The Rank Group has reported group operating profit of £40.2m for the first half of the 2024/25 financial year, up 148 percent on the prior period, thanks in part to a 12 percent growth in venues NGR from £250.9m to £281.6m.

Rank Group has released its interim results for the six months ended 31 December 2024, which reveal a 148 percent increase in operating profit to £40.2m as like-for-like NGR across the group increased by 13 percent to £401.8m.

Citing “continued strong momentum with revenue and profit growth across all businesses,” the Mecca Bingo and Grosvenor Casino owner highlighted a marked increase in venue NGR, with turnover up 12 percent to £281.6m.

“We are pleased to deliver another good set of results as we continue to take advantage of the growth opportunities available to us and maintain a strong momentum across all of our businesses,” said CEO John O’Reilly. 

“Customers are responding positively to the investment we are making and to the experiences we are delivering both online and in our venues.”

During the reporting period, like-for-like NGR at Grosvenor venues rose 15 percent from £192.8m to £167.5m, while the same metric at Mecca sites increased by 6 percent, from £64.5m to £68.6m.

Grosvenor’s underlying LFL operating profit increased by 47 percent, from £14m to £20.6m, while the group reported only the £300,000 profit figure achieved by Mecca this half year.

The positive profit announcement comes despite what O’Reilly described as “inflationary employment cost headwinds,” with the impact on trade expected to become more noticeable in the coming year.

“Our venues businesses have been impacted in recent years by elevated levels of inflation, with Grosvenor and Mecca having to absorb cost rises in energy, supply chain and, most notably, employment costs.”

“Whilst many of the cost pressures have now eased, employment costs have risen sharply in recent years. LFL employment costs rose from £118.9m in H1 2023/24 to £133.6m, and we expect total FY 2024/25 employment costs to be up circa 10 percent as a result of the announced changes to employer national insurance contributions and the National Living Wage from April 2025.”

Despite the challenges, O’Reilly added “we are confident that our ability to both grow revenues and secure further cost efficiencies will help us to sustain our positive profit trajectory.”