Rank Group suffers 72% Q3 revenue drop, as both retail and digital fall

0
33

Rank Group suffers 72% Q3 revenue drop, as both retail and digital fall

The Rank Group has revealed its latest financial figures in a liquidity and trading update for the quarter ending March 31, 2021 (which was Q3 in Rank’s financial year).

The operator said its net gaming revenue (NGR) was down 76% year-on-year. During the quarter, all UK venues were shut down and in Spain only nine venues remained open, and operating by the end of this third quarter.

Revenue for stores wast thereby down 98%, with digital dropping 3%, resulting in a a total NGR drop of 72%.

Digital did grow slightly sequentially in NGR, as in the third quarter Mecca Digital improved on Q2 with a 4% increase and Stride had a 7% increase in NGR.

Liquidity provided better news for the group as it ended the quarter with £89.8m ($124.8m) in total cash and available facilities, achieving its minimum liquidity covenant of £50m.

During this time, it received a £13.4m duty refund from the Supreme Court, after the court ruled in favour of another taxpayer on the treatment of free gaming chips.

Since the quarter ended, the group completed the sale of its Blankenberge Casino in Belgium and gained £25m in cash from the sale.

CEO of Rank Group, John O’Reilly, said: «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.

“We continue to make good progress on the Transformation 2.0 plans which will drive the next phase of growth for the group.»