Rank reported a 23 percent fall in first half pre-tax profits, to to £27.7m, citing lower customer numbers at its bingo halls as the key driver for the figure.The gaming group, which is majority-owned by Malaysia’s Guoco Group, had warned in October that profits would fall short because of the impact of a summer heatwave on its bingo business Mecca.
“As previously guided, the first half of the current financial year was challenging with like-for-like brand performances down on the same period last year,” Chief Executive Ian Burke said in a statement.
Burke added that the company has responded to difficulties in its Mecca bingo and Grosvenor casino businesses by cutting costs and seeking to boost revenues.
Rank runs 97 Mecca bingo halls in Britain, and also now has 55 Grosvenor casinos in the country after buying 19 from Gala Coral Group in a £179m deal last year.
“Management anticipates operating profit in the second half, excluding the impact of the acquired casinos, will be broadly in line with the comparable period last year,” Burke concluded.
source : www.totallygaming.com
