Rank Group Reports 11% YoY Revenue Growth in Q1
Date: 2023-10-19 Author: Dima Zakharov Categories: EVENTS
Revenue Boost in Q1
In their latest trading update, Rank Group revealed that the positive momentum from the second half of the previous fiscal year carried over into the first quarter of the current year. This update encompasses the three-month period ending on September 30th.
Grosvenor Venues Leading the Way
Rank Group attributes the lion's share of its Q1 revenue to its Grosvenor venues, which brought in £84.2 million, marking an impressive 13% increase. This achievement is credited to a 9% rise in visits and a 4% uptick in spending per visit.
Regional Disparities
While net gaming revenue in London increased by 8% compared to the previous year, the rest of the UK saw a more substantial growth of 16%. Additionally, the average net gaming revenue in this segment surged by 10%, reaching £6.4 million.
Mecca Venues on the Rise
The Mecca venues business also experienced a notable 11% revenue increase, amounting to £34.7 million. This can be attributed to a 4% increase in customer visits and a 7% rise in spending per visit.
Success in the Spanish Bingo Business
Rank Group reported a remarkable 9% rise in revenue from its Spanish bingo business, Enracha, which amounted to £8.9 million in Q1.
Digital Operations Flourish
Turning to digital operations, Rank Group reported a 7% increase in revenue, totaling £51.8 million. This growth was evident across its UK-facing Grosvenor and Mecca brands, with revenue from UK digital activities rising by 6%. Grosvenor digital net gaming revenue saw an impressive 14% increase, while Mecca digital grew by 9%.
Positive Outlook for Rank Group
Based on their strong Q1 performance, Rank Group is optimistic about achieving their full-year revenue and profit targets in line with expectations. This is despite facing challenges posed by high inflation, interest rates, and consumer discretionary spending.
Rank Group's Chief Executive, John O'Reilly, expressed his satisfaction, stating, "After an encouraging second half of 2022-23, we have maintained the momentum through the first quarter of 2023-24 and have made good progress in driving revenue and profit growth across the group."
He further emphasized the company's commitment to digital growth initiatives and preparations for upcoming gambling legislation reforms in the UK. These reforms are intended to better cater to the needs of both existing and potential customers.
