Rank Group Q3 2024: NGR Soars 6% to £182.3m, Driven by Venue and Digital Growth

Rank Group Reveals Robust Q3 2024 Performance: NGR Climbs 6% to £182.3m

The Rank Group, a prominent force in the gaming industry, has unveiled its fiscal Q3 2024 results, and the figures paint a picture of continued growth and resilience. For the quarter ending March 31, 2024, the company reported a 6% year-over-year surge in net gaming revenue (NGR), reaching an impressive £182.3 million ($227.4 million). This upward trajectory was driven by solid performances across both Rank's land-based and online verticals.

At the heart of Rank's diverse portfolio, the iconic Grosvenor brand registered a 3% increase in NGR to £80 million for the quarter. Remarkably, the year-to-date (YTD) value soared by 8%, reaching £247.5 million – a testament to the brand's enduring appeal and strategic execution. Despite the traditionally subdued post-Christmas period, Grosvenor venues reported a 5% uptick in visitor numbers, underscoring the unwavering loyalty of its customer base.

The Enracha venues demonstrated even stronger growth, with NGR surging 9% over both the quarterly and year-to-date periods, reaching £10 million and £29.5 million, respectively. However, it was the Mecca brand that emerged as the true standout performer, boasting a remarkable 12% jump in NGR to £37.3 million for the quarter and a 10% increase to £104.5 million on a YTD basis.

Driving Mecca's success was a potent combination of factors, including a 5% growth in customer visits and a 7% boost in spending per visit – a trend that was particularly pronounced during the Mother's Day and Easter celebrations.

John O'Reilly, Rank Group's Chief Executive Officer, expressed his satisfaction with the company's performance, stating, "We continue to make good progress across both our venues and online businesses, with Q3 trading very much in line with the Board's expectations. Performance continues to improve, and we have the very important land-based reforms from the Government's White Paper to look forward to, which we hope to start implementing in the coming months."

Rank's digital operations also demonstrated resilience, with NGR rising 6% to £55 million for the quarter and 7% to £163.4 million on a YTD basis. The company's digital platforms saw impressive growth of 6% in the UK and a staggering 20% in Spain. While Mecca's digital NGR soared by 21% in the UK, Grosvenor's increase was a more modest 1%, which Rank attributes to "some big customer wins."

In a strategic move, the company has also entered into an agreement to divest its holding in Passion Gaming, an Indian online rummy business, with the transaction expected to close in the coming weeks.

As the financial sector remains abuzz with quarterly reports, Rank Group's robust performance stands as a testament to its strategic acumen and ability to navigate the ever-evolving gaming landscape. With industry giants like Entain also reporting impressive results, such as a staggering 100% growth in Central and Eastern Europe, the gaming industry continues to captivate investors and enthusiasts alike.