Rank Group Shows Profit As Recovery Continues

Gaming operator Rank Group PLC, whose ventures include Mecca Bingo and Grosvenor, have presided over strong financial recovery towards the back end of 2021. Interim H1 numbers demonstrate net gaming revenue has hugely improved versus the previous like-for-like figure, and further good news is expected for 2022 trading.

Indeed, NGR registered at £334m for the period, a colossal 90% uplift on H1 20/21. This was delivered amidst substantial headwinds. Throughout the autumn and winter, stringent COVID regulations have been in place across Scotland and Wales, two strategic locations for Rank Group. Furthermore, Spanish authorities have continued their curbs on capacities in venues, which has undermined their Enracha casino properties.

CEO John O’Reilly, although delighted with the results, has also expressed caution on the prospective outlook. The group’s Mecca audience, due to its older age demographic, are yet to flood back into bingo halls, and January performance has been stunted by continued COVID restrictions. However, with England formally stepping out of all restrictions today, there’s plenty of reason for optimism.

Rank Group boast strong recovery across all channels, and are therefore not reliant on their bricks-and-mortar establishments, boding well for any future pandemic restrictions. H1 digital performance uplifted by £7m on the like-for-like period, and the migration of Mecca Bingo onto its RIDE platform looks set to further consolidate this positive run rate.

When looking at the full picture, the swing in the group’s fortunes is seismic. At the end of a tumultuous 20/21, Rank announced losses of £42m. Profits at the halfway point this year register at £24m. The operator projects full year EBITDA performance to hit roughly £55-£65m. Therefore, it looks like more of the same as we progress through the first month of 2022.