The Rank Group has lauded a successful quarter for the period ending September 30, as it stressed “delight” at early flow revenue generated as a result of transformative initiatives unveiled in December 2018.
Announcing its latest trading update the group shows that total net gaming revenue grew nine per cent for the quarter, while on a digital basis that figure soars to an increase on 16 per cent with venue like-for-like NGR also nine per cent up.
Rank emphasises that its “standout performance” came courtesy of its plethora of Grosvenor venues, with Q1 2019/20 “seasonally the strongest quarter” and coming against weak comparatives.
Detailing a 15 per cent NGR growth with strong win margins reported across all products, all gaming product areas also delivering revenue increases.
Electronic roulette continues to benefit from investments made to the machine estate, together with the regulatory changes on B2 staking limits in April, with strong volumes seen in table handle at good margins and continued growth in gaming machine revenues.
Digital continues to grow strongly for Rank, with Grosvenor and Mecca seeing 27 and 14 per cent respectively, driven by strong growth in customer numbers and higher average revenue per user.
Mecca venues’ like-for-like NGR was flat in the quarter, with lower customer visits offset by a higher spend per visit, as international venues performed in line with expectations amid the completion of a rollout of gaming machine upgrades.
“We are pleased with the growth achieved across our businesses in this key part of our financial year, as well as with the ongoing progress we are making with our transformation programme,” noted John O’Reilly, CEO of Rank.
“The acquisition of Stride marks a pivotal moment in the development of our digital offering and having completed on 4 October 2019, we are now starting the execution of all our plans for integration and delivery of synergy benefits.”
In the quarter the firm also completed the acquisition of Stride Gaming, subsequently commencing its integration with Rank Digital.
Stride’s NGR in Q1 was £16.3m, down 15 per cent year-on-year driven by lower customer acquisition volumes and reduced margins in the period, as Rank again stressed confidence at delivering all benefits outlined when the deal was announced.
O’Reilly commented at the time of the purchase being completed: “Today marks a significant day for Rank. This acquisition delivers a proprietary technology platform and highly experienced team which will accelerate the transformation of Rank and create one of the UK’s leading online gaming businesses.
“Our focus now turns to ensuring we successfully integrate Stride into Rank and realise the potential of our new enlarged digital business.”