Rank Group revenues rocket in first half
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The London-listed gambling group saw strong sales from the Grosvenor casino unit.
UK.- Rank Group Plc has reported underlying revenue of £402m for H1, a rise of 13 per cent like-for-like. Meanwhile, underlying net profits rocked by 50 per cent to £33m. The results build on the trend seen in strong first quarter results.
The London-listed company noted a better-than-expected performance from its Grosvenor casino unit, which saw revenue rise by 15 per cent to £215.3m. Digital revenue rose by 14 per cent to £120.2m. The company cited improvements in customer risk management systems, product offering and the quality of the customer experience.
Meanwhile, Mecca Bingo revenue was up by 6 per cent at £66.3m on the back on improved customer engagement. Profit after tax was up by 228 per cent year-on-year to £28.9m.
Rank expressed optimism that its digital revenue will continue to grow at between eight and 12 per cent year-on-year. In December, it sold its UK digital multi-brand business to focus on its proprietary offerings. The sale brought in £3m up front, with another £4.5m due over three years. Meanwhile, the traditional gaming business stands to benefit from land-based gaming reforms expected between this year and next.
CEO John O’Reilly said: “We are pleased to deliver another good set of results as we continue to take advantage of the growth opportunities available to us and maintain strong momentum across all of our businesses. Customers are responding positively to the investment we are making and to the experiences we are delivering both online and in our venues.
“The second half will see inflationary employment cost headwinds and the negative financial impact of some of the measures in the Gambling Act, but we are confident that our ability to both grow revenues and secure further cost efficiencies will help us to sustain our positive profit trajectory.”
He concluded: “We are readying ourselves to take full advantage of the benefits of the land-based legislative reforms which we expect to see implemented from summer 2025. A programme of venue and product improvements is well advanced as we prepare to better meet the needs of our customers when the time comes.
“The benefit of our digital proprietary platforms is increasingly evident in our performance, as we continue to focus on product innovation and investment in our technology. Our vision to optimise a seamless and tailored cross-channel offering for our customers continues to be our priority, with some key initiatives landing in H2.”