LONDON (dpa-AFX) - Gambling and entertainment company Rank Group Plc (RNK.L) Monday said it now expects fiscal 2022 like-for-like underlying operating profit to be around 40 million pounds, lower than the previously guided range of 47 million pounds to 55 million pounds.
The revision in outlook was due to the recent performance in Grosvenor venues and continued inflationary cost pressures across the firm, subject to normal casino win margins between now and the year end.
In its trading update, the company said it had witnessed softer performance in UK venues throughout the third quarter and had entered the fourth quarter with visit numbers down across Grosvenor casinos.
Post April, there were some improvement in Grosvenor's performance, but it has been considerably weaker than expected. The weakness was mainly due to a slower than expected return of higher spending overseas customers to London casinos, continued softness in visitor numbers across the UK and a lower-than-average casino win margin in the quarter to date.
The performance of other business segments has been broadly in line with management's expectations.
Rank will announce its preliminary results for the full year on August 18.
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