Rank Group anticipates that its consolidated income for the initial quarter of its fiscal year 2021-22 will rise by 69% compared to the same period last year, with expansion across all operational divisions.
In a recent business update, Rank Group stated that comparable-store revenue for the three-month period ending September 30 is projected to reach £163.1 million (€192.3 million/$223.1 million), aligning with their predictions for the timeframe.
Rank Group emphasized that the anticipated growth is primarily fueled by expansion in its venue operations, with its Grosvenor Casinos division’s income expected to surge by 209% year-on-year to £79.2 million, driven by the complete reopening of locations following the relaxation of COVID-19 regulations.
Rank Group indicated that while London continues to be affected by diminished tourism, its Grosvenor locations outside of London have witnessed a return of net gaming revenue to levels close to those observed before the pandemic.
Income from its Mecca Bingo locations is also projected to increase by 41% to £34 million, as visitor numbers gradually improved throughout the quarter, although visits from older and more frequent patrons have been slower to recover compared to other demographic groups.
Furthermore, Rank Group’s Enracha locations in Spain are anticipated to experience a revenue increase of 20% to £6.5 million, as COVID-19 restrictions continue to be progressively eased.
The company anticipates a 4% hike in digital income in the United Kingdom, reaching £38.2 million.
The company highlights a 12% increase in Grosvenor’s digital earnings, driven by the rise of omnichannel operators following the reopening of its land-based gambling establishments, while Mecca’s digital income also expanded by 6%.
Despite ongoing regulatory changes in Belgium hindering promotional offers to new patrons, international digital revenue is projected to climb by 11%, reaching £5.2 million.
The company states that based on its current trading performance, it anticipates full-year same-store sales for the fiscal year ending June 30, 2022, to be between £700 million and £750 million, with pre-tax profits expected to range from £50 million to £75 million.
John O’Reilly, the company’s chief executive, said, “We’ve observed a positive response from our clientele as they return to our locations, and our colleagues have performed admirably in ensuring they are entertained safely.”
“While forecasting remains a challenge in an environment with cost fluctuations and numerous supply chain obstacles as we emerge from the pandemic, we are confident that trading across our businesses will continue to improve in the remaining months of the year.”
The projected growth follows the company’s announcement in August that its revenue had been halved during the 2020-21 period, as the company felt the impact of the pandemic. The company’s operating loss for that year also widened from £49.1 million to £92.9 million.
Furthermore, in August, the UK’s tax authority, HMRC, declared it would not contest the First-tier Tribunal’s (FTT) verdict regarding the application of VAT to revenue generated by B2 gaming machines.
This determination signifies that Rank can engage in a 60-day period of inactivity with the FTT, enabling the operator to settle its reimbursement claim with HMRC, which Rank anticipates will amount to approximately £80 million.
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