Gambling Firm Reveals Profits Boost

Rank Group says the good performance of its casino business has helped to drive revenue.

Rank Group, the owner of Mecca Bingo and Grosvenor Casinos, has unveiled better-than-expected financial results for the first half of 2009.

Despite challenging economic conditions, the gambling firm reported pre-tax profits of £24.7 million - up from £17.6 million last year and easily outstripping the £20.4 million forecast in a Reuters poll of analysts.

Rank attributed the results to strong performance in its casino business and the "continued stabilisation" of Mecca Bingo.

Chief executive Ian Burke commented: "Rank performed well during the first half of the year, achieving profitable revenue growth in a difficult economic environment and further strengthening the group's balance sheet through debt reduction."

However, he also warned that the government's decision to increase bingo taxation will continue to pose problems for operators in the UK gaming industry.

"The volatile nature of HM Treasury's fiscal policy remains the principal challenge for the group," Mr Burke said.

Mecca Bingo operates over 100 clubs in the UK, with approximately 900,000 people visiting the chain each year.