Off the back of a challenging period, Rank Group has revealed positive net gaming revenue for the six-month period ending on December 31, 2023.
The firm’s NGR increased by nine per cent in total as it navigated UK challenges which hindered the growth of its land-based operations.
Nonetheless, utilising operating efficiencies, Rank pushed towards elevating operating profit by £2.7m to £21.7m in H1, with £17.5m being declared in the second half of the year.
Countering soft trading for its UK venues, a statutory operating profit of £16.2m, reversing losses of £103m posted in H1 2022/23.
The group underlined that it is prepared for something of a transitional period within the UK market, as regulatory changes loom on the horizon in what is expected to be a challenging time for many UK operators.
John O’Reilly, Chief Executive of Rank Group, said: “After what has been a very challenging few years for Rank due to a wide range of external macro factors, we are starting to build revenues and, with our strong operational leverage, we are improving our profitability, with the group delivering revenue and operating profit growth across all businesses.
“We are well positioned to optimise the opportunities afforded by the UK Government’s planned land-based regulatory reforms which will hopefully be implemented through the passing of secondary legislation in the summer of 2024. These reforms cannot come soon enough in enabling us to modernise our proposition to better meet our customers’ expectations.”
Spanish growth also played a role in boosting the company’s growth, as digital NGR heightened by eight per cent, fuelled by Grosvenor and Mecca cross-channel revenues in the Yo brand in Spain.
There was also strong progress reported by the firm when it came to pursuing net zero ambitions, which played a key role in the reduction of energy costs over the period.
Looking ahead, O’Reilly added: “We are making good progress with the strong pipeline of development initiatives in both our UK and Spanish digital brands to accelerate revenue and profit growth.
“Whilst we expect UK digital growth to be offset in the short term by the impact of new maximum online slot stakes and the impact of the statutory levy in the UK, we are confident in the opportunities of delivering a market-leading cross-channel experience for our Grosvenor and Mecca customers.
“We are also excited to grow our digital business in selected new markets, commencing later this calendar year with the launch of the YoBingo brand in Portugal.
O’Reilly concluded: “I would like to express my considerable thanks to my colleagues across the group who continue to excite, entertain and protect our customers, provide support to their local communities and contribute significantly to the progress we are making in the transformation of the group.”
