Abnormal UK Weather Affects Mecca Bingo Margins

The abnormal weather we have experienced in the UK over the past few months has hit Mecca Bingo in the margins department.

Sharecast reported that Mecca’s total continuing revenue and like-for-like (LFL) revenue in the 18 weeks to May 5th were both down by 2.0%.

Mother Nature has a mind of its own and there is nothing we can do about the weather. It is not surprising to hear the Rank Group’s margins have been affected because of adverse weather, as it has been particularly bad this spring, to a point where lots of people were not leaving their homes unless they absolutely had to.

Making a trip out to play bingo with Mecca of course is not an essential, so members going through their doors during this period was bound to be down. However, online bingo sites experienced no such issues, because weather conditions do not affect play with them in any shape or form – well unless an electricity line is brought down, but even then you could always revert to mobile bingo now.

Chairman and Chief Executive of Mecca, Ian Burke said, “Unsurprisingly, our venues were affected by the persistent freezing weather conditions during the third quarter. As a result of the temporary impacts of the abnormal weather during the winter period and a weak London win margin in the last 18 weeks, the group expects its 2012/13 results from continuing businesses (including the contribution from Gala casinos) will be marginally below last year.”

However, things are not down for Mecca on the Enracha front, as their 11 bingo clubs located in Spain have increased their LFL (like for like) sales by 1% during the 18 week period.

There has been a few changes made within the Rank Group over the past few months. First off they sealed a deal which has been going on for some time to purchase the Gala Casino chain and they offloaded Blue Square Bet to Betfair.

Shares may have gone down from 6.02% at 156p by 08:33 for the Rank Group, but this is just a small glitch in the grand scheme of things as growth in the digital arena and casinos are set to continue.