The Rank Group recorded underlying operating profit of £40.4m for the year ended June 30, 2022, according to preliminary results published by the group.
Rank’s bottom-line was in the black for fiscal year 2022, despite a loss for 2020-21. The group’s improved profitability was a result of a 98% rise in underlying net gaming revenue.
The group’s top-line was adversely affected by the Covid-related closures in the prior year.
Rank’s underlying NGR has almost doubled to £644m from last year’s £325.3m. The 209% rise in venues underlying NGR was driven by a post-pandemic return to more normal operating conditions.
Digital experienced a 4% increase in its underlying NGR. The growth of this segment is a 27% hike when compared to calendar year 2019. Rank’s overall NGR remains below the levels of the previous year.
The group’s profit was in line with guidance issued in June, when Rank lowered its expectations from a previously guided range of £47m-£55m.
Difficult trading conditions in Grosvenor venues, particularly in London, prompted Rank to lower its guidance.
John O’Reilly, the CEO of The Rank Group, said that it was a challenging year for the UK venues businesses.
In normal trading conditions, our nine London casinos have seen very weak customer volumes, with overseas visitors few in number, and only starting to return in the final few weeks of the year.
Current macroeconomic factors are expected to make trading conditions difficult going forward.
Inflationary pressures will likely limit consumer discretionary spending in the months to come, and cost rises, particularly those related to energy, will put pressure on profit margins. As a result, the trading situation across the UK is expected to remain challenging.
The Rank Group had a pre-tax profit of £40.4 million for the 12 months ended 30 June 2022, compared to a loss of £82.4 million for 2020-21. The group’s underlying net gaming revenue increased 98% year-on-year. A post-pandemic return to more normal operating conditions resulted in a 209% rise in underlying NGR for Rank’s UK venues business.