Rank, the world’s largest casino and bingo company, has lost a significant amount of money.
The pandemic forced Rank to close its Grosvenor casinos and Mecca bingo halls, resulting in a loss of more than £107 million.
Rank relies on its venues for nearly all of its revenue, and it suffered as a result of the sites being closed for more than half of the year.
When restrictions were loosened due to social distancing norms, trade continued to be hampered.
Rank made a pre-tax loss of £107.3 million in the year to the end of June, compared to a profit of £13.4 million the previous year. Revenues dropped from £629.7 million to £329.6 million, practically halving.
Given the unusual circumstances and the manner the company and its employees adapted, Chief Executive John O’Reilly said he was “very happy” with the results.
Within a week of reopening on May 17, Grosvenor was profitable again. Revenues, however, are still down 19% from pre-coronavirus levels.
Despite dismal trading at its London and Scottish locations, it earns average weekly revenues of £5.7 million, with £4.4 million required to break even.
Mr. O’Reilly explained, “We are part of the late-night business, and we had curfew in Scotland.” Because of the lack of international tourists and office workers, London is 40 percent behind schedule.
“Normally, it accounts for roughly 42% of the casino’s revenue. Outside of London and Scotland, though, we were roughly on par. In fact, popular staycation destinations like Bournemouth are among our best-performing areas.”
When compared to pre-Covid periods, Mecca’s trade has dropped by 21%. It generates £2.6 million on average weekly income, slightly above the £2.4 million profit criteria.
Mecca, according to Mr. O’Reilly, is limited by Covid restrictions. “Customers were either sitting alone or with their bubble,” he explained. It had a significant impact on the social aspect of bingo. Customers have returned in droves after the limitations were lifted.”