(Reuters) – Gaming operator Rank Group Friday said its annual profit could more than halve, hurt by weakness in the UK market as the ongoing soccer world cup and colder weather kept customers away amid a cost-of-living crunch.
Rank Group, which operates its venues in the UK under the Mecca and Grosvenor Casinos brands, said its group like-for-like net gaming revenue for the five months to Nov. 30 was almost flat over last year.
While sales in its Grosvenor venue over the last few weeks has seen some improvement, the group flagged that a return to growth will take longer than previously expected due to challenging macroeconomic conditions.
“Weak consumer confidence and pressure on disposable income is resulting in a tougher than expected trading environment for our UK venues businesses, particularly in Grosvenor where we are seeing customers spending less per visit,” said Chief Executive John O’Reilly.
The company now expects to report like-for-like underlying operating profit in the range of 10 million ($12.20 million) to 20 million pounds for the year ended June 30, compared with 40.4 million pounds it reported in 2022.
($1 = 0.8197 pounds)
(Reporting by Sinchita Mitra in Bengaluru; editing by Uttaresh.V)
