15th May 2014 13:37
LONDON (Alliance News) - The Rank Group PLC said Thursday that its operating profit for the full-year to end-June will meet expectations, as it saw revenues rise 19% in the 19 weeks to May 11.
On a like-for-like basis, meaning removing costs from club openings, closed, relocations and the effect of Machine Games Duty tax, total revenues declined 4%.
The casino and bingo venue owner posted revenues of 19% for the 19 weeks, as growth in Grosvenor Casino's offset declines in its Mecca and Enracha business.
Grosvenor Casino's total revenue rose 45%, although on a like-for-like basis they rose 2%. Venues revenue was flat on a like-for-like basis, continued to be hit by the poor weather that hurt its first-half.
Digital revenue continued to grow, rising 54% during the period.
At its Mecca brand, like-for-like revenues were down 4%, slowed from declines in the first-half, as the company introduced value for money bingo sessions. This improved customer visits and revenue trends. In this business, digital revenues declined 8%, struggling with a highly competitive market.
In its Enracha brand revenue rose 1% in euros, however, in sterling it fell 3%.
In April Rank was given permission to appeal against a decision by the Court of Appeals which ruled in favour of the Homeland Revenue and Customs over overpaid VAT on certain amusement machines between 2002 and 2005. It expects the appeal to be heard in early 2015.
In March the Chancellor of the Exchequer George Osborne announced a reduction in bingo duty to 10% from 20%, which will apply from July 1. It said it is currently carrying out detailed research, site reviews, planning and licensing as part of its plans to invest in bingo clubs to take advantage of the duty reduction.
Rank will announce its full-year results August 14.
Shares in Rank were trading down 3.9% at 154.40 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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