15th Oct 2019 09:33
(Alliance News) - Gambling firm Rank Group PLC on Tuesday said net gaming revenue rose in the first quarter, helped by a strongly performing digital segment and positive trading from the Grosvenor Casinos brand.
In the period to September 30, net gaming revenue rose by 9% in total and by 10% on a like-for-like basis, both on a year before.
Digital net gaming revenue grew by 16%, helped by strong trading from both Grosvenor, and Rank's Mecca Bingo brand.
Grosvenor, which aside from digital gaming, also operates a chain of 55 casinos in the UK, had a 15% like-for-like net gaming revenue rise in its venues when compared with the first quarter of last year. The first quarter is traditionally the brand's strongest quarter, though last year's comparative was weak, Rank added.
Performance in Mecca venues was flat, however, the FTSE 250 firm added. A higher spend per customer per visit was offset by fewer visitors at the sites, Rank explained.
Net gaming revenue from international venues increased by 4% like-for-like, in line with expectations.
Rank said: "All gaming product areas delivered revenue growth with electronic roulette continuing to benefit from the investments we have made to the machine estate together with the regulatory changes on B2 staking limits in April."
Rank, fresh from completing the GBP115.3 million takeover of gambling peer Stride Gaming, said first quarter net gaming revenue at the newly-acquired unit fell by 15% year-on-year to GBP16.3 million. Rank attributed this to lower customer acquisition volumes and reduced margins during the quarter.
Chief Executive John O'Reilly said: "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 October 4, we are now starting the execution of all our plans for integration and delivery of synergy benefits.
Rank added that it will release its interim results on January 30.
Shares in the company were 3.6% higher at 206.00 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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