Rank Group has achieved a remarkable 9% increase in like-for-like (LFL) Net Gaming Revenue (NGR) for the fiscal year ending June 30, 2024, reaching a total of £734.4 million ($943 million). This impressive growth was seen across all segments of the business, including significant gains in its Grosvenor venues, Mecca venues, and digital operations.

Rank Group Reports 9% Surge in LFL Net Gaming Revenue, Reaches £734.4M for FY 2024

Strong Performance Across Key Segments

The company’s performance in FY 2024 was robust, with Grosvenor venues leading the way, recording a 9% rise in revenue. Not far behind were the Mecca venues, which saw an 8% increase. The digital segment, however, outpaced both with a 12% growth in revenue, highlighting Rank Group’s successful expansion into online markets.

This consistent growth reflects the company’s strategic focus on enhancing operational efficiency and leveraging its unique competitive advantages across different channels. As a result, the group’s underlying LFL operating profit more than doubled, increasing by 131% to £46.5 million.

Q4 Surge and Positive Momentum into FY 2025

Rank Group experienced particularly strong trading in the fourth quarter, with a 14% increase in NGR. This surge provided positive momentum as the company transitions into the 2024/25 financial year, laying a solid foundation for continued growth.

John O’Reilly, CEO of Rank Group, commented, “With some important developments within our proprietary technology now in place, we are increasingly delivering a seamless and tailored cross-channel experience for our customers, leveraging our key area of competitive advantage.”

Improved Financial Position and Strategic Investments

Rank’s financial position saw substantial improvement during FY 2024. The company moved from a net debt of £5.9 million in 2023 to a net cash position of £20.9 million before IFRS 16 as of June 30, 2024. This shift underscores the company’s stronger cash flows and enhanced balance sheet, supported by £120 million in debt facilities.

The company’s capital expenditure for the year was £46.7 million, directed towards enhancing both its physical venues and proprietary technology. These investments have been crucial in maintaining Rank Group’s competitive edge, especially as digital and cross-channel experiences become increasingly important to customers.

Growth in Digital and International Markets

The digital segment of Rank Group saw significant growth, particularly in the UK, where the Grosvenor and Mecca cross-channel brands recorded revenue increases of 20% and 21% respectively. This growth is a testament to Rank’s effective digital strategy, which focuses on creating an integrated experience for customers across different platforms.

In addition to its success in the UK, Rank’s Spanish brands, Yo and Enracha, reported a 16% rise in NGR. This international growth further solidifies Rank Group’s position as a leading player in the global gaming market.

Employee Investment and Operational Enhancements

Rank Group’s commitment to its workforce was evident in the 11% increase in employment costs during FY 2024. This rise was due to wage inflation and the reinstatement of employee bonuses, reflecting the company’s dedication to maintaining a motivated and skilled workforce.

Operational enhancements were also a key focus, with Rank investing in infrastructure upgrades and proprietary technology. These improvements have been instrumental in delivering a seamless and tailored experience for customers, which is central to Rank’s long-term strategy.

Outlook for FY 2025: Continued Growth and Strategic Focus

As Rank Group enters the 2024/25 financial year, the company is well-positioned for continued growth. In the first six weeks of the new fiscal year, Rank reported a 10% increase in Group NGR, indicating that the positive trends from FY 2024 are set to continue.

The Board has proposed the resumption of dividend payments, further highlighting the company’s confidence in its financial stability and future prospects.

CEO John O’Reilly expressed optimism about the future, stating, “We are well-positioned to take advantage of the much-needed land-based reforms which will help to further modernise our casino and bingo propositions to better meet the expectations of today’s customers. We look forward to the Government confirming the timetable for the required secondary legislation.”

Conclusion: The Performance

Rank Group’s performance in FY 2024 has demonstrated the company’s resilience and strategic agility in a challenging market environment. With strong growth across all segments, improved financial health, and ongoing investments in technology and infrastructure, Rank is well-prepared to continue its upward trajectory in the coming year.

FAQs About Rank Group’s Financial Performance in FY 2024

1. What was the overall Net Gaming Revenue (NGR) for Rank Group in FY 2024?

Rank Group reported a Net Gaming Revenue (NGR) of £734.4 million ($943 million) for the fiscal year ending June 30, 2024. This represents a 9% increase in like-for-like (LFL) NGR compared to the previous year.

2. Which segments contributed to Rank Group’s growth in FY 2024?

Growth was observed across all segments of Rank Group’s business:

• Grosvenor venues saw a 9% increase in revenue.
• Mecca venues experienced an 8% rise in revenue.
• The digital segment recorded a 12% growth in revenue.

3. How did Rank Group’s financial position improve during FY 2024?

Rank Group’s financial position improved significantly, with a shift from a net debt of £5.9 million in 2023 to a net cash position of £20.9 million before IFRS 16 as of June 30, 2024. The company also had £120 million in debt facilities supporting its balance sheet.

4. What were the key operational investments made by Rank Group in FY 2024?

Rank Group invested £46.7 million in capital expenditure during FY 2024. These investments were focused on enhancing the group’s venues and proprietary technology, which are crucial for delivering a seamless and tailored cross-channel experience for customers.

5. How did the digital segment perform in FY 2024?

The digital segment showed significant growth, particularly in the UK:

• Grosvenor and Mecca cross-channel brands saw revenue increases of 20% and 21%, respectively.
• The group’s Spanish brands, Yo and Enracha, reported a 16% rise in NGR.

6. What was Rank Group’s operating profit in FY 2024?

Rank Group’s underlying like-for-like (LFL) operating profit more than doubled, increasing by 131% to £46.5 million. This reflects significant operational improvements and leverage within the business.

7. What is Rank Group’s outlook for FY 2025?

Rank Group is optimistic about continued growth in FY 2025. In the first six weeks of the new fiscal year, the company reported a 10% increase in Group NGR. The company is also looking forward to potential land-based reforms that could further modernize its casino and bingo offerings.

8. Has Rank Group resumed dividend payments?

Yes, the Board has proposed the resumption of dividend payments, indicating confidence in the company’s financial stability and future growth prospects.

9. What strategic focus areas has Rank Group identified for the future?

Rank Group’s strategic focus includes leveraging its proprietary technology to deliver a seamless cross-channel experience, continuing to invest in its workforce and infrastructure, and capitalizing on potential land-based reforms to enhance its casino and bingo propositions.