In Friday’s half yearly report, Rank Group reported significant earnings progression despite a challenging operating environment. Grosvenor Casinos gave a strong trading performance over the six months to 30 June 2009, and Mecca Bingo showed continued stabilisation. Group revenue was £266 million for the period, compared to £257 million in 2008 (£263 on a comparable basis illustrating the effect of the non-payment or refunding of VAT on interval bingo in 2008).

Ian Burke, chief executive of The Rank Group said: "Rank performed well during the first half of the year, achieving profitable revenue growth in a difficult economic environment and further strengthening the Group's balance sheet through debt reduction. We have set out a clear strategy for growth within the UK gaming market, expanding our portfolio of G Casinos, delivering operational improvements in Mecca Bingo and repositioning Rank Interactive to prioritise its gaming websites and meccabingo.com in particular.”

Grosvenor Casinos enjoyed a strong start to the year with 4.4% growth in revenue while operating profit increased by 17.6% to £14.7 million. This performance was driven by increases in customer visits across Rank’s portfolio and in spite of a lower than average win margin in the London casinos. Revenue in Mecca Bingo was marginally lower than in the first half of 2008 while operating profit declined by 16.3% to £19.0 million.

First half revenue from Top Rank Espana was ahead of last year as a result of the strength of the euro against Sterling (in euros, revenue declined). Operating profit declined by 34.1% to £2.7 million, due to the difficult market conditions in Spain. Revenue from Rank Interactive declined by 7.8% while operating profit of £3 million was down 14.3%. The business made a poor start to the year - due largely to the performance of the Blue Square sportsbook - but showed some improvement during the second quarter. Bingo and games sites - principally meccabingo.com - achieved strong growth in the six-month period.

Rank says the consumer outlook remains uncertain and the second half of the year will prove more difficult for the Group with profits affected by a full six months of the higher taxation rates compared with just the final two months of the first half. However, the board is confident in the prospects for the Group and is encouraged by the progress made this year in terms of enhanced customer propositions, a stronger senior management team and the Group's financial position.

Ian Burke concluded, "The first half of the year has been marked by a number of positive changes to gaming regulations, resulting from improved understanding between the bingo industry and the Department for Culture Media and Sport. However, the volatile nature of HM Treasury's fiscal policy remains the principal challenge for the Group. We are disappointed by the Government's decision to introduce a significant increase in the taxation of bingo during this year's Budget and will continue to give active support to the Bingo Association in its campaign to achieve a fair deal for Britain's licensed bingo clubs.” (E-08.03.09)

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