Although the Rank Group states that on a like-for-like basis it has seen a revenue decline of 8% for the 41-week period to 12 October 2008, the company reports that over the last six weeks it has delivered a much stronger relative performance with revenue up by 5%. Mecca Bingo suffered the biggest decline, down 12% on both revenue and admissions, but in the six weeks since the beginning of September has seen a 2% increase in revenue and an 8% increase in spend per head despite a 5% decline in admissions.

Mecca Bingo's recent performance reflects the benefits of a number of initiatives previously announced. In particular, we have gained licensing permission for 83 adult gaming centres located within Mecca Bingo properties, of which 64 are now operational. This has enabled the Group to increase the number of B3 jackpot gaming machines it operates from 406 at the start of the year to more than 660 at present.

The performance of the Spanish bingo clubs business, Top Rank Espana, continued to be affected by the difficult prevailing economic conditions in Spain. In local currency, revenue declined by 4% with admissions and spend per head each down by 2%. This was offset by the strength of the Euro against Sterling, which resulted in a 6% increase in reported revenue.

The interactive gaming business, Blue Square grew revenue by 1% during the first 41 weeks of the year. Gaming achieved 7% growth in the period, led by a strong performance from meccabingo.com. Revenue from sportsbook declined by 11%, reflecting the highly competitive nature of the sports betting market.

In Grosvenor Casinos, like-for-like revenue declined by 3% in the first 41 weeks of the year, with admissions down 14% and spend per head up by 10%. In Rank’s provincial casinos, revenue was 10% lower with admissions down 15% and spend per head up 6%. In London, revenue was up by 1%, with admissions down 9% and spend per head up by 12%.

In the six weeks since the start of September 2008, like-for-like revenue grew by 14%, with a 33% rise in spend per head off-setting a 14% decline in admissions. In the provincial casinos, revenue declined by 1% with 19% growth in spend per head offsetting a 17% decline in admissions. London casinos grew revenue by 33%, largely as a result of average win margin returning to more normal levels, with spend per head up 41% and admissions down 6%.

Rank has closed its loss-making casino in Leeds Moortown but retains the licence for future development. Later this month the company is opening its first G Casino in Scotland. Aberdeen is the location for the sixth G Casino brand in Great Britain.

Today’s statement concludes: “While the Group has continued to perform in line with expectations, we recognise that the broader economic climate remains uncertain in the near-term. We retain a positive long-term outlook on both the growth potential of the gaming industry and the prospects for our businesses within it.” (E-10.17.08)

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