One of the biggest gambling companies – the Rank Group – has urged London customers to get to their normal “fired-up” selves again, after it suffered significant losses because of the coronavirus pandemic. The gambling operator is also hit by the continued absence of affluent casino patrons and high-rollers.
As the group revealed in a statement for its preliminary annual results for the year that ended on June 30th, 2020, its pre-Covid-19 results remained strong, demonstrating the efficiency of its new strategy. However, the annual revenues for the twelve-month period generated by the Rank Group’s eight Grosvenor casinos in London equal only 40% of the levels generated in the previous year because of the lengthy coronavirus lockdown, which was lifted only several weeks ago.
Although the gambling venues held by the operator outside the country’s capital city are typically generating levels of approximately 75% of the prior year levels, London is a destination of paramount importance for the Rank Group because, normally, over 50% of the Grosvenor brand’s turnover is generated there. Apart from that, the gambling company has been concerned about its results in regard to the continued lack of football because of the social distancing measures imposed to tackle the further spreading of the coronavirus infection.
The Coronavirus Lockdown Hits Gambling Group’s Brands Hard
John O’Reilly, the Chief Executive Officer of the Rank Group, confirmed there was a slight improvement in the number of high-roller office workers who visited the London-based Grosvenor casinos in the past week. He, however, further explained that it was crucial for the company to see that consumer confidence was brought back to public transport. He further added that London needs to get “fired up” again so that things get back to normal.
Mecca Bingo is another brand owned and operated by the Rank Group. For the time being, 72 of the brand’s 77 bingo venue have resumed operation after the country’s lockdown. The bingo brand that is normally achieving 70% of the previous year revenues, now has its visitor rates running at about 55%. The gambling operator revealed that customers over the age of 70 have been more difficult to be brought back to the Mecca Bingo venues. CEO O’Reilly, however, explained that patrons should not be worried because the size of Mecca’s bingo halls makes them perfect locations in the conditions of social distancing measures.
The Rank Group has kept a satisfactory performance before the coronavirus pandemic outbreak, which seriously disrupted the operations of all gambling companies. Right before the pandemic stroke, the gambling group saw its shares reach a 14-year high in February to 326p. However, their prize experienced a massive decline, falling as low as 85p in March following the Covid-19 outbreak.
In its preliminary report, the company said that its underlying profits fell by 32% to £51.1 million in the twelve months to June 30th, 2020, despite the fact that before the pandemic the profits of its Grosvenor casino brand had been up by 121%, while the ones of Mecca Bingo were down by 4%.
- Author
Olivia Cole
