Mecca Bingo Hall Owner See Revenues Drop By 41 Percent Following Challenging Year
Revenues for Mecca Bingo owned Rank Group have plummeted by no less than 41 percent in the year to 30 June. The main reason for this drastic decline was less bingo and casino customers attending venues as well as tighter regulatory controls which are being imposed on the sectors.
Revenues for the Group’s Grosvenor Casino business also saw a 6.1 percent drop for the same period with visitors to Mecca Bingo falling by 7.9 percent.
In light of the poor results Rank’s share price dropped by over 3% to 170.50p after plummeting over 6% earlier on in the day.
The Rank Group said that operating profit for Mecca Bingo fell 4.3 percent this was actually a smaller decline than expected. The positive news is that digital revenues increased by 9 percent to £122.5m. This however could not make up for the falling numbers of players attending the bingo halls. Rank CEO John O’Reilly was quick to reassure investors that they were set to implement a plan to turnaround the poor performance, He said,” We are taking steps to increase our focus on the customer, to accelerate growth in the digital business, to drive cost efficiencies across the business and to strengthen our organizational capabilities. This will be delivered within a transformational programme framework, which will ensure that we deliver a growing Rank Group that is fit for the future.”