The Rank Group has published its preliminary financial report for the fiscal year ending June 30, 2023, showcasing a 6% increase in gross gaming revenue (GGR) to reach £681.9 million ($868 million). The report highlights significant digital business growth, with a 10% increase in revenue to £202.9 million. Various brands contributed to this growth, including Mecca, Grosvenor, Enracha & Yo, and Stride. Despite these positive revenue figures, the Group faced operational challenges, leading to a shift from operating profits to a loss.
Digital Business Expansion:
The digital arm of The Rank Group saw substantial growth, generating £202.9 million in revenue.
Key contributors to this digital revenue included Mecca (£72.6 million), Grosvenor (£57 million), Enracha & Yo (£24.1 million), and Stride (£49.2 million).
The acquisition of Stride Gaming in October 2019 has enabled the Group to operate various established brands.
Performance of Grosvenor and Mecca Venues:
Grosvenor’s UK venues reported a total revenue of £306.3 million, with £99.3 million coming from London venues and £207 million from the rest of the UK.
Mecca venues generated revenue of £134.1 million, contributing significantly to the Group’s overall results.
Enracha contributed £36.4 million to the Group’s revenue.
Operating Profit and Financial Challenges:
Despite increased GGR, The Rank Group experienced a notable decline in operating profits, moving from £162.6 million to a loss of £109.8 million. This shift was attributed to higher impairment charges and rising operating costs.
Net debt also saw a shift, moving from a positive £162.6 million to a negative figure of £172.9 million.
The Group repaid £34.5 million of its term loan in line with the loan’s amortization schedule.
Strategic Initiatives and Future Outlook:
The Rank Group applied for a license to launch its YoBingo online brand in Portugal, indicating expansion plans.
The Group increased its investment in colleague pay, raising average pay by 10% during the year.
While facing challenges such as energy cost surges and regulatory changes, The Rank Group remains optimistic about the return of customers to its Grosvenor and Mecca venues and anticipates improved performance in the coming years.
The Rank Group’s financial report for FY 2022/23 demonstrates robust GGR growth, particularly in its digital business segment. Despite operational challenges leading to a shift in profits, the company remains focused on strategic expansion and enhancing the customer experience at its venues. The Group’s commitment to innovation and adaptation positions it well for future growth and success in the gaming industry.