REG - Rank Group PLC - Trading Statement

RankAnnouncement

19/10/2023 07:00

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RNS Number : 5725Q  Rank Group PLC  19 October 2023

Trading statement

The Rank Group Plc

LEI: 213800TXKD6XZWOFTE12

 

 

19 October 2023

 

The Rank Group Plc (LSE: RNK) (Rank or the Group) announces the following
trading update for the quarter to 30 September 2023.

 

Group like-for-like Net Gaming Revenue ('NGR') for the first quarter ended 30
September 2023 ('Q1') grew 11% to £179.6m. On a channel basis, digital NGR
was up 7% and venues like-for-like NGR was up 12%.

 

 LFL NGR           Q1 2023/24  Q1 2023/24

                   £m           change
 Grosvenor venues  84.2        13%
 Mecca venues      34.7        11%
 Enracha venues    8.9         9%
 Digital           51.8        7%
 Group             179.6       11%

 

 

Grosvenor venues like-for-like NGR grew by 13%, driven by a 9% increase in
visits and 4% increase in spend per visit. London NGR grew by 8%, with the
rest of the UK growing NGR by 16%.  Average weekly NGR was £6.4m, up 10% on
Q4 2022/23.

 

Mecca venues maintained the momentum built up in the second half of 2022/23
with like-for-like NGR growth of 11%, driven by a 4% increase in customer
visits and a 7% increase in spend per visit.

 

Enracha venues, our Spanish bingo business, continued to deliver strong NGR
growth, up 9%.

 

Digital NGR grew by 7% with growth across both the UK business, which was up
6%, and the Spanish operations, up 15%.   NGR for our two key UK digital
brands, Grosvenor and Mecca, were up 14% and 9% respectively.

 

Outlook

 

The trading environment continues to be challenging with continuing high
inflation and interest rates and consumer discretionary expenditure remaining
under pressure.  However, following a positive performance across our
businesses in Q1, we are on track to deliver 2023/24 full year revenue and
profit growth in line with expectations.

 

John O'Reilly, Chief Executive, said:

 

"I am pleased to report that Rank has made a strong start to the year. After
an encouraging second half of 2022/23, we have maintained the momentum through
the first quarter of 2023/24 and have made good progress in driving revenue
and profit growth across the Group. Going forwards, we remain focused on
delivering the key growth initiatives within our digital business and
preparing our UK venues for the critical modernising reforms in the
Government's review of the gambling legislation.  These reforms, which are
planned to be implemented by next summer, will help Grosvenor and Mecca to
better meet the needs of our existing and prospective customers."

 

Forthcoming announcements

 

Rank will announce its interim results for the six months to 31 December 2023
on 1 February 2024.

 

 

Ends

 

 Contacts:
 Rank
 Sarah Powell - investor relations        Tel: +44 1628 504 303

 Media Enquiries:
 FTI Consulting LLP (PR adviser to Rank)
 Edward Bridges                           Tel: +44 20 3727 1067
 Alex Beagley                             Tel: +44 20 3727 1045

 

 

Notes to editors:

1.     NGR represents Gross Gaming Revenue after customer incentives.

2.     Like-for-like excludes the effects of club closures, club
reopenings and FX.

3.     All comparisons are with the same period in 2022/23.

4.     Q1 is for the period 1 July to 30 September.

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