Operator News
UK – Only digital and Nine Spanish venues bring in revenue for Rank in Q3
By Phil - 22 April 2021
Rank Group, the operator of Grosvenor Casinos and Mecca Bingo in the UK, saw gaming revenue fall by 72 per cent in its third quarter with land-based almost completely wiped out at 98 per cent down on the three months to March 31 last year.
During the quarter all UK venues were closed. In Spain, nine Enracha venues were open and operating by the end of Q3 and experiencing strong customer demand, albeit under very strict capacity restrictions. Digital delivered sequential quarterly NGR growth on Q2, LFL up 3% and total, including Stride, up four per cent. Our focus remains on continuing to grow Digital NGR and we expect a return to year on year growth in Q1 2021/22. In Q3, Grosvenor Digital NGR was down two per cent, compared to Q2. Mecca Digital continued to improve, with Q3 NGR up four per cent on Q2. Stride NGR was up seven per cent on Q2. Yo continued to accelerate, with NGR up 10 per cent on Q2.
John O’Reilly, CEO of Rank, commented: “We have ended Q3 broadly where we expected to be and are now very focused on the reopening of our UK venues from 17 May alongside continuing to drive digital NGR growth. Our business has inevitably been heavily impacted by the pandemic but, with the strong support and dedication of our colleagues, we are now very much looking forward to reopening our casino and bingo venues, welcoming back our customers and providing the great entertainment and omni-channel service in a COVID safe environment we know they enjoy.”
The Group ended the quarter with total cash and available facilities of £89.8m, comfortably achieving its minimum liquidity covenant of £50m. During the quarter the Group received a £13.4m duty refund following the Supreme Court’s decision in favour of another taxpayer on the treatment of free gaming chips. The amount of deferred rent has reduced to £13.9m from £17.3m at 31 December 2020. Since the quarter end, the Group completed the sale of its Blankenberge casino in Belgium and received the associated £25m of cash sale proceeds, further bolstering cash reserves.
