Revenues at Grosvenor increased by 4% to £306.3m in the 12-month period ending in June. Similarly, sales at Mecca Bingo halls saw a 7% rise, amounting to £134.1m.
Despite these increases, both Grosvenor and Mecca have not yet returned to pre-pandemic revenue levels, with decreases of 15% and 18% respectively.
To mitigate costs, Rank closed down 16 Mecca bingo sites within the past year.
The company reports a 52% decline in underlying profits across the business, amounting to £20.3m. This decline is attributed to rising costs of energy and wages.
“In 2019, our energy bill was £13m,” said Mr. O’Reilly. “At one point this year, buying on the spot market, we were considering over £60m. We managed to reduce it to £28.3m by the end of the year, and we expect it to decrease by £9m this year.”
To tackle rising costs, Rank implemented a cost-cutting strategy that included the installation of more efficient LED lighting in its casinos, reducing trading hours at certain locations, and streamlining the food and drink options to minimize waste and boost profit margins.
“The casino business entails high fixed costs,” explained Mr. O’Reilly. “Our major expenses are people, property, energy, and taxation.”
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