The Rank Group unveiled its financial report for the third quarter, highlighting positive advancements in both its digital and physical operations. Revenue climbed by 6% compared to the same period last year.
The company reported in a trading update that revenue for the three-month period ending on March 31 reached £182.3 million (€212.8 million/$227.4 million). Third-quarter figures are presented on a comparable basis.
Despite the smallest growth, Rank Group’s primary revenue source remains its Grosvenor locations in the United Kingdom. During the initial quarter, Grosvenor venues generated £80 million in revenue, up 3% year-over-year.
Rank Group observed that despite the third quarter being a seasonally weaker period, visitor counts rose by 5%, driving revenue expansion. Average weekly net gaming revenue (NGR) climbed by 2% year-on-year to £6.2 million. This figure aligns with Rank Group’s objective of achieving £7 million weekly NGR from its Grosvenor venues business.
In North America, Rank Group’s bingo venue business witnessed a 12% increase in revenue to £37.3 million. Rank Group again attributed this to a rise in visitor numbers, up 5% year-over-year. Additionally, spending per visit also increased by 7% due to “strong” trading over Mother’s Day and Easter weekends.
In Spain, Rank Group’s Enracha venue division experienced greater success in its land-based operations.
In the United Kingdom, Mecca’s net gaming revenue (NGR) expanded by 21%, while Grosvenor’s only increased by 1%. Rank attributes the latter to a decline in gaming profit margins and some substantial wins by patrons.
Here, income grew by 9%, reaching £10 million.
Rank’s digital operations saw consistent growth in the initial quarter, transitioning towards digital operations, with income rising by 6% to £55 million in the first quarter. UK digital income grew by 4%, while Spanish income expanded by 20% year-on-year.
Planned reductions in marketing expenditures resulted in a 13% decrease in NGR for other UK digital brands. However, Rank noted that the new content management system for Mecca and Grosvenor online platforms will have the anticipated impact. The system went live in the third quarter, and Rank stated it will enhance operational effectiveness and accelerate the launch of customer value proposition enhancements.
Looking ahead to the entire year, Rank stated that performance continued to improve in April. Consequently, operating profit for the fiscal year ending June 30 is anticipated to be in line with projections.
Income reached £544.9 million to date, and regarding the effect of the third quarter on Rank’s full-year performance, income for the nine months ending March reached £544.9 million. This represents an 8% increase compared to the same period last year.
Grosvenor venue income expanded by 8% to £274.5 million during this period, and Mecca venue income also grew by 10% to £104.5 million. Additionally, income from the Spanish Enracha venue division increased by 9% to £29.5 million.
As for the digital business, income grew by 7% to £163.4 million during this period.
John OReilly, the chief executive officer, stated: “Our brick-and-mortar and digital ventures are thriving.” “The third-quarter outcomes matched the board’s anticipations.
“Our performance is continually enhancing. We eagerly await the substantial land alterations proposed in the government’s white paper and hope to witness these changes enacted in the upcoming months.”
O’Reilly recently discussed how Rank is “strategically situated” to gain from the land modifications detailed in the white paper. Rank anticipates the process to double the quantity of gaming machines at the Grosvenor Casino property. The proposition would also enable electronic payments at casinos and bingo establishments.
Rank Disposes of Interest in Passion Gaming
In a separate development, Rank has consented to divest its holding in Passion Gaming, its online card gaming enterprise in India.
The financial aspects of the agreement were not revealed, with Rank indicating the agreed-upon fee represents “minimal compensation.” Rank also refrained from disclosing the entity acquiring the stake.
The transaction is anticipated to finalize in the forthcoming weeks.
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