Rank Group Sees 131% Profit Growth in 2024
Rank Group reported a 9% rise in Net Gaming Revenue and a 131% increase in operating profit for the fiscal year ending June 30, 2024. Strong digital growth and venue performance, coupled with strategic investments in proprietary technology, drove the positive results despite rising costs.
Revenue and Profit Growth
For the fiscal year ending June 30, 2024, Rank Group reported strong financial performance, with a 9% increase in like-for-like Net Gaming Revenue (NGR) to £734.4 million. This growth spanned all segments of the business. Operating profit surged 131% year-over-year, reaching £46.5 million.
Chief Executive Officer John O’Reilly commented on the results, stating: “We are continuing to rebuild profitability following the impact of lockdowns and the material inflationary pressures experienced in recent years.”
Financial Position and Capital Expenditure
Rank’s financial health significantly improved during the period. The company recorded net cash before IFRS 16 of £20.9 million as of June 30, 2024, compared to a net debt of £5.9 million in the previous year.
Despite a challenging environment, employment costs increased by 11% due to wage inflation and the reintroduction of employee bonuses. Total capital expenditure for the year stood at £46.7 million. “Trading continues to improve due to ongoing investment in our people, our products, and the facilities within our venues businesses,” O’Reilly added.
Digital Sector and Cross-Channel Innovation
The digital sector was a key driver of Rank’s growth, particularly in its UK operations, where Grosvenor and Mecca recorded revenue increases of 20% and 21%, respectively. Spanish brands Yo and Enracha also contributed with a 16% rise in NGR.
John O’Reilly emphasized the role of proprietary technology in this success, stating: “With some important developments within our proprietary technology now in place, we are increasingly delivering a seamless and tailored cross-channel experience for our customers, leveraging our key area of competitive advantage.”
Positive Start to the New Fiscal Year
Rank Group has entered the new fiscal year on a strong note, reporting a 10% increase in Group NGR during the first six weeks. The company remains optimistic about the future, with the board proposing the resumption of dividend payments.
O’Reilly expressed confidence in the company’s outlook, saying: “We have started the new financial year as we finished the previous one, with good momentum across all businesses.” He further noted that “with inflation receding, disposable incomes improving, and investment continuing to be made in the customer proposition… we are confident in the future prospects of the Group.”
Future Outlook
Rank Group is poised to benefit from much-needed land-based gaming reforms, which are expected to modernize its casino and bingo offerings. The company anticipates continued growth across all business sectors, driven by ongoing investments and a strong pipeline of new initiatives.
O’Reilly highlighted this by saying: “We are well-positioned to take advantage of the much-needed land-based reforms which will help to further modernize our casino and bingo propositions to better meet the expectations of today’s customers.”
