Group LFL Net Gaming Revenue (NGR) for the five months to 30 November 2022 was up 1% compared to the same period in the prior year, with LFL NGR growth in Mecca venues, Enracha venues and Digital offset by a decline in Grosvenor venues.
Trading in Q2 has been weaker than expected, with a weekly average NGR of £5.8m ($7m) being only marginally ahead of the levels seen in Q1.
In the first five months, Mecca customer visit numbers were up 4% on the prior year, with Q2 weekly average NGR in line with Q1. However, there has been a recent weakening in weekly average NGR due to lower visit numbers, impacted by the World Cup and colder weather, as well as the ongoing cost of living pressure on consumers.
Rank's Digital business continued to deliver good growth. Grosvenor venues have shown signs of improvement in recent weeks, but the return to growth will take longer than previously expected due to the current challenging macroeconomic backdrop.
It is expected that Enracha venues will continue to perform strongly for the remainder of FY23, with Spanish customers being less impacted by cost-of-living pressures.
Group LFL's underlying operating profit for the year ending 30 June 2023 is expected to be in the range of £10m to £20m.
John O'Reilly, Chief Executive, said: "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.
"We remain committed to our roadmap of investing in initiatives that will ensure the long-term recovery and prosperity of the group.”
Rank will announce its 2022/23 interim results on January 26, 2023.
