Rank Group reports that for the fiscal year ending June 30, 2024, its net gaming revenue (NGR) grew by 9%, reaching £734.4 million ($943 million). All divisions of the business experienced growth, with Grosvenor venues increasing by 9%, Mecca venues by 8%, and digital revenue by 12%.
The group's underlying LFL operating profit more than doubled, increasing by 131% to £46.5 million. This reflects significant improvements in business operations and leverage. The fourth quarter was strong, with a 14% growth in NGR, providing positive momentum for the company entering the 2024/25 fiscal year.
Rank's financial position also improved, with a net cash position of £20.9 million as of June 30, 2024, compared to a net debt of £5.9 million at the same time in 2023. The shift from net debt to a positive cash position highlights stronger cash flows and a robust balance sheet supported by £120 million in debt financing.
In terms of operations, Rank continues to invest in its workforce and infrastructure. Due to wage increases and the reinstatement of employee bonuses, employment costs rose by 11%. The total capital expenditures for the year were £46.7 million, focusing on enhancing the group's venues and proprietary technology.
In the digital domain, Rank achieved significant growth, especially in its UK operations, with cross-channel revenue for Grosvenor and Mecca brands growing by 20% and 21%, respectively. NGR for the group's Spanish brands, Yo and Enracha, also grew by 16%.
As the new fiscal year begins, Rank reports that group net profits in the first six weeks increased by 10%, indicating sustained strong performance. The board has proposed resuming dividends.
Rank Group CEO John O'Reilly stated, "With some significant developments in our proprietary technology, we will continue to offer our customers a seamless, tailored cross-channel experience, fully leveraging our key competitive advantages."
O'Reilly added, "We are prepared to utilize these much-needed offline reforms to further modernize our casinos and bingo games, better meeting today's customer expectations. We look forward to the government confirming the timetable for the required secondary legislation."
Earlier this year, Rank Group established a partnership with Quickspin to enhance its gaming products in the UK market, part of its broader strategy to expand digital and venue services.
