Spiralling Energy Costs Contributes to Drop in Rank Group Profits

Spiralling Energy Costs Contributes to Drop in Rank Group Profits

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Shares in Rank Group, the owner of Mecca Bingo and Grosvenor Casinos, have fallen sharply (8%) after the gaming operator issued a profit warning. Annual profit is expected to be hit hard due to the cost of living crisis, and they suspect those gaming revenues to be at least 50% lower than the same period last year.

Grosvenor Casino revenues have improved over the last few weeks, however, Rank have blamed the challenging economy, along with the highest inflation for 40 years for the current drop in revenue. Energy costs are being blamed as customer budgets continue to be squeezed.

The company said it now expected to report like-for-like underlying operating profit in the range of £10m to £20m for the year ended 30th June. Profits in 2021/2022 were £40m.

John O'Reilly, chief executive of Rank, said: "Weak consumer confidence and pressure on disposable income is resulting in a tougher than expected trading environment for our UK venues businesses, particularly in Grosvenor where we are seeing customers spending less per visit. Whilst we expect these challenges to continue to impact our recovery into the second half of the financial year, we have implemented a series of measures to deliver incremental cost savings and to drive revenues."

About Rank Owned Mecca:

Rank has been in the business of entertaining Britain since 1937 with Mecca Bingo celebrating a landmark 60th Birthday last year. Rosehill was the first club to open its doors, and thanks to Eric Morley, British TV host and director of Mecca, the game of bingo took off, taking them from humble beginnings to the largest high street bingo chain in the UK!

It was in the 1970’s that things started to change. Traditional bingo cages with physical balls were replaced by more modern technology. Thirty years later, Mecca dipped their toe into the world of online bingo and in the year 2000, Mecca Bingo went live online!

They’re award winning too! In 2014, 2015 and 2016, Mecca Bingo was awarded ‘Bingo Operator of the Year’ at the International Gaming Awards. The Rank Group, owners of Mecca Bingo, also scooped up the ‘Socially Responsible Operator of the Year Land Based’ award in those years.

At the 2016 EGR Innovation and Marketing Awards, Mecca Bingo won ‘Best Native App’ and ‘Innovation in Bingo’ for their exclusive Emoji Bingo game. Then in 2017, they took home the coveted WhichBingo award for ‘Best Customer Services’ and ‘Most Socially Responsible,’ plus the EGR award for ‘Best Mobile Bingo Product’.

Famed for their no deposit daily features, free bingo rooms, triple welcome offer and massive choice of both bingo and casino games, customers are eligible to play for free and win real cash prizes! Current promotions include escalator jackpots, everyone’s a winner £40K games, xmas prizes and much more!

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Source“Mecca Bingo Owner Rank Group Issues Profit Warning After Bad Few Months For Revenue”Sky News. December 16, 2022.

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