Best Bingo Offers Top 10: November 3-9, 2018

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Rank Group’s Mecca Bingo Drop by 22 percent in Revenue as the Industry Become Stricter

Rank Group, a leading gambling company in the United Kingdom, has reported a 41% decline in its profits for the financial year ended June 2018. The firm blamed stricter checks and a drop in bingo and casino customers for the drop. It has, however, vowed to put in place a turnaround plan that will see it increase its profits in the coming years.

The group registered a pre-tax drop of 41.4% to £46.7 million for the year that ended on 30th June 2018. At the same time, its revenue dropped by 2.3% to £691 million for the period.

While releasing the report, Rank Group described the previous financial year as a “challenging year.” The group blamed “a disappointing performance” that is registered in its Grosvenor Casinos business which experienced a 6.1% drop in revenues to £373 million in the accounting period.

According to the group, several factors caused the poor performance. First, it blamed the new guidelines that were published by the United Kingdom Gambling Commission in September last year. The “enhanced due diligence” requirements for the customers require that more stringent checks are done on punters. As a result, the number of casino goers has declined.

Business was also stalled by the adverse weather conditions that were experienced at the start of the year. Many casino and bingo lovers were forced to stay at home due to the weather and this in return led to a decrease in revenue for the group.

Its Mecca Bingo division registered a 7.9% decline in customer visits over the year. As a result, the division’s revenue dropped by 22.6% to £208.1 million. The operating profits for Mecca declined by 4.3%. However, Rank Group reported that the fall was smaller than expected and attributed the good performance to improved cost controls.

The group also blamed lower win margins for high rollers as a factor reducing traffic to its business. Alongside the poor operating environment, the firm made impairment charges of £26.9 million. The company termed the charges as “exceptional” and included the closure of a casino in Bradford and under performance of five other casinos.

Following the announcement, the group’s shares fell by 6.1% in the London stock exchange. Ed Monk, who is an associate director at Fidelity Personal Investing share dealing platform said that the company’s profit warning in early April coupled with the consistent rise in dividend has eased the situation.

However, the group’s digital business grew by 9% to £122.5 million. The results are indicative that punters were increasingly opting for online betting. Though there was growth in the digital platform, the company reported that there was a slowdown in the second half of the financial year. The slowdown was attributed to the new customer requirements.

John O’Reilly, an industry veteran, and the group’s chief executive said that the company is focusing on a turnaround plan after its decline in profits. “We are now moving quickly to identify key priorities which will begin to realize the significant potential that I have seen first-hand since joining the group in early May.”

He outlined the steps the group was taking by saying “We are taking steps to increase our focus on the customer, to accelerate growth in the digital business, to drive cost efficiencies across the business and to strengthen our organizational capabilities.”


Paddy Power Betfair Performs out Spectacularly this Year

Paddy Power Betfair, a leading gambling company, has announced a 7% spike in its annual revenue. This increase covers the six-month duration that commences from January 1st to June 30th. The 7% increase translates to £867 million (€966 million).

Other than the raw increase in the total revenue, there were also increases in other aspects of the income. For instance, the underlying earnings prior to the interest, depreciation, taxation, and amortization increased by 1%. The increased translated to £217 million in terms of constant currency.

According to the same interim results, the profit before tax of the gambling giant rose by 4%. It hit the £106 million mark in the same six-month period. These results coincide with the first two weeks of the 2018 FIFA World Cup. They do reflect a strong show of resilience on the part of the company as a whole.

As regards these developments, Peter Jackson, the Chief Executive Officer of Paddy Power Betfair, had these to say: “We have been busy and successful over the last couple of months here.” “In those months, we have made some meaningful strides and progress in our pursuit of the strategic priorities. Our trading in the second quarter was particularly great. All our brands and operating divisions contributed positively to our double-digit growth in revenue.”

He went on to say: “Our revenue from the online betting division grow by 13% in the second quarter.” “In Australia, our revenue rose by 19% in the same time frame notwithstanding the significant tax headwinds.”

The American branch of the group, on the other hand, experienced a 20% increase in revenue in the said duration. The company further stated that it did welcome the decision by the government of the United Kingdom to lower the stakes on the fixed odds betting terminals. It argued that the negative sentiments that were meted out to these terminals had an adverse negative impact on the performance of the company.

Going forward, the group anticipates the earnings before interest, taxation, depreciation, and amortization to lie within the range of £460 million and £480 million, prior to the impact of US sports betting.

It acknowledges this as a reflection of the trading momentum. It further expects the revenue performance to even rise after the conclusion of the 2018 FIFA World Cup. The group is however apprehensive of the upcoming additional Australian taxes.

To further solidify this success streak, the group has decided to put in place appropriate expansion measures. Its subsidiary, FanDuel, has entered into an agreement with the Boyd Gaming. This agreement is designed to bolster the co-operation of the two firms in the sports betting marketing of the United States.

