Rank Group PLC (LSE:RNK), the British gaming operator behind Mecca Bingo and Grosvenor Casinos, saw its shares tumble by nearly 10% 0n Friday after issuing a profit warning.
The company warned that its annual profit could more than halve due to the impact of the cost of living crisis and the World Cup on revenues.
Rank reported group like-for-like net gaming revenue for the five months ending November 30 2022 was nearly flat compared to the same period last year.
While sales at Grosvenor venues have seen some improvement in recent weeks, the company cautioned that a return to growth will take longer than expected due to the challenging economy.
Rank's CEO, John O'Reilly, attributed the weaker-than-expected trading environment to "weak consumer confidence and pressure on disposable income."
The company now expects to report like-for-like underlying operating profit in the range of £10mln to £20mln for the year ending June 30, significantly lower than the £40mln in profits from the previous year.
Rank shares, down 55% in the year-to-date, dropped 7.7p to 73p.