The Rank Group published a quarterly update on financial performance for the period ending 31 March 2022.
It reported that the UK locations under Grosvenor/Mecca were shut down for Q3 2020/21. However, Enracha Spanish venues were still open during the third quarter of previous year, but with severe capacity limitations.
In March 2019, the most recent comparable quarter was back. Grosvenor’s net gaming revenue (NGR), was 14% lower than the comparable period. Mecca saw a decrease of 25%. Enracha locations saw an improvement in NGR, with only 2%.
The UK NGR for digital content was down by 1% over the previous year. Grosvenor Digital saw a 3% increase in its NGR as it continues to enjoy the benefits of omni-channel partners. Mecca digital NGR declined 11% as a result of the migration to RIDE in January.
The performance of Rank’s other digital brands was varied; for example, with a growth of 42% of brands operating on the RIDE platform which was partly offset by a revenue decline of 25% in the non-proprietary brands due to affordability restrictions in H1 2021/22 by other operators. International digital also dropped by 5%
The Rank Group observed that despite being a low-season period at Grosvenor, they anticipate an improvement in April. As we approach the summer, performance trends will be closely monitored by the Rank Group as it measures the return rate to London office workers from city centers and customers abroad.
And due to the Q3 trends, numbers of UK venue visitors and continued inflationary costs, Rank is updating its previously guided EBIT range of £55m-£65m ($72m-$85m) for the year ending 30 June 2022 to a range of £47m-£55m.
John O’Reilly is Rank’s CEO. He stated that “The performance at our venues has softened in March and continued into Q4 with the same effect, impacting our expectations for our full-year performance.”
We are aware of the challenges facing UK customers but we believe that our customer proposition improvements and investments in venues will continue to improve. This, along with the slowly reducing pandemic impact and returning overseas customers, will position us for the coming year.
Rank announces its preliminary results in the twelve months ended 30 June 2022 at 18:55.
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