Rank Group reports Q1 24 with 6% increase year-on.year

Lea Hogg April 19, 2024

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Rank Group reports Q1 24 with 6% increase year-on.year

“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.”
John O’Reilly, CEO – The Rank Group

The Rank Group has reported a 6 percent year-on-year increase in its total net gaming revenue (NGR), reaching ￡182.3 million in the third quarter of its 2023/24 financial year. This growth has been attributed to the performance of various business segments within the company.

The Grosvenor casino venues, the largest contributing segment, generated ￡80 million of the total revenue, marking a 3 percent year-on-year improvement1. This growth was facilitated by a 5 percent increase in visitor numbers and a 2 percent rise in average weekly NGR. The digital segment of the Rank Group also showed significant progress, delivering an additional ￡55 million, up 6 percent on a like-for-like basis.

Resilient performance and future outlook

Meanwhile, the Mecca bingo venues outpaced other segments, with revenue improving 12 percent year-on-year to ￡37.3 million. This was driven by a 5 percent increase in customer visits and a 7 percent increase in the average spend per visit. In Spain, the operator’s Enracha venues contributed a further ￡10 million in NGR, reflecting a year-on-year growth of 9 percent. These figures culminated in the group’s total NGR for the first nine months of its 2023/24 financial year reaching ￡544.9 million, up 8 percent. John O’Reilly, the CEO of Rank Group, expressed satisfaction with the company’s progress across both venue and online businesses. He highlighted that the Q3 trading was very much in line with the board’s expectations. O’Reilly also mentioned the upcoming land-based reforms from the government’s white paper, which the company looks forward to implementing in the coming months. In other developments, the Rank Group has entered into an agreement to sell its holding in Passion Gaming, an Indian online rummy business. The sale, which is for a nominal consideration, is expected to complete in the coming weeks.

Following the publication of these results, investment bank Peel Hunt reiterated its Buy rating for Rank Group stock and set a target price of ￡112. It’s worth noting that after peaking at more than ￡3 in February 2020, shares in Rank Group have been on a downward trajectory, dipping as low as 56p in October 2022. Over the past month, shares have been traded between 66p and 73p,

As of the latest update, The Rank Group Plc (RNK.L) is trading at GBp71.00