Rank Group states that for the fiscal year ending June 30, 2024, improved trade conditions and significant technology projects have stimulated overall growth.
Rank, owner of Grosvenor Casinos and Mecca Bingo, says its performance benefited from receding inflation and improved disposable income in its core UK market. With growth across all digital and physical businesses, the group's year-over-year net gaming revenue (NGR) increased by 9%, reaching £734.4 million.
Rank's digital cross-channel customer revenue growth continued to outpace overall group revenue, increasing by 16% within the year. The group states that a key factor in achieving this target was its proprietary technology platform, which successfully implemented several improvements during the year. Rank specifically mentioned the impact of its single content management system on all its UK digital brands, as well as the improved application for the Grosvenor brand.
Grosvenor is Rank's largest division, with its venues' NGR growing by 9% to £331.3 million. Mecca grew by 8% to £136.6 million, while its Spanish land-based brand Enracha grew by 7% to £38.5 million. Digital business NGR grew by 12% to £226 million. The UK and Spain grew by 11% and 16%, respectively.
Although no separate data for the fourth quarter was released, Rank mentioned "strong trading" in the last three months of the year. The company stated that NGR grew by 14% year-over-year, "providing good momentum for 2024-25."
Rank's drive to cut costs
In terms of profitability, this year's year-over-year basic operating profit was £46.5 million. This was slightly above analysts' consensus and more than double last year's £20.1 million.
The group has been striving to improve cost-effectiveness and reported good progress in enhancing expenditure control. A cost-cutting initiative was announced in December 2022 to try to reverse the decline in Grosvenor's internal operating profit.
Total capital expenditure for the fiscal year 2023-24 was £46.7 million, slightly up from last year's £44.1 million. This total includes investments in the group's venues and proprietary technology. Employment costs increased by 11% within the year, under the combined impact of wage inflation and the restoration of colleague bonuses.
To boost shareholders and demonstrate the group's confidence, Rank's board of directors recommended resuming dividend payments. This would be a full-year dividend of 0.85 pence, with plans to distribute an interim dividend in January 2025.
CEO welcomes ongoing investment plans
CEO John O'Reilly said: "For Rank, this has been a year of strong financial, operational, and strategic progress. After being impacted by lockdowns and significant inflationary pressures in recent years, we continue to rebuild profitability.
"Due to ongoing investments in our people, products, and venue facilities, as well as the continuous development of our proprietary technology, trading continues to improve, driving growth in our digital business.
"With some key developments in our proprietary technology now in place, we are increasingly providing our customers with seamless and tailored cross-channel experiences, leveraging our key areas of competitive advantage."
Rank was heavily hit by the pandemic, with its venues in the UK and Spain being closed for extended periods. It reported a loss of £82.4 million in the fiscal year 2020-21, followed by a basic group profit of £40.4 million in 2021-22.
In the fiscal year 2022-23, Rank's revenue grew by 5.9%, although increased impairment costs led to a statutory net loss.
