However, despite the profit, the overall figure fell sharply from H1 2022, which sat at £24.9m, representing an 83% drop. Something the company blamed on wage inflation and higher energy costs.
But, despite the drop in operating profit, net gaming revenue (NGR) in H1 grew 2% annually, according to the report, with digital revenue showing 9% growth – though the Grosvenor venues suffered a 5% decline.
The group also reported that it had available bank facilities of £148.4m, with a refinancing of its bank facilities planned for H2 2023.
John O’Reilly, Chief Executive of The Rank Group, said: “The recovery from the severe impact of the pandemic on our UK venues businesses, Grosvenor and Mecca, has certainly been slower than we anticipated. Since lockdown, we have faced a huge increase in energy costs, high wage inflation, the slow return of overseas visitors to London and increasing pressure on consumers’ discretionary income.
“We have also experienced a continued tightening of the regulatory environment, particularly in regard to affordability restrictions on customers. However, trading is improving as we invest in the quality of our products and properties, introduce new gaming concepts for our customers, reduce the level of intrusion in managing customer risk and reintroduce lapsed customers to the fun and excitement of our gaming experience.”
Upon the release of the H1 results, Rank’s share price dropped 1% but remained up 7% for the previous five days.
The impact of the war in Ukraine is being felt in the retail gambling industry, as it costs more to operate the physical casinos – which has dramatically impacted Rank’s performance in the previous six months.
