The leading gaming and entertainment company, The Rank Group Plc, released its latest preliminary results revealing details regarding its performance for the 12 months ended June 30, 2023. The recent financial report emerged Thursday and reveals that while net gaming revenue for the period increased, a decrease in the operating profit was observed.

Overall, Rank posted a group underlying like-for-like (LFL) net gaming revenue (NGR) of £679.7 million ($866.5 million). This result, when compared to the corresponding period for 2021/2022, when NGR halted at £633.2 million ($807.3 million), represented an increase of 7%.

While NGR in 2022/2023 increased based on the preliminary results, Rank’s underlying LFL operating profit marked a decrease. The company revealed that underlying LFL operating profit for the 12 months ended June 30, 2023, halted at £20.3 million ($25.9 million). This result, marked a 52% year-over-year decrease when compared to the £42.5 million ($54.2 million) result from 2021/2022. Although Rank acknowledged that this result marked a decrease when compared to the prior period, it said that the latest figure was “in line with the upgraded guidance provided in April 2023.”

The Company Remains Optimistic, despite the Difficult Operating Environment

John O’Reilly, The Rank’s chief executive, acknowledged that despite the challenging environment in the last few years, the company has seen an uptick in the visitation of its Mecca and Grosvenor venues. He said that the figures from the second half of the trading period showed an uptick in business volumes.

O’Reilly spoke about the difficulties high wage inflation, increased energy costs and tightening of regulations brought for the company in the UK. However, he noted that those negative effects of the operating environment are fading away, which leaves Rank optimistic.

“However, energy costs have stabilized, inflation appears to now be easing, customers continue to slowly return to both our Grosvenor and our Mecca venues and we now expect to deliver good levels of revenue and profit growth.“

John O’Reilly, chief executive of The Rank Group Plc

Further details released by Rank reveal that its Digital underlying NGR for the recent trading period hit £202.9 million ($258.6 million), up by 10% when compared to the £183.8 million ($234.3 million) result from the 2021/2022 period.

Similar growth was observed for the company’s Venues underlying NGR. Overall, Rank’s Venues posted £476.8 million ($607.8 million) in underlying LFL NGR this year. Comparing this result year-over-year to the £449.4 million ($572.8 million) reported for the 2021/2022 period shows that this year, an increase of 6% was observed.

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Super Group, the group behind the Betway and Spin gambling brands, has published its preliminary Q4 and full-year 2022 financial results. The company saw its revenue exceed the guidance range, causing Super Group to be optimistic about the future despite certain declines.

Super Group’s unaudited Q4 financial highlights show Q4 revenue of around $353 million (converted to USD, current rates). This represents a slight year-on-year decline from 2021’s $365 but is still a very favorable result.

Profit before tax was $41 million for Q4, which, once again, fails to surpass the Q4 2021 results. EBITDA, meanwhile, plummeted from $89 million in Q4 2021 to $60 million in Q4 2022. Operational EBITDA, meanwhile, fell by 39% to around $45 million.

While Super Group’s financial metrics took some hits, the group reported an increase in its monthly average customers. In Q4 2022, the company reported 3.4 million monthly customers, surpassing 2021’s 2.9 million.

Super Group also published its unaudited FY 2022 results. The company recorded revenue of $1.38 billion for the year, which is just below the 2021 results. Profits before tax for 2022 were $250.5 million and actually exceeded those recorded in 2021. EBITDA, meanwhile, was around $320 million and still fell short of exceeding the 2021 results. Operational EBITDA, on the other hand, dipped by 31% to 223.5 million.

Super Group recorded 2.9 million monthly average customers in 2022, exceeding the 2.6 million recorded in 2021. The company also reported unrestricted cash of $273 million as of December 31, 2022.

Super Group Continues to Prioritize Profitability

2022 saw Super Group wrap up its reorganization efforts. Thanks to an agreement with Sports Entertainment Acquisition Corp, Super Group became a publically-listed entity. Last September, the latter company also acquired a majority ownership interest in Jumpman Gaming.

Super Group executives addressed the results, with CEO Neal Menashe saying that the company is now a “leading global pure-play sports betting and online casino company.” Menashe added that optimization and expansion are always at the top of Super Group’s list of priorities.

We continue to efficiently invest in our brand, enhance our technology platform and benefit from our consistent cash generation. We feel we are well-positioned to apply our well-tested strategies to the U.S. markets and capitalize on what we see as a multi-year investment opportunity.

Neal Menashe, CEO, Super Group

Alinda van Wyk, the company’s chief financial officer, also addressed the results. She praised the company for its financial strength and said that Super Group will continue run our business profitably while investing in tech and marketing.

We remain focused on operating more efficiently in 2023 in order to improve scale and our operating margins going forward.

