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Rank Group PLC on Monday lowered its annual profit guidance for a second time, as demand for its Grosvenor casinos continued to soften and inflationary cost pressures persist.
The firm's share price dropped 14% to 85.40 pence each in London on Monday morning.
In the fourth quarter ending June 30 to date, the Maidenhead, England-based gambling firm reported that performance across its Grosvenor casinos was ‘considerably weaker than expected’.
This was mostly due to ‘higher spending’ overseas customers that have been slow to return to its London casinos, as well as depressed visitor numbers across the UK, and a lower-than-average casino win margin in the quarter.
Having warned of a softer performance back in late April, the firm saw ‘some improvement’ in demand, but ultimately not enough to meet its financial expectations for the year.
Accordingly, it has dropped its guidance to £40 million for like-for-like underlying operating profit, from a range of £47 million to £55 million back in April.
This was the firm's second profit revision, with pre-April guidance at a range of £55 million to £65 million. In financial 2021, Rank Group recorded a pretax loss of £107.3 million.
‘The performance of our other business segments has been broadly in line with management's expectations,’ Rank Group noted.
It will release annual results for financial 2022 on August 18.
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