The Rank Group Plc today announced continued growth for the nine weeks to 5 December 2010 and Management now expects Group earnings per share for 2010 to be towards the top end of analysts’ forecasts. Rank achieved a 3% increase in like-for-like revenue during the nine-week period with total revenue up 4%. For the year to week 49, Group revenue was up 7% and like-for-like revenue ahead by 4%. This performance was driven principally by continued strong trading in Grosvenor Casinos.

The company’s casino sector grew like-for-like revenue by 8% in the nine-week period with customer visits up in both London and the provinces. Spend per visit increased by 5%. For the year to week 49, the business achieved 10% growth in revenue and was up by 7% on a like-for-like basis.

Rank comments that it has continued to invest in the enhancement and expansion of its casino estate. Today sees the relaunch of the Birmingham casino following its conversion to the successful G Casino format. With 13 G Casinos now trading and two additional conversions due in early 2011, Rank remains on track to achieve its target of 20 G Casinos by the end of 2012. In addition a small electronic casino opens in Liverpool later this month, taking Rank’s total number of casinos in Great Britain to 36.

Mecca Bingo like-for-like revenue declined by 1% in the nine-week period as the recent cold weather had a severe impact on customer visits (down 32% during the week to 5 December 2010). Improvements to the quality of food and drink in clubs contributed to a 4% increase in spend per visit, which partly offset the lower number of visits. For the year to week 49, the business achieved 3% growth in revenue, with like-for-like revenue in line with the comparative period in 2009.

Top Rank Espana achieved 5% revenue growth in the nine-week period in Sterling. In euro, the business grew revenue by 10% with operational improvements and continued enhancements to gaming machines behind a 8% increase in euro spend per visit. Customer visits in the period were up by 2%. For the year to week 49, the business achieved 2% growth in Sterling revenue and 6% growth in euro. Rank considers this a highly creditable performance given the backdrop of challenging economic conditions in Spain.

Rank Interactive achieved a 5% increase in revenue during the nine-week period as continued growth from Meccabingo.com and gcasino.com offset weakness in sportsbook and poker. For the year to week 49, the business has achieved a 13% increase in revenue.

Rank has achieved sustained revenue and earnings growth in the year to date, despite the difficult economic environment. The outlook for 2011 remains challenging with the increase in the standard rate of VAT and public sector redundancies likely to have a negative effect on consumer sentiment in Great Britain. Nevertheless, the board is confident that Rank’s customer focus, its sustained investment in the quality of its assets and its operational momentum have put the Group in a strong competitive position for the year ahead. (E-12.09.10)

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