Rank Group posts £182m in Q3 NGR with strong growth across UK and Spain
Maidenhead-based operator reports 6% digital net gaming revenue as results fall in line with board expectations
The post Rank Group posts £182m in Q3 NGR with strong growth across UK and Spain first appeared on EGR Intel.
Rank Group has posted a 6% year-on-year (YoY) rise in net gaming revenue (NGR) to £183.2m for fiscal Q3 2023 as the group’s Mecca business returns to form.
Digital NGR grew 6% YoY to £55m, with the UK increasing 4% YoY while strong business in Spain saw a 20% YoY increase in Q3 revenue.
In the UK, the Grosvenor and Mecca online brands saw posted contrasting results. Mecca’s NGR grew 21% while Grosvenor’s NGR saw a 1% YoY rise, due to weaker gaming margin against “big customer wins”.
Planned reductions in marketing investment led to a 13% YoY decrease in revenue for Rank’s other UK digital brands.
Management also confirmed a new content management system had been successfully launched for both brands during the report being, which will improve “both operational efficiency and speed to market for customer proposition enhancements”.
Land-based NGR also grew 6% YoY, with Mecca once again being the standout brand for the group.
Grosvenor venues saw NGR grow 3% YoY to £80m and saw a 5% growth in visit numbers. However, traditionally a quieter period, average weekly NGR stood at £6.2m, which was up 2% YoY but down 2% from Q2.
Looking at Mecca venues, there was a 12% YoY NGR growth to £37.3m which was driven by a 5% increase in customer visits and 7% increase in spend per visit. This was attributed to “strong trading” over both Mother’s Day and the Easter weekend.
Rank’s Spanish land-based business, Enracha, reported 9% YoY growth with NGR coming in at £10m.
Group CEO John O’Reilly said Q3 trading was in line with expectations and added that the firm hopes to start implementing changes based on the government’s white paper in the coming months.
He said: “We continue to make good progress across both our venues and online businesses, with Q3 trading very much in line with the board’s expectations.
“Performance continues to improve, and we have the very important land-based reforms from the government’s white paper to look forward to, which we hope to start implementing in the coming months,” the CEO added.
Rank posted its outlook for the year ending 30 June 2024 and anticipates operating profit to be in line with the firm’s expectations.
The operator added that it had entered an agreement to sell its holding in the Indian online rummy business Passion Gaming for a “nominal consideration” to an undisclosed buyer. The disposal is expected to close in the coming weeks.
The post Rank Group posts £182m in Q3 NGR with strong growth across UK and Spain first appeared on EGR Intel.
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