The Rank Group said a decline in customers at its casinos and bingo halls has hurt quarterly sales and warned that its annual profits would be about £77m rather than the £83m forecast by analysts.
The group also said big wins by high-stakes gamblers has hurt projections. The report caused its London Exchange stock prices to fall to a to a three-year low.
The group blamed much of the profits fall on a decline in consumer spending, with its board expecting tough trading conditions to continue into 2019.
According to a report in the UK’s Guardian newspaper, sales at Rank’s Mecca bingo halls fell by 2 percent in the 13 weeks to April 1 during several European snow storms. Sales were worse at the group’s Grosvenor Casino chain, down 9 percent.
“The board is cautious about the UK consumer outlook and as a result expects venues to continue to be impacted for the remainder of the 2017-18 financial year and into 2018-19,” said Rank in a press statement.
The announcement comes as Rank’s CEO Henry Birch announced he is leaving the online retailer Shop Direct.
Rank has expanded its online operation with websites such as meccabingo.com and grosvenorcasinos.com. The group said that strategy is working with digital sales up 17 percent in the 13-week period.
Rank has also launched a high street bingo chain called Luda which includes coffee shops and bars and is aimed at younger players. Rank has opened three venues, but the results have so far been mixed, the company said.
