Forced to close its bingo halls during Covid-19 lockdowns in the U.K., Rank Group reported a loss of £72 million (US$99.1 million) for the year ending June 30, compared to a profit of £9.4 million the prior year. Net gaming revenues declined 48 percent to £329.6 million, compared with £629.7 million, according to the BBC.
Chief Executive John O’Reilly described the year as “exceptionally challenging.” We are now well into a new financial year with our venues open and trading positively.”
Revenues in the Grosvenor casinos in the 13 weeks to August 15 were down 19 percent compared to 2019. Bingo revenues at Mecca fell 21 percent in comparison to the pre-pandemic year.
“Closures imposed in the government’s response to the pandemic amounting to 59 percent of available operating days, together with capacity constraints, reduced opening hours and other restrictions during the year, have had a material impact on the group,” O’Reilly said.
Little more than 20 percent of revenues came from online gaming. It had also been a “challenging” year for online “following the stringent application of affordability restrictions,” O’Reilly said.
Performances at Rank venues exceeded expectations and with easing of travel restrictions, the company is set for a comeback year.
In other news, Rank Group Plc promoted Eitan Boyd to group chief innovation officer. Boyd served as CEO of Stride Gaming, the multi-brand iGaming operator acquired by Rank in 2019 for £120 million (US$164.3 million).
The announcement came during an update for investors where Rank had completed the initial phase of the development of its technology platform acquired with the purchase of Stride Gaming.
Boyd will focus on developing new growth initiatives for the group—including international opportunities—and to advance the group’s use of proprietary technologies and systems. Rank is coming off a challenging year for its online business, which declined 6 percent in net revenues to £136 million.
Rank also promoted Jon Martin to managing director of Rank’s U.K. digital portfolio. Martin had been in charge of the Rank International development, a duty which will now be handled by Group CEO John O’Reilly.
