Mecca and Grosvenor owner the Rank Group has reported a 14 percent increase in NGR for the last six months of 2019, with the October acquisition of Stride Gaming adding an £18m boost to its half year figures.
The Rank Group has reported that NGR for the six months ended 31 December jumped 14 percent year on year to £397.4m, helping operating profit rise 117 percent to £56.1m.
Noting “good progress” following the October acquisition of Stride, which added £18.1m in NGR, the firm hailed the purchase as key to the rising figures, alongside the success of its Spanish bingo property.
“The successful integration of Stride into our business will ensure that we benefit from strong synergies, proprietary technology and a first-class digital team, all of which will position us well for the second half of the year,” said CEO John O’Reilly.
“The revenue growth in our digital business and across our Grosvenor and Enracha venues shows that we are moving in the right direction in key areas of our business.”
Though the company’s Yo brand saw NGR fall two percent on the previous year, its Mecca digital platform saw revenue rise 13 percent over the period, with the Grosvenor domain also posting a 21 percent growth in NGR.
Rank’s land-based venues also saw “strong” results, with Grosvenor sites seeing NGR rise 15 percent thanks to new product and technology launches, as well as the ongoing success of its London locations.
However, despite the promising trajectory for online bingo, Mecca’s bricks-and-mortar venues experienced a 1 percent drop in like-for-like NGR despite an increase in gaming machine uptake.
Commenting on the release, analysts Regulus Partners stated that it believes Rank management has “nailed the vision” in its aims to be “exciting, entertaining and safe,” with particular focus on its bricks-and-mortar venues.
“We see the strategic job now as to deliver this on the ground in order to create a role for land-based omnichannel as the ‘transactional’ customer increasingly shifts online and/or is limited by regulatory change.”
“This will be achieved by putting (new and existing) customer satisfaction at the heart of the offer, taking investment risks, driving evidence-based experiment and delivering active engagement with a legislative review process that could fundamentally rewrite the rules of the game.”