Date: 18.04.2024

by Kajetan Sawicz

Last update: 08.05.2024 12:25

Rank Group Reports Positive Growth in Q3 Net Gaming Revenue

The Rank Group, a major player in the gaming and entertainment industry, has announced a increase in net gaming revenue (NGR) for the third quarter of the fiscal year.

For the quarter ending March 31, 2024, Rank reported a six percent year-over-year increase in NGR, totaling £182.3 million. This growth continues a positive trend for the fiscal year, with an eight percent increase in NGR year-to-date, amounting to £544.9 million.

Venue-Specific Growth Details

The Mecca venues, a key segment of Rank’s portfolio, saw the most substantial growth, with a 12 percent increase in NGR for the quarter, reaching £37.3 million. Year-to-date figures for Mecca venues show a 10 percent improvement, with total NGR at £104.5 million. This uptick is attributed to a five percent increase in customer visits and a seven percent rise in spend per visit, particularly during peak times such as Mother’s Day and Easter weekends.

Grosvenor venues, while generating the highest NGR at £80 million for the quarter, observed a more modest growth of three percent year-over-year. This period, typically quieter seasonally, saw an increase in visitors by five percent, with average weekly NGR slightly fluctuating.

Digital operations also experienced a healthy growth of six percent, bringing in £55 million for the quarter. Within this sector, UK digital operations grew by four percent, while Spanish operations saw a remarkable 20 percent increase.

Strategic Developments and Executive Insights

Rank is refining its strategy by divesting from non-core operations, evidenced by the planned sale of its stake in the Indian online rummy business, Passion Gaming. This move is expected to finalize in the upcoming weeks.

John O’Reilly, Chief Executive of Rank, commented on the overall progress: “We continue to make good progress across both our venues and online businesses, with Q3 trading very much in line with the Board’s expectations. Performance continues to improve, and we have the very important land-based reforms from the Government’s White Paper to look forward to, which we hope to start implementing in the coming months.”

Implications for Digital Strategy

The company’s digital strategy reveals nuanced outcomes; Mecca’s UK digital NGR soared by 21 percent, contrasted by Grosvenor’s marginal one percent increase due to weaker gaming margins and significant customer wins. Other UK digital brands saw a 13 percent reduction in NGR, attributed to strategic cuts in marketing investment, although improvements were noted in March and are anticipated to continue.

Both Mecca and Grosvenor have launched new Customer Management Systems (CMS) aimed at boosting operational efficiency and enhancing speed to market for customer propositions. In Spain, the Yo brands continue to deliver robust NGR growth, reinforcing Rank’s strong position in the market.

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