Sales at Rank hit as high-rollers rein in spending

Mecca bingo owner Rank Group has posted a hefty slump in sales over the past four months as high-rollers reined in their spending at the firm’s casinos.

The company posted a 4.9% decline in revenue in the 16 weeks to October 14, dragged down by a decline in customer visits and spending, particularly at its Grosvenor Casino venues.

Like-for-like sales tumbled 7.2% at Grosvenor due to a reduction in spending from high-rollers, while its digital channel saw revenue decline by 5.2%.

Mecca Bingo’s venues also saw comparable revenue slip by 5% as visits dropped, but this was partially offset by a 6.4% rise in digital sales.

Rank said it was able to identify some “early cost savings” as part of a transformation plan to mitigate the Grosvenor revenue shortfall in the financial year.

Shares in the casino operator were trading 2% lower but later recovered to stay flat at 162p.

The trading update comes after Rank posted a 41% decline in annual profits in August, having suffered from stricter checks on punters and a drop in bingo and casino customers.

The group saw pre-tax profit for the year to June 30 tumble 41.4% to £46.7 million, against a 2.3% fall in like-for-like revenue to £738 million.

Rank Group chief executive John O’Reilly said at the time that the company is pushing ahead with a turnaround plan following its poor performance.

It includes new bingo concepts like Big Bingo Bash, Bonkers Bingo and YoBingo, a Spanish digital bingo operation.