During a capital markets event held on November 30th, Rank Group CEO, John Harris, outlined the company’s ambitious plans to increase Grosvenor’s revenue to at least £7 million per week.
Harris emphasized that this growth would largely come from activities within Rank’s control, but acknowledged that this target was set before any potential benefits from the Gambling Act review or significant property estate changes.
Harris expressed confidence in pushing the business well beyond the £7 million per week mark in the medium term.
The latest financial results for Q1 2023-24 reported Grosvenor venues’ revenue at £84.2 million.
The company also has its sights set on digital revenue growth, with Harris aiming for an 8%-12% increase in the coming years.
He explained that this revenue growth, combined with operational leverage and a focus on efficiency, would lead to improved margins.
Harris made a bold claim regarding Rank’s Mecca venues, stating their intention to turn around last year’s £5.8 million loss into a double-digit operator profit in the medium term.
Regarding the Gambling Act review, Harris revealed that Rank had been actively engaged in consultations and expressed optimism about the overall outcome.
He highlighted the potential for modernizing the casino proposition in the UK, particularly by increasing the number of gaming machines allowed in Grosvenor casinos.
Additionally, Rank’s UK bingo operations are set to benefit from a revision of the 80:20 rule, allowing more Category B and C/D gaming machines.
The company also plans to simplify the customer journey through electronic payments in casinos and bingo venues.
Jon Martin, Rank’s COO, emphasized the company’s market position, holding 27% of the bingo market and 38% of the casino land-based market.
Rank aims to leverage its venue brands and capitalize on cross-channel opportunities.
Harris did mention some challenges, such as the maximum stake limits for online slots and the increased statutory levy outlined in the white paper.
However, he confirmed the company’s commitment to implementing these measures in the new year.
Harris also discussed the impact of the Covid-19 pandemic on Rank’s performance, particularly in the bingo sector.
The company reduced its number of bingo clubs from 80 to 55 to optimize profitability.
Looking ahead, Enric Monton, Rank International Managing Director, revealed plans to go live in Portugal by the end of the financial year, aiming to become the first online bingo operator in the growing Portuguese market.
In Spain, another of Rank’s operating countries, Monton expressed confidence in the company’s position and its potential for growth, including innovative products like live bingo.