(Alliance News) - Rank Group PLC on Thursday said gamblers at its casinos are spending less on each visit, while energy and other expenses continue to rise.
For the three months that ended September 30, the Berkshire, England-based firm's financial first quarter, Rank reported like-for-like net gaming revenue of GBP165.7 million, up 2.0% from GBP161.3 million a year prior.
On a channel basis, digital casinos grew net gaming revenue by 13% to GBP48.9 million, from GBP38.2 million.
Although Grosvenor venues saw visits grow in the quarter, the lower spend per visit meant that net gaming revenue fell by 5.0% to GBP75.3 million.
Net gaming revenue for Mecca bingo venues grew by 2.0% to GBP33.3 million, which Rank said was driven by a 4.0% increase in customer visits, offsetting a 2.0% decline in spend per visit.
Rank welcomed the recently announced energy bill relief scheme in the UK, following which it expects energy costs for the current financial year to be around GBP34.0 million, up from GBP23.0 million last year.
However, the company said it anticipates UK consumer spending will remain under significant pressure from inflation this year despite the energy price cap.
Looking forwards, Rank expects wage inflation, food input price increases and supply chain pressures to drive up costs.
"FY23 costs will also be higher due to the non-recurring government support of rates relief and furlough payments received in the first quarter of the prior financial year. We continue to focus on initiatives that mitigate these cost pressures as much as possible," said Rank.
Rank shares were trading 9.2% lower at 58.00 pence each in London on Thursday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
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Rank (RNK)