Rank reports improved financial performance

British gambling giant Rank Group has released its interim financial results for 2011 showing an almost four percent year-on-year increase in revenues to £589.9 million while profits before tax rose 6.5 percent when compared to 2010 to £58.8 million.

Maidenhead-based Rank is the firm behind virtual sportsbook BlueSq.com, bingo domain MeccaBingo.com and the bricks-and-mortar Grosvenor Casinos chain and revealed that earnings before interest, tax, depreciation and amortisation for the twelve-month period climbed 9.3 percent year-on-year to £100.9 million.

Rank is reportedly at an ‘advanced stage’ in talks that would see it spend up to £250 million in order to purchase the land-based casino operation of rival Gala Coral Group and disclosed an operating profit before exceptional items for 2011 of £64.1 million, which was up on £62 million in 2010, and an adjusted profit before tax boosted 6.5 percent year-on-year to £58.8 million.

Rank stated that its three UK brands had increased customer numbers, revenues and operating profits for the six and twelve months ending on December 31 with a ‘particularly strong performance from Grosvenor’s G Casinos’. It declared that its balance sheet has £25 million of net cash and an overall debt of £123.4 million while customer satisfaction scores escalated six percentage points to 51 percent across its gaming-based entertainment brands.

“During 2011 we have continued to deliver growth in earnings per share while strengthening our financial position and delivering a high quality value for money gaming experience to our customers,” said Ian Burke, Chairman for Rank.

“Our UK brands, whose reputation has been built across a portfolio of high quality venues, are increasingly complemented by improving websites and mobile applications.

“While we remain cautious on the consumer environment, the strength of the Group’s financial position along with a portfolio of well-regarded brands presents a strong platform to build on.”