Rank Group has published preliminary results for the 12 months ending 30 June 2022, recording £40.4m ($48.7m) in operating profit.
For the 2022 fiscal year, Rank’s final outcome was uncertain following a loss of £82.4m in 2020/21. The group’s improved profitability came as a result of a 98% increase in net gaming revenue (NGR). The previous year was “heavily impacted” by Covid-19-related closures, which negatively affected the group’s revenue.
However, the Rank’s NGR has nearly doubled to £644m from last year’s £325.3m. This was driven by a 209% growth in net revenue from local games, reflecting a post-pandemic return to more normal operating conditions.
Meanwhile, digital gaming revenue experienced a 4% year-over-year increase. While this segment’s growth was more modest, it represents a 27% increase over calendar year 2019.
CEO assesses Rank Group’s performance and projects future challenges
As such, the group’s profit was in line with guidance issued in June, when the group lowered its expectations from a previously guided range of £47m to £55m. The decision to reduce its orientation was motivated by “difficult trading conditions in Grosvenor, particularly in London”.
“It has been a challenging year for our local UK businesses, with unexpectedly smoother trading at the Grosvenor property in the second half of the year,” said John O’Reilly, CEO of Rank Group.
“Our nine London casinos, which account for over 38% of Grosvenor’s revenue under normal trading conditions, have seen very weak customer volumes with few foreign visitors and only starting to return in the final weeks of the year.”
Going forward, O’Reilly expects trading conditions to remain “difficult”, due in large part to current macroeconomic factors.
“While we have seen improvements in London in recent weeks, the business environment across the UK is likely to remain difficult in the coming months, with inflationary pressures putting pressure on consumer spending and cost increases, particularly in energy prices, taking a toll on profit margins. ”, concluded the CEO of Rank Group.
