Profits were down, but still better than expected, at Rank Group, the UK's major bingo clubs and casinos group.
Chief executive Ian Burke presented the interim results for the six months ended June 30, 2008 and made the point that when British householders were getting notification of a 35 per cent increase in their gas bills, Rank was right to be "cautious" about the prospect over the next six to 12 months.
The company’s 102 Mecca bingo clubs turned in revenues of £110m, 16.9 per cent lower than the same period of last year, with profits down 31.4 per cent to £21.6m. Turnover at Grosvenor casinos was 7.2 per cent down at £102m, with profits down 31 per cent to £14.5m. Burke made the point that this performance was an improvement on the last six months of 2007.
The results had to be taken in the light of their comparison with the pre-smoking ban period and Government legislation which had forced the group to reduce the number of jackpot machines in its operation. Overall, he said, there was a fall in attendance at casinos and in bingo clubs players were taking part in fewer games.
Group operating profits were £28.9m before exceptional items, down 38.7 per cent but ahead of predictions.
The company’s 11-club Rank Espana subsidiary grew 12 per cent through the strength of the euro against sterling, although in euros the revenue fell 2.7 per cent. It delivered an operating profit of £4.1m, 10.9 per cent lower than in the first half of 2007.
The bingo business continues to develop outside gaming areas permitting players to smoke and play interval bingo at 46 clubs. The group has also opened 298 adult gaming centres in 19 of its bingo properties and has approval to open another 15.
In June of this year, the company introduced the PlayPoints loyalty scheme using the Bally Technologies system, into its Grosvenor Casino in Birmingham and expects to extend the trial to other casinos in the group.
