The Rank Group unveiled its financial report for the third quarter, revealing robust revenue gains in Spain and Mecca Bingo.
The company declared that its digital and physical operations both made “positive” strides in the third quarter, with revenue climbing by 6% compared to the same period last year.
Rank Group’s total revenue for the three months ending March 31 reached £182.3 million (€212.8 million/$227.4 million). Third-quarter figures were calculated on a comparable basis.
Despite the smallest increase, land-based Grosvenor locations remain Rank Group’s primary revenue source. In the first quarter, Grosvenor locations generated £80 million in revenue, a 3% rise year-on-year.
Rank acknowledged that despite the third quarter being a seasonally quieter period, visitor numbers rose by 5%, impacting revenue. During this period, average weekly net gaming revenue (NGR) climbed by 2% year-on-year to £6.2 million. This figure aligns with Rank Group’s objective of achieving £7 million NGR per week from its Grosvenor venue business.
Regarding the Mecca Bingo venue business, revenue expanded by 12% to £37.3 million. Rank again attributed this to increased visitor numbers, up 5% year-on-year. Furthermore, spending per visit also increased by 7% due to Rank Group’s “strong” performance during Mother’s Day and Easter weekend.
In Spain, Rank Group’s Enracha venue division experienced greater success in its land-based operations.
In this timeframe, earnings climbed by 9% to £10 million.
Digital business performance in the initial three-month period remained steady, with earnings rising by 6% to £55 million. UK digital business earnings grew by 4%, while earnings in Spain jumped by 20% annually.
Focusing on the UK, Mecca’s net earnings rose by 21%, while Grosvenor only expanded by 1%. Rank attributed the latter to decreasing gaming margins and some substantial customer wins.
Net earnings for other UK digital brands dropped by 13% due to reduced marketing expenditures. However, Rank noted that the new content management system for Mecca and Grosvenor online platforms is anticipated to have an effect. The system will become operational in the third quarter, and Rank stated it will enhance operational effectiveness and accelerate the time to market for customer proposition enhancements.
Earnings to date have reached £544.9 million.
Regarding the effect of the third quarter on Rank to date, earnings for the nine months ending March reached £544.9 million. This represents an 8% increase compared to the same period last year.
Grosvenor venue earnings increased by 8% to £274.5 million this period, while Mecca venue earnings also increased by 10% to £104.5 million. Additionally, earnings from the Spanish Enracha venue division rose by 9% to £29.5 million.
In terms of digital business, earnings increased by 7% to £163.4 million during the reporting period.
Looking ahead to the entire year, Rank stated that performance in April continued to improve. As a result, the company anticipates its annual operating profit for the year ending June 30 to be in line with expectations.
John OReilly, the chief executive, stated: “Our brick-and-mortar locations and digital enterprise are both thriving.” “Trading for the third quarter aligned with the board’s projections.
“Performance continues to enhance. We anticipate the substantial land reforms suggested in the government’s white paper, which we hope to see enacted in the upcoming months.”
O’Reilly recently discussed how Rank is “well-positioned” to profit from the land reforms outlined in the white paper. Rank anticipates the process to double the quantity of gaming machines in its Grosvenor Casino property. The proposals will also permit electronic payments to be utilized in casinos and bingo halls.
Rank Disposes of Passion Gaming Interest
Separately, Rank has finalized an agreement to dispose of its interest in Passion Gaming, its online Rummy venture in India.
The financial terms of the transaction have not been divulged, with Rank indicating the agreed upon fee represents a “nominal consideration.” Rank also refrained from disclosing the company acquiring the interest.
The transaction is anticipated to be finalized in the forthcoming weeks.
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