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UK – Casinos up eight per cent for Rank Group

By - 24 August 2015

The Rank Group, operator of British brands Mecca Bingo and Grosvenor Casinos, has reported that its operating profit for the year ending 30 June 2015, is up 16 per cent with all brands in growth.

Group revenue up four per cent with like-for-like revenue for Grosvenor Casinos and Mecca up eight per cent and two per cent respectively.

Digital revenue was up 21 per cent and operating profit was up 14 per cent despite the introduction of Remote Gaming Duty in December 2014.

Henry Birch, Chief Executive of The Rank Group Plc said: “I am delighted to be announcing a significant improvement in our performance with a strong set of results and profit growth across all our brands. Our 16% profit growth has translated into 18 per cent adjusted EPS growth and a 24 per cent increase in our annual dividend which is reflected in a strong balance sheet and lower debt. Alongside our strong operating performance, we have made good progress on our strategic objectives that we outlined 12 months ago, and we have a clear strategy for delivering sustainable profitable growth across all our brands.

“We are particularly pleased that the strong digital growth we reported at our interims continues and we remain on track to implement a new digital platform in early 2016. Our market-leading Grosvenor Casinos business continues to deliver consistent growth with like-for-like revenue up eight per cent and operating profit up 17 per cent. Mecca has had a significantly improved year with like-for-like revenues up two per cent and operating profit up 16 per cent, driven by good digital growth, stable like-for-like revenues in our venues and lower operating costs benefiting from a reduction in bingo duty. And after several years of tough trading conditions, Enracha, our Spanish bingo business, has reported euro profits up 240 per cent.

“We firmly believe that alongside growth in digital gambling, there will continue to be sustained demand for venue-based gambling in bingo clubs and casinos which offer an experience that cannot be digitised. Moreover, we believe that consumer trends will increasingly favour companies that can offer services across digital and retail channels and successfully offer a joined-up experience to our customers.

“Trading in the short seven-week period to 16 August 2015 has continued in line with the trends seen in 2014/15 and is in line with management’s expectations. Following our strong performance in the year, the board is pleased to recommend a significant increase to the dividend, delivering strong returns to shareholders and reflecting our continued confidence for the future.”

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