Bingo operator sees profits halve
22nd November, 2007
Top Ten Holdings, the UK’s third largest bingo operator, has announced that pre-tax profits fell by more than half to £381,000 in the six months to September 30th. The company, which owns 38 clubs across Wales, the Midlands and the North-West, attributed the “unprecedented turmoil” to the smoking ban and the new gambling laws.
It warned how operations would only be “marginally profitable” if conditions remained the same throughout the second half of the year. This trend has been seen across the whole bingo industry since the introduction of the Gambling Act 2005, introduced no more than two months ago. Owner of the Mecca bingo chain, Rank, also issued a similar warning in October, saying revenues had slumped as a result.
Top Ten Holdings’ full year pre-tax profits last year hit £2.8million, but this year the figure is expected to be more like £500,000, said Investec analyst Matthew Gerard. He told that: “We are concerned trading could deteriorate further in colder weather.”
The group has called for a rethink of the “perverse” tax laws which bingo is subject to. Other operators have also been lobbying the Treasury for a chance in the rules.
