British bingo and casino operator Rank Group has issued a profit warning saying that operating profits will come in between £10m and £20m for the year to June, compared with £40.4m over the previous year with increases in the cost of living and a lack of disposable income the main reasons.
The operator of the Mecca and Grosvenor Casinos brands said the World Cup in Qatar, combined with unusually cold weather also played a part in a weak three months to the end of December.
Rank chief executive John O’Reilly said: “Weak consumer confidence and pressure on disposable income is resulting in a tougher-than-expected trading environment for our UK venues businesses, particularly in Grosvenor where we are seeing customers spending less per visit.
“Whilst we expect these challenges to continue to impact our recovery into the second half of the financial year, we have implemented a series of measures to deliver incremental cost savings and to drive revenues.
“We remain committed to our roadmap of investing in initiatives that will ensure the long-term recovery and prosperity of the group.