Revenue growth pushes net profit to £28.9 million at Rank in H1

Rank Group has achieved impressive year-on-year growth in net gaming revenue and net profit for the first half of the 2024-2025 financial year, driven by a robust performance across both its online and land-based operations.

For the six-month period ending December 31, 2024, Rank Group reported statutory revenue of £401.8 million (€479.9 million/$499.8 million), an 11% increase compared to £362.6 million in the same period of the previous financial year. This data, released on January 30, illustrates not only the resilience of the gambling industry but also Rank’s strategic efficacy in navigating the competitive landscape.

In addition to statutory figures, Rank published underlying like-for-like revenue, which excludes the effects of club openings, closures, foreign exchange fluctuations, and discontinued operations. This metric showcased a year-on-year increase of 13%, affirming strong organic growth across various business sectors.

Notably, all segments within Rank experienced year-on-year growth. The Grosvenor venues segment emerged as the standout performer, reporting a 15% revenue increase, while the digital division closely trailed with a 14% rise.

Grosvenor Venues Exceed Growth Expectations

Focusing on the Grosvenor venues, revenue surged by 15%, reaching £192.8 million during the first half of the fiscal year. Furthermore, average net gaming revenue per week demonstrated solid growth, climbing 7% to £7.3 million.

• Table games revenue increased by an impressive 23%.
• Electronic gaming revenue showed robust growth at 16%.
• Revenue from gaming machines rose by 6%.
• Visitor numbers expanded by 7%, with spending per visit up 8%.

Rank Group indicates that this segment has fully transitioned from a prolonged recovery phase and is now targeting strategic growth levers while identifying efficiencies to bolster revenue and profitability. In light of these developments, the company has adjusted its forecasts for the remainder of the financial year, projecting Grosvenor’s weekly revenue to reach approximately £8.0 million in the medium term, absent the impacts of forthcoming legislative reforms.

John O’Reilly, CEO of Rank, expressed optimism regarding the future, stating, “We are positioning ourselves to fully benefit from expected land-based legislative reforms set for implementation from summer 2025. Our venue and product improvement programs are well underway to enhance customer experiences.”

Digital Ascendancy Continues

Turning to Rank’s digital operations, like-for-like revenue surged 14% to £120.2 million, which translates to an 11% increase on a statutory basis.

Mecca Bingo remains the cornerstone of Rank’s digital revenue, with a remarkable 21% increase generating £48.1 million. However, Grosvenor’s digital offerings recorded even more significant growth at 22%, contributing £41.0 million within the same timeframe.

Other highlights include:

• Enracha and Yo revenue rising 5% to £13.5 million.
• Other proprietary brands generating £11.6 million, a 6% increase.
• Non-proprietary brands witnessing a decline of 25%, yielding $6.0 million.

The substantial revenue growth can be attributed to recent innovations such as the launch of a new proprietary Mecca app and the introduction of new live tables on the Grosvenor app. Enhanced investments in loyalty and reward programs have further solidified customer engagement across both brands.

Regionally, UK revenue saw a 16% increase, with Spain reflecting a 5% rise. Notably, Rank has applied for a license to launch the YoBingo brand in Portugal, which is anticipated in the upcoming months.

O’Reilly confirmed, “The advantages of our digital proprietary platforms are becoming increasingly apparent, as we persistently prioritize product innovation and technological investments. Our strategy aims to deliver a seamless, tailored cross-channel experience for our customers, with key initiatives slated for the second half of the year.”

Growth Momentum in Mecca and Enracha Venues

Rank’s land-based properties also demonstrated growth, with both the Mecca and Enracha venues faring well.

Mecca reported a 6% rise in like-for-like revenue to £68.6 million, despite operational setbacks from one venue closure. Key metrics included:

• Player spending per visit increased by 5%.
• Overall visits to Mecca venues rose by 1%.
• Mainstage bingo revenue remained stable, adjusting for additional prize money.
• Bingo interval game revenue climbed by 8% and gaming machine revenue rose by 9%, bolstered by the addition of 235 new Novomatic machines.

In the Enracha venue segment, like-for-like revenue increased by 7%, reaching £20.2 million. Total visitor numbers surged by 7%, aided by renovations at the Seville location, with plans for a similar upgrade at the Sabadell site underway.

Substantial Net Profit Growth of 228.4%

Rank Group’s financial performance also reflects effective cost management. The cost of revenue totaled £229.1 million, with other operating expenses amounting to £141.9 million and other operating income at £9.4 million. Consequently, like-for-like operating profit reached £40.2 million, marking an impressive increase of 148%.

After accounting for £5.5 million in finance costs, the pre-tax profit surged to £34.7 million, a remarkable 234% year-on-year increase. Following tax expenses of £5.8 million, the bottom line net profit for the first half of the year stood at £28.9 million, which represents a staggering rise of 228.4%.

O’Reilly commented on these results, expressing that they are a testament to continued investments across both online and land-based channels. “We are delighted to present another set of strong results, effectively harnessing growth opportunities and sustaining momentum throughout our operations,” he noted. “Our customers are responding favorably to the improvements we are implementing across all platforms, enhancing their overall gaming experience.”