Rank Group racks up big losses after venues shut during lockdown

Mecca bingo halls owner Rank Group has reported a hefty loss after it had to close its venues during UK lockdowns.

The group, which also owns the Grosvenor casino chain, slid into a pre-tax loss of £72m, in the year to the end of June, down from a £9.4m profit in the previous year.

Net gaming revenues fell by 48% to £329.6m, compared with £629.7m.

But trading since reopening was "encouraging" and likely to get even better as tourists return, it said.

Chief executive John O'Reilly described the year as "exceptionally challenging" and said: " Frankly, we are delighted it is over."

However, he added: "We are now well into a new financial year with our venues open and trading positively.

"Our venues have been performing ahead of our expectations following the easing of restrictions on the UK hospitality sector on 17 May and we anticipate further growth as travel restrictions eventually ease and tourism returns, particularly to London."

Revenues in the Grosvenor casinos in the 13 weeks to 15 August were down 19% on the same time in 2019, pre-pandemic, while at Mecca, bingo revenues were 21% lower.

Rank said 79% of its group revenues came from its venues rather than online gaming.

"Closures imposed in the government's response to the pandemic amounting to 59% of available operating days, together with capacity constraints, reduced opening hours and other restrictions during the year, have had a material impact on the group."

The group lost £15m a month, net of government support through the furlough scheme and business rates relief, at the height of the pandemic.

However, Mr O'Reilly said the group had been "delivering strong revenue and profit growth before the pandemic".

The steps it had taken over the last 18 months would enable the group to "return to that growth trajectory as the impact of the pandemic reduces and consumer confidence for indoor leisure experiences grows".

Its online business in the UK had faced a "year of transition" as it progressed with online platform technology. However, revenue had "disappointed".

It had also been a "challenging" year for online "following the stringent application of affordability restrictions", he added.

During lockdown, the Gambling Commission issued new guidance for online gaming operators to ensure consumer protection.

The Commission said the move followed evidence that "some gamblers may be at greater risk of harm during lockdown". That included affordability checks.

Shares fell at the start of trade in London and are now about 4% lower.