Rank hails widespread growth as revenue rises 11% in Q1
In a trading update, Rank says momentum from the second half of 2022-23 continued into Q1. The update spanned the three months to 30 September.
Rank says its Grosvenor venues business was its main source of revenue in Q1 at £84.2m, up 13%. The operator put this down to a 9% increase in visits and a 4% rise in spend per visit.
Net gaming revenue in London was up 8% on the previous year. However, this was higher for the rest of the UK, increasing by 16%. Rank also notes average net gaming revenue within this segment was up 10% to £6.4m.
Elsewhere, revenue from the Mecca venues business climbed 11% to £34.7m. This, Rank says, was driven by a 4% jump in customer visits and 7% rise in spend per visit.
Rank also reported a 9% rise in revenue from its Enracha Spanish bingo business, with this reaching £8.9m in Q1.
Turning to digital operations and revenue was 7% higher at £51.8m. Rank reported growth across its UK-facing Grosvenor and Mecca brands, with revenue from UK digital activities up 6%. Grosvenor digital net gaming revenue was up 14% and Mecca digital 9%.
Rank also notes a 15% year-on-year revenue increase for its Spanish digital offering.
Rank expects to hit full-year targets
Based on its performance in Q1, Rank says it is on track to deliver full-year revenue and profit growth in line with expectations. This is despite contending with what it describes as a “challenging” environment due to high inflation and interest rates, as well as consumer discretionary spending.
“I am pleased to report that Rank has made a strong start to the year,” chief executive John O’Reilly said. “After an encouraging second half of 2022-23, we have maintained the momentum through the first quarter of 2023-24 and have made good progress in driving revenue and profit growth across the group.
“Going forwards, we remain focused on delivering the key growth initiatives within our digital business and preparing our UK venues for the critical modernising reforms in the government’s review of the gambling legislation.
“These reforms, which are planned to be implemented by next summer, will help Grosvenor and Mecca to better meet the needs of our existing and prospective customers.”