Rank Group, the operator of Mecca Bingo, is still experiencing financial woes. The latest announcement from the company is that there will be no final dividend payment. Its problems from the previous quarter are continuing and with revenues and admissions still falling.
Rank, like other gambling establishment operators, has been hard hit by the smoking ban, the limit on high payout fruit machines and double taxation. They are now worrying about fulfilling the terms of their borrowing agreements with banks due to the fall in their revenues and have also suspended ₤30 million pounds of projects that it was undertaking. Many of these projects involved refurbishing existing facilities, including their online bingo sites, but the organization has decided to take a wait-and-see attitude for 2008.
The situation has caused a decline in the share price of Rank’s stock which has made them attractive for a takeover. Genting, the Malaysian gambling firm, has bought more than nine percent of Rank stock as has Richardsons Capital, which is a property group in the United Kingdom. Rank recently rejected a swap offer from Harrah’s.
Rank has seen a slight improvement in Mecca Bingo their land-based bingo figures and is hoping their financial situation will improve in the coming months.
