Rank Group has reported growth in both revenue and profits for the fiscal year that ended June 30, 2024.
During the period, the company saw a 9% increase in like-for-like (LFL) Net Gaming Revenue (NGR), reaching £734.4 million ($943 million). This growth was observed across all segments of the business, including a 9% rise in revenue at Grosvenor venues, an 8% increase at Mecca venues, and a 12% growth in digital revenue.
As per the report, underlying LFL operating profit for the year increased by 131% to £46.5 million ($59.8 million), slightly ahead of analysts’ consensus and more than double the prior year’s £20.1 million ($25.8 million). LFL underlying operating profit was £24.8 million ($31.9 million) in the second half of the year, up 14% compared with £21.7 million ($27.9 million) in the first half.
The group’s financial position saw improvement, with net cash before IFRS 16 at £20.9 million ($26.8 million) as of June 30, 2024, compared to net debt of £5.9 million ($5.9 million) at the same point in 2023.
Employment costs increased by 11% due to wage inflation and the reinstatement of employee bonuses. Furthermore, total capital expenditure for the year was £46.7 million ($60.1 million).
John O’Reilly, Chief Executive Officer, said: “We are continuing to rebuild profitability following the impact of lockdowns and the material inflationary pressures experienced in recent years. Trading continues to improve due to ongoing investment in our people, our products, and the facilities within our venues businesses, and the continued development of the proprietary technology which is driving the growth of our digital business.”
“With some important developments within our proprietary technology now in place, we are increasingly delivering a seamless and tailored cross-channel experience for our customers, leveraging our key area of competitive advantage,” he added.
In the digital sector, Rank saw significant growth, particularly in its UK operations. Grosvenor and Mecca recorded revenue increases of 20% and 21%, respectively. Spanish brands Yo and Enracha also reported a 16% rise in NGR.
As the new fiscal year begins, the business reported a 10% increase in Group NGR during the first six weeks. The Board has proposed the resumption of dividend payments.
“We are well-positioned to take advantage of the much-needed land-based reforms which will help to further modernize our casino and bingo propositions to better meet the expectations of today’s customers and we look forward to the Government confirming the timetable for the required secondary legislation,” O’Reilly added.
“We have started the new financial year as we finished the previous one, with good momentum across all businesses. With inflation receding, disposable incomes improving, investment continuing to be made in the customer proposition and a strong pipeline of growth initiatives underway, we are confident in the future prospects of the Group,” he concluded.
Original article: https://www.yogonet.com/international/noticias/2024/08/15/75470-rank-group-sees-net-gaming-revenue-reach-943m-in-fy-2024-growth-across-all-segments
