Better results for bingo and casino firm
Posted by Gavin Smith on 04 Aug 2009 at 14:08
Bingo and casino company Rank Group has surpassed expectations with first half results, suggesting it is heading for a stronger footing.
The Financial Times said the company claimed a good performance by its Grosvenor casino business and a more stable period of trade for Mecca Bingo helped revenue rise 3.5 per cent to £266 million for the first half of 2009.
Other figures showed underlying profits soared 38 per cent to reach £25.6 million, more than £5 million higher than the consensus market forecast of £20.4 million.
The company has been battling the smoking ban since 2007 and has also suffered from the recession and restrictions on high jackpot gaming machines.
The firm has been modernising its casinos and upgrading facilities in an effort to broaden its audience appeal.
According to the Times, rank group's chief executive, Ian Burke, said he was encouraged by the progress but did not declare the company had turned a corner.
Figures in the second half of the year could be hit by a hike in bingo tax. Back in April the firm warned its profits could be hit by a rise in duty on the game from 15 per cent to 22 per cent.
The Times added underlying earnings per share stood at 4.6p compared with 3p last time around.
The firm suspended dividend payments in December 2007, and has said it will resume payouts "once trading conditions improved", according to The Times.
