Rank outsider as profits drop
COVID LEADS TO PRE-TAX LOSS OF £107M
GAMING giant Rank plunged more than £107million into the red due to the pandemic, after it had to close its Grosvenor casinos and Mecca bingo halls for more than half the year.
Rank makes more than 80 per cent of its money from venues and, as a result, it made a pre-tax loss of £107.3million for the 12 months to the end of June, versus a £13.4million profit last year. Revenues nearly halved, falling from £629.7million to £329.6million.
Chief executive John O’Reilly said he was “really pleased” with Rank’s performance given the unprecedented conditions and the way the business and its staff adapted.
Grosvenor returned to profit within a week of reopening all its venues on May 17. However, revenues are still down 19 per cent on pre-Covid levels. Its performance is being held back by its London casinos, which used to account for 42 per cent of business. O’Reilly said: “London is 40 per cent down and that’s because of the absence of international tourists and office workers.” Since Mecca reopened, trade is down 21 per cent compared to pre-Covid times. The bingo firm generated average weekly revenues of £2.6million. O’Reilly said the restrictions it operated under after reopening in May until they were lifted in July had affected its performance. He said: “We had a strong socialdistancing regime where customers were either sat on their own or with their bubble. It really reduced the social experience of bingo.”