Rank Group’s revenue grew by 11% in the first three months of this year, to PS179.6m ($217.9m/EUR206.8m). This growth was seen across its entire business.
In a recent trading update by Rank, the momentum that began in 2022-23’s second half continued through Q1. This update covered the period from 30 September to 31 October.
Rank’s Grosvenor venue business, with PS84.2m in revenue for Q1, was the main source of its revenues. This is a 13% increase. This was due to an increase of 9% in visitors and 4% in spending per visit, according to the operator.
London’s net gaming revenues were up by 8% over the last year. This was, however, higher in the rest of UK where it increased by 16 percent. The average gaming revenue in this segment increased by 10%, to PS6.4m.
The revenue of the Mecca venue business increased by 11%, to PS34.7m. This was, according to Rank, due to a 4% increase in visits by customers and 7% growth in spending per visit.
Rank reported a 9% increase in revenues from Enracha Spanish Bingo, which reached PS8.9m during Q1.
Digital operations saw a 7% increase in revenue, reaching PS51.8m. Rank’s UK brands Grosvenor & Mecca saw growth, and revenue generated from UK digital activity was up 6%. Mecca’s digital revenue was up 9% and Grosvenor’s digital gaming revenue was 14% higher.
Rank has also reported a revenue growth of 15% on a year-over-year basis for its digital Spanish offering.
Rank is expecting to meet its full-year goals
Rank claims that based on the performance of Q1, it will deliver revenue and profits growth for the full year in line with its expectations. This is in spite of what the company calls a challenging environment, due to inflation and high interest rates as well as discretionary consumer spending.
John O’Reilly, chief executive of Rank said: “I’m pleased to announce that Rank made a solid start this year.” After an encouraging second quarter in 2022-23 we maintained momentum throughout the first three months of 2023-24. We have also made progress towards driving profit and revenue growth for the entire group.
The company said that it would continue to focus on the growth of its digital division and prepare UK-based venues for modernizing reforms as part of the review by the Government.
These reforms will allow Grosvenor Mecca and its existing customers to meet their needs better.