Rank Group Counting the Cost of the Pandemic: 48% Slump in Rank Profits

The numbers are in and The Rank Group who own Mecca Bingo and Grosvenor Casinos, are blaming the pandemic for £72million in pre-tax losses, a figure down £9.4m when compared to the same period the previous year. Net gaming revenues were £629.7m prior to the global pandemic, a year later, that sum plummeted to £329.6m - that’s a 48% decrease in revenue! However gloomy that may seem, the company are hopeful the numbers will pick up again now that all venues are back open for business.

Chief executive John O'Reilly described the year as “exceptionally challenging” adding “Frankly, we are delighted it is over. We are now well into a new financial year with our venues open and trading positively.” Both Mecca Bingo halls and Grosvenor Casinos are reportedly doing better than expected since restrictions were lifted.

More than 79% of the revenue for the group came from venues…

…not online, which means we were bound to see some haemorrhaging of profits, what with closures affecting 59% of operating days. To put that into perspective, the net loss is the equivalent of £15m per month, but with strong revenue and profit growth being witness pre-pandemic, Mr O’Reilly remains hopeful for the future.

Complete Turn Around

Many industries are facing huge losses due to the pandemic, but there is one operator who are surging ahead with profits and that is the Paddy Power Flutter. Like all other businesses, Paddy Power betting shops were closed for more than half a year, but since reopening, profits are way better than expected with a 7% rise compared to the figures from pre-pandemic.

Since the shops have been open, the number of players heading online has increased almost 60%, but there has also been a rise in the number of people phoning gambling helplines in this period – up 9% in the year to March. Flutter said its global revenue rose 28% to £3bn as its average number of people gambling rose 40% to more than 7.5 million.

In 2020, the House of Lords revealed there were more than a third of a million problem gamblers in the UK, and of those, the young were most at risk. The report stated 2 million people were harmed as a direct result of gambling with “the breakup of families, crime, loss of employment, loss of homes and, ultimately, loss of life” listed as the reasons why.

Gambling should be fun, but for some, it can take hold of their life. When gambling goes beyond entertainment and turns into something more serious, it’s time to stop and get help. The Safer Gambling organisation offer free advice on how to gamble safer 24-hours a day, 7-days a week. 

Source: “Rank Group Racks Up Big Losses After Venues Shut During Lockdown”. BBC News. August 19, 2021.