Slow casino recovery sees Mecca bingo owner Rank slash earnings outlook

The group said it had seen some recovery in the Grosvenor business since April – when it also cut its earnings forecast – but that it had been “considerably” weaker than expected.

Rank added that it was not seeing a significant return of high-spending overseas customers to its London casinos as tourist numbers have yet to fully bounce back.

The company had hoped that a return of tourist trade this summer would re-energise its casino recovery.

It also blamed the hit to earnings on rocketing inflation amid the cost-of-living crisis.

Rank said: “As a result of the recent performance in Grosvenor venues and continued inflationary cost pressures across the group, subject to normal casino win margins between now and the year end, we expect like-for-like underlying operating profit to be approximately £40 million for the year ending 30 June 2022.”

It had already cut its earnings forecast in April to between £47 million and £55 million, having previously guided for between £55 million and £65 million.