Rank Group reduces earnings guidance
Despite an uptick in revenue in the third quarter, Rank Group has dropped its EBIT guidance to between £47m and £55m
UK.- Rank Group has reduced its earnings before interest and tax (EBIT) guidance for full-year 2021-22 despite a 220.5 per cent increase in revenue in the third quarter. It’s cut its EBIT guidance from £55m –£65m to £47m – £55m.
It’s reported that net gaming revenue for the three months ending March 31 reached £156.4m, up from £48.7m in 2021 thanks to the normal operating of land-based casinos and bingo halls after the lifting of Covid-19 restrictions in the UK. Grosvenor Casinos generated £69.1m, up from £100,000 in the same three months in 2021.
Mecca bingo revenue bounced back from £300,000 to $34.1m, and Enricha venues in Spain generated £8m, an increase of 263.6 per cent year-on-year.
Decline in online revenue
However, revenue from UK digital operations fell 1.5 per cent to £40m. Grosvenor’s digital revenue was up 3 per cent with a uptick in omni-channel players, but Mecca digital revenue was down 11 per cent owing to its migration to the RIDE platform in January.
Other brands on the RIDE platform saw revenue rise 42 per cent but non-proprietary brands’ revenue fell 25 per cent due to operators’ new affordability restrictions. Revenue from international digital operations fell 5.5 per cent to £5.2m.
Rank noted that Q4 is often a quieter season at Grosvenor Casino venues and it’s uncertain of how the quarter will play out amid inflationary pressure.
The results of a survey conducted by the market research company YouGov have suggest that rising inflation in the UK could soon have an impact on the gambling sector. The survey found that half of all active gamblers planned to stop or reduce their gambling.
Chief executive John O’Reilly said: “The performance of our venues softened in March, and this has continued into the first few weeks of Q4, impacting our current expectations for our full-year performance.
“We recognise the pressures on UK consumers but are confident that the improvements we are continuing to make to the customer proposition and the investments in our venues, alongside the gradually reducing impact of the pandemic and, with it, the return of overseas customers, position us well for the year ahead.”
See also: MP accuses gambling industry of failing to present alternatives
