Statutory revenue during the six months to 31 December 2024 hit £401.8 million (€479.9 million/$499.8 million). This surpasses the £362.6 million in H1 of 2023/24 by 11%, data published by Rank today (30 January) shows.
The total is reported on a statutory basis. Rank also published underlying like-for-like revenue, which removes the impact of club openings, closures, foreign exchange and discontinued operations. Underlying like-for-like revenue was 13% higher year-on-year.
Rank saw year-on-year growth across all areas of its business. The Grosvenor venues segment reported the largest increase at 15%, while digital was not far behind on 14%.
Grosvenor venues surpass expectations for Rank
Beginning with the area of most growth, revenue from Grosvenor venues increased by 15% year-on-year to £192.8 million in H1. Average net gaming revenue per week was also 7% higher at £7.3 million.
Other highlights include a 23% rise in table games revenue, a 16% jump in electronic gaming revenue and 6% increase in machine revenue. Visitor numbers were also 7% higher, with spend per visit also rising 8%.
According to Rank, this segment has emerged from a “prolonged recovery phase”. The group is now focusing on key growth levers and identifying efficiencies to drive revenue and profitable growth.
Such is Rank’s optimism that it is adjusting its expectations for the remainder of the year. Through organic growth and excluding the benefits of certain land-based legislative reforms, Rank now expects Grosvenor’s weekly revenue to reach approximately £8.0 million per week in the medium term.
“We are readying ourselves to take full advantage of the benefits of land-based legislative reforms which we expect to see implemented from summer 2025,” Rank chief executive John O’Reilly said. “A programme of venue and product improvements is well advanced as we prepare to better meet the needs of our customers when the time comes.”
Digital dream continues for Rank
Turning to Rank’s digital arm, like-for-like revenue climbed 14% to £120.2 million, with this also 11% higher on a statutory basis.
Mecca Bingo remains Rank’s main source of digital revenue, with like-for-like revenue here rising 21% to £48.1 million. However, Grosvenor’s digital business saw the most growth at 22%, with £41.0 million in revenue for the six month period.
European business Enracha and Yo revenue increased 5% to £13.5 million. Some £11.6 million came from other proprietary brands, up 6%, while revenue from non-proprietary brands fell 25% to $6.0 million.
Revenue growth, Rank said, was helped by the launch of a new proprietary Mecca app and new live tables on the Grosvenor app. Investments were also made across the reward and loyalty programs for both brands.
Breaking down revenue by market, UK revenue was 16% higher year-on-year, with Spain revenue up 5%. Rank also noted that it has applied for a licence to launch its YoBingo brand in Portugal, this expected in the coming months.
“The benefit of our digital proprietary platforms is increasingly evident in our performance, as we continue to focus on product innovation and investment in our technology,” O’Reilly said.
“Our vision to optimise a seamless and tailored cross channel offering for our customers continues to be our priority with some key initiatives landing in H2.”
Further growth across Mecca and Enracha venues
As for Rank’s other land-based properties, growth was also apparent within both the Mecca and Enracha venues segments.
Like-for-like Mecca revenue was 6% higher at £68.6 million, despite the closure of one bingo venue. Player spent per visit was up 5%, while overall visits to Mecca venues increased by 1%.
Mainstage bingo revenue was up 5% but flat following the deduction of added prize money. Bingo interval game revenue was 8% higher and gaming machine revenue climbed 9%. The latter was helped by the addition of 235 new Novomatic machines across the network.
In terms of Enracha venues, like-for-like revenue was up 7% to £20.2 million. Rank said that like Mecca, cash maximisation is the strategic priority for the Spain-facing business.
Total customer visits to Enracha venues increased 7% year-on-year, helped by refurbishment of the Seville venue. Rank is now planning a similar enhancement project at its Sabadell site.
Net profit rockets 228.4% in H1
Looking to expenses, cost of revenue hit £229.1 million, with other operating expenses at £141.9 million and other operating income £9.4 million. This resulted in £40.2 million in like-for-like operating profit, an increase of 148%.
After accounting for £5.5 million in finance costs, pre-tax profit was £34.7million, up 234% year-on-year. Rank paid £5.8 million in tax, meaning a bottom-line, net profit for H1 of £28.9 million, a rise of 228.4%.
Commenting on this growth, CEO John O’Reilly said it is testament to ongoing investment across online and land-based channels.
“We are pleased to deliver another good set of results,” O’Reilly said. “We continue to take advantage of the growth opportunities available to us and maintain a strong momentum across all of our businesses.
“Customers are responding positively to investments we are making and to the experiences we are delivering both online and in our venues.”
Original article: https://igamingbusiness.com/finance/half-year-results/revenue-net-profit-growth-rank-h1/
