Rank Group sees profits drop to a loss of £109.8m for FY 2023

The Rank Group has released its preliminary 12-month financial report for the year ended 30 June 2023, when the company saw a 6% increase in gross gaming revenue (GGR) to £681.9m ($868m).

The company saw growth in its digital business, with revenue rising 10% to £202.9m. Of this total, £72.6m came from Mecca, £57m from Grosvenor, £24.1m from Enracha & Yo and £49.2m from its Stride brand. 

Rank acquired Stride Gaming in October 2019 and continues to operate a number of its existing brands.

The graph shows that revenue increased slightly in the 2022/23 report.

Grosvenor’s UK venue in 2023 made a total of £306.3m. This total was comprised of its revenues from London and the rest of the UK. London venues made £99.3m, while the rest of the UK made £207m.

In addition to this, its Mecca venues revenue totalled £134.1, Enracha made £36.4m and, as mentioned previously, its digital arm made £202.9m.

Group operating profit has turned to a loss in its 2022/23 financial year report.

However, despite the increases in GGR, Rank saw a huge fall in operating profits from £162.6m to a loss of £109.8m. The report noted that higher impairment charges, together with increased operating costs, meant the business posted a net loss. 

Net debt was minus £172.9m, down from a positive £162.6m. The debt comprised £44.4m in a term loan, £18m of drawn revolving credit facilities and £169m in finance leases, offset by cash in bank of £58.5m.

During the year, the Group repaid £34.5m of the term loan in line with the loan’s agreed amortisation schedule.

After getting back to a profit last year, the company saw a loss again in its 2022/23 annual preliminary results.

Rank also revealed it applied for a licence to launch its YoBingo online brand in Portugal.

The Group has also increased its investment in colleague pay during the year, raising average pay by 10%. The company stated that 2023/24 employment costs are expected to be circa 7% higher than 2022/23.

Rank’s current share price, at the time of writing, is 89.62 GBp.

John O’Reilly, CEO of The Rank Group, said of the report: “The return of customers to our Grosvenor and Mecca venues continues to pick up and our second half numbers give cause for optimism after a very challenging couple of years. 

“During that time, our UK venues have faced a surge in energy costs, high wage inflation, a tightening in the regulatory environment, the slow return of overseas visitors to London’s casinos and the more general pressures on the consumer’s discretionary expenditure.“