Publishing its full year trading update this week, Rank Group reported NGR was up 11 percent for the 12 months to 30 June, with the casino and bingo operator now at “an exciting inflection point” as new machine reforms come into effect this month.
Rank Group has announced like-for-like NGR for the 12 months to 30 June increased 11 percent to £795m, with the operator enjoying “a very strong year of earnings growth” despite wider economic headwinds.
Ahead of publishing its preliminary results for 2024/25 in August, the group posted a full year trading update on 10 July, which predicts full year underlying like-for-like operating profit for the period will reach “at least £63m.”
“We have enjoyed a very strong year of earnings growth despite the significant cost and regulatory headwinds that we have faced from the start of Q4,” said CEO John O’Reilly. “The momentum experienced in the first three quarters has continued, with strong trading in Q4 resulting in our full year underlying operating profit being ahead of expectation.”
“We are at an exciting inflection point for the Group with the land-based casino reforms now law and coming into force from 22 July. At that point, we will begin the process of securing licence variations from local authorities in England and Wales ahead of the rollout of additional gaming machines across the Grosvenor estate to better meet customer demand.”
And for obvious reasons the fiscal focus at Rank will be on its casino business in the coming year – it has been swift to act on changes first outlined in the White Paper regarding the number of machines permitted on a casino floor. Two months ago, it announced plans to add 882 machines to the 1,367 already established across the UK Grosvenor estate.
In a demonstration of its continued confidence in the UK land-based sector, the company added it intends to reach a total of 3,112 machines before 2028, significantly boosting earnings from its Grosvenor brand; a key source of income.
Reporting on Rank’s third quarter results, iGB noted that revenue for the period increased 10.9 percent to £195.6m, adding that “the Grosvenor UK land-based casinos remained its primary source of revenue.”
“The venues generated £90.4m, an increase of 13 percent. Also in the UK, revenue from Mecca land-based bingo venues edged up 1.9 percent to £36.6m.”
Immediately following the most recent announcement, shares in Rank Group plc rose 4 percent to 143.10p.
Bingo is back
Rank has worked hard at its recovery, no more so than in its bingo operations which saw strong movement towards touching distance of a return to black.
Ahead of next month’s release of the 24/25 trading accounts, it’s important to reflect on how the division has been smartening itself up since it was roughed up so badly by Covid.
In like for like comparisons to 2023, net gaming revenue in ‘24 was 8 percent up, hitting £138.6 million – an extra £10.5 million in the group coffers.
That looked a million miles off in the aftermath of lockdown and the supply chain crisis, but Mecca has buckled down
Indeed, the remarkable turnaround from its £5 million ‘strategic pillar 3 investment’ plan was to virtually wipe out a Covid-legacy loss of £74.1 million in 22/23 – that stood at a comparatively meagre £1.7 million loss one year later – a 98 percent improvement.
The market has high expectations for 2024/25.
Rank pulling in the full houses
John O’Reilly said… “The momentum experienced in the first three quarters has continued, with strong trading in Q4 resulting in our full year underlying operating profit being ahead of expectation…
