The Rank Group, which owns numerous gambling establishments in the UK, has suffered a sharp drop in profits at its Grosvenor Hotel and Casino locations within the capital. Even though the casino has been given the go-ahead to reopen, revenues are trailing behind last year’s numbers reaching only 40% of the expected amount.
Other casinos outside of London are at least matching 75% of the metrics prior to the lockdown. Given that the venues located in the capital usually contribute towards over half of Grosvenor’s turnover, this is not a great sign for the company.
Last week, chief executive John O’Reilly noticed a slight improvement in the number of office workers but pointed out it was vital that consumer confidence in public transport returned.
We need to get London fired up again, that’s for sureThe Rank Group, CEO – John O’Reilly
Mecca Bingo is also owned by The Rank Group and is on track to matching 70% of last year’s turnover. Although the bingo halls are relatively large and spaced out, elderly customers have been reluctant to return. Only 55% of the usual number of players have been actively visiting the establishments, many still fearing the risks of doing so.
Prior to the lockdown situation, Rank had been performing extremely well with the shares hitting a 14-year high of 326p in February but falling to a low of 85p in March when the coronavirus disruptions began. Shares are currently sitting at 124p after a slow recovery since reopening many of their gambling venues.