As consumers at its Grosvenor casinos wager less due to cost of living fears, UK gaming operator Rank Group has issued its second earnings warning this year.
Due to poor performance at its 51 Grosvenor sites around the country, Rank slashed its underlying operating profit expectation for the 12 months ending in June 2023 from over £40mn to £10mn-£20mn on Friday.
During the second quarter, weekly net gaming revenues were £5.8mn, a little increase over the first quarter. "not yet materialised, led by decreased consumer spend each visit," Rank said of expected revenue growth.
Currys, a UK-based electronics shop, issued its second profit warning of the year on Thursday, additional evidence that the slump is affecting consumer-facing firms. They didn’t open a sportsbook within the year.
There is "also a measure of negative risk to the full year out-turn," Rank warned, referring to the year-to-date performance of its 64 Mecca bingo sites. Moreover, the business noted that decreasing attendance at Mecca bingo halls might be attributed to a number of factors, including the World Cup, colder weather, and ongoing cost of living problems.
Despite this, "Spanish clients being less influenced by cost of living constraints" allowed Rank's Enracha bingo rooms in Spain to continue performing effectively.