The Rank Group Plc Reports Strong Performance in H1 2023/24 with Revenue and Profit Growth Across All Divisions
The Rank Group Plc., a leading entertainment and gaming company, has announced its interim results for the six months ending 31 December 2023, showcasing significant growth in revenue and profits across all its business segments.
Revenue and Profit Surge
The Group reported a like-for-like (LFL) Net Gaming Revenue (NGR) increase of 9% year-on-year during the first half of the fiscal year, with an underlying operating profit of £21.7 million, a substantial rise from £2.7 million in the same period of the previous year. This growth reflects the effective operational leverage within the Group and the success of its business strategies.
Despite facing high wage inflation, which saw an 8% increase in employment costs, the Group successfully offset these challenges through savings from declining energy prices and the strategic management of its operational expenses.
Strengthening Financial Foundations
In January 2024, Rank secured £120 million in new debt facilities, enhancing its financial stability and supporting ongoing investments in both its venue and digital operations. This positions the Group well to capitalize on future opportunities and anticipated reforms in UK gambling legislation.
Rank’s UK-based casino, bingo, and digital businesses have successfully passed Gambling Commission compliance assessments, reaffirming the Group’s commitment to regulatory compliance and responsible gaming. Additionally, the Group’s Environmental, Social, and Governance (ESG) strategy, particularly its Net Zero plan, has contributed to reduced energy usage and improved colleague engagement.
The Group’s operational highlights include a 10% LFL NGR growth in Grosvenor venues and a 9% growth in Mecca venues. The digital segment also saw an 8% increase in NGR, driven by strong cross-channel customer revenues and growth in the Spanish market.
Future Outlook and Dividend Policy
With a positive performance during the holiday season and a strong start to the new year, Rank remains optimistic about the future. The Group expects its full-year LFL operating profit to align with expectations, although it has not proposed an interim dividend, aiming to recommence payments when feasible.
John O’Reilly, CEO of The Rank Group Plc, expressed his gratitude towards the team’s efforts in driving the company’s transformation and navigating through challenging times. He highlighted the potential benefits of the upcoming regulatory reforms in the UK and the Group’s plans to expand its digital business into new markets, starting with Portugal.
Conclusion: A Period of Transformation and Growth
The Rank Group’s H1 2023/24 results reflect a period of significant transformation and growth, underpinned by strong operational performance, strategic investments, and a focus on sustainability and compliance. As the Group looks forward to the potential opportunities presented by regulatory changes and market expansions, it remains committed to delivering exceptional entertainment experiences and value to its stakeholders.