This morning Rank Group reported a fall in revenue at both their casino and bingo operations. Despite this, chief executive Ian Burke described the 12 months that ended on 31 December 2008 as having been ‘a year of stabilisation’ for Rank following the gaming industry upheaval in 2007. "The Group ended 2008 in significantly better shape than it had started the year. We steadied average weekly revenues, realised significant cost savings across the Group, exited our final salary pension plan and achieved a substantial reduction in net debt.”

Operating profit last year at Mecca Bingo in 2008 was £41.8 million, down from £43.6 million in 2007. Grosvenor Casinos made an operating profit of £29.5 million in 2008, down slightly from £29.9 million the previous year. Top Rank Espana profits were also down, whilst Rank Interactive (Blue Square) profits were up by £500,000. Group operating profit fell from £68.3 million in 2007 to £60.3 million last year.

Rank attributed the lower Grosvenor Casinos result to a £1.5 million increase in gaming duty. The Spanish bingo clubs were affected by high inflation and weak consumer confidence but profits were helped by the strength of the Euro. The company states that although Rank Interactive grew revenue by 1%, principally through meccabingo.com, the performance of Blue Square sports betting was below expectations.

During 2008, Rank strengthened its financial position through a significant reduction in Group net debt and by exiting a number of long-term liabilities. Given the current economic environment, Rank's intention is to achieve a further reduction in net debt during the current year, while maintaining appropriate levels of business investment.

Ian Burke commented, "We have made improvements to our gaming and non-gaming products, raised our service levels and put in place systems to give us better understanding of customer preferences and behaviours. Since the start of 2009 we have seen positive regulatory reform for the licensed bingo clubs industry, through an increase in the maximum allocation of B3 gaming machines. Whilst we remain committed to our long term growth strategy, the near-term outlook remains clouded by economic uncertainty. We will continue to manage our businesses with this in mind, balancing the needs of our growth strategy with a flexible and prudent approach to capital investment." (E-02.26.09)

© Copyright 2009 CasinoCompendium



>>> return to archives
>>> return to frontpage