Rank Group revenue surges to $253 million in Q3 as digital gaming booms, UK casino turnover climbs

Rank Group has reported a rise in revenue for the third quarter of its 2024 financial year, buoyed by an uptick in digital performance, even as the company prepares for regulatory changes and economic pressures in its primary UK market.

In a trading update released on April 10, the UK-based gambling operator said group net gaming revenue for the three months ending March 31 rose 10.9% year-on-year to £195.6 million ($253.43 million). This marks a notable improvement over the £182.3 million ($236.19 million) recorded during the same quarter in the previous year.

Rank’s Grosvenor UK land-based casinos remained its largest revenue contributor, delivering £90.4 million ($117.12 million) in Q3, up 13% from the previous year. The increase was supported by a 14.5% boost in table game revenue and a 9.5% rise in electronic roulette revenue. 

Mecca bingo venues in the UK posted modest gains, with revenue rising 1.9% to £36.6 million ($47.42 million). While customer visits to Mecca venues fell slightly by 1.8%, spending per visit rose by 3.8%.

The strongest performance came from Rank’s digital operations, which reported a 154% increase in revenue to €58.4 million ($65.19 million) for the quarter. In the UK alone, digital revenue climbed 18.3%, driven primarily by a 43.2% surge in online play within the Grosvenor brand.

However, not all digital markets performed uniformly. Revenue from Rank’s digital business in Spain dipped 2.9%, though the company expects a turnaround in the next financial year following updates to its technology platform and customer offerings.

On the land-based front in Spain, Rank’s Enracha venues generated £10.2 million ($13.2 million) in revenue during the quarter, a 4.1% increase compared to Q3 last year.

Cumulatively, revenue for the nine months ending March 31 stood at £597.4 million ($774 million), 12.2% higher than in the comparable period of the previous financial year. Grosvenor venues accounted for £283.2 million ($366.92 million) of that total, up 14.4% year-on-year.

Mecca venues generated £105.2 million ($136.30 million), marking a 4.8% increase, while digital operations brought in £178.6 million ($231.4 million), a 14.7% rise. Enracha venues in Spain contributed £30.4 million ($39.39 million), up 5.9%.

Rank CEO John O’Reilly acknowledged the strong momentum in a challenging business climate. “Since announcing our interim results in January, we have continued to deliver strong growth and expect to deliver group like-for-like operating profit for the full year in line with expectations,” he said.

“This is notwithstanding the uncertain economic environment and significant cost and regulatory headwinds we face from the start of Q4," he added.

O’Reilly also addressed the anticipated regulatory changes in the UK gambling sector. “We expect the government to publish the statutory instruments for land-based casino reforms in the coming weeks. We anticipate the rollout of additional machines and sports betting to commence during the summer,” he said.

Rank Group is scheduled to release its full-year results on August 14.