Rank's casinos drive revenue growth

8th Jan 2010 07:37

Bingo and gaming group Rank grew revenues by 3% in 2009 and sees earnings ahead of expectations thanks to expansion of its casinos business and tax changes announced in last year's Budget.In the final 12 weeks of the year, group revenue grew by 6% as both Rank Interactive and Grosvenor Casinos improved. Like-for-like revenue rose 1% for the 52 weeks to 27 December and by 2% for the 12 weeks. Mecca Bingo, which increased reported revenue but reduced operating profit, produced a 'steady' performance over the year, with like-for-like revenue in line with 2008. Grosvenor Casinos produced a 'positive' performance, with growth at its UK casinos estate boosting revenue by 7%. Like-for-like revenue rose 3% as strong growth in customer visits offset lower average spend per visit.Rank said continued growth in customer visits and the performance of the G Casino brand was behind 4% growth in like-for-like revenue for the final 12 weeks of the year.'As a result of the group's resilient trading performance, its effective cost control measures and its current low cost of financing, group adjusted earnings per share for 2009 will be significantly higher than in 2008 and will be above the upper end of analysts' forecasts,' said the firm.Consensus forecasts reveal a range of analyst estimates for 2009 adjusted earnings per share of 6.8p to 8.1p, with a mean of 7.4p.Results for the year to 31 December 2009 are due on 25 February.