Despite Revenue Declines, Rank Says It Will Remain on Target

19 December 2008

On Thursday Rank Group announced that the current financial year would remain in line with market expectations despite its like-for-like revenue declining 7 percent and total revenue down by 5 percent during the 50-week period to Dec. 14, 2008.

The gaming company said its Mecca Bingo arm saw a 5 percent increase in spend per head offsetting a 5 percent decline in admissions during the 15 weeks to Dec. 14. During that same time period, like-for-like revenue for Blue Square, Rank’s I-gaming and betting business, increased by 1 percent, which the company said was driven by growth at Mecca Bingo Online.

However, the company said its online sportsbook remained disappointing. For the first 50 weeks of the financial year, Blue Square’s revenue grew by 3 percent.

“While the outlook for the U.K. economy in 2009 is uncertain, Rank has taken a number of key actions this year to strengthen the group’s position -- stabilizing trading, reducing operating costs and exiting its final salary pension plan,” the company said in a statement.