Rank Group posts £156.4m in Q3 NGR as digital and retail returns slip
Operator yet to return to pre-pandemic levels as split between proprietary and third-party tech takes toll
Rank Group has posted a 221% rise in Q3 2022 revenue year-on-year (YoY) but has suffered from downturns across its digital brands.
The astronomical rise from £48.7m to £156.4m for the three months ending 31 March 2022 comes from the reopening of the company’s retail operations.
However, its digital brands showed decline and the growth in net gaming revenue (NGR) from its retail operations were in fact down from the most comparable period pre-Covid.
Grosvenor digital grew by 3% but Mecca digital NGR was down 11% due to the anticipated impact of its migration onto the RIDE platform in January.
Rank said the split between its brands operating on its proprietary RIDE and third-party platforms meant its digital performance was mixed.
Brands operating on the RIDE platform grew 42% in terms of NGR while non-proprietary brands declined by 25% due to what Rank noted as the “introduction of affordability restrictions in H1 2021/22 by other operators”.
International digital was down 5%.
Elsewhere, Rank’s retail operations were able to reap the rewards of the relaxation in Covid-19 restrictions to return significant NGR.
Grosvenor venues returned £69.1m compared to just £0.1m in 2021 while Mecca venues accounted for £34.1m up from £0.3m.
The firm’s Spanish Enracha venues NGR jumped from £2.2m in 2021 to £8m.
The closure of UK venues in Q3 2020 and Q3 2021 meant Rank noted the best comparative for its recent results was Q3 2019.
In that regard, Grosvenor venues NGR was down 14% while Mecca venues NGR fell by 25%.
Enracha venues NGR also dipped by 2% when compared to Q3 2019.
Looking towards the next quarter, Rank said it was entering a traditionally low seasonal period for its retail operations but did expect an uptick in performance post-April.
Rank said that due to the downturns in both retail and digital NGR, along with inflationary costs in the UK, it had reassessed it EBIT guidance for the full year ending 2022.
The firm noted its previous EBIT range of £55m-£65m had been adjusted to £47m-£55m.
John O’Reilly, Rank CEO, said: “The performance of our venues softened in March, and this has continued into the first few weeks of Q4, impacting our current expectations for our full year performance.
“We recognise the pressures on UK consumers but are confident that the improvements we are continuing to make to the customer proposition and the investments in our venues, alongside the gradually reducing impact of the pandemic and, with it, the return of overseas customers, position us well for the year ahead,” he added.