Rank Group anticipates that its consolidated income for the initial three months of its financial year 2021-22 will rise by 69% compared to the same period last year, with expansion across all operational divisions.
In a recent market update, Rank Group stated that total 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.
The organization attributed the anticipated growth primarily to the expansion of its venue operations, with its Grosvenor Casinos division’s income projected to surge by 209% year-over-year to £79.2 million, driven by the complete reopening of locations following the relaxation of COVID-19 regulations.
Rank Group observed that while London continues to experience the effects of diminished tourism, its Grosvenor locations outside of the capital have witnessed a return of net gaming income to levels approaching those observed before the pandemic.
Its Mecca Bingo locations’ revenue is also expected to increase by 41% to £34 million, as visitor numbers gradually improved throughout the quarter, although older and more frequent patrons have been slower to return compared to other demographics.
Furthermore, Rank Group’s Enracha venues in Spain are projected to experience a 20% rise in income to £6.5 million, as COVID-19 restrictions continue to be gradually eased.
Rank Group’s online business earnings in the United Kingdom are predicted to rise by 4% to £38.2 million.
The firm revealed that Grosvenor’s digital income soared by 12%, driven by a surge in online gamblers after the reopening of its physical casinos. Mecca’s digital income also experienced a 6% increase.
Despite the ongoing effects of regulatory changes in Belgium, which have restricted the capacity to offer promotional incentives to new patrons, global digital earnings are anticipated to expand by 11% to £5.2 million.
Rank declared that based on its current trading performance, it expects full-year earnings for the year ending June 30, 2022, to be between £700 million and £750 million, with EBITDA likely to be between £50 million and £75 million.
Rank CEO John O’Reilly remarked, “We’ve observed a very positive reaction from customers returning to our locations, and our team has done an outstanding job of ensuring they’re properly entertained in a secure environment.”
“While forecasting remains difficult in the current economic climate with cost instability and numerous supply chain difficulties in the aftermath of the pandemic, we are confident that trading will continue to improve across all our businesses for the remainder of the year.”
This anticipated growth follows Rank’s disclosure in August that its revenue had been halved during the 2020-21 period due to the pandemic’s impact. Rank also saw its operating loss expand for the year to £92.9 million from £49.1 million.
In August, the British tax agency, HMRC, declared they wouldn’t challenge a lower court’s decision on applying VAT to B2 gaming machine earnings.
This ruling enables Rank to secure a 60-day extension with the court, permitting operators to discuss their refund requests with HMRC. Rank anticipates receiving approximately £80 million.
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