Rank Group NGR jumps 11% as bosses prepare for slots stake cap impact

Rank Group has reported a 11% year-on-year (YoY) rise in net gaming revenue (NGR) for the six months ended 31 December 2024 as the operator’s fiscal H1 got off to a strong start.

Reported NGR jumped from £362.6m to £401.8m YoY, while operating profit soared 148% from £16.2m to £40.2m.

The omnichannel business behind the Grosvenor and Mecca brands also posted a significant 228% increase in post-tax profit, rising from £8.8m to £28.9m.

Rank’s shares were up almost 6% in early morning trading to 95p, before losing some of those gains. The share price has jumped more than 30% in the past 12 months.

Management said “focused investment” had resulted in revenue growth across the group, with increases in both land-based and online operations.

On the digital front, Rank Group NGR rose14% on a pro forma basis, up from £105.1m to £120.2m.

Total operating profit rocketed 205% to £19.2m, while on a pro forma basis the metric increased 43% to £14.2m

Within the division, Mecca continued to lead the way, with NGR up 21% to £48.1m. Grosvenor revenue climbed 22% to £41m.

NGR for other proprietary brands rose 6% to £11.6m. The group’s Spain-facing Enracha and Yo platforms reported a NGR increase of 5% to £13.5m.

Non-proprietary brand revenue slipped 25% to £6m during the reporting period. This was due to the £7.5m sale of a brand in December 2024, bosses said.

The sale, which was to Broadway Gaming, included a £3m upfront payment and £4.5m to be paid over the next three years.

On the growth, the London-listed firm said UK-facing Mecca benefited from the launch of a proprietary app, while investment in the loyalty programmes for both Mecca and Grosvenor drove gains.

Mecca is also set to secure a “cross-channel single membership” as part of bolstering the omnichannel offering.

However, Rank Group added that despite the growth, the new statutory levy to fund research, prevention and treatment (RET), set to be introduced in April, would have an annualised impact on digital profitability of £2.8m.

Rank will hand over 1.1% of digital GGR under the new system, while the incoming £5 stake cap for online slots is due to be implemented in H2.

Management said it still expects the firm to be towards the upper end of previous guidance of 8% to 12% NGR CAGR (compound annual growth rate) and 600 basis points of margin improvement relative to 2022-23’s accounts.

In terms of land-based operations, Grosvenor accounted for the lion’s share of group revenue with £192.8m, up 15% YoY on a pro forma front.

Mecca returned pro forma revenue of £68.6m, up 6%, while Enracha venues posted revenue of £20.2m, up 7%.

John O’Reilly, Rank Group CEO, said: “We are pleased to deliver another good set of results as we continue to take advantage of the growth opportunities available to us and maintain a strong momentum across all of our businesses.

“Customers are responding positively to the investment we are making and to the experiences we are delivering both online and in our venues.”

However, the CEO did note that fiscal H2 would be impacted by regulatory headwinds.

He continued: “The second half will see inflationary employment cost headwinds and the negative financial impact of some of the measures in the Gambling Act, but we are confident that our ability to both grow revenues and secure further cost efficiencies will help us to sustain our positive profit trajectory.”

The post Rank Group NGR jumps 11% as bosses prepare for slots stake cap impact first appeared on EGR Intel.

 Operator also reports 148% leap in group operating profit, with digital arm boosted by proprietary apps and further omnichannel gains
The post Rank Group NGR jumps 11% as bosses prepare for slots stake cap impact first appeared on EGR Intel.