Rank Group has delivered a robust performance for the fiscal year ending 30 June 2024, showcasing a 9% increase in like-for-like (LFL) Net Gaming Revenue (NGR) to £734.4 million ($943 million). This notable growth spans across all segments of the business and is coupled with a substantial rise in operating profit and a strengthened financial position.
Impressive Revenue Growth Across Business Segments
Rank Group’s financial results reflect significant revenue increases across its various business segments. The company reported a 9% revenue increase at Grosvenor venues and an 8% rise at Mecca venues. The digital sector stood out with a 12% growth in revenue, driven by enhanced online gaming offerings. Particularly noteworthy is the performance of Rank’s UK digital operations. The Grosvenor and Mecca cross-channel brands achieved remarkable revenue increases of 20% and 21%, respectively. Additionally, the group’s Spanish brands, Yo and Enracha, contributed with a 16% rise in NGR, underscoring the broad-based success of Rank’s strategy.
Substantial Increase in Operating Profit
Rank Group experienced a significant leap in its underlying LFL operating profit, which more than doubled to £46.5 million—a 131% increase. This dramatic growth is a testament to the company’s effective operational improvements and leverage. The fourth quarter was especially strong, with a 14% increase in NGR, further enhancing the year’s overall financial performance. This strong profitability reflects Rank’s ability to capitalize on its operational efficiencies and revenue growth.
Strengthened Financial Position
The company’s financial health has markedly improved over the past year. Rank Group transitioned from a net debt position of £5.9 million in 2023 to a net cash position of £20.9 million as of 30 June 2024. This shift indicates stronger cash flows and a more robust balance sheet. Additionally, Rank Group maintains £120 million in debt facilities, providing a solid financial foundation and flexibility for future growth and investments.
Investments in Workforce and Infrastructure
Rank Group has continued to invest in its workforce and infrastructure, contributing to its operational success. Employment costs increased by 11%, driven by wage inflation and the reinstatement of employee bonuses. The total capital expenditure for the year reached £46.7 million, focusing on enhancing venues and proprietary technology. These investments are pivotal in improving operational capabilities and delivering a high-quality customer experience.
Strategic Developments and Future Outlook
As Rank Group begins the new financial year, the company has reported a 10% increase in Group NGR during the first six weeks, suggesting ongoing strong performance. The Board has proposed resuming dividend payments, reflecting confidence in the company’s financial stability and growth prospects. John O’Reilly, the Chief Executive, highlighted the strategic importance of recent advancements in proprietary technology. These developments are aimed at providing a seamless and tailored cross-channel experience, reinforcing Rank’s competitive advantage.
Looking ahead, Rank Group is preparing for upcoming land-based reforms expected from the Government. These reforms are anticipated to modernize Rank’s casino and bingo propositions, aligning them with current customer expectations. The company is eagerly awaiting the confirmation of the timetable for the necessary secondary legislation.
Earlier in the year, Rank Group also formed a strategic partnership with Quickspin to enhance its gaming offerings in the British market. This collaboration is part of a broader strategy to expand both digital and venue-based services, further solidifying Rank’s position in the market.
Rank Group’s fiscal year 2024 results highlight a period of significant growth and strategic advancement. The 9% increase in like-for-like Net Gaming Revenue, coupled with a substantial rise in operating profit and an improved financial position, demonstrates the company’s strong performance and effective business strategy. With continued investment in technology and infrastructure, and a positive outlook for future reforms and partnerships, Rank Group is well-positioned for sustained success and growth in the coming years.