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Leisure, gaming and gambling

Rank Group looks forward to reopening UK sites after quarterly revenues crash

The Mecca Bingo and Grosvenor Casino owner expects to return to growth in the first quarter of the next financial year

Rank Group PLC (LON:RNK) said it is looking forward to reopening sites in the UK next month after reporting weak results for the third quarter.

The Mecca Bingo and Grosvenor Casino owner said it expects to return to growth in the first quarter of the next financial year while its focus remains on growing digital operations.

In the three months ended 31 March, like-for-like net gaming revenue (NGR) plummeted 76%, with Venues revenue down 98% and Digital down 3%. Total NGR plunged 72%.

During the quarter all UK venues were closed. In Spain, nine Enracha venues were open and operating by the end of the period and experiencing strong customer demand, albeit under very strict capacity restrictions.

The period ended with total cash and available facilities of £89.8mln, so the gambling firm achieved its minimum liquidity covenant of £50mln.

The group received a £13.4mln 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 £13.9mln from £17.3mln at 31 December 2020.

Since the quarter end, Rank completed the sale of its Blankenberge casino in Belgium and received the associated £25mln of proceeds, bolstering cash reserves.

It expects to make its scheduled £19.7mln term loan amortisation payment next month and based on the UK government's current timetable for venues' reopening, it should continue to meet its banking covenants.

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