UK gambling operator Rank Group has seen their profits take a slump in the first three months in 2018 as less players visited the group’s network of casinos and bingo venues.The company, which owns brands including Mecca Bingo and Grosvenor Casinos, has fallen victim to restrained spending habits by British players due to Brexit concerns, real-wage growth, and more.
Q1 report
Rank Group released their report for the first quarter of 2018 last week which showed like-for-like revenue for the company has dropped by 2% year-on-year.Grosvenor Casinos took a big hit, with profits sliding by 9%, while Mecca Bingo saw a 2% reduction, due predominantly to “weaker than expected visits” from players who were held inside by poor weather conditions.The bigger loss for Grosvenor is due to a run of luck for big spenders at the casino which had a further impact on the company’s profits.The digital arm of Rank is continuing to perform well, with revenue up 17% year-on-year, but that hasn’t been enough to stop Rank Group seeing a drop in profits overall.The boar’s full-year operating profit has dropped from £84.5 million to as low as £76 million.
Cautious
A statement from Rank Group after the Q1 report, said:“The Board is cautious about the UK consumer outlook and as a result expects the Group’s UK venues to continue to be impacted for the remainder of the 2017-18 financial year and into 2018-19.”Looking to change their fortunes, Rank Group will focus more on their digital offerings such as Meccabingo.com and Grosvenorcasinos.com.There is also a planned television marketing campaign on the horizon in the second half of the fiscal year which is expected to attract more players to Rank Group’s online sites, to make up for the depleting attendance to their land-based venues.