Rank Group PLC (LSE:RNK), the owner of Mecca Bingo and Grosvenor casinos, is trading with a pep in its step, rising by a little over 1.5% in Thursday’s early morning session after providing an optimistic outlook alongside its full-year results.
Challenging trading conditions, mostly the result of stubborn inflation and consecutive interest rate spikes, meant the group made a pre-tax loss of nearly £110 million in the 12 months ended 30 June 2023 and was unable to reinstate a full-year dividend.
Looking forward, the group is expecting to “see good levels of revenue increase year-on-year and grow profitability in 2023/24”, already starting “strongly” in the first six weeks of the new year.
Group net gaming revenue, a key metric used by gambling companies, is already 16% ahead of last year’s performance, with Grosvenor and Mecca Bingo venues delivering the best areas of growth, up 13% and 17% respectively.
Full-year revenues for the 2023 financial year rose by 7% to reach £678 million, made up of £203 million from digital sales and £477 million from venues.
John O’Reilly, chief executive officer at Rank, said: “The return of customers to our Grosvenor and Mecca venues continues to pick up and our second half numbers give cause for optimism after a very challenging couple of years.
“However, energy costs have stabilised, inflation appears to now be easing, customers continue to slowly return to both our Grosvenor and our Mecca venues, and we now expect to deliver good levels of revenue and profit growth.”
Shares in Rank opened at around 92p and are up around 15% in the year-to-date.