These strategies have further been given a boost by a Supreme Court earlier this year that struck down a 1992 federal law that restricted the acts of sports betting. This decision has vested the leeway of regulating betting to the individual states that constitute the Union.

It waits to be seen the extent that these mergers, joint ventures, and acquisitions are going to impact the revenue inflows of the betting firm.


A Whopping £13.4 Million Annual Breakdown by Betfred Company

The yearly loss has hit the Betfred Company despite the tireless effort to increase the revenue. The loss amounts to a total of  £13.4 million.

Analysts had earlier estimated GBP 90 million and a 3% improvement annually of the player base that is growing. Despite all the expected value, the Betfred made incredible loses.

Revenues as at September 24, 2017, at the privately –held bookmaker, had risen to a total of £634.5m in twelve months. The earning also improved by 3% per year to £83.3m. The Betfred retail business achieved a 17.5% turnover for the total gambling. This amounted to a total of £12.7bn.

Regulus partners reported that revenue earned online by the Betfred company increases on a yearly basis by 3% to a total of £90 while that of Tote hiked by  £12 to £329m.

Moreover, the Betfred enjoyed a profit of £32.4 m in the last year. However, despite the great success achieved in the fiscal year, Betfred is hit by an eight-figure loss. The company, therefore, blames the reduction of the goodwill on the digital assets that were impaired, higher duties of gaming, as well as rising costs for the, losses they made.

The improvements on the revenues came through the company’s efforts to add betting shops, the Totepoool business of signing a blending deal with the Jockey Club of Hong Kong and the rise of the online customer base that is unspecified. Furthermore, the anti-gambling suspects found in the United Kingdom media reported that the founder of the Betfred Company has chosen to take £10.2m dividend per year just like the divided he took up last year.

Regulus partners who are analysts predicted some of the challenges that are to face the Betfred Company as a result of the government’s plan. They suggested that the regulation changes that are to be implemented FOBTs will significantly affect the company’s revenues.

Therefore, the media notes that the Betfred Company reported that it is going to shut down nearly 900 betting shops and also fire around 4500 employees if the government implements its plan to cut the final Fixed Odds Betting Terminal stakes (FOBTs) from £100 to £2. The proposal by the UK government is meant to solve the problem of gambling.

The managing director of Betfred Company, Mark Stebbing however, urged the government to make changes to its plan because it would lead to massive loss of the job. Moreover, that would reduce the government’s tax that is generated through the gambling taxes. Stebbing further says that the government should have evidence before taking any action. Therefore, responsible gambling will remain the priority in the industry and the government should realize that the stakes take the first position when it comes to jobs.

Regulus Analysts reported that 83% of the company’s earnings are generated at the retail operations where the FOBTs reside. If the government’s plan will be executed, the FOBTs has to exert pressure on the Betfred Company. Out of this report, the Regulus Partners suggested that

Betfred core business is most likely to undergo necessary structural changes.

Despite the underlaid plans by the government to reduce the maximum stake on the Fixed Odds Betting Terminals (FOBTs), it has announced that the stake cut will not take place until the year 2020.

Fred Done the founder of the Betfred Company, during the last year in September, he announced of a broken association with the racing industries because of the many years of continuous disagreement between the betting company and the racing industries. During the last month, Fred declared a deal with the Alizeti Capital to be the initial stage in depriving its Tote holdings.



Sky Bet Announce Partnership With IWG

Sky Bet have announced that they have teamed up with IWG to offer their full portfolio of games on their Sky Bingo site.

IWGRobert Proctor of Sky Bet has spoken of the admiration that he has had for IWG for a while. The fact that they have taken on all of the instants wins that IWG has to offer proves just how impressed Sky was. Cash Buster is one of the most popular games that IWG offer and this will be available on the Sky platform as well as a wide range of others.

The CEO of IWG Rhydian Fisher has expressed his delight at entering into a partnership with one of the leading online gambling sites. He said the partnership is proof that there is a real demand for instant win games online and that it is something that complements the games perfectly.

Games, where players are able to win immediately, have become very popular in recent years. IWG is one of the leading companies that provide these types of games. They have been growing their profile steadily since the business was started and the partnership with Sky Bet has helped to cement their reputation.

The partnership is also good news for consumers as it will increase their enjoyment of the site. It gives them access to the latest games that perform seamlessly on the site and Sky Bingo is one of the only places in the UK that you can access these games online.

This move comes after Sky Bet have announced record revenues and profits for the half year ending December 2017. They now have over 2 million customers and this is a rise of 19% compared to previous years. They attribute some of this success to the fact that they are continuing to offer new products to consumers that enhance the experience they have when they use the site. The partnership with IWG is something that is going to help them do this.

Sky Gaming have also made changes to the home screen that people see when they log into their accounts. Richard Flint, CEO of Sky Bet and Gaming has spoken of the improvements that have been made to the interface that people see when they log in. Homepages are now more personalized and give people suggestions for games that they may be interested in. This makes for a better experience for the player and is also the perfect way for IWG games to be introduced to players that may not have come across them before.