Alinda van Wyk, CFO, Super Group

Super Group started 2023 with the acquisition of the online operator Digital Gaming Corporation Limited. Some days after that, the group’s board announced the repurchase of up to $25 million of Super Group ordinary shares.

In other news, the company just parted ways with Alan Alger.

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The preliminary results took a look at both the fourth quarter and the full year. In terms of four-quarter performance, the company posted revenue of $576.7 million, but net loss amounted to $476.8 million, the company said in the update shared with media late on Monday.

Fourth Quarter Sees “Unacceptable” Interactive Division Performance

Adjusted EBITDA stood at $145.8 million while adjusted EBITDAR was posted as $164.4 million. Bally’s President – Interactive and the company’s incoming chief executive officer – Robeson Reeves – commented on the results and what they meant for the business. Reeves focused on the company’s strengths at first, arguing that Bally’s has achieved record results in the Casinos & Resorts and International Interactive verticals.

He noted that revenue had a 12% organic growth in the fourth quarter, with Asia seeing positive year-over-year organic results as well. Reeves, though, spared no harsh words for the company’s domestic market where North America Interactive results were simply dubbed “unacceptable” by the executive, explaining the decision to cut 15% of its workforce.

Reeves assured that presently, the company is focusing on making executive decisions that will lead to a near-term path to profitability in sports. He remained confident that the company’s share in iGaming markets, such as New Jersey and Ontario, will continue to improve for Bally’s. However, there are difficult choices ahead, Reeves cautioned:

As part of the restructuring, we are evaluating multiple options, including leasing technology structures that integrate quickly and effectively with our world class iCasino and Marketing tech stacks.

Incoming Bally’s Corporation CEO Robeson Reeves

Land-Based Sector Likely to Keep Momentum in 2023

Bally’s President – Casino & Resorts, and incoming Bally’s President, George Papanier outlined the company’s land-based activities, arguing that while some additional loss was generated through the introduction of projects such as the company’s Chicago resort, the overall capital expenditures towards property improvements will begin to decline in 2023. If anything, Papanier expects the company’s momentum in the land-based sector to continue.

The company’s full-year preliminary results were posted at $2.25 billion for 2022, with expected net loss to decrease from the fourth quarter to $414.8 million. Adjusted EBITDA for the full-year is expected to be at $548.5 million, the company’s reported stated. Bally’s cautioned that once the final report is published, the results may change. Updates are forthcoming.

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The operator released its unaudited results for H1 FY23, revealing strong performance but an overall drop in revenue. The Star explained that for H1 FY23, the domestic revenue of The Star Gold Coast increased by 30% when compared to the corresponding period pre-COVID or H1, FY19. This result marked an achievement for the company as it set an all-time high record.

Moreover, The Star’s latest trading update provided details regarding the performance of its Treasury Brisbane location. The revenue from this segment in H1 FY23 increased by 9% when compared to pre-COVID levels. According to the company, the revenue was favorably impacted by strong performance within its hospitality segment, as well as record results for slots and table games.

In contrast to the aforementioned increases, The Star Sydney saw a drop in revenue. The Star acknowledged that NSW Casino Control Act changes in combination with the Bell probe and operating restrictions ultimately impacted the result of the location.

The hospitality and entertainment operator said that the factors that impacted The Star Sydney’s performance also led to a decrease in the number of complimentary services for private gaming areas and an increase in the number of excluded visitors. As a result, judging by the latest report, the revenue of the property decreased by 13.5% when compared to pre-COVID results.

The Company Remains Committed to Ensuring License Suitability

Given the expected performance for H1 FY23, The Star provided an update for H2 FY23. The trading update revealed that the entertainment giant anticipates underlying EBITDA between AU$ 330 million ($229.5 million) and AU$ 360 million ($250.4 million) for the year ending on June 30, 2023.

“We have been pleased with the ongoing strength of trading across our Queensland based properties, while trading at The Star Sydney has been impacted by operational changes associated with the outcome of the Bell Review as well as competition from Crown Sydney.“

Robbie Cooke, CEO and managing director of The Star Entertainment

Robbie Cooke, The Star Entertainment’s CEO and managing director, acknowledged that The Star Sydney’s operations are still impacted by different operational changes. At the same time, he pointed out that the company is pleased with the performance of its Queensland venues.

“Our key priority is to regain the trust of our community and demonstrate to our regulators that we are suitable to hold our casino licenses,“

added Cooke

Cooke pointed out that in light of the uncertain legislative developments and regulatory changes, the company has taken “a prudent approach to assessing the carrying value of our assets, which has resulted in a non-cash impairment charge which will be recognized in our H1 FY23 results.” In conclusion, he confirmed that The Star remains committed to collaborating with the Queensland Special Manager and NSW Manager to ensure the suitability of its businesses.

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