Rank lowers 2022 profit guidance due to Grosvenor venues ‘soft performance’

Rank Group Plc has this morning issued a profit warning, accounting for the below expectations performance of its UK Grosvenor casino venues, which have been dragged by a ‘softness in visitor numbers’.

The LSE gambling group has revised down its 2021/2022 underlying profits from its previous range of £47-to-£55 million to an expected result of approximately £40 million.

“We have seen some improvement in Grosvenor’s performance post-April, but it has been considerably weaker than expected, principally due to a slower than expected return of higher spending overseas customers to our London casinos,” – read Rank’s trading update.

Meanwhile, year trading continues to suffer from a “softness in visitor numbers across the UK and a lower-than-average casino win margin in the quarter to date”.

Despite its casino venue drags, Rank noted that performances across its other business units of Mecca Bingo and Rank Digital have been “broadly in line with management’s expectations”.

During the COVID-ravaged 12 months ending June 30, 2021, the company’s statutory performance saw revenue drop 48 per cent to £329 million (2019/20: £629.7m).

Group operating loss for the year came in at £93 million as opposed to income of £21.5 million for the prior period, with loss after tax closing at £72 million from income of £9.4 million

The board of Rank will publish the firm’s full-year 2021/2022 results on 18 August.