logo-loader

Rank profits plunge as the house doesn't win in lockdown

Published: 03:57 10 Sep 2020 EDT

Rank Group -

Rank Group PLC’s (LON:RNK) confirmed that it will not be paying a final dividend after annual profits plunged because of the impact of the coronavirus pandemic. 

The casino and bingo hall operator said it had performed very strongly during the first part of the year and into the second half, but profits after tax fell 66% to £9.4mln on net gaming revenue down 8% to £638.1mln in the 12 months ended June 30, 2020 with its venues closed during the lockdown since mid-March.

Since reopening after lockdown on 15 August, revenues from Grosvenor casino venues are running at 60% of the prior year's levels, which the board is in line with the base case scenario modelling.

Mecca bingo venues, which has been open for a longer period, are running at 70% of the prior year, slightly ahead of expectations. base case scenario modelling. 

Enracha venues in Spain, which reopened at various points through June, are running at 65% of the prior year.  

Chief executive John O’Reilly said: “With positive momentum from the transformation programme, Rank performed very strongly during the first part of the year and into the second half. 

“Despite continued good growth in our digital brands, with our venues closed from mid-March, the impact of the COVID-19 pandemic on the group has been significant.

“However, with the huge commitment and dedication of our colleagues, very tight cost control across the business and the support we have received from government, we have carefully navigated the past few months and are now beginning to successfully emerge. We know the recovery will take time, but the underlying strength of our business provides us with confidence that we are well equipped to return to full strength.”

The shares rose 5% on Thursday morning to 131.19p.

Coniagas Battery Metals secures new key ground with focus on...

Coniagas Battery Metals (TSX-V:COS) CEO Frank Basa joined Steve Darling from Proactive to announce the company's strategic acquisition of key ground near SOQUEM’s Cardinal Property, located 80 km southeast of Chibougamau, Quebec. This acquisition underscores Coniagas’ commitment to capitalizing...

22 minutes ago