Rank Group revenue plummets 72% ahead of May reopening

Rank Group has reported a 72% year-on-year fall in net gaming revenue (NGR) for the trading quarter ended 31 March 2021. The UK casino operator’s venue-based revenue tumbled 98% due to closures to its Grosvenor Casinos and Mecca bingo halls brought about by the Covid-19 pandemic. During the quarter, which Rank registers as Q3 2020, all of the firm’s UK venues were closed. In Spain however, nine of Rank’s bingo-based Enracha venues were open, albeit under strict capacity restrictions. Rank’s digital revenue slipped 3% when compared to the same period in 2020 but increased by 3% on a like-for-like, quarter-on-quarter basis, or 4% with the inclusion of Stride Gaming revenue. The FTSE 250 operator didn’t reveal any monetary amounts in its results. At an online divisional level, Grosvenor Digital NGR dropped 2% quarter-on-quarter, while Mecca Digital NGR increased 4% over the same period. NGR from the Stride Gaming business rose 7% quarter-on-quarter, with Rank’s Yo brand contributing the biggest revenue upsurge amid a 10% jump. “We have ended Q3 broadly where we expected to be and are now very focused on the reopening of our UK venues from 17 May alongside continuing to drive digital NGR growth,” Rank Group CEO John O’Reilly said. “Our business has inevitably been heavily impacted by the pandemic but, with the strong support and dedication of our colleagues, we are now very much looking forward to reopening our casino and bingo venues. “We continue to make good progress on the transformation 2.0 plans which will drive the next phase of growth for the group,” O’Reilly added. During the quarter, Rank received a £13.4m duty refund from HMRC following a November 2020 Supreme Court decision that ruled operators would not have to pay duties on free gaming chips. The firm has also received a £25m boost to its balance sheet following the sale of its sole Belgian casino property to Kindred Group. Peel Hunt analyst Ivor Jones wrote: “Digital continued to turn the corner in Q3 and the venues in Spain are showing encouraging signs that customers are keen to come back despite continuing Covid-19 restrictions. “Assuming that the UK venues can open in May as planned, Rank has an adequate liquidity. We expect a strong reopening from venues and we reiterate our Buy recommendation,” he added. Rank expects to report preliminary results for the 12 months ending 30 June 2021 in August.