Rank Group Reports Strong Q3 Performance with Digital Channel Surge
In an impressive showcase of resilience, Rank Group has announced a notable 10.9% rise in net gaming revenue during the third quarter of the 2024 fiscal year, buoyed by explosive growth in its digital sectors.
According to their trading update released today (April 10), revenue for the quarter ending March 31, 2025, reached £195.6 million (€228.9 million/$251.3 million), an increase compared to £182.3 million from the same period in the previous year.
The cornerstone of Rank’s financial health remains its Grosvenor bricks-and-mortar casinos in the UK, which contributed significantly with £90.4 million in revenue—a 13% increase year-on-year. This growth was largely fueled by a robust 14.5% rise in table game earnings along with a 9.5% boost in electronic roulette.
In the realm of bingo, Rank’s Mecca venues saw a modest revenue uptick of 1.9%, totaling £36.6 million. While overall customer visits dipped by 1.8%, the average spend per visit notably rose by 3.8%, reflecting a potential shift in spending behavior among patrons.
Digital Sector Triumphs Despite Challenges in Spain
The standout performer in this quarter is undeniably the digital segment, where revenue skyrocketed by an astonishing 154%, amounting to €58.4 million. The UK’s digital revenue alone surged by 18.3%, bolstered by a remarkable 43.2% growth in online activity related to the Grosvenor offerings.
However, it wasn’t all smooth sailing, as the Spanish market presented challenges with a 2.9% revenue decline. Looking forward, Rank anticipates a rebound in Spain by mid-2025-26, pointing to ongoing enhancements in their platform and customer enticements as catalysts for growth.
In Spain, the Enracha venues still exceeded prior year figures, reporting £10.2 million in revenue for Q3, marking a 4.1% increase.
Robust Year-to-Date Figures
For the nine months leading up to March, Rank has collectively recorded revenue of £597.4 million, representing a 12.2% uplift compared to the previous fiscal cycle. Grosvenor venues proved to be the primary revenue generator, attracting £283.2 million—a 14.4% year-on-year increase. Meanwhile, Mecca venues added £105.2 million to the tally, showing a 4.8% rise during the same timeframe.
Digital operations saw a 14.7% growth, yielding £178.6 million, while Enracha’s revenues in Spain also demonstrated an upward trend with a 5.9% rise, reaching £30.4 million.
CEO Commentary on Growth Amidst Challenges
Addressing the results, CEO John O’Reilly expressed optimism, recognizing the growth achieved amidst challenging economic conditions. He highlighted both the volatility in the market and impending regulatory changes affecting land-based gambling in the UK.
“Since our interim report in January, we have seen our growth momentum sustain, and we are on track to meet our year-end profit expectations,” O’Reilly stated. “This is particularly impressive given the economic unpredictability and the formidable cost and regulatory challenges we are navigating as we enter Q4.”
O’Reilly also mentioned the anticipated release of proposed regulations for land-based casinos, expected soon, and hinted at the potential rollout of new machines and sports betting options during the summer.
Rank Group plans to unveil its comprehensive annual results on August 14, providing further insights into its strategic endeavors and financial performance.