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Bingo hall and casino group Rank announced 'strong' results in the eight months prior to the pandemic helped by growth in digital brands, while net gaming revenue and operating profit were both lower in the full year as COVID-19 caused venue closures.
In its preliminary results for the 12 months to 30 June 2020, the group's underlying operating profit declined 32% to £51.1m, reflecting the closure of nearly all its venues businesses from mid-March through to the year end, while the underlying operating loss of £25.5m in the four months to 30 June 2020 offset the underlying operating profit in the first eight months, highlighting the impact of the COVID-19 pandemic.
Group underlying net gaming revenue fell 15% in the period to £585.1m, led by venues underlying net gaming revenue which was down 22% to £439.8m, but was offset by digital underlying net gaming revenue, up 23% to £145.3m.
For the eight-month pre-COVID-19 period to 29 February 2020, like-for-like underlying net gaming revenue was up 11% and like-for-like underlying operating profit climbed 61%.
Chief executive John O'Reilly said: 'With positive momentum from the transformation programme, Rank performed very strongly during the first part of the year and into the second half. Despite continued good growth in our digital brands, with our venues closed from mid-March, the impact of the COVID-19 pandemic on the group has been significant.'
It said the board will not be proposing a final-year dividend and that the full-year dividend will be 2.8p per share reflecting the interim dividend paid on 13 March 2020.
Rank said that progress had been 'encouraging' since venues were allowed to reopen in July and August, with Grosvenor venues revenue running at 60% of the prior year's levels since reopening on 15 August, in line with its base case scenario modelling and Mecca, which has been open for longer, running at 70% of prior year, slightly ahead of its base case scenario modelling.