Rank Group Shares Fall on Higher Energy Costs

The Rank Group which operates Mecca Bingo, Grosvenor Casinos along with online gambling platform announced their three-month results to 30 September, with a 2% rise in group revenues to £165.7 million which was helped by a 13% rise in digital growth and a 25 increase in their bingo business.

However, the companies’ regional casinos fell below expectations helped by their London venues rising 21% in revenues but overall, the casino business fell 5% compared to the previous period.

Rank’s shares also fell 10% on the results not helped by the company predicting that their energy costs will rise by some £34 million for the current year in their casino and bingo businesses along also with wage inflation and food costs.

John O’Reilly, chief executive of Rank, said: “Whilst it is a challenging trading environment and we expect this to continue in the months ahead, we remain committed to delivering Rank’s market leading, exciting and entertaining proposition to our customers.”

“The group has a number of key initiatives under way to improve long-term revenues. These include some key refurbishment projects and new electronic roulette and jackpot games in Grosvenor; improving the gaming machine offering in Mecca; increased personalisation and a stronger live casino offering in the UK digital business and the recent launch of Yo Sports in Spain.

“The group has the benefit of a strong balance sheet, enabling us to continue investing in the business through this period.”