has been a very challenging few years for Rank due to a wide range of external macro factors, we are starting to build revenues and, with our strong operational leverage, we are improving our profitability, with the Group delivering revenue and operating profit growth across all businesses.”
He added: “We are making good progress with our robust pipeline of development initiatives in both our UK and Spanish digital brands to accelerate revenue and profit growth. While we expect UK digital growth to be offset in the short term by the impact of new maximum online slot stakes and the impact of the statutory levy in the UK, we are confident in the opportunities of delivering a market-leading cross-channel experience for our Grosvenor and Mecca customers.
“I would like to express my considerable thanks to my colleagues across the Group who continue to excite, entertain and protect our customers, provide support to their local communities and contribute significantly to the progress we are making in the transformation of the Group.”
UK land-based casino modernisation
In an op-ed article for the Betting & Gaming Council (BGC), Rank Group director of public affairs David Williams last month urged the UK government to ensure the swift modernistion of land-based casinos. He called on the government to implement plans for the sector before a likely rise in the National Living Wage and the freezing casino duty bands, which the BGC estimates will cost the sector £5m a year.
Williams argued that the land-based casino sector will only be able to meet these costs if white paper modernisation proposals come into force first. These include proposals to update the rules on gaming machine proportions, to allow casinos to provide sports betting and to broaden electronic payment methods
