LONDON (dpa-AFX) - UK's casino operator Rank Group Plc. (RNK.L) Monday said its third-quarter total net gaming revenue or NGR grew 5 percent, while like-for-like NGR was down 4 percent.
Digital LFL NGR climbed 21 percent, while Grosvenor venues fell 5 percent, Mecca venues fell 17 percent and International venues declined 12 percent.
Looking ahead, assuming that all venues remain closed for the rest of the financial year to June 30, the company now expects underlying operating profit for the year to be between 48 million pounds to 58 million pounds after IFRS 16 or 40 million pounds to 50 million pounds before IFRS 16. As a result, the company expects to meet all its bank covenants at June 30.
The company previously expected underlying operating profit in the range of 113 million pounds to 123 million pounds, including the impact of IFRS 16.
In its trading statement on the impact of COVID-19, the company said the pandemic is having a material impact on the Group. The company is preparing for difficult trading conditions when it reopens venues businesses.
Across UK venues and support offices, about 7,000 colleagues, out of a UK workforce of 7,600, have been furloughed. The company said it has topped up the UK Government's Coronavirus Job Retention Scheme so that all colleagues in furlough will receive 80 percent of their salary.
Further, the executive and non-executive directors have volunteered a 20 percent reduction in salaries and fees with effect from April 1 for as long as colleagues are in furlough. The positive cash impact of the UK's CJRS, and similar schemes in Spain and Belgium, will be approximately 8 million pounds per month.
Regarding dividend, the company said its Board does not intend to recommend a dividend unless all creditors, directly arising from Group actions to mitigate the economic impact of COVID-19, have been resolved and it has the necessary visibility on future cashflows following the reopening of venues.
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