Net gaming revenue in the three months to 30 September hit £197.5m (€236.4m/$256.6m). This is comfortably clear of the £179.6m that Rank posted in Q1 of last year.
Detailing the increase in a trading update, Rank noted growth across both its land-based and digital businesses. Digital revenue was 15% higher year-on-year, while land-based revenue also jumped by 10%.
Land-based love-in for Rank
Starting with the land-based business, Rank saw revenue from Grosvenor Casinos venues increase 13% to £95.3m. This makes the casinos the group’s main revenue source.
Rank also noted the impact of a 2% increase in visits and a 11% increase in spend per visit during Q1. This, it said, helped the segment report better-than-expected margins, with growth consistent across London and the rest of the UK.
Turning to the Mecca Bingo land-based segment, revenue was also higher but only by 4% to £34.7m. Rank referenced a 5% increase in spend per visit, though the total number of visits slipped 1% year-on-year.
The group said visitor volumes picked up towards the end of Q1 following a period of slower trading in July, resulting from the sunny weather and England’s run in the Euro 2024 football tournament.
On top of this, Rank saw revenue for its Spanish land-based venues brand Enracha rise 9% to £9.6m.
Digital continues upward trend in Q1
As for the digital side of the business, this is where Rank saw the most growth. During Q1, revenue increased 15% to £57.9m, with growth consistent across both its UK and Spanish digital operations.
In the UK, Rank said digital revenue was 15% higher overall. The Grosvenor brand reported a 21% rise in revenue, while Mecca revenue increased by 23%.
As for Spain, Q1 digital revenue was also 15% higher year-on-year.
Rank on track for further growth
Based on the Q1 performance, Rank said it is confident of delivering like-for-like operating profit in line with expectations.
“We have continued to build on the momentum that we have generated over the past year and a half, and I am very pleased with our start to this financial year,” Rank CEO John O’Reilly said.
“With all business units performing well, the double-digit growth in our Grosvenor venues and UK digital business is particularly encouraging. Customers are clearly enjoying the improvements we are making across our land-based estate and to our digital offering.
“Rank is now a stronger and more sustainable business, and we are looking forward to the land-based legislative reforms coming to fruition in 2025.”
Rank will announce its interim results for first half on 30 January 2025.
Original article: https://igamingbusiness.com/finance/quarterly-results/digital-venues-growth-rank-q1/
