Rank reports boost in revenue and profit
Casino and bingo hall firm Rank Group has swung back to a profit for the past half-year as more punters returned to its venues.
The Mecca Bingo operator said it was boosted by “busy trading” through Christmas and New Year.
The group recorded a pre-tax profit of £10.4 million for the six months to December 31, bouncing back from a £109.1 million loss over the same period a year earlier.
Chief executive John O’Reilly said: “After what has been a very challenging few years for Rank due to a wide range of external macro factors, we are starting to build revenues and, with our strong operational leverage, we are improving our profitability, with the group delivering revenue and operating profit growth across all businesses.”
The company said it saw a rise in wage costs over the six month period but this was largely offset by lower energy bills.
It came as the business reported a 9% jump in like-for-like net gaming revenues, as both its casinos and bingo halls benefited from more customers.
The company, which also runs the Grosvenor chain of casinos, also said it is “well positioned” to benefit from UK regulatory reforms in the latter half of the year as it reported a positive outlook.
Last spring the Government launched its gambling white paper which included reforms to casino venues.
Rank said it hopes the reforms can be implemented from this summer.
As a result of the gambling shake-up, the group said it expects to be able to double the number of gaming machines in its Grosvenor venues, start sports betting at these venues and start using electronic payments at bingo halls and casinos.
Mr O’Reilly said: “We are well positioned to optimise the opportunities afforded by the UK Government’s planned land-based regulatory reforms which will hopefully be implemented through the passing of secondary legislation in the summer of 2024.
“These reforms cannot come soon enough in enabling us to modernise our proposition to better meet our customers’ expectations.”
