The Rank Group PLC (LON: RNK) saw a rise in revenue as its digital offerings continue to grow.
The gambling giant who owns Mecca Bingo and Grosvenor casinos announced that for the quarter ending 30th September, like-for-like net gaming revenue was up 10% and total net gaming revenue increased 9%.
Leading the rise in revenues was a strong performance from its digital offerings. A higher average revenue per user fueled a 14% increase in Mecca digital's net gaming revenue. Meanwhile, revenue from the Mecca Bingo offline venues posted a 0% growth in the last quarter.
For its Grosvenor casinos arm, Gross gaming revenue (GGR), defined by the firm as “revenue before adjustments for customer incentives,” saw an increase of 10% from the same time last year, whilst international venues posted a 4% increase in what is a traditionally strong quarter of the year. On the digital side, Grosvenor casinos posted a 27% growth for the quarter.
Having completed the purchase of Stride Gaming this quarter, Rank saw Stride's net gaming Revenues fall 15% from the same time last year, as lower customer volumes and reduced margins were being felt. However, as the integration progresses, improvements are expected to be seen in Stride's financial performance. The Rank board explained that migrating to Stride's proprietary technology platform would provide a boost to operational control and technology capability, with the purchase also set to enhance Rank’s existing digital leadership team.
CEO of Rank Group PLC (LON: RNK) said of the results:
“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 2019, we are now starting the execution of all our plans for integration and delivery of synergy benefits.”
Mecca Bingo Venues Flat Whilst Digital Soars
Rank's investment and focus into its digital offerings appears to be paying off. Whilst the performance of the Spanish bingo brand was in line with last year's results, the digital arms of Mecca Bingo and Grosvenor Casinos provided a much-needed boost to Rank Group's revenues after a profit slump earlier this year.
Mecca Bingo halls posted a nil % growth in revenues with numbers physically visiting its venues lower. However, the fall in numbers was offset by a higher average spend per visit.
Interim results will be announced by Rank Group PLC (LON: RNK) on 30th January 2020. Shares in the gambling company headquartered in Maidenhead rose initially on the revenues announcement, before pulling back to close at £210.50 down 0.94% on the day.
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