Projected Growth in Net Gaming Revenue for Rank Group: Insights Ahead
Rank Group anticipates a robust increase in its net gaming revenue (NGR), projecting it to reach around £795 million for the 2024-25 financial year, marking an estimated 11% growth.
In a recent trading update released ahead of its comprehensive results due in August, the company confirmed this forecast for NGR, which is reported to climb from approximately £734.4 million the previous year—a notable 9% rise.
The group is also predicting a significant increase in underlying operating profit, expected to be “at least” £63 million, suggesting a rise of 35.5% compared to last year’s figures. This optimism comes despite the challenges posed by rising costs and evolving regulatory demands.
A Dynamic Regulatory Environment
The backdrop to these projections includes recent changes to the UK’s land-based casino regulations, which will take effect on July 22. These reforms are reshaping the landscape, notably by increasing the number of gambling machines allowed in specified areas. This adjustment allows for up to 80 machines in larger venues, creating exciting opportunities for expansion.
In response to these regulatory shifts, Rank Group is proactively planning to add over 800 machines to its Grosvenor casino locations, which currently house 1,367 machines. The goal is to expand this number further, potentially exceeding 3,112 machines within the next few years.
“Exciting inflection point” was how CEO John O’Reilly described this moment, emphasizing the potential for strategic adjustments to meet customer demand effectively.
Drivers of Growth Beyond the Casino Floor
While the expansion of gambling machines is a significant focus, it’s essential to highlight that Rank’s growth trajectory is also being fueled by digital operations. In the third quarter, the group reported a remarkable 10.9% increase in overall revenue to £195.6 million, with digital segments experiencing a staggering 154% jump, totaling €58.4 million.
Traditional land-based venues, particularly Grosvenor casinos, continue to be primary revenue generators, contributing £90.4 million—an increase of 13%. Mecca bingo halls also showed marginal growth, whereas the Enracha venues reported a 4.1% increase, underscoring Rank’s diverse revenue streams.
Looking Ahead
As Rank Group prepares to unveil its full-year results on August 14, the outlook remains optimistic. The alignment of regulatory changes with strategic operational adjustments positions Rank favorably in the evolving gaming landscape. This dual approach may well ensure its continued growth and responsiveness to market trends, establishing a firmer foothold not just in the UK, but in its international ventures as well.