In its recent trading news, the Rank Group has highlighted a significant 6% year-on-year increase in income for the third quarter, reaching an impressive £182.3 million. This growth trajectory shows the company’s solid performance across its digital and land-based gaming sectors.
Land-Based Revenue Overview
The Grosvenor venues continue to lead in terms of revenue generation for the Rank Group. Despite showing a modest growth rate of 3% in Q3, these venues remain a cornerstone of the company’s revenue stream. The increase in visitor numbers by 5% has contributed to a notable 2% rise in average weekly net gaming revenue (NGR) at Grosvenor, aligning with Rank’s strategic goal of achieving £7.0 million weekly NGR from its Grosvenor venues business.
On the other hand, the Mecca bingo venues have experienced a remarkable 12% earnings surge. This growth can be attributed to a combination of increased visitor numbers, which rose by 5% from last year, and a substantial 7% rise in spending per visit. Notably, this surge in gain coincided with strong trading periods during Mother’s Day and Easter weekends, indicating robust consumer engagement with Mecca’s offerings.
The Rank Group’s success extends beyond the UK, with its Enracha venues division in Spain witnessing a commendable 9% revenue increase, amounting to £10.0 million. This international growth underscores Rank’s ability to capitalize on diverse market opportunities and expand its global footprint.
Digital Growth and Operational Enhancements
Digital revenue saw a significant uptick of 6%, totaling £55.0 million in Q3. The UK digital sector experienced a 4% revenue increase, while Spain witnessed an impressive 20% year-on-year growth. Mecca’s digital net gaming revenue (NGR) surged by an impressive 21% in the UK, showcasing the strong performance of its digital gaming offerings. However, Grosvenor’s digital NGR saw a marginal 1% rise, attributed to a weaker gaming margin stemming from significant customer wins.
To further enhance its digital operations, Rank implemented a new content management system for its Mecca and Grosvenor online platforms during Q3. This system aims to improve operational efficiency and facilitate rapid market responsiveness for customer proposition enhancements.
Looking at the year-to-date performance, Rank Group’s income for the nine months ending in March reached a substantial £544.9 million, marking an impressive 8% increase compared to the previous year. This robust performance is driven by the continued growth of Grosvenor and Mecca venues, along with positive digital revenue trends.
As the fiscal year progresses, Rank anticipates that its strong performance will persist, with operating profit expected to align with market expectations for the year ending June 30. This outlook is bolstered by ongoing operational enhancements and strategic initiatives aimed at maximizing revenue potential.
CEO John O’Reilly said: “We continue to make good progress across both our venues and online businesses. Q3 trading is very much in line with the board’s expectations. Performance continues to improve. We have the very important land-based reforms from the government’s white paper to look forward to, which we hope to start implementing in the coming months.”
Stake Sale in Passion Gaming
Rank has announced its decision to divest its stake in Passion Gaming, an Indian online rummy business. While the financial terms of the deal remain undisclosed, Rank has emphasized that the transaction represents a significant strategic move for the company’s portfolio optimization.
Source: ”Spain and Mecca Bingo revenue surges as Rank hails Q3 progress”, igamingbusiness.com, April 18, 2024.