International edition
September 24, 2020

Its CEO said that, during 2008, Rank steadied average weekly revenues

Mecca bingo owner encouraged by turnaround plan

(UK).- Bingo hall and casino operator Rank reported last week a fall in annual profits but said it ended 2008 in "significantly better shape" than it started the year. The operator of Mecca Bingo and Grosvenor Casinos posted profits of us$ 57.8 million in 2008, against us$ 65.9 million a year earlier.

C

hief executive Ian Burke said the short-term outlook was clouded by economic uncertainty, but he added that Rank’s actions in response to a period of significant up-heaval in the gaming industry had stabilized the business.

During 2008, he said Rank steadied average weekly revenues, delivered major cost savings, exited its final salary pension scheme and achieved a substantial reduction in net debt to us$ 323.2 million. Rank, which has had to cope with the impact of smoking ban and new gambling laws since 2007, reported a 4% fall in operating profits at Mecca Bingo after revenues declined 5.4% to us$ 324.8 million.

Without the benefit of successful rulings on a number of VAT claims, profits at the division declined by 25.2%. Rank said Mecca Bingo’s like-for-like revenues were 3% lower in the first eight weeks of the new year, but excluding the effect of February’s heavy snowfall the figure was level on a year earlier.

Mecca said full-year revenues from main stage bingo declined by almost us$ 9.9 million to us$ 51.8 million as a result of lower admissions and the with-drawal of its rollover game, Mecca Millionaire. Having identified food and drink as a key area for improvement, Rank said it achieved an increase in spend per visit, although lower admissions meant overall revenues were down by us$ 2.2 million to us$ 31.6 million.

At Grosvenor, operating profits were down slightly at us$ 42.1 million, despite the negative year-on-year impact of the smoking ban. On a like-for-like basis, admission to its casinos fell by 11.5% to 3.9 million, although this was offset by a 10.4% improvement in spend per visit.

What is your opinion about this article?
  • I like it
    %
    0 votos
  • I don't like it
    %
    0 votos
  • I have not thought about it
    %
    0 votos
Leave your comment
Newsletter Subscription
Subscribe to receive the latest news and updates
Enter a valid email
Complete the captcha
Thank you for registering to our newsletter.
Follow us on Facebook