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Rank Group, the owner of Mecca Bingo and Grosvenor Casino, has raised its full-year profit guidance after reporting strong results over the Christmas and New Year period.
The company’s performance was boosted by a 13 percent increase in like-for-like gaming revenues (NGR) for the six months ending 31 December 2024. This surge brought NGR to £401.8 million (€457.1 million), reflecting healthy demand in both its physical venues and online operations.
For its venues, Rank saw a 12 percent rise in NGR, while its online division saw a 14 percent increase. Group-underlying like-for-like profits climbed 55 percent, reaching £32.9 million (€37.5 million). This fantastic first half of the year has been attributed to a bumper trading period over Christmas and New Year. This positive momentum has continued into January.
Now, Rank expects its full-year operating profits to slightly exceed previous expectations despite their anticipated higher costs.
John O’Reilly, Rank’s Chief Executive, commented on the strong performance:
“Customers are responding positively to the investment we are making and to the experiences we are delivering, both online and in our venues.”
He also expressed confidence in the company’s ability to manage inflationary pressures and other cost challenges, including potential financial impacts from measures in the Gambling Act.
O’Reilly also mentioned projections for the future, saying that Rank is preparing to take advantage of the expected legislative reforms in land-based gambling. O’Reilly said,
“We are readying ourselves to take full advantage of the benefits of the land-based legislative reforms, which we expect to see implemented from summer 2025.”
Despite this positive outlook, O’Reilly recognised that Rank faces inflationary employment cost headwinds in the second half of 2025. Additionally, aspects of the Gambling Act reform may also have a negative financial impact. Nonetheless, O’Reilly is optimistic about Rank’s ability to grow revenues and ensure further cost efficiencies.
Rank has targeted specific investments in various areas:
Greg Johnson, an analyst at Shore Capital, told ShareCast that the results were promising. He highlighted the potential for continued profitability growth in the medium term, particularly with Rank’s digital operations and Grosvenor venues. Johnson also cited the new land-based reforms presented opportunities for Rank’s business.
Rank has proposed an interim dividend of 0.65p per share. They also reported a decline in net free cash flow, which dropped 82 percent to £4.3 million (€4.9 million) compared to £23.5 million (€26.79 million) in H1 2023/24. However, Rank reported a 23 percent decrease in net debt, bringing it down to £111.8 million (€127.25 million).
As of 30 January 2025, Rank’s shares were trading 2 percent higher at 91.5p.