The Rank Group, a leading gaming operator, has released its trading update for the first quarter ending on September 30, 2023, highlighting a substantial increase in net gaming revenue (NGR). The results reveal the company’s strong performance, with notable growth in both its digital and venue-based operations.
Q1 NGR Growth:
During the first quarter of the 2023/24 fiscal year, the Rank Group reported impressive figures in terms of net gaming revenue (NGR). The Group’s like-for-like NGR for this period amounted to £179.6 million, marking an impressive 11% increase.
This remarkable growth was further broken down into two key segments:
Digital NGR: The digital arm of the business experienced a substantial 7% upswing in NGR.
Venues Like-for-Like NGR: The company’s physical venues demonstrated exceptional growth, with a 12% increase in like-for-like NGR.
Performance Highlights:
The report showcased several key performance highlights, underscoring the Rank Group’s successful Q1:
Grosvenor Venues: Grosvenor venues stood out with a remarkable 13% increase in like-for-like NGR. This growth was attributed to a 9% rise in visits and a 4% boost in spending per visit. Notably, London NGR saw an 8% surge, while the rest of the UK experienced a substantial 16% growth in NGR. The average weekly NGR reached £6.4 million, marking a significant 10% increase compared to the same quarter the previous year.
Mecca Venues: Mecca venues maintained their momentum, delivering an impressive 11% growth in like-for-like NGR. This growth was primarily driven by a 4% increase in customer visits and a substantial 7% surge in spending per visit.
Enracha Venues: The Spanish bingo business, Enracha venues, also contributed to the positive results, with a notable 9% NGR growth.
Digital Segment: The digital segment, which covers both the UK and Spanish operations, reported a 7% increase in NGR, highlighting a 6% uptick in the UK business and an impressive 15% rise in the Spanish market. Notably, two key UK digital brands, Grosvenor and Mecca, saw their NGR rise by 14% and 9%, respectively.
CEO’s Perspective:
Rank Group CEO John O’Reilly expressed his satisfaction with the company’s robust performance. He emphasized the company’s strategic focus on key growth initiatives within the digital business. The company is also preparing for upcoming modernizing reforms in the gambling legislation review by the UK Government, expected to be implemented by the next summer.
Future Outlook:
The Rank Group is set to announce its interim results for the six months ending on December 31, 2023, on February 1, 2024. The company’s strong Q1 performance sets a positive tone for the upcoming fiscal year, demonstrating its resilience and growth in both digital and venue-based operations.
The Rank Group’s Q1 trading update indicates a significant growth trajectory, with double-digit increases in NGR. The company’s strategic focus on digital growth and its commitment to navigating regulatory reforms position it favorably for future success in the gaming industry.