Rank Group reports 69% surge in fiscal Q1 revenue
Digital NGR for flagship Grosvenor gaming brand up 11% driven by omni-channel following reopening of casinos
Rank Group has posted a 69% jump in like-for-like (LFL) net gaming revenue (NGR) for the three months to the end of September (Q1).
In a trading update to the City, Rank revealed that NGR for the Grosvenor venues business leapt 209% year-on-year (YoY) to £79.2m as its casino network reaped the benefits of the UK no longer being in lockdown.
However, this figure was still 20% down from two years ago and the firm’s fiscal Q1 2019/20 reporting period.
Meanwhile, the Maidenhead-based multi-channel operator said its Mecca bingo division saw a 41% uplift YoY to £34m, although visits from older and more frequent customers had been slower to return than other cohorts.
Rank said that while London continues to feel the impact of reduced tourism, NGR outside of London for its land-based casino business is “running at close to pre-pandemic levels”.
When it came to online, UK digital reported a 4% increase YoY to £38.2m. International digital was up 11% as NGR came in at £5.2m.
The operator said UK digital had “returned to strong growth” and that Grosvenor’s online arm grew by 12% driven by omni-channel players following the reopening of casinos.
Mecca digital experienced a 6% uplift in NGR, while the group stated that migration of Mecca onto the group’s proprietary RIDE platform remains on schedule for January 2022.
John O’Reilly, CEO of Rank, said: “We have seen an excellent response from our customers as they return to our venues, with our colleagues doing a great job in ensuring they are being properly entertained within a safe environment.
“Whilst forecasting remains difficult as we emerge from the pandemic in an environment of volatile costs and numerous supply chain challenges, we are confident that trading will continue to improve across each of our businesses during the remainder of the year.”
Based on the current trading performance, and assuming venues remain fully open, Rank expects group LFL NGR for the year ending June 30, 2022, to be £700m-£750m, resulting in projected EBIT of £50m-£75m.