Rank Group Reports Major Drop In Revenue

Mia Gardner | 22 Oct 2018

Rank GroupUK-based multi-channel gaming operator the Rank Group, has reported an almost 5% drop in its year-on-year revenue for the quarterly period ending October 14th. The group has urged investors and shareholders to keep in mind that the reported figures do not include the acquisition of YoBingo, which was finalised in May of this year.

Digital revenue figures climbed by 1.7% but the surge was stifled by the dismal performance of the group’s retail outlets. Rank Group Plc. owns both Grosvenor and Mecca Casinos. The two casinos saw a drop in revenue of 7.2% and 5%, respectively.

Not Enough Big Spending

The decline in retail revenue is unfortunately a consistent theme for the group, which it has blamed largely on a perceived inability to attract the business of VIP players. The company has said that it has, in the mean time, identified some cost-saving measures that will be applied to the casinos going forward.

How this relates to attracting more spend from high rollers is not clear. All indications are pointing in the direction of the group not being as focused on target-market advertising as what it should be. Logic dictates that more resources should be re-routed towards determining why wealthy customers are no longer interested in gracing its corridors, and fixing whatever ails the system.

Rank Group has instead indicated that it now waits to see how what its half-year report will look like, set to be released in January 2019, before it implements any solid plans of action. The question as to whether this will be a case of too-little-too-late, now begs.

A Difficult Year

All things considered, it has been a tremendously challenging year so far for the group. Rank has borne witness to everything from a major new appointment, a complete management re-structure, and a less-than-fortunate £500,000 fine after it had transpired that a customer had lost £1 million at the Grosvenor Casino in less than 24 hours.

The casino was found guilty of the reckless allocation of credit as well as having failed to prevent the player from having become the author of his own demise. The UK’s Gambling Regulator has issued a stern warning to casinos and operators, saying that just because a player appeared to be wealthy, did not imply that that player did not deserve measures of protection.

Sources:

www.gamblinginsider.com