Rank warns on profits as warm summer hits bingo visitor numbers

17th Oct 2013 12:41

- Rank full-year operating profit to miss expectations- First half to be "materially below" same period last year- Underlying sales fall seven per cent in 15 weeks to October 13thRank Group warned that full year operating profits would be marginally below expectations after the hot weather in July took its toll on visitor numbers at its Mecca bingo halls and Grosvenor Casino chain. The group, majority-owned by Malaysia's Guoco Group, suffered a 7% fall in underlying revenues in the 15 weeks to October 13th and said it now expected results in the six months to the end of December to be "materially below" the same period last year.However, it said it anticipated a stronger second half as efforts to cut costs take effect and its investment in the 19 casinos it bought from Gala Coral earlier this year pays off. Its Mecca bingo brand has had a particularly weak time with customer visits down 11% in the 15 weeks to October 13. Its digital revenues were down 3% in what Rank described as an increasingly competitive digital bingo market. At its Grosvenor Casino chain, customer visits were down 6% but total revenues were up 35% thanks to the 19 casinos it bought in May. Rank said these acquired casinos had been integrated without issue.Shares in Rank were down 2.31% at 150.45p at 13:20 on Thursday.TB