Disappointing Rank Group trading update
News on 18 Oct 2018
News on 18 Oct 2018
Online and land gambling Rank Group plc posted a disappointing trading update Thursday, reporting a 5 percent year-on-year sales decline due to high rollers ditching its casinos.
The company reported a 4.9 percent year-on-year decline in comparable group revenue for the 16 weeks to mid-October, hit by a drop in sales and traffic at its casinos and bingo halls.
Takings at the company’s venues fell 6.1 percent for the four weeks to mid-October, with its chain of Grosvenor Casinos seeing a drop in like-for-like revenue of 7.2 percent as big spenders went elsewhere.
Sales at its Mecca bingo halls fell five percent as the brand failed to attract visitors.
Rank’s digital revenue climbed 1.7 percent – with Mecca’s digital sales up 6.4 percent – but more stringent customer due diligence rules hurt Grosvenor’s online offering, contributing to a 5.2 percent decline.
On the brighter side, Rank reported impressive 46 percent growth in like-for-like takings at its newly-acquired Spanish bingo house Yo Bingo. Yo Bingo, bought in May, helped total group digital revenue grow 13.5 percent.
Investors reflected their concerns as Rank Group’s share price fell two percent in early morning trading.
The company said a transformation programme has identified some cost savings for the full year, which it told shareholders would partly mitigate Grosvenor’s revenue shortfall.
News on 18 Oct 2018
Online and land gambling Rank Group plc posted a disappointing trading update Thursday, reporting a 5 percent year-on-year sales decline due to high rollers ditching its casinos.
The company reported a 4.9 percent year-on-year decline in comparable group revenue for the 16 weeks to mid-October, hit by a drop in sales and traffic at its casinos and bingo halls.
Takings at the company’s venues fell 6.1 percent for the four weeks to mid-October, with its chain of Grosvenor Casinos seeing a drop in like-for-like revenue of 7.2 percent as big spenders went elsewhere.
Sales at its Mecca bingo halls fell five percent as the brand failed to attract visitors.
Rank’s digital revenue climbed 1.7 percent – with Mecca’s digital sales up 6.4 percent – but more stringent customer due diligence rules hurt Grosvenor’s online offering, contributing to a 5.2 percent decline.
On the brighter side, Rank reported impressive 46 percent growth in like-for-like takings at its newly-acquired Spanish bingo house Yo Bingo. Yo Bingo, bought in May, helped total group digital revenue grow 13.5 percent.
Investors reflected their concerns as Rank Group’s share price fell two percent in early morning trading.
The company said a transformation programme has identified some cost savings for the full year, which it told shareholders would partly mitigate Grosvenor’s revenue shortfall.
