Rank's revenue increased by 12% in Q1 due to double-digit growth in digital and venues.
For the quarter ending September 30th, net gaming revenue was £197.5m, or €236.4m or $256.6m. Rank recorded £179.6m in the first quarter of last year, so this is a significant improvement.
As Rank detailed in a trading update, the company's land-based and digital divisions also saw growth. Both online and offline sales increased by 10% and 15%, respectively, from the previous year.
Rank's land-based romance
Revenue from Grosvenor Casinos venues increased by 13% to £95.3m, according to Rank, who is in charge of the land-based operation. Therefore, the casinos are the primary means by which the group earns money.
The effects of a 2% rise in visitors and an 11% increase in spend per visit were also recognised by Rank in Q1. As a result, the segment was able to post higher-than-expected profits, and growth was uniform throughout the UK and London, according to the report.
Revenue for the Mecca Bingo land-based division was £34.7m, up 4% from the previous year. There was a 1% decline in total visitors year-on-year, but Rank mentioned a 5% gain in spend per visit.
After a slower trading period in July due to the beautiful weather and England's participation in the Euro 2024 football competition, the group reported that visitor volumes rose up towards the conclusion of Q1.
In addition, Rank's Spanish land-based venues brand Enracha had a 9% increase in revenue to £9.6m.
Rising digital activity in the first quarter
The digital division of Rank's business was the most fruitful in terms of expansion. The company's digital activities in the United Kingdom and Spain both contributed to a 15% increase in sales to £57.9m in the first quarter.
Rank reported a 15% increase in digital revenue for the UK as a whole. Sales for the Grosvenor brand were up 21% and for Mecca they were up 23%.
Digital revenue in Spain was 15% higher year-on-year in the first quarter.
Ranked well for future expansion
Rank expressed confidence in meeting goals for like-for-like operating profit based on Q1 performance.
Rank CEO John O'Reilly expressed his satisfaction with the company's start to the fiscal year, saying, "We have continued to build on the momentum that we have generated over the past year and a half."
While we are pleased with the results across the board, we are especially pleased with the double-digit increase we have seen in our Grosvenor venues and UK digital business. The enhancements we are implementing to both our physical estate and our digital offering are obviously pleasing our customers.
"Rank has become a more robust and long-term viable company, and we eagerly anticipate the implementation of the land-based legislative reforms in the year 2025."
The intermediate results for the first half of 2025 will be announced by Rank on January 30, 2025.
