Operator News
UK – Rank expects to increase Grosvenor’s weekly revenue to £7m even before doubling of machines next year
By Phil - 4 December 2023
British casino operator Rank expects its Grosvenor Casino estate to soon be generating £7m in revenue each week, even before what it sees as being a doubling of gaming machines next year due to proposals detailed in the Gambling Act review white paper.
Richard Harris, Chief financial Officer at Rank Group, believes the group can reach the landmark weekly total ‘largely through activity that is within our control.’
Mr Harris explained: “This is before the benefits of the Gambling Act review and before we make any material changes to the property estate. All-in, we expect to push the business well above £7m per week in the medium term. The revenue growth, the operator leverage benefit and the focus on efficiency will also lead to improved margins.”
In its last set of financials, its first quarter results covering roughly 90 days, Grosvenor generated £84.2m.
With regards to the White Paper, published back in April, he said Rank had been ‘working through the various consultations.’
“We believe the overall outcome for the group is positive and, in particular, allows us to significantly modernise the casino proposition in the UK,” Mr Harris explained. “The vast majority of our casinos will benefit and we expect to broadly double the number of gaming machines in the Grosvenor estate.”
The group’s bingo venues will benefit from changes to the 80:20 law, which will be revised to a 50:50 ratio of Category B and C/D gaming machines, adding that electronic payments ‘make the customer journey much simpler.’ Rank expects to be able to boost its market sahre from the current 27 per cent to 38 per cent that it currently holds.
Mr Harris tipped the bingo side of the company to reverse a loss of £5.8m last year ‘to a double-digit operator profit in the medium term.’ Rank should also be able to increase its digital revenue by eight to 12 per cent in the next few years. Rank expects to launch as the first online bingo operator in Portugal by the end of the year.
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