Rank hails investments impact as revenue rises 13% in Q3

Rank Group said ongoing investment in its retail business and new developments within its digital offering helped drive revenue up 13% year-on-year in the third quarter of its financial year.

In a trading update, Rank said net gaming revenue (NGR) for the three months to 31 March reached £174.4m (€197.9m/$217.0m), with Rank reporting growth across all of its operating segments.

The group’s Grosvenor land-based casino business was the primary source of revenue in Q3, generating £77.9m in NGR, up 15% on the previous year. Rank put this down to an increase in visitor numbers across the UK, with average weekly NGR also rising 15% to £6.1m.

Revenue from Mecca bingo venues also climbed 9% year-on-year to £34.8m, with customer visits up 4% and spend per visit rising 5%. Rank also noted a 9% rise in average weekly NGR from these facilities.

In Spain, Rank’s Enracha venues generated £9.2m in revenue during the quarter, an increase of 8% on the previous year.

Turning to digital and revenue for this area of the business was 16% higher at £52.5m. Rank noted a 15% rise in UK NGR, with revenue from the Grosvenor brand up 23% and Mecca 15%, while Spanish digital revenue also jumped 19%.

For the year to date, revenue for the nine months to the end of March was 6% higher at £511.8m. Grosvenor venues NGR edged up 1% to £231.2m, Mecca venues NGR climbed 6% to £100.3m, Enracha venues NG was 19% higher at £26.9m, while digital NGR increased 11% to £153.3m.

“We are pleased that the momentum we saw at the start of the second half of our financial year has continued with positive NGR growth across all our businesses,” Rank chief exectuive John O’Reilly said. “Despite the challenging macroeconomic environment, the investments we have been making to improve the customer experience in our venues have helped drive the improved performance across both Grosvenor and Mecca. 

“The digital business is benefitting from the build out of enhancements to the customer experience on our proprietary technology and we have a strong pipeline of developments to continue to grow market share into the future.”

Rank expects to announce its preliminary full year results for on 17 August.