Rank Group revenue plummets 55%
Covid-19 closures and responsibility measures severely impacted the UK-based operator, which posted a loss for H1.
UK.- Land-based casino and bingo closures and new affordability measures for digital channels cause a 55 per cent drop in revenue for The Rank Group in the first half of its 2020-21 financial year.
Like-for-like revenue for the six months ending December 31 fell 58 per cent to £156.9m.
Revenue from land-based venues fell by 70 per cent to £90.9m. Digital revenue rose just 1 per cent to £66m.
Adding in the effect of Rank’s acquisition of Stride Gaming, the opening of new venues and some permanent venue closures, total revenue reached £177.6m, a drop of 55 per cent year-on-year.
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After factoring in all costs and tax credits, Rank saw a loss of £48.6m for the six-month period. That compares to a profit of £39.8m in the same period in 2019.
Rank’s casino brand, Grosvenor, made a loss in every segment. Its digital segment reported a loss of £5.8m, down from a profit of £8.1m in 2019. Its land-based venues reported a loss of £22m, compared to a £48.1m profit in H1 2019.
Rank’s Mecca Bingo venues saw a loss of £6.1m, compared to a £15.5m profit in the same half in 2019. International venues lost £600,000, after a £4.2m profit in the previous year.
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John O’Reilly, chief executive of Rank Group, said: “There is no doubt that the impact of the Covid-19 pandemic has been far beyond anything we or any other leisure operator could have imagined or planned for.
“The ever-changing restrictions coupled with curfews, which in particular have a seismic impact on our Grosvenor venues, have resulted in an exceptionally challenging first half for the group.
“I have remained incredibly impressed with our teams who have displayed high levels of professionalism and adaptability under the continuously changing circumstances.
“Despite the difficulties we are facing, they have continued, through a range of initiatives, to help our local communities, front line workers and those who are vulnerable.”
New affordability measures
Coupled with the impact of the Covid-19 pandemic on land-based casino and bingo bingo venues, growth in Rank’s digital segment had been stifled by new affordability measures.
O’Reilly said Rank had been stringent in applying new restrictions on higher staking customers.
The group completed a £70m equity placing in November and has gained support from lenders, which it hopes will see it through further periods of closure.
