Rank Group reports profit increase of 19 percent

Rank Group has increased its profit thanks to a rise in sales at both its land based bingo clubs and Internet gaming websites. The company that operates 58 casinos and 90 Mecca bingo clubs announced a pre-tax profit of £74.1 million by June 30, recoding a 19 percent increase compared to the previous twelve months.

The sales at its bingo clubs in Mecca went up 2 percent with total revenue of £289.6 million. The revenue increase from online bingo was offset by the shutdown of six venues that were underperforming in this period.

Furthermore, Rank Group also reported that the revenue numbers at its Grosvenor casinos increased 8 percent to £423.4 million caused by the good performance of its London outlets which also noted a £500,000 renovation of its main Gloucester Road casino.

Online sales also increased 21 percent in the same period despite the online gaming duty to virtual betting by the government which came into force by the end of last year.

Henry Birch, the chief executive at Rank Group, said that despite the growth of online gambling there will be a continued demand for land based gaming in bingo clubs and casinos that offer a gaming experience which cannot be moved online. Moreover, he added that consumer trends will favor firms that can successfully offer content and services across online and retail channels.

Rank Group also said that it plans to upgrade its online poker games and will spend £4.5 million to renovate its 18 casinos and an extra £2.1 million to upgrade its eight bingo clubs.