Net gaming revenue grows for Rank
Gambling group Rank saw net gaming revenue rise five per cent in the first three months of this year.
Like-for-like revenue from its digital business was up by 21 per cent offsetting a 17 per cent decline from its Mecca Bingo operation and a five per cent fall for its Grosvenor casinos.
The firm, which has Mecca Bingo’s across the Black Country and in Telford as well as a Grosvenor Casino in Walsall, said the Covid-19 pandemic was having a material impact on the group.
It is making progress on a plan to ensure that it withstands the crisis and re-emerges as a strong business. Rank is preparing for difficult trading conditions when it re-opens its venues businesses.
Across UK venues and support offices, around 7,000 out of a UK workforce of 7,600 have been furloughed. Where relevant, Rank has topped up the UK Government's Coronavirus Job Retention Scheme so that all staff in furlough will receive 80 per cent of their salary.
The executive and non-executive directors have volunteered a 20 per cent reduction in salaries and fees with effect from the start of April for as long as colleagues are in furlough.
The board does not intend to recommend a dividend be paid in October,
Assuming that all venues remain closed for the rest of the financial year to the end of June, underlying operating profit for the year is expected to be between £48 million to £58m.
Our response to the Government's call for contributions to the national effort:
Non-furloughed staff are ensuring the Rank Group uses its venues, wherever and however possible within Government guidelines, to support key workers and vulnerable people.ties.
It has launched a new charity initiative in collaboration with Blue Light Card, the discount service for the NHS, Emergency services, social care workers and Armed Forces. Rank staff are providing free meals to these key workers from some of its UK venue kitchens.
Rank is also working with a number of MPs and local councils to ensure whatever capacity it has in kitchens is maximised to provide vulnerable people, including the homeless and elderly, with hot meals, cooked in Rank venues and distributed by its teams. Staffs are also calling our regular Mecca customers to check in on their wellbeing.
Grosvenor Digital grew net gaming revenue 27 per cent in the quarter driven by continued growth in new players and strong levels of returning players.
Chief executive John O'Reilly said: "With the tremendous support we have received from HM Treasury and HMRC, together with our own mitigations, we have established a robust financial position to address and withstand an extended period of economic turmoil. Given the uncertainty we face and continued social distancing measures likely to be in place for some time to come, we continue to work to protect cash and to prepare for the re-opening of our venues in as safe a way as possible.
"I am enormously proud of our colleagues and how they have responded to the decisions we have had to take as well as their selfless response and contribution to the national effort. We know how important our venues are in many local communities and we've answered the call to contribute by stepping up to help those who need it most right now."
