Rank Group Revenue Grows 8% Year-on-Year in Fiscal Year’s First Quarter

Gross gaming revenue in fiscal year’s Q1 (three month’s leading to September 30th) for Rank Group has climbed 8% on annual level. The report was released by company officials and confirms that the Grosvenor Casino land-based operations and digital division were its main driving forces.

The said GGR was on like-for-like basis. Like-for-like net gaming revenue climbed 10% as well.

Grosvenor as the Shining Beacon of Business

As said above, the driving force for the revenue hike was the company’s digital arm. It propelled the Q1 growth as it rose 15% while net gaming revenue climbed 16%. The NGR growth of 27% for the Grosvenor digital operation is included.

Grosvenor Casino’s land-based operations was by far the best-performing aspect of their business in this quarter. Its GGR rose 10% on yearly basis, while its net gaming revenue climbed 15%.

Rank Group’s report has emphasized that, while the firm is content with Grosvenor’s good performance, Q1 is traditionally a good period for this venue. It had “strong win margins” across products. Whatsmore, all gaming verticals delivered strong revenue results.

Key Part of the Year

Investments into electronic roulette were very beneficial…

…as were the regulatory changes on B2 staking limits. Strong volumes in table handle were also noted, while machine revenue continues to grow steadily.

On a slightly less bright note, revenue in Mecca properties stayed pretty much the same on a yearly basis. It was noted that visitation volumes were somewhat lower, but this was offset by a higher spend per visit. Also, venues across the globe performed within expectations and forecasts. A 4% GGR and NGR was posted for this quarter for these.

John O’Reilly, Rank’s CEO, remarked:

“We are pleased with the growth achieved across our businesses in this key part of our financial year, as well as with the ongoing progress we are making with our transformation programme.”

“The acquisition of Stride marks a pivotal moment in the development of our digital offering and having completed on 4 October, we are now starting the execution of all our plans for integration and delivery of synergy benefits.” he added.

Stride Gaming Purchase

Last week, Rank Group purchased Stride Gaming for $146 million. The acquisition was accompanied by statements on complementary nature of both Stride’s and Ran’s operations. It was said that this merger would create a “leading multi-channel operator with genuine digital scale.”

Stride’s proprietary technology platform will boost the operational control and technology capability. The acquisition will also reinforce the team of digital leadership. It is also though that ‘an attractive financial profile with strong revenue synergy could be a result of this buy.

Stride’s NGR was down 15% year-in-year in financial year’s Q1. This is mostly caused by smaller customer acquisition and smaller margin in this period.

Source:

“Rank reveals digital and Grosvenor venues growth in Q1”, igamingnusiness.com, October 25th 2019