SBC News Rank Group nets Q1 all unit growth against tough UK environment

Rank Group nets Q1 all unit growth against tough UK environment

Rank Group Plc continues to navigate a challenging UK business environment, but remains confident in achieving 2023/24 full year revenue and profit growth in line with expectations. 

Publishing its Q1 2023/24 trading update, the LSE gambling group recorded an 11% increase in like-for-like net gaming revenue (NGR) to £179m.

A positive start to year trading saw Rank record NGR growth across all business segments with Digital up 7% and Venues up 12% overall.

Grosvenor venues reported a 13% rise in NGR to £84.2m. Performance was attributed to a 9% surge in visits and 4% higher spend per visit, with London NGR up 8% and NGR in the rest of the UK up by 16%.

Casino properties recorded an average weekly NGR of £6.4m, marking a 10% increase from Q4 2022/23.

Further positives saw the Mecca business achieve a Q1 NGR of £34.7m (+11%) – maintaining its strong commercial momentum as the bingo venues registered a 4% increase in customer visits and a 7% increase in spend per visit.

Venue growth was supported by Rank Digital generating period NGR of £52m (+7%) – underscoring the improved online results for the flagship brands of Grosvenor and Mecca, up 14% and 9% respectively.  

Outside of the UK, Rank highlighted the continued growth of its Enracha, Spanish bingo business, registering NGR of £9m (+9%).  

Investors were notified of planned reforms, expected by next summer, to enhance the commercial performance of  Grosvenor and Mecca brands.

Concluding the trading update, Rank continues to observe British market headwinds of “high inflation and interest rates and consumer discretionary expenditure remaining under pressure”.

Group CEO, John O’Reilly, commented:  “After an encouraging second half of 2022/23, we have maintained the momentum through the first quarter of 2023/24 and have made good progress in driving revenue and profit growth across the group.

“Going forwards, we remain focused on delivering the key growth initiatives within our digital business and preparing our UK venues for the critical modernising reforms in the government’s review of the gambling legislation.  

“These reforms, which are planned to be implemented by next summer, will help Grosvenor and Mecca to better meet the needs of our existing and prospective customers.”

SBC News Rank Group nets Q1 all unit growth against tough UK environment

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