Revenues rise at Rank Group as gamers move to online play
GAMING company Rank Group yesterday posted a four per cent revenue rise for the 18 weeks to 6 May, buoyed by its online division and casinos.
Grosvenor Casinos grew sales by eight per cent, despite its Belgian line still struggling in the wake of last summer’s smoking ban extension, as both customer visits and the amount spent per visit were stepped up in the period.
Revenues jumped by 17 per cent at Rank Interactive, even though sports betting took a seven per cent hit as Blue Square customers staked less. Games revenues grew 21 per cent, helped by a strong performance at meccabingo.com where sales were up 19 per cent.
But income in Rank’s physical Mecca Bingo halls took a one per cent hit as customers visits dropped four per cent. This was partially offset by an increased spend per visit thanks to a new food and drinks range.
The gaming company assured investors that the new machine games tax outlined in the Budget would have no material effect on Rank’s operating profit.
But the group was less bullish about the new online gaming tax, effective in 2014, which will impinge on its online arm.
The company’s trading update came amid rumours that Rank has reopened negotiations to buy Gala Casinos for £200m just six weeks after walking away from the table.
Shares rose 1.9 per cent.