Rank Group Posts 72% Revenue Drop
Renowned British gambling operator Rank Group just released its financial results for Q1 2021. The firm posted a massive 72% YoY decline in Net Gaming Revenue (NGR).
The operator attributed the dismal performance to all physical venues in the UK and Spain remaining shut. The Rank Group was barely operating nine venues by the end of Q4 2020. According to its official press release, the Maidenhead-headquartered firm posted a 98% decline in YoY revenue at its land-based properties as the nation grappled with the effects of the global coronavirus pandemic.
Most of the gambling venues were forced to stay shut for a major portion of last year. At the same time, only nine Enracha-branded venues remained operational in Spain. The management revealed that these nine venues, located in Barcelona, Cordova, Reus, Seville, Girona, and Madrid, posted a steady increase in demand during the phase. Although, the operator strictly maintained all social distancing guidelines laid out by the Spanish authorities.
Independent Performances within Rank Group
Rank Group currently operates a bunch of online gambling platforms, including MeccaBingo, Enracha, and GrosvenorCasinos. The three platforms collectively posted a 3% YoY decline in revenue. However, independent performance was slightly better as Mecca Digital posted a 4% increase in revenue compared to the last quarter, while Stride had a slightly better margin at 7%.
Stride Gaming has platforms like MagicalVegas, RegalWins, and SpinAndWin under its belt, which attributed to the gain. Rank Group’s Spanish websites YoCasino and YoBingo also had an impressive run, posting a 10% revenue jump during the period.
The company ended Q1 2021 on a positive note as liquidity improved with £89.8m in available cash, which met its base liquidity threshold of £50m. The firm received an additional £13.4m in duty refund from the Supreme Court after the apex body ruled in favour of another taxpayer on free gaming chips. The Rank Group Accumulated an additional £25m from the Blankenberge Casino sale in Belgium.
Focus on Digital Assets in Future
Rank Group’s Chief Executive Officer John O’Reilly explained that the firm is currently focused on growing its net gaming revenue and expects to post steady growth at the end of Q3 2021. He added that the firm’s current performance is broadly in line with “our hopes and expectations” following the massive surge in coronavirus infections during a major portion of last year. O’Reilly is looking forward to the physical reopening of land-based gambling venues in the United Kingdom from May 17.
His statement reads,
“Our businesses suffered tremendously during the pandemic. But with the strong and unending support from our staff and patrons, we look forward to reopening our physical casino and bingo operations in the UK from May 17”.
He also added,
“We look forward to welcoming guests with great joy and pleasure, and we hope to offer great entertainment and service in a coronavirus-free environment. We continue to make great progress as part of our Transformation 2.0 strategy and are looking forward to implementing the next phase of the process”.
Category: Gambling industry