Rank sees revenues increase by 13 per cent with profit surging by 55 per cent
British bingo and casino operator Rank Group saw its gaming revenue in the first half of its financial year increase by 13 per cent to £401.8m with operating profit surging by 55 per cent to £32.9m
The operator said that ‘focused investment has driven revenue growth in all businesses, with particularly
strong growth seen in Grosvenor Casinos, up 15 per cent, and digital, up 14 per cent.
It said; “Grosvenor delivered £7.3m average NGR per week in H1, ahead of our expectations. We now expect Grosvenor to deliver c. £8.0m average NGR per week in the medium term, excluding the impact of land-based reforms, supported by continued improvements in our customer risk management systems, product offering and further enhancements in the quality of the customer experience.”
It added: “A rationalised Mecca venues estate grew NGR by six per cent on a LFL basis in H1, supported
by selected investments in gaming machine areas and external signage schemes. In digital, the launch of our in-house developed Grosvenor and Mecca apps is driving strong revenue growth. Our expectation remains that the digital business will grow LFL NGR by eight to 12 per cent CAGR and improve LFL operating margin by at least 600bps in the medium term, despite the negative financial impact of online reforms in the Gambling Act review. Preparations continue at pace to take full advantage of the legislative reforms for the UK’s land-based casinos which are expected to be implemented in the summer of this year.”
“All our businesses experienced strong trading through the Christmas and New Year holiday period and revenue has been in line with our expectations throughout January. Some trading variance is anticipated in Q3, followed by increased cost pressures in Q4 with Gambling Act measures, including the statutory levy and maximum online slot stakes, as well as the increase in employer national insurance contributions and the National Living Wage, impacting from April. We expect the benefits of the land-based legislative reforms to be seen in our next financial year.”
John O’Reilly, Chief Executive of The Rank Group Plc 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 a 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.”
“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. Thanks to my colleagues across the Rank Group whose commitment to delivering experiences that excite and entertain our customers has delivered this strong set of results.”
