Rank sees top end earnings as casinos shine

9th Dec 2010 07:59

Casino and bingo hall operator Rank sees full-year earnings coming in at the top end of analysts' expectations of between 9.5p and 9.8p after a strong performance from Grosvenor Casinos. Across the group, like-for-like revenues in the nine weeks to 5 December were up by 3% from the same period the previous year, while total revenues climbed 4%. Grosvenor Casinos saw like-for-like sales growth of 8%, compared with flat sales at Mecca Bingo. Cold weather has lately been keeping punters away from bingo halls, but the company has been improving the quality of food and drink, helping to increase the amount they spend when they do make it through Mecca's doors.Like for like revenues at the company's Spanish bingo division Top Rank Espana were up by 2% as customer visits and spend per visit climbed, 'a highly creditable performance given the backdrop of challenging economic conditions in Spain,' according to Rank.Rank Interactive saw revenue growth of 13% as continued growth from Meccabingo.com and gcasino.com offset weakness in sports and poker. 'The outlook for 2011 remains challenging with the increase in the standard rate of VAT and public sector redundancies likely to have a negative effect on consumer sentiment in Great Britain,' the company said. 'Nevertheless, the board is confident that Rank's customer focus, its sustained investment in the quality of its assets and its operational momentum have put the Group in a strong competitive position for the year ahead.'