Posted 2/25/11 : Grosvenor Casinos; now the largest single business within the Group
UK-based gaming and betting company Rank Group delivered its full year 2010 results for the period ending 31 December 2010 this week.
Rank has recorded growth in customers across all its four business and results indicate that Grosvenor Casinos has become the largest single business within the Group, providing the largest contribution of revenue to group revenue and operating profit.
Revenue from bingo and games sites increased by 22.4 percent over 2009, largely due to sustained growth from meccabingo.com and casino showed an increase of 11.8 percent. However, declines of 37.9 percent were seen in poker revenue as well as sports betting where Blue Square's sports book recorded a decrease of 3.5 percent.
Financial results for the year to 31 December 2010 include:
• Group revenue of GBP 567.8 million (2009: GBP540.0 million)
• Group EBITDA before exceptional items of GBP92.3 million (2009: GBP83.9 million)
• Group operating profit after exceptional items of GBP75.4 million (2009: GBP60.8 million)
• Adjusted profit before tax of GBP55.2 million (2009: GBP48.5 million)
• Grosvenor Casinos’ revenue improved by 8.5 percent to GBP238.6 million. Operating profit increased by 16.5 percent to GBP36.0 million.
• Mecca Bingo grew revenue by 0.6 percent to GBP234.5 million but operating profit declined by 8.0 percent to GBP29.7 million, largely as a result of increases in taxation.
• Revenue of GBP37.0 million from Top Rank España was 2.2 percent higher than in 2009, despite the relative weakness of the Euro. In local currency, revenue increased by 6.2 percent as a result of rising customer visits and higher average spend per visit.
• Revenue from Rank Interactive increased by 13.6 percent to GBP57.7 million, with meccabingo.com generating the majority of the growth. An increase in marketing costs to build the groups brands online led to a slight weakening in margin but nevertheless operating profit increased by 5.3 percent to GBP7.9 million.
Ian Burke, chief executive of The Rank Group Plc said:
“The Group continued its progress in 2010, delivering strong growth in earnings through improved revenue and profit generation and a further substantial reduction in net debt. At the same time, we stepped up investment in our businesses and improved our competitive position in our key markets.
"Moving into 2011, the consumer environment remains challenging with higher sales taxes in both Great Britain and Spain; as well as the introduction of a full smoking ban in Spain. Nevertheless, the Group has started the year well with growth in like-for-like revenue and increases in customer visits in our two largest businesses, Grosvenor Casinos and Mecca Bingo."