Rank Group shares tumble almost 10%
The outlook from the gambling company has sent shares down heavily today, despite it reporting an improvement in revenues.
Video Transcript
Rank Group tumbles on outlook
Let's take a look at Rank Group, the company which owns Mecca and also the Grosvenor Casinos.
It has come through with an updated report this morning, but so far as shares are concerned, they're on the way down because investors are focused in on the negativity the company is suggesting is going to dominate the outlook from where we go.
Share price chart
Let's take a look at the share price chart, because you can see clearly that since the highs that we had, the recent highs we had back in May 2021, there has been this slide in the share price and it's currently day trading down by a margin of 10.5% today, down to $0.58.
The company has painted a bleak picture for its immediate future, despite reporting what was a small rise in the net gaming revenue in the first quarter (Q1).
But this has been way overshadowed by the expectations that the company is going to continue to see the sort of pressure we've seen building pre-COVID. We had this stock all the way up at £3.28. It's now trading at $0.58 a share.
The company says it's seeing big pressures on consumer spending this year with inflation likely to remain high for some time to come, and as a result of that, business at its Grosvenor casinos and Mecca chain businesses will likely continue to be pressured throughout the foreseeable future. Certainly well into 2023 according to the statement, the company will continue to see pressure building for Rank Group, down on the trading day today so far.
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