Mecca owner Rank slashes estimates as punters dodge bingo halls and casinos
Mecca owner Rank issued a warning on profits this morning after the firm struggled to hit the jackpot with its pandemic recovery.
Following softer than expected trading and increased costs pressures, the company lowered trading expectations by roughly 15 per cent, estimating earnings of around £47m to £55m for the year.
It comes after the Rank revealed net gaming revenues at casinos were down 14 per cent in the last quarter compared to pre-pandemic levels.Likewise, bingo hall revenue was down 25 per cent, showing the uphill struggle for in-person gambling following lockdown.
Whilst shares were down over seven per cent this afternoon, Numis analyst Richard Stuber said this offered a buying opportunity for investors.
“Rank is the only gambling operator which could react positively to the Gambling Act Review if the government harmonises casino licences allowing more machines to be installed”, he said.