Rank Group counters pace of revenue decline

Source: Stock Market Digital

Date :07/05/2008 11:48:49

Rank Group Plc, the owner of Mecca Bingo and Grosvenor Casinos, announced that the pace of revenue decline has eased since the beginning of the year.

The group’s revenue was eight percent lower than in the first seventeen weeks of 2007.

Revenue in Blue Square, the company’s interactive business, remained strongly ahead of the comparable period in 2007.

Initiatives

The effects of the smoking ban and adverse changes to gaming regulations, following the implementation of the Gambling Act 2005, resulted in lower levels of Group revenue, Rank said.

It added that the firm has experienced a ‘modest improvement’ in average weekly revenue levels compared with the final four months of 2007.

Revenue growth

Cost savings initiatives have strengthened the group’s profit performance and the objective now is to return the company to revenue growth.

Rank is focused on growing the number of visits to their businesses by rewarding loyal customers, and raising standards of service and product for all customers. In a statement, the group said, “We are conscious that the difficult consumer climate is likely to make 2008 a challenging year for the gaming sector.”

In February this year the Group opened a Mecca Bingo club at Thanet, Kent, and have reported that they are pleased with its early trading performance. The Mecca Bingo club in Swindon was closed in April, although at present no further openings or closures are scheduled.

May 07, 2008