Venue closures cause Rank Group revenue to fall by half

The Rank Group saw its revenue cut in half for the 2020/21 financial year after land-based closures due to the pandemic caused havoc to the operator.

The group’s, whose brands include UK’s largest casino operator Grosvenor Casinos and Mecca Bingo, underlying net gaming revenue (NGR) fell to £288.2m ($392.4m) for the 12 months ending 30 June 2021.

Digital underlying NGR was down slightly by 6% to £136.3m. But venue closures for much of the pandemic meant venues underlying NGR was 65% less than the same period last year, falling to £151.9m. That was primarily responsible for an underlying operating loss of £67m, down from the £48.4m profit made a year prior.

On a statutory basis, reported NGR fell by 48% down to £329.6m with operating loss tumbling 532% from 2019/20 to £92.9m.

Rank Group CEO John O’Reilly said: "The year to 30 June 2021 was exceptionally challenging for the Group and, frankly, we are delighted it is over. We are now well into a new financial year with our venues open and trading positively."

"Clearly there is still some uncertainty how the pandemic will impact our businesses over the next few months, however we are confident that with our leading bingo and casino brands, supported by a proven transformation programme and strengthened balance sheet, we are competitively well placed to benefit as the hospitality sector and its consumers emerge from the pandemic."

It's been a difficult period for the land-based sector in the industry, especially Rank Group who relies on 79% of its revenue from its land-based businesses. The pandemic caused casinos and other land-based venues to be shut in mid-March, while they only reopened on 15 August 2020 in England. Then with local lockdowns in the autumn before another nationwide confinement in the winter which lasted until March, venues have only been reopen since 17 May in England and Wales.

Since that reopening until 15 August, Grosvenor’s like-for-like NGR is down 19% on the same 13-week pre-pandemic period in 2019, with Mecca down 21%. However, weekly revenue has been £5.7m during the same 13-week period for Grosvenor.

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