Rank Group reported that it made “good” progress in both digital and its land-based business in Q3, as well as a 6% increase year-onyear in revenues.
In a recent trading update, Rank reported that the group’s revenue in the quarter ending 31 March had been PS182.3m ($227.4m/EUR212.8m). The Q3 numbers are displayed on an like-forlike basis.
Rank’s main revenue source is still the land-based Grosvenor venue, despite the fact that it has shown the lowest growth. Grosvenor’s venues generated PS80.0m of revenue in Q1, up 3% from last year.
Rank reported that a 5% increase in visitors was recorded during this period despite the fact that Q3 is a quieter season. The average weekly Net Gaming Revenue (NGR), which is a measure of gaming revenues, increased by 2% on an annual basis to PS6.2m. The figure achieved by Rank is in line with its goal to achieve a weekly NGR of PS7.0m from Grosvenor’s venues.
The revenue for Mecca Bingo venues increased by 12%, to PS37.3m. Rank attributed this to a 5% increase in visitors, compared with last year. Rank also saw a 7% increase in the average spend per visitor, thanks to “strong” trade over Mother’s Day weekend and Easter.
Enracha, Rank’s Spanish venues division, had more success on the land. Revenues increased by 9%, to PS10m.
Rank’s digital revenue continues to grow in Q1
In Q1, digital revenue was up 6% at PS55.0m. In the UK, digital revenues were up by 4%. Meanwhile, in Spain, they increased by 20 percent.
In the UK Mecca NGR grew 21%, but Grosvenor only 1%. The latter was attributed to the weaker gaming margin and some large customer wins.
Other UK digital brands saw their NGR drop by 13% due to planned reductions in investment in marketing. Rank did note the impact that a new Content Management System would have on both Mecca and Grosvenor’s online sites. The system went live during Q3, and according to Rank, it will increase operational efficiency as well as speed of market enhancements for customers.
Revenue for the year to date reaches PS544.9m
In terms of how the Q3 has affected Rank’s year-to date, the revenue reached PS544.9m for the nine-month period ending in March. The revenue is up 8% from the same time last year.
The revenue from Mecca Venues is also 10% higher, at PS104.5m. Enracha’s venues division also saw a 9% increase in revenue to PS29.5m.
The digital sector saw a 7% increase in revenue to PS163.4m during the period.
Rank’s performance in April has improved its outlook for the year. It expects that the operating profit of its year-end 30th June will be on par with what it had expected.
John O’Reilly, CEO of the company said: “We are making good progress in both our online and offline businesses.” The board has set high expectations for Q3 trading.
Performance continues to improve. The white paper of the government contains important reforms relating to land, and we are looking forward to implementing them in the next few months.
O’Reilly spoke recently about Rank’s “good position” in order to reap the benefits of the reforms outlined by the whitepaper. Rank anticipates that the Grosvenor Casino will double its gaming machine count as a result of the reforms. The proposals would allow for electronic payment in bingo halls and casinos.
Sell Passion Gaming shares at Rank
Rank also announced that it has agreed to sell its stake in Passion Gaming (an Indian online rummy company).
Rank did not disclose the financial terms, but said that the fee agreed upon was a nominal consideration. Rank also did not disclose which company acquired the stake.
In the next few weeks, we expect to finish this disposal.
