The company saw a 10% growth in its digital arm.
By Lucy Wynne
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.“
The Rank Group has reported a 6% increase in gross gaming revenue (GGR) to £681.9m ($868m) for the year ended June 2023. Its digital business experienced a 10% growth, with revenue reaching £202.9m. The company’s UK venue, Grosvenor, made £306.3m, while its Mecca venues generated £134.1m. However, despite the revenue growth, Rank saw a significant decrease in operating profits, from £162.6m to a loss of £109.8m, due to higher impairment charges and increased operating costs. The company also revealed its application for a licence to launch its YoBingo online brand in Portugal. CEO John O’Reilly remains optimistic about the future.