Rank receives Revenue Boost

10/12/2010

UK gaming operator Rank expects its 2010 earnings to be at the top end of analysts’ forecasts, having seen like-for-like revenues increase three per cent during the nine weeks to December 5.

Having recently announced the expansion of its casino portfolio with the development of several new properties, the company revealed that for the year to week 49, group revenue was up seven per cent, driven largely by the strong trading of its casinos.

Grosvenor casinos grew like-for-like revenue by eight per cent in the nine-week period, with customer visits up throughout the country. Spend per visit increased by five per cent. For the first 49 weeks of the year, the business achieved 10 per cent growth in revenue and was up seven per cent on a like-for-like basis.

Rank opened its newly refurbished Birmingham casino this week, now under the G Casino brand. With 13 G Casinos now trading and two additional conversions planned for 2011, the company said it remains on track to reach its target of 20 G Casinos by the end of 2012.

“Rank has achieved sustained revenue and earnings growth in the year to date, despite the difficult economic environment,” the company said. “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.”

By Simon Liddle – InterGaming

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