Yesterday’s Interim Management Statement, covering the 14 and 40 week trading periods to 4 October 2009, issued by Rank Group Plc, revealed that Group revenue increased 2% from the comparable periods in 2008. The company stated that Grosvenor Casinos continued to perform well as a result of strong growth in customer visits and Mecca Bingo delivered a modest increase in like-for-like revenue, as growth in spend per visit offset a lower number of customer visits. At Rank’s two smallest businesses, Top Rank Espana and Rank Interactive, trading was said to have remained challenging due to the contraction in the Spanish economy and weakness in football win margins respectively.

Revenue from Mecca Bingo increased by 3% against the comparable 14-week period in 2008. This increase was due in part to the change in bingo taxation announced in the 2009 Budget, which has the effect of inflating revenue and reducing operating profit. The business’s like-for-like revenue (which excludes the effect of tax changes) grew by 1% during the period. Customer visits declined by 3% but spend per visit increased by 4%, largely as a result of the improved range and quality of the gaming machines offer.

The Group says its new concept ‘Full House’ club at Beeston in Nottingham continues to perform well and is now the largest bingo club by customer visits in its local market. In December Rank plans to re-launch its Catford club following a ‘Full House’ conversion and expects to open a further three ‘Full House’ clubs (all conversions) during the first half of 2010. The Group intends to monitor the performance of these clubs before a decision is made on the nature, scale and timing of any further roll-out.

In Grosvenor Casinos, revenue increased by 5% in the 14-week period. Customer visits were up 16% as a result of an increase in the number of active customers; whilst spend per visit declined by 9% on lower average staking levels and a contraction in win margin on table games. On a like-for-like basis, revenue increased by 1% with customer visits up 7% and spend per visit down 5%.

Rank’s provincial casinos grew revenue by 2% on a like-for-like basis, with an 8% increase in customer visits and a 5% decline in spend per visit. Revenue from the five London casinos was broadly in line with the comparable period in 2008, with 5% growth in customer visits largely offsetting a corresponding decline in spend per visit.

According to the Group, it has continued to invest in the expansion of the successful G Casino format and this month will open a new G Casino in Dundee and re-launch its Coventry casino (acquired from Isle of Capri in April 2009) under the G Casino brand. Another G Casino will open in Sheffield, through a relocation of the existing Grosvenor Casino licence. This investment programme will take the number of G Casinos to ten by the end of the year and Rank remains on course to achieve a target of 20 G Casinos by the end of 2012.

The Group says its positive trading performance reflects the success of the actions taken to improve the value and quality of the service offered to customers and thus to grow market share. In line with the plans set out at its half-year results, Rank will continue to invest with a particular focus on the growth of the G Casino brand and the further development of the ‘Full House’ concept in Mecca Bingo. Rank has continued to trade in line with management expectations and the board remains confident in the Group’s sustainable growth strategy. (E-10.09.09)

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