Rank Group reports 9% increase in net gaming revenue for FY 2024
Rank Group reports 9% revenue surge, underlying profit doubles and strong cash position for FY 2024.
Rank Group has reported a 9% increase in like-for-like (LFL) Net Gaming Revenue (NGR) for the fiscal year ending 30 June 2024, reaching £734.4m ($943m). 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.
The group’s underlying LFL operating profit more than doubled, increasing by 131% to £46.5m. This reflects significant operational improvements and leverage within the business. Strong trading in the fourth quarter, with a 14% increase in NGR, provided positive momentum as the company enters the 2024/25 financial year.
Rank’s financial position also showed improvement, with net cash before IFRS 16 at £20.9m as of 30 June 2024, compared to net debt of £5.9m at the same point in 2023. This shift from net debt to a positive cash position highlights the company’s stronger cash flows and a solid balance sheet supported by £120m in debt facilities.
Operationally, Rank continued to invest in its workforce and infrastructure. Employment costs increased by 11% due to wage inflation and the reinstatement of employee bonuses. Total capital expenditure for the year was £46.7m, focusing on enhancing the group’s venues and proprietary technology.
“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”
In the digital sector, Rank saw significant growth, particularly in its UK operations, where Grosvenor and Mecca cross-channel brands recorded revenue increases of 20% and 21%, respectively. The group’s Spanish brands, Yo and Enracha, also reported a 16% rise in NGR.
As the new financial year begins, Rank reported a 10% increase in Group NGR during the first six weeks, indicating continued strong performance. The Board has proposed the resumption of dividend payments.
John O’Reilly, The Rank Group Chief Executive said: “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.”
O’Reilly added: “We are well-positioned to take advantage of the much-needed land-based reforms which will help to further modernise 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.”
Earlier this year, Rank Group formed a partnership with Quickspin to enhance its gaming offerings in the British market, as part of its broader strategy to expand its digital and venue-based services.
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