Covid-19 lockdown wipes out Rank Group revenue for Q3
Rank Group’s venue revenue was down by 98 per cent and net gaming revenue down by 72 per cent year-on-year due the UK’s winter Covid-19 lockdown.
UK.- Rank Group, the owner of Grosvenor Casinos and Mecca Bingo, has reported that net gaming revenue for Q3 was down 72 per cent year-on-year, while overall venue revenue was down 98 per cent due to the UK’s winter Covid-19 lockdown.
According to the trading and corporate liquidity update for the period ending 31 March, the group also saw digital revenue decline by 3 per cent.
Net gaming revenue from Grosvenor’s digital business fell 2 per cent against the previous quarter, although revenue from Mecca’s digital division climbed 4 per cent.
Stride, the online gaming operator the Rank acquired in late 2019, saw revenue increase by 7 per cent against the previous quarter, while in Spain Yo’s revenue rose by 10 per cent.
As for liquidity, Rank reported that it had finished the quarter with £89.9m in cash and available facilities. Its level of deferred rent fell to £13.9m from £17.3m in the last quarter, and it boosted its cash reserves with the sale of its Belgian casino subsidiary Blancas to Kindred Group for £25m.
It also received a £13.4m refund of duty after a Supreme Court decision that favoured another company regarding free gaming chips.
The group said it was now looking forward to the opening of casinos and bingo halls in the UK next month.
CEO John O’Reilly said: “We have ended Q3 broadly where we expected to be and are now very focused on the reopening of our UK venues from 17 May alongside continuing to drive digital NGR growth,” O’Reilly commented.
“Our business has inevitably been heavily impacted by the pandemic but, with the strong support and dedication of our colleagues, we are now very much looking forward to reopening our casino and bingo venues, welcoming back our customers and providing the great entertainment and omni-channel service in a COVID safe environment we know they enjoy.”
