Profits drop for Mecca Bingo owner
Gambling company Rank saw profits in the first half of its financial year fall amid tough trading.
The firm, which has Mecca Bingo's across the Black Country and in Telford as well as a Grosvenor Casino in Walsall, has reported a 27.6 per cent fall in its adjusted pre-tax profit to £29.1 million.
Group like-for-like revenue also fell over the period, declining 2.4 per cent to £366 million in the six months to December 31 2018.
However, the company said it was "encouraged" by the group's improved performance in the second quarter and expected full-year performance to be in line with the current consensus.
The company's digital business grew by 15.8 per cent in the period, driven by Mecca and YoBingo!.
However, the period continued to be difficult for the group's UK retail businesses as a challenging consumer backdrop weighed on revenue at its Grosvenor casino and Mecca bingo businesses.
John O'Reilly, chief executive, said: "The first half of our financial year has been a tough trading period, I am however encouraged by the group's improved performance in Q2.
"The three-year transformation programme that we outlined at our full year results in August 2018 is now well underway with nearly 300 initiatives identified and tasked.
"The programme will gain further momentum in H2 2018/19 and the management team is positive about what can be achieved.
"While there is lots to be done to deliver the revenue improvements and cost efficiencies identified, I am confident in the outlook for Rank and excited about the opportunities that exist."
