Rank Group GGR up 8% as digital revenues spike
Operator reports double-digit growth in digital revenues for Grosvenor and Mecca brands
Rank Group has revealed an 8% year-on-year increase in gross gaming revenue (GGR) in a trading update this morning for the three months ended 30 September.
The London-listed operator reported the strongest growth in its digital segment, where GGR rose by 15% during the period.
Grosvenor digital net gaming revenue (NGR) grew 27% during the period, thanks to “strong growth” in customer numbers, while Mecca digital’s NGR was up 14% thanks to higher ARPU.
Rank said performance in its YoBingo! Brand in Spain market was” in line” with last year but declined to give specifics.
Gross gaming revenue from the Grosvenor Casinos venues business also rose by double digits during the period up to 30 September, increasing by 10%.
Gross gaming revenue from Rank’s retail Mecca business remained largely flat during the period, with Rank confirming the lower customer visits to Mecca venues had been offset by a higher consumer spend per visit.
Rank Group CEO John O’Reilly said he was pleased with the growth the business had achieved during the key part of its financial year, coupled with the ongoing progress the business had made with its transformation programme.
Following the update, London investment firm Shore Capital upgraded its full year 2020 economic forecast for Rank Group from a prior £78.3m to £93m.
Earlier this month, Rank Group completed its £115m deal to acquire Stride Gaming, folding the business into the wider Rank Group.
Rank said Stride Gaming’s net gaming revenue slipped by 15% year-on-year in the period up to 30 September, with revenues dropping to £16.3m. The operator attributed this revenue decrease to lower customer acquisition volumes and reduced margins during the period.
Despite the poor results, Rank said its “remains confident” in the potential of the Stride business to deliver the positive benefits to the business outlined when the deal was initially announced.
“The acquisition of Stride marks a pivotal moment in the development of our digital offering and having completed on 4 October 2019, we are now starting the execution of all our plans for integration and delivery of synergy benefits,” O’Reilly added.
Shares in Rank Group rose by 0.80% in early trading today on the London Stock Exchange to a price of 199.60p per